Document:

exv10w2

 

Exhibit 10.2

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

     THIS SECOND AMENDED AND RESTATED PLEDGE AGREEMENT (the “Agreement”) dated as of July
8, 2005 is between LENNOX INTERNATIONAL INC. (the “Company” and a “Pledgor”), and
BANK OF AMERICA, N.A., as collateral agent for itself and the other Creditors (as defined in the
Intercreditor Agreement referred to below) (the “Secured Party”).

RECITALS:

     A. The Company has entered into that certain Second Amended and Restated Intercreditor
Agreement dated as of July 8, 2005 with certain of the Company’s other subsidiaries and
noteholders, other lenders party thereto, the administrative agent for such lenders and the Secured
Party (such Intercreditor Agreement, as it may hereafter be amended, restated, supplemented or
otherwise modified from time to time, being hereinafter referred to as the “Intercreditor
Agreement”, and capitalized terms not otherwise defined herein shall have the same meaning as
set forth in the Intercreditor Agreement).

     B. The Company, Lennox Global Ltd. and the Secured Party previously executed that certain
Amended and Restated Pledge Agreement dated September 11, 2003
(the “Prior Pledge
Agreement”), which amended and restated that certain Pledge Agreement dated August 15, 2001
(the “Original Pledge Agreement”). The Company and the Secured Party desire to amend and
restate the Prior Pledge Agreement.

     NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each of the undersigned parties and any
Subsidiary hereafter added as a “Pledgor” hereto pursuant to a Subsidiary Pledgor Joinder Agreement
in substantially the form of Schedule 5 annexed hereto (each a “Pledgor” and
collectively the “Pledgors”) agree as follows:

ARTICLE 1.

Security Interest and Pledge

     A. Security Interest and Pledge. As collateral security for the prompt payment in
full when due of all Obligations, each Pledgor hereby pledges and grants to Secured Party a first
priority security interest in all of such Pledgor’s right, title and interest in and to the
following property (such property being hereinafter sometimes called the “Collateral”):

          1. all the capital stock, other equity securities, and all other ownership interests in, the
Subsidiaries described on Schedule 1 hereto under such Pledgor’s name and all other of its
directly owned Material Subsidiaries that are organized under the laws of the United States of
America or a jurisdiction therein and are hereafter created or acquired and owned by such Pledgor,
whether any of the foregoing are now owned or hereafter acquired, including the capital stock or
other ownership interests described on Schedule 1 under such Pledgor’s name; and

          2. the capital stock, other equity securities and all other ownership interests specifically
described under such Pledgor’s name on Schedule 2 (the issuers of such stock or other
interest and any other Subsidiary, besides Lake Park Insurance Ltd., organized under the laws of a
jurisdiction outside the United States of America, herein the “Foreign Subsidiaries”) and
so much of such Pledgor’s right, title and interest in any other capital stock or other ownership
interests issued by the Foreign Subsidiaries described on Schedule 2 or any other Foreign
Subsidiary that is a Material Subsidiary and is hereafter created or acquired, as is necessary so
that not more than and not less than

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 1

 

 

sixty–five percent (65%) of the capital stock or other ownership interest in each such Foreign
Subsidiary is pledged in total hereunder; and

          3. all proceeds, distributions, dividends, stock dividends, securities, payment intangibles
and other property, rights, interests and other general intangibles that it receives or is at any
time entitled to receive on account of the property described in the preceding clauses (a) and
(b).

However, the Obligations secured by this Agreement shall be limited, with respect to any
Pledgor that is a Subsidiary, to an aggregate amount equal to the largest amount that would not
render such Pledgor’s obligations hereunder and under the other Financing Documents subject to
avoidance under Section 544 or 548 of the United States Bankruptcy Code or under any
applicable state law relating to fraudulent transfers or conveyances.

II.

Representations and Warranties

     Each Pledgor represents and warrants to Secured Party that:

     A. Title. It owns, and with respect to Collateral acquired after the date hereof, it
will own, legally and beneficially, its Collateral free and clear of any lien, security interest,
pledge, claim, or other encumbrance or any right or option on the part of any third Person to
purchase or otherwise acquire its Collateral or any part thereof, except for the security interest
granted hereunder. Its Collateral is not subject to any restriction on transfer or assignment
except for compliance with the Financing Documents and compliance with applicable federal and state
securities laws and regulations promulgated thereunder. It has the unrestricted right to pledge
its Collateral as contemplated hereby. All of the capital stock or other equity interests pledged
as its Collateral have been duly and validly issued and are fully paid and non-assessable.
Schedule 1 hereto sets forth the percentage of ownership interests of each Pledgor in the
Collateral identified on such schedule.

     B. Principal Place of Business; Jurisdiction of Organization. Its principal place of
business, chief executive office, the office where it keeps its books and records and its
jurisdiction of organization are each identified on Schedule 4 hereto. Within the last
four months from the date hereof it has not (a) had any other chief place of business, chief
executive office, or jurisdiction of organization; (b) acquired substantially all of the assets of
any Person; or (c) merged with or into a Person. It does not do business on the date hereof and
has not done business during the past five years prior to the date hereof under any trade-name or
fictitious business name.

     C. Delivery of Collateral. Except as provided by Section 4.03, it has
delivered to Secured Party all of its Collateral the possession of which is necessary to perfect
the security interest of Secured Party therein.

III.

Affirmative and Negative Covenants

     Each Pledgor covenants and agrees with Secured Party that:

     A. Delivery. Prior to or concurrently with the execution and delivery of this
Agreement, it shall deliver to Secured Party all certificate(s) of capital stock identified in
Section 1.01 hereof, accompanied by undated stock powers or assignments, as applicable,
duly executed in blank. Each time

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 2

 

 

Section 1.01 hereto is amended in accordance with Section 3.05 hereof or
otherwise, it shall deliver to Secured Party all new certificate(s) identified in any Pledge
Amendment delivered pursuant to Section 3.05 or otherwise identified, accompanied by
undated stock powers or assignments, as applicable, duly executed in blank.

     B. Encumbrances. It shall not create, permit, or suffer to exist, and shall defend
the Collateral against, any lien, security interest, or other encumbrance on the Collateral except
the pledge and security interest of Secured Party hereunder. It shall defend Pledgor’s rights in
the Collateral and Secured Party’s security interest in the Collateral against the claims of all
Persons.

     C. Distributions. If it shall become entitled to receive or shall receive: (i) any
stock certificate (including, without limitation, any certificate representing a stock dividend or
a distribution in connection with any reclassification, increase, or reduction of capital or issued
in connection with any reorganization), option or rights, whether as an addition to, in
substitution of, or in exchange for any Collateral; or (ii) subject to the right of such Pledgor to
receive cash dividends, distributions and other payments under Section 4.03 hereof or as
may otherwise be provided in the Credit Facilities: (a) any sums paid in respect of the Collateral
upon the liquidation or dissolution of the issuer thereof; (b) any other distribution of capital
made on or in respect of the Collateral or any other property distributed upon or in respect of the
Collateral pursuant to any recapitalization or reclassification of the capital of the issuer
thereof or pursuant to any reorganization of the issuer thereof; or (c) any other Collateral the
possession of which is necessary to perfect the security interest of Secured Party therein, then it
agrees to accept the same as Secured Party’s agent and to hold the same in trust for Secured Party,
and to deliver the same forthwith to Secured Party in the exact form received, with the appropriate
endorsement when necessary and/or appropriate undated stock powers or assignments duly executed in
blank, to be held by Secured Party as additional Collateral for the obligations secured hereby,
subject to the terms hereof. Subject to the right of the Pledgors to receive cash dividends,
distributions and other payments under Section 4.03 hereof, all sums of money and property
so paid or distributed in respect of the Collateral that are received by a Pledgor shall, until
paid or delivered to Secured Party, be held by such Pledgor in trust as additional security for the
Obligations.

     D. Additional Securities; Application of Article 8. No Pledgor shall consent to or
approve the issuance of any additional shares of any class of capital stock or any additional
ownership interest of the issuer of any Collateral, or any securities convertible into, or
exchangeable for, any such shares or ownership interest or any warrants, options, rights, or other
commitments entitling any Person to purchase or otherwise acquire any such shares or any additional
ownership interest (any of the foregoing herein an “Equity Right”); provided
however, a Pledgor may consent to or approve the issuance of any Equity Right if such
Equity Right is permitted to be issued under the terms of the Credit Facilities and if such Equity
Right is granted to such Pledgor and is delivered to Secured Party as additional Collateral in
accordance with the terms hereof to secure the obligations secured hereby. If any of the
Collateral consists of interests in a partnership or limited liability company, it shall not permit
such interest to be evidenced by a certificate (except for those interests evidenced by a
certificate as of the date hereof as described on the Schedules hereto or to become a “security”
governed by the provisions of Article 8 of the Uniform Commercial Code as in effect from
time to time in the State of Texas (the “UCC”)).

     E. Additional Pledged Collateral. Each Pledgor shall pledge hereunder, immediately
upon its acquisition thereof, any and all additional shares of stock, other certificates or other
instruments evidencing Collateral. Each Pledgor agrees that it will, upon obtaining any additional
shares of stock, other certificates or other instruments required to be pledged hereunder as
provided in this Section 3.05 or Section 3.03 or Section 3.04 or which is
otherwise required to be pledged hereunder under the terms of the Financing Documents, promptly
(and in any event within fifteen Business Days) deliver to Secured Party a Pledge Amendment, duly
executed by such Pledgor, in substantially the form of Schedule 3

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 3

 

 

annexed hereto (a “Pledge Amendment”), in respect of the additional property to be
pledged pursuant to this Agreement. Each Pledgor hereby authorizes Secured Party to attach each
Pledge Amendment to this Agreement and agrees that all property listed on any Pledge Amendment
delivered to Secured Party shall for all purposes hereunder be considered Collateral;
provided that the failure of any Pledgor to execute a Pledge Amendment with respect
to any additional property pledged pursuant to this Agreement shall not impair the security
interest of Secured Party therein or otherwise adversely affect the rights and remedies of Secured
Party hereunder with respect thereto.

     F. Further Assurances. At any time and from time to time, upon the reasonable request
of Secured Party, and at the sole expense of the Pledgors, a Pledgor shall promptly execute and
deliver all such further documentation and take such further action as Secured Party may deem
necessary or desirable to preserve and perfect its security interest in the Collateral and carry
out the provisions and purposes of this Agreement, including, without limitation, the execution and
filing of such financing statements as Secured Party may require (the Secured Party is hereby
authorized to file without the consent or approval of any Pledgor, any financing statement naming
it as Secured Party and such Pledgor as the Debtor which describes such Pledgor’s Collateral).

     G. Sale of Collateral. No Pledgor shall sell, assign, or otherwise dispose of the
Collateral or any part thereof without the prior written consent of all the Lenders or except as
permitted by Section 5.12 of the Intercreditor Agreement.

     H. Corporate Changes. No Pledgor shall change its name, identity, or corporate
structure in any manner that might make any financing statement filed in connection with this
Agreement seriously misleading, in Secured Party’s judgment, unless such Pledgor shall have given
Secured Party thirty (30) days prior written notice thereof and shall have taken all action deemed
necessary or desirable by Secured Party to make each financing statement not seriously misleading.
No Pledgor shall change its location (determined as provided in Section 9.307 of the UCC) unless
it shall have given Secured Party thirty (30) days’ prior written notice thereof and shall have
taken all action deemed necessary or desirable by Secured Party to cause its security interest in
the Collateral to be protected and perfected with the priority required by this Agreement,
including, without limitation, the delivery of a legal opinion satisfactory to the Secured Party as
to the continued perfection and priority of the security interest hereby created.

IV.

Rights of Secured Party and Pledgors

     A. Power of Attorney. EACH PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS
SECURED PARTY AND ANY OFFICER OR AGENT THEREOF, WITH FULL POWER OF SUBSTITUTION, AS ITS TRUE AND
LAWFUL ATTORNEY-IN-FACT WITH FULL IRREVOCABLE POWER AND AUTHORITY IN THE PLACE AND STEAD AND IN THE
NAME OF THE APPLICABLE PLEDGOR OR IN ITS OWN NAME, IN SECURED PARTY’S DISCRETION, WHEN AN EVENT OF
DEFAULT HAS OCCURRED AND IS CONTINUING, TO TAKE ANY AND ALL ACTION AND EXECUTE ANY AND ALL
DOCUMENTS AND INSTRUMENTS WHICH MAY BE NECESSARY OR DESIRABLE TO ACCOMPLISH THE PURPOSES OF THIS
AGREEMENT AND, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, HEREBY GIVES SECURED PARTY THE
POWER AND RIGHT ON BEHALF OF PLEDGOR AND IN ITS OWN NAME TO DO, WHEN AN EVENT OF DEFAULT HAS
OCCURRED AND IS CONTINUING, ANY OF THE FOLLOWING WITHOUT NOTICE TO OR THE CONSENT OF ANY PLEDGOR:

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 4

 

 

          1. to demand, sue for, collect, or receive in the name of a Pledgor or in its own name, any
money or property at any time payable or receivable on account of or in exchange for any of the
Collateral and, in connection therewith, endorse checks, notes, drafts, acceptances, money orders,
or any other instruments for the payment of money under the Collateral;

          2. to pay or discharge taxes, liens, security interests, or other encumbrances levied or
placed on or threatened against the Collateral;

          3. (i) to direct the issuer of any Collateral to make payment of any and all monies due and to
become due thereunder directly to Secured Party or as Secured Party shall direct; (ii) to receive
payment of and receipt for any and all monies, claims, and other amounts due and to become due at
any time in respect of or arising out of any Collateral; (iii) to sign and endorse any drafts,
assignments, proxies, stock powers, verifications, notices, and other documents relating to the
Collateral; (iv) to commence and prosecute any suit, actions or proceedings at law or in equity in
any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce
any other right in respect of any Collateral; (v) to participate in the defense of, or if a Pledgor
fails to defend, to defend any suit, action, or proceeding brought against Pledgor with respect to
any Collateral; (vi) to settle, compromise, or adjust any suit, action, or proceeding described in
clauses (iv) or (v) above, and, in connection therewith, to give such discharges or
releases as Secured Party may deem appropriate; (vii) to exchange any of the Collateral for other
property upon any merger, consolidation, reorganization, recapitalization, or other readjustment of
the issuer thereof and, in connection therewith, deposit any of the Collateral with any committee,
depositary, transfer agent, registrar, or other designated agency upon such terms as Secured Party
may determine; and (viii) to sell, transfer, pledge, make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though Secured Party were the
absolute owner thereof for all purposes, and to do, at Secured Party’s option and the Pledgor’s
expense, at any time, or from time to time, all acts and things which Secured Party deems necessary
to protect, preserve, or realize upon the Collateral and Secured Party’s security interest therein.

     THE POWER OF ATTORNEY GRANTED IN THIS SECTION 4.01 IS A POWER COUPLED WITH AN INTEREST
AND SHALL BE IRREVOCABLE. Secured Party shall be under no duty to exercise or withhold the
exercise of any of the rights, powers, privileges and options expressly or implicitly granted to
Secured Party in this Agreement, and Secured Party shall not be liable for any failure to do so or
any delay in doing so. Secured Party shall not be liable for any act or omission or for any error
of judgment or any mistake of fact or law in its individual capacity or in its capacity as
attorney-in-fact except acts or omissions resulting from its gross negligence or willful
misconduct. This power of attorney is conferred on Secured Party solely to protect, preserve and
realize upon its security interest in the Collateral.

     B. Voting Rights. Unless an Event of Default has occurred and is continuing, each
Pledgor shall be entitled to exercise any and all voting rights pertaining to the Collateral or any
part thereof for any purpose not inconsistent with the terms of this Agreement, any Credit Facility
or the Intercreditor Agreement. Secured Party shall execute and deliver to the Pledgors all such
proxies and other instruments as any Pledgor may reasonably request for the purpose of enabling
such Pledgor to exercise the voting rights which it is entitled to exercise pursuant to this
Section.

     C. Dividends. Unless an Event of Default has occurred and is continuing, the Pledgors
shall be entitled to receive and retain any dividends, distributions and other payments in respect
of the Collateral in cash (other than payments described in clause (ii)(a) of Section
3.03) to the extent and only to the extent that such dividends, distributions or other
payments are permitted by the Credit Facilities and applicable law.

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 5

 

 

     D. Secured Party’s Duty of Care. Other than the exercise of reasonable care in the
physical custody of the Collateral while held by Secured Party hereunder, Secured Party shall have
no responsibility for or obligation or duty with respect to all or any part of the Collateral or
any matter or proceeding arising out of or relating thereto, including, without limitation, any
obligation or duty to collect any sums due in respect thereof or to protect or preserve any rights
against prior parties or any other rights pertaining thereto, it being understood and agreed that
the Pledgors shall be responsible for preservation of all rights in the Collateral. Without
limiting the generality of the foregoing, Secured Party shall be conclusively deemed to have
exercised reasonable care in the custody of the Collateral if Secured Party takes such action, for
purposes of preserving rights in the Collateral, as any Pledgor may reasonably request in writing,
but no failure or omission or delay by Secured Party in complying with any such request by a
Pledgor, and no refusal by Secured Party to comply with any such request by such Pledgor, shall be
deemed to be a failure to exercise reasonable care.

V.

Default

     A. Rights and Remedies. If any Event of Default has occurred and is continuing,
Secured Party shall have the following rights and remedies:

          1. In addition to all other rights and remedies granted to Secured Party in this Agreement,
the Intercreditor Agreement and in any other instrument or agreement securing, evidencing, or
relating to any of the obligations secured hereby, Secured Party shall have all of the rights and
remedies of a secured party under the UCC or of a creditor with a lien or charge on the Collateral
under the laws of the jurisdiction of the organization of the issuer of any of the Collateral.
Without limiting the generality of the foregoing, Secured Party may (i) without demand or notice to
any Pledgor, collect, receive, or take possession of the Collateral or any part thereof, (ii) sell
or otherwise dispose of the Collateral, or any part thereof, in one or more parcels at public or
private sale or sales, at Secured Party’s offices or elsewhere, for cash, on credit, or for future
delivery and/or (iii) bid and become a purchaser at any public (or private, to the extent permitted
by applicable law) sale free of any right or equity of redemption in any Pledgor, which right or
equity is hereby expressly waived and released by such Pledgor. Upon the request of Secured Party,
a Pledgor shall assemble the Collateral not already in the possession of Secured Party and make it
available to Secured Party at any place designated by Secured Party that is reasonably convenient
to such Pledgor and Secured Party. Each Pledgor agrees that Secured Party shall not be obligated
to give more than ten (10) days prior written notice of the time and place of any public sale or of
the time after which any private sale may take place and that such notice shall constitute
reasonable notice of such matters; provided, however, if any of the Collateral
threatens to decline speedily in value or is of a type customarily sold on a recognized market,
Secured Party may sell or otherwise dispose of the Collateral without notification of any kind.
Secured Party shall not be obligated to make any sale of the Collateral regardless of notice of
sale having been given. Secured Party may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned. Each Pledgor shall be liable for all
reasonable expenses of retaking, holding, preparing for sale, or the like, and all reasonable
attorneys’ fees and other expenses incurred by Secured Party in connection with the collection of
the obligations secured hereby and the enforcement of Secured Party’s rights under this Agreement,
all of which expenses and fees shall constitute additional obligations secured by this Agreement.
Secured Party may apply the Collateral against the obligations secured hereby in such order and
manner as Secured Party may determine in its discretion subject, however, to the provisions of the
Intercreditor Agreement. The Company shall remain liable for any deficiency if the proceeds of any
sale or disposition of the Collateral are insufficient to pay in full the Obligations secured
hereby. Each Pledgor waives all rights of marshaling in respect of the Collateral.

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 6

 

 

          2. Secured Party may cause any or all of the Collateral held by it to be transferred into the
name of Secured Party or the name or names of Secured Party’s nominee or nominees.

          3. Secured Party may collect or receive all money or property at any time payable or
receivable on account of or in exchange for any of the Collateral, but shall be under no obligation
to do so.

          4. Secured Party shall have the right, but shall not be obligated to, exercise or cause to be
exercised all voting, consensual and other powers of ownership pertaining to the Collateral, and
Pledgor shall deliver to Secured Party, if requested by Secured Party, irrevocable proxies with
respect to the Collateral in form satisfactory to Secured Party.

          5. Each Pledgor hereby acknowledges and confirms that Secured Party may be unable to effect a
public sale of any or all of the Collateral by reason of certain prohibitions contained in the
Securities Act of 1933, as amended, and applicable state or foreign securities laws and may be
compelled to resort to one or more private sales thereof to a restricted group of purchasers who
will be obligated to agree, among other things, to acquire any shares of the Collateral for their
own respective accounts for investment and not with a view to distribution or resale thereof. Each
Pledgor further acknowledges and confirms that any such private sale may result in prices or other
terms less favorable to the seller than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner, and Secured Party shall be under no obligation to take any steps in
order to permit the Collateral to be sold at a public sale. Secured Party shall be under no
obligation to delay a sale of any of the Collateral for any period of time necessary to permit any
issuer thereof to register such Collateral for public sale under the Securities Act of 1933, as
amended, or under applicable state or foreign securities laws.

VI.

Miscellaneous

     A. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Pledgors and Secured Party and their respective successors and assigns, except that
no Pledgor may assign any of its rights or obligations under this Agreement without the prior
written consent of the Lenders.

     B. AMENDMENT; ENTIRE AGREEMENT; AMENDMENT AND RESTATEMENT. THIS AGREEMENT, THE
INTERCREDITOR AGREEMENT AND THE OTHER FINANCING DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG
THE PARTIES HERETO AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS (INCLUDING THE PRIOR
PLEDGE AGREEMENT AND THE ORIGINAL PLEDGE AGREEMENT), REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR
VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE
PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO. This Agreement amends and
restates the Prior Pledge Agreement in its entirety; provided, however, that the
existing liens on and security interests in the Collateral under the Prior Pledge Agreement are
hereby ratified, confirmed and continued and remain in full force and effect pursuant to the terms
of this Agreement and are not extinguished. The provisions of this Agreement may be amended or
waived with the consent of the Required Lenders except as otherwise provided in the Intercreditor
Agreement; provided that no

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 7

 

 

amendment, waiver or other modification shall without the consent of all the Lenders modify
the terms of Section 3.07 or this Section 6.02.

     C. Notices. All notices and other communications provided for in this Agreement shall
be given or made in accordance with the Multiyear Credit Agreement.

     D. GOVERNING LAW, JURISDICTION, ETC.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES
OF AMERICA.

     (b) SUBMISSION TO JURISDICTION. EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF
THE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED STATES DISTRICT
COURT OF THE NORTHERN DISTRICT OF TEXAS, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS AGREEMENT OR IN ANY OTHER FINANCING DOCUMENT SHALL AFFECT ANY RIGHT THAT THE SECURED
PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY
OTHER FINANCING DOCUMENT AGAINST ANY PLEDGOR OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

     (c) WAIVER OF VENUE. EACH PLEDGOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER FINANCING DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B)
OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 8

 

 

THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 6.03. NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

     E. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     F. Headings. The headings, captions and arrangements used in this Agreement are for
convenience only and shall not affect the interpretation of this Agreement.

     G. Counterparts. This Agreement may be executed in any number of counterparts and on
telecopy counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same agreement.

     H. Severability. Any provision of this Agreement which is 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 of this Agreement,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     I. Time is of the Essence. Time is of the essence in the performance of this
Agreement.

     J. Release of Collateral. The parties hereto acknowledge that Section 5.12 of
the Intercreditor Agreement provides for release of the Collateral in certain specified
circumstances.

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 9

 

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first written above.

	 	 	 	 	 
	 	PLEDGORS: 

LENNOX INTERNATIONAL INC.

 	 
	 	By:  	 	 
	 	 	Susan K. Carter 	 
	 	 	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	SECURED PARTY:

BANK OF AMERICA, N.A., as Collateral Agent

 	 
	 	By:  	 	 
	 	 	David A. Johanson 	 
	 	 	Vice President 	 
	 

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT, Page 10

 

 

Schedule 1

to

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

Section 1.01 (a) Collateral

Lennox International Inc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Par
	 	 	 	 	 	 	 	 	 	 	Value
	 	 	Ownership	 	Number of	 	Certificate	 	Percentage	 	(per
	Issuer	 	Interest	 	Shares	 	Number	 	Ownership	 	share)
	Armstrong Air
Conditioning Inc.
	 	Common Stock	 	1,030 shares	 	2, 3, 4, and 5	 	100%	 	$1.00
	Excel Comfort Systems Inc.
	 	Common Stock	 	1,000 shares	 	1	 	100%	 	$1.00
	Lennox Industries Inc.
	 	Common Stock	 	994,394 shares	 	C8195, C8196, C8197, C8198, C8199	 	100%	 	$1.00
	Service Experts Inc.
	 	Common Stock	 	1,000 shares	 	1	 	100%	 	$0.01
	Lennox Global Ltd.
	 	Common Stock	 	1,000 shares	 	1	 	100%	 	$1.00

SCHEDULE 1 to Amended and Restated Pledge Agreement, Solo Page

 

 

Schedule 2

to

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

Collateral Pledged Under Section 1.01(b)

Lennox International Inc.

None.

SCHEDULE 2 to Amended and Restated Pledge Agreement, Solo Page

 

 

Schedule 3

to

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

Pledge Amendment

     This Pledge Amendment, dated __________, ___, is delivered pursuant to Section
3.05 of the Pledge Agreement referred to below. The undersigned hereby agrees that this Pledge
Amendment may be attached to the Second Amended and Restated Pledge Agreement dated as of July 8,
2005 among the undersigned and the other Pledgor(s) from time to time party thereto, if any, and
BANK OF AMERICA, N.A., as collateral agent, as secured party (the “Pledge Agreement”, capitalized
terms defined therein being used herein as therein defined). Schedule(s) 1 [and 2] of the
Pledge Agreement is [are] hereby amended to add the property described below and the property
listed on this Pledge Amendment shall be part of the Collateral and shall secure all obligations
secured by the Pledge Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	[                                                                                                     	      ]
	 	 	 	 	 
	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	 

Schedule 1 Collateral

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 	 	 
	 	 	 	 	Shares, Units	 	Certificate	 	Par
	Issuer	 	Ownership Interest	 	or % Interest	 	Number	 	Value
	 

	 	 
	 	 
	 	 
	 	 

Schedule 2 Collateral

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 	 	 
	 	 	 	 	Shares, Units	 	Certificate	 	Par
	Issuer	 	Ownership Interest	 	or % Interest	 	Number	 	Value
	 

	 	 
	 	 	 	 	 	 

SCHEDULE 3 to Amended and Restated Pledge Agreement, Solo Page

 

 

Schedule 4

to

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

Chief Executive Office and other Information

Lennox International Inc.

	 	 	 	 	 
	1.

	 	Chief Executive Office (Principal
place of business and office where
books and records kept):
	 	

2140 Lake Park Blvd.

Richardson, TX 75080
	 
	 	 	 	 
	2.

	 	Jurisdiction of Incorporation:
	 	Delaware

SCHEDULE 4 to Amended and Restated Pledge Agreement, Solo Page

 

 

Schedule 5

to

SECOND AMENDED AND RESTATED PLEDGE AGREEMENT

SUBSIDIARY PLEDGOR JOINDER AGREEMENT

     The undersigned (“Pledgor”) hereby agrees that this Subsidiary Pledgor Joinder
Agreement dated as of __________, 200___may be attached to the Second Amended and Restated Pledge
Agreement dated as of July 8, 2005 among the undersigned and the other Pledgors from time to time
party thereto, and BANK OF AMERICA, N.A., as collateral agent, as secured party (the “Pledge
Agreement”, capitalized terms defined therein being used herein as therein defined).

     The Pledgor is required to execute this Subsidiary Pledgor Joinder Agreement pursuant to
Section 5.21 the Multiyear Credit Agreement.

     NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Pledgor hereby agrees as follows:

     1. The Pledgor hereby assumes all the obligations of a “Pledgor” under the Pledge Agreement
and agrees that it is a “Pledgor” and bound as a “Pledgor” under the terms of the Pledge Agreement
as if it had been an original signatory thereto.

     2. Schedule(s) 1 [and 2] of the Pledge Agreement is [are] hereby amended to add the
property described below and the property listed on this Pledge Amendment shall be part of the
Collateral and shall secure all obligations secured by the Pledge Agreement.

Schedule 1 Collateral

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 	 	 
	 	 	 	 	Shares, Units	 	Certificate	 	Par
	Issuer	 	Ownership Interest	 	or % Interest	 	Number	 	Value
	 

	 	 	 	 
	 	 
	 	 

Schedule 2 Collateral

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	 	 	 
	 	 	 	 	Shares, Units	 	Certificate	 	Par
	Issuer	 	Ownership Interest	 	or % Interest	 	Number	 	Value
	 

	 	 
	 	 
	 	 
	 	 

     3. This Agreement shall be deemed to be part of, and a modification to, the Pledge
Agreement and shall be governed by all the terms and provisions of the Pledge Agreement, which
terms are incorporated herein by reference, are ratified and confirmed and shall be in full force
and effect as valid and binding agreements of Pledgor enforceable against Pledgor.

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 1

 

 

     IN WITNESS WHEREOF, the Pledgor has executed this Agreement as of the day and year first
written above.

	 	 	 	 	 
	 	Pledgor: 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 2<PAGE>

                                                                     EXHIBIT 4.1

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and
entered into as of July 8, 2005, by and among Holly Energy Partners, L.P., a
Delaware limited partnership ("HEP"), and FIDUCIARY/CLAYMORE MLP OPPORTUNITY
FUND, a Delaware closed-end management investment company, PERRY PARTNERS, L.P.,
a Delaware limited partnership, STRUCTURED FINANCE AMERICAS, LLC, a Delaware
limited liability company, Kayne anderson MLP INVESTMENT COMPANY, a Maryland
closed-end management investment company, and KAYNE ANDERSON ENERGY TOTAL RETURN
FUND, INC., a Maryland closed-end management investment company (each a
"Purchaser, and collectively, the "Purchasers").

            WHEREAS, this Agreement is made in connection with the Closing of
the issuance and sale of the Purchased Units pursuant to the Common Unit
Purchase Agreement, dated as of July 6, 2005, by and among HEP and the
Purchasers (the "Purchase Agreement");

            WHEREAS, HEP has agreed to provide the registration and other rights
set forth in this Agreement for the benefit of the Purchasers pursuant to the
Purchase Agreement; and

            WHEREAS, it is a condition to the obligations of each Purchaser and
HEP under the Purchase Agreement that this Agreement be executed and delivered.

            NOW THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each party hereto, the
parties hereby agree as follows:

                                   ARTICLE I.
                                   DEFINITIONS

      Section 1.01. Definitions.

            Capitalized terms used herein without definition shall have the
meanings given to them in the Purchase Agreement. The terms set forth below are
used herein as so defined:

            "Effectiveness Period" has the meaning specified therefor in Section
2.01 of this Agreement.

            "Holder" means the record holder of any Registrable Securities.

            "Holly" means Holly Corporation, a Delaware corporation.

            "Included Registrable Securities" has the meaning specified therefor
in Section 2.02(a) of this Agreement.

            "Liquidated Damages" has the meaning specified therefor in Section
2.01(a) of this Agreement.

            "Losses" has the meaning specified therefor in Section 2.08(a) of
this Agreement.

                                       1
<PAGE>

            "Managing Underwriter" means, with respect to any Underwritten
Offering, the book-running lead manager of such Underwritten Offering.

            "Purchase Agreement" has the meaning specified therefor in the
Recitals of this Agreement.

            "Purchaser" and "Purchasers" have the meanings specified therefor in
the introductory paragraph of this Agreement.

            "Registrable Securities" means the Purchased Units, all of which are
subject to the rights provided herein until such rights terminate pursuant to
the provisions hereof.

            "Registration Expenses" has the meaning specified therefor in
Section 2.07(a) of this Agreement.

            "Selling Expenses" has the meaning specified therefor in Section
2.07(a) of this Agreement.

            "Selling Holder" means a Holder who is selling Registrable
Securities pursuant to a registration statement.

            "Shelf Registration Statement" means a registration statement under
the Securities Act to permit the resale of the Registrable Securities from time
to time, including as permitted by Rule 415 of the Securities Act (or any
similar provision then in force under the Securities Act).

            "Underwritten Offering" means an offering (including an offering
pursuant to a Shelf Registration Statement) in which Common Units are sold to an
underwriter on a firm commitment basis for reoffering to the public or an
offering that is a "bought deal" with one or more investment banks.

      Section 1.02. Registrable Securities. Any Registrable Security will cease
to be a Registrable Security when (a) a registration statement covering such
Registrable Security has been declared effective by the Commission and such
Registrable Security has been sold or disposed of pursuant to such effective
registration statement; (b) such Registrable Security has been disposed of
pursuant to any section of Rule 144 (or any similar provision then in force
under the Securities Act); (c) such Registrable Security is held by HEP or one
of its subsidiaries; or (d) such Registrable Security has been sold in a private
transaction in which the transferor's rights under this Agreement are not
assigned to the transferee of such securities.

                                   ARTICLE II.
                               REGISTRATION RIGHTS

      Section 2.01. Shelf Registration.

            (a) Shelf Registration. As soon as practicable following the
Closing, but in any event within 90 days of the Closing, HEP shall prepare and
file a Shelf Registration Statement under the Act with respect to all of the
Registrable Securities. HEP shall use its commercially reasonable efforts to
cause the Shelf Registration Statement to become effective no

                                       2
<PAGE>

later than 180 days after the date of the Closing. A Shelf Registration
Statement filed pursuant to this Section 2.01 shall be on such appropriate
registration form of the Commission as shall be selected by HEP; provided,
however, that if a prospectus supplement will be used in connection with the
marketing of an Underwritten Offering from the Shelf Registration Statement and
the Managing Underwriter at any time shall notify HEP in writing that, in the
sole judgment of such Managing Underwriter, inclusion of detailed information to
be used in such prospectus supplement is of material importance to the success
of the Underwritten Offering of such Registrable Securities, HEP shall use its
commercially reasonable efforts to include such information in the prospectus.
HEP will use its commercially reasonable efforts to cause the Shelf Registration
Statement filed pursuant to this Section 2.01 to be continuously effective under
the Securities Act until the earlier of (i) when all such Registrable Securities
are sold by the Purchasers or (ii) two years from the date the Shelf
Registration Statement is declared effective by the Commission (the
"Effectiveness Period"). The Shelf Registration Statement when declared
effective (including the documents incorporated therein by reference) will
comply as to form with all applicable requirements of the Securities Act and the
Exchange Act and will not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading. If the Shelf Registration Statement is not
declared effective within 180 days after Closing, then each Purchaser shall be
entitled to a payment (with respect to each of such Purchaser's Purchased
Units), as liquidated damages and not as a penalty, of 1/30th of .25% of the
aggregate Purchase Price for such Purchaser's Purchased Units per day for the
first 60 days following the 180th day, increasing by an additional 1/30th of
..25% of the aggregate Purchase Price for such Purchaser's Purchased Units per
day for each subsequent 60 days, up to a maximum of 1/30th of 1.00% of the
aggregate Purchase Price for such Purchaser's Purchased Units per day (the
"Liquidated Damages"), which shall be payable in cash within 10 Business Days of
the end of each 30-day period during which Liquidated Damages are payable.

            (b) Delay Rights. Notwithstanding anything to the contrary contained
herein, HEP may, upon written notice to any Selling Holder whose Registrable
Securities are included in the Shelf Registration Statement, suspend such
Selling Holder's use of any prospectus which is a part of the Shelf Registration
Statement (in which event the Selling Holder shall discontinue sales of the
Registrable Securities pursuant to the Shelf Registration Statement) if (i) HEP
is pursuing an acquisition, merger, reorganization, disposition or other similar
transaction and HEP determines in good faith that HEP's ability to pursue or
consummate such a transaction would be materially adversely affected by any
required disclosure of such transaction in the Shelf Registration Statement or
(ii) HEP has experienced some other material non-public event the disclosure of
which at such time, in the good faith judgment of HEP, would materially
adversely affect HEP; provided, however, in no event shall the Purchasers be
suspended for a period exceeding an aggregate of 90 days (exclusive of days
covered by any lock-up agreement executed by a Purchaser in connection with any
Underwritten Offering by HEP or a Purchaser) in any 365-day period. Upon
disclosure of such information or the termination of the condition described
above, HEP shall provide prompt notice to the Selling Holders whose Registrable
Securities are included in the Shelf Registration Statement, and shall promptly
terminate any suspension of sales it has put into effect and shall take such
other actions to permit registered sales of Registrable Securities as
contemplated in this Agreement.

                                       3
<PAGE>

      Section 2.02. Piggyback Rights.

            (a) Participation. If at any time HEP proposes to file (i) a
prospectus supplement to an effective shelf registration statement, including
the Shelf Registration Statement contemplated by Section 2.01, or (ii) a
registration statement, other than a shelf registration statement, in either
case, for the sale of Common Units in an Underwritten Offering for its own
account and/or another Person, then as soon as practicable but not less than
three (3) Business Days prior to the filing of (x) any preliminary prospectus
supplement relating to such Underwritten Offering pursuant to Rule 424(b), (y)
the prospectus supplement relating to such Underwritten Offering pursuant to
Rule 424(b) (if no preliminary prospectus supplement is used) or (z) such
registration statement as the case may be, then, HEP shall give notice of such
proposed Underwritten Offering to the Holders and such notice shall offer the
Holders the opportunity to include in such Underwritten Offering such number of
Registrable Securities (the "Included Registrable Securities") as each such
Holder may request in writing; provided, however, that if HEP has been advised
by the Managing Underwriter that the inclusion of Registrable Securities for
sale for the benefit of the Holders will have an adverse effect on the price,
timing or distribution of the Common Units, then the amount of Registrable
Securities to be offered for the accounts of Holders shall be determined based
on the provisions of Section 2.02(b). The notice required to be provided in this
Section 2.02(a) to Holders shall be provided on a Business Day pursuant to
Section 3.01 hereof and receipt of such notice shall be confirmed by Holder.
Holder shall then have twenty-four hours after such Holder confirms receipt of
the notice to request inclusion of Registrable Securities in the Underwritten
Offering. If no request for inclusion from a Holder is received within the
specified time, such Holder shall have no further right to participate in such
Underwritten Offering. If, at any time after giving written notice of its
intention to undertake an Underwritten Offering and prior to the closing of such
Underwritten Offering, HEP shall determine for any reason not to undertake or to
delay such Underwritten Offering, HEP may, at its election, give written notice
of such determination to the Selling Holders and, (x) in the case of a
determination not to undertake such Underwritten Offering, shall be relieved of
its obligation to sell any Included Registrable Securities in connection with
such terminated Underwritten Offering, and (y) in the case of a determination to
delay such Underwritten Offering, shall be permitted to delay offering any
Included Registrable Securities for the same period as the delay in the
Underwritten Offering. Any Selling Holder shall have the right to withdraw such
Selling Holder's request for inclusion of such Selling Holder's Registrable
Securities in such offering by giving written notice to HEP of such withdrawal
up to and including the time of pricing of such offering. Each Holder's rights
under this Section 2.02(a) shall terminate when such Holder holds less than five
million dollars ($5,000,000) worth of Purchased Units.

            (b) Priority of Piggyback Rights. If the Managing Underwriter or
Underwriters of any proposed Underwritten Offering of Common Units included in
an Underwritten Offering involving Included Registrable Securities advises HEP
that the total amount of Common Units that the Selling Holders and any other
Persons intend to include in such offering exceeds the number that can be sold
in such offering without being likely to have an adverse effect on the price,
timing or distribution of the Common Units offered or the market for the Common
Units, then the Common Units to be included in such Underwritten Offering shall
include the number of Registrable Securities that such Managing Underwriter or
Underwriters advises HEP can be sold without having such adverse effect, with
such number to

                                       4
<PAGE>

be allocated (i) first, to HEP; and (ii) second, pro rata among the Selling
Holders and Holly (solely with respect to the 70,000 Common Units issued to
Holly pursuant to the Pipeline Acquisition Agreement) who have requested
participation in such Underwritten Offering based, for each such Selling Holder
or Holly, as applicable, on the fraction derived by dividing (x) the number of
Common Units proposed to be sold by such Selling Holder or Holly in such
Underwritten Offering by (y) the aggregate number of Common Units proposed to be
sold by all Selling Holders and Holly in such Underwritten Offering.

      Section 2.03. Underwritten Offering.

            (a) S-3 Registration. If a Selling Holder elects to dispose of
Registrable Securities under the Shelf Registration Statement pursuant to an
Underwritten Offering and reasonably anticipates gross proceeds of greater than
$20 million from such Underwritten Offering, HEP shall, at the request of such
Selling Holder, enter into an underwriting agreement in customary form with the
Managing Underwriter or Underwriters, which shall include, among other
provisions, indemnities to the effect and to the extent provided in Section
2.08, and shall take all such other reasonable actions as are requested by the
Managing Underwriter to expedite or facilitate the disposition of the
Registrable Securities; provided however, HEP management will not be required to
participate in any roadshow or similar marketing effort on behalf of any Selling
Holder.

            (b) General Procedures. In connection with any Underwritten Offering
under this Agreement, HEP shall be entitled to select the Managing Underwriter
or Underwriters. In connection with an Underwritten Offering under Section 2.01
or Section 2.03 hereof, each Selling Holder and HEP shall be obligated to enter
into an underwriting agreement that contains such representations, covenants,
indemnities and other rights and obligations as are customary in underwriting
agreements for firm commitment offerings of securities. No Selling Holder may
participate in such Underwritten Offering unless such Selling Holder agrees to
sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney,
indemnities and other documents reasonably required under the terms of such
underwriting agreement. Each Selling Holder may, at its option, require that any
or all of the representations and warranties by, and the other agreements on the
part of, HEP to and for the benefit of such underwriters also be made to and for
such Selling Holder's benefit and that any or all of the conditions precedent to
the obligations of such underwriters under such underwriting agreement also be
conditions precedent to its obligations. No Selling Holder shall be required to
make any representations or warranties to or agreements with HEP or the
underwriters other than representations, warranties or agreements regarding such
Selling Holder and its ownership of the securities being registered on its
behalf and its intended method of distribution and any other representation
required by law. If any Selling Holder disapproves of the terms of an
underwriting, such Selling Holder may elect to withdraw therefrom by notice to
HEP and the Managing Underwriter; provided, however, that such withdrawal must
be made prior to the time in the penultimate sentence of Section 2.02(a) hereof
to be effective. No such withdrawal or abandonment shall affect HEP's obligation
to pay Registration Expenses.

      Section 2.04. Sale Procedures. In connection with its obligations
contained in Section 2.01 and Section 2.03, HEP will, as expeditiously as
possible:

                                       5
<PAGE>

            (a) prepare and file with the Commission such amendments and
supplements to the Shelf Registration Statement and the prospectus used in
connection therewith as may be necessary to keep the Shelf Registration
Statement effective for the Effectiveness Period and as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition
of all securities covered by the Shelf Registration Statement;

            (b) furnish to each Selling Holder (i) as far in advance as
reasonably practicable before filing the Shelf Registration Statement or any
other registration statement contemplated by this Agreement or any supplement or
amendment thereto, upon request, copies of reasonably complete drafts of all
such documents proposed to be filed (including exhibits and each document
incorporated by reference therein to the extent then required by the rules and
regulations of the Commission), and provide each such Selling Holder the
opportunity to object to any information pertaining to such Selling Holder and
its plan of distribution that is contained therein and make the corrections
reasonably requested by such Selling Holder with respect to such information
prior to filing the Shelf Registration Statement or such other registration
statement or supplement or amendment thereto, and (ii) such number of copies of
the Shelf Registration Statement or such other registration statement and the
prospectus included therein and any supplements and amendments thereto as such
Persons may reasonably request in order to facilitate the public sale or other
disposition of the Registrable Securities covered by such Shelf Registration
Statement or other registration statement;

            (c) if applicable, use its commercially reasonable efforts to
register or qualify the Registrable Securities covered by the Shelf Registration
Statement or any other registration statement contemplated by this Agreement
under the securities or blue sky laws of such jurisdictions as the Selling
Holders or, in the case of an Underwritten Offering, the Managing Underwriter,
shall reasonably request, provided, however, that HEP will not be required to
qualify generally to transact business in any jurisdiction where it is not then
required to so qualify or to take any action which would subject it to general
service of process in any such jurisdiction where it is not then so subject;

            (d) promptly notify each Selling Holder and each underwriter, at any
time when a prospectus relating thereto is required to be delivered under the
Securities Act, of (i) the filing of the Shelf Registration Statement or any
other registration statement contemplated by this Agreement or any prospectus or
prospectus supplement to be used in connection therewith, or any amendment or
supplement thereto, and, with respect to such Shelf Registration Statement or
any other registration statement or any post-effective amendment thereto, when
the same has become effective; and (ii) any written comments from the Commission
with respect to any filing referred to in clause (i) and any written request by
the Commission for amendments or supplements to the Shelf Registration Statement
or any other registration statement or any prospectus or prospectus supplement
thereto;

            (e) immediately notify each Selling Holder and each underwriter, at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of (i) the happening of any event as a result of which the
prospectus or prospectus supplement contained in the Shelf Registration
Statement or any other registration statement contemplated by this Agreement, as
then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the
statements therein not

                                       6
<PAGE>

misleading in the light of the circumstances then existing; (ii) the issuance or
threat of issuance by the Commission of any stop order suspending the
effectiveness of the Shelf Registration Statement or any other registration
statement contemplated by this Agreement, or the initiation of any proceedings
for that purpose; or (iii) the receipt by HEP of any notification with respect
to the suspension of the qualification of any Registrable Securities for sale
under the applicable securities or blue sky laws of any jurisdiction. Following
the provision of such notice, HEP agrees to as promptly as practicable amend or
supplement the prospectus or prospectus supplement or take other appropriate
action so that the prospectus or prospectus supplement does not include an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing and to take such other action as is
necessary to remove a stop order, suspension, threat thereof or proceedings
related thereto;

            (f) upon request and subject to appropriate confidentiality
obligations, furnish to each Selling Holder copies of any and all transmittal
letters or other correspondence with the Commission or any other governmental
agency or self-regulatory body or other body having jurisdiction (including any
domestic or foreign securities exchange) relating to such offering of
Registrable Securities;

            (g) in the case of an Underwritten Offering, furnish upon request,
(i) an opinion of counsel for HEP, dated the effective date of the applicable
registration statement or the date of any amendment or supplement thereto, and a
letter of like kind dated the date of the closing under the underwriting
agreement, and (ii) a "cold comfort" letter, dated the effective date of the
applicable registration statement or the date of any amendment or supplement
thereto and a letter of like kind dated the date of the closing under the
underwriting agreement, in each case, signed by the independent public
accountants who have certified HEP's financial statements included or
incorporated by reference into the applicable registration statement, and each
of the opinion and the "cold comfort" letter shall be in customary form and
covering substantially the same matters with respect to such registration
statement (and the prospectus and any prospectus supplement included therein) as
are customarily covered in opinions of issuer's counsel and in accountants'
letters delivered to the underwriters in Underwritten Offerings of securities
and such other matters as such underwriters may reasonably request;

            (h) otherwise use its commercially reasonable efforts to comply with
all applicable rules and regulations of the Commission, and make available to
its security holders, as soon as reasonably practicable, an earnings statement,
which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 promulgated thereunder;

            (i) make available to the appropriate representatives of the
Managing Underwriter and Selling Holders access to such information and HEP
personnel as is reasonable and customary to enable such parties to establish a
due diligence defense under the Securities Act; provided, however, that HEP need
not disclose any information to any such representative unless and until such
representative has entered into a confidentiality agreement with HEP;

            (j) cause all such Registrable Securities registered pursuant to
this Agreement to be listed on each securities exchange or nationally recognized
quotation system on which similar securities issued by HEP are then listed;

                                       7
<PAGE>

            (k) use its commercially reasonable efforts to cause the Registrable
Securities to be registered with or approved by such other governmental agencies
or authorities as may be necessary by virtue of the business and operations of
HEP to enable the Selling Holders to consummate the disposition of such
Registrable Securities;

            (l) provide a transfer agent and registrar for all Registrable
Securities covered by such registration statement not later than the effective
date of such registration statement; and

            (m) enter into customary agreements and take such other actions as
are reasonably requested by the Selling Holders or the underwriters, if any, in
order to expedite or facilitate the disposition of such Registrable Securities.

Each Selling Holder, upon receipt of notice from HEP of the happening of any
event of the kind described in subsection (e) of this Section 2.04, shall
forthwith discontinue disposition of the Registrable Securities until such
Selling Holder's receipt of the copies of the supplemented or amended prospectus
contemplated by subsection (e) of this Section 2.04 or until it is advised in
writing by HEP that the use of the prospectus may be resumed, and has received
copies of any additional or supplemental filings incorporated by reference in
the prospectus, and, if so directed by HEP, such Selling Holder will, or will
request the managing underwriter or underwriters, if any, to deliver to HEP (at
HEP's expense) all copies in their possession or control, other than permanent
file copies then in such Selling Holder's possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

      Section 2.05. Cooperation by Holders. HEP shall have no obligation to
include in the Shelf Registration Statement units of a Holder or in a
Underwritten Offering pursuant to Section 2.02 units of a Selling Holder who has
failed to timely furnish such information that, in the opinion of counsel to
HEP, is reasonably required in order for the registration statement or
prospectus supplement, as applicable, to comply with the Securities Act.

      Section 2.06. Restrictions on Public Sale by Holders of Registrable
Securities. Each Holder of Registrable Securities who is included in the Shelf
Registration Statement agrees not to effect any public sale or distribution of
the Registrable Securities during the 30 calendar day period following
completion of a public offering of equity securities by HEP, provided, however,
that the duration of the foregoing restrictions shall be no longer than the
duration of the shortest restriction generally imposed by the underwriters on
the officers or directors or any other unitholder of HEP on whom a restriction
is imposed and provided further that such Selling Holder owns more than five
million dollars ($5,000,000) worth of the Purchased Units.

      Section 2.07. Expenses.

            (a) Certain Definitions. "Registration Expenses" means all expenses
incident to HEP's performance under or compliance with this Agreement to effect
the registration of Registrable Securities the Shelf Registration Statement
pursuant to Section 2.01, an Underwritten Offering pursuant to Section 2.02 or
Section 2.03, and the disposition of such securities, including, without
limitation, all registration, filing, securities exchange listing and The New
York Stock Exchange fees, all registration, filing, qualification and other fees
and expenses of complying with securities or blue sky laws, fees of the National
Association of Securities

                                       8
<PAGE>

Dealers, Inc., transfer taxes and fees of transfer agents and registrars, all
word processing, duplicating and printing expenses, the fees and disbursements
of counsel and independent public accountants for HEP, including the expenses of
any special audits or "cold comfort" letters required by or incident to such
performance and compliance. Except as otherwise provided in Section 2.08 hereof,
HEP shall not be responsible for legal fees incurred by Holders in connection
with the exercise of such Holders' rights hereunder. In addition, HEP shall not
be responsible for any "Selling Expenses," which means all underwriting fees,
discounts and selling commissions allocable to the sale of the Registrable
Securities.

            (b) Expenses. HEP will pay all reasonable Registration Expenses,
including, in the case of an Underwritten Offering, whether or not any sale is
made pursuant to such Underwritten Offering. Each Selling Holder shall pay all
Selling Expenses in connection with any sale of its Registrable Securities
hereunder.

      Section 2.08. Indemnification.

            (a) By HEP. In the event of a registration of any Registrable
Securities under the Securities Act pursuant to this Agreement, HEP will
indemnify and hold harmless each Selling Holder thereunder, its directors and
officers, and each underwriter, pursuant to the applicable underwriting
agreement with such underwriter, of Registrable Securities thereunder and each
Person, if any, who controls such Selling Holder or underwriter within the
meaning of the Securities Act and the Exchange Act, against any losses, claims,
damages, expenses or liabilities (including reasonable attorneys' fees and
expenses) (collectively, "Losses"), joint or several, to which such Selling
Holder or underwriter or controlling Person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Losses (or
actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the Shelf Registration Statement or any other
registration statement contemplated by this Agreement, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein (in the case of a prospectus, in light of the
circumstances under which they were made) not misleading, and will reimburse
each such Selling Holder, its directors and officers, each such underwriter and
each such controlling Person for any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such Loss or actions
or proceedings; provided, however, that HEP will not be liable in any such case
if and to the extent that any such Loss arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished by such Selling Holder, such underwriter
or such controlling Person in writing specifically for use in the Shelf
Registration Statement or such other registration statement, or prospectus
supplement, as applicable. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Selling Holder or
any such director, officer or controlling Person, and shall survive the transfer
of such securities by such Selling Holder.

            (b) By Each Selling Holder. Each Selling Holder agrees severally and
not jointly to indemnify and hold harmless HEP, its directors and officers, and
each Person, if any, who controls HEP within the meaning of the Securities Act
or of the Exchange Act to the same

                                       9
<PAGE>

extent as the foregoing indemnity from HEP to the Selling Holders, but only with
respect to information regarding such Selling Holder furnished in writing by or
on behalf of such Selling Holder expressly for inclusion in the Shelf
Registration Statement or prospectus supplement relating to the Registrable
Securities, or any amendment or supplement thereto; provided, however, that the
liability of each Selling Holder shall not be greater in amount than the dollar
amount of the proceeds (net of any Selling Expenses) received by such Selling
Holder from the sale of the Registrable Securities giving rise to such
indemnification.

            (c) Notice. Promptly after receipt by an indemnified party hereunder
of notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof, but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have
to any indemnified party other than under this Section 2.08. In any action
brought against any indemnified party, it shall notify the indemnifying party of
the commencement thereof. The indemnifying party shall be entitled to
participate in and, to the extent it shall wish, to assume and undertake the
defense thereof with counsel reasonably satisfactory to such indemnified party
and, after notice from the indemnifying party to such indemnified party of its
election so to assume and undertake the defense thereof, the indemnifying party
shall not be liable to such indemnified party under this Section 2.08 for any
legal expenses subsequently incurred by such indemnified party in connection
with the defense thereof other than reasonable costs of investigation and of
liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense and employ counsel or (ii)
if the defendants in any such action include both the indemnified party and the
indemnifying party and counsel to the indemnified party shall have concluded
that there may be reasonable defenses available to the indemnified party that
are different from or additional to those available to the indemnifying party,
or if the interests of the indemnified party reasonably may be deemed to
conflict with the interests of the indemnifying party, then the indemnified
party shall have the right to select a separate counsel and to assume such legal
defense and otherwise to participate in the defense of such action, with the
reasonable expenses and fees of such separate counsel and other reasonable
expenses related to such participation to be reimbursed by the indemnifying
party as incurred. Notwithstanding any other provision of this Agreement, no
indemnified party shall settle any action brought against it with respect to
which it is entitled to indemnification hereunder without the consent of the
indemnifying party, unless the settlement thereof imposes no liability or
obligation on, and includes a complete and unconditional release from all
liability of, the indemnifying party.

            (d) Contribution. If the indemnification provided for in this
Section 2.08 is held by a court or government agency of competent jurisdiction
to be unavailable to any indemnified party or is insufficient to hold them
harmless in respect of any Losses, then each such indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Loss in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of such indemnified party on the other in connection with the
statements or omissions which resulted in such Losses, as well as any other
relevant equitable considerations; provided, however, that in no event shall
such Selling Holder be required to contribute an aggregate amount in excess of
the dollar amount of proceeds (net of Selling Expenses) received by such Selling
Holder from the sale of Registrable Securities giving rise to such
indemnification. The relative fault of the

                                       10
<PAGE>

indemnifying party on the one hand and the indemnified party on the other shall
be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact has been made by, or relates to, information supplied by such
party, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The parties hereto
agree that it would not be just and equitable if contributions pursuant to this
paragraph were to be determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to herein. The amount paid by an indemnified party as a result of the Losses
referred to in the first sentence of this paragraph shall be deemed to include
any legal and other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any Loss which is the subject of this
paragraph. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who is not guilty of such fraudulent misrepresentation.

            (e) Other Indemnification. The provisions of this Section 2.08 shall
be in addition to any other rights to indemnification or contribution which an
indemnified party may have pursuant to law, equity, contract or otherwise.

      Section 2.09. Rule 144 Reporting. With a view to making available the
benefits of certain rules and regulations of the Commission that may permit the
sale of the Registrable Securities to the public without registration, HEP
agrees to use its commercially reasonable efforts to:

            (a) Make and keep public information regarding HEP available, as
those terms are understood and defined in Rule 144 of the Securities Act, at all
times from and after the date hereof;

            (b) File with the Commission in a timely manner all reports and
other documents required of HEP under the Securities Act and the Exchange Act at
all times from and after the date hereof; and

            (c) So long as a Holder owns any Registrable Securities, furnish to
such Holder forthwith upon request a copy of the most recent annual or quarterly
report of HEP, and such other reports and documents so filed as such Holder may
reasonably request in availing itself of any rule or regulation of the
Commission allowing such Holder to sell any such securities without
registration.

      Section 2.10. Transfer or Assignment of Registration Rights. The rights to
cause HEP to register Registrable Securities granted to the Purchasers by HEP
under this Article II may be transferred or assigned by any Purchaser to one or
more transferee(s) or assignee(s) of such Registrable Securities, provided,
however, that (a) unless such transferee is an Affiliate of such Purchaser, each
such transferee or assignee holds Registrable Securities representing at least
five million dollars ($5,000,000) worth of the Purchased Units sold pursuant to
the terms of the Purchase Agreement (except that a Purchaser who purchases less
than $5 million dollars ($5,000,000) worth of Purchased Units may assign or
transfer such registration rights if such Purchaser transfers its Purchased
Units as an entirety), (b) HEP is given written notice prior to

                                       11
<PAGE>

any said transfer or assignment, stating the name and address of each such
transferee and identifying the securities with respect to which such
registration rights are being transferred or assigned, and (c) each such
transferee assumes in writing responsibility for its portion of the obligations
of such Purchaser under this Agreement.

      Section 2.11. Limitation on Subsequent Registration Rights. From and after
the date hereof, HEP shall not, without the prior written consent of the Holders
of a majority of the outstanding Registrable Securities, enter into any
agreement with any current or future holder of any securities of HEP that would
allow such current or future holder to require HEP to include securities in any
registration statement filed by HEP on a basis that is superior in any way to
the piggyback rights granted to Purchaser hereunder.

                                  ARTICLE III.
                                  MISCELLANEOUS

      Section 3.01. Communications. All notices and other communications
provided for or permitted hereunder shall be made in writing by facsimile,
courier service or personal delivery:

            (a) if to Purchaser, to the address set forth under that Purchaser's
signature block in accordance with the provisions of this Section 3.01,

            (b) if to a transferee of Purchaser, to such Holder at the address
provided pursuant to Section 2.10 above, and

            (c) if to HEP, at 100 Crescent Court, Suite 1600, Dallas, Texas
75201, notice of which is given in accordance with the provisions of this
Section 3.01.

            All such notices and communications shall be deemed to have been
received at the time delivered by hand, if personally delivered; when receipt
acknowledged, if sent via facsimile or sent via Internet electronic mail; and
when actually received, if sent by any other means.

      Section 3.02. Successor and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including subsequent Holders of Registrable Securities to the extent
permitted herein.

      Section 3.03. Assignment of Rights. All or any portion of the rights and
obligations of any Purchaser under this Agreement may be transferred or assigned
by such Purchaser in accordance with Section 2.10 hereof.

      Section 3.04. Aggregation of Purchased Units. All Purchased Units held or
acquired by Persons who are Affiliates of one another shall be aggregated
together for the purpose of determining the availability of any rights under
this Agreement.

      Section 3.05. Recapitalization, Exchanges, etc. Affecting the Common
Units. The provisions of this Agreement shall apply to the full extent set forth
herein with respect to any and all Units of HEP or any successor or assign of
HEP (whether by merger, consolidation, sale of assets or otherwise) which may be
issued in respect of, in exchange for or in substitution of, the

                                       12
<PAGE>

Registrable Securities, and shall be appropriately adjusted for combinations,
recapitalizations and the like occurring after the date of this Agreement.

      Section 3.06. Specific Performance. Damages in the event of breach of this
Agreement by a party hereto may be difficult, if not impossible, to ascertain,
and it is therefore agreed that each such Person, in addition to and without
limiting any other remedy or right it may have, will have the right to an
injunction or other equitable relief in any court of competent jurisdiction,
enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may
have on the ground of lack of jurisdiction or competence of the court to grant
such an injunction or other equitable relief. The existence of this right will
not preclude any such Person from pursuing any other rights and remedies at law
or in equity which such Person may have.

      Section 3.07. Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but one
and the same Agreement.

      Section 3.08. Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

      Section 3.09. Governing Law. The laws of the State of Delaware shall
govern this Agreement without regard to principles of conflict of laws.

      Section 3.10. Severability of Provisions. Any provision of this Agreement
which is 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 or
affecting or impairing the validity or enforceability of such provision in any
other jurisdiction.

      Section 3.11. Entire Agreement. This Agreement is intended by the parties
as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the rights granted by HEP set forth herein. This
Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

      Section 3.12. Amendment. This Agreement may be amended only by means of a
written amendment signed by HEP and the Holders of a majority of the then
outstanding Registrable Securities; provided, however, that no such amendment
shall materially and adversely affect the rights of any Holder hereunder without
the consent of such Holder.

      Section 3.13. No Presumption. If any claim is made by a party relating to
any conflict, omission, or ambiguity in this Agreement, no presumption or burden
of proof or persuasion shall be implied by virtue of the fact that this
Agreement was prepared by or at the request of a particular party or its
counsel.

                                       13
<PAGE>

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

                                        HOLLY ENERGY PARTNERS, L.P.

                                        By:  HEP LOGISTICS HOLDINGS, LP,
                                             its general partner

                                             By:  HOLLY LOGISTIC SERVICES, LLC
                                                  its general partner

                                                   By: /s/ Stephen J. McDonnell
                                                       -------------------------
                                                       Stephen J. McDonnell
                                                       Vice President and
                                                       Chief Financial Officer

                 Signature Page to Registration Rights Agreement
<PAGE>

                                     FIDUCIARY/CLAYMORE MLP
                                     OPPORTUNITY FUND

                                     By: /s/ James J. Cunnane, Jr.
                                         --------------------------------------
                                         James J. Cunnane, Jr.
                                         Managing Director and Senior Portfolio
                                         Manager

                 Signature Page to Registration Rights Agreement
<PAGE>

                                     PERRY PARTNERS, L.P.

                                       By: PERRY CORP.
                                           its Managing General Partner

                                           By: /s/ Randall Borkenstein
                                               ------------------------------
                                               Randall Borkenstein
                                               Managing Director and Chief
                                               Financial Officer

                 Signature Page to Registration Rights Agreement
<PAGE>

                                        STRUCTURED FINANCE AMERICAS, LLC

                                        By:  /s/ Jill Rathjen
                                             -----------------------------------
                                             Jill Rathjen
                                             Officer

                                        By: /s/ Richard Kennedy
                                            ------------------------------------
                                            Richard Kennedy
                                            Officer

                 Signature Page to Registration Rights Agreement
<PAGE>

                                        KAYNE ANDERSON MLP INVESTMENT COMPANY

                                        By: /s/ James C. Baker
                                            ------------------------------------
                                            James C. Baker
                                            Vice President

                                        KAYNE ANDERSON ENERGY TOTAL
                                        RETURN FUND, INC.

                                        By: /s/ James C. Baker
                                            ------------------------------------
                                            James C. Baker
                                            Vice President

                 Signature Page to Registration Rights Agreement

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