Document:

<PAGE>

                                                                   EXHIBIT 10.17

                      RELEASE AND INDEMNIFICATION AGREEMENT

            RELEASE AND INDEMNIFICATION AGREEMENT (this "Agreement"), dated as
of June 22, 2006, by and among Lakes Entertainment, Inc. ("Lakes"), Great Lakes
Gaming of Michigan, LLC (the "Manager" and, together with Lakes, the "Lakes
Parties"), Banc of America Securities LLC ("BofA Securities"), Banc of America
Leasing & Capital, LLC ("Banc of America Leasing"), Bank of America National
Association, a national banking association ("BANA"), Fifth Third Bank, Wells
Fargo Bank Northwest, National Association, as collateral agent under the FF&E
Documents (defined below) and U.S. Bank National Association ("U.S. Bank").

                                   WITNESSETH:

            WHEREAS, the Pokagon Band of Potawatomi Indians, an Indian tribe
recognized by the Secretary of the Interior pursuant to federal law (the
"Tribe") plans to develop and operate a gaming and entertainment facility to be
known as the Four Winds Casino and Resort (the "Project"), which will be located
on Indian lands consisting of approximately 51 acres and held in trust by the
United States government for the Tribe;

            WHEREAS, the Tribe established the Pokagon Gaming Authority (the
"Authority"), a wholly owned, unincorporated instrumentality of the Tribe, to
develop and operate all gaming and related businesses of the Tribe, including
the Project;

            WHEREAS, the Manager is a subsidiary of Lakes;

            WHEREAS, pursuant to the Third Amended and Restated Development
Agreement dated as of January 25, 2006 (the "Development Agreement"), between
the Tribe and the Manager, and the Third Amended and Restated Management
Agreement dated as of January 25, 2006 (the "Management Agreement"), between the
Tribe and the Manager, in each case, as amended as of the date hereof, the Tribe
has retained the Manager to assist with the development of and to manage the
Project;

            WHEREAS, in connection with the Development Agreement and Management
Agreement, the Tribe and the Manager have entered into, among other agreements,
a First Amended and Restated Lakes Facility Note, a First Amended and Restated
Lakes Working Capital Advance Note, a First Amended and Restated Lakes Minimum
Payments Note, a Third Amended and Restated Lakes Development Note and a First
Amended and Restated Security Agreement, each dated as of January 25, 2006 (all
such agreements and instruments, whether or not specifically referred to herein,
collectively with the Development Agreement and the Management Agreement, the
"Lakes Agreements");

            WHEREAS, pursuant to a Second Amended and Restated Unlimited
Guaranty dated January 25, 2006, Lakes has guaranteed the performance of the
Manager's obligations under the Lakes Agreements;

<PAGE>

            WHEREAS, pursuant to the Assignment and Assumption Agreement dated
as of June 1, 2006, among the Authority and the Tribe, certain of the Tribe's
rights and obligations under the Lakes Agreements have been assigned to the
Authority;

            WHEREAS, the National Indian Gaming Commission has approved the
Management Agreement;

            WHEREAS, the Development Agreement and the Management Agreement
contemplate that certain costs related to the Project will be funded, in part,
through the issuance and sale of notes, equipment financing and funds loaned to
the Tribe by the Manager;

            WHEREAS, concurrently with the execution of this Agreement, (1) the
Tribe, the Authority, the guarantors party thereto, the Manager and BofA
Securities, as initial purchaser, have entered into a Purchase Agreement dated
June 15, 2006 (the "Purchase Agreement"), pursuant to which the Authority will
issue $305.0 million of 10 3/8% Senior Notes due 2014 (the "Notes"). The Notes
will be issued pursuant to an Indenture dated June 22, 2006 (the "Indenture"),
among the Authority, the guarantors party thereto and U.S. Bank, as trustee, the
proceeds of which will fund a portion of the development and construction costs
of the Project (the Purchase Agreement, the Indenture, all security and other
documents and instruments entered into pursuant thereto or in connection
therewith and any engagement letter entered into with respect thereto are
collectively referred to as the "Notes Documents") and (2) the Authority, Banc
of America Leasing and Wells Fargo Bank Northwest, National Association, as
collateral agent, have entered into a furniture and equipment financing facility
(the "FF&E Facility") pursuant to a loan agreement dated June 22, 2006 (the
"Loan Agreement"), among the Authority, the Tribe, Wells Fargo Bank Northwest,
National Association, as collateral agent and the lenders named therein (the
Loan Agreement, all security and other documents and instruments entered into
pursuant thereto or in connection therewith and instruments and a commitment
letter with respect thereto are collectively referred to as the "FF&E
Documents") for the purchase of furniture and equipment for the Project, the
proceeds of which will fund costs of $75.0 million;

            WHEREAS, certain provisions of the Notes Documents and the FF&E
Documents may be in conflict with or otherwise require performance contrary to
certain provisions of the Lakes Agreements (such conflicting provisions in the
Notes Documents and the FF&E Documents being referred to herein as the
"Conflicting Terms");

            WHEREAS, to induce BofA Securities and U.S. Bank to enter into the
Note Documents to which they are a party, in each of the capacities noted
therein, and to induce Banc of America Leasing to enter into the FF&E Documents,
the Tribe and the Authority have requested the Lakes Parties to, and the Lakes
Parties have agreed to, enter into this Agreement as follows and take the
actions set forth therein;

            NOW, THEREFORE, in consideration of the mutual covenants set forth
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

            Section 1. Release. Each of the Lakes Parties hereby generally,
irrevocably, and unconditionally acquits, remises, discharges and forever
releases BofA Securities, Banc of

                                       2
<PAGE>

America Leasing, BANA, Fifth Third Bank, U.S. Bank, Wells Fargo Bank Northwest,
National Association, any holder of Notes from time to time, any current or
future lender under the FF&E Facility (each an "FF&E lender"), any trustees,
agents, lenders, noteholders for future indebtedness incurred by the Authority,
any counsel of the foregoing, or any of its respective affiliates of any of the
foregoing, and any officer, director, partner, employee or agent of any of the
foregoing (or any of such affiliates) and any entity or person controlling
(within the meaning of Section 20(a) of the Exchange Act) any of them (including
any of their respective affiliated companies) (collectively, the "Released
Parties") of and from any and all sums of money, actions, awards, causes of
action, suits, judgments, damages, demands, debts, contracts, accounts,
agreements, liabilities, obligations, representations, rights, setoffs, torts,
wrongs, losses, expenses, claims and counterclaims of any and all kind
whatsoever, whether known or unknown, suspected or unsuspected, of every name
and nature, both in law and in equity, which each of the Lakes Parties now has,
or which each of the Lakes Parties or its respective successors or assigns
hereafter may have, against any of the Released Parties arising out of any
matters, causes, acts, conduct, claims, circumstances or events arising or
occurring as a result of (i) the Conflicting Terms existing in the Notes
Documents or the FF&E Documents, (ii) the entering into the Notes Documents and
the FF&E Documents, the terms of any of the Notes Documents and/or the FF&E
Documents or the FF&E Documents to the extent they include the Conflicting Terms
or (iii) the performance of any of the Conflicting Terms.

            Section 2. Indemnification. Each of the Lakes Parties agrees to
indemnify and hold harmless each Released Party for any loss, claim, damage,
liability or expense, as incurred, arising out of or in connection with the
entering into of this Agreement or arising or occurring as a result of (i) the
Conflicting Terms being in conflict with or otherwise requiring performance
contrary to provisions in the Lakes Agreements, (ii) the entering into the Notes
Documents and the FF&E Documents, the terms of any of the Notes Documents and/or
the FF&E Documents or the FF&E Documents to the extent they include the
Conflicting Terms or (iii) the performance of any of the Conflicting Terms or in
connection with the entering into of the Notes Documents or the FF&E Documents,
the terms of any of the Notes Documents and/or the FF&E Documents or the
performance of any of the Notes Documents or the FF&E Documents.

            Section 3. Release of Liens. In consideration for the noteholders
and BofA Securities entering into the Indenture, and for Banc of America Leasing
and BANA entering into the FF&E Documents, each of the Lakes Parties hereby
unconditionally and irrevocably releases its mortgages (the "Released
Mortgages") in the Non-Gaming Land (as defined in the Indenture). In furtherance
of the foregoing, the Lakes Parties shall execute and deliver such
satisfactions, terminations, or releases of the Released Mortgages as may be
necessary or advisable to affect, record and evidence the release or the
Released Mortgages.

            Section 4. Counterparts. This Agreement may be executed in two or
more counterparts, all of which together shall be considered a single
instrument, and this Agreement will be effective as of the date first above
written when executed by the Manager.

            Section 5. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, OTHER
THAN SECTION 5-1401 OF THE NEW YORK GENERAL

                                       3
<PAGE>

OBLIGATIONS LAW, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

            Section 6. Third Party Beneficiaries. The parties hereto acknowledge
and agree that each Released Party hereby shall be an express third-party
beneficiary of this Agreement and shall be entitled to rely upon and enforce the
provisions set forth herein.

            Section 7. Successors and Assigns. Any party to this Agreement other
than the Manager may assign any of its rights or obligations under this
Agreement. The Manager may not assign any of its rights or obligations under
this Agreement.

            Section 8. General Provisions. This Agreement constitutes the entire
agreement of the parties to this Agreement and supersedes all prior written or
oral and all contemporaneous oral agreements, understandings and negotiations
with respect to the subject matter hereof. This Agreement may not be amended or
modified unless in writing by all of the parties hereto, and no condition herein
(express or implied) may be waived unless waived in writing by each party whom
the condition is meant to benefit. The section headings herein are for the
convenience of the parties only and shall not affect the construction or
interpretation of this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       4
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first set forth above.

                                  LAKES ENTERTAINMENT, INC.

                                  By: /s/ Timothy Cope
                                      ----------------------------------
                                      Name: Timothy Cope
                                      Title: President/CFO

                                  GREAT LAKES GAMING OF MICHIGAN, LLC

                                  By: /s/ Timothy Cope
                                      ----------------------------------
                                      Name: Timothy Cope
                                      Title: President/CFO

                                  BANC OF AMERICA SECURITIES LLC

                                  By: /s/ R. Sean Snipes
                                      ----------------------------------
                                      Name:  R. Sean Snipes
                                      Title: Managing Director

                                  BANC OF AMERICA LEASING & CAPITAL, LLC

                                  By: /s/ Sonia T. Delen
                                      ----------------------------------
                                      Name:  Sonia T. Delen
                                      Title: Senior Vice President

                                  U.S. BANK NATIONAL ASSOCIATION

                                  By: /s/ Raymond S. Haverstock
                                      ----------------------------------
                                      Name:  Raymond S. Haverstock
                                      Title: Vice President

<PAGE>

                                  FIFTH THIRD BANK

                                  By: /s/ David C. Eifler
                                      --------------------------------
                                      Name: David C. Eifler
                                      Title: Vice President

                                  WELLS FARGO BANK NORTHWEST,
                                  NATIONAL ASSOCIATION

                                  By: /s/ Nancy M. Dahl
                                      --------------------------------
                                      Name:  Nancy M. Dahl
                                      Title: Vice Presidentexv10w1

 

EXHIBIT 10.1

 

LEASE AGREEMENT

Dated as of June 22, 2006

among

BTMU CAPITAL CORPORATION

as Lessor

and

LENNOX PROCUREMENT COMPANY INC.

as Lessee

 

 

 

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II LEASE OF LEASED PROPERTY
	 	 	1	 
	 
	 	 	 	 
	Section 2.1. Lease
	 	 	1	 
	Section 2.2. Term
	 	 	2	 
	Section 2.3. Basic Rent
	 	 	3	 
	Section 2.4. Additional Payment
	 	 	3	 
	Section 2.5. Supplemental Rent
	 	 	3	 
	Section 2.6. Method of Payment
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III NET LEASE; TAXES
	 	 	4	 
	 
	 	 	 	 
	Section 3.1. Net Lease; No Setoff, Etc.
	 	 	4	 
	Section 3.2. Impositions
	 	 	5	 
	Section 3.3. Costs and Expenses
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV WAIVERS
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V LIENS; EASEMENTS; PARTIAL CONVEYANCES
	 	 	6	 
	 
	 	 	 	 
	Section 5.1. Liens
	 	 	6	 
	Section 5.2. Easements; Partial Conveyances
	 	 	7	 
	 
	 	 	 	 
	ARTICLE VI MAINTENANCE AND REPAIR; ALTERATIONS, MODIFICATIONS AND ADDITIONS
	 	 	8	 
	 
	 	 	 	 
	Section 6.1. Maintenance and Repair; Compliance With Law
	 	 	8	 
	Section 6.2. Alterations
	 	 	8	 
	Section 6.3. Title to Alterations
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VII USE
	 	 	9	 
	 
	 	 	 	 
	Section 7.1. Possession and Use of the Leased Property
	 	 	9	 
	Section 7.2. Risk of Loss
	 	 	9	 
	Section 7.3. Compliance with Requirements of Law and Insurance Requirements
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VIII INSURANCE
	 	 	10	 
	 
	 	 	 	 
	Section 8.1. Maintenance of Insurance
	 	 	10	 
	Section 8.2. Insurance Coverage
	 	 	11	 
	Section 8.3. Endorsements
	 	 	11	 
	Section 8.4. Adjustment of Losses
	 	 	12	 
	Section 8.5. Application of Insurance Proceeds
	 	 	12	 
	Section 8.6. Additional Insurance
	 	 	12	 

- i -

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Section 8.7. Delivery of Insurance Certificates
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IX ASSIGNMENT AND SUBLEASING
	 	 	13	 
	 
	 	 	 	 
	ARTICLE X CASUALTY; CONDEMNATION; ENVIRONMENTAL LOSS
	 	 	13	 
	 
	 	 	 	 
	Section 10.1. Casualty or Condemnation
	 	 	13	 
	Section 10.2. Environmental Matters
	 	 	15	 
	Section 10.3. Notice of Environmental Matters
	 	 	15	 
	Section 10.4. Termination of the Lease
	 	 	15	 
	Section 10.5. Verification of Restoration and Rebuilding
	 	 	16	 
	Section 10.6. Prosecution of Awards
	 	 	16	 
	Section 10.7. Application of Certain Payments Not Relating to an Event of Taking
	 	 	17	 
	Section 10.8. Other Dispositions
	 	 	17	 
	Section 10.9. No Rent Abatement
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XI INTEREST CONVEYED TO LESSEE
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XII EVENTS OF DEFAULT
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XIII ENFORCEMENT
	 	 	19	 
	 
	 	 	 	 
	Section 13.1. Remedies
	 	 	19	 
	Section 13.2. Lessee’s Purchase Option
	 	 	21	 
	Section 13.3. Liquidated Damages
	 	 	22	 
	Section 13.4. Remedies Cumulative; No Waiver; Consents
	 	 	23	 
	 
	 	 	 	 
	ARTICLE XIV SALE, RETURN OR PURCHASE OF LEASED PROPERTY; RENEWAL
	 	 	23	 
	 
	 	 	 	 
	Section 14.1. Purchase Option
	 	 	23	 
	Section 14.2. Sale of Leased Property to Third Party; Return Option
	 	 	25	 
	Section 14.3. Signs; Showing
	 	 	25	 
	Section 14.4. End of Term Adjustment
	 	 	26	 
	Section 14.5. Purchase Procedure
	 	 	27	 
	Section 14.6. Essence of the Lease; Interpretation
	 	 	28	 
	Section 14.7. Surrender and Return
	 	 	28	 
	Section 14.8. Renewal
	 	 	29	 
	 
	 	 	 	 
	ARTICLE XV LESSEE’S EQUIPMENT
	 	 	30	 
	 
	 	 	 	 
	ARTICLE XVI RIGHT TO PERFORM FOR LESSEE
	 	 	30	 
	 
	 	 	 	 
	ARTICLE XVII MISCELLANEOUS
	 	 	31	 

- ii -

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 

	 	Section 17.1. Reports
	 	 	31	 
	 

	 	Section 17.2. Binding Effect; Successors and Assigns; Survival
	 	 	31	 
	 

	 	Section 17.3. Quiet Enjoyment
	 	 	31	 
	 

	 	Section 17.4. Notices
	 	 	31	 
	 

	 	Section 17.5. Severability
	 	 	32	 
	 

	 	Section 17.6. Amendment; Complete Agreements
	 	 	32	 
	 

	 	Section 17.7. Construction
	 	 	33	 
	 

	 	Section 17.8. Headings
	 	 	33	 
	 

	 	Section 17.9. Counterparts
	 	 	33	 
	 

	 	Section 17.10. GOVERNING LAW
	 	 	33	 
	 

	 	Section 17.11. Discharge of Lessee’s Obligations by its Affiliates
	 	 	34	 
	 

	 	Section 17.12. Liability of Lessor Limited
	 	 	34	 
	 

	 	Section 17.13. Estoppel Certificates
	 	 	34	 
	 

	 	Section 17.14. No Joint Venture
	 	 	35	 
	 

	 	Section 17.15. No Accord and Satisfaction
	 	 	35	 
	 

	 	Section 17.16. No Merger
	 	 	35	 
	 

	 	Section 17.17. Survival
	 	 	35	 
	 

	 	Section 17.18. Chattel Paper
	 	 	35	 
	 

	 	Section 17.19. Time of Essence
	 	 	35	 
	 

	 	Section 17.20. Recordation of Lease
	 	 	35	 
	 

	 	Section 17.21. Investment of Security Funds
	 	 	35	 
	 

	 	Section 17.22. Early Termination Option
	 	 	36	 

	 	 	 
	APPENDICES AND EXHIBITS
	 
	 	 
	Schedule 1

	 	Basic Rent Schedule
	Schedule 2

	 	Wire Information
	APPENDIX A

	 	Definitions and Interpretation
	EXHIBIT A

	 	Description of Land

- iii -

 

 

     THIS LEASE AGREEMENT (as from time to time amended or supplemented, this “Lease”),
dated as of June 22, 2006, is between BTMU CAPITAL CORPORATION, a Delaware corporation (together
with its successors and permitted assigns hereunder, “Lessor”), as Lessor, and LENNOX
PROCUREMENT COMPANY INC., a Delaware corporation (together with its successors and permitted
assigns hereunder, “Lessee”), as Lessee.

PRELIMINARY STATEMENT

     A. Lessee and Lessor are entering into this Lease and the Operative Documents. Pursuant to the
Operative Documents, Lessor has agreed to purchase the Land and the Improvements and Lender has
agreed to provide financing for Lessor’s acquisition of the Land and the Improvements.

     B. Lessor desires to lease the Land and the Improvements to Lessee, and Lessee desires to
lease the Land and the Improvements from Lessor.

     In consideration of the mutual agreements herein contained and other good and valuable
consideration, receipt of which is hereby acknowledged, Lessor and Lessee hereby agree as follows:

ARTICLE I

DEFINITIONS

     Unless the context otherwise requires, each capitalized term or phrase used herein and not
otherwise defined herein shall have the meaning assigned thereto in Appendix A attached
hereto for all purposes hereof and the rules of interpretation set forth in Appendix A shall apply
to this Lease.

ARTICLE II

LEASE OF LEASED PROPERTY

     Section 2.1. Lease. Lessor hereby leases to Lessee for the Basic Lease Term Lessor’s
interest in the Land and the Improvements (collectively, together with the rights set forth below,
the “Leased Property”), and Lessee hereby leases from Lessor for the Basic Lease Term
Lessor’s interest in the Leased Property. The Leased Property includes all right, title and
interest of Lessor, now owned or hereafter acquired, in and to: (1) the Land, including all
interests in the Land acquired by Lessor from the Seller; (2) any and all Improvements; (3) all
easements and other rights appurtenant to the Land or to the Improvements; and (4) (A) any land
lying within the right-of-way of any street, open or proposed, adjoining the Land, (B) any
sidewalks and alleys adjacent to the Land, and (C) any strips and gores between the Land and
abutting land. To the extent, but only to the extent, that assignable rights or interests in, to
or under the following have been or will be acquired by Lessor, Lessor also hereby grants and
assigns to Lessee for the term of this Lease the right to use and enjoy (and, in the case of
contract rights, to enforce) such rights or interests of Lessor: (a) any goods, equipment,
furnishings, furniture and other tangible personal property of whatever nature that are located on
the Land and all renewals or replacements of or substitutions for any of the foregoing; (b) the
benefits, if any, conferred upon the owner of the Land or the Improvements by the Existing Space
Leases or other Permitted

 

 

Encumbrances, subject to which Seller conveyed the Land and Improvements to Lessor, and (c)
any permits, licenses, franchises, certificates, and other rights and privileges against third
parties related to the Land or Improvements. However, the leasehold estate conveyed by this Lease
and Lessee’s rights hereunder are expressly made subject and subordinate to the terms and
conditions of this Lease, to the matters listed in Schedule B to the Title Policy (including the
Existing Space Leases) and all other Permitted Encumbrances, and to any other claims or
encumbrances not constituting Lessor Liens.

     Without limiting the foregoing, it is understood that so long as Lessee continues to be
entitled to possession of the Leased Property pursuant to this Lease, Lessee’s possession will
extend to and include not only the Improvements, but also the Land (subject only to Lessor’s
limited right of entry on and subject to the terms and conditions set forth in this Lease), and, so
long as no Lease Event of Default has occurred and is continuing, Lessee will be entitled to any
benefits conferred upon the owner of the Leased Property by the Existing Space Leases, including
the right to receive and retain rents as they become due under Existing Space Leases and to
otherwise enforce the Existing Space Leases during the Basic Lease Term.

     In furtherance thereof, Lessor hereby assigns and conveys to Lessee all of its right, title
and interests in the Existing Space Leases and Lessee hereby accepts such right, title and
interests and hereby assumes any and all obligations of the lessor/owner pursuant to the Existing
Space Leases, the parties hereto agreeing that Lessor shall not have any obligations under any
Existing Space Lease. Such enforcement may include, at the election of Lessee but subject to the
terms and conditions set forth in the Memorandum of Lease, the right to terminate any Existing
Space Lease in the event of a default by the tenant thereunder. Accordingly, it is the intent of
the parties that Lessor will not assume or retain responsibility for the condition of the Land or
the Improvements or for any obligations undertaken by the lessor/owner pursuant to the Existing
Space Leases.

     To the extent that the transaction represented by this Lease is treated as a true lease or
operating lease and not as a secured financing transaction, as more particularly described in
Section 2.4(a) of the Participation Agreement, then Lessor shall be deemed to have appointed Lessee
as its agent to perform all of the obligations of the lessor/owner pursuant to the Existing Space
Leases and to exercise all of the rights and benefits of the lessor/owner pursuant to the Existing
Space Leases, Lessee shall be deemed to have accepted such appointment and agreed to perform all
such obligations and exercise such rights and benefits and, in consideration of the foregoing, so
long as no Lease Event of Default has occurred and is continuing, Lessor shall allow Lessee to
retain all rents and other amounts and proceeds collected from time to time by Lessee from the
tenants under the Existing Space Leases as a fee for services rendered by Lessee hereunder.

     Lessee hereby covenants that (a) it shall not extend or renew the terms of any of the Existing
Space Leases and (b) any future tenancies with any of the tenants under the Existing Space Leases
shall be documented as subleases to this Lease in accordance with Article IX hereof.

     Section 2.2. Term. The term of this Lease (the “Basic Lease Term”) shall
commence on the Closing Date and shall end on the first to occur of (a) the seventh
(7th) anniversary of the

- 2 -

 

Closing Date (such date, the “Scheduled Termination Date”) and (b) the date upon which
this Lease is terminated pursuant to its terms (the first to occur of (a) and (b), the
“Termination Date”). The term of this Lease may be extended pursuant to the terms and
conditions set forth in Section 14.8.

     Section 2.3. Basic Rent. Lessee shall pay rent, in installments, payable in arrears,
on each Payment Date during the Basic Lease Term and on the Termination Date, in the amounts set
forth on Schedule 1 attached hereto (as adjusted from time to time as set forth below,
“Basic Rent”). The Basic Rent payable by Lessee hereunder is subject to adjustment on each
Calculation Date in the event that there is a change in the Guarantor’s Debt to Adjusted EBITDA
Ratio that results in a change in the applicable Pricing Level, all as set forth more particularly
in Section 2.3 of the Participation Agreement.

     Section 2.4. Additional Payment. Unless Lessor notifies Lessee in writing to the
contrary at least two (2) Business Days prior to the first Payment Date to occur after the Closing
Date, Lessee is required to pay the Additional Payment on such Payment Date.

     Section 2.5. Supplemental Rent. (a) Lessee shall pay to Lessor or to the Person
entitled thereto as expressly provided herein or in any other Operative Document any and all
Supplemental Rent as and when the same shall become due and payable and in the event of any failure
on the part of Lessee to pay any Supplemental Rent, Lessor shall have all rights, powers and
remedies provided for herein or by law or in equity or otherwise in the case of nonpayment of Basic
Rent. All Supplemental Rent to be paid pursuant to this Section 2.5 shall be payable in the type of
funds and in the manner set forth in Section 2.6.

     (b) Lessee shall pay to Lessor, as Supplemental Rent, among other things, on demand, to the
extent permitted by Applicable Laws, interest at the applicable Overdue Rate on any installment of
Basic Rent not paid when due for the period for which the same shall be overdue and on any payment
of Supplemental Rent payable to Lessor or any Indemnitee not paid when due or demanded by Lessor or
any Indemnitee for the period from the due date or the date of any such demand, as the case may be,
until the same shall be paid.

     (c) Unless expressly provided otherwise in this Lease, if Lessee fails to pay and discharge
any Supplemental Rent as and when due, Lessee shall also promptly pay and discharge any fine,
penalty, interest or cost which may be assessed or added under any agreement with a third party for
nonpayment or late payment of such Supplemental Rent, all of which shall also constitute
Supplemental Rent. The expiration or other termination of Lessee’s obligations to pay Basic Rent
under this Lease shall not limit or modify the obligations of Lessee with respect to Supplemental
Rent.

     Section 2.6. Method of Payment. Except as otherwise provided in this Lease, each
payment of Rent payable to Lessor shall be paid by wire transfer by Lessee prior to 11:00 a.m., New
York City time to the accounts identified below in immediately available funds on the scheduled
date when such payment shall be due, unless such scheduled date is not a Business Day, in which
case such payment shall be made on the next succeeding Business Day unless the result of such
extension would be to carry into another calendar month, in which case such payment shall be made
on the immediately preceding Business Day. Payments received after

- 3 -

 

11:00 a.m., New York City time on the date due shall, (i) for purposes of Article 12, be
deemed received on such day, and (ii) for purposes of Section 2.5, shall be deemed received on the
next succeeding Business Day and subject to interest at the Overdue Rate. Unless Lessee is
notified in writing otherwise by Lessor, Lessee shall pay Basic Rent to the account of Lessor set
forth on Schedule 2 attached hereto.

ARTICLE III

NET LEASE; TAXES

     Section 3.1. Net Lease; No Setoff, Etc. This Lease is a net lease and,
notwithstanding any other provision of this Lease, Lessee’s obligation to pay Rent is absolute and
unconditional. Lessee shall pay all Rent without counterclaim, setoff, deduction or defense and
without abatement, suspension, deferment, diminution or reduction. Lessee’s obligations hereunder
shall not be released, discharged or otherwise affected by: (a) any defect in the condition,
merchantability, design, quality or fitness for use of the Leased Property or any part thereof, or
the failure of the Leased Property to comply with any Applicable Law, including any inability to
occupy or use the Leased Property by reason of such non-compliance; (b) any damage to, removal,
abandonment, salvage, loss, contamination of or Release from, scrapping or destruction of or any
requisition or taking of the Leased Property or any part thereof; (c) any restriction, prevention
or curtailment of or interference with any use of the Leased Property or any part thereof including
eviction; (d) any defect in title to or rights to the Leased Property or any Lien on such title or
rights or on the Leased Property; (e) any change, waiver, extension, indulgence or other action or
omission or breach in respect of any obligation or liability of or by Lessor or Administrative
Agent; (f) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceedings relating to Lessee, Guarantor, Lessor, Administrative Agent
or any other Person, or any action taken with respect to this Lease by any trustee or receiver of
Lessee, Guarantor, Lessor, Administrative Agent or any other Person, or by any court, in any such
proceeding; (g) any claim that Lessee has or might have against any Person, including without
limitation, Lessor, any vendor, manufacturer, contractor of or for any of the Improvements or any
part thereof, or Administrative Agent; (h) any failure on the part of Lessor to perform or comply
with any of the terms of this Lease or any other Operative Document or of any other agreement; (i)
any invalidity or unenforceability or illegality or disaffirmance of this Lease against or by
Lessee or any provision hereof or any of the other Operative Documents or any provision of any
thereof whether or not related to the Transaction; (j) the impossibility or illegality of
performance by Lessee, Lessor or both; (k) any action by any court, administrative agency or other
Governmental Authority; (l) any restriction, prevention or curtailment of or interference with any
use of the Leased Property or any part thereof; or (m) any other occurrence whatsoever, whether
similar or dissimilar to the foregoing, and regardless of whether Lessee shall have notice or
knowledge of any of the foregoing. The parties intend that Lessee’s obligations under this Lease
shall be covenants and agreements that are separate and independent from any obligations of Lessor
under this Lease or under any other Operative Documents and the obligations shall continue
unaffected unless such obligations shall have been modified or terminated in accordance with an
express provision of this Lease. LESSEE HEREBY WAIVES ALL RIGHT TO TERMINATE OR SURRENDER THIS
LEASE (EXCEPT AS EXPRESSLY PROVIDED IN THIS LEASE) OR TO AVAIL ITSELF OF ANY ABATEMENT, SUSPENSION,
DEFERMENT, REDUCTION, SETOFF, COUNTERCLAIM OR DEFENSE WITH RESPECT TO ANY RENT. LESSEE SHALL
REMAIN OBLIGATED

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UNDER THIS LEASE IN ACCORDANCE WITH ITS TERMS AND LESSEE HEREBY WAIVES ANY AND ALL RIGHTS NOW
OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE TO MODIFY OR TO AVOID STRICT COMPLIANCE WITH ITS
OBLIGATIONS UNDER THIS LEASE. Lessee assumes sole responsibility for the condition, use,
operation, maintenance, and management of the Leased Property and Lessor shall have no
responsibility in respect thereof and shall have no liability for damage to the property of either
Lessee or any subtenant of Lessee on any account or for any reason whatsoever, other than solely by
reason of Lessor’s willful misconduct or gross negligence.

     Notwithstanding the foregoing Lessee does not waive any right or remedy that it may have if
Lessor breaches its obligation to convey the Leased Property to Lessee free and clear of Lessor
Liens in accordance with and subject to any conditions precedent set forth in this Lease.

     Section 3.2. Impositions. (a) During the Basic Lease Term, Lessee agrees to pay when
due without penalty or interest all Impositions imposed upon or levied against the Leased Property.
Any tax relating to a fiscal period of any taxing authority falling partially within and partially
outside the Basic Lease Term, shall be apportioned and adjusted between Lessor and Lessee. Lessee
covenants to furnish Lessor and Administrative Agent, upon Lessor’s or Administrative Agent’s
request, within forty-five (45) days after the last date when any Imposition must be paid by
Lessee, official receipts of the appropriate taxing, authority or other proof satisfactory to
Lessor and Administrative Agent, evidencing the payment thereof.

          (b) With the prior written consent of Lessor, made in its sole discretion, and Administrative
Agent, made at the direction of the Required Lenders, Lessee may defer payment of an Imposition so
long as (i) the validity or the amount thereof is contested by Lessee with diligence and in good
faith; (ii) the commencement and continuation of such proceedings shall suspend the collection
thereof from, and suspend the enforcement thereof against, Lessor, Administrative Agent and the
Leased Property, (iii) no part of the Leased Property nor any Basic Rent or Supplemental Rent shall
be in danger of being sold, forfeited, attached or lost, (iv) there shall not exist because of such
contest (x) any interference with the use and occupancy of the Leased Property or any part thereof,
or (y) any interference with the payment of Basic Rent or Supplemental Rent (other than the portion
subject to the contest), (v) Lessee shall promptly prosecute such contest to a final settlement or
conclusion, or if Lessee deems it advisable to abandon such contest, Lessee shall promptly pay or
perform the obligation which was the subject of such contest, and (vi) at no time during the
permitted contest shall there be a risk of the imposition of criminal liability on Lessor,
Administrative Agent or any Indemnitee for failure to comply therewith.

     Section 3.3. Costs and Expenses. Lessee shall pay all costs, expenses, fees and
charges incurred in connection with the ownership, use or occupancy of the Leased Property during
the Basic Lease Term. Lessee agrees to pay or cause to be paid as and when the same are due and
payable all charges for gas, water, sewer, electricity, lights, heat, power, telephone or other
communication service and all other utility services used, rendered or supplied to, upon or in
connection with the Leased Property. Lessee shall be entitled to receive any credits or refunds
with respect to any utility charge paid by Lessee in the amount of any credit or refund received by
Lessor on account of any utility charges paid by Lessee, net of the actual cost and expenses, if
any, reasonably incurred by Lessor in obtaining such credit or refund. It is the intention of
Lessee

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and Lessor that, to the extent permitted by law and except as specifically provided for in
this Lease, Lessor shall not be obligated to pay any expenses in any way related to the Leased
Property or to its use and occupancy.

ARTICLE IV

WAIVERS

     Lessee acknowledges that Lessor holds legal title to the Leased Property and that Lessee is
leasing the Leased Property “AS IS” without representation, warranty or covenants (express or
implied) by Lessor and subject to (a) the rights of any parties in possession thereof, (b) the
state of the title thereto existing at the time Lessor acquired its interest in the Leased
Property, (c) any state of facts which an accurate survey or physical inspection might show
(including the survey delivered on the Closing Date), (d) all Applicable Law, and (e) any
violations of Applicable Law which may exist upon or subsequent to the commencement of the Basic
Lease Term. LESSEE ACKNOWLEDGES THAT, ALTHOUGH LESSOR MAY OWN AND HOLD TITLE TO THE LEASED
PROPERTY, LESSOR IS NOT RESPONSIBLE FOR THE DESIGN, DEVELOPMENT, BUDGETING AND CONSTRUCTION OF THE
IMPROVEMENTS OR ANY ALTERATIONS. LESSOR HAS NOT MADE NOR SHALL LESSOR BE DEEMED TO HAVE MADE ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AND LESSOR SHALL NOT BE DEEMED TO HAVE ANY
LIABILITY WHATSOEVER, AS TO THE VALUE, MERCHANTABILITY, TITLE, HABITABILITY, CONDITION, DESIGN,
OPERATION, OR FITNESS FOR USE OF THE LEASED PROPERTY (OR ANY PART THEREOF), OR ANY OTHER
REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASED PROPERTY (OR
ANY PART THEREOF), ALL SUCH WARRANTIES BEING HEREBY DISCLAIMED. LESSOR SHALL BE LIABLE FOR ANY
LATENT, HIDDEN, OR PATENT DEFECT THEREIN OR THE FAILURE OF THE LEASED PROPERTY, OR ANY PART
THEREOF, TO COMPLY WITH ANY APPLICABLE LAW, except that Lessor hereby represents and warrants that
the Leased Property is and shall be free of Lessor Liens. As between Lessor and Lessee, Lessee has
been afforded full opportunity to inspect the Leased Property, is satisfied with the results of its
inspections of the Leased Property and is entering into this Lease solely on the basis of the
results of its own inspections and all risks incident to the matters discussed in this Article IV,
as between Lessor and Lessee, are to be borne by Lessee. The provisions of this Article IV have
been negotiated, and, except to the extent otherwise expressly stated, the foregoing provisions are
intended to be a complete exclusion and negation of any representations or warranties by Lessor,
express or implied, with respect to the Leased Property, that may arise pursuant to any law now or
hereafter in effect, or otherwise.

ARTICLE V

LIENS; EASEMENTS; PARTIAL CONVEYANCES

     Section 5.1. Liens. Except for Permitted Liens, Lessee shall not directly or
indirectly create, incur or assume, or permit to exist, any Lien on or with respect to the Leased
Property, the title thereto, or any interest therein, including any Liens which arise out of or by
reason of (i) the possession, use, occupancy, construction, repair or rebuilding of the Leased
Property, (ii) labor or materials furnished or claimed to have been furnished to Lessee, or any of
its contractors or agents, (iii) the financing of any personalty or equipment purchased or leased
by Lessee from

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third parties and not financed by Lessor and (iv) Alterations constructed by Lessee. Lessee,
at its own expense, will promptly pay, satisfy and otherwise take such actions as may be necessary
to keep the Leased Property free and clear of, and to discharge, eliminate or bond in a manner
reasonably satisfactory to Lessor and Administrative Agent, any such Lien (other than Permitted
Liens) if the same shall arise at any time. Nothing contained in this Lease shall be construed as
constituting the consent or request of Lessor, express or implied, to or for the performance by any
contractor, mechanic, laborer, materialman, supplier or vendor of any labor or services or for the
furnishing of any materials for any construction, alteration, addition, repair, restoration or
demolition of or to the Leased Property or any part thereof. NOTICE IS HEREBY GIVEN THAT NONE OF
LESSOR, THE ADMINISTRATIVE AGENT AND THE LENDERS IS OR SHALL BE LIABLE FOR ANY LABOR, SERVICES OR
MATERIALS FURNISHED OR TO BE FURNISHED TO LESSEE, OR TO ANYONE HOLDING THE LEASED PROPERTY OR ANY
PART THEREOF THROUGH OR UNDER LESSEE, AND THAT NO MECHANIC’S OR OTHER LIENS FOR ANY SUCH LABOR,
SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LESSOR, THE ADMINISTRATIVE AGENT
AND THE LENDERS IN AND TO THE LEASED PROPERTY.

     Section 5.2. Easements; Partial Conveyances. Notwithstanding Section 5.1, at the
request of Lessee, Lessor shall, from time to time during the Basic Lease Term and upon reasonable
advance written notice from Lessee, and receipt of the materials specified in the next succeeding
sentence, consent to and join in any (i) grant of easements, licenses, rights of way and other
rights in the nature of easements, including, without limitation, utility easements which in each
case facilitate Lessee’s use, development and construction of the Leased Property, (ii) release or
termination of easements, licenses, rights of way or other rights in the nature of easements which
release and terminations are for the benefit of the Land or the Improvements or any portion
thereof, (iii) dedication or transfer of portions of the Land, not improved with a building, for
road, highway or other public purposes, provided the same are for the benefit of the Land or
Improvements, (iv) execution of agreements for ingress and egress and amendments to any covenants
and restrictions affecting the Land or Improvements or any portion thereof and (v) request to any
Governmental Authority for platting or subdivision or replatting or resubdivision approval with
respect to the Land or any portion thereof or any parcel of land of which the Land or any portion
thereof forms a part or a request for any variance from zoning or other governmental requirements,
provided that:

          (a) any such action shall be at the sole cost and expense of Lessee and Lessee shall pay all
out-of-pocket costs of Lessor, Administrative Agent, and the Lenders, in connection therewith
(including, without limitation, the reasonable fees of attorneys, architects, engineers, planners,
appraisers and other professionals reasonably retained by Lessor, Administrative Agent or the
Lenders in connection with any such action);

          (b) Lessee shall have delivered to Lessor, and Administrative Agent a certificate of a
Responsible Officer of Lessee stating that

                    (1) such action will not cause the Leased Property, the Land or the Improvements or any
portion thereof to fail to comply in any respect with the provisions of the Lease or any other
Operative Documents, or in any respect with Applicable Law; and

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                    (2) such action will not materially reduce the Fair Market Value, utility or useful life of
the Leased Property, the Land or the Improvements or Lessor’s interest therein;

          (c) in the case of any release or conveyance, if Lessor or Administrative Agent, acting at the
direction of the Required Lenders, so reasonably requests, Lessee will cause to be issued and
delivered to Lessor by the Title Insurance Company endorsements to the Title Policies (to the
extent available) pursuant to which the Title Insurance Company agrees that its liability for the
payment of any loss or damage under the terms and provisions of the Title Policies will not be
affected by reason of the fact that a portion of the real property referred to in Schedule A of the
Title Policies has been released or conveyed by Lessor; and

          (d) there shall be no abatement of Rent as a result thereof.

ARTICLE VI

MAINTENANCE AND REPAIR;

ALTERATIONS, MODIFICATIONS AND ADDITIONS

     Section 6.1. Maintenance and Repair; Compliance With Law. Lessee, at its own expense,
shall at all times (a) maintain the Leased Property in good repair and condition (subject to
ordinary wear and tear), in accordance with prudent industry standards for first class office space
and, in any event, in no less a manner as other similar office facilities owned or leased by Lessee
or its Affiliates, and (b) make all repairs, replacements and renewals of the Leased Property or
any part thereof which may be required to keep the Leased Property in the condition required by the
preceding clause (a) and as may be required by Applicable Law and Insurance Requirements, Lessee
shall perform the foregoing maintenance obligations regardless of whether the Leased Property is
occupied or unoccupied. Lessee waives any right that it may now have or hereafter acquire to (i)
require Lessor to maintain, repair, replace, alter, remove or rebuild all or any part of the Leased
Property or (ii) make repairs at the expense of Lessor pursuant to any Applicable Law or other
agreements or otherwise. LESSOR SHALL NOT BE LIABLE TO LESSEE OR TO ANY CONTRACTORS,
SUBCONTRACTORS, LABORERS, MATERIALMEN, SUPPLIERS OR VENDORS FOR SERVICES PERFORMED OR MATERIAL
PROVIDED ON OR IN CONNECTION WITH THE LEASED PROPERTY OR ANY PART THEREOF. Lessor shall not be
required to maintain, alter, repair, rebuild or replace the Leased Property in any way.

     Section 6.2. Alterations. During the Basic Lease Term, Lessee, at Lessee’s own cost
and expense, shall make all alterations, renovations, improvements, fixtures, modifications and
additions to the Leased Property or any part thereof (collectively, “Alterations”) that are
(i) necessary to repair or maintain the Leased Property in the condition required by Section 6.1
and Article VII; (ii) necessary in order for the Leased Property to be in compliance with
Applicable Laws and Insurance Requirements in all material respects; and (iii) necessary or
advisable to restore the Leased Property to its condition existing prior to a Casualty or
Condemnation to the extent required or permitted pursuant to Article 10 (collectively, the
“Required Alterations”). So long as no Lease Event of Default exists, Lessee, at its sole
discretion and at its cost and expense, may make other Alterations to the Leased Property so long
as such Alterations comply with

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Applicable Laws in all material respects and with the following requirements (collectively,
the “Permitted Alterations”):

          (a) no Alteration may materially impair the Fair Market Value, utility, or useful life of the
Leased Property from that which existed immediately prior to such Alteration;

          (b) each Alteration shall be made in a good and workmanlike manner;

          (c) Lessee shall comply with all Applicable Laws (including all Environmental Laws) and
Insurance Requirements applicable to each Alteration;

          (d) Lessee shall pay all costs and expenses and shall discharge (or cause to be insured or
bonded over) any Liens arising with respect to each Alteration within 45 days after the same shall
be filed (or otherwise become effective);

          (e) Lessee may not make any Alterations that would be in violation, in any material respect,
of the terms of any restriction, easement, condition, covenant or other similar matter affecting
title to or binding on the Leased Property unless Lessee has obtained, to the extent required from
time to time, all material permits, consents and authorizations relating to such Alterations from
the applicable Governmental Authorities or third Persons (Lessor, at Lessee’s expense, shall join
in the application for any such permit or authorization and execute and deliver any document in
connection therewith, whenever such joinder is necessary or advisable); and

          (f) all Alterations shall be located exclusively on the Land unless Lessee (or Lessor) has
obtained access rights reasonably satisfactory to Administrative Agent.

     Section 6.3. Title to Alterations. All Alterations shall be subject to this Lease and
title to all Alterations shall immediately vest in Lessor; provided that Alterations are not
subject to this Lease if (a) such Alterations are not Required Alterations, (b) such Alterations
were not paid for with insurance proceeds, and (c) such Alterations are readily removable without
impairing the Fair Market Value, utility, or remaining useful life of the Leased Property.

ARTICLE VII

USE

     Section 7.1. Possession and Use of the Leased Property. The Leased Property shall be
used as a corporate office complex in a manner consistent with the standards applicable to
properties of a similar nature in the geographic area in which the Leased Property is located and
in any event not less than the standards applied by Lessee for other comparable properties owned or
leased by Lessee or its Affiliates. Lessee may not use the Leased Property or any part thereof for
any purpose or in any manner that would materially adversely affect the Fair Market Value, utility,
remaining useful life, or residual value of the Leased Property, ordinary wear and tear excepted,
or that would violate or conflict with Applicable Law or Insurance Requirements. Lessee shall not
commit or permit any waste of the Leased Property or any part thereof.

     Section 7.2. Risk of Loss. Lessee assumes the risk of loss of, or a decrease in the
enjoyment and beneficial use of, the Leased Property as a result of the damage or destruction by

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fire, the elements, casualties, thefts, riots, wars or otherwise, and Lessor does not assume,
and shall have no liability in respect of, such risk.

     Section 7.3. Compliance with Requirements of Law and Insurance Requirements. Subject
to the terms of this Lease relating to permitted contests, Lessee, at its sole cost and expense,
shall (a) comply in all material respects with all Applicable Laws (including all Environmental
Laws) and Insurance Requirements relating to the Leased Property, including the use, construction,
operation, maintenance, repair and restoration thereof whether or not compliance therewith shall
require structural or extraordinary changes in the Leased Property or interfere with the use and
enjoyment of the Leased Property, and (b) procure, maintain and comply with all material licenses,
permits, orders, approvals, consents and other authorizations required for the construction, use,
maintenance, repair, restoration and operation of the Leased Property, in each case, except for any
such failure to maintain or procure or comply with any of the foregoing that would not reasonably
be expected to result in a Material Adverse Effect.

ARTICLE VIII

INSURANCE

     Section 8.1. Maintenance of Insurance. Lessee shall maintain insurance as set forth
below:

          (a) Commercial Liability Insurance. Lessee shall procure and carry or cause to be
procured and carried, at Lessee’s sole cost and expense, commercial general liability insurance
(including contractual liability (specifically covering this Lease), cross liability, legal
liability, and premises operations) for damages arising during the Basic Lease Term from the acts
or omissions of Lessee while located on, in possession of, or controlling or acting or failing to
act with respect to the Land or any of the Leased Property. The terms and amounts of such
liability insurance shall be consistent with normal industry practice, but in any event not less
than the scope and amount of coverage as are ordinarily procured by Guarantor with respect to
properties similar to the Leased Property; provided, however, that such coverage
shall be in an amount of at least $25,000,000 per occurrence limit and aggregate limit, as
applicable. In the event that Lessee does not maintain an occurrence basis policy for the
foregoing risks, Lessee shall provide thirty (30) days’ prior written notice thereof to the insured
thereon and shall maintain such insurance on a claims made basis and Lessee shall maintain
insurance for a period of three (3) years following the expiration of the Basic Lease Term. The
insurance coverage required pursuant to this clause (a) may be provided through a combination of
primary, umbrella and excess liability policies.

          (b) All-Risk Property Insurance. During the Basic Lease Term, Lessee shall maintain,
at its sole cost and expense, as a part of its blanket policies or otherwise, an all-risk property
policy or policies with respect to the Improvements insuring the lessor’s interest in the
Improvements including resulting damage from collapse, coverage for fire, flood, wind damage and
earthquakes and coverage against damage or loss caused by machinery accidents and operational and
performance testing and start-up and terrorism (if such coverage may be obtained at commercially
reasonable rates), with extended coverage in an amount not less than the full replacement cost of
the Improvements, including any costs that may be required to cause the Improvements to be restored
in accordance with then current Applicable Laws. Such

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coverage shall provide coverage for insuring the buildings, non-temporary structures,
machinery, equipment, facilities, fixtures, supplies and other property constituting part of the
Leased Property, including but not limited to boiler and machinery insurance covering pressure
vessels, air tanks, boilers, machinery, pressure piping, heating, ventilation and air conditioning
equipment, and elevator and escalator equipment.

          (c) Builders’ Risk Insurance. During any construction of any significant Alteration,
if required in order to prevent a loss of property insurance coverage for the Improvements, Lessee
shall arrange to obtain and keep in force builder’s risk insurance with respect to the construction
of the Alteration in an amount equal to the greater of the replacement value of such Alterations or
Improvements, as applicable, and the aggregate cost for the construction or remodeling of same,
including costs that may be required to cause the Leased Property to be reconstructed to then
current Applicable Laws.

          (d) Other Insurance. Such other insurance, in each case, as is generally carried by
Lessee or by Guarantor or any of its Subsidiaries for similar properties owned or leased by any of
them or by other owners of similar properties in such amounts and against such risks as are then
customary for properties similar in use and to the extent reasonably required by Lessor or
Administrative Agent and, to the extent required by Applicable Laws, flood insurance.

     Section 8.2. Insurance Coverage. The insurance required to be maintained by Lessee
under Section 8.1 may be subject to such deductible amounts or periods, as applicable as is
consistent with Guarantor’s practice for other properties similar to the Leased Property owned or
leased by Guarantor, and may be carried under blanket policies maintained by or on behalf of Lessee
so long as such policies otherwise comply with the provisions of this Section 8. All insurance
required to be carried pursuant to the requirements of this Article VIII shall be written by
reputable insurance companies, authorized to do business in the jurisdiction in which the Leased
Property is located, that are financially sound and solvent and otherwise reasonably appropriate
considering the amount and type of insurance being provided by such companies. Any insurance
company selected by Lessee which is rated in Best’s Insurance Guide or any successor thereto (or if
there be none, an organization having a similar national reputation) shall have a general
policyholder rating of “A-” or better and a financial rating of at least “IX” or stronger or, if
not rated in Best’s Insurance Guide, an S&P rating of “A-” or better on its claims paying ability,
or be otherwise reasonably acceptable to Lessor and the Required Lenders.

     Section 8.3. Endorsements. All insurance required to be carried or arranged for by
Lessee pursuant to the requirements of Section 8.1 shall provide in the policy or by special
endorsement that:

          (a) in the case of insurance required by Section 8.1(a), Lessor, Administrative Agent, and the
Lenders are included as additional insureds as their interest may appear;

          (b) in the case of insurance required by Section 8.1(b) and 8.1(c) Administrative Agent is
named as the sole loss payee with respect to the real property improvements only and such insurance
shall include a standard form mortgagee endorsement in favor of Lessor and Administrative Agent and
replacement cost endorsements;

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          (c) the insurer thereunder waives all rights of subrogation against Lessor, Administrative
Agent and the Lenders and any affiliates and waives any right of set-off and counterclaim and any
other right to deduction whether by attachment or otherwise;

          (d) such insurance shall be primary, shall include coverage for costs of defense of claims,
and shall apply to any loss or claim before any contribution of any other insurance carried by or
on behalf of Lessor, Administrative Agent or the Lenders;

          (e) if the insurers cancel such insurance for any reason whatsoever (other than failure to pay
premiums) or any adverse change is made in policy terms or conditions, such cancellation or change
shall not be effective as to any additional insured or loss payee for thirty (30) days after
receipt by Lessor and Administrative Agent of written notice from such insurers of such
cancellation or change, provided that such cancellation or change shall not be effective as to any
additional insured or loss payee for ten (10) days after receipt by Lessor and Administrative Agent
of such written notice from such insurers; and if such insurance is allowed to lapse for nonpayment
of premium, such lapse shall not be effective as to any additional insured for ten (10) days after
receipt by the additional insureds of written notice from such insurers of such lapse; and

          (f) with respect to all liability insurance, in as much as the policies are written to cover
more than one insured, all terms, conditions, insuring agreements and endorsements, with the
exception of the limits of liability, shall operate in the same manner as if there were a separate
policy covering each insured, and such insurance shall be endorsed to provide a severability of
interest or cross liability clause.

     Section 8.4. Adjustment of Losses. Claims under insurance policies required to be
carried under Section 8.1(a) shall be adjusted with the insurance companies by Lessee, at Lessee’s
sole cost and expense. Notwithstanding the foregoing, Lessor and Administrative Agent may
participate in any such proceeding, action, negotiation, prosecution or adjustment at Lessor or
Administrative Agent’s sole cost and expense, unless (x) Lessor or Administrative Agent, as
applicable, has been named in such claim or demand, in which case participation shall be at
Lessee’s sole cost and expense or (y) Lessor or Administrative Agent would be entitled to be
indemnified as a result of such claim in which case Lessor’s or Administrative Agent’s
participation in proceedings, actions, negotiations, prosecutions or adjustments relating thereto
and costs incurred thereby shall be subject to Section 7 of the Participation Agreement. Losses,
if any, under any policies required to be carried under Section 8.1(b) or 8.1(c) shall be adjusted
with the insurance companies, including the filing of appropriate proceedings.

     Section 8.5. Application of Insurance Proceeds. All proceeds of insurance shall be
applied in accordance with Section 3.2 of the Credit Agreement.

     Section 8.6. Additional Insurance. Any additional insurance obtained by Lessee,
Lessor or Administrative Agent shall provide that it shall not limit the insurance described in
Section 8.1, or increase the amount of any premium payable with respect to any such insurance. The
proceeds of any additional insurance will be for the account of the party maintaining such
additional insurance.

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     Section 8.7. Delivery of Insurance Certificates. On or before the Closing Date,
Lessee shall deliver to Administrative Agent certificates of insurance reasonably satisfactory to
Administrative Agent evidencing the existence of all insurance required to be maintained hereunder
and setting out the respective coverages, limits of liability, carrier, policy number and period of
coverage. Thereafter, throughout the Basic Lease Term, at the time each of Lessee’s insurance
policies is renewed (but in no event less frequently than once each year) or upon written request
by Lessor following a Lease Event of Default, Lessee shall deliver to Administrative Agent
certificates of insurance evidencing that all insurance required by Section 8.1 to be maintained by
Lessee is in effect.

ARTICLE IX

ASSIGNMENT AND SUBLEASING

     Lessee may not assign this Lease except that Lessee may assign this Lease to a Person that is
wholly owned, directly or indirectly, by Guarantor if (i) no Lease Event of Default shall have
occurred or be continuing, (ii) Lessee shall cause such assignee to execute and deliver such
instruments as may be reasonably requested by Lessor to evidence such assignment and such
assignee’s agreement to be bound by the terms of the Lease and the other Operative Documents, and
(iii) Lessee shall cause Guarantor to execute and deliver its written reaffirmation of the Guaranty
and such other instruments as may be reasonably requested by Lessor to evidence Guarantor’s
continuing liability under the Guaranty with respect to the Leased Property and Lease thereof.
Lessee may sublease all or any portion of the Leased Property, provided that (a) no Lease
Event of Default shall have occurred or be continuing; (b) Lessee shall remain primarily liable for
all obligations hereunder and under the other Operative Documents and all obligations of Lessee
shall continue in full effect as obligations of a principal and not of a guarantor or surety, as
though no sublease had been made; (c) such sublease shall be expressly subject and subordinate to
this Lease; (d) each such sublease shall terminate by its terms on or before the Scheduled
Termination Date; (e) Lessee shall cause any such sublessee to execute and deliver such instruments
as may be reasonably requested by Lessor to evidence such sublease arrangement; (f) the Guaranty
shall remain in full force and effect as though no sublease had been made; and (g) the terms of
each such sublease shall be negotiated in good faith by Lessee on an arm’s length basis.

     This Lease shall not be mortgaged or pledged by Lessee, nor shall Lessee mortgage or pledge
any interest in the Leased Property or any portion thereof. Any such mortgage or pledge shall be
void.

ARTICLE X

CASUALTY; CONDEMNATION; ENVIRONMENTAL LOSS

     Section 10.1. Casualty or Condemnation.

          (a) If a Casualty or Condemnation occurs, or Lessee receives notice of a Condemnation, Lessee
shall give prompt written notice thereof to Lessor and Administrative Agent. In no event shall a
Casualty or Condemnation affect Lessee’s obligations to pay Rent, to perform its obligations under
this Lease or the other Operative Documents, or to pay any amounts due on the Scheduled Termination
Date or otherwise pursuant to this Lease.

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          (b) If a Significant Casualty or a Significant Condemnation occurs and Lessee elects to
terminate this Lease under Section 10.4, then the procedures of Section 10.4 shall apply.

          (c) If (i) a Casualty or Condemnation occurs, other than a Significant Casualty or Significant
Condemnation, or (ii) a Significant Casualty or a Significant Condemnation occurs and Lessee does
not elect to terminate this Lease in accordance with Section 10.4, then

     (A) as soon as practicable after such occurrence, Lessee shall repair, restore, or
modify the Leased Property (or cause the Leased Property to be repaired, restored, or
modified) to the condition required to be maintained under this Lease so that the Fair
Market Value and functional capability of such property is restored and is in all material
respects at least equivalent to the Fair Market Value and functional capability of such item
as in effect immediately prior to such occurrence;

     (B) any insurance proceeds relating to such Casualty shall be paid to Lessee for the
repair, restoration, or modification of the Leased Property affected by such Casualty, in
accordance with clause (A) above, with any excess of such award or compensation being paid
to Lessee so long as no Lease Default or Lease Event of Default shall have occurred and be
continuing (and otherwise shall be applied in accordance with Section 3.2(d) of the Credit
Agreement), provided that if any Lease Event of Default exists at the time the insurance
proceeds are payable, such insurance proceeds shall be paid directly to Administrative Agent
(or if previously received by Lessee, shall be held in trust for Administrative Agent) and
shall at the option of Administrative Agent be (1) paid to Lessee for the repair,
restoration, or modification of the Leased Property or (2) applied to the Lease Balance; and

     (C) if the Leased Property has been damaged as result of such Condemnation, any award
or compensation relating to such Condemnation shall be paid to Lessee only to the extent
necessary to repair, restore, or modify the damage caused by such Condemnation in accordance
with clause (A) above, with any excess of such award or compensation being paid to Lessee so
long as no Lease Default or Lease Event of Default shall have occurred and be continuing
(and otherwise shall be applied in accordance with Section 3.2(d) of the Credit Agreement),
provided that if any Lease Event of Default exists at the time such award or compensation is
payable, such award or compensation shall be paid directly to Administrative Agent (or if
previously received by Lessee, shall be held in trust for Administrative Agent) and shall,
at the option of Administrative Agent, be (1) applied to repair, restore, or modify the
damage caused by such Condemnation in accordance with clause (A) above, or (2) applied to
the Lease Balance in accordance with Section 3.2(d) of the Credit Agreement.

          (d) If a Casualty or Condemnation occurs during the Basic Lease Term and it is determined by
the independent architect for such project (notice of which such architect shall promptly provide
to Lessor and Administrative Agent) that the applicable award, compensation or insurance proceeds
are not sufficient to repair, restore, or modify the Leased Property in accordance with Section
10.1(c), Lessee shall pay the shortfall prior to any further payment to Lessee of such award or
proceeds.

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          (e) If the Leased Property is not repaired, restored, or modified within the Permitted
Modification Period, as defined below, then, on the earlier of (i) the first Payment Date following
the expiration of such period, and (ii) the Termination Date, Lessee shall pay to Administrative
Agent, for the benefit of Lessor and the Participants, on such date an amount equal to the Lease
Balance, plus, without duplication, all unpaid accrued Rent and all other amounts then payable by
Lessee under this Lease. Upon receipt of such payment, Lessor shall comply with Section 14.5. As
used in this Section 10.1, “Permitted Modification Period” means 120 days after the date of
the Casualty or Condemnation necessitating the repair, restoration, or modification of the Leased
Property and, in the case of Section 10.1(c)(ii), 180 days after the date of the Significant
Casualty or the Significant Condemnation.

          (f) Upon completion of such repair, restoration, or modification pursuant to Section 10.1(c),
Lessee shall furnish to Lessor a Responsible Officer’s Certificate confirming that such restoration
has been so completed.

     Section 10.2. Environmental Matters. At Lessee’s sole cost and expense, Lessee shall
in a reasonably prompt and diligent manner undertake any response, clean up, remedial or other
action necessary to remove, clean up or remediate any Environmental Violation to the extent
required by Applicable Laws with respect to the Leased Property (a “Remediation”).

     Section 10.3. Notice of Environmental Matters. Lessee shall promptly provide to
Lessor written notice of any pending or threatened claim, action or proceeding involving any
Environmental Violation or any Release on, at, under or from the Leased Property, which violation
or Release could, in Lessee’s reasonable judgment, require costs for Remediation in excess of
$5,000,000, or which could result in the imposition of criminal penalties upon Lessor,
Administrative Agent or any Lender (any such violation, claim, action, proceeding or Release, a
“Material Environmental Violation”). All such notices shall describe the nature of the
Material Environmental Violation, including any claims, actions or proceedings in respect thereof,
and Lessee’s proposed response thereto. In addition, Lessee shall provide to Lessor, within ten
(10) Business Days of receipt, copies of all significant written communications with any
Governmental Authority relating to any such Material Environmental Violation. Lessee shall also
promptly provide such detailed reports of any such Material Environmental Violations as may
reasonably be requested by Lessor or Administrative Agent. Upon completion of the Remediation of
such Material Environmental Violation by Lessee, Lessee shall cause to be prepared by an
environmental consultant reasonably acceptable to Lessor and Administrative Agent a report
describing the Material Environmental Violation and the actions taken by Lessee (or its agents) in
response to such Material Environmental Violation, and a statement by the consultant that the
Material Environmental Violation has been remediated in compliance in all material respects with
applicable Environmental Law. The Remediation of each such Material Environmental Violation shall
be completed prior to the Scheduled Termination Date unless the Leased Property has been purchased
by Lessee in accordance with Section 10.4 or Section 17.22. Nothing in this Article 10 shall
reduce or limit Lessee’s obligations elsewhere in this Lease.

     Section 10.4. Termination of the Lease. If a Significant Casualty, Significant
Condemnation or Significant Environmental Event occurs during the Basic Lease Term, Lessee may
elect to terminate this Lease by giving Lessor and Administrative Agent written notice (a
“Termination Notice”) no later than sixty (60) days after Lessee’s written notice to Lessor
and

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Administrative Agent of the occurrence of such event. Following Lessor’s receipt of the
Termination Notice, Lessee shall purchase Lessor’s interest in all, but not less than all, of the
Leased Property on or before the next occurring Payment Date (but in no event earlier than thirty
(30) days after the date Lessor receives the applicable Termination Notice) by paying to Lessor in
cash in immediately available funds an amount equal to the Purchase Amount. Notwithstanding
delivery of the Termination Notice, Lessee shall not be relieved of its obligation to remediate
until payment of the Purchase Amount pursuant to the following sentence. Upon payment of the
Purchase Amount: (i) Lessor and Lessee shall comply with the provisions of Section 14.5; and (ii)
Lessor shall convey to Lessee any net proceeds (after deducting all costs and expenses incurred by
Lessor, Administrative Agent and the Lenders incident to collecting any such proceeds of a
Significant Casualty, Significant Condemnation or Significant Environmental Event, including,
without limitation, reasonable fees and expenses for counsel) that it receives with respect to the
event giving rise to the termination of this Lease or, at the request of Lessee, to the extent
actually received and if acceptable to Lessor in its sole judgment, Lessor shall apply such amounts
against sums due under this Lease.

     Section 10.5. Verification of Restoration and Rebuilding. In the event of a Casualty
or Condemnation, to verify Lessee’s compliance with its obligations in Section 10.1(c), Lessor,
Administrative Agent and their respective authorized representatives may, (A) upon five (5)
Business Days’ notice to Lessee, make inspections of the Leased Property with respect to (i) the
extent of the Casualty or Condemnation and (ii) the restoration and rebuilding of the Improvements
and (B) receive periodic updates at no cost from Lessee’s independent architect contracted in
connection with such restoration and rebuilding. All reasonable out-of-pocket costs of such
inspections incurred by Lessor or Administrative Agent will be paid by Lessee promptly after
written request. No such inspection shall unreasonably interfere with Lessee’s operations or the
operations of any other occupant of the Leased Property. None of the inspecting parties shall have
any duty to make any such inspection or inquiry and none of the inspecting parties shall incur any
liability or obligation by reason of making or not making any such inspection or inquiry.

     Section 10.6. Prosecution of Awards.

          (a) Unless a Lease Event of Default shall have occurred and be continuing, Lessee shall
control the negotiations with the relevant Governmental Authority with respect to any Condemnation,
provided that during the continuance of any Lease Event of Default, (1) Lessor shall control such
negotiations; and (2) Lessee hereby irrevocably assigns, transfers and sets over to Lessor all
rights of Lessee to any Award made during the continuance of a Lease Event of Default and, if there
will not be separate Awards to Lessor and Lessee on account of such Condemnation, irrevocably
authorizes and empowers Lessor during the continuance of a Lease Event of Default, with full power
of substitution, in the name of Lessee or otherwise (but without limiting the obligations of Lessee
under this Article X), to file and prosecute what would otherwise be Lessee’s claim for any such
Award and to collect, receipt for and retain the same; provided, however, that in
any event Lessor and Administrative Agent may participate in such negotiations, and no settlement
will be made without the prior consent of Lessor not to be unreasonably withheld.

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          (b) Notwithstanding the foregoing, Lessee may prosecute, and Lessor shall have no interest in,
any claim with respect to Lessee’s personal property and equipment not financed by Lessor and
Lessee’s relocation expenses.

     Section 10.7. Application of Certain Payments Not Relating to an Event of Taking. In
case of a requisition for temporary use of all or a portion of the Leased Property which is not a
Significant Condemnation, this Lease shall remain in full force and effect, without any abatement
or reduction of Basic Rent, and the Awards for the Leased Property shall, unless an Event of
Default has occurred and is continuing, be paid to Lessee.

     Section 10.8. Other Dispositions. Notwithstanding the foregoing provisions of this
Article X, so long as a Lease Event of Default shall have occurred and be continuing, any amount
that would otherwise be payable to or for the account of, or that would otherwise be retained by,
Lessee pursuant to this Article X shall be paid to Lessor as security for the obligations of Lessee
under this Lease and, at such time thereafter as no Lease Event of Default shall be continuing,
such amount shall be paid promptly to Lessee to the extent not previously applied by Lessor or
Administrative Agent in accordance with the terms of this Lease or the other Operative Documents.

     Section 10.9. No Rent Abatement. Rent shall not abate hereunder by reason of any
Casualty, Condemnation, Significant Casualty or Significant Condemnation, and Lessee shall continue
to perform and fulfill all of Lessee’s obligations, covenants and agreements hereunder
notwithstanding such Casualty, Condemnation, Significant Casualty or Significant Condemnation until
the Termination Date.

ARTICLE XI

INTEREST CONVEYED TO LESSEE

     Lessor and Lessee intend that this Lease be treated, for financial accounting purposes, as an
operating lease. For all other purposes, Lessee and Lessor intend that the transaction represented
by this Lease be treated as a secured financing transaction; as more particularly described in
Section 2.4(a) of the Participation Agreement. Accordingly, for purposes of applicable state law,
this Lease and the Memorandum of Lease will be treated as a mortgage, deed of trust and security
agreement, encumbering the Leased Property and the other property described therein, between
Lessee, as grantor, and Lessor, as mortgagee or beneficiary and secured party, or any successor
thereto, creating a first and paramount Lien on the Leased Property, and when any Lease Event of
Default has occurred and is continuing, Lessor shall have all of the rights, powers and remedies of
a mortgagee or deed of trust beneficiary available under Applicable Law to take possession of and
sell (whether by foreclosure or otherwise) the Leased Property. The effective date of such
mortgage or deed of trust shall be the effective date of this Lease. The recording of this Lease
(or a memorandum thereof) shall be deemed to be the recording of such mortgage and deed of trust.
The obligations secured by such mortgage or deed of trust shall include all Basic Rent and
Supplemental Rent hereunder and all other obligations of and amounts due from Lessee hereunder and
under the other Operative Documents.

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ARTICLE XII

EVENTS OF DEFAULT

     The following events shall constitute Events of Default (whether any such event shall be
voluntary or involuntary or come about or be effected by operation of law or pursuant to or in
compliance with any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

          (a) Lessee shall fail to make any payment of Basic Rent when due and such failure shall
continue for more than three (3) Business Days;

          (b) Lessee shall fail to make any payment of Supplemental Rent (other than Supplemental Rent
referred to in clause (c) below), and such failure shall continue for more than ten (10)
days after Lessor notifies Lessee thereof;

          (c) Lessee shall fail to pay the Purchase Amount when due pursuant to Section 10.4, 14.1 or
17.22 or shall fail to pay Lessee Obligation when required pursuant to Article XIV;

          (d) Lessee shall fail to maintain insurance as required by Article VIII hereof;

          (e) the occurrence of any breach of the provisions of Section 5.3(d) of the Participation
Agreement;

          (f) Guarantor, Lessee or any Subsidiary of Guarantor (i) is generally not paying, or admits in
writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or
otherwise to the filing against it of, a petition for relief or reorganization or arrangement or
any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy,
insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an
assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to any
substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi)
takes corporate action for the purpose of any of the foregoing; provided, however, that, except
with respect to Lessee, this clause (f) shall not apply to any Subsidiary of the Guarantor the book
value of whose total assets (determined in accordance with GAAP) is less than $10,000,000;

          (g) a court or Governmental Authority of competent jurisdiction enters an order appointing,
without consent by the Guarantor, Lessee or any of Guarantor’s Subsidiaries, a custodian, receiver,
trustee or other officer with similar powers with respect to it or with respect to any substantial
part of its property, or constituting an order for relief or approving a petition for relief or
reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any
bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding–up or
liquidation of the Guarantor, Lessee or any of Guarantor’s Subsidiaries, or any such petition shall
be filed against the Guarantor, Lessee or any of Guarantor’s Subsidiaries and such petition shall
not be dismissed within 60 days; provided, however, that, except with respect to Lessee, this
clause (g) shall not apply to any Subsidiary of Guarantor the book value of whose total assets
(determined in accordance with GAAP) is less than $10,000,000;

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          (h) any representation or warranty by Lessee or Guarantor in any Operative Document or in any
certificate or document delivered by either of them to Lessor or Administrative Agent pursuant to
any Operative Document shall have been incorrect in any material respect when made;

          (i) Guarantor shall repudiate or terminate the Guaranty, or the Guaranty shall at any time
cease to be in full force and effect or cease to be the legal, valid and binding obligation of
Guarantor by reason of any change in Applicable Laws or acts of Guarantor or Lessee;

          (j) either Lessee or Guarantor shall fail in any respect to timely perform or observe any
covenant, condition or agreement (other than the covenants, conditions and agreements referenced in
the other clauses of this Article XII) to be performed or observed by it hereunder or under any
other Operative Document and such failure shall continue for a period of thirty (30) days after the
earlier of (i) written notice thereof from Lessor or Administrative Agent and (ii) knowledge of
such breach by an officer of Lessee or Guarantor provided, however, that the period
within which such failure may be cured by Lessee will be extended for a further period (not to
exceed an additional ninety (90) days) as is necessary for the curing thereof with diligence, if
(but only if) (x) such failure is susceptible of cure but cannot with reasonable diligence be cured
within such thirty day period, (y) Lessee promptly commences to cure such failure and thereafter
continuously prosecutes the curing thereof with reasonable diligence and (z) the extension of the
period for cure will not, in any event, cause the period for cure to extend to or beyond the
Termination Date;

          (k) a final judgment or judgments for the payment of money aggregating in excess of
$25,000,000 are rendered against one or more of Guarantor and its Subsidiaries and which judgments
are not, within sixty (60) days after entry thereof, bonded, discharged or stayed pending appeal,
or are not discharged within sixty (60) days after the expiration of such stay;

          (l) Guarantor or any Subsidiary: (i) is in default (as principal or as guarantor or other
surety) in the payment of any principal of, or premium or make-whole amount or interest on, or
other amount in respect of, any Subject Indebtedness or (ii) is in default in the performance of or
compliance with any term of any evidence of any Subject Indebtedness or of any mortgage, indenture,
or other agreement relating thereto or any other condition exists, and as a consequence of such
default or condition, such Subject Indebtedness: (A) has become, or has been declared, due and
payable before its stated maturity or before its regularly scheduled dates of payment; or (B) the
holder or holders of any such Indebtedness or any trustee or agent acting on its or their behalf is
permitted (with or without the giving of notice, the lapse of time or both) to declare such
Indebtedness due and payable before its stated maturity or before its regularly schedule dates of
payment or to terminate any commitment relating thereto;

          (m) a Change of Control of Guarantor, as such term is defined in the Lennox Revolver, shall
have occurred.

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ARTICLE XIII

ENFORCEMENT

     Section 13.1. Remedies. If a Lease Event of Default shall occur, Lessor may declare
this Lease to be in default, and in the event of the occurrence of a Lease Event of Default
specified in Sections 12 (f) or (g) this Lease shall automatically and without declaration or other
action by Lessor or any other Person be in default, and in any such event, subject to Section 13.3,
Lessee will immediately pay to Lessor the Purchase Amount, upon which payment Lessor will be
obligated to convey its interest in the Leased Property to Lessee. Payment of the Purchase Amount
shall not affect Lessee’s obligations in respect of Supplemental Rent, which shall survive. Lessor
also may exercise at any time one or more of the following remedies as Lessor in its sole
discretion shall determine, without limiting any other right or remedy hereunder:

          (a) Lessor may, by notice to Lessee, rescind or terminate this Lease as of the date specified
in such notice; however, (A) no reletting, reentry or taking of possession of the Leased Property
by Lessor will be construed as an election on Lessor’s part to terminate this Lease unless a
written notice of such intention is given to Lessee, (B) notwithstanding any reletting, reentry or
taking of possession, Lessor may at any time thereafter elect to terminate this Lease for a
continuing Lease Event of Default, and (C) no act or thing done by Lessor or any of its agents,
representatives or employees and no agreement accepting a surrender of the Leased Property shall be
valid unless the same be made in writing and executed by Lessor;

          (b) Lessor may (i) demand that Lessee, and Lessee shall upon the written demand of Lessor,
return the Leased Property promptly to Lessor in the manner and condition required by, and
otherwise in accordance with all of the provisions of, Articles VI and XIV hereof as if the Leased
Property were being returned at the end of the Basic Lease Term, and Lessor shall not be liable for
the reimbursement of Lessee for any costs and expenses incurred by Lessee in connection therewith
and (ii) without prejudice to any other remedy which Lessor may have for possession of the Leased
Property, and to the extent and in the manner permitted by Applicable Law, enter upon the Leased
Property and take immediate possession of (to the exclusion of Lessee) the Leased Property or any
part thereof and expel or remove Lessee and any other person who may be occupying the Leased
Property, by summary proceedings or otherwise, all without liability to Lessee for or by reason of
such entry or taking of possession, whether for the restoration of damage to property caused by
such taking or otherwise and, in addition to Lessor’s other damages, Lessee shall be responsible
for the reasonable costs and expenses of reletting, including brokers’ fees and the reasonable
costs of any alterations or repairs made by Lessor;

          (c) Lessor may (i) sell all or any part of the Leased Property at public or private sale, as
Lessor may determine, free and clear of any rights of Lessee and without any duty to account to
Lessee with respect to such action or inaction or any proceeds with respect thereto (except to the
extent required by clause (ii) below if Lessor shall elect to exercise its rights thereunder) in
which event Lessee’s obligation to pay Basic Rent hereunder for periods commencing after the date
of such sale shall be terminated or proportionately reduced, as the case may be; and (ii) if Lessor
shall so elect, demand that Lessee pay to Lessor, and Lessee shall pay to Lessor, on the date of
such sale, as liquidated damages for loss of a bargain and not as a penalty (the parties agreeing
that Lessor’s actual damages would be difficult to predict, but the

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aforementioned liquidated damages represent a reasonable approximation of such amount) (in
lieu of Basic Rent due for periods commencing on or after the Payment Date coinciding with such
date of sale (or, if the sale date is not a Payment Date, the Payment Date next preceding the date
of such sale)), an amount equal to (a) the excess, if any, of (1) the sum of (A) all Rent and other
sums payable including Breakage Costs, if any, due and unpaid to and including such Payment Date
and (B) the Lease Balance, computed as of such date, over (2) the net proceeds of such sale (that
is, after deducting all costs and expenses incurred by Lessor, Administrative Agent, or the Lenders
incident to such conveyance (including, without limitation, all costs, expenses, fees, premiums and
taxes described in Section 14.5)); plus (b) interest at the Overdue Rate on the
foregoing amount from such Payment Date until the date of payment;

          (d) Lessor may, at its option, not terminate this Lease, and continue to collect all Basic
Rent, Supplemental Rent, and all other amounts due Lessor (together with all costs of collection)
and enforce Lessee’s obligations under this Lease as and when the same become due, or are to be
performed, and at the option of Lessor, upon any abandonment of the Leased Property by Lessee or
re-entry of same by Lessor, Lessor may, in its sole and absolute discretion, elect not to terminate
this Lease with respect thereto and may make such reasonable alterations and necessary repairs in
order to relet the Leased Property, and relet the Leased Property or any part thereof for such term
or terms (which may be for a term extending beyond the term of this Lease) and at such rental or
rentals and upon such other terms and conditions as Lessor in its reasonable discretion may deem
advisable; and upon each such reletting all rentals actually received by Lessor from such reletting
shall be applied to Lessee’s obligations hereunder in such order, proportion and priority as Lessor
may elect in Lessor’s sole and absolute discretion; it being agreed that under no circumstances
shall Lessee benefit from its default from any increase in market rents. If such rentals received
from such reletting during any Rent Period are less than the Rent to be paid during that Rent
Period by Lessee hereunder, Lessee shall pay any deficiency, as calculated by Lessor, to Lessor on
the Payment Date for such Rent Period;

          (e) At the option of Lessor exercised at any time and whether or not Lessor has re-entered or
taken possession of the Leased Property, Lessor forthwith shall be entitled to recover from Lessee
as liquidated damages, in addition to any other proper claims but in lieu of and not in addition to
any amount which would thereafter have become payable under the preceding clauses (c) or (d), the
Lease Balance for the date on which Lessor demands such payment, together with any accrued and
unpaid Basic Rent, Supplemental Rent and other sums payable as of the date of such demand, by
Lessee under this Lease and the other Operative Documents, plus the Breakage Costs, if any, and, so
long as Lessor has received payment in full of the foregoing amounts (without any limitation
thereon by reason of Section 13.3 hereof), then Lessor shall transfer and convey to Lessee the
Leased Property in accordance with the provisions of Section 14.5;

          (f) Lessor may exercise any other right or remedy that may be available to it under the
Memorandum of Lease or under Applicable Law, or proceed by appropriate court action (legal or
equitable) to enforce the terms hereof or to recover damages for the breach hereof. Separate suits
may be brought to collect any such damages for any Rent Period(s), and such suits shall not in any
manner prejudice Lessor’s right to collect any such damages for any subsequent Rent Period(s), or
Lessor may defer any such suit until after the expiration of the

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Basic Lease Term, in which event such suit shall be deemed not to have accrued until the
expiration of the Basic Lease Term; or

          (g) Lessor may retain and apply against Lessor’s damages all sums which Lessor would, absent
such Lease Event of Default, be required to pay to, or turn over to, Lessee pursuant to the terms
of this Lease.

     Section 13.2. Lessee’s Purchase Option. Notwithstanding anything herein or in the
Operative Documents to the contrary Lessee shall have the right to cure a Lease Event of Default by
purchasing the Leased Property by paying the Purchase Amount due on the date of purchase on or
before the earliest of (i) ten (10) Business Days after the declaration of the Lease Event of
Default, (ii) the sale of the Leased Property pursuant to a foreclosure of the Leased Property by
Lessor under the Memorandum of Lease or Administrative Agent under the Mortgage, and (iii) delivery
to Lessor or Administrative Agent of a deed in lieu of foreclosure. Payment of the Purchase Amount
shall not affect Lessee’s obligations in respect of Supplemental Rent, which shall survive.

     Section 13.3. Liquidated Damages.

          (a) In the event that a Lease Event of Default is declared (or deemed declared) solely and
exclusively on the basis of a Limiting Event, a claim or demand by Lessor for payment by Lessee of
the Purchase Amount or Lease Balance under the first paragraph of Section 13.1, and in such event
no sale or transfer under such Sections shall be required under Section 13.1(c)(ii)(a) or Section
13.1(e) hereof shall be limited to an amount equal to Lessee Obligation. The foregoing limitation
shall not limit or affect any other rights of Lessor as Lessor shall have all rights and remedies
available under the Operative Documents or available at law, equity or otherwise including, without
limitation, the right to demand the payment of Supplemental Rent and the right to require surrender
and return or sale to a third party of the Leased Property all as set forth herein. In the event
that Lessor requires the surrender and return or sale to a third party of the Leased Property,
Lessee covenants to peaceably dispossess itself thereof in satisfaction of the Limiting Lessee Risk
Conditions and other terms and conditions set forth in Section 14.7 hereof. Lessee nonetheless
acknowledges and agrees that even though the maximum aggregate recovery from it is limited as
aforesaid, Lessor’s right of recovery from the Leased Property (as opposed to any recovery from
Lessee) is not so limited and Lessor shall retain title to the Leased Property and Lessor, the
Lenders and each other Indemnitee, as applicable, shall be entitled to recover one hundred percent
(100%) of the amounts due or to become due to such Person in accordance with the Operative
Documents from its interest in the Leased Property.

          (b) “Limiting Event” means a Lease Event of Default arising (i) under Section 12.1(i)
hereof solely as a result of a failure of the Guaranty to be in full force and effect following a
change in Applicable Law and following the taking of best efforts by Guarantor and Lessee to
maintain the effectiveness of the Guaranty and recourse to Guarantor including, without limitation,
the filing of an action by such parties to prevent such change from affecting the enforceability
and effectiveness of the Guaranty; or (ii) under Section 12.1(e) hereof with respect to which the
default or condition relating to the Subject Indebtedness which gives rise to the Lease Event of
Default hereunder consists solely of one or more of the following: (x) a

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default, the existence of which depends upon the determination that a material adverse change
has occurred, or (y) a failure of any guaranty of Guarantor of any Subject Indebtedness to be in
full force and effect following a change in Applicable Law provided that Guarantor shall have used
its best efforts to maintain the effectiveness of such guaranty and the recourse against it under
such guaranty including, without limitation, the filing of an action to prevent such change from
affecting the enforceability and effectiveness of such guaranty which efforts have failed and
provided, further, that Guarantor shall have failed to assume the obligations of the obligor under
such Subject Indebtedness on a fully recourse basis, or (iii) pursuant to clause (i) of Section
12.1(f) solely by reason of Lessee or Guarantor’s failure generally to pay its debts as they become
due or (iv) pursuant to clause 12.1(m) solely by reason of an unsolicited tender offer for a
controlling interest in Guarantor, which tender offer results in acquisition of such controlling
interest by a third party which did not receive the approval of the board of directors of
Guarantor. Notwithstanding the foregoing, Lessee agrees and acknowledges that if together with or
following the declaration of a Lease Event of Default that is a Limiting Event, a separate Lease
Event of Default shall occur hereunder, the limitation on damages contained in this Section 13.3
shall be void and of no further effect without the need of any other actions of the parties.

     Section 13.4. Remedies Cumulative; No Waiver; Consents. To the extent permitted by,
and subject to the mandatory requirements of, Applicable Law, each and every right, power and
remedy herein specifically given to Lessor or otherwise in this Lease shall be cumulative and shall
be in addition to every other right, power and remedy herein specifically given or now or hereafter
existing at law, in equity or by statute, and each and every right, power and remedy whether
specifically herein given or otherwise existing may be exercised from time to time and as often and
in such order as may be deemed expedient by Lessor, and the exercise or the beginning of the
exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at
the same time or thereafter any right, power or remedy. No delay or omission by Lessor in the
exercise of any right, power or remedy or in the pursuit of any remedy shall impair any such right,
power or remedy or be construed to be a waiver of any default on the part of Lessee or to be an
acquiescence therein. Lessor’s consent to any request made by Lessee shall not be deemed to
constitute or preclude the necessity for obtaining Lessor’s consent, in the future, to all similar
requests. No express or implied waiver by Lessor of any Lease Event of Default shall in any way be,
or be construed to be, a waiver of any future or subsequent Lease Default or Lease Event of
Default. To the extent permitted by Applicable Law, Lessee hereby waives any rights now or
hereafter conferred by statute or otherwise that may require Lessor to sell, lease or otherwise use
the Leased Property or part thereof in mitigation of Lessor’s damages upon the occurrence of a
Lease Event of Default or that may otherwise limit or modify any of Lessor’s rights or remedies
under this Article XIII.

ARTICLE XIV

SALE, RETURN OR PURCHASE OF LEASED PROPERTY; RENEWAL

     Section 14.1. Purchase Option. (a) If no Lease Default or Lease Event of Default
hereunder shall have occurred and be continuing, Lessee shall have the option (the “Purchase
Option”), after irrevocable written notice to Lessor as hereinafter provided, to purchase the
Leased Property on or prior to but not later than the Scheduled Termination Date for an amount
equal to the Purchase Amount as of such date. If Lessee intends to exercise its purchase
option

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granted hereunder, it shall give an irrevocable written notice (the “Termination
Notice”) to Lessor and Administrative Agent (with a copy to each Lender) of its intention to
purchase the Leased Property, at least 150 days prior to the Scheduled Termination Date; provided,
however, that Lessee shall be deemed to have elected the Purchase Option at the end of the Basic
Lease Term if, at least 150 days prior to the Scheduled Termination Date, Lessee shall not have
notified Lessor and Administrative Agent (with a copy to each Lender) stating its intention to
either remarket or return the Leased Property pursuant to Section 14.2 and if the Lease shall not
be renewed in accordance with Section 14.8. If Lessee gives a Termination Notice to Lessor and
Administrative Agent (with a copy to each Lender), or is deemed to have given a Termination Notice,
the same shall constitute a binding obligation of Lessee to purchase the Leased Property and to pay
to Lessor the Purchase Amount on or prior to but not later than the Scheduled Termination Date.
Any such purchase of the Leased Property by Lessee pursuant to this Section 14.1 shall be
consummated in accordance with the terms of Section 14.5 hereof.

          (b) Any Termination Notice given by Lessee as provided by Lessee in the preceding subsection
shall (i) refer specifically to this Section 14.1, (ii) state that Lessee shall purchase the Leased
Property in accordance with the provisions of Section 14.5 hereof by paying to Lessor the Purchase
Amount due on the date set forth in clause (iii), and (iii) specify the date for such purchase,
which shall be a Payment Date no less than 30 days nor later than the Scheduled Termination Date.

          (c) If Lessee has elected to purchase the Leased Property in accordance with paragraph (a), on
the date of purchase, Lessee must pay in cash or immediately available federal funds, as the
purchase price therefor, an amount equal to the Purchase Amount. Upon payment of the Purchase
Amount, this Lease shall terminate and the Leased Property shall be conveyed to Lessee pursuant to
Section 14.5 hereof and in accordance with the terms and conditions thereof. If Lessee fails to
purchase the Leased Property on the designated purchase date in accordance with the terms hereof,
such failure shall immediately constitute a Lease Event of Default hereunder. Time is of the
essence with regard to Lessee’s obligations under this Section 14.1.

          (d) Any conveyance made to consummate a sale of the Leased Property to Lessee pursuant to this
Section 14.1 will cut off and terminate all interests in the Leased Property claimed by, through or
under Lessor, including Lessor Liens (including any interests conveyed by Lessor to third parties,
even if conveyed in the ordinary course of Lessor’s business, and including any judgment liens
established against the Leased Property because of a judgment rendered against Lessor), but not
personal obligations of Lessee under this Lease or any of the other Operative Documents (including,
without limitation, obligations of Lessee arising under the indemnities in the Participation
Agreement, which indemnities will survive any such sale).

          (e) If (contrary to the intent of the parties as expressed in Section 2.4 of the Participation
Agreement) it is determined that Lessee is not, under applicable state law as applied to the
Operative Documents, the equitable owner of the Leased Property and the borrower from Lessor in a
financing arrangement, but rather is a tenant under the Lease with an option to purchase from
Lessor as provided in this Section 14.1 or in Section 17.22 (as the case may be, the “Payoff
Option”), then the parties intend that the Payoff Option be secured by a lien and security
interest against the Leased Property. Accordingly, Lessor does hereby grant to Lessee a
lien and security interest against the Leased Property, including all rights, title and
interests of

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Lessor from time to time in and to the Land and Improvements, for the sole purpose of
securing (1) Lessor’s obligation to convey the Leased Property to Lessee if Lessee exercises the
Payoff Option and tenders payment of the Purchase Amount to Lessor as provided herein, and (2)
Lessee’s right to recover any damages from Lessor caused by a breach of such obligation, including
any such breach caused by a rejection or termination of the Payoff Option in any bankruptcy or
insolvency proceeding instituted by or against Lessor, as debtor. Lessee may enforce such lien and
security interest judicially after any such breach by Lessor, but not otherwise. The foregoing
grant shall terminate without further action upon the termination, expiration of the Payoff Option.

     Section 14.2. Sale of Leased Property to Third Party; Return Option.

          (a) Remarketing Obligations. If, 150 days or more prior to the Scheduled Termination
Date, Lessee notifies Lessor and Administrative Agent (with a copy to each Lender) in writing of
Lessee’s election not to exercise the Purchase Option as set forth in Section 14.1 and not to renew
the Basic Lease Term pursuant to Section 14.8 hereof, but instead to remarket the Leased Property
(the “Remarketing Option”) then Lessor shall have the right, and Lessee shall have the
obligation, as agent for Lessor, during the period commencing on the giving of such notice and
ending on the last day of the Basic Lease Term (the “Remarketing Period”), to use its best
efforts to obtain bona fide cash bids to purchase the Leased Property from prospective purchasers
that are financially capable of purchasing the Leased Property for cash in accordance with the
terms of Section 14.5 of this Lease. Upon the request of Lessor and at Lessee’s sole cost and
expense, Lessee shall provide Lessor with a written report describing in reasonable detail Lessee’s
efforts during the Remarketing Period to obtain bona fide bids for the purchase of the Leased
Property, including, without limitation, a list of all brokers retained and Persons approached for
the purpose of soliciting bids to purchase the Leased Property. Each of Lessor and Lessee shall
notify the other promptly of all bids received prior to the Scheduled Termination Date by Lessor or
Lessee, as the case may be, and such notice shall certify the amount of the bid and state the name
and address of the bidder.

          (b) Sale of Leased Property to Third Party Buyer. If Lessee has elected the
Remarketing Option, then not later than the Scheduled Termination Date, Lessor agrees to sell the
Leased Property to the cash bidder submitting the highest bid during the Remarketing Period, in
accordance with the terms of Section 14.5 of this Lease, with such changes as are necessary to
reflect that the sale was to a third party and not Lessee, provided, however, that (x) any such
sale to a third party shall be consummated, and the sales price for the Leased Property shall be
tendered to Lessor in immediately available funds, on or before the Scheduled Termination Date; (y)
Lessor shall not without the prior written consent of Administrative Agent consummate any proposed
sale of the Leased Property if Lessor has not received the amounts, if any, payable by Lessee
pursuant to Section 14.4(a); and (z) if the Net Proceeds of the proposed sale of the Leased
Property are less than the Lessor Residual Risk Amount as of the date of the proposed sale, then
Lessor shall not be obligated to sell the Leased Property and shall have the option to require that
Lessee return possession of the Leased Property to Lessor in accordance with Section 14.7. After
any such sale with respect to the Leased Property, the provisions of Section 14.4(a) shall apply.

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          (c) Return Option. If, 150 days or more prior to the Scheduled Termination Date,
Lessee notifies Lessor and Administrative Agent (with a copy to each Lender) in writing of Lessee’s
election not to exercise the Purchase Option as set forth in Section 14.1 and not to renew the
Basic Lease Term pursuant to Section 14.8 hereof, but instead to return the Leased Property (the
“Return Option”), then upon the expiration or earlier termination of the Basic Lease Term,
Lessee shall surrender and return the Leased Property in accordance with Section 14.7. The period
commencing on the giving of such notice and ending on the last day of the Basic Lease Term shall be
referred to herein as the “Return Period”.

     Section 14.3. Signs; Showing. If Lessee has not given timely notice pursuant to
Section 14.1 of its intention to purchase the Leased Property on the Scheduled Termination Date,
during the Remarketing Period or the Return Period, whichever is applicable, Lessor may, subject to
all Applicable Laws, restrictive covenants, rules and regulations and without unreasonably
interfering with Lessee’s business operations, (a) place signs in, on and around the Leased
Property advertising that the same will be available for rent or purchase, and (b) upon not less
than 48 hours prior notice to Lessee, show the Leased Property to prospective lessees or purchasers
at such reasonable times during normal business hours as Lessor may elect. During the Remarketing
Period or the Return Period, whichever is applicable, Lessee will be responsible for making the
Leased Property available for inspection by prospective purchasers and shall promptly, upon notice,
permit inspections of the Leased Property and any maintenance records relating to the Leased
Property by Lessor, any Lender, or any potential purchasers, during normal business hours or
otherwise upon reasonable request. If Lessee has elected the Remarketing Option, then Lessee shall
be responsible for hiring one or more brokers, whose services shall be compensated on a commission
basis, and shall otherwise do all things necessary to sell and deliver possession of the Leased
Property to any purchaser and all such marketing fees, commissions, costs and expenses of the
Leased Property shall be included among the deductions set forth in clause (ii) of the definition
of Net Proceeds.

     Section 14.4. End of Term Adjustment.

          (a) Third Party Sale of Leased Property. This Section 14.4(a) shall apply only if a
sale of the Leased Property to a third party has been consummated on or before the Scheduled
Termination Date. If the Net Proceeds (as hereinafter defined) received in connection with a sale
of the Leased Property are less than the Lease Balance as of such date, then Lessee shall, on such
date prior to the consummation of such sale, pay to Lessor, as an adjustment to the Basic Rent
payable under this Lease, by wire transfer of immediately available federal funds, an amount equal
to such deficiency (a “Deficiency”) as an adjustment to the Rent payable under this Lease,
plus the other Basic Rent, if any, due and payable on such date, plus any Supplemental Rent then
due and owing to Lessor hereunder; provided, however, that if all of the Limited Lessee Risk
Conditions (as hereinafter defined) have been satisfied, the amount of the Deficiency payable by
Lessee shall not exceed the then applicable Lessee Obligation; otherwise, if any Limited Lessee
Risk Condition is not satisfied, Lessee shall make the payments specified under Section 14.4(b)(ii)
hereof. If the Net Proceeds of such a sale exceed the applicable Lease Balance and Lessee shall
have paid to Lessor all Rent owing by Lessee herewith, then concurrently with such sale Lessor
shall pay to Lessee by wire transfer of immediately available funds an amount equal to such excess,
as an adjustment to the Basic Rent payable under this Lease; provided, however, that Lessor shall
have the right to offset against such adjustment

- 26 -

 

payable by Lessor any amounts then due and payable from Lessee to Lessor or any Indemnified
Party hereunder.

          (b) Lessee Obligation. If a sale of the Leased Property to a third party has not been
consummated on or prior to the Scheduled Termination Date for any reason, then on the Scheduled
Termination Date, Lessee shall pay to Lessor, by wire transfer of immediately available funds to
Administrative Agent, as an adjustment to the Rent payable under this Lease for the Leased Property
(the “End of Term Adjustment”), an amount equal to (i) if all of the Limited Lessee Risk
Conditions have been satisfied as of such Scheduled Termination Date, Lessee Obligation and (ii) if
one or more of the Limited Lessee Risk Conditions have not been satisfied as of such Scheduled
Termination Date, the Lease Balance, plus, in either case, the Basic Rent due and payable on the
Scheduled Termination Date, plus all Supplemental Rent then due and owing for the Leased Property,
and Lessee shall promptly vacate the Leased Property and surrender and return the Leased Property
to Lessor upon the Scheduled Termination Date in accordance with the provisions of this Lease,
including Section 14.7 hereof. In such event, if Lessor shall subsequently sell the Leased
Property to a third party after the Lease Termination Date, Lessor shall retain the full amount of
the sales proceeds thereof.

          (c) Applicable Definitions. As used in this Section 14, the term “Net
Proceeds” means, upon the sale of all of the Leased Property to one or more third parties, the
net amount of the cash proceeds actually received from such sale, after deducting from the gross
proceeds of such sale (i) all sales taxes and other taxes (excluding any net income or profit taxes
on or measured by Lessor’s income) as may be applicable to the sale or transfer of the Leased
Property, (ii) all fees, costs and expenses of the Sale Transaction (as hereinafter defined)
incurred by Lessor, Administrative Agent, any Lender or by Lessee, as Lessor’s agent, unless
separately paid or reimbursed by Lessee, and (iii) any other amounts for which, if not paid, Lessor
would be liable or which, if not paid, would constitute a Lien on the Leased Property. For
purposes of the foregoing, the term “Sale Transaction” means the sale or transfer of the
Leased Property in accordance with Section 14.2 hereof. As used in this Section 14, “Limited
Lessee Risk Conditions” means, collectively, the following: (A) no Lease Default (other than a
Lease Default that would, with the giving of notice or passing of time or both, become a Limiting
Event) or Lease Event of Default (other than a Limiting Event) shall have occurred and be
continuing hereunder; (B) Lessee has not exercised its purchase options under Sections 14.1 or
17.22 hereof; (C) either (x) a sale to a third party of the Leased Property has been consummated
and Lessor has received the Net Proceeds plus payment of Lessee Obligation and any Supplemental
Rent then due and owing hereunder with respect to the Leased Property, or (y) a sale to a third
party of the Leased Property has not been consummated, Lessee has vacated the Leased Property and
surrendered and returned the Leased Property to Lessor in the condition required by Section 14.7
hereof, and Lessor has received, payment of Lessee Obligation and any Supplemental Rent then due
and owing hereunder with respect to the Leased Property; (D) this Lease has not been terminated
prior to the Scheduled Termination Date (except solely by reason of Lessor’s exercise of remedies
solely because of a Limiting Event); and (E) the Leased Property is free and clear of all Liens
other than the Lien of the Mortgage and Lessor Liens.

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     Section 14.5. Purchase Procedure.

          (a) In the event of the purchase of the Leased Property by Lessee pursuant to any provision of
this Lease or by a third party pursuant to Section 14.2 hereof, the terms and conditions of this
Section 14.5 shall apply.

          (b) On the closing date fixed for the purchase of the Leased Property:

               (i) The required purchase price (which in the case of a purchase by Lessee will equal the
Purchase Amount) shall be paid to Administrative Agent, in lawful money of the United States in
immediately available funds, at Administrative Agent’s address hereinabove stated or at any other
place in the United States which Administrative Agent may designate;

               (ii) Lessor shall execute and deliver to Lessee good and sufficient deeds warranting title
only against Lessor Liens and such other instrument or instruments as may be appropriate, which
shall transfer the Leased Property including, without limitation, any rights of Lessor against any
party through whom Lessor derived its title to the Leased Property subject to (A) any encumbrances
existing on the Closing Date, (B) Permitted Liens, (C) all liens, encumbrances, charges, exceptions
and restrictions attaching to the Leased Property after the Closing Date (other than Lessor Liens),
and (D) Applicable Laws, but in any event, in each case free and clear of all Lessor Liens provided
that the Leased Property shall be conveyed “AS IS, WHERE IS” and its then present physical
condition;

               (iii) All out of pocket costs and charges incident to such transfer, including but not limited
to all transfer taxes, recording fees, title insurance premiums, reasonable attorneys fees and
federal, state and local taxes, (but not including Excluded Taxes) of Lessor, Administrative Agent
and the Lenders will be paid from sale proceeds and deducted in computing Net Proceeds;

               (iv) Lessee shall pay to Administrative Agent all Basic Rent, and to Administrative Agent or
whichever party is entitled thereto all Supplemental Rent, Breakage Costs, if any, and other sums
payable by Lessee under this Lease or under any other Operative Document, due and payable through
the date Lessee purchases the Leased Property; and

               (v) Except as otherwise provided herein, this Lease shall terminate and be of no further force
and effect with respect to the Leased Property following satisfaction of the foregoing and the
applicable provisions hereof.

     Section 14.6. Essence of the Lease; Interpretation. The provisions of Sections 13.2,
14 and 17.22 are of the essence of this Lease, and time is of the essence for payment and
performance of the obligations of Lessee set forth therein.

     Section 14.7. Surrender and Return.

          (a) Upon the expiration or earlier termination of the Basic Lease Term, and provided that
Lessee, if so entitled, has not exercised its option to purchase the Leased Property or renew this
Lease pursuant to Section 14.8 hereof or if Lessor shall have elected to require

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Lessee to return the Leased Property pursuant to Section 14.2(b) or if Lessee shall have
elected to return the Leased Property pursuant to Section 14.2(c), then Lessee shall peaceably
leave and surrender and return the Leased Property to Lessor (the “Surrender Obligation”)
in good condition, ordinary wear and tear excepted, and in compliance with the provisions of this
Lease. Lessee shall remove from the Leased Property on or prior to such expiration or earlier
termination all property situated thereon which is not the property of Lessor, and the Leased
Property shall be broom clean and Lessee shall repair any damage caused by such removal. Property
not so removed shall become the property of Lessor, and Lessor may cause such property to be
removed from the Leased Property and disposed of, and Lessee shall pay the reasonable cost of any
such removal and disposition and of repairing any damage caused by such removal.

          (b) Except for surrender upon the expiration or earlier termination of the Basic Lease Term
hereof, no surrender to Lessor of this Lease or of the Leased Property shall be valid or effective
unless agreed to and accepted in writing by Lessor.

          (c) Without limiting the generality of the foregoing, upon the surrender and return of the
Leased Property to Lessor pursuant to this Section 14.7, the Leased Property shall be (i) capable
of being immediately utilized by a third-party purchaser or third-party lessee without further
inspection, repair, replacement, alterations or improvements, licenses, permits, or approvals,
except for any of the foregoing required solely by virtue of the change in ownership (other than to
Lessor or Administrative Agent), use or occupancy of the Leased Property, (ii) in accordance and
compliance with all Applicable Laws including, without limitation, any of the foregoing required by
virtue of a change in ownership, use or occupancy of the Leased Property other than to Lessee, and
(iii) free and clear of any Lien. Until the Leased Property has been surrendered and returned to
Lessor in accordance with the provisions of this Section 14.7 and subject to Article XIII
hereof, Lessee shall continue to pay Lessor all Basic Rent and Supplemental Rent due hereunder.

          (d) After receipt of notice of Lessee’s exercise of the Remarketing Option or the Return
Option, Lessor or Administrative Agent an environmental assessment of the Leased Property dated not
later than forty-five (45) days prior to the scheduled date of such surrender and return. Such
environmental assessment shall be prepared by an independent environmental consultant selected by
Lessor, shall be in form, detail and substance reasonably satisfactory to Lessor, and shall
otherwise indicate the environmental condition of the Leased Property to be the same as described
in the related Environmental Audit, and if such environmental assessment reveals the need for
additional review or testing, then Lessee shall pay for the cost of such report and any additional
review and provide all such additional information or environmental assessments as are recommended
and, subject to Section 5.1(h) of the Participation Agreement, perform any remediation recommended
therein, and provide evidence of compliance with Section 14.7(c)(ii) above to Lessor and Lenders.
If such report does not recommend any additional review as testing, then Lessee shall not be
obligated to pay for the report as a cost in addition to the payment required of Lessee by Section
14.4(b).

          (e) Lessee acknowledges and agrees that a breach of any of the provisions of this Section 14.7
may result in damages to Lessor that are difficult or impossible to ascertain and that may not be
compensable at law. Accordingly, upon application to any court of equity

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having jurisdiction over the Leased Property or Lessee, Lessor shall be entitled to a decree
against Lessee requiring specific performance of the covenants of Lessee set forth in this Section
14.7.

          (f) Upon the request of Lessor, Lessee shall continue to maintain its insurance policies for
the Leased Property, to the extent permitted by such policies, provided that Lessor pays or
reimburses Lessee for the pro rata cost thereof.

     Section 14.8. Renewal. Subject to the conditions set forth herein, Lessee may, by
written notice to Lessor and Administrative Agent given not later than 150 days and not earlier
than twelve (12) months, prior to the Scheduled Termination Date, give notice that Lessee shall
renew this Lease subject to the consent of Lessee and the Lenders, which consent may be withheld in
their sole discretion, for a term and upon conditions mutually agreeable to Lessee and such
parties. No later than the date that is forty five (45) days after the date the request to renew
has been delivered to each of Lessor and Administrative Agent, Administrative Agent will notify
Lessee whether or not Lessor and the Lenders consent to such renewal request (which consent, may be
granted or denied in their sole discretion, and may be conditioned on such conditions precedent as
may be specified by such parties). If Administrative Agent fails to respond within such time
frame, such failure shall be deemed to be a rejection of such request. If Administrative Agent
notifies Lessee that Lessor and the Lenders have consented to such renewal, such renewal shall be
effective upon agreement by Lessee and such parties in writing prior to the date upon which such
renewal becomes effective of terms and conditions mutually agreeable. A failure of the parties to
reach agreement on such renewal 90 days prior to the applicable Scheduled Termination Date shall
constitute and be deemed an election by Lessee to purchase the Leased Property pursuant to Section
14.1 hereof.

ARTICLE XV

LESSEE’S EQUIPMENT

     After any repossession of the Leased Property (whether or not this Lease has been terminated),
Lessee, at its expense and so long as the removal of Lessee’s trade fixtures, personal property and
equipment shall not result in a violation of Applicable Law, shall, within a reasonable time after
such repossession or within sixty (60) days after Lessee’s receipt of Lessor’s written request
(whichever shall first occur), remove all of Lessee’s trade fixtures, personal property and
equipment from the Leased Property (to the extent that the same can be readily removed from the
Leased Property without causing material damage to the Leased Property); provided,
however, that Lessee shall not remove any such fixtures that constitute Leased Property (or
that constitute a replacement of Leased Property). Any of Lessee’s trade fixtures, personal
property and equipment not so removed by Lessee within such period shall be considered abandoned by
Lessee, and title thereto shall without further act vest in Lessor, and may be appropriated, sold,
destroyed or otherwise disposed of by Lessor without notice to Lessee and without obligation to
account therefor and Lessee will pay Lessor, upon written demand, all reasonable costs and expenses
incurred by Lessor in removing, storing or disposing of the same and all costs and expenses
incurred by Lessor to repair any damage to the Leased Property caused by such removal. Lessee will
immediately repair at its expense all damage to the Leased Property caused by any such removal
(unless such removal is effected by Lessor, in which event Lessee shall pay all reasonable costs
and expenses incurred by Lessor for such repairs). Lessor

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shall have no liability in exercising Lessor’s rights under this Article XV, nor shall Lessor
be responsible for any loss of or damage to Lessee’s personal property and equipment.

ARTICLE XVI

RIGHT TO PERFORM FOR LESSEE

     If a Lease Event of Default results from any failure of Lessee to perform or comply with any
of its agreements contained herein, then so long as such Lease Event of Default continues, Lessor
may perform or comply with such agreement, and Lessor shall not thereby be deemed to have waived
any default caused by such failure, and all expenses of Lessor (including reasonable attorney’s
fees and expenses) incurred in connection with such performance or compliance with such agreement,
as the case may be, shall be deemed Supplemental Rent, payable by Lessee to Lessor within thirty
(30) days after written demand therefor.

ARTICLE XVII

MISCELLANEOUS

     Section 17.1. Reports. To the extent required under Applicable Law and to the extent
it is reasonably practical for Lessee to do so, Lessee shall prepare and file in timely fashion,
or, where such filing is required to be made by Lessor or it is otherwise not reasonably practical
for Lessee to make such filing, Lessee shall prepare and deliver to Lessor (with a copy to
Administrative Agent) within a reasonable time prior to the date for filing and Lessor shall file,
any material reports with respect to the condition or operation of the Leased Property that shall
be required to be filed with any Governmental Authority.

     Section 17.2. Binding Effect; Successors and Assigns; Survival. The terms and
provisions of this Lease, and the respective rights and obligations hereunder of Lessor and Lessee,
shall be binding upon their respective successors, legal representatives and assigns (including, in
the case of Lessor, any Person to whom Lessor may transfer the Leased Property or any interest
therein in accordance with the provisions of the Operative Documents), and inure to the benefit of
their respective permitted successors and assigns, and the rights hereunder of Administrative Agent
shall inure (subject to such conditions as are contained herein) to the benefit of their respective
permitted successors and assigns. Lessee hereby acknowledges that Lessor has assigned all of its
right, title and interest to, in and under this Lease to Administrative Agent, and that all of
Lessor’s rights hereunder may be exercised by Administrative Agent and that Administrative Agent is
an express third party beneficiary hereof.

     Section 17.3. Quiet Enjoyment. Lessor covenants that it will not interfere in
Lessee’s or any of its permitted sublessees’ quiet enjoyment of the Leased Property in accordance
with this Lease during the Basic Lease Term, so long as no Lease Event of Default has occurred and
is continuing. Such right of quiet enjoyment is independent of, and shall not affect, Lessor’s
rights otherwise to initiate legal action to enforce the obligations of Lessee under this Lease.

     Section 17.4. Notices. Unless otherwise specified herein, all notices, offers,
acceptances, rejections, consents, requests, demands or other communications to or upon the
respective parties hereto shall be in writing and shall be deemed to have been given as set forth
in Section 8.2 of the Participation Agreement. All such notices, offers, acceptances, rejections,

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consents, requests, demands or other communications shall be addressed as follows or to such
other address as any of the parties hereto may designate by written notice:

If to Lessor:

BTMU Capital Corporation

111 Huntington Avenue

Boston, MA 02199

Attn: Senior Vice President – Portfolio Servicing

Phone: 617-345-5727

Fax: 617-345-1444

Email: cbehan@btmucc.com

If to Lessee:

Lennox Procurement Company Inc.

2140 Lake Park Boulevard

Richardson, TX 75080

Attn: Gregg Moseman

Phone: 972-497-6935

Fax: 972-497-6940

Email: gregg.moseman@lennoxintl.com

     If to any other party to the Transaction, to the address provided in the Participation
Agreement.

     Section 17.5. Severability. Any provision of this Lease that shall be prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction, and Lessee shall remain liable to perform
its obligations hereunder except to the extent of such unenforceability. To the extent permitted by
Applicable Law, Lessee hereby waives any provision of law that renders any provision hereof
prohibited or unenforceable in any respect .

     Section 17.6. Amendment; Complete Agreements. Neither this Lease nor any of the terms
hereof may be terminated, amended, supplemented, waived or modified orally, except by an instrument
in writing signed by Lessor and Lessee in accordance with the provisions of Section 8.4 of the
Participation Agreement. This Lease, together with the other Operative Documents, is intended by
the parties as a final expression of the lease financing agreement and as a complete and exclusive
statement of the terms thereof, all negotiations, considerations and representations between the
parties having been incorporated herein and therein. No course of prior dealings between the
parties or their officers, employees, agents or Affiliates shall be relevant or admissible to
supplement, explain, or vary any of the terms of this Lease or any other Operative Document.
Acceptance of, or acquiescence in, a course of performance rendered under

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this or any prior agreement between the parties or their Affiliates shall not be relevant or
admissible to determine the meaning of any of the terms of this Lease or any other Operative
Document. No representations, undertakings, or agreements have been made or relied upon in the
making of this Lease other than those specifically set forth in the Operative Documents.

     Section 17.7. Construction. This Lease shall not be construed more strictly against
any one party, it being recognized that both of the parties hereto have contributed substantially
and materially to the preparation and negotiation of this Lease.

     Section 17.8. Headings. The Table of Contents and headings of the various Articles
and Sections of this Lease are for convenience of reference only and shall not modify, define or
limit any of the terms or provisions hereof.

     Section 17.9. Counterparts. Lease may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

     Section 17.10. GOVERNING LAW.

          (a) THIS LEASE SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE, EXCEPT AS TO MATTERS RELATING TO THE CREATION OF THE LEASEHOLD ESTATE HEREUNDER, AND
THE EXERCISE OF RIGHTS AND REMEDIES WITH RESPECT THERETO, WHICH SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAW OF THE STATE IN WHICH SUCH ESTATE IS LOCATED.

          (b) ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS LEASE
OR ANY OTHER OPERATIVE DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF LESSEE, GUARANTOR OR LESSOR SHALL BE BROUGHT AND MAINTAINED IN THE
COURTS OF THE STATE OF NEW YORK, NEW YORK COUNTY OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
PROPERTY MAY BE BROUGHT, AT THE OPTION OF LESSOR OR ADMINISTRATIVE AGENT ACTING AT THE DIRECTION OF
THE REQUIRED LENDERS, IN THE COURTS OF ANY JURISDICTION WHERE SUCH PROPERTY MAY BE FOUND. EACH
PARTY HERETO HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK, NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION.
EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH

- 33 -

 

PARTY HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM. TO THE EXTENT THAT EACH PARTY HERETO HAS OR HEREAFTER MAY ACQUIRE ANY
IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR
NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS LEASE AND THE OTHER OPERATIVE DOCUMENTS.

          (c) EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS LEASE OR ANY OTHER OPERATIVE DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF ANY OTHER PARTY HERETO. EACH PARTY
HERETO ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS
PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH SUCH PARTY ENTERING INTO THIS
LEASE AND THE OTHER OPERATIVE DOCUMENTS.

     Section 17.11. Discharge of Lessee’s Obligations by its Affiliates. Lessor agrees
that performance of any of Lessee’s obligations hereunder by one or more of Lessee’s Affiliates or
one or more of Lessee’s sublessees of the Leased Property or any part thereof shall constitute
performance by Lessee of such obligations to the same extent and with the same effect hereunder as
if such obligations were performed by Lessee, but no such performance shall excuse Lessee from any
obligation not performed by it or on its behalf under the Operative Documents.

     Section 17.12. Liability of Lessor Limited. The liability of each of Lessor and its
Affiliates and their respective officers, directors, employees or agents, individually and
personally, with respect to the performance of any obligation under this Lease and under the
Operative Documents is limited as set forth in Section 8.10 of the Participation Agreement, the
provisions of which are hereby incorporated by reference as if fully set forth herein.

     Section 17.13. Estoppel Certificates. Lessee agrees that at any time and from time to
time during the Basic Lease Term, it will promptly, but in no event later than fifteen (15) days
after request by Lessor, execute, acknowledge and deliver to Lessor, Administrative Agent, or to
any prospective purchaser (if such prospective purchaser has signed a commitment or letter of
intent to purchase the Leased Property or any part thereof or any Note), assignee or mortgagee or
third party designated by such other party, a certificate stating (a) that this Lease is unmodified
and in force and effect (or if there have been modifications, that this Lease is in force and
effect as modified, and identifying the modification agreements); (b) the date to which Basic Rent
has been paid; (c) whether or not there is any existing default by Lessee in the payment of Basic
Rent or any other sum of money hereunder, and whether or not there is any other existing default by

- 34 -

 

either party with respect to which a notice of default has been served, and, if there is any
such default, specifying the nature and extent thereof; (d) whether or not, to the knowledge of the
signer after due inquiry and investigation, there are any setoffs, defenses or counterclaims
against enforcement of the obligations to be performed hereunder existing in favor of the party
executing such certificate and (e) other items that may be reasonably requested; provided
that no such certificate may be requested unless the requesting party has a good faith reason for
such request.

     Section 17.14. No Joint Venture. Any intention to create a joint venture or
partnership relation between Lessor and Lessee is hereby expressly disclaimed.

     Section 17.15. No Accord and Satisfaction. The acceptance by Lessor of any sums from
Lessee (whether as Basic Rent or otherwise) in amounts which are less than the amounts due and
payable by Lessee hereunder is not intended, nor shall be construed, to constitute an accord and
satisfaction of any dispute between Lessor and Lessee regarding sums due and payable by Lessee
hereunder, unless Lessor specifically deems it as such in writing.

     Section 17.16. No Merger. In no event shall the leasehold interests, estates or
rights of Lessee hereunder, or of the holder of any Notes secured by a security interest in this
Lease, merge with any interests, estates or rights of Lessor in or to the Leased Property, it being
understood that such leasehold interests, estates and rights of Lessee hereunder, and of the holder
of any Notes secured by a security interest in this Lease, shall be deemed to be separate and
distinct from Lessor’s interests, estates and rights in or to the Leased Property, notwithstanding
that any such interests, estates or rights shall at any time or times be held by or vested in the
same person, corporation or other entity.

     Section 17.17. Survival. The obligations of Lessee to be performed under this Lease
on or prior to the Termination Date and the obligations of Lessee arising or accruing on or prior
to the Termination Date pursuant to Article III, Articles X, XI, XIII, Sections 14.2, 14.3, 14.4,
14.5, 14.7, Articles XV, and XVI, and Sections 17.10, 17.12 and 17.19 shall survive the expiration
or termination of this Lease. The extension of any applicable statute of limitations by Lessor,
Lessee, Administrative Agent or any Indemnitee shall not affect such survival.

     Section 17.18. Chattel Paper. To the extent that this Lease constitutes chattel paper
(as such term is defined in the Uniform Commercial Code in any applicable jurisdiction), no
security interest in this Lease may be created through the transfer or possession of any
counterpart other than the original counterpart, which shall be identified as the original
counterpart by the receipt of Administrative Agent.

     Section 17.19. Time of Essence. Time is of the essence of this Lease.

     Section 17.20. Recordation of Lease. Lessee will, at its expense, cause this Lease or
memorandum of lease (if permitted by Applicable Law) to be recorded in the proper office or offices
in the State of Texas.

     Section 17.21. Investment of Security Funds. Any amounts not payable to Lessee
pursuant to any provision of Article VIII, X or XIV or this Section 17.21 solely because a Lease
Event of Default shall have occurred and be continuing shall be held by Lessor as security for the

- 35 -

 

obligations of Lessee under this Lease and the Participation Agreement. At such time as no
Lease Event of Default shall be continuing, such amounts, net of any amounts previously applied to
Lessee’s obligations hereunder or under the Participation Agreement, shall be paid to Lessee. Any
such amounts which are held by Lessor or Administrative Agent pending payment to Lessee shall until
paid to Lessee, as provided hereunder or, as long as the Credit Agreement is in effect, until
applied against Lessee’s obligations herein and under the Participation Agreement or distributed to
Lessee as provided herein be invested by Administrative Agent or Lessor, as the case may be as
directed from time to time in writing by Lessee (provided, however, if a Lease
Event of Default has occurred and is continuing it will be directed by Required Lenders or, if the
Funded Amounts have been fully paid, Lessor) and at the expense and risk of Lessee, in Permitted
Investments. Any gain (including interest received) realized as the result of any such investment
(net of any fees, commissions and other expenses, if any, incurred in connection with such
investment) shall be applied in the same manner as the principal invested.

     Section 17.22. Early Termination Option.

          (a) So long as no Lease Default or Lease Event of Default has occurred and is continuing
hereunder, at any time during the Basic Lease Term, Lessee may give Lessor, the Lenders and
Administrative Agent an irrevocable written notice (the “Early Termination Notice”) of
Lessee’s intention to terminate this Lease and purchase the Leased Property pursuant to this
Section 17.22. Such notice shall (i) refer specifically to this Section 17.22, (ii) state that
Lessee shall purchase the Leased Property in accordance with the provisions of Section 14.5 hereof
by paying to Lessor the Purchase Amount due on the date set forth in clause (iii), and (iii)
specify the date for such purchase, which shall be the first Payment Date no less than 30 nor more
than 90 days after the date of delivery the Purchase Notice, but in any event shall not be later
than the Termination Date. Upon such election, Lessee shall purchase the Leased Property in
accordance with the provisions of Section 14.5 hereof on such purchase date at such purchase price.

          (b) If Lessee has elected to purchase the Leased Property in accordance with paragraph (a), on
the date of purchase, Lessee shall pay in cash or immediately available federal funds, as the
purchase price therefor, an amount equal to the Purchase Amount.

          (c) Upon payment of the Purchase Amount, this Lease shall terminate and the Leased Property
shall be conveyed to Lessee pursuant to Section 14.5 hereof and in accordance with the terms and
conditions thereof. If Lessee fails to purchase the Leased Property on the designated purchase
date in accordance with the terms hereof, such failure shall immediately constitute a Lease Event
of Default hereunder. Time is of the essence with regard to Lessee’s obligations under this
Section 17.22.

[balance of page left blank/signatures follow]

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     IN WITNESS WHEREOF, the undersigned have each caused this Lease Agreement to be duly executed
and delivered and attested by their respective officers thereunto duly authorized as of the day and
year first above written.

	 	 	 	 	 	 	 
	 	 	BTMU CAPITAL CORPORATION, as Lessor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Cheryl A. Behan	 	 
	 

	 	 	 	 

Name: Cheryl A. Behan
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	LENNOX PROCUREMENT COMPANY INC.,	 	 
	 	 	as Lessee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gregory A. Moseman	 	 
	 

	 	 	 	 

Name: Gregory A. Moseman
	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 

 

 

APPENDIX A

to

Participation Agreement,

Lease and Credit Agreement

DEFINITIONS AND INTERPRETATION

     A. Interpretation. In each Operative Document, unless a clear contrary intention
appears:

     (i) the singular number includes the plural number and vice versa;

     (ii) reference to any Person includes such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by the Operative Documents,
and reference to a Person in a particular capacity excludes such Person in any other
capacity or individually;

     (iii) reference to any gender includes each other gender;

     (iv) reference to any agreement (including any Operative Document), document or
instrument means such agreement, document or instrument as amended, supplemented or modified
and in effect from time to time in accordance with the terms thereof and, if applicable, the
terms of the other Operative Documents and reference to any promissory note includes any
promissory note which is an extension or renewal thereof or a substitute or replacement
therefor;

     (v) reference to any Applicable Law means such Applicable Law as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to time,
including rules and regulations promulgated thereunder and reference to any section or other
provision of any Applicable Law means that provision of such Applicable Law from time to
time in effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such section or other provision;

     (vi) reference in any Operative Document to any Article, Section,
Appendix, Schedule or Exhibit means such Article or
Section thereof or Appendix, Schedule or Exhibit thereto;

     (vii) “hereunder”, “hereof”, “hereto” and words of similar import shall be deemed
references to an Operative Document as a whole and not to any particular Article,
Section or other provision hereof;

     (viii) “including” (and with correlative meaning “include”) means including without
limiting the generality of any description preceding such term;

     (ix) “or” is not exclusive; and

 

 

     (x) relative to the determination of any period of time, “from” means “from and
including” and “to” means “to but excluding”.

     B. Accounting Terms. In each Operative Document, unless expressly otherwise provided,
accounting terms shall be construed and interpreted, and accounting determinations and computations
shall be made, in accordance with GAAP.

     C. Conflict in Operative Documents. If there is any conflict between any Operative
Documents, such Operative Document shall be interpreted and construed, if possible, so as to avoid
or minimize such conflict but, to the extent (and only to the extent) of such conflict, the
Participation Agreement shall prevail and control.

     D. Legal Representation of the Parties. The Operative Documents were negotiated by
the parties with the benefit of legal representation and any rule of construction or interpretation
otherwise requiring the Operative Document to be construed or interpreted against any party shall
not apply to any construction or interpretation hereof or thereof.

     E. Defined Terms. Unless a clear contrary intention appears, terms defined herein
have the respective indicated meanings set forth below when used in each Operative Document:

     “Acceleration” is defined in Section 4.3(b) of the Credit Agreement.

     “Actual Knowledge” by a Person or Persons with respect to the occurrence or
non-occurrence of an event, means knowledge of such occurrence or non-occurrence by the officer of
such Person or Persons in the best organizational position to have such knowledge.

     “Additional Payment” means an amount equal to Eight Hundred Twenty Four Thousand Fifty
Nine and 89/100 ($824,059.89).

     “Address” means with respect to any Person, its address set forth in Schedule 8.2 to
the Participation Agreement or such other address as it shall have identified to the parties to the
Participation Agreement in writing.

     “Adjusted EBITDA” means, for any period (the “Subject Period”), the sum of (a)
EBITDA plus (b), to the extent not included in EBITDA, all Acquired EBITDA (as defined
below). If at any time during the Subject Period the Guarantor or any Subsidiary shall have made
any Material Disposition (as defined below), the Adjusted EBITDA for such Subject Period shall be
reduced by an amount equal to the Adjusted EBITDA (if positive) attributable to the property that
is the subject of such Material Disposition for such Subject Period or increased by an amount equal
to the Adjusted EBITDA (if negative) attributable thereto for such Subject Period. The term
“Material Disposition” means any disposition of all of the Equity Interests in any
Subsidiary or all or substantially all of the assets of any Subsidiary that yields gross proceeds
to the Guarantor or any of its Subsidiaries in excess of $25,000,000. The term “Acquired
EBITDA” means, with respect to any Person acquired, or substantially all of whose assets have
been acquired, by the Guarantor or any Subsidiary during the Subject Period (herein a
“Target”), the total of the following for the portion of the Subject Period prior to the
acquisition of such Person or its assets (the “Test Period”) determined on a consolidated
basis in accordance with GAAP consistently applied from financial statements audited by a certified
public accountant

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satisfactory to the Revolver Administrative Agent and covering the Test Period (provided that
audited financial statements are not required if the annual earnings before interest, taxes,
depreciation and amortization of the Target for the completed twelve month period prior to its
acquisition is less than $5,000,000, calculated in the same manner as set forth in the definition
of Acquired EBITDA but for such twelve month period) and otherwise on a basis acceptable to the
Administrative Agent:

     (i) the consolidated net income (or net loss) of the Target from operations, excluding the
following:

	 	(a)	 	the proceeds of any life insurance policy;
	 
	 	(b)	 	any gain arising from (1) the sale or other disposition of any
assets (other than current assets) to the extent that the aggregate amount of
gains exceeds the aggregate amount of losses from the sale, abandonment or
other disposition of assets (other than current assets), (2) any write–up of
assets, or (3) the acquisition by the Target of its outstanding securities
constituting Indebtedness;
	 
	 	(c)	 	any amount representing the interest of the Target in the
undistributed earnings of any other Person;
	 
	 	(d)	 	any earnings of any other Person accrued prior to the date it
becomes a Subsidiary of the Target or is merged into or consolidated with the
Target or a Subsidiary of the Target and any earnings, prior to the date of
acquisition, of any other Person acquired in any other manner; and
	 
	 	(e)	 	any deferred credit (or amortization of a deferred credit)
arising from the acquisition of any Person; plus

     (ii) the sum of (a) any deduction for (or less any gain from) income or franchise taxes
included in determining such consolidated net income (or loss); plus (b) Interest Expenses
deducted in determining such consolidated net income (or loss); plus (c) amortization and
depreciation expense deducted in determining such consolidated net income (or loss) plus
(d) any non–recurring and non–cash charges resulting from the application of GAAP that requires a
charge against earnings for the impairment of goodwill to the extent not already added back or not
included in determining such consolidated net income (or loss), all calculated without duplication;
minus,

     (iii) to the extent added in computing such consolidated net income (or loss), all income that
has been included in the calculation of such net income for such period that will be eliminated in
the future after the acquisition of such Target, as approved by the Administrative Agent.

     “Administrative Agent” means MHCB (USA) Leasing and Finance Corporation, a New York
corporation, in its capacity as such under the Operative Documents, and any successor
Administrative Agent appointed pursuant thereto.

- 3 -

 

     “Affiliate” of any Person shall mean any other Person directly or indirectly
controlling, controlled by or under common control with, such Person. For purposes of this
definition, the term “control” (including the correlative meanings of the terms
“controlling,” “controlled by” and “under common control with”), as used
with respect to any Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management policies of such Person, whether through the
ownership of voting securities or by contract or otherwise, provided (but without limiting the
foregoing) that no pledge of voting securities of any Person without the current right to exercise
voting rights with respect thereto shall by itself be deemed to constitute control over such
Person.

     “After-Tax Basis” means, with respect to any payment to be received (in the
definition, the “Initial Payment”), the amount of such Initial Payment increased so that,
after deduction of the amount of all Taxes (other than Excluded Taxes) withheld from, imposed upon
or otherwise required to be paid by the recipient with respect to the receipt or accrual of such
amounts (in this definition, the “Relevant Taxes”), such increased payment (after such
deductions) is equal to the Initial Payment otherwise required to be made; provided,
however, for the purposes of this definition, and for purposes of any payment to be made to
either Lessee or an Indemnitee on an after-tax basis, it shall be assumed that federal, state and
local income taxes are payable at the highest combined marginal federal and state statutory income
tax rate (taking into account the deductibility of state income taxes for federal income tax
purposes) applicable to corporations from time to time.

     “Alterations” is defined in Section 6.2 of the Lease.

     “Alternative Rate” means, for any period, an interest rate per annum equal to the
Prime Rate (calculated for any period on the basis of the actual number of days elapsed during such
period and a 365-days (or 366-day, if appropriate) year)).

     “Applicable Law” means all existing and future applicable laws (including
Environmental Laws), rules, regulations (including proposed, temporary and final income tax
regulations), statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of
and interpretations by, any Governmental Authority, and applicable judgments, decrees, injunctions,
writs, orders or like action of any court, arbitrator or other administrative, judicial or
quasi-judicial tribunal or agency of competent jurisdiction (including those pertaining to health,
safety or the environment (including, without limitation, wetlands) and those pertaining to the
construction, use or occupancy of the Leased Property) and any restrictive covenant or deed
restriction or easement of record affecting the Leased Property, and additionally, as to any
Person, the charter and by-laws or other organizational or governing documents of such Person, and
any law, rule or regulation, permit, approval, authorization, license or variance, order or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its
property is subject, including, without limitation, the Securities Act, the Securities Exchange
Act, Regulations T, U and X.

     “Applicable Margin”, with respect to interest on the Loan and Yield on the Equity
Investment, shall mean the applicable basis point spread set forth below corresponding to the Debt
to Adjusted EBITDA Ratio of Guarantor in effect as of the most recent Calculation Date:

- 4 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Applicable
	 	 	 	 	 	 	Applicable	 	Margin on
	 	 	 	 	 	 	Margin on	 	Equity
	Pricing	 	Debt to Adjusted	 	Notes	 	Investment
	Level	 	EBITDA Ratio	 	(basis points)	 	(basis points)
	 	I	 	 	Less than or equal to 1.00 to 1.00
	 	 	75	 	 	 	150	 
	II	 	Less than or equal to 1.50 to 1.0 but greater than 1.00 to 1.0
	 	 	82.5	 	 	 	150	 
	III	 	Less than or equal to 2.00 to 1.0 but greater than 1.50 to 1.0
	 	 	90	 	 	 	200	 
	IV	 	Less than or equal to 2.50 to 1.0 but greater than 2.00 to 1.0
	 	 	98	 	 	 	275	 
	 	V	 	 	Less than 3.00 to 1.00 but greater than 2.50 to 1.0
	 	 	110	 	 	 	300	 
	VI	 	Greater than 3.00 to 1.00
	 	 	125	 	 	 	325	 

     The Applicable Margin for interest on the Loan and Yield on the Equity Investment shall,
in each case, be determined and adjusted as of each Calculation Date. Each Applicable Margin shall
be effective from one Calculation Date until the next Calculation Date. The initial Applicable
Margin, in each case, shall be based on Pricing Level II (as shown above) and shall remain at
Pricing Level II until the first Calculation Date after the Closing Date and, thereafter, the
Pricing Level shall be determined as set forth herein.

     “Appraisal” means an Appraisal as defined in Section 3.1 of the Participation
Agreement and which complies with 12 C.F.R.¶ 323 et seq. and FIRREA.

     “Appraiser” means an MAI appraiser satisfactory to each Lender and Lessor and which
Appraiser complies with 12 C.F.R.¶ 323 et seq.

     “Appurtenant Rights” is defined in Section 1 of the Memorandum of Lease.

     “Assignment of Lease” means the Assignment of Lease dated as of the Closing Date, from
Lessor to Administrative Agent.

     “Assignment of Guaranty” means the Assignment of Guaranty, dated as of the Closing
Date, from Lessor to Administrative Agent, and consented to by Guarantor.

     “Assignment of Purchase Agreement” means the Assignment of Purchase Agreement dated as
of the Closing Date from Buyer to Lessor.

     “Awards” means any award or payment received by or payable to Lessor or Lessee on
account of any Condemnation or Significant Condemnation (less the actual costs, fees and expenses
incurred in the collection thereof, for which the Person incurring the same shall be reimbursed
from such award or payment).

     “Bankruptcy Laws” means Title 11 of the United States Code or any other Federal or
state bankruptcy, insolvency or similar law, now or hereafter in effect in the United States
relating to bankruptcy, insolvency, reorganization winding up or adjustment of debts of any Person.

     “Basic Rent” is defined in Section 2.3 of the Lease.

- 5 -

 

     “Basic Lease Term” is defined in Section 2.2 of the Lease.

     “Board of Directors”, with respect to a corporation, means either the Board of
Directors or any duly authorized committee of that Board which pursuant to the by-laws of such
corporation has the same authority as that Board as to the matter at issue.

     “Breakage Costs” means all losses, costs or expenses sustained or incurred by Lessor
or any Lender as a consequence of (i) the failure of Lessor to complete any borrowing on the
Closing Date, (ii) any payment, prepayment or conversion of any borrowing or Rent required by any
provision of the Credit Agreement, the Participation Agreement or otherwise (and whether by reason
of an Event of Default or otherwise) made or deemed to be made on a date other than a Payment Date
or other than in an amount, if any, specified as regularly scheduled payments on the Lease Balance
pursuant to the terms of the Operative Documents, (iii) any default in payment or prepayment of the
principal amount of any borrowing or Rent or any part thereof, as and when due or payable (at the
due date thereof, whether by scheduled maturity, acceleration or otherwise) including, without
limitation, all losses, costs or expenses incurred by reason of the termination in whole or in part
of any Interest Rate Swap Agreement or of any hedging arrangement entered into or the liquidation
or reemployment of deposits or other funds acquired by Lessor or a Lender to fund or maintain its
portion of such borrowing or such Rent (or its funding, or its participation in the funding
thereof) and (iv) any modification of an Interest Rate Swap Agreement because of a change in the
Pricing Level.

     “Business Day” means any day other than a Saturday, Sunday or other day on which banks
are required or authorized to be closed for business in the New York, New York, Dallas, Texas or
Boston, Massachusetts, or on which dealings or exchange operations in respect of U.S. Dollar
deposits are not conducted by and between banks in the London interbank eurodollar market.

     “Buyer” means Lennox Industries Inc., an Iowa corporation.

     “Calculation Date” means the last day of each fiscal year of Guarantor, commencing
with the fiscal year ending on December 31, 2006.

     “Capital Lease” means, at any time, a lease with respect to which the lessee is
required concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     “Casualty” means an event of damage or casualty relating to all or part of any Leased
Property that does not constitute a Significant Casualty.

     “Claims” means liabilities, obligations, damages, losses, demands, penalties, fines,
claims, actions, suits, judgments, proceedings, settlements, utility charges, costs, expenses and
disbursements (including, without limitation, reasonable legal fees and expenses) of any kind and
nature whatsoever.

     “Closing Date” means June 22, 2006, the date upon which such Land and Leased Property
is acquired by Lessor and the Loans and Equity Investment are made pursuant to the Participation
Agreement and the other Operative Documents.

- 6 -

 

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Condemnation” means any condemnation, requisition, confiscation, seizure or other
taking or sale of the use, occupancy or title to the Leased Property or any part thereof in, by or
on account of any actual eminent domain proceeding or other action by any Governmental Authority or
other Person under the power of eminent domain or otherwise or any transfer in lieu of or in
anticipation thereof. A Condemnation shall be deemed to have “occurred” on the earliest of the
dates that use, occupancy or title is taken.

     “Consolidated Indebtedness” means, as of any date of determination, all Indebtedness
and all Receivable Securitization Outstandings of Guarantor and its Subsidiaries outstanding on
such date, after eliminating all offsetting debits and credits between Guarantor and its
Subsidiaries and all other items required to be eliminated in the course of the preparation of
consolidated financial statements of Guarantor and its Subsidiaries in accordance with GAAP.

     “Consolidated Net Income” means, for any period, the net income (or net loss) of the
Guarantor and its Subsidiaries for such period, determined in accordance with GAAP, excluding:

	 	(a)	 	the proceeds of any life insurance policy;
	 
	 	(b)	 	any gain arising from (1) the sale or other disposition of any
assets (other than current assets) to the extent that the aggregate amount of
gains exceeds the aggregate amount of losses from the sale, abandonment or
other disposition of assets (other than current assets), (2) any write–up of
assets, or (3) the acquisition by the Borrower or any Subsidiary of its
outstanding securities constituting Indebtedness;
	 
	 	(c)	 	any amount representing the interest of the Guarantor or any
Subsidiary in the undistributed earnings of any other Person;
	 
	 	(d)	 	any earnings of any other Person accrued prior to the date it
becomes a Subsidiary or is merged into or consolidated with the Guarantor or a
Subsidiary and any earnings, prior to the date of acquisition, of any other
Person acquired in any other manner;
	 
	 	(e)	 	any deferred credit (or amortization of a deferred credit)
arising from the acquisition of any Person;
	 
	 	(f)	 	any non–recurring and non cash charges resulting from the
application of GAAP that requires a charge against earnings for the impairment
of goodwill; and
	 
	 	(g)	 	any non-recurring charges deducted in determining net income
for such period which relate to the discontinuance of Subsidiary operations
other than the domestic heating (with the exception of the hearth products
division) and cooling manufacturing segment and the domestic refrigeration
segment.

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     “Consolidated Subsidiaries” means Subsidiaries of Guarantor consolidated onto its
financial statements in accordance with GAAP.

     “Contractual Obligation”, as applied to any Person, means any provision of any
Securities issued by that Person or any indenture, mortgage, deed of trust, contract, undertaking,
agreement, instrument or other document to which that Person is a party or by which it or any of
its properties is bound or to which it or any of its properties is subject (including, without
limitation, any restrictive covenant affecting any of the properties of such Person).

     “Controlled Group” means all members of a controlled group of corporations and all
trades or businesses (whether or not incorporated) under common control which, together with the
Guarantor or any of its Subsidiaries, are treated as a single employer under Section 414 of the
Code.

     “Credit Agreement” means the Credit Agreement, dated as of June 22, 2006, among
Lessor, Administrative Agent and each of the Lenders.

     “Credit Parties” means, collectively, Lessee and Guarantor.

     “Debt to Adjusted EBITDA Ratio” means, as of the last day of any fiscal quarter, the
ratio of Consolidated Indebtedness outstanding as of such day to Adjusted EBITDA for the four (4)
fiscal quarters then ended.

     “Deed” means a deed, dated as of the Closing Date, from the Seller to Lessor, as
assignee of Buyer, conveying the Property, in a form reasonably acceptable to Lessor.

     “Deed of Trust” means the Deed of Trust, Security Agreement and Fixture Filing, dated
as of June 22, 2006 among Lessor, as grantor, and Administrative Agent, as beneficiary.

     “Default” means any event, condition or failure which, with notice or lapse of time or
both, would become an Event of Default.

     “Deficiency” is defined in Section 14.4(a) of the Lease.

     “EBITDA” means, for any period, the total of the following calculated for Guarantor
and the Subsidiaries without duplication on a consolidated basis in accordance with GAAP
consistently applied for such period: (a) Consolidated Net Income from operations; plus
(b) any deduction for (or less any gain from) income or franchise taxes included in determining
Consolidated Net Income; plus (c) Interest Expenses deducted in determining Consolidated
Net Income; plus (d) amortization and depreciation expense deducted in determining
Consolidated Net Income; plus (e) any non–recurring and non–cash charges resulting from
application of GAAP that requires a charge against earnings for the impairment of goodwill to the
extent not already added back in determining Consolidated Net Income; plus (f) any non–cash
expenses that arose in connection with the grant of stock options to officers, directors and
employees of the Guarantor and the Subsidiaries and were deducted in determining Consolidated Net
Income; minus (g) any cash payments made in such period related to a non-cash expense added
to Consolidated Net Income in a previous period pursuant to part (e) or part (f)
hereof or pursuant to part (f) of the definition of Consolidated Net Income.

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     “End of Term Adjustment” is defined in Section 14.4 of the Lease.

     “Environmental Audit” means a Phase I Environmental Assessment, dated no more than
ninety (90) days prior to the Closing Date, satisfying 2005 ASTM Form 1527 standards, by Terracon
Consultants, Inc. or another environmental services firm reasonably satisfactory to Lessor and the
Lenders.

     “Environmental Laws” means and include the Resource Conservation and Recovery Act of
1976, (RCRA) 42 U.S.C. §§ 6901-6987, as amended by the Hazardous and Solid Waste Amendments of
1984, the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the
Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601-9657, (CERCLA), the
Hazardous Materials Transportation Act of 1975, 49 U.S.C. §§ 1801-1812, the Toxic Substances
Control Act, 15 U.S.C. §§ 2601-2671, the Clean Air Act, 42 U.S.C. §§ 7401 et seq., the Federal
Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136 et seq., the Texas Water Code, the
Texas Health and Safety Code, and all similar federal, state and local environmental laws,
ordinances, rules, orders, statutes, decrees, judgments, injunctions, codes and regulations, and
any other federal, state or local laws, ordinances, rules, codes and regulations, and any other
federal, state or local laws, ordinances, rules, codes and regulations relating to the environment,
human health or natural resources or the regulation or control of or imposing liability or
standards of conduct concerning human health, the environment, Hazardous Materials or the clean-up
or other remediation of any Leased Property, or any part thereof, as any of the foregoing may have
been from time to time amended, supplemented or supplanted.

     “Environmental Permits” means all permits, licenses, authorizations, certificates and
approvals of Governmental Authorities required by Environmental Laws.

     “Environmental Violations” means, with respect to the Leased Property, any activity,
occurrence or condition that violates or results in non-compliance with any Environmental Law.

     “Equity Interests” means shares of the capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a trust or other
equity interests in a Person or any warrants, options or other rights entitling the holder thereof
to purchase or acquire such interests.

     “Equity Investment” is defined in Section 2.2(a) of the Participation Agreement.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time or any successor federal statute.

     “Escrow Agreement” means the Escrow Agreement dated as of June 22, 2006 among Seller,
Title Company, Lessee, Lessor, Lenders and Administrative Agent.

     “Event of Loss” means a Significant Casualty or a Significant Condemnation.

     “Excluded Payments” means (i) indemnity payments payable directly to Lessor,
Indemnitee or Lender by Lessee or Guarantor pursuant to the Lease or the Participation Agreement,
as the case may be, (ii) amounts payable directly to Lessor or Lender under the

- 9 -

 

Lease in respect of public liability insurance proceeds, and (iii) any right to enforce the
payment against Lessee of any amount described in clauses (i) or (ii).

     “Excluded Taxes” means, except as provided in the final paragraph of this definition:

     (i) Taxes and impositions imposed upon an Indemnitee (other than Taxes that are, or are
in the nature of, sales, use, value added, rental, transfer, property or ad valorem taxes
with respect to the Leased Property or any transfer thereof) that are imposed by any
Governmental Authority and that are based upon or measured by the gross or net income or
gross or net receipts of such Indemnitees (including, without limitation, any minimum taxes,
income or capital gains taxes, or taxes on, measured by, with respect to, or in the nature
of capital, net worth, excess profits or items of tax preference); provided that this clause
(i) shall not be interpreted to prevent a payment from being made on an After Tax Basis if
the payment is otherwise required to be so made; provided further that this clause (i) shall
not apply to Taxes imposed on an Indemnitee only by reason of Lessee’s activities or the
location of the Leased Property in the jurisdiction imposing such Taxes or Impositions;

     (ii) any Tax or imposition to the extent, but only to such extent, it relates to any
act, event or omission that occurs, or relates to a period, after the termination of the
Lease (but not any Tax or imposition to the extent, but only to such extent, that it relates
to any period prior to the termination of the Lease with respect to the Leased Property to
which such Tax or Imposition relates);

     (iii) any Tax or imposition for so long as, but only for so long as, it is being
contested in accordance with the provisions of Section 7.4(b) of the Participation
Agreement, provided that the foregoing shall not limit the Lessee’s obligation under Section
7.4(b) of the Participation Agreement to advance to such Indemnitee amounts with respect to
Taxes or impositions that are being contested in accordance with Section 7.4(b) of the
Participation Agreement or any expenses incurred by such Indemnitee in connection with such
contest;

     (iv) any Taxes or impositions imposed upon an Indemnitee with respect to any transfer,
sale, financing or other disposition of any interest in the Leased Property or any part
thereof, or any interest therein or any interest or obligation under the Operative Documents
or any Note or the Leased Property itself, or from any sale, assignment, transfer or other
disposition of any interest in an Indemnitee or any Affiliate thereof (other than any
transfer in connection with (1) the exercise by the Lessee of its Early Termination Option
or any termination option or other purchase of the Leased Property by the Lessee or the
exercise by Lessee of the Remarketing Obligation, (2) the occurrence of an Event of Default,
(3) a Casualty or Condemnation affecting the Leased Property or (4) any assignment,
sublease, modification or addition of or to the Leased Property by the Lessee);

     (v) any Taxes or impositions imposed on an Indemnitee to the extent such Indemnitee
actually receives a credit (or otherwise has a reduction in a liability for Taxes) in
respect thereof against Taxes that are not indemnified under the Participation

- 10 -

 

Agreement (but only to the extent such credit is not taken into account in calculating
the indemnity payment on an After Tax Basis);

     (vi) any Taxes imposed against or payable by an Indemnitee resulting from, or that
would not have been imposed but for, the gross negligence or willful misconduct of such
Indemnitee or its Affiliates;

     (vii) Taxes to the extent resulting from an Indemnitee’s failure to comply with the
provisions of Section 7.4(b) of the Participation Agreement, which failure precludes the
ability to conduct a contest pursuant to Section 7.4(b) of the Participation Agreement
(unless such failure is caused by the Lessee’s breach of its obligations);

     (viii) Taxes imposed on or with respect to or payable as a result of activities or
assets of an Indemnitee unrelated to the Transaction;

     (ix) any interest, additions to tax or penalties imposed on an Indemnitee as a result
of such Indemnitee’s or an Affiliate’s failure to file any return or other documents
provided to it pursuant to Section 7.4(d) of the Participation Agreement on a timely basis;
provided that this clause (x) shall not apply if such interest or penalties arise as a
result of a position taken (or requested to be taken) by the Lessee in a contest controlled
by the Lessee under Section 7.4(b) of the Participation Agreement;

     (x) Taxes imposed on or with respect to or payable by an Indemnitee resulting directly
from, or that would not have been imposed but for the existence of, any Lessor Lien, unless
caused by acts or omissions of Lessee or Guarantor;

     (xi) any withholding taxes which would not have been imposed but for a failure of any
Indemnitee to comply with subsection 7.4(d) of the Participation Agreement;

     (xii) Taxes imposed by any taxing authority outside the United States; and

     (xiii) franchise taxes based upon gross or net income, except those, if any, imposed by
taxing authorities in Texas upon an Indemnitee arising from its participation in the
Transaction.

     Notwithstanding the foregoing, Taxes or increases of Taxes imposed on any Indemnitee will not
constitute Excluded Taxes by reason of the preceding clauses (i), (ii), (iv) or (xiii) (but may
constitute Excluded Taxes by reason of other clauses listed above) except to the extent that such
Taxes or increases in Taxes would have been incurred (and would not been offset by any resulting
decrease in Taxes realized by such Indemnitee) if, in lieu of the Transaction, the Lessor and the
Lender had advanced funds to the Lessee in the form of a loan secured by the Leased Property in an
amount equal to the Lease Balance, with debt service for such loan equal to the Basic Rent payable
on each Payment Date and a principal balance at the maturity of such loan in an amount equal to the
then outstanding amount of the Loans and Equity Investment at the end of the Basic Lease Term.

- 11 -

 

     “Existing Lennox Leases” means the following leases, each of which covers space in the
Improvements and was executed before Lessor acquired the Land and the Improvements: (i) Lease,
dated January 15, 1998, between AOC Development II, L.L.C. and Guarantor; and (ii) Storage Space
Lease, dated January 15, 1998, between AOC Development II, L.L.C. and Guarantor.

     “Existing Space Leases” means the following leases, each of which covers space in the
Improvements and was executed before Lessor acquired the Land and the Improvements: (i) One Lake
Park Lease Agreement, dated March 27, 2002, between Seller and Forum Financial Services, Inc., as
amended; (ii) One Lake Park Lease Agreement, dated November 9, 2005, between Seller and Glow
Networks, Inc., as amended; (iii) One Lake Park Lease Agreement dated May 17, 2000, between AOC
Development II, L.L.C. and Datatrac Information Services, Inc., as amended; (iv) One Lake Park
Lease Agreement, dated March 29, 2000, between AOC Development II, L.L.C. and Philips
Semiconductors, Inc., as amended; (v) One Lake Park Lease Agreement, dated March 4, 2003, between
Seller and Vining Sparks IBG, L.P., as amended; (vi) One Lake Park Lease Agreement, dated September
1, 2005, between Seller and Axes Technology, Inc., as amended; and (vii) the Existing Lennox
Leases.

     “Fair Market Value” means, with respect to the Leased Property or any portion thereof,
the fair market sales value as determined by an independent appraiser chosen by Lessor or, so long
as the Loan is outstanding, Lender that would be obtained in an arm’s-length transaction between an
informed and willing buyer (other than a lessee currently in possession) and an informed and
willing seller, under no compulsion, respectively, to buy or sell and neither of which is related
to Lessor or Lessee, for the purchase of the Leased Property. Such fair market sales value shall be
calculated as the value for the use of the Leased Property, assuming the Leased Property is in the
condition and repair required to be maintained by the terms of this Lease (unless such fair market
sales value is being determined for purposes of Section 13.1 of the Lease and except as otherwise
specifically provided in the Lease or the Participation Agreement, in which case this assumption
shall not be made).

     “FIN 46” means FASB Interpretation No. 46, Consolidation of Variable Interest
Entities, as revised.

     “FIRREA” means Title XI of the Financial Institutions Reform, Recovery and Enforcement
Act of 1989 and 12 C.F.R. Section 34, each as amended and revised from time to time.

     “Fiscal Year” means the fiscal year of Guarantor and its Subsidiaries, which shall be
the twelve (12) months ending on December 31 in each year.

     “Fixtures” is defined in Section 1 of the Memorandum of Lease.

     “GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time.

     “Governmental Action” means all permits, authorizations, registrations, consents,
approvals, waivers, exceptions, variances, orders, judgments, decrees, licenses, exemptions,
publications, filings, notices to and declarations of or with, or required by, any Governmental

- 12 -

 

Authority, or required by any Applicable Law and shall include, without limitation, all
citings, environmental and operating permits and licenses that are required for the use, occupancy,
zoning and operation of any Leased Property.

     “Governmental Authority” means any foreign or domestic federal, state, county,
municipal or other governmental or regulatory authority, agency, board, body, commission,
instrumentality, court or any political subdivision thereof.

     “Guarantor” means Lennox International Inc., a Delaware corporation.

     “Guarantor Document” is defined in Section 5.3(a) of the Participation Agreement.

     “Guaranteed Obligations” is defined in Section 1 of the Guaranty.

     “Guaranty” means the Guaranty, dated as of June 22, 2006 by Guarantor in favor of
Lessor, the Lenders, Administrative Agent and the Indemnitees.

     “Guaranty Beneficiary” and “Guaranty Beneficiaries” are defined in the initial
paragraph of the Guaranty.

     “Hazardous Material” means any substance, waste or material which is toxic, explosive,
corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous,
including petroleum, crude oil or any fraction thereof, petroleum derivatives, by products and
other hydrocarbons, or which is or becomes regulated by any Governmental Authority, including any
agency, department, commission, board or instrumentality of the United States, any jurisdiction in
which a Leased Property is located or any political subdivision thereof and also including, without
limitation, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls (“PCBs”)
and radon gas.

     “Impositions” means any and all liabilities, losses, expenses and costs of any kind
whatsoever for fees, taxes, levies, imposts, duties, charges, assessments or withholdings of any
nature whatsoever and imposed by a Governmental Authority (a “Tax” or “Taxes”)
(including (i) real property taxes and personal property taxes on any property covered by the Lease
that is classified by Governmental Authorities as personal property, and real estate or ad valorem
taxes in the nature of property taxes; (ii) sales taxes, use taxes and other similar taxes; (iii)
any excise taxes; (iv) real estate transfer taxes, conveyance taxes, mortgage taxes, intangible
taxes, stamp taxes and documentary recording taxes and fees; (v) taxes that are or are in the
nature of franchise, income, value added, gross receipts, privilege and doing business taxes,
license and registration fees; and (vi) assessments on the Leased Property, including all
assessments for public improvements or benefits, whether or not such improvements are commenced or
completed within the Term), and in each case all interest, additions to tax and penalties thereon,
which at any time may be levied, assessed or imposed by a Governmental Authority upon or with
respect to (a) any Indemnitee, the Leased Property or any part thereof or interest therein, or the
Lessee or any sublessee or user of the Leased Property; (b) the financing, refinancing, demolition,
construction, substitution, subleasing, assignment, control, condition, servicing, maintenance,
repair, ownership, possession, purchase, rental, lease, activity conducted on, delivery, insuring,
use, operation, improvement, transfer, return or other disposition of the Leased Property or any
part thereof or interest therein; (c) the Notes or the Equity Investment or

- 13 -

 

other indebtedness with respect to the Leased Property or any part thereof or interest therein
or transfer thereof; (d) the rentals, receipts or earnings arising from the Leased Property or any
part thereof or interest therein; (e) the Operative Documents or any payment made or accrued
pursuant thereto; (f) the income or other proceeds received with respect to the Leased Property or
any part thereof or interest therein upon the sale or disposition thereof; (g) any contract
relating to the construction, acquisition or delivery of the Leased Property or any part thereof or
interest therein; (h) the issuance of the Notes and the Equity Investment; or (i) otherwise in
connection with the Transaction.

     Notwithstanding anything in the first paragraph of this definition the term “Impositions”
shall not mean or include Excluded Taxes.

     “Improvements” is defined in Section 1 of the Memorandum of Lease.

     “Indemnitee” means each of the Administrative Agent, each Lender, Lessor, and their
respective Affiliates, successors, permitted assigns, permitted transferees, employees, officers,
directors and agents and in both their trust and individual capacities, as applicable;
provided, however, that in no event shall Lessee or Guarantor be an Indemnitee.

     “Indemnitee Group” means the respective Affiliates, employees, officers, directors and
agents of each Indemnitee, as applicable; provided, however, that in no event shall
Lessee or Guarantor be a member of the Indemnitee Group.

     “Insurance Subsidiary” means Lake Park Insurance, Ltd., a Bermuda corporation.

     “Insurance Requirements” means all requirements, duties and obligations necessary
under the insurance policies which are required under Section 8 of the Lease in order to maintain
such policies in full force and effect as against the insured party named therein.

     “Interest Expenses” means, for any period and any Person, the sum of the following
calculated on a consolidated basis without duplication in accordance with GAAP: (a) total cash
interest expense (including the cash interest portion of Capital Leases but excluding interest
expense derived from amortization of fees); plus (b) that portion of the difference between
the face amount of accounts receivables sold in connection with securitization transactions and the
purchase price paid in connection therewith that is representative of the interest expense that
would have been paid if such transaction were accounted for as a financing (as calculated in a
manner acceptable to the Administrative Agent); plus (c) that portion of amounts paid under
Synthetic Lease Obligations that is representative of the interest expense that would have been
paid if such transaction were accounted for as a Capital Lease or otherwise as a financing (as
calculated in a manner acceptable to the Administrative Agent).

     “Interest Rate” is defined in Section 2.3(b) of the Participation Agreement.

     “Interest Rate Swap Agreement” means each interest rate swap agreement entered into by
Lessor or any Lender in connection with the Transaction in order to convert payments of Rent that
are based on a fixed rate to payments of interest and yield based upon variable interest rates.

     “Land” means the land described in Exhibit A to the Lease.

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     “Lease” means the Lease Agreement, dated as of June 22, 2006, between Lessor and
Lessee.

     “Lease Balance” means, as of any date of determination and subject to Section 2.5(c)
of the Participation Agreement, an amount equal to the aggregate sum of the outstanding principal
amount of the Equity Investment and the Loans. The Lease Balance as of the Closing Date equals
$41,202,994.25.

     “Lease Default” means a Default under the Lease which, with the giving of notice or
passage of time or both, shall constitute a Lease Event of Default.

     “Lease Event of Default” means an Event of Default as defined in Article XII of the
Lease.

     “Leased Property” is defined in Section 2.1 of the Lease.

     “Lender” means MHCB (USA) Leasing and Finance Corporation, a New York corporation,
together with its successors and assigns and any other party that becomes a Lender under the Credit
Agreement and, collectively, the “Lenders”.

     “Lender Operative Document” means each document relevant to the Transaction to which
Lender is a party.

     “Lennox Revolver” means the Second Amended and Restated Revolving Credit Facility
Agreement dated as of July 8, 2005 among Guarantor, as borrower, Bank of America, N.A., as
administrative agent J.P. Morgan Chase Bank, N.A., as syndication agent, Banc of America Securities
LLC and J.P. Morgan Securities, Inc., as joint lead arrangers, and the lenders party thereto.

     “Lessee” means Lennox Procurement Company Inc., a Delaware corporation.

     “Lessee Obligation” means an amount equal to the Lease Balance; plus all other amounts
owing to the Lessor, Administrative Agent and the Lenders by Lessee or Guarantor under the
Operative Documents including accrued and unpaid Basic Rent required to pay interest on the Loans
and Yield on the Equity Investment and all unpaid fees owing to the Lessor, Administrative Agent
and the Lenders under the Operative Documents, minus the Lessor Residual Risk Amount.

     “Lessor” means BTMU Capital Corporation, a Delaware corporation.

     “Lessor Collateral” is defined in the Deed of Trust.

     “Lessor Liens” means Liens on or against any Leased Property, the Lease or any payment
of Rent (a) which result from any act or omission of, or any Claim against, Lessor unrelated to the
transactions contemplated by the Operative Documents or (b) which result from any Tax owed by
Lessor, except any Tax for which Lessee is obligated to indemnify.

     “Lessor Remarketing Period” is defined in Section 4.3 of the Credit Agreement.

- 15 -

 

     “Lessor Residual Risk Amount” means, as of any date of determination, an amount equal
to the product of 18.032424% and the Lease Balance as of such date of determination.

     “LIBOR Rate” means for each Rent Period, a per annum interest rate equal to a
fraction, expressed as a percentage, the numerator of which is equal to a rate per annum determined
by the Administrative Agent to be the offered rate for deposits in Dollars with a term comparable
to such Rent Period that appears on Bloomberg Page “BBAM 1” as of approximately 1l:00 a.m., London
time, two Business Days prior to the beginning of such Rent Period and the denominator of which is
equal to 100% minus the LIBOR Reserve Percentage, if any, provided, however, that if at any
time for any reason such offered rate does not appear on Bloomberg Page “BBAM 1,” “LIBOR Rate”
shall mean for the applicable Rent Period, a per annum interest rate equal to a fraction, expressed
as a percentage, the numerator of which is equal to the rate per annum equal to the average of the
rates at which the Administrative Agent is offered deposits in Dollars at or about 11:00 a.m.,
London time, two Business Days prior to the beginning of such Rent Period in the London interbank
market for delivery on the first day of such Rent Period for the number of days comprised therein
and the denominator of which is equal to 100% minus the LIBOR Reserve Percentage, if any;
provided, further, that if no such offers or quotes are generally available for such
amount, then Administrative Agent shall be entitled to determine the LIBOR Rate from another
recognized service or interbank quotation, or by estimating in its reasonable judgment the per
annum rate (as described above) that would be applicable if such quote or offers were generally
available.

     “LIBOR Reserve Percentage” means for any day, the aggregate (without duplication) of
the maximum rates (expressed as a decimal) of reserve requirements in effect on such day (including
without limitation basic, supplemental, marginal and emergency reserves under any regulations of
the Board or other Governmental Authority having jurisdiction with respect thereto) dealing with
reserve requirements prescribed on eurocurrency funding (currently referred to as “Eurocurrency
liabilities” in Regulation D) maintained by a member bank of the Federal Reserve System.

     “Lien” means any mortgage, deed of trust, pledge, security interest, encumbrance,
lien, easement, servitude or charge of any kind, including, without limitation, any irrevocable
license, conditional sale or other title retention agreement, any lease in the nature thereof, or
any other right of or arrangement with any creditor to have its claim satisfied out of any
specified property or asset with the proceeds therefrom prior to the satisfaction of the claims of
the general creditors of the owner thereof (including, without limitation, the interest of a vendor
or lessor under any conditional sale, Capitalized Lease or other title retention agreement),
whether or not filed or recorded, or the filing of, or agreement to execute as “debtor”,
any financing or continuation statement under the Uniform Commercial Code of any jurisdiction or
any federal, state or local lien imposed pursuant to any Environmental Law.

     “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person (including in the case
of Equity Interests, stockholder agreements, voting trust agreements and all similar arrangements).

- 16 -

 

     “Limited Lessee Risk Conditions” is defined in Section 14.4 of the Lease.

     “Limiting Event” is defined in Section 13.3 of the Lease.

     “Limiting Event Obligation” means the payment and performance obligations set forth in
Section 13.3 of the Lease.

     “Loan” is defined in Section 2.2 of the Participation Agreement.

     “Loan Default” means any event, condition or failure which, with notice or lapse of
time or both, would become a Loan Event of Default.

     “Loan Event of Default” means any of the events specified in Section 5.1 of the Credit
Agreement, provided that any requirement for the giving of notice, the lapse of time, or
both, or any other condition, event or act has been satisfied.

     “Material Subsidiary” means any subsidiary of Guarantor (except LPAC Corp., LPAC Corp.
II and the Insurance Subsidiary) the book value (determined in accordance with GAAP) of whose total
assets equals or exceeds ten percent (10%) of the book value (determined in accordance with GAAP)
of the consolidated total assets of Borrower and all Subsidiaries as determined as of the last day
of each fiscal quarter.

     “Material Adverse Effect” means a material adverse effect on (i) the business,
Property, condition (financial or otherwise), results of operations, or prospects of Guarantor and
its Subsidiaries taken as a whole, (ii) the ability of Guarantor or Lessee to perform their
respective obligations under the respective Operative Documents to which each is a party, or (iii)
the validity or enforceability of any of the Operative Documents or the rights or remedies of
Administrative Agent, Lessor or the Lenders thereunder.

     “Material Environmental Violation” is defined in Section 10.3 of the Lease.

     “Maximum Rate” means the maximum interest rate permitted by Applicable Law.

     “Memorandum of Lease” means the Memorandum of Lease, Deed of Trust and Security
Agreement, dated as of June 22, 2006 between Lessor and Lessee.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Multiemployer Plan” means at any time an employee pension benefit plan within the
meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or
accruing an obligation to make contributions or has within the preceding five plan years made
contributions, including for these purposes any Person which ceased to be a member of the ERISA
Group during such five year period.

     “Net Proceeds” is defined in Section 14.4(c) of the Lease.

     “Note” or “Notes” means the Notes issued by the Lessor pursuant to and in the
form attached to the Credit Agreement.

- 17 -

 

     “Officer’s Certificate” of a Person means a certificate signed by the Chairman of the
Board or the President or any Executive Vice President or any Senior Vice President or any other
Vice President of such Person signing with the Treasurer or any Assistant Treasurer or the
Controller or any Assistant Controller or the Secretary or any Assistant Secretary of the such
Person, or by any Vice President who is also Controller or Treasurer signing alone.

     “Operative Documents” means the Participation Agreement, the Guaranty, the Deed, the
Purchase Agreement, the Lease, the Memorandum of Lease, the Notes, the Credit Agreement, the
Assignment of Lease, the Assignment of Guaranty, the Mortgage, the Assignment of Purchase
Agreement, the Existing Space Leases, the Escrow Agreement, the Interest Rate Swap Agreements, the
Subordination Agreements, the Purchase Agreement Documents and each other document executed and
delivered by either Lessee or Guarantor in connection with the transactions contemplated by the
Participation Agreement including any funding notice or request.

     “Overdue Rate” means the lesser of (a) the highest interest rate permitted by
Applicable Law and (b) an interest rate per annum (calculated for any period on the basis of the
actual number of days elapsed during such period and a 365-day (or 366- day, if appropriate) year)
equal to 2.0% above the Alternative Rate in effect from time to time.

     “Participation Agreement” means the Participation Agreement, dated as of June 22, 2006
among Lessee, Guarantor, Lessor, the Lenders and Administrative Agent.

     “Participation Fee” means a non-refundable fee payable to Lender on the Closing Date
in an amount equal to $49,138.93.

     “Payment Date” means (a) the 22nd day of each third succeeding calendar
month beginning with September 22, 2006, and if such day is not a Business Day, the next succeeding
Business Day unless the result would be that the Payment Date would be in the next succeeding
calendar month, in which case such payment date shall be the next preceding Business Day and (b) in
any case, the Termination Date.

     “Payoff Option” is defined in Section 14.1(e) of the Lease.

     “PBGC” means the Pension Benefit Guaranty Corporation, and any successor thereto.

     “Permitted Allocation” is defined in Section 6.2(b) of the Lease.

     “Permitted Investments” means any one or more of the following:

	 	(a)	 	direct obligations of, or obligations guaranteed as to timely
payment of principal and interest by, the United States of America (“USA”) or
any agency or instrumentality thereof provided that such obligations are backed
by the full faith and credit of the USA;
	 
	 	(b)	 	repurchase obligations with respect to any security described
in clause (a) above entered into with a depository institution or trust company
(acting as principal) whose long-term unsecured debt obligations have

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	 	 	 	received one of the two highest ratings available for such securities by at
least two of the Rating Agencies;
	 
	 	(c)	 	units of taxable money market funds which funds are regulated
investment companies, seek to maintain a constant net asset value per share and
invest solely in obligations backed by the full faith and credit of the United
States of America, and have been designated in writing by at least two of the
Rating Agencies in one of the two highest credit rating categories as Permitted
Investments with respect to this definition; provided in each case, that no
such investment shall be purchased at a premium to its face value (disregarding
interest accrued to the date of acquisition) and that no such investment shall
have a maturity later than the earlier of (x) the Business Day before the
proceeds of such investment are anticipated to be needed pursuant to Section
5.1 or otherwise, or (y) one year from the date of acquisition;
	 
	 	(d)	 	commercial paper which is (i) rated at least “AA-1” by S&P
Ratings Service and, if rated by Fitch Inc., “AF-1”, (ii) issued by a
corporation or company (other than any Mortgagor or affiliate thereof) and
(iii) in certificated form; and
	 
	 	(e)	 	investments in money market funds rated at least AAm@ or AAm-G@
or its equivalent from any Rating Agency (provided that, for purposes of this
definition, such investments may include money market funds sponsored by
Mortgagee making such investment that have the required credit rating from any
Rating Agency).

     “Permitted Liens” means the following with respect to the Leased Property: (a) the
respective rights and interests of Lessee, Lessor, and Administrative Agent, as provided in the
Operative Documents, (b) Liens for Taxes not yet due or payable or being contested in good faith
pursuant to the second paragraph of Section 3.8 of the Lease, (c) materialmen’s,
mechanics’, workers’, repairmen’s, employees’ or other like Liens arising after the related Closing
Date in the ordinary course of business for amounts either not yet due or being contested in good
faith in accordance with such paragraph of Section 3.8 of the Lease, (d) Liens arising
after such Closing Date out of judgments or awards with respect to which at the time an appeal or
proceeding for review is being prosecuted in good faith, so long as the enforcement thereof has
been stayed pending such appeal or review and the entire amount of the award or judgment is bonded
by sureties acceptable to each Lender and Lessor, (e) easements, rights of way, reservations,
servitudes and rights of others against the Land which are listed on Schedule B to the Title
Policy, (f) the Existing Space Leases and (g) assignments, leases and subleases expressly permitted
by the Operative Documents or consented to by Administrative Agent and the Lessor.

     Notwithstanding the inclusion of the Mortgage or Assignment of Lease that secure the Loan as
Permitted Liens, the Liens against the Leased Property created in favor of Lender thereunder to
secure the Loan will be subject and subordinate to the Lessee’s rights in and to the Leased
Property pursuant to the Lease (including its options to purchase the Leased Property).

- 19 -

 

     “Permitted Modification Period” is defined in Section 10.1(e) of the Lease.

     “Person” means any natural person, corporation, firm, joint venture, partnership,
limited liability company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality thereof.

     “Plan” means at any time an employee pension benefit plan (other than a Multiemployer
Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Code and either (i) is maintained, or contributed to, by any member of the ERISA
Group for employees of any member of the ERISA Group or (ii) has at any time within the preceding
five years been maintained, or contributed to, by any Person which was at such time a member of the
ERISA Group for employees of any Person which was at such time a member of the ERISA Group.

     “Pricing Level” means, as of any determination date, the applicable “pricing level” as
set forth in the definition of Applicable Margin that relates to Guarantor’s Debt to Adjusted
EBITDA Ratio as of such determination date.

     “Prime Rate” means the rate per annum announced from time to time in New York City by
Mizuho Corporate Bank as its prime rate, changing as and when said prime rate shall change.

     “Property” means, collectively, the Land, the Improvements, the Fixtures and the
Appurtenant Rights.

     “Purchase Agreement” means the Purchase and Sale Agreement and Joint Escrow
Instructions, dated as of March 30, 2006 with respect to the Property between Seller and Buyer and
Joint Escrow Instructions.

     “Purchase Agreement Documents” means collectively the Third Amendment to and
Assignment and Assumption of Purchase and Sale Agreement and Joint Escrow Instructions, the
Assignment and Assumption of Leases between Seller and Lessor and the General Assignment and Bill
of Sale.

     “Purchase Amount” means, as of any date of determination, the sum of (a) the Lease
Balance, plus (b) other sums then due and payable under the Operative Documents by Lessee,
including without limitation all accrued interest and Yield, Supplemental Rent, and any amounts due
and owing pursuant to Article VII of the Participation Agreement.

     “Purchase Option” is defined in Section 14.1 of the Lease.

     “Rating Agency” means any of S&P, Moody’s or another nationally recognized rating
agency acceptable to Lender.

     “Receivable Securitization” means, with respect to a Person, a transaction or group of
transactions typically referred to as a securitization in which the Person sells its accounts
receivable in a transaction accounted for as a true sale to a special purpose bankruptcy remote
entity that obtains debt financing to finance the purchase price.

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     “Receivable Securitization Outstanding” means, with respect to a Person, the aggregate
amount outstanding (i.e., advanced as the purchase price and not repaid from collections) under all
Receivable Securitization transactions of such Person that is representative of the principal
amount that would be outstanding if such transaction were accounted for a s a financing.

     “Regulations” means the income tax regulations promulgated from time to time under and
pursuant to the Code.

     “Regulatory Change” means (I) with respect to Lessor or any Lender, any change in (or
the adoption, implementation, change in phase-in or commencement of effectiveness of) any (A)
United States federal or state law or foreign law applicable to Lessor or any Lender; (B)
regulation, interpretation, directive, requirement or request (whether or not having the force of
law) applicable to any such party of any court, Governmental Authority charged with the
interpretation of administration of any law referred to in clause (I)(A); or (C) generally accepted
accounting principles or regulatory accounting principles applicable to any such party and
affecting the application to Lessor or any Lender or any law, regulation, interpretation,
directive, requirement or request referred to in clause (I)(A) or (I)(B) above; or (II) any change
in the application to Lessor or any Lender of any existing law, regulation, interpretation,
directive, requirement, request or accounting principles referred to in clause (I)(A), (I)(B) or
(I)(C) above.

     “Release” means the release, deposit, disposal or leak of any Hazardous Material into
or upon or under any land or water or air, or otherwise into the environment, including, without
limitation, by means of burial, disposal, discharge, emission, injection, spillage, leakage,
seepage, leaching, dumping, pumping, pouring, escaping, emptying, placement and the like.

     “Remarketing Option” is defined in Section 14.2(a) of the Lease.

     “Remarketing Period” is defined in Section 14.2(a) of the Lease.

     “Remediation” is defined in Section 10.2 of the Lease.

     “Rent” means Basic Rent and Supplemental Rent, collectively.

     “Rent Period” means initially the period commencing on the Closing Date and ending on
day immediately preceding the first Payment Date, and thereafter each period commencing on a
Payment Date and ending on day immediately preceding the next following Payment Date.

     “Reportable Event” means a reportable event as defined in Section 4043 of ERISA and
the regulations issued under such section, with respect to a Plan, excluding, however, such events
as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it
be notified within 30 days of the occurrence of such event, provided, however, that a failure to
meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA shall be a
Reportable Event regardless of the issuance of any such waiver of the notice requirement in
accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

     “Required Alteration” is defined in Section 6.2(a) of the Lease.

- 21 -

 

     “Required Lenders” means the Lenders holding 51% or more of the outstanding principal
amount of the Notes.

     “Responsible Officer” means the Chairman or Vice Chairman of the Board of Directors,
the Chairman or Vice Chairman of the Executive Committee of the Board of Directors, the President,
any Senior Vice President or Executive Vice President, any Vice President, the Secretary, any
Assistant Secretary, the Treasurer, or any Assistant Treasurer.

     “Return Option” is defined in Section 14.2(c) of the Lease.

     “Return Period” is defined in Section 14.2(c) of the Lease.

     “Revolver Administrative Agent” mans Bank of America, N.A., in its capacity as
administrative agent pursuant to the Lennox Revolver; provided, that after any termination or
expiration of the Lennox Revolver, references to the Revolver Administrative Agent will be deemed
to mean the Administrative Agent.

     “S&P” means Standard & Poor’s Rating Services, a division of the McGraw Hill
Companies, Inc.

     “Scheduled Termination Date” is defined in Section 2.2 of the Lease.

     “SEC” means the United States Securities and Exchange Commission.

     “Securities” means any stock, shares, voting trust certificates, bonds, debentures,
notes or other evidences of indebtedness, secured or unsecured, convertible, subordinated or
otherwise, or in general any instruments commonly known as “securities”, or any
certificates of interest, shares, or participations in temporary or interim certificates for the
purchase or acquisition of, or any right to subscribe to, purchase or acquire any of the foregoing.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Seller” means One Lake Park, L.L.C., a Delaware limited liability company.

     “Significant Casualty” means a Casualty with respect to the Leased Property that in
the reasonable good faith judgment of Lessee (as evidenced by a certificate of a Responsible
Officer of Lessee) either (a) renders the Leased Property unsuitable for continued use as a
commercial property of the type of the Leased Property immediately prior to such Casualty, or (b)
is so substantial in nature that restoration of the Leased Property to substantially its condition
as existed immediately prior to such Casualty would be impracticable or impossible.

     “Significant Condemnation” means a Condemnation with respect to the Leased Property
that in the reasonable good faith judgment of Lessee (as evidenced by a certificate of a
Responsible Officer of Lessee) either (a) renders the Leased Property unsuitable for continued use
as a commercial property of the type of the Leased Property immediately prior to such Condemnation,
or (b) is so substantial in nature that restoration of the Leased Property to

- 22 -

 

substantially its condition as existed immediately prior to such Casualty would be
impracticable or impossible.

     “Significant Environmental Event” means an Environmental Violation the cost of
Remediation of which, in the reasonable judgment of an independent environmental legal counsel
would exceed $25,000,000.

     “Single Employer Plan” means a Plan maintained by the Company or any member of the
Controlled Group for employees of the Company or any member of the Controlled Group.

     “Solvent” shall mean, with respect to any Person, that:

     (I) the assets of such Person, at a fair valuation, exceed the total liabilities
(including contingent, subordinated, unmatured and unliquidated liabilities) of such Person;

     (II) based on current expectations, which are based on underlying assumptions which
provide a reasonable basis for the projections and which reflect such Person’s judgment
based on present circumstances of the most likely set of conditions and such Person’s most
likely course of action for the period projected, such Person believes it has sufficient
cash flow to enable it to pay its debts as they mature;

     (III) such Person does not have an unreasonably small capital with which to engage in
its anticipated business; and

     (IV) the obligations of such Person, if any, are not in default as to principal and
interest or any other payment.

     For purposes of this definition, the “fair valuation” of the assets of any Person
shall be determined on the basis of the amount which may be realized within a reasonable
time, either through collection or sale of such assets at the regular market value, conceiving the
latter as the amount which could be obtained for the property in question within such period by a
capable and diligent businessman from an interested buyer who is willing to purchase under ordinary
selling conditions.

     “Structuring Fee” means a non-refundable fee payable to Lessor on the Closing Date in
the amount set forth in a separate writing.

     “Subject Indebtedness” means (i) Indebtedness that is outstanding in an aggregate
principal amount the Dollar Equivalent of which is at least $25,000,000; or (ii) any Receivable
Securitization in respect of which the Receivable Securitization Outstanding is at least
$25,000,000.

     “Subordination Agreement” means, collectively, the Subordination, Non-Disturbance and
Attornment Agreement, if any, entered into by and among Lessor, Administrative Agent, Lessee and
each of the tenants under the Existing Space Leases (other than Lennox).

- 23 -

 

     “Subsidiary” means, as to any Person, any corporation, association or other business
entity in which such Person or one or more of its Subsidiaries or such Person and one or more of
its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons
performing similar functions) of such entity, and any partnership or joint venture if more than a
50% interest in the profits or capital thereof is owned by such Person or one or more of its
Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and
does ordinarily take major business actions without the prior approval of such Person or one or
more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Guarantor.

     “Supplemental Rent” means any and all amounts, liabilities and obligations other than
Basic Rent which Lessee assumes or agrees or is otherwise obligated to pay under this Lease or any
other Operative Document (whether or not designated as Supplemental Rent) to the Lessor, Lender,
any other party or to the Person entitled thereto, including, without limitation, amounts under
Article XVI of the Lease, indemnities and damages for breach of any covenants, representations,
warranties or agreements, and all overdue or late payment charges in respect of any installment of
Basic Rent.

     “Surrender Obligation” is defined in Section 14.7 of each Lease.

     “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Guarantor or the Subsidiaries shall be
a Swap Agreement.

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic or tax retention lease, or (b) an agreement for the use or possession of
property creating obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of
such Person (without regard to accounting treatment).

     “Tax” and “Taxes” shall have the meaning set forth in the definition of
Impositions.

     “Termination Date” is defined in Section 2.2 of the Lease.

     “Termination Notice” is defined in Section 14.1(a) of the Lease.

     “Title Insurance Company” means the company that has or will issue the title policies
with respect to the Leased Property, which company shall be reasonably acceptable to Lessor and the
Lender.

     “Title Policy” is defined in Section 3.1 of the Participation Agreement.

- 24 -

 

     “Transaction” means all the transactions and activities referred to in or contemplated
by the Operative Documents, including, without limitation, the purchase, ownership, financing,
leasing, operation, management, return, disposition or sale of the Leased Property.

     “Transfer Office” is defined in Section 2.5 of the Credit Agreement.

     “UCC” means the Uniform Commercial Code of any particular state, as in effect from
time to time.

     “Unfunded Liabilities” means the amount (if any) by which the present value of all
vested and unvested accrued benefits under all Single Employer Plans exceeds the fair market value
of all such Plan assets allocable to such benefits, all determined as of the then most recent
valuation date for such Plans using PBGC actuarial assumptions for single employer plan
terminations.

     “Wholly–Owned Subsidiary” or “Wholly-Owned” when used in reference to a
Subsidiary, means, at any time, any Subsidiary, one hundred percent (100%) of all of the Equity
Interests of (except directors’ qualifying shares), and voting interests in, which are owned by any
one or more of Guarantor and Guarantor’s other Wholly–Owned Subsidiaries at such time.

     “Yield” is defined in Section 2.3 of the Participation Agreement.

- 25 -

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