Document:

Ex-10.2

PLEDGE
AGREEMENT

        THIS
PLEDGE AGREEMENT (the “Agreement”) dated as of August 15, 2001
is by and between LENNOX INTERNATIONAL INC. (“Pledgor”) and THE
CHASE MANHATTAN BANK, as collateral agent for itself and certain other creditors
(“Secured Party”). 

RECITALS:

        The
Pledgor has entered into that certain Intercreditor Agreement dated as of
August 15, 2001 with certain subsidiaries of the Pledgor, certain of the
Pledgor’s noteholders, other lenders party thereto, the administrative
agents of such lenders and the Secured Party (such Intercreditor Agreement, as
it may hereafter be amended 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). Under the Credit Facilities, the
Pledgor is required to execute and deliver this Agreement in favor of the
Secured Party. 

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

ARTICLE I.

Security Interest and Pledge

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

   
             
    (a)        all the  capital  stock and other  equity  securities  issued  by, and all other  ownership  interest  in, the  Material
Restricted Subsidiaries
described on Schedule 1 hereof and all other Material Restricted
Subsidiaries hereafter created or acquired and owned by Pledgor, whether any of
the foregoing are now owned or hereafter acquired, including without limitation,
the capital stock or other ownership interests described on Schedule 1; and

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

ARTICLE II.

Representations and Warranties

        
Pledgor represents and warrants to Secured Party that:

        
Section 2.1.        Title.  
Pledgor owns, and with respect to Collateral acquired after
the date hereof, Pledgor will own, legally and beneficially, the 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 the Collateral or any part thereof, except for the security interest
granted hereunder. The Collateral is not subject to any restriction on transfer
or assignment except for compliance with the

1

Financing Documents and compliance with applicable federal and state securities
laws and regulations promulgated thereunder. Pledgor has the unrestricted right to pledge the Collateral as
contemplated hereby. All of the capital stock pledged as Collateral has been
duly and validly issued and is fully paid and non-assessable. 

        
Section 2.2.        Principal Place of Business;
Jurisdiction of Organization  The
principal place of business and chief executive office of Pledgor, and the
office where Pledgor keeps its books and records, is located at 2140 Lake
Park Blvd., Richardson, Texas 75080. The Pledgor’s jurisdiction of
organization is Delaware. Within the last four months from the date hereof
Pledgor 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; nor (c) merged with or into a Person. Pledgor
does not do business and has not done business during the past five years under
any trade-name or fictitious business name.

        
Section 2.3.        Delivery of  Collateral.  
Except as provided by  Section 4.3,  Pledgor has delivered to Secured Party all Collateral the
possession of which is necessary to perfect the security interest of Secured Party therein.

ARTICLE III.

Affirmative and Negative Covenants

        Pledgor covenants and agrees with Secured
Party that:

        Section
3.1.        Delivery.  
Prior to or concurrently with the execution and delivery
of this Agreement, Pledgor shall deliver to Secured Party all certificate(s) of
capital stock identified in Section 1.1(a) hereof, accompanied by undated
stock powers or assignments, as applicable, duly executed in blank. Each time
Section 1.1(a) hereto is amended in accordance with Section 3.5 hereof
or otherwise, Pledgor shall deliver to Secured Party all new certificate(s)
identified in any Pledge Amendment delivered pursuant to Section 3.5 or
otherwise identified, accompanied by undated stock powers or assignments, as
applicable, duly executed in blank.

     
   Section 3.2.        Encumbrances.
  Pledgor 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. Pledgor shall defend Pledgor’s rights in the Collateral
and Secured Party’s security interest in the Collateral against the claims
of all Persons.

     
   Section 3.3.        Distributions.
  If Pledgor 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 Pledgor to receive cash dividends under Section 4.3 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 Pledgor 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 of Pledgor when necessary and/or
appropriate undated stock powers or assignments duly executed in blank, to be
held by Secured

2

Party as additional Collateral
for the obligations secured
hereby, subject to the terms hereof. Subject to the right of Pledgor to receive
cash dividends or other distributions under Section 4.3 hereof, all sums of
money and property so paid or distributed in respect of the Collateral that are
received by Pledgor shall, until paid or delivered to Secured Party, be held by
Pledgor in trust as additional security for the Obligations.

     
   Section 3.4.        
Additional Securities  Pledgor shall not 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, 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 Pledgor
and is delivered to Secured Party as additional Collateral in accordance with
the terms hereof to secure the obligations secured hereby.

     
   Section 3.5.        
Additional Pledged Collateral.  Pledgor shall pledge hereunder,
immediately upon its acquisition thereof, any and all additional shares of
stock, other certificates or other instruments evidencing Collateral. 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 3.5 or Section 3.3 or Section 3.4 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 Pledgor, in substantially the
form of Schedule 2 annexed hereto (a “Pledge Amendment”),
in respect of the additional property to be pledged pursuant to this Agreement.
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 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. 

     
   Section 3.6.        
Further Assurances.  At any time and from time to time, upon the
reasonable request of Secured Party, and at the sole expense of Pledgor, 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 the
Pledgor, any financing statement naming it as Secured Party and the Pledgor as
the Debtor which describes the Collateral). 

     
   Section 3.7.        
Sale of Collateral.  Pledgor shall not 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 the Financing Documents. 

    
    Section 3.8.        
Corporate Changes.  Pledgor shall not 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 Pledgor shall have given Secured Party thirty (30) days
prior written notice thereof and shall have taken all action deemed

3

necessary or
desirable by Secured Party to make each financing statement not seriously
misleading. Pledgor shall not change its principal place of business, chief
executive office or jurisdiction of organization 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. 

ARTICLE IV.

Rights of Secured Party and Pledgor

    
    Section 4.1.        
Power of Attorney.  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 PLEDGOR OR IN ITS
OWN NAME, IN SECURED PARTY’S DISCRETION, TO TAKE, WHEN AN EVENT OF DEFAULT
EXISTS, ANY AND ALL ACTION AND TO 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 EXISTS, ANY OF THE FOLLOWING WITHOUT NOTICE TO OR THE
CONSENT OF PLEDGOR:

    
                (a)
        to demand,  sue for,  collect,
or receive in the name of 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; 

    
            
    (b)
        to pay or discharge taxes, liens,
security interests, or other encumbrances levied or placed on or threatened against
the Collateral;

    
                (c)
        (i) to direct  account  debtors and any other parties liable for any payment under any of the 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 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 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. 

4

    
    THIS
POWER OF ATTORNEY 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. 

    
    Section
4.2.        Voting Rights.  
Unless an Event of Default exists, 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 Pledgor all such proxies and other
instruments as Pledgor may reasonably request for the purpose of enabling
Pledgor to exercise the voting rights which it is entitled to exercise pursuant
to this Section. 

    
    Section 4.3.        
Dividends.  Unless an Event of Default exists, Pledgor shall be
entitled to receive and retain any dividends paid on the Collateral in cash to
the extent and only to the extent that such dividends are permitted by the
Credit Facilities and applicable law. 

     
   Section 4.4.        
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 Pledgor 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 Pledgor may
reasonably request in writing, but no failure or omission or delay by Secured
Party in complying with any such request by Pledgor, and no refusal by Secured
Party to comply with any such request by Pledgor, shall be deemed to be a
failure to exercise reasonable care. 

ARTICLE V.

Default

    
    Section 5.1.   
     Rights and Remedies.  
If any Event of Default occurs, Secured Party shall have the following rights and remedies:

     
           
    (a)        
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 Uniform Commercial Code as adopted by the State of Texas 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 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

5

law) sale free of
any right or equity of redemption in Pledgor, which right or equity is hereby
expressly waived and released by Pledgor. Upon the request of Secured Party,
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 Pledgor and Secured Party. 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. 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. Pledgor shall remain liable for any
deficiency if the proceeds of any sale or disposition of the Collateral are
insufficient to pay the obligations secured hereby. Pledgor waives all rights of
marshaling in respect of the Collateral. 

     
           
    (b)        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.

     
           
    (c)        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.

     
           
    (d)        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. 

     
           
    (e)        
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. 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. 

6

ARTICLE VI.

Miscellaneous

    
    Section 6.1.        
Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the Pledgor and Secured Party and their respective
successors and assigns, except that Pledgor may not assign any of its rights or
obligations under this Agreement without the prior written consent of the
Lenders. 

     
   Section 6.2.        
AMENDMENT; ENTIRE AGREEMENT.  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, 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. 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 amendment, waiver or other
modification shall without the consent of all the Lenders modify the terms of
Section 3.7 or this Section 6.2. 

     
   Section 6.3.   
     Notices.  All notices and other
communications provided for in this Agreement shall be given or made in accordance with
the Credit Agreements.

    
    Section 6.4.    
    Applicable Law.  This Agreement shall be
governed by and  construed in accordance  with the laws of the State of Texas
and the applicable laws of the United States of America.

     
   Section 6.5.        
Headings.  
The headings, captions and arrangements used in this Agreement are for convenience only and shall not affect
the interpretation of this Agreement.

     
   Section 6.6.        
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.

     
   Section 6.7.        
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. 

7

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

PLEDGOR

   
             
             
      LENNOX INTERNATIONAL INC.

               
              
              
              
              
By:______________________________________________

   
              
               
              
           
Richard A. Smith, Executive Vice President

              
            
        and Chief Financial Officer

   
   Secured Party:

             
             
             
 
THE CHASE MANHATTAN BANK,

             
 as Collateral Agent

   
               
              
              
              
             
By:______________________________________________

   
              
               
  Allen King, Vice President

	STATE OF TEXAS	§

	 	§

	COUNTY OF____________________	§

     
   The foregoing instrument was
acknowledged before me this _____ day of August 2001 by Richard A. Smith, the
Executive Vice President and Chief Financial Officer of LENNOX INTERNATIONAL INC.,
a Delaware corporation, on behalf of said corporation.

_____________________________________

Notary Public, State of Texas        
                

_____________________________________

Printed Name of Notary Public        
             

[S E A L ]

My Commission Expires:

______________________

8

Schedule 1

       to

PLEDGE AGREEMENT

Collateral

	Issuer	Ownership Interest	Number of
Shares	Certificate
Number	     
                       Par Value

                            (per share)
	Armstrong Air Conditioning Inc.	Common Stock	       
                    1,030 shares	2, 3, 4, and 5	        
                       $1.00
	Excel Comfort Systems Inc.	Common Stock	       
                    1,000 shares	1	       
                        $1.00
	Lennox Industries Inc.	Common Stock	      
                 994,394 shares	C8196,
C8197,
C8198,C8199	       
                        $0.01
	Service Experts Inc.	Common Stock	       
                    1,000 shares	1	       
                        $0.01

Solo Page

Schedule 2

       to

PLEDGE AGREEMENT

Pledge Amendment

         This Pledge Amendment, dated
_____________,  ____,  is delivered  pursuant to  Section 3.5  of the Pledge  Agreement  referred to below.  The
undersigned  hereby agrees that this Pledge  Amendment may be attached to the Pledge  Agreement dated as of August 15,  2001 between the undersigned and THE
CHASE  MANHATTAN  BANK, as  collateral  agent,  as secured party (the "Pledge  Agreement",  capitalized  terms defined  therein being used herein as therein
defined).  Schedule 1 to the Pledge  Agreement is 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.

             
             
             
      
LENNOX INTERNATIONAL INC.

   
              
              
               
       
By:___________________________________________________________

   
              
               
               
       Name:_________________________________________________________

              
              
               
           
Title:__________________________________________________________

	      
                            
                Issuer	     
                 Ownership Interest	     
                  Number of 

                           
                       Shares	Certificate
Number	          
                Par Value
          (per share)<PAGE>
                                                                   EXHIBIT 10.61

            SETTLEMENT AGREEMENT, MUTUAL RELEASE AND WAIVER OF CLAIMS

         THIS SETTLEMENT AGREEMENT, MUTUAL RELEASE AND WAIVER OF CLAIMS
(hereinafter "Agreement") is made and entered into by and between Aquis
Communications Group, Inc. ("Aquis"), John B. Frieling, Brian Plunkett, Patrick
Egan, Michael Salerno and Robert Davidoff, on the one hand (Aquis and the
foregoing individuals are hereinafter collectively referred to at times as the
"Aquis Parties"), and John X. Adiletta ("Adiletta") and Teleservices Group,
Inc., on the other hand (Adiletta and Teleservices Group, Inc. are hereinafter
collectively referred to at times as the "Adiletta Parties"). The foregoing
parties may also be referred to collectively as the "Parties."

                                   WITNESSETH

         WHEREAS, Aquis and Adiletta are parties to that certain Settlement
Agreement and Release and Waiver of Claims dated as of April 4, 2000 (the "Prior
Settlement Agreement"), a true and correct copy of which is attached hereto as
Exhibit A;

         WHEREAS, in connection with the Prior Settlement Agreement, the Parties
executed certain other agreements and instruments, including (1) that certain
Promissory Note executed by Adiletta on April 5, 2000 (the "Promissory Note"), a
true and correct copy of which is attached hereto as Exhibit B; (2) that certain
"Aquis Communications Group, Inc. Amended and Restated Nonqualified Stock Option
Agreement" made and entered into as of April 4, 2000 between Aquis and Adiletta
(the "Option Agreement"), a true and correct copy of which is attached hereto as
Exhibit C; and (3) that certain Side Agreement made as of April 5, 2000 between
Aquis and Adiletta (the "Side Agreement"), a true and correct copy of which is
attached hereto as Exhibit D;

         WHEREAS, Aquis fied an action against Adiletta in the Superior Court of
New Jersey, Law Division, Morris County, Docket No. MRS-L-395-01 (the "Morris
County Action") seeking to enforce the Promissory Note;

         WHEREAS, Adiletta fied a responsive pleading in the Morris County
action which included an Answer, and a Counterclaim and Third Party Complaint
asserting claims against the Aquis Parties, including claims arising under the
Prior Settlement Agreement;

         WHEREAS, Teleservices Group, Inc. filed an action against Frieling in
the Superior Court of New Jersey, Law Division, Essex County, Docket No.
L-10367-00 (the "Essex County Action");

         WHEREAS, the Aquis Parties and the Adiletta Parties desire to enter
into a full and complete settlement of all differences and outstanding claims
between them, not only of claims that are the subject of the Morris County
Action or the Essex County Action, subject to the terms and conditions set forth
herein.

         NOW, THEREFORE, in consideration of the mutual promises herein
contained, and intending to be legally bound hereby, it is agreed as follows:

<PAGE>

1.       This Agreement shall be effective as of the last date on which it is
         executed by any of the Parties hereto (the "Effective Date").

2.       As consideration for this Agreement, the Aquis parties agree to the
         following terms:

                  a.       Aquis agrees to and shall pay the Adiletta Parties
                           the sum of One Hundred and Seventeen Thousand Five
                           Hundred Dollars ($117,000.00) (hereinafter the
                           "Settlement Amount"). The parties intend and agree
                           that Fifty Thousand Dollars ($50,000.00) of the
                           Settlement Amount is to be allocated as reimbursement
                           for expenses. The Settlement Amount shall be paid as
                           follows: A wire transfer from Aquis for the full
                           Settlement Amount to "Dollinger & Dollinger as
                           attorneys for John X. Adiletta and Teleservices
                           Group, Inc.," which shall be wired on the Effective
                           Date of this Agreement, subject to the conditions set
                           forth in this Agreement. The entire Settlement Amount
                           is a sum of money the Adiletta Parties are entitled
                           to receive only by virtue of this settlement of
                           pending litigation.

                  b.       Aquis agrees to and shall release the indebtedness
                           reflected in the Promissory Note, as well as any
                           interest or other charges accrued under the Note.
                           Aquis shall surrender the Note by delivering it to
                           Adiletta's aforesaid counsel by overnight mail so as
                           to be received no later than the third (3rd) day
                           after the Effective Date of this Agreement, subject
                           to the conditions set forth in this Agreement. If the
                           Note can not be located, Aquis will provide an
                           affidavit to that effect. Aquis represents and
                           warrants that the Promissory Note has not been
                           pledged, hypothecated, assigned or otherwise
                           transferred to an unrelated third party. Aquis shall
                           not report as income taxable to Adiletta attributable
                           to the transactions contemplated by this Agreement an
                           amount in excess of the sum of (a) the Settlement
                           Amount minus the Fifty Thousand Dollars ($50,000.00)
                           allocated as reimbursement for expenses, and (b) the
                           Fifty Thousand Dollars (50,000.00) principal amount
                           of the Promissory Note (as defined below), which is
                           all that remained due on said Promissory Note prior
                           to the execution of this Agreement.

3.       As consideration for this Agreement, the Adiletta Parties agree to the
         following terms:

                  a.       Each of the Adiletta Parties hereby covenants,
                           represents, warrants, acknowledges and agrees that
                           neither Adiletta nor Teleservices Group, nor any
                           person acting in concert with either of them, nor any
                           family member (defined for this purpose to include
                           Adiletta's spouse and children) or company,
                           partnership or trust in which either of them (or such
                           family member or person) owns five (5%) percent or
                           more of its equity or voting interests or for which
                           Adiletta serves as an employee, agent, officer,
                           director, or partner owns, directly or indirectly,
                           any equity or voting interests or direct or indirect
                           rights or options to acquire any voting securities or
                           other equity interests of Aquis or any of its
                           divisions, groups, affiliates, immediate or remote
                           parent or subsidiary entities, or successors or
                           predecessors in interest ("Aquis Securities"), as of
                           the date of the Adiletta Parties' execution of this
                           Agreement (the "Execution Date"), with the exception
                           of Adiletta's Settlement Options, as defined below,
                           which options Adiletta is giving up and forfeiting to
                           Aquis as of the Execution Date of this Agreement.
                           Notwithstanding the foregoing, this Agreement does
                           not in any way prohibit any of the Adiletta Parties
                           or the family members from owning an interest in a
                           mutual fund which may or may not own an Aquis
                           Security.

<PAGE>

         b.                Each of the Adiletta Parties hereby covenants,
                           represents, warrants, acknowledges and agrees to give
                           up and forfeit any and all options to purchase Aquis
                           Securities which either of them currently owns,
                           including but not limited to the Settlement Options
                           which were the subject of the Prior Settlement
                           Agreement and related Option Agreement. Adiletta will
                           give up the Settlement Options by surrendering the
                           Option Agreement and by agreeing that the Option
                           Agreement and the Option referenced therein shall be
                           and hereby is terminated, null and void, and of no
                           further force and effect. Adiletta hereby
                           acknowledges, represents, covenants and agrees that
                           all remaining options in Aquis Stock previously
                           granted to or otherwise acquired by him have been
                           terminated and are null and void.

         c.                Neither Adiletta, nor any person acting in concert
                           with him, nor any family member (defined for this
                           purpose to include his spouse and children) or
                           company, partnership or trust in which Adiletta (or
                           such family member or person) owns five (5%) percent
                           or more of its equity or voting interests or for
                           which Adiletta serves as an employee, agent, officer,
                           director, or partner, will at any time on or after
                           the Execution Date: (i) acquire, offer to acquire, or
                           agree to acquire, directly or indirectly, by purchase
                           or otherwise, any voting securities or direct or
                           indirect rights or options to acquire any Aquis
                           Securities; (ii) make, or in any way participate,
                           directly or indirectly, in any "solicitation" of
                           "proxies" to vote (as such terms are interpreted in
                           the proxy rules of the Securities and Exchange
                           Commission), or seek to advise or influence any
                           person or entity with respect to the voting of any
                           Aquis Securities, or (iii) form, join or in any way
                           participate in a "group" within the meaning of
                           Section 13(d)(3) of the Securities Exchange Act of
                           1934 with respect to any Aquis Securities for the
                           purpose of seeking to control the management, Board
                           of Directors or policies of Aquis, or for any other
                           purpose. Further, the parties acknowledge that Aquis
                           would not have an adequate remedy at law for money
                           damages in the event that this covenant were not
                           performed in accordance with its terms and therefore
                           Adiletta agrees that Aquis shall be entitled to
                           specific enforcement of the terms hereof in addition
                           to any other remedy to which it may be entitled, at
                           law or in equity.

<PAGE>

4.       The Adiletta Parties will receive appropriate tax documentation for the
         consideration received hereunder from Aquis, which shall be an IRS Form
         1099.

5.       The Parties acknowledge and agree that the foregoing consideration
         represents a full and complete settlement of the claims and allegations
         raised or which could have been raised in the Morris County Action, the
         Essex County Action, or otherwise. The parties further agree that the
         Morris County Action and the Essex County Action each shall be
         dismissed with prejudice no later than ten (10) calendar days after the
         Effective Date, which shall be accomplished through the Parties' joint
         filing of stipulations of dismissal in form substantially the same as
         Exhibit E hereto.

6.       As a material inducement for the Aquis Parties to enter into this
         Agreement, the Adiletta Parties, on behalf of themselves, the Adiletta
         Releasees, their collective predecessors, successors and assigns,
         hereby unconditionally release, discharge and acquit the Aquis Parties,
         their owners, stockholders, predecessors, successors, assigns, agents,
         directors, officers, current and former employees, representatives,
         attorneys, divisions, groups, subsidiaries, affiliates and parent
         companies, as well as any parent companies' owners, stockholders,
         predecessors, successors, heirs, executors, administrators, assigns,
         agents, directors, officers, current and former employees,
         representatives, divisions, groups, subsidiaries and affiliates, and
         all persons acting by, through, under, or in concert with any of them,
         or any of them (collectively, the "Aquis Releasees") from all actions,
         claims, causes of action, charges, suits, debts, dues, sums of money,
         accounts, reckonings, bonds, bills, specialties, covenants, contracts,
         controversies, agreements, promises, variances, trespasses, damages,
         judgments, extents, demands, or any other type of relief of any nature
         whatsoever, whether known or unknown, whether statutory or common law,
         whether federal, state, or local, which the Adiletta Parties, the
         Adiletta Releasees (as defined below), or any of them, has asserted or
         could have asserted, now has, or ever had, against the Aquis Parties or
         the Aquis Releasees from the beginning of time to the Effective Date of
         this Agreement. The Adiletta Parties represent they know of no claim
         they have against the Aquis Parties other than those raised in the
         Morris County Action and the Essex County Action.

7.       As a material inducement for the Adiletta Parties to enter into this
         Agreement, the Aquis Parties, on behalf of themselves, the Aquis
         Releasees, their collective predecessors, successors and assigns,
         hereby unconditionally release, discharge and acquit the Adiletta
         Parties, their owners, stockholders, predecessors, successors, assigns,
         agents, directors, officers, current and former employees,
         representatives, attorneys, divisions, groups, subsidiaries, affiliates
         and parent companies, as well as any parent companies' owners,
         stockholders, predecessors, successors, heirs, executors,
         administrators, assigns, agents, directors, officers, current and
         former employees, representatives, divisions, groups, subsidiaries and
         affiliates, and all persons acting by, through, under, or in concert
         with any of them, or any of them (collectively, the "Adiletta
         Releasees") from all actions, claims, causes of action, charges, suits,
         debts, dues, sums of money, accounts, reckonings, bonds, bills,
         specialties, covenants, contracts, controversies, agreements, promises,
         variances, trespasses, damages, judgments, extents, demands, or any
         other type of relief of any nature whatsoever, whether known or
         unknown, whether statutory or common law, whether federal, state, or
         local, which the Aquis Parties, the Aquis Releasees, or any of them,
         has asserted or could have asserted, now has, or ever had, against the
         Adiletta Parties or the Adiletta Releasees from the beginning of time
         to the Effective Date of this Agreement. The Aquis Parties represent
         that they know of no claim they have against the Adiletta Parties other
         than those raised in the Morris County Action and the Essex County
         Action.

<PAGE>

8.       It is the purpose of the mutual waiver and release paragraphs of this
         Agreement for the parties to effect a full general release of each
         other, except with respect to specifcally stated exceptions or
         obligations stated hereunder. The Parties acknowledge and agree that
         the foregoing releases specifically include and resolve any and all
         claims (in addition to those above) for related costs and/or attorneys'
         fees. This Agreement and the releases hereunder are without prejudice
         to the Parties' right to enforce the terms and conditions of this
         Agreement.

9.       The Adiletta Parties agree that they will be responsible for any income
         tax liability which may be imposed on the receipt of consideration
         provided hereunder, including but not limited to the Settlement Amount.

l0.      The Adiletta Parties agree that they will not voluntarily assist others
         in bringing any type of claim against any of the Aquis Parties or any
         of the Aquis Releasees, involving any matter allegedly occurring and/or
         occurring in the past up to the date of this Agreement, or involving
         and based upon any claims which are the subject of this Agreement.
         Adiletta acknowledges and agrees that his employment with Aquis has
         ended, that he will never knowingly apply for employment with Aquis or
         any group, division, subsidiary or affiliate of Aquis, and that he will
         not be so employed or have any business relationship with Aquis, unless
         requested to do so by Aquis in writing. Adiletta further agrees that he
         is waiving any claim which he may have to reinstatement with Aquis
         under any contractual, statutory or common law cause of action. The
         Adiletta Parties and the Aquis Parties agree that each shall not
         defame, slander, or libel one another. The Aquis Parties agree that
         they will not voluntarily assist others in bringing any type of claim
         against any of the Adiletta Parties or any of the Adiletta Releasees,
         involving any matter allegedly occurring and/or occurring in the past
         up to the date of this Agreement, or involving and based upon any
         claims which are the subject of this Agreement.

11.      This Agreement shall not in any way be construed as an admission of any
         acts of wrongdoing whatsoever by any Party, with all Parties
         specifically disclaiming any wrongdoing or liability of any kind.

12.      Each Party represents that it has not heretofore assigned or
         transferred, or purported to assign or transfer, to any person or
         entity, any claim or any portion of a claim covered by this Agreement.

13.      Each Party represents and acknowledges that in executing this
         Agreement, he does not rely, and has not relied, upon any
         representation or statement made by any other Party, or any of the
         Releasees or their agents, representatives or attorneys with regard to
         the subject matter, basis, content or effect of this Agreement or
         otherwise. The Adiletta Parties specifically represent and acknowledge
         that they are not relying upon any representation or statement made by
         any other Party, or any of the Releasees or their agents,
         representatives or attorneys with regard to the financial condition or
         any other aspect of the Company, and that the Adiletta Parties have
         requested disclosure of and received all material information
         necessary for them to make an informed decision regarding this
         Agreement.

<PAGE>

14.      Each Party acknowledges that prior to the execution of this Agreement,
         the Party sought the advice and counsel of that Party's attorney
         regarding the contents of this Agreement. Each and every Party hereto
         acknowledges that the Party has entered into this Agreement knowingly,
         voluntarily and of his own free will.

15.      This Agreement shall be binding upon the Aquis Parties and the Adiletta
         Parties, and upon their respective heirs, administrators,
         representatives, executors, successors and assigns, if any, and shall
         inure to the benefit of the Aquis Parties, the Aquis Releasees, the
         Adiletta Parties, the Adiletta Releasees, and each of them, and to
         their respective heirs, administrators, representatives, executors,
         successors and assigns, if any.

16.      This Agreement is made in the State of New Jersey and shall in all
         respects be interpreted, enforced and governed under the laws of said
         State, without regard to its choice of law provisions, as well as the
         laws of the United States of America. The language of all parts of this
         Agreement shall in all cases be construed as a whole and according to
         its fair meaning.

17.      Should any word, phrase, sentence, paragraph, clause or provision of
         this Agreement be declared or be determined by any court or other
         tribunal to be illegal of invalid, the validity of the remaining parts,
         terms or provision shall not be affected thereby and said illegal or
         invalid part, term, or provision shall be deemed not to be a part of
         this Agreement.

18.      As used in this Agreement, the singular or plural shall be deemed to
         include the other whenever the context so indicates or requires.

19.      The Parties hereto shall take such further action and execute such
         further instruments or documents as may be reasonably necessary to
         effectuate the purpose and intent of this Agreement.

20.      This written Agreement sets forth the entire agreement and
         understanding among the parties hereto, and fully supersedes any and
         all prior agreements or understandings between the parties hereto
         pertaining to the subject matter hereof, including the Option
         Agreement, which is nullified as provided above, but excluding the Side
         Agreement, which shall remain in full force and effect; provided,
         however, that the Prior Settlement Agreement shall be superseded hereby
         in some respects, but shall remain in full force and effect in certain
         other respects, as follows: (a) Paragraph 1 of the Prior Settlement
         Agreement reciting the consideration by Aquis for that Prior Settlement
         Agreement shall be and hereby is rescinded, superseded, void, nullified
         and of no further force and effect; (b) Paragraph 2 and Paragraph 5 of
         the Prior Settlement Agreement shall remain valid, enforceable, and in
         full force and effect; (c) Paragraph 3 of the Prior Settlement
         Agreement remains valid, enforceable, and in full force and effect,
         except that the Parties' right to enforce the Prior Settlement
         Agreement shall remain valid only to the extent that provisions and
         terms of that Prior Settlement Agreement are hereby preserved; and (d)
         all other terms and provisions of the Prior Settlement Agreement shall
         remain valid, enforceable, and in full force and effect, except to the
         extent expressly modified or superseded by this Agreement.

<PAGE>

21.      The failure of any Party to require the performance of any term or
         obligation of this Agreement or the waiver by any Party of any breach
         of this Agreement, shall not prevent any subsequent enforcement of such
         term or obligation and shall not be deemed a waiver of any subsequent
         breach. No modification or waiver of any provision of this Agreement
         shall be effective unless in writing and signed by all Parties.

22.      This Agreement may be executed through the use of separate signature
         pages in multiple originals and in counterparts, each of which shall be
         deemed an original and all of which together shall constitute one and
         the same Agreement, binding on all parties, notwithstanding that all
         parties are not signatories to the same counterpart. The parties shall
         exchange original signed Agreements as soon as practicable following
         delivery and execution as aforesaid.

                  PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES
                     A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS

<PAGE>

                                               AQUIS COMMUNICATIONS GROUP, INC.

                                               By: /s/ John B. Frieling
                                                  -----------------------------
                                               Name: John B. Frieling
                                                    ---------------------------
                                               Title: Chief Executive Officer
                                                     --------------------------

                                               JOHN B. FRIELING

Date:  10/16/01                                /s/ John B. Frieling
      -----------                              ---------------------------------

                                               BRIAN PLUNKETT

Date:  10/16/01                                /s/ Brian Plunkett
      -----------                              ---------------------------------

                                               PATRICK EGAN

Date:                                          /s/ Patrick M. Egan
      -----------                              ---------------------------------

                                               MICHAEL SALERNO

Date:                                          /s/ Michael E. Salerno
      -----------                              ---------------------------------

                                               ROBERT DAVIDOFF

Date:                                          /s/ Robert Davidoff
      -----------                              ---------------------------------

<PAGE>

                                               JOHN X. ADILETTA

Date:                                          /s/ John X. Adiletta
      -----------                              ---------------------------------

                                               TELESERVICES GROUP, INC.

                                               By: /s/ John X. Adiletta
                                                  -----------------------------
                                               Name:
                                                    ---------------------------
                                               Title:
                                                     --------------------------

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