Document:

exv10w2

 

EXHIBIT 10.2

 

PARTICIPATION AGREEMENT

Dated as of June 22, 2006

among

LENNOX PROCUREMENT COMPANY INC.,

as Lessee,

LENNOX INTERNATIONAL INC., as Guarantor,

BTMU CAPITAL CORPORATION, as Lessor,

MHCB (USA) LEASING AND FINANCE CORPORATION,

as initial holder of all of the Notes,

and

MHCB (USA) LEASING AND FINANCE CORPORATION,

Administrative Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	SECTION I DEFINITIONS; INTERPRETATION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	SECTION II ACQUISITION AND LEASE; NATURE OF TRANSACTION	 	 	1	 
	 
	 

	 	SECTION 2.1.
	 	Agreement To Acquire And Lease
	 	 	1	 
	 

	 	SECTION 2.2.
	 	Funding Of Acquisition Costs
	 	 	2	 
	 

	 	SECTION 2.3.
	 	Equity Investment Yield, Interest Fees; Adjustment
of Basic Rent
	 	 	2	 
	 

	 	SECTION 2.4.
	 	Characterization of the Lease
	 	 	4	 
	 

	 	SECTION 2.5.
	 	Amounts Due Under Lease
	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	SECTION III CONDITIONS PRECEDENT	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	SECTION IV REPRESENTATIONS	 	 	10	 
	 
	 

	 	SECTION 4.1.
	 	Representations of Lessee
	 	 	10	 
	 

	 	SECTION 4.2.
	 	Representations Of Lessor
	 	 	14	 
	 

	 	SECTION 4.3.
	 	Representations of Guarantor
	 	 	15	 
	 

	 	SECTION 4.4.
	 	Representations of Administrative Agent
	 	 	19	 
	 

	 	SECTION 4.5.
	 	Representations of Lenders
	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	SECTION V COVENANTS	 	 	20	 
	 
	 

	 	SECTION 5.1.
	 	Covenants of Lessee
	 	 	20	 
	 

	 	SECTION 5.2.
	 	Covenants of Lessor
	 	 	22	 
	 

	 	SECTION 5.3.
	 	Covenants of Guarantor
	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	SECTION VI TRANSFERS BY LESSOR AND LENDERS	 	 	28	 
	 
	 

	 	SECTION 6.1.
	 	Transfers by Lessor or Lender
	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	SECTION VII INDEMNIFICATION	 	 	28	 
	 
	 

	 	SECTION 7.1.
	 	General Indemnification
	 	 	28	 
	 

	 	SECTION 7.2.
	 	Environmental Indemnity
	 	 	30	 
	 

	 	SECTION 7.3.
	 	Proceedings In Respect Of Claims
	 	 	31	 
	 

	 	SECTION 7.4.
	 	General Tax Indemnity
	 	 	33	 
	 

	 	SECTION 7.5.
	 	Increased Costs, Etc.
	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	SECTION VIII MISCELLANEOUS	 	 	39	 
	 
	 

	 	SECTION 8.1.
	 	Survival of Agreements
	 	 	39	 
	 

	 	SECTION 8.2.
	 	Notices
	 	 	40	 
	 

	 	SECTION 8.3.
	 	Counterparts
	 	 	40	 
	 

	 	SECTION 8.4.
	 	Amendments; Release
	 	 	40	 

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	 	SECTION 8.5.
	 	Headings, etc
	 	 	40	 
	 

	 	SECTION 8.6.
	 	Parties in Interest
	 	 	40	 
	 

	 	SECTION 8.7.
	 	GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVERS
	 	 	40	 
	 

	 	SECTION 8.8.
	 	Expenses
	 	 	42	 
	 

	 	SECTION 8.9.
	 	Severability
	 	 	42	 
	 

	 	SECTION 8.10.
	 	Limited Liability of Lessor
	 	 	42	 
	 

	 	SECTION 8.11.
	 	Closing
	 	 	43	 
	 

	 	SECTION 8.12.
	 	Existing Lennox Leases
	 	 	43	 
	 
	 	 	 	 	 	 	 	 
	APPENDIX A Definitions and Interpretation	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SCHEDULES	 	 	 	 
	SCHEDULE 8.2 Notice Information; Wire Information	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXHIBITS	 	 	 	 
	EXHIBIT A Form of Mortgage	 	 	 	 
	EXHIBIT B Form of Assignment of Lease	 	 	 	 
	EXHIBIT C Form of Environmental Audit Reliance Letter	 	 	 	 
	EXHIBIT D Form of Lessor Confirmation	 	 	 	 
	EXHIBIT E Form of Subordination Agreement	 	 	 	 
	EXHIBIT F Form of Certification from Transferee of Lessor	 	 	 	 

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PARTICIPATION AGREEMENT

     THIS AGREEMENT, dated as of June 22, 2006 (as it may be amended or modified from time to time
in accordance with the provisions hereof, this “Agreement”), is among LENNOX PROCUREMENT
COMPANY INC., a Delaware corporation (together with its successors and permitted assigns,
“Lessee”), LENNOX INTERNATIONAL, INC., a Delaware corporation (together with its successors
and permitted assigns, “Guarantor”), BTMU CAPITAL CORPORATION, a Delaware corporation, as
Lessor (together with its successors and assigns, the “Lessor”), MHCB (USA) LEASING AND
FINANCE CORPORATION, a New York corporation (“MHCB”), as initial holder of all of the Notes
(together with its successors and assigns, “Lender”), and MHCB, as administrative agent
(together with its successors and permitted assigns, “Administrative Agent”).

PRELIMINARY STATEMENT

     In accordance with the terms and provisions of this Agreement, the Lease, the Credit Agreement
and the other Operative Documents, (i) Lessor contemplates acquiring the Property, and leasing the
Property to Lessee, (ii) Lessor wishes to obtain, and each of the Lenders are willing to provide,
financing of a portion of the funding of the acquisition of the Property, (iii) Lessee wishes to
lease the Property from Lessor, and (iv) Guarantor is willing to provide its Guaranty to the
beneficiaries named therein.

     In consideration of the mutual agreements contained in this Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

SECTION I

DEFINITIONS; INTERPRETATION

     Unless the context shall otherwise require, capitalized terms used and not defined herein
shall have the meanings assigned thereto in Appendix A hereto for all purposes hereof; and
the rules of interpretation set forth in Appendix A hereto shall apply to this Agreement.

SECTION II

ACQUISITION AND LEASE;

NATURE OF TRANSACTION

     SECTION 2.1. Agreement To Acquire And Lease. The Seller and the Buyer have entered
into the Purchase Agreement, pursuant to which Seller has agreed to sell the Property to the Buyer
and the Buyer has agreed to purchase the Property, subject, each case, to satisfaction of certain
conditions precedent. Effective as of the effective date of this Agreement (also sometimes herein
referred to as the Closing Date), subject to all conditions precedent in this Agreement, (i) Buyer
is assigning its rights under the Purchase Agreement to Lessor, (ii) Lessor is advancing the
purchase price required by the Purchase Agreement for the Property using the proceeds of the Loan
and the Equity Investment, and thereby acquiring fee simple interest in the Property, subject to
the Permitted Liens, (iii) Lessor is leasing the Property to Lessee pursuant to the Lease, and (iv)
Lessee is leasing the Property from Lessor pursuant to the Lease. Also effective as of the Closing
Date, the parties to this Agreement are joining with Seller in

 

 

executing the Escrow Agreement which will supplement the Purchase Agreement to establish the
terms and conditions of (A) the release from escrow and delivery of (i) Seller’s deed, which will
convey the Property to Lessor, and of the Operative Documents to Lessor, (B) the delivery of the
purchase price for the Property required by the Purchase Agreement, and (C) the release
(defeasance) of a lien against the Property, which was granted by Seller to secure financing
previously obtained. As provided in the Escrow Agreement, the rights and obligations of the
parties thereunder will not be subject to any conditions precedent set forth herein, nor will they
be contingent upon any delivery or release from escrow of this Agreement or other Operative
Documents. In connection with the Purchase Agreement (as modified and supplemented by the Escrow
Agreement), Lessee will be acting and is hereby authorized to act as Lessor’s agent to perform on
its behalf any obligations that may arise under such Agreement, including execution and delivery of
the Purchase Agreement Documents, other than the acceptance of the conveyance of the Property and
payment of the purchase price therefor.

SECTION 2.2. Funding Of Acquisition Costs

          (a) Funding and Payment of Purchase Price for Property on Closing Date. Subject to
the terms and conditions of this Agreement and the other Operative Documents, on the Closing Date,
the Lenders shall, make a term loan to Lessor in an amount equal to $32,962,395.40 (the
“Loan”) and the Lessor, together with its own funds in the amount of $8,240,598.85 (such
amount, less any Additional Payment made pursuant to the Lease, plus all Yield capitalized pursuant
to Section 2.3(a), the “Equity Investment”), shall acquire the Property from the Seller and
lease the Property to Lessee pursuant to the Lease. Guarantor shall guaranty the obligations of
Lessee under the Lease and the other Operative Documents to which it is a party pursuant to the
Guaranty.

          (b) Adjustments Following any Additional Payment. If, pursuant to the Lease, Lessor
requires that Lessee pay the Additional Payment and Lessee complies with its obligation to pay the
Additional Payment, then commencing on each Payment Date after payment by Lessee of the Additional
Payment, the Yield payable with respect to the Equity Investment shall not be paid by Lessee, but
rather shall be capitalized and added to the outstanding principal of the Equity Investment on the
applicable Payment Date, until (but only until) all such amounts capitalized and added to the
principal of the Equity Investment equals the Additional Payment. In no event will any payment of
accrued Yield in excess of the Additional Payment be excused by this provision, and all Yield
capitalized pursuant to this provision will be included in the principal balance of the Equity
Investment used to compute subsequently accruing Yield.

SECTION 2.3. Equity Investment Yield, Interest Fees; Adjustment of Basic Rent 

     (a) Yield on Equity Investment. The Equity Investment outstanding from time to time
shall accrue yield (“Yield”) at a rate equal to the LIBOR Rate plus the Applicable Margin
computed using the actual number of days elapsed and a 360-day year. As provided in the preceding
section, however, any payment of the Additional Payment shall be applied to the reduction of the
Equity Investment on the date received, and on each Payment Date thereafter Yield shall not be
payable, but rather shall be capitalized and added to the Equity Investment, until the first
Payment Date after all such capitalized Yield equals or exceeds the Additional

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Payment. No Yield shall be payable on such Additional Payment. If all or a portion of the
principal amount of or Yield on the Equity Investment shall not be paid when due then, without
limiting the rights of Lessor under the Lease, such overdue amount shall, accrue yield at the
Overdue Rate from the initial due date until paid in full (as well after as before judgment).

          (b) Interest on the Loan. The outstanding principal amount of the Loan shall accrue
interest at a rate equal to the LIBOR Rate plus the Applicable Margin (the “Interest
Rate”), computed using the actual number of days elapsed and a 360-day year. If all or a
portion of the principal amount of or interest on a Loan shall not be paid when due, such overdue
amount shall accrue interest at the Overdue Rate from the initial due date until paid in full (as
well as before judgment).

          (c) Fees. Lessee agrees to pay the Structuring Fee to Lessor and the Participation
Fee to Lender, in each case, on the Closing Date.

          (d) Rate Determinations. Unless Administrative Agent shall notify the parties hereto
to the contrary, on or prior to the commencement of each Rent Period, Lessor, on behalf of
Administrative Agent, shall determine the LIBOR Rate or Alternative Rate, as applicable, and on
each Calculation Date, any change in the Applicable Margin, which determinations shall be
conclusive absent manifest error, and shall provide notice to the Lenders of such determination of
the LIBOR Rate or Alternative Rate, and notice to Lessee and the Lenders of any change in the
Applicable Margin.

          (e) Adjustment of Basic Rent. The parties hereto acknowledge that on the Closing Date
Lessor will enter into an Interest Rate Swap Agreement pursuant to which Lessor will agree to pay
to the counterparty thereunder the fixed payments of Basic Rent due from Lessee pursuant to the
Lease and the swap counterparty will agree to make floating payments to the order of Lessor in
amounts that are intended to be sufficient to pay the interest due on the outstanding principal
amount of the Loan and Yield payable on the Equity Investment. The Basic Rent payable by Lessee
pursuant to the Lease was calculated on the Closing Date by reference to, among other things, the
applicable Pricing Level and such Interest Rate Swap. The parties intend and agree that, to the
extent that the Pricing Level changes on a Calculation Date due to a change in Guarantor’s Debt to
Adjusted EBITDA Ratio, the Basic Rent due and payable by Lessee pursuant to the Lease shall be
recalculated as of such Calculation Date by reference to, among other things, such Interest Rate
Swap Agreement and the then applicable Pricing Level, and Lessor shall produce a new schedule of
Basic Rent that will be subject to the reasonable approval of each of Lessor, Lessee, Guarantor and
all of the Lenders. Following approval of the adjusted schedule of Basic Rent, the Lease will be
modified or supplemented to include the adjusted schedule and thereafter Lessee shall be obligated
to pay Basic Rent in accordance with such adjusted schedule.

     SECTION 2.4. Characterization of the Lease.

          (a) Intent of the Parties. It is the intent of Lessee, Lessor and Lender that (1) for
the purposes of determining the proper accounting for the Lease by Lessee, Lessor will be treated
as the owner and landlord of the Leased Property and Lessee will be treated as the tenant of the
Leased Property; and (2) for income and other tax purposes and for real estate, commercial

- 3 -

 

law (including bankruptcy) and regulatory purposes, (A) Lessee owns the Leased Property and
will be entitled to all tax benefits ordinarily available to an owner of property similar to the
Leased Property, (B) the Lease will be treated as a financing arrangement, (C) Lessor will be
treated as a lender making a loan to Lessee in a principal amount equal to the Lease Balance, which
loan is secured by the Leased Property, and (D) the Lender will be treated as a lender making a
loan to Lessor, which will constitute indebtedness for purposes of federal income taxation in an
aggregate principal amount equal to the aggregate principal amount of the Note. Consistent with
such intent, by the provisions set forth in the Memorandum of Lease, Lessee is granting to Lessor a
lien upon and warranting title to the Land and the Improvements and all rights, titles and
interests of Lessee in and to other Leased Property, WITH POWER OF SALE, to secure all obligations
(monetary or otherwise) of Lessee arising under or in connection with any of the Operative
Documents. Without limiting the generality of the foregoing, the parties to this Agreement desire
that their intent as set forth in this subparagraph be given effect both in the context of any
bankruptcy, insolvency or receivership proceedings concerning Lessee or Lessor and in other
contexts. Accordingly, the parties expect that in the event of any bankruptcy, insolvency or
receivership proceedings affecting Lessee or Lessor or any enforcement or collection actions
arising out of such proceedings, the transactions evidenced by the Lease will be characterized and
treated as loans made to Lessee by Lessor, as an unrelated third party lender to Lessee, secured by
the Leased Property.

          (b) Responsibility for Proper Characterization. Notwithstanding the foregoing,
Lessee acknowledges and agrees that neither Lessor nor Lender has made any representations or
warranties concerning the tax, financial, accounting or legal characteristics or treatment of the
Lease or other Operative Documents and that Lessee has obtained and relied solely upon the advice
of its own tax, accounting and legal advisors concerning the Operative Documents and the
accounting, tax, financial and legal consequences of the transactions contemplated therein.

          (c) The parties intend that Lessee’s obligations not be reduced by reason of any prepayment of
the principal amount the Loan by Lessor or any foreclosure under the Mortgage if the foreclosure is
made subject to Lessee’s rights under the Lease. Therefore, for purposes of computing all payments
of Basic Rent following any such prepayment or foreclosure, in the case of a foreclosure, the Loan,
the Equity Investment and the Lease Balance will be deemed not to be reduced by any proceeds of a
foreclosure sale (be it in the form of a credit bid or otherwise) received upon any foreclosure of
the lien of the Mortgage if the sale is made subject to the rights of Lessee under the Lease and,
in the case of any prepayment of the principal of the Loan, the Loan and the Lease Balance will be
deemed not to have been reduced by the amount of such principal prepayment.

     SECTION 2.5. Amounts Due Under Lease. Notwithstanding anything else to the contrary
herein, it is the intention of Lessee, Lessor, Lender and Guarantor that, subject to the exceptions
listed below in this section: (i) the amount and timing of Basic Rent due and payable from time to
time from Lessee under the Lease, as converted into floating payments pursuant to the Interest Rate
Swap Agreement entered into by Lessor on the Closing Date, shall be equal to the aggregate payments
due and payable on each Payment Date with respect to interest on, and any principal of, the Loan
and Yield on, and any principal of, the Equity Investment; (ii) if Lessee elects the Purchase
Option or becomes obligated to purchase the Leased Property, the

- 4 -

 

outstanding principal amount of the Loan and the Equity Investment, all interest and Yield
thereon, plus all costs and any other amounts payable by Lessee under any Operative Document and
all other obligations of Lessee owing to Lessor and Lender shall be paid in full by Lessee; (iii)
if Lessee properly elects the Remarketing Option or the Surrender Option, the principal amount of,
and accrued interest on, the Loan and the Equity Investment plus all costs and any other amounts
payable by Lessee under any Operative Document will be paid out of the Lessee Obligation; and (iv)
upon any acceleration of the Termination Date and Lessee’s obligation to purchase the Leased
Property under the Lease as a result of a Lease Event of Default that did not arise solely from a
Limiting Event, the amounts then due and payable by Lessee under the Lease shall include all
amounts necessary to pay in full the Loan, and accrued interest thereon, the Equity Investment and
accrued Yield thereon and all other obligations of Lessee owing to Lessor and Lender. The
understanding set forth in the preceding sentence is subject to the following exceptions:

          (a) After any Additional Payment, Basic Rent will not be sufficient to cover Yield as it
accrues on the Equity Investment to the extent that such Yield is to be capitalized and added to
the Equity Investment as provided in Sections 2.2(b) and 2.3(a).

          (b) Lessee’s obligations (including its obligations to pay Basic Rent) will not be accelerated
or increased by reason of (1) any Default or Event of Default on the part of Lessor under the
Credit Agreement (e.g., a failure of Lessor to maintain its corporate existence as required by the
Operative Documents or the existence of judgment lien against Lessor which constitutes a Lessor
Lien) unless such Default or Event of Default is caused by a corresponding Lease Default or Lease
Event of Default on the part of Lessee (e.g., a failure by Lessee to rectify any lien against the
Leased Property other than a Lessor Lien within the period for cure allowed by the Lease) or (2)
any modifications to the Notes, the Credit Agreement, the Deed of Trust or other documents that
evidence or secure the Loan made without Lessee’s prior written approval or consent.

SECTION III

CONDITIONS PRECEDENT

     The obligations of Lessor, and Lender shall be subject to the fulfillment to the satisfaction
of, or waiver by, each such party hereto (acting directly or through its counsel) on or prior to
the Closing Date of the following conditions precedent, provided that the obligations of
Lessor and Lender, respectively, shall not be subject to any conditions contained in this
Section 3 which are required to be performed by Lessor and Lender, respectively:

          (a) Documents. The following documents shall have been executed and delivered by the
respective parties thereto:

               (i) Deed and Purchase Agreement. The form of the original Deed to be duly executed by
the applicable Seller and in recordable form, and copies of the Purchase Agreement and the Purchase
Agreement Documents, duly executed by such Seller and Buyer and assigned to Lessor, shall each have
been delivered to Lessor and Lender.

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               (ii) Memorandum of Lease. The original of the Memorandum of Lease, if any, duly
executed by Lessee and Lessor and in recordable form, shall have been delivered to Administrative
Lessor and Lender.

               (iii) Mortgage and Assignment of Lease. Counterparts of the Mortgage in the form of
Exhibit A attached hereto, duly executed by Lessor and in recordable form, and the
Assignment of Lease in the form of Exhibit B attached hereto related to the Leased Property
in recordable form, duly executed by Lessor, shall have been delivered to Lender.

               (iv) Guaranty. Counterparts of the Guaranty, duly executed by Guarantor, shall have
been delivered to Lender, Lessor and Administrative Agent.

               (v) Credit Agreement; Notes. Counterparts of the Credit Agreement, duly executed by
Lessor, Administrative Agent and Lender shall have been delivered to each of Lessor, Administrative
Agent and Lender. The Notes, duly executed by Lessor, shall have been delivered to Lender.

               (vi) This Agreement. Counterparts of this Agreement, duly executed by the parties
hereto, shall have been delivered to each of the parties hereto.

               (vii) Lease. Counterparts of the Lease, duly executed by the parties thereto shall
have been delivered to each of the parties hereto.

               (viii) Assignment of Guaranty. Counterparts of the Assignment of Guaranty, duly
executed by the parties thereto shall have been delivered to each of the parties hereto.

               (ix) Escrow Agreement. Counterparts of the Escrow Agreement, duly executed by Seller,
Title Company, Lessee, Lessor, Lenders and Administrative Agent shall have been delivered to each
of the parties hereto.

               (x) Other Operative Document. Each other Operative Document, other than the
Subordination Agreements, shall have been executed and delivered to the parties thereto.

          (b) Credit Agreement. All conditions specified in the Credit Agreement shall have
been, and shall remain, satisfied in full to the satisfaction of Administrative Agent and Lender.

          (c) Survey. Lessee shall have delivered, or shall have caused to be delivered, to
Lessor, Administrative Agent and Lender, at Lessee’s expense, sufficient copies of an accurate
survey prepared in accordance with the 2005 Minimum Standard Detail Requirements for ALTA/ACSM Land
Title Surveys certified to Lessor, each of the Lenders and Administrative Agent in a form
satisfactory to Lessor, Lender and Administrative Agent and showing no state of facts reasonably
unsatisfactory to Lessor, Lender or Administrative Agent and prepared within ninety (90) days of
the Closing Date by a Person reasonably satisfactory to Lessor, Lender and Administrative Agent.
Such survey shall (1) be acceptable to the Title Insurance Company, (2) show no encroachments on
the Land by structures owned by others, and no encroachments from

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any part of the Leased Property onto any land owned by others, and (3) disclose no state of
facts reasonably objectionable to Lessor, Lender, Administrative Agent or the Title Insurance
Company, and be reasonably acceptable to each such Person.

          (d) Title and Title Insurance. On the Closing Date, Lessor shall receive from the
Title Insurance Company an Owner’s Policy of Title Insurance and an alternative Mortgagee Policy of
Title Insurance (insuring the lien of the mortgage contained in the Memorandum of Lease) issued to
Lessor and its successors and assigns including Administrative Agent, and Administrative Agent
shall receive from the Title Insurance Company a Mortgagee Policy of Title Insurance issued by
Title Insurance Company for the Mortgage, in each case, reasonably acceptable in form and substance
to Lessor and Administrative Agent, respectively (collectively, the “Title Policy”). The
Title Policy shall be dated as of the Closing Date, and, to the extent permitted under Applicable
Law, shall include coverage over the creditors’ rights exclusion and the general exceptions to such
policy and shall contain such affirmative endorsements as to mechanic’s liens, easements and
rights-of-way, encroachments, the non-violation of covenants and restrictions, zoning, survey
matters and other matters as Lessor or Administrative Agent shall reasonably request, including,
without limitation, an appropriate “re-characterization” endorsement.

          (e) Appraisal. At least ten (10) days prior to the Closing Date, Lessor and
Administrative Agent shall have received sufficient copies of a report of the Appraiser (an
“Appraisal”), paid for by Lessee, which shall meet the requirements of FIRREA, shall be
satisfactory to each of Lessor and Lender in their sole discretion, and shall state in a manner
satisfactory to each of Lessor and Lender in their sole discretion, the estimated “as vacant” value
of the Leased Property.

          (f) Environmental Audit and Related Reliance Letter. Lessor, Administrative Agent and
Lender shall have received sufficient copies of an Environmental Audit (from Terracon Consultants,
Inc. or a firm selected by Lessor and Lender and acceptable to Lessee) for the Leased Property
showing that no Hazardous Materials are present and otherwise satisfactory to Lessor and Lender;
and the firm that prepared the Environmental Audit for the Leased Property shall have delivered to
Lessor and Lender and Administrative Agent a letter substantially in the form set forth on
Exhibit C hereto stating that each of Lessor, Administrative Agent and Lender may rely upon
such firm’s Environmental Audit of the Land, it being understood that acceptance of any such
Environmental Audit shall not release or impair Lessee’s or Guarantor’s obligations under the
Operative Documents with respect to any environmental liabilities relating to the Leased Property.

          (g) Evidence of Insurance. Lessor and Administrative Agent shall have received from
Lessee certificates of insurance evidencing that the Insurance Requirements have been fully
complied with (including the naming each Lessor, Administrative Agent and Lender as additional
insured with respect to liability insurance and the naming of Administrative Agent, on behalf of
each of the Lenders, as loss payee and mortgagee with respect to property and casualty insurance),
in form and substance satisfactory to Lessor, Administrative Agent and Lender.

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          (h) Lien Searches, Financing Statements. Uniform Commercial Code lien searches shall
have been performed and sufficient copies thereof delivered to Lessor and Administrative Agent,
which shall indicate to each of such party’s reasonable satisfaction that there are no Liens
(regardless of whether senior, pari passu or junior) in effect with respect to any collateral which
would be subject to the security interest granted to (x) the Administrative Agent pursuant to the
Credit Agreement and (y) Lessor pursuant to the Memorandum of Lease and UCC-1 financing statements
covering such collateral shall have been prepared, executed by the parties thereto and copies
thereof delivered to Lessor, Administrative Agent and Lender, all of which shall be in form and
substance reasonably acceptable to such recipients.

          (i) Recording Fees; Transfer Taxes. Each of Lessor and Administrative Agent shall
have received satisfactory evidence of the payment of all recording and filing fees and taxes with
respect to any recordings or filings made of the Deed, the Lease (or memorandum thereof), the
Mortgage, the Assignment of Lease and any UCC financing statements to be filed with the Secretary
of State of Delaware (or other appropriate filing office) as either Lessor or Administrative Agent
deems necessary or desirable in order to protect such party’s interests.

          (j) Lessee and Guarantor Opinions. The opinion of Counsel to Lessee and Guarantor,
dated the Closing Date, in form reasonably acceptable to each of Lessor, Administrative Agent and
Lender.

          (k) Litigation. No action or proceeding shall have been instituted or threatened nor
shall any governmental action, suit, proceeding or investigation be instituted or threatened before
any Governmental Authority, nor shall any order, judgment or decree have been issued or proposed to
be issued by any Governmental Authority, to set aside, restrain, enjoin or prevent the performance
of this Agreement or any transaction contemplated hereby or by any other Operative Document or
which is reasonably likely to materially adversely affect the Leased Property or any transaction
contemplated by the Operative Documents or which could reasonably be expected to result in a
Material Adverse Effect.

          (l) Legality. In the opinion of Lessor or Lender or their respective counsel, the
transactions contemplated by the Operative Documents shall not violate any Applicable Law, and no
change shall have occurred or been proposed in Applicable Law that would make it illegal for Lessor
or Lender to participate in any of the transactions contemplated by the Operative Documents.

          (m) No Events. (i) No Event of Default, Default, Significant Casualty or Significant
Condemnation shall have occurred and be continuing, (ii) no action shall be pending or threatened
by a Governmental Authority to initiate a Condemnation or a Significant Condemnation, and (iii)
there shall not have occurred any event that could reasonably be expected to have a Material
Adverse Effect.

          (n) Representations. Each representation and warranty of the parties hereto or to any
other Operative Document contained herein or in any other Operative Document shall be true and
correct in all material respects as though made on and as of the Closing Date.

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          (o) Zoning. The Leased Property complies with all applicable zoning ordinances or
similar land use restrictions.

          (p) Governmental Authorizations. All authorizations, if any, required by any
Governmental Authority for the operation of the Leased Property as an office or distribution
facility, as applicable, which are presently procurable shall have been obtained.

          (q) Taxes. All Taxes payable on or prior to the Closing Date in connection with the
Property shall have been paid in full or otherwise provided for by Lessee. All sales taxes and
duties related to the transactions contemplated by the Operative Documents due and payable as of
the Closing Date have been paid or otherwise provided for by Lessee.

          (r) Utilities. All utility services necessary for use of the Property (including
without limitation, electric, gas, telephone, water and sewer service) are available to the Leased
Property, and Lessee has the right to connect to and use all utility services without restriction;
and that all necessary easements appurtenant to the Land to provide such utility services to the
Property have been obtained

          (s) Lessee’s Resolutions and Incumbency Certificate, etc. Lessor and Administrative
Agent shall have received (x) a certificate of the Secretary or an Assistant Secretary of Lessee,
dated as of the Closing Date, attaching and certifying as to (i) the Board of Directors’ resolution
duly authorizing the execution, delivery and performance by it of each Operative Document to which
it is or will be a party, (ii) the incumbency and signatures of persons authorized to execute and
deliver such documents on its behalf, (iii) its certificate of incorporation, certified as of a
recent date by the Secretary of State of the state of its organization, (iv) its by-laws, and (v)
good standing certificates for Lessee, dated within thirty (30) days of the Closing Date, from the
appropriate offices of (i) the state of Lessee’s organization, and (ii) the state where subject
Leased Property is located.

          (t) Guarantor’s Resolutions and Incumbency Certificate, etc. Each of Lessor and
Administrative Agent shall have received (x) a certificate of the Secretary or an Assistant
Secretary of Guarantor, dated as of the Closing Date, attaching and certifying as to (i) the Board
of Directors’ resolution duly authorizing the execution, delivery and performance by it of each
Operative Document to which it is or will be a party, (ii) the incumbency and signatures of persons
authorized to execute and deliver such documents on its behalf, (iii) its certificate of
incorporation, certified as of a recent date by the Secretary of State of the state of its
incorporation, (iv) its by-laws, and (v) good standing certificates for Guarantor, dated within
thirty (30) days of the Closing Date, from the appropriate offices of the state or states of
Guarantor’s incorporation and principal place of business.

          (u) Transaction Expenses. To the extent (if any) not paid from proceeds of the Loan
or the Equity Investment, Lessee shall have paid the costs associated with the Transaction then
accrued and invoiced which Lessee has agreed to pay pursuant to Section 8.8 hereof to the
Persons entitled thereto.

          (v) Lien Status. On the Closing Date, Lessor shall be the owner of the collateral
securing the Note, free and clear of any Liens (senior, pari passu or junior) other than

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Permitted Liens, and all financing statements, assignments of real property interests and
other documents reasonably requested by the Administrative Agent to be recorded or filed in order
to perfect and protect such collateral against all creditors of and purchasers from Lessor will
have been delivered to the Title Insurance Company for filing in each filing office necessary for
such purpose and all filing fees and taxes, if any, payable in connection with such filings shall
have been paid in full.

          (w) Existing Space Leases. Lessor and Lenders shall have received evidence that each
of the tenants under the Existing Space Leases has been notified of the sale of the Property to
Lessor, Lessor’s lease of the Leased Property to Lessee pursuant to the Lease and the assignment to
and assumption by Lessee of all of the rights and obligations of the owner of the Leased Property
pursuant to the Existing Space Leases and that each of such tenants has acknowledged the same:

          (x) Lessor Confirmation. On the Closing Date, Lessor shall deliver to Lessee the
certificate in the form attached hereto as Exhibit D.

SECTION IV

REPRESENTATIONS

     SECTION 4.1. Representations of Lessee. Effective as of the date of execution hereof,
and as of the Closing Date, Lessee represents and warrants to each of the other parties hereto as
follows:

          (a) Organization; Corporate Powers. Lessee (i) is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization, (ii)
is duly qualified as a foreign corporation and in good standing (A) in the jurisdiction where the
Leased Property is located and (B) under the laws of each jurisdiction where such qualification is
required and where the failure to be duly qualified and in good standing would have a Material
Adverse Effect and (iii) has all requisite corporate power and authority to own, operate and
encumber its property and assets and to conduct its business as presently conducted and as proposed
to be conducted in connection with and following the consummation of the transactions contemplated
by the Operative Documents.

          (b) Authority.

               (i) Lessee has the requisite corporate power and authority to execute, deliver and perform the
Operative Documents executed by it, or to be executed by it.

               (ii) The execution, delivery and performance (or recording or filing, as the case may be) of
the Operative Documents and the consummation of the transactions contemplated thereby, have been
duly approved by the Board of Directors of Lessee and no other corporate proceedings on the part of
Lessee are necessary to consummate the transactions so contemplated.

          (c) Enforceability of Operative Documents. The Operative Documents executed by
Lessee, have been duly executed and delivered (or recorded or filed, as the case may be) by Lessee,
and constitute its legal, valid and binding obligation, enforceable against it in

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accordance with their respective terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or limiting creditors’ rights
generally or by equitable principles generally.

          (d) Conflicts. Lessee is not subject to any Contractual Obligation or restriction or
to any order, rule, regulation, writ, injunction or decree of any court or Governmental Authority
or to any Applicable Law which materially and adversely affects its ability to perform its
obligations under the Operative Documents. The execution, delivery and performance by Lessee of
each Lessee Document do not and will not (i) conflict or result in a breach of or constitute a
default under (A) any Applicable Law in effect as of the date of delivery of the Lessee Documents,
(B) the articles of incorporation or by-laws of Lessee, (C) any material agreement or instrument to
which Lessee is a party or by which it is bound, or (D) any order, writ, injunction or decree of
any court or other Governmental Authority, or (ii) result in the creation or imposition of any Lien
upon Lessee’s property pursuant to such agreement or instrument.

          (e) Approvals. Except as have been made, obtained or given, and are in full force and
effect, no filing or registration with, consent or approval of, or notice to, with or by any
Governmental Authority, is required to authorize, or is required in connection with, the execution,
delivery and performance by Lessee of the Operative Documents or the legality, validity, binding
effect or enforceability of any Operative Document. The execution, delivery and performance by
Lessee of each of the Operative Documents to which it is a party do not require any consent or
approval from any of Lessee’s creditors (except as have already been obtained in writing).

          (f) Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending against or, to the knowledge of the Lessee,
threatened against or affecting the Lessee or any of its Subsidiaries (A) as to which there is a
reasonable possibility of an adverse determination that could reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect or (B) which in any manner draws
into question the validity or enforceability of this Agreement or any other Operative Document.

          (g) Ownership of Property. As of the Closing Date, each of Lessee and its
Subsidiaries has good title to, or valid leasehold or other appropriate legal interests in, all of
its real and personal property material to the operation of its business, free and clear of any
Liens except those Liens which would, individually or in the aggregate, not have a Material Adverse
Effect. Each of Lessee and its Affiliates owns, or is licensed, or otherwise has the right, to
use, all patents, trademarks, service marks, trade names, copyrights, franchises, licenses, and
other intellectual property material to its business, and the use thereof by Lessee and its
Affiliates does not infringe on the rights of any other Person, except for any such infringements
that, individually or in the aggregate, would not have a Material Adverse Effect.

          (h) Investment Company. Neither Lessee nor any of its Affiliates is required, and
will not be required as a result of the Transaction or the offer and sale of the Notes under the
circumstances contemplated by the Credit Agreement and this Agreement or the other transactions
contemplated by this Agreement and the other Operative Documents, to register as

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an “investment company” under the Investment Company Act of 1940, as amended, and Lessee is
not “controlled” by an “investment company” as defined in the Investment Company Act of 1940, as
amended.

          (i) Applicable Law and Agreements. Lessee and each of its Subsidiaries and each Person
acting on behalf of any of them is in compliance with (i) all Applicable Law applicable to them and
their respective businesses, and (ii) all indentures, agreements or other instruments binding upon
it or its properties, in each case where the failure to so comply would have a Material Adverse
Effect, either individually or together with other such cases.

          (j) Rights in Respect of the Leased Property. Neither Lessee nor any Affiliate of
Lessee is a party to any contract or agreement to sell any interest in the Leased Property or any
part thereof, other than pursuant to this Agreement and the Lease.

          (k) Hazardous Materials.

               (i) To the best knowledge of Lessee, there are no Hazardous Materials present at, upon, under
or within the Leased Property or released or transported to or from the Leased Property (except in
full compliance with all Applicable Law).

               (ii) No Governmental Actions have been taken or are in process or, to the best knowledge of
Lessee, have been threatened with regard to the Leased Property, which could reasonably be expected
to subject the Leased Property, Administrative Agent, Lender or Lessor to any Claims or Liens under
any Environmental Law which would have a Material Adverse Effect on Lessee or a material adverse
effect on, Lessor, Administrative Agent, Lender or the Leased Property.

               (iii) Lessee has, or will obtain on or before the date required by Applicable Law, all
Environmental Permits necessary to operate the Leased Property in accordance with Environmental
Laws and is complying with and has at all times complied with all such Environmental Permits,
except to the extent the failure to so comply would not have a Material Adverse Effect.

               (iv) No notice, notification, demand, request for information, citations, summons, complaint
or order has been issued to or filed with or has been received by Lessee, no penalty has been
assessed on Lessee and, to its best knowledge, no investigation or review is pending or threatened
by any Governmental Authority or other Person in each case relating to the Leased Property with
respect to any alleged violation or liability of Lessee under any Environmental Law. No material
notice, notification, demand, request for information, citations, summons, complaint or order has
been issued to or filed with or has been received by any other Person, no material penalty has been
assessed on any other Person and no investigation or review is pending or, to its best knowledge,
threatened by any Governmental Authority or other Person relating to the Leased Property with
respect to any alleged material violation or liability under any Environmental Law by any other
Person.

               (v) The Leased Property is presently in compliance in all material respects with all
Environmental Laws, and there are no present or, to Lessee’s best knowledge, past facts,
circumstances, activities, events, conditions or occurrences regarding the Leased

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Property (including without limitation the release or presence of Hazardous Materials) that
could reasonably be anticipated to (A) form the basis of a material Claim against the Leased
Property, Lessor, Administrative Agent, Lender or Lessee, (B) cause the Leased Property to be
subject to any restrictions on ownership, occupancy, use or transferability under any Environmental
Law, (C) require the filing or recording of any notice or restriction relating to the presence of
Hazardous Materials in the real estate records in the county or other appropriate municipality in
which the Leased Property is located, or (D) prevent or interfere with the continued operation and
maintenance of the Leased Property as contemplated by the Operative Documents.

          (l) Leased Property. The present condition and use of the Leased Property conforms in
all material respects with all conditions or requirements of all existing permits and approvals
issued with respect to the Leased Property, and the present use of the Leased Property and Lessee’s
future intended use of the Leased Property under the Lease does not, in any material respect,
violate any Applicable Law. No notices, complaints or orders of violations or non-compliance have
been issued or, to Lessee’s best knowledge, threatened or contemplated by any Governmental
Authority with respect to the Leased Property or any present or intended future use thereof or with
respect to any Significant Condemnation or Condemnation of the Leased Property, proposed or
otherwise. All agreements, easements and other rights, public or private, which are necessary to
permit the lawful use and operation of the Leased Property as Lessee intends to use the Leased
Property under the Lease and which are necessary to permit the lawful intended use and operation of
all presently intended utilities, driveways, roads and other means of egress and ingress to and
from the same have been, or to Lessee’s best knowledge will be, obtained and are in full force and
effect, and Lessee has no knowledge of any pending modification or cancellation of any of the same.

          (m) Conditions Precedent contained in the Operative Documents; Default. All
conditions precedent contained in this Agreement and in the other Operative Documents to be
satisfied by Lessee have been satisfied in full or waived in accordance with such Operative
Documents. No event has occurred or would occur after giving effect to the transactions
contemplated hereby with respect to Lessee which would constitute a Default or Event of Default
under the Lease.

          (n) Offering of Notes. Neither Lessee nor anyone acting on behalf of Lessee, has
offered, transferred, pledged, sold or otherwise disposed of any Note or any interest in any Note
to, or solicited any offer to buy or accepted a transfer, pledge or other disposition of any Note
or any interest in any Note from, or otherwise approached or negotiated with respect to any Note or
any interest in any Note with, any person in any manner, or made any general solicitation by means
of general advertising or in any other manner, or taken any other action, which would constitute a
public distribution of the Notes under the Securities Act, or which would render the disposition of
any Note a violation of Section 5 of the Securities Act or any state securities laws, or require
registration or qualification pursuant thereto or require registration of Lessee under the
Investment Company Act of 1940, as amended, nor will Lessee act, nor has Lessee authorized or will
it authorize any Person to act, in such manner with respect to any Note.

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          (o) Trust Indenture Act. The initial offer and sale of the Note to Lender, in the
manner contemplated in the Credit Agreement, are transactions exempt from the registration
requirements of the Securities Act and no indenture with respect to the Notes is required to be
qualified under the Trust Indenture Act of 1939, as amended.

          (p) Solvency. Lessee is and, upon consummation of the transactions, contemplated by
this Agreement, will be Solvent.

          (q) Indebtedness. The Notes constitute indebtedness for purposes of federal income
taxation.

          (r) Foreign Assets Control Regulations, etc. The use of the proceeds of the Loans and
the Equity Investment will not violate the Trading with the Enemy Act, as amended, or any of the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order relating thereto.

     SECTION 4.2. Representations Of Lessor. Effective as of the date of execution hereof
and as of the Closing Date, Lessor represents and warrants to each of the other parties hereto as
follows:

          (a) Employee Benefit Plans. Lessor is not and will not be making its Equity Investment
hereunder, and is not performing its obligations under the Operative Documents, with the assets of
an “employee benefit plan” (as defined in Section 3(3) of ERISA) which is subject to Title I of
ERISA, or of a “plan” (as defined in Section 4975(e)(1)) of the Code).

          (b) Representations and Warranties; No Default. The representations and warranties of
Lessor set forth herein and in each of the other Operative Documents are true and correct in all
respects on and as of the Closing Date as if made on and as of the Closing Date. Lessor not in
default with its respective obligations under the Operative Documents.

          (c) Authority of Lessor. The execution and delivery of each Operative Document
delivered by Lessor on such date and the performance of the obligations of Lessor under each
Operative Document has been duly authorized by all requisite action of Lessor.

          (d) Execution and Delivery by Lessor. Each Operative Document delivered by Lessor on
such date has been duly executed and delivered by Lessor.

          (e) Valid and Binding Obligations of Lessor. Each Operative Document delivered by
Lessor on such date is a legal, valid and binding obligation of Lessor, enforceable against Lessor
in accordance with its terms.

          (f) No Conflict. The execution and delivery by Lessor of the Lease, this Agreement
and each other Operative Document to which Lessor is or will be a party, are not or will not be,
and the performance by Lessor of its obligations under each will not be, inconsistent with its
organizational documents, do not and will not contravene any Applicable Law and do not and will not
contravene any provision of, or constitute a default under, any contractual obligation of Lessor,
do not and will not require the consent or approval of, the giving of notice

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to, the registration with or taking of any action in respect of or by, any Governmental
Authority, except such as have been obtained, given or accomplished, and Lessor possesses all
requisite regulatory authority to undertake and perform its obligations under the Operative
Documents.

          (g) Litigation. There are no pending or, to the knowledge of Lessor, threatened
actions or proceeds against Lessor before any Governmental Authority with respect to any Operative
Documents or that would have a material adverse effect upon the ability of Lessor to perform its
obligations under this Agreement or any other Operative Documents to which it is or will be a
party.

          (h) Lessor Liens. No Lessor Liens exist on the Closing Date, and the execution,
delivery and performance by Lessor of this Agreement or any other Operative Document to which it is
or will be a party will not subject the Leased Property, or any portion thereof, to any Lessor
Liens.

     SECTION 4.3. Representations of Guarantor. Effective as of the date of execution
hereof, and as of the Closing Date, Guarantor represents and warrants to each of the other parties
hereto as follows:

          (a) Organization; Corporate Powers. Guarantor (i) is a corporation duly organized and
validly existing under the laws of the State of Delaware, and (ii) has all requisite legal power
and authority to enter into this Agreement, the Guaranty and each other Operative Document to which
it is a party (the “Guarantor Documents”), to perform and observe the terms and conditions
hereof, and has all requisite legal power and authority to own its properties and conduct its
business as currently conducted except for such licenses, permits and approvals which would not,
individually or in the aggregate, have a material adverse effect on Guarantor’s ability to perform
the Guaranteed Obligations. Guarantor is qualified to do business as a foreign corporation in all
jurisdictions where its ownership of property or the nature of its business required such
qualification except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect on Guarantor. Each Guarantor Document has been duly authorized, executed and
delivered by Guarantor and constitutes the legal, valid and binding obligation by Guarantor
enforceable against Guarantor in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization and other laws of general application relating to or
affecting the enforcement of creditors’ rights and general principles of equity.

          (b) Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending against or, to the knowledge of the Guarantor,
threatened against or affecting the Guarantor or any of its Subsidiaries (A) as to which there is a
reasonable possibility of an adverse determination that could reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect or (B) which in any manner draws
into question the validity or enforceability of this Agreement or any other Operative Document.

          (c) Conflicts. Guarantor is not subject to any Contractual Obligation or restriction
or to any order, rule, regulation, writ, injunction or decree of any court or Governmental
Authority or to any Applicable Law which materially and adversely affects its

- 15 -

 

ability to perform the Guaranteed Obligations. The execution, delivery and performance by
Guarantor of each Guarantor Document do not and will not (i) conflict or result in a breach of or
constitute a default under (A) any Applicable Law in effect as of the date of delivery of the
Guarantor Documents, (B) the articles of incorporation or by-laws of Guarantor, (C) any material
agreement or instrument to which Guarantor is a party or by which it is bound, or (D) any order,
writ, injunction or decree of any court or other Governmental Authority, or (ii) result in the
creation or imposition of any Lien upon Guarantor’s property pursuant to such agreement or
instrument.

          (d) Approvals. The execution, delivery and performance by Guarantor of each Guarantor
Document do not require (i) any stockholder approval or the consent or approval of any of
Guarantor’s creditors (except as have already been obtained in writing), or (ii) any authorization,
consents, or approvals, of or filings with any Governmental Authority, except for such
authorization, consents, approvals or filings which have been obtained and are in full force and
effect.

          (e) Event of Default. No event has occurred or would occur after giving effect to the
transactions contemplated hereby and by the Guaranty with respect to Guarantor which would
constitute a Default or Event of Default under the Guaranty. Neither Lessee nor Guarantor is in
default in the payment of the principal or interest on any indebtedness for borrowed money or for
its deferred purchase of property or in default under any instrument or agreement under and subject
to which any such indebtedness has been issued or under any lease, in any case involving the
likelihood of any actions or proceedings against it which would not have a Material Adverse Effect
on Guarantor.

          (f) Compliance with ERISA.

               (i) Guarantor and each ERISA Affiliate have operated and administered each Plan in compliance
with all applicable laws except for such instances of noncompliance as have not resulted in and
could not reasonably be expected to result in a Material Adverse Effect. Neither Guarantor nor any
ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to employee benefit plans (as defined in Section 3(3) of
ERISA), and no event, transaction or condition has occurred or exists that would reasonably be
expected to result in the incurrence of any such liability by Guarantor or any ERISA Affiliate, or
in the imposition of any Lien on any of the rights, properties or assets of Guarantor or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax
provisions or to Section 401(a)(29) or 412 of the Code, other than such liabilities or Liens as
would not be, individually or in the aggregate, Material.

               (ii) As of the Closing Date, the present value of the accumulated benefit obligations under
each of the Plans that are subject to Title IV of ERISA (other than Multiemployer Plans),
determined in accordance with Financial Accounting Standards Board Statement No. 87 as of the end
of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified
for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the
aggregate current value of the assets of such Plan allocable

- 16 -

 

to such benefit liabilities by more than the amounts reported in the most recent Form 10-K
filed by Guarantor with the SEC.

               (iii) Guarantor and its ERISA Affiliates have not incurred withdrawal liabilities (and are not
subject to contingent withdrawal liabilities) under Section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that, individually or in the aggregate, are Material.

               (iv) The expected post–retirement benefit obligation (determined as of the last day of the
Borrower’s most recently ended fiscal year in accordance with Financial Accounting Standards Board
Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by
Section 4980B of the Code) of Guarantor and its Subsidiaries was approximately $14,235,000 as of
December 31, 2005.

          (g) Solvency. Guarantor is and, upon consummation of the transactions contemplated by
this Agreement and the Guaranty will be Solvent. Transactions are in furtherance of Guarantor’s
ordinary business purposes and in furtherance of its corporate purposes with no contemplation of
insolvency and with no intent to hinder, delay or defraud any of its present or future creditors.

          (h) Financial Information. None of the consolidated financial statements for
Guarantor’s Fiscal Year ending at December 31, 2005, contains any untrue statement of a material
fact or omits a material fact necessary to make the statements contained therein not misleading,
provided, however, that to the extent any such information includes or incorporates
by reference any forward-looking statement which reflects the Guarantor’s current view (as of the
date such Forward-Looking Statement is made) with respect to future events, prospects, projections
or financial performance (each, a “Forward-Looking Statement”), such Forward-Looking
Statement is subject to uncertainties and other factors which could cause actual results to differ
materially from such Forward-Looking Statement. Guarantor represents that the consolidated
financial statements specified above (i) are complete and correct in all material respects, and
(ii) have been prepared in accordance with GAAP consistently applied, except as otherwise disclosed
therein.

          (i) Financial Statements; No Material Adverse Change. Guarantor has furnished to
Administrative Agent, Lender and Lessor the audited consolidated balance sheet of Guarantor, Lessee
and its Consolidated Subsidiaries as of December 31, 2005 and the related consolidated statements
of income, shareholders’ equity and cash flows for the Fiscal Year then ended. Such financial
statements fairly present the consolidated financial condition of Guarantor, Lessee and its
Consolidated Subsidiaries as of such dates and the consolidated results of operations for such
periods in conformity with GAAP consistently applied. Since December 31, 2005, there have been no
changes with respect to Guarantor, Lessee or its Subsidiaries which have had or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

          (j) Disclosure. Guarantor has disclosed to Administrative Agent, Lender and the Lessor
all agreements, instruments, and corporate or other restrictions to which Lessee is subject, and
all other matters known to any of them, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect. None of the reports (including

- 17 -

 

without limitation all reports that Guarantor is required to file with the Securities and
Exchange Commission), written statements contemplated hereby or by the Guaranty, representation of
Guarantor or Lessee contained in any Operative Document, certificates or other information
furnished by or on behalf of Guarantor or Lessee to Administrative Agent, Lender or Lessor, or
anyone on their behalf, in connection with the negotiation or syndication of this Agreement or any
other Operative Document or delivered hereunder or thereunder (as modified or supplemented by any
other information so furnished) contains any material misstatement of fact or omits to state any
material fact necessary, provided, however, that to the extent any such information
includes or incorporates by reference any Forward-Looking Statement, such Forward-Looking Statement
is subject to uncertainties and other factors which could cause actual results to differ materially
from such Forward-Looking Statement.

          (k) Offering of Notes. Neither Guarantor nor any Person acting on behalf of
Guarantor, has offered, transferred, pledged, sold or otherwise disposed of any Note or any
interest in any Note to, or solicited any offer to buy or accepted a transfer, pledge or other
disposition of any Note or any interest in any Note from, or otherwise approached or negotiated
with respect to any Note or any interest in any Note with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or taken any other
action, which would constitute a public distribution of the Notes under the Securities Act, or
which would render the disposition of any Note a violation of Section 5 of the Securities Act or
any state securities laws, or require registration or qualification pursuant thereto or require
registration of Guarantor under the Investment Company Act of 1940, as amended, nor will Guarantor
act, nor has Guarantor authorized or will it authorize any person to act, in such manner with
respect to any Note.

          (l) Trust Indenture Act. The initial offer and sale of the Notes to each of the
Lenders in the manner contemplated in the Credit Agreement are transactions exempt from the
registration requirements of the Securities Act and (ii) no indenture with respect to the Note is
required to be qualified under the Trust Indenture Act of 1939, as amended.

          (m) Investment Company. Neither Guarantor nor any of its Subsidiaries is required,
and will not be required as a result of the Transaction or the offer and sale of the Notes under
the circumstances contemplated by the Credit Agreement and this Agreement or the other transactions
contemplated by this Agreement and the other Operative Documents, to register as an “investment
company” under the Investment Company Act of 1940, as amended, and Guarantor is not “controlled” by
an “investment company” as defined in the Investment Company Act of 1940, as amended.

          (n) Conditions Precedent contained in the Operative Documents; Default. All
conditions precedent contained in this Agreement and in the other Operative Documents to be
satisfied by Guarantor have been satisfied in full or waived in accordance with such Operative
Documents. No event has occurred or would occur after giving effect to the transactions
contemplated hereby with respect to Guarantor which would constitute a Default or Event of Default
under the Lease.

          (o) Indebtedness. The Notes constitute indebtedness for purposes of federal income
taxation.

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          (p) Taxes. Guarantor and its Subsidiaries and each other Person for whose taxes
Lessee or any Subsidiaries could become liable have timely filed or caused to be filed all Federal
income tax returns and all other material tax returns that are required to be filed by them, and
have paid all taxes shown to be due and payable on such returns or on any assessments made against
it or its property and all other taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority, except (i) to the extent the failure to do so would not have a
Material Adverse Effect or (ii) where the same are currently being contested in good faith by
appropriate proceedings and for which Lessee or such Subsidiaries, as the case may be, has set
aside on its books adequate reserves in accordance with GAAP. As of the Closing Date, the charges,
accruals and reserves on the books of Lessee and its Subsidiaries in respect of such taxes are
adequate, and no tax liabilities that could be materially in excess of the amount so provided are
anticipated.

          (q) Relationship with Lessee. Lessee is Wholly Owned Subsidiary of Guarantor.

     SECTION 4.4. Representations of Administrative Agent. Effective as of the Closing
Date, Administrative Agent represents and warrants (in its individual capacity) to each of the
other parties hereto as follows:

          (a) Organization; Authority. Administrative Agent (i) is a duly organized and validly
existing corporation organized under the laws of the State of New York, and (ii) has all requisite
power and authority to execute, deliver and perform the Operative Documents executed by it, or to
be executed by it.

          (b) Authority of Lessor. The execution and delivery of each Operative Document
delivered by Administrative Agent on such date and the performance of the obligations of
Administrative Agent under each Operative Document has been duly authorized by all requisite action
of Administrative Agent.

          (c) Execution and Delivery by Administrative Agent. Each Operative Document delivered
by Administrative Agent on such date has been duly executed and delivered by Administrative Agent.

          (d) Valid and Binding Obligations of Administrative Agent. Each Operative Document
delivered by Administrative Agent on such date is a legal, valid and binding obligation of
Administrative Agent, enforceable against Administrative Agent in accordance with its terms.

     SECTION 4.5. Representations of Lenders. Effective as of the date of execution hereof
and as of the Closing Date, each Lender represents and warrants to each of the other parties hereto
as follows:

          (a) Employee Benefit Plans. No Lender is nor will be making its Loan hereunder with
the assets of an “employee benefit plan” as defined in Section 3(3) of ERISA) which is subject to
Title I of ERISA, or of a “plan” (as defined in Section 4975(e)(1) of the Code).

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          (b) Securities Laws. Lender is purchasing the Notes for its own account for
investment only and not with a view towards the resale or distribution thereof in violation of the
Securities Act. Lender is not participating and does not have a participation in any such
distribution or the underwriting of such distribution. All subsequent offers and sales, if any, of
the Notes by Lender shall be made pursuant to registration of the Notes being offered and sold
under the Securities Act or pursuant to an exemption from registration; Lender has no present
intention of selling or otherwise disposing of any of the Notes in violation of applicable
securities laws and any such sales may only be made in conformity with all applicable federal and
state securities laws.

SECTION V

COVENANTS

SECTION 5.1. Covenants of Lessee 

          (a) Qualification to do Business. Lessee shall remain qualified to do business in the
state where the Leased Property is located.

          (b) Existence; Conduct of Business. Lessee will, and will cause each of its
Subsidiaries to, do or cause to be done all things necessary to preserve, renew and maintain in
full force and effect its legal existence and its respective rights, licenses, permits, privileges
and franchises related to the Lease or the Leased Property and will continue to engage in the same
business as presently conducted or such other businesses that are reasonably related thereto.

          (c) Compliance with Laws, Etc. Lessee will, and will cause each of its Subsidiaries
to, comply with all Applicable Laws of any Governmental Authority applicable to its business and
properties, including without limitation, all Environmental Laws and ERISA, except where the
failure to do so, either individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect. If at any time an event or condition shall have occurred and
be continuing which results in any Leased Property being in violation of any Environmental Law, or
a notice, complaint, or order or finding of violation or non-compliance with any Environmental Law
shall have been received by Lessee with respect to any Leased Property, Lessee shall, at its
option, promptly commence and diligently perform all remedial work, at Lessee’s own cost and
expense, necessary or desirable to bring the Leased Property into full compliance with
Environmental Laws by not later than the earlier of (i) twelve months after the date of discovery
of such event or condition and (ii) the end of the initial term of the Lease with respect to the
Leased Property.

          (d) Maintenance of Property; Insurance (other than of the Leased Property). Lessee
will, and will cause each of its Subsidiaries to, (a) keep and maintain good and marketable title
to all property owned by it subject to no Liens except Permitted Liens and keep and maintain all
property material to the conduct of its business in good working order and condition, ordinary wear
and tear except where the failure to do so, either individually or the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, and (b) maintain as part of a
self-insurance program or with financially sound and reputable insurance companies, insurance with
respect to its properties and business, and the properties and business of its Subsidiaries (other
than the Leased Property), against loss or damage of the kinds

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customarily insured against by companies in the same or similar businesses operating in the
same or similar locations.

          (e) Payments. Lessee covenants that (A) subject to the exceptions listed in Section
2.5, Basic Rent as defined in and payable under the Lease shall be in amounts sufficient from time
to time to pay (together with the Supplemental Rent) all interest, costs and other charges due
under this Agreement (including, without limitation, amounts payable on the Notes, Taxes, all other
charges and costs payable pursuant to Sections 2 and 7 of this Agreement) on the dates when any
such interest or other charges are due thereunder; (B) the Lease Balance from time to time shall
not be less than the sum of the aggregate amount of (1) the Equity Investment, plus (2) the
outstanding principal amount of the Note; and (C) the sum of the Lessee Obligation and Lessor
Residual Risk Amount shall at all times during the term of the Lease be sufficient to pay the
entire outstanding principal amount of the Notes and the Equity Investment.

          (f) Use of Purchase Amount. The proceeds of the Loan and the Equity Investment shall
be used for the purchase of the Leased Property, and for transaction and closing costs related
thereto. No part of the proceeds of the Loan and the Equity Investment will be used, whether
directly or indirectly, for the purchase or carrying of any “margin stock” or to extend credit to
others for such purpose or for any purpose that would violate any rule or regulation of the Board
of Governors of the Federal Reserve System, including Regulations T, U or X.

          (g) Additional Required Appraisals. If, as a result of any change in Applicable Law
after the date hereof applicable to Lessor or any Lender, an appraisal of the Leased Property is
required during the Basic Lease Term under Applicable Law with respect to Lessor’s or any Lender’s
interest therein, or the Operative Documents then Lessee shall pay the cost of such appraisal.

          (h) Books and Records. Lessee will, and will cause each of its Subsidiaries to, keep
proper books of record and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to its business and activities to the extent necessary to
prepare the consolidated financial statements of Guarantor in conformity with GAAP.

          (i) Visitation, Inspection, Etc. Lessee will, and will cause each of its Subsidiaries
to, permit any representative of Administrative Agent, any of the Lenders or Lessor, at such
Person’s expense except following a Lease Default or Lease Event of Default, to visit and inspect
its properties, to examine its books and records and to make copies and take extracts therefrom,
and to discuss its affairs, finances and accounts with any of its officers and with its independent
certified public accountants, all at such reasonable times and as often as Administrative Agent,
any of the Lenders or Lessor may reasonably request after reasonable prior notice to the Lessee;
provided, however, if a Lease Event of Default has occurred and is continuing, no prior notice
shall be required.

          (j) Information. Lessee will furnish to Lessor, Administrative Agent and Lender such
information relating to the business, affairs and financial condition of Lessee and its
Subsidiaries as Lessor, Administrative Agent and any of the Lenders may from time to time
reasonably request, provided, however, that until Lessee’s financial information is
reported

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separately from Guarantor’s consolidated financial statements, Lessee shall not be required to
provide separate financial statements from those of Guarantor’s.

          (k) Further Assurances. Upon the written request of Lessor or Administrative Agent,
Lessee, at its own cost and expense, will cause all financing statements (including precautionary
financing statements), fixture filings and other similar documents, to be recorded or filed at such
places and times in such manner, as may be necessary to preserve, protect and perfect the interest
of Lessor, Administrative Agent and Lender in the Leased Property as contemplated by the Operative
Documents.

          (l) Limiting Event. Immediately following the occurrence of a Limiting Event
described in clause (i) of the definition thereof and request by Lessor, Lessee agrees to assign to
Guarantor all of the obligations of Lessee hereunder, under the Lease and the other Operative
Documents on a full recourse basis by written instrument between Lessee and Guarantor pursuant to
which all of the rights, duties and obligations of Lessee are assigned by Lessee to Guarantor and
all of such rights, duties and obligations of Lessee are assumed by Guarantor. Such instrument
shall be accompanied by such certificates of the Lessee Parties, opinions of counsel and amendments
and supplements to the other Operative Documents as Lessor and each of the Lenders shall deem
necessary to consummate the foregoing. In furtherance of the foregoing, Lessee shall, and shall
cause the Lessee Parties to, execute, deliver and perform such other agreements, instruments and
documents and make such filings, notices and recordations as may be necessary to preserve the
interests of Lessor, and each of the Lenders, and the other Indemnitees and shall otherwise
cooperate with such parties and give such further assurances as are reasonably necessary or
advisable to effectuate the foregoing.

          (m) Subordination Agreements. Not later than forty-five (45) days after the Closing
Date, Lessee shall obtain and deliver to Lessor and the Lenders fully executed Subordination
Agreements in the form attached hereto as Exhibit E, provided however that
failure of Lessee to deliver the Subordination Agreements as required hereby shall not constitute a
Lease Event of Default.

     SECTION 5.2. Covenants of Lessor 

          (a) Purchase Amount. The proceeds of the Loan will be used by Lessor solely to
acquire the Leased Property and to pay Lessee for certain closing and transaction costs associated
therewith. No portion of the proceeds of the Loan will be used by Lessor (i) in connection with,
whether directly or indirectly, any tender offer for, or other acquisition of, stock of any
corporation with a view towards obtaining control of such other corporation, (ii) directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of purchasing or carrying
any margin stock (or of extending credit to others for such purpose), or (iii) for any purpose in
violation of any Applicable Law.

          (b) Books and Records. Upon ten (10) days’ prior written notice, Lessor will permit
Administrative Agent, each of the Lenders and their respective representatives to examine, and make
copies from, Lessor’s books and records solely with respect to this Transaction and not generally,
and to visit the offices and properties of Lessor for the purpose of examining such materials, and
to discuss Lessor’s performance hereunder with any of its officers

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and employees provided, however, if an Event of Default shall have occurred that is not the
result of a Lease Event of Default, one (1) Business Day prior notice shall be required.

          (c) Liens. Lessor shall not consent to or suffer or permit any Lessor Lien against
the Leased Property, and Lessor shall promptly discharge each Lessor Lien and shall indemnify
Administrative Agent, each of the Lenders and Lessee for any diminution in value of the Leased
Property resulting from such Lessor Liens.

          (d) Certificate Concerning Accounting. With respect to any Lessor other than the
original Lessor hereunder, such Lessor covenants that, as reasonably requested by Lessee from time
to time with respect to any accounting period during which the Lease is or was in effect, Lessor
will provide to Lessee confirmation of facts concerning Lessor and its assets as is necessary to
permit Lessee to determine the proper accounting for the Lease (including updates of the facts set
forth in the representations set forth on Exhibit F hereto); except that such Lessor will
not be required by this provision to (w) provide any information that is not in the possession or
control of Lessor or its Affiliates, (x) disclose the specific terms and conditions of its leases
or other transactions with other parties or the names of such parties, (y) make disclosures
prohibited by any law applicable to Lessor or The Bank of Tokyo-Mitsubishi UFJ, Ltd., or (z)
disclose any other information that is protected from disclosure by confidentiality provisions in
favor of such other parties or would be protected if their agreements with Lessor contained
confidentiality provisions similar in scope and substance to any confidentiality provisions set
forth in the Operative Documents for the benefit of Lessee or its Affiliates. Lessor will
represent that information provided by it pursuant to this clause is true and complete in all
material respects, but only to the knowledge of Lessor as of the date it is provided.

          (e) Further Assurances. During the term of the Lease, Lessor will take certain
actions set forth in clauses (I) – (X) below to facilitate the use of the Leased Property permitted
by the Lease; subject, however, to the following terms and conditions:

               (i) This subsection (e) will not impose upon Lessor the obligation to take any action that can
be taken by Lessee, Lessee’s Affiliates or anyone else other than Lessor in its capacity as the
owner of record title to the Leased Property.

               (ii) Lessor will not be required by this subsection (e) to incur any expense or to make any
payments to another Person unless Lessor has received funds from Lessee, in excess of any other
amounts due from Lessee under any of the Operative Documents, sufficient to cover all such expenses
or payments or other Persons.

               (iii) Lessor will not be required by this subsection (e) to incur or assume any potential
liability to another Person.

               (iv) Lessor will have no obligations whatsoever under this subsection (e) at any time when a
Lease Default or a Lease Event of Default has occurred and is continuing.

               (v) Lessee must request any action to be taken by Lessor pursuant to this subsection (e), and
such request must be specific and in writing delivered to Lessor, Administrative Agent and each
Lender.

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               (vi) No action may be required of Lessor pursuant to this subsection (e) that could constitute
a violation of any Applicable Laws or compromise or constitute a waiver of Lessor’s rights under
other provisions of this Agreement or any of the other Operative Documents or that for any other
reason is reasonably objectionable to Lessor.

               (vii) The Required Lenders shall have received prior notice of such action and shall have
consented thereto, which consent will not be unreasonably withheld if the other conditions above
have been satisfied.

During the Basic Lease Term, if reasonably requested by Lessee and subject to the conditions listed
above, Lessor will execute or consent to, or exercise or assist Lessee to exercise rights under
any: (I) grant of easements, licenses, rights of way, and other rights in the nature of easements
encumbering the Land or the Improvements, (II) release, relocation or termination of easements,
licenses, rights of way or other rights in the nature of easements which are for the benefit of the
Land or Improvements or any portion thereof, (III) dedication or transfer of portions of the Land
not improved with a building, for road, highway or other public purposes, (IV) agreements (other
than with Lessee or its Affiliates) for the use and maintenance of common areas, for reciprocal
rights of parking, ingress and egress and amendments to any covenants and restrictions affecting
the Land or any portion thereof, (V) documents required to create or administer a governmental
special benefit district or assessment district for public improvements and collection of special
assessments, (VI) instruments necessary or desirable for the exercise or enforcement of rights or
performance of obligations under any Permitted Liens or any contract, permit, license, franchise or
other right included within the term “Leased Property”, (VII) modifications of Permitted
Encumbrances, (VIII) permit applications or other documents required to accommodate any
construction permitted by the Lease, (IX) confirmations of Lessee’s rights under any particular
provisions of the Operative Documents which Lessee may wish to provide to a third party, or (X)
tract or parcel map subdividing the Land into lots or parcels or adjusting boundaries between lots.
However, the determination of whether any such action is reasonably requested or reasonably
objectionable to Lessor may depend in whole or in part upon the extent to which the requested
action may result in a lien to secure payment or performance obligations against Lessor’s interest
in the Leased Property, may cause the value of the Leased Property to be less than the Lease
Balance (after taking into account any payments made against the Lease Balance that may result from
such action), or may impose upon Lessor any present or future obligations greater than the
obligations Lessor is willing to accept, despite the indemnifications provided by Lessee herein.

Any and all Claims incurred by Lessor because of any action taken pursuant to this subsection (e)
will be the responsibility of Lessee.

          (f) Actions Permitted by Lessee Without Lessor’s Consent. No refusal by Lessor to
execute or join in the execution of any agreement, application or other document requested by
Lessee pursuant to the preceding subsection (e) will prevent Lessee from itself executing such
agreement, application or other document, so long as Lessee is not purporting to act for Lessor and
does not thereby create or expand any obligations or restrictions that encumber Lessor’s title to
the Leased Property. Further, so long as no Lease Default or Lease Event of Default has occurred
and is continuing, Lessee shall do the following in Lessee’s own name and to the exclusion of
Lessor during the Basic Lease Term:

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               (i) perform obligations arising under and exercise and enforce the rights of Lessee or the
owner of the Leased Property under the Purchase Agreement or under Permitted Liens that existed
prior to the execution and delivery of the Operative Documents (including the right to receive
rents payable pursuant to the Existing Space Leases and to enforce or terminate any Existing Space
Lease in the event of any default by the tenant thereunder and including all obligations of the
lessor under the Existing Space Leases); and

               (ii) perform obligations arising under and exercise and enforce the rights of Lessee or the
owner of the Leased Property with respect to any warranty given by any contractor who has in the
past or may during the term of the Lease construct, repair, replace or service any Improvements
(including roof, HVAC and elevators) or any building permits given with respect to the Leased
Property.

          (g) Waiver of Landlord’s Liens. Lessor waives any security interest, statutory
landlord’s lien or other interest Lessor may have in or against computer equipment and other
tangible personal property placed on the Land from time to time that Lessee or its Affiliates own
or lease from other lessors and which do not constitute Leased Property; however, Lessor does not
waive its interest in or rights with respect to equipment or other property included within the
“Improvements” as described in the definition thereof. Although computer equipment or other
tangible personal property may be “bolted down” or otherwise firmly affixed to Improvements, it
will not by reason thereof become part of the Improvements if it can be removed without causing
structural or other material damage to the Improvements and without rendering HVAC or other major
building systems inoperative and if it does not otherwise constitute Improvements as provided in
the definition thereof.

Without limiting the foregoing, Lessor acknowledges that Lessee may obtain financing from other
parties for inventory, furnishings, equipment, machinery and other personal property that is
located in or about the Improvements, but that is not included in or integral to the Leased
Property, and to secure such financing Lessee may grant a security interest under the Texas Uniform
Commercial Code in such inventory, furnishings, equipment, machinery and other personal property.
Further, Lessor acknowledges that the lenders providing such financing may require confirmation
from Lessor of its agreements concerning landlord’s liens and other matters set forth in this
subclause (g), and if reasonably requested by Lessee, Lessor will provide such confirmation.

          (h) Confirmation by Lessor. Upon reasonable advance request by Guarantor in
connection with Guarantor’s preparation of its annual audited financial statements, Lessor shall
deliver to Guarantor a confirmation in the form attached hereto as Exhibit D.

     SECTION 5.3. Covenants of Guarantor 

          (a) Certificates. Guarantor agrees that from time to time so long as this Agreement
and the other Guarantor Documents are in effect but not more frequently than annually, except upon
and after the occurrence and continuance of a Lease Default or Event of Default, it will promptly,
but in no event later than fifteen (15) days after request by Administrative Agent, any of the
Lenders or Lessor, execute, acknowledge and deliver to Lessor, Administrative Agent, and each of
the Lenders a certificate stating: (i) that the Guaranty is

- 25 -

 

unmodified and in full force and effect (or if there have been modifications, that the
Guaranty is in full force and effect as modified, and identifying such modification agreements);
(ii) whether or not there is an existing Lease Default or Lease Event of Default and, if there is
any such Default or Event of Default, specifying the nature and extent thereof and actions, if any,
that are being taken to cure such Default or Event of Default; and (iii) whether or not Guarantor
believes there to be any setoffs, defenses or counterclaims against enforcement of the obligations
to be performed hereunder existing in favor of Guarantor.

          (b) Limiting Event. Immediately following the occurrence of a Limiting Event
described in clause (i) of the definition thereof and request by Lessor, Guarantor agrees to assume
all of the obligations of Lessee hereunder, under the Lease and the other Operative Documents on a
full recourse basis by written instrument between Lessee and Guarantor pursuant to which all of the
rights, duties and obligations of Lessee are assigned by Lessee to Guarantor and all of such
rights, duties and obligations of Lessee are assumed by Guarantor. Such instrument shall be
accompanied by such certificates of the Lessee Parties, opinions of counsel and amendments and
supplements to the other Operative Documents as Lessor and each of the Lenders shall deem necessary
to consummate the foregoing. In furtherance of the foregoing, Guarantor shall, and shall cause the
Lessee Parties to, execute, deliver and perform such other agreements, instruments and documents
and make such filings, notices and recordations as may be necessary to preserve the interests of
Lessor, each of the Lenders, and the other Indemnitees and shall otherwise cooperate with such
parties and give such further assurances as are reasonably necessary or advisable to effectuate the
foregoing.

          (c) Relationship of Guarantor and Lessee. Guarantor shall at all times cause Lessee
to remain a wholly owned Subsidiary of Guarantor.

          (d) Provisions of the Lennox Revolver Incorporated by Reference. Guarantor shall at
all times comply with the following Sections of the Lennox Revolver (as construed for purposes of
this subsection in accordance with the provisions set forth below), all of which Sections are
hereby incorporated by reference:

     (1) Section 5.01 (which is titled, “Compliance with Laws”);

     (2) Section 5.02 (which is titled, “Insurance”);

     (3) Section 5.03 (which is titled, “Maintenance of Properties and Lines of Business”);

     (4) Section 5.04 (which is titled, “Payment of Taxes”);

     (5) Section 5.05 (which is titled, “Corporate Existence, etc.”);

     (6) Section 5.08 (which is titled, “Environmental Matters”);

     (7) subject to the qualification set out below, Section 5.09 (which is titled, “Transactions with Affiliates”);

     (8) Section 5.10 (which is titled, “Mergers, Consolidation, etc..”);

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     (9) Section 5.15 (which is titled, “Financial Covenants”);

     (10) Section 5.18 (which is titled, “Financial and Business Information”);

     (11) Section 5.19 (which is titled, “Inspection; Confidentiality”); and

     (12) Section 5.20 (which is titled, “Books and Records”).

Notwithstanding the incorporation of Section 5.09 of the Lennox Revolver into this Agreement by
reference, for purposes of this Agreement, those Sections will not be construed to restrict any
payments or transactions between Guarantor and any Subsidiary or between any Subsidiaries of
Guarantor that, according to Section 5.16 of the Lennox Revolver (which is titled, “Limitation on
Restrictive Agreements”), are not to be restricted.

For purposes of determining requirements, calculations, Lease Defaults or Lease Events of Defaults
established in this Agreement or other Operative Documents by reference to the Lennox Revolver, the
Lennox Revolver will be construed as if:

     •      the Lennox Revolver continued indefinitely (and obligations of Guarantor remained
outstanding thereunder) notwithstanding any expiration or termination thereof;

     •      no modification of, or waiver under, the Lennox Revolver had been executed or granted
after the Closing Date other than written modifications or waivers approved in writing by
Lessor and the Required Lenders;

     •      the Lennox Revolver required Lessee to deliver to Lessor and Administrative Agent
copies of the notices and certificates required by the provisions listed above
contemporaneously with the delivery of the original notices and certificates to any agent or
lender under the Lennox Revolver (except that (i) in cases where the Lennox Revolver
requires notice of any Default or Event of Default, such requirement will be construed to
require notice of a Lease Default or Lease Event of Default, and (ii) any certificate of
compliance or similar notice required of Guarantor by the Lennox Revolver will include such
modifications as may be appropriate to allow Lessor and Lessee to determine compliance with
the Operative Documents by Lessee and Guarantor, rather than Guarantor’s compliance with the
Lennox Revolver);

     •      the Lennox Revolver required Lessor’s and Required Lender’s approval or consent to
anything for which the Lennox Revolver requires the consent or approval of any Agent or
Lender thereunder, including any document, instrument or provision that any of the Sections
listed above describes as being “in form and substance satisfactory to” (or by words of like
effect) any Agent or Lender thereunder.

          (e) Notices. Financials. Guarantor agrees to deliver copies of all financial
information that is required to deliver pursuant to clause (d) above to each Lender and to Lessor.

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SECTION VI

TRANSFERS BY LESSOR AND LENDERS

     SECTION 6.1. Transfers by Lessor or Lender. Neither Lessor nor Lender shall assign,
convey or otherwise transfer all or any portion of its right, title or interest in, to or under the
Operative Documents or the Leased Property except (a) as provided in the Operative Documents or (b)
to The Bank of Tokyo-Mitsubishi UFJ, Ltd., to Mizuho Corporate Bank, or to another bank, investment
bank, trust company, capital company, leasing company, insurance company, finance company,
commercial credit corporation, pension fund, “qualified institutional buyer” or accredited
investors as each are defined under the Securities Act, or other financial institution, or (c) to
any of successors or Affiliates of the entities listed in the preceding clause (b) that (1) is
organized under the laws of the United States, any state thereof or the District of Columbia, (2)
that has a combined capital and surplus (after deduction of the amount of intangible assets) or, if
applicable, consolidated tangible net worth, of not less than $50,000,000, (3) in the case of a
transfer by Lessor, can make and does make the representations to Lessee set forth on Exhibit
D attached hereto, and/or evidences to Lessee’s reasonable satisfaction that it is a “business”
as defined under FIN 46 and (4) in the case of a transfer by Lender, can make and does make the
representations to Lessee which Lender has made in Section 4.5; provided, however, that if any such
transfer includes the transfer of legal title to the Leased Property, Lessor shall have provided
Lessee with at least fifteen (15) days prior notice of its intention to convey such title to the
Leased Property, together with such information regarding the proposed transferee as is reasonably
requested by Lessee, and Lessee shall not have elected to exercise its purchase option as provided
in the Lease. However, nothing in this provision will be construed to prevent Lessor or Lender
from contractually sharing risks or rewards of the Transaction with third parties (participants)
that are not made parties to the Operative Documents.

SECTION VII

INDEMNIFICATION

     SECTION 7.1. General Indemnification. Subject to Section 7.6 hereof, Lessee
and Guarantor jointly and severally agree, whether or not any of the transactions contemplated
hereby shall be consummated, to assume liability for, and to indemnify, protect, defend, save and
hold harmless each Indemnitee, on an After-Tax Basis, from and against, any and all Claims that may
be imposed on, incurred by or asserted, or threatened to be asserted, against such Indemnitee
(whether because of action or omission by such Indemnitee or otherwise), whether or not such
Indemnitee shall also be indemnified as to any such Claim by any other Person and whether or not
such Claim arises or accrues prior to any Closing Date or after the Termination Date, in any way
relating to or arising out of:

          (a) the Transaction, any of the Operative Documents or any of the transactions, agreements or
instruments contemplated thereby, and any amendment, modification or waiver in respect thereof; or

          (b) the Leased Property or any part thereof or interest therein;

          (c) the purchase, design, construction, preparation, installation, inspection, delivery,
non-delivery, acceptance, rejection, ownership, management, possession, operation,

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rental, lease, sublease, repossession, maintenance, repair, alteration, modification,
addition, substitution, storage, transfer of title, redelivery, use, financing, refinancing,
disposition, operation, condition, sale (including, without limitation, any sale pursuant to the
Lease), return or other disposition of all or any part of any interest in the Leased Property or
the imposition of any Lien (or incurring of any liability to refund or pay over any amount as a
result of any Lien) thereon or on any other collateral securing the Notes, including, without
limitation: (1) Claims or penalties arising from any violation or alleged violation of law or in
tort (strict liability or otherwise), (2) latent or other defects, whether or not discoverable, (3)
any Claim based upon a violation or alleged violation of the terms of any restriction, easement,
condition or covenant or other matter affecting title to the Leased Property or any part thereof,
(4) the making of any Alterations in violation of any standards imposed by any insurance policies
required to be maintained by Lessee pursuant to the Lease which are in effect at any time with
respect to the Leased Property or any part thereof, (5) any Claim for patent, trademark or
copyright infringement, (6) Claims arising from any public improvements with respect to the Leased
Property resulting in any charge or special assessments being levied against the Leased Property or
any Claim for utility “tap-in” fees, and (7) Claims for personal injury or real or personal
property damage occurring, or allegedly occurring, on the Land, Improvements or Leased Property;

          (d) the offer, issuance, sale or delivery of the Equity Investment and Notes;

          (e) the breach or alleged breach by Lessee or Guarantor of any representation or warranty made
by it or deemed made by it in any Operative Document or any certificate required to be delivered by
any Operative Document;

          (f) the retaining or employment of any broker, finder or financial advisor by Lessee or
Guarantor to act on its behalf in connection with this Agreement, or the incurring of any fees or
commissions to which Lessor, Administrative Agent or any of the Lenders might be subjected by
virtue of their entering into the transactions contemplated by this Agreement;

          (g) the existence of any Lien on or with respect to the Leased Property, any Basic Rent or
Supplemental Rent, title thereto, or any interest therein, including any Liens which arise out of
the possession, use, occupancy, construction, repair or rebuilding of the Leased Property or by
reason of labor or materials furnished or claimed to have been furnished to Lessee, or any of its
contractors or agents or by reason of the financing of any personalty or equipment purchased or
leased by Lessee or Alterations constructed by Lessee, except in all cases the Liens listed as item
(a) in the definition of Permitted Liens;

          (h) the transactions contemplated hereby or by any other Operative Document, in respect of the
application of Parts 4 and 5 of Subtitle B of Title I of ERISA and any prohibited transaction
described in Section 4975(c) of the Code;

          (i) any act or omission by Buyer under the Purchase Agreement or any other Operative Document,
and any breach of any requirement, condition, restriction or limitation in any Deed; or

          (j) any Breakage Costs;

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provided, however, neither Lessee nor Guarantor shall be required to indemnify any
Indemnitee under this Section 7.1 for any of the following: (1) any Claim to the extent
that such Claim results from the willful misconduct or gross negligence of such Indemnitee, (2) any
Claim resulting from Lessor Liens which Lessor is responsible for discharging under the Operative
Documents, (3) without limiting the provisions of Section 7.2, any Claim related to the
Leased Property to the extent attributable to acts or events occurring after the expiration of the
Basic Lease Term and the return of the Leased Property to Lessor so long as Lessor, Administrative
Agent, each of the Lenders are not exercising remedies against Lessee or Guarantor in respect of
the Operative Documents, (4) any Claim to the extent that such Claim results from the breach by
Lessor of any covenant, representation or warranty made by it in any Operative Document, (5) any
Claim to the extent that such Claim results from the breach of Lender of any covenant,
representation or warranty made by it in any Operative Document and (6) Taxes (in being understood
that Section 7.4, rather than this Section 7.1, will govern Lessee’s obligations in regard to
Taxes). It is expressly understood and agreed that the indemnity provided for herein shall survive
the expiration or termination of, and shall be separate and independent from any other remedy under
this Agreement, the Lease or any other Operative Document.

          SECTION 7.2. Environmental Indemnity. In addition to and without limitation of
Section 7.1, Lessee and Guarantor jointly and severally agree to indemnify, hold harmless
and defend each Indemnitee from and against any and all claims (including without limitation third
party claims for personal injury or real or personal property damage), losses (including but not
limited to any loss of value of the Leased Property), damages, liabilities, fines, penalties,
charges, suits, settlements, demands, administrative and judicial proceedings (including informal
proceedings) and orders, judgments, remedial action, requirements, enforcement actions of any kind,
and all reasonable costs and expenses incurred in connection therewith (including, but not limited
to, reasonable attorneys’ and/or paralegals’ fees and expenses), including, but not limited to, all
costs incurred in connection with any investigation or monitoring of site conditions or any
clean-up, remedial, removal or restoration work by any federal, state or local government agency,
arising directly or indirectly, in whole or in part, out of

               (i) the presence in, on or under the Leased Property of any Hazardous Materials, or any
releases or discharges of any Hazardous Materials in, on, under, from or onto the Leased Property,

               (ii) any activity, including, without limitation, construction, carried on or undertaken on or
off the Leased Property, and whether by a Lessee, Guarantor or any predecessor in title or any
employees, agents, contractors or subcontractors of a Lessee, Guarantor or any predecessor in
title, or any other Persons, in connection with the handling, treatment, removal, storage,
decontamination, clean-up, transport or disposal of any Hazardous Materials that at any time are
located or present on or under or that at any time migrate, flow, percolate, diffuse or in any way
move onto or under the Leased Property,

               (iii) to the extent related in any way to the Leased Property, loss of or damage to any
property or the environment (including, without limitation, clean-up costs, response costs,
remediation and removal costs, cost of corrective action, costs of financial assurance, fines and
penalties and natural resource damages), or death or injury to any Person,

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and all expenses associated with the protection of wildlife, aquatic species, vegetation,
flora and fauna, and any mitigative action required by or under Environmental Laws,

               (iv) to the extent related in any way to the Leased Property any claim concerning lack of
compliance with Environmental Laws, or any act or omission causing an environmental condition that
requires remediation or would allow any governmental agency to record a lien or encumbrance on the
land records, or

               (v) any residual contamination in, on or under the Leased Property, or affecting any natural
resources, and to any contamination of any property or natural resources arising in connection with
the generation, use, handling, storage, transport or disposal of any such Hazardous Materials; in
each case irrespective of whether any of such activities were or will be undertaken in accordance
with applicable laws, regulations, codes and ordinances; in any case with respect to the matters
described in the foregoing clauses (i) through (v) that arise or occur prior to or during the Basic
Lease Term, at any time during which Lessee or any Affiliate thereof owns any interest in or
otherwise occupies or possesses the Leased Property or any portion thereof, or during any period
after and during the continuance of any Lease Event of Default;

provided, however, neither Lessee nor Guarantor shall be required to indemnify any
Indemnitee under this Section 7.2 for (1) any Claim to the extent that such Claim results
from the willful misconduct or gross negligence of such Indemnitee and (2) any Claim to the extent
attributable to acts or events occurring after the expiration of the Basic Lease Term and the
return of the Leased Property to Lessor pursuant to the Basic Lease. It is expressly understood and
agreed that the indemnity provided for herein shall survive the expiration or termination of and
shall be separate and independent from any other remedy under this Agreement, the Lease or any
other Operative Document.

          SECTION 7.3. Proceedings In Respect Of Claims. With respect to any amount that a
Lessee or Guarantor is requested by an Indemnitee to pay by reason of Section 7.1 or
7.2, such Indemnitee shall, if so requested by Lessee or Guarantor and prior to any
payment, submit such additional information to Lessee or Guarantor as Lessee or Guarantor may
reasonably request and which is in the possession of such Indemnitee to substantiate properly the
requested payment. In case any action, suit or proceeding shall be brought against any Indemnitee,
such Indemnitee shall notify Lessee or Guarantor of the commencement thereof, and Lessee shall be
entitled, at its expense, to participate in, and, to the extent that Lessee desires to, assume and
control the defense thereof with counsel reasonably satisfactory to such Indemnitee;
provided, however, that such Indemnitee may pursue a motion to dismiss such
Indemnitee from such action, suit or proceeding with counsel of such Indemnitee’s choice at
Lessee’s expense; and provided further that Lessee and Guarantor jointly and severally may assume
and control the defense of such proceeding only if Lessee and Guarantor shall have acknowledged in
writing their obligations to fully indemnify such Indemnitee (on and subject to the terms and
conditions hereof) in respect of such action, suit or proceeding, Lessee and Guarantor jointly and
severally shall pay all costs and expenses related to such action, suit or proceeding as and when
incurred and Lessee shall keep such Indemnitee fully apprised of the status of such action suit or
proceeding and shall provide such Indemnitee with all information with respect to such action suit
or proceeding as such Indemnitee shall reasonably request; and, provided further,
that Lessee

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shall not be entitled to assume and control the defense of any such action, suit or proceeding
if and to the extent that, (A) in the reasonable opinion of such Indemnitee, (x) such action, suit
or proceeding involves any risk of imposition of criminal liability or any material risk of
material civil liability (in excess of the amount of any liability insurance coverage maintained in
favor of such Indemnitee) on such Indemnitee or (y) such action, suit or proceeding will involve a
material risk of the sale, forfeiture or loss of, the Leased Property or any material part thereof
unless Lessee shall have posted a bond or other security satisfactory to the relevant Indemnitees
in respect to such risk or (z) the control of such action, suit or proceeding would involve an
actual or potential conflict of interest, or (B) such proceeding involves Claims not fully
indemnified by Lessee which Lessee and the Indemnitee have been unable to sever from the
indemnified claim(s), or (C) an Event of Default has occurred and is continuing. The Indemnitee may
participate in a reasonable manner at its own expense and with its own counsel in any proceeding
conducted by a Lessee in accordance with the foregoing.

     If Lessee fails to fulfill the conditions to Lessee’s assuming the defense of any claim on or
prior to the date that is fifteen (15) days prior to the date that an answer or response is
required, the Indemnitee may undertake such defense, at Lessee’s and Guarantor’s joint and several
expense.

     Lessee shall not enter into any settlement or other compromise with respect to any Claim which
is entitled to be indemnified under Section 7.1 or 7.2 without the prior written
consent of the related Indemnitee, which consent shall not be unreasonably withheld. Unless a Lease
Event of Default shall have occurred and be continuing, no Indemnitee shall enter into any
settlement or other compromise with respect to any claim which is entitled to be indemnified under
Section 7.1 or 7.2 without the prior written consent of Guarantor, which consent
shall not be unreasonably withheld, unless such Indemnitee waives its right to be indemnified under
Section 7.1 or 7.2 with respect to such Claim.

     Upon payment in full of any Claim by Lessee or Guarantor pursuant to Section 7.1 or
7.2 to or on behalf of an Indemnitee, Lessee and Guarantor, without any further action,
shall be subrogated to any and all claims that such Indemnitee may have relating thereto (other
than claims in respect of insurance policies maintained by such Indemnitee at its own expense), and
such Indemnitee shall execute such instruments of assignment and conveyance, evidence of claims and
payment and such other documents, instruments and agreements as may be reasonably necessary to
preserve any such claims and otherwise cooperate with Lessee and Guarantor and give such further
assurances as are reasonably necessary or advisable to enable Lessee and Guarantor vigorously to
pursue such claims.

     Any amount payable to an Indemnitee pursuant to Section 7.1 or 7.2 shall be
paid to such Indemnitee promptly upon, but in no event later than thirty (30) days after, receipt
of a written demand therefor from such Indemnitee, accompanied by a written statement describing in
reasonable detail the basis for such indemnity and the computation of the amount so payable.

     If for any reason the indemnification provided for in Section 7.1 or 7.2 is
unavailable to an Indemnitee or is insufficient to hold an Indemnitee harmless from any Claim
intended to be covered thereby, then Lessee and Guarantor jointly and severally agree to contribute
to the amount paid or payable by such Indemnitee as a result of such Claim in such proportion as is

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appropriate to reflect not only the relative benefits received by such Indemnitee on the one
hand and by Lessee and Guarantor on the other hand but also the relative fault of such Indemnitee
as well as any other relevant equitable considerations. It is expressly understood and agreed that
the right to contribution provided for herein shall survive the expiration or termination of and
shall be separate and independent from any other remedy under this Agreement, the Lease or any
other Operative Document.

     SECTION 7.4. General Tax Indemnity 

          (a) Lessee and Guarantor jointly and severally agree, whether or not any of the transactions
contemplated hereby shall be consummated, to assume liability for, pay or cause to be paid,
indemnify and save each Indemnitee, on an After Tax Basis, harmless from and against any and all
Impositions.

          (b) Contests. If a written claim for payment is made by any taxing authority against
an Indemnitee for any Imposition with respect to which Lessee or Guarantor may be liable for
indemnity pursuant to this Section 7.4, such Indemnitee shall give Lessee and Guarantor written
notice of such claim promptly after its receipt, and shall furnish Lessee and Guarantor with copies
of such claim and all other writings received from the taxing authority to the extent relating to
such claim. The Indemnitee shall not pay such claim until at least thirty (30) days after providing
Lessee and Guarantor with such written notice, unless required to do so by law or regulation.
Subject to the conditions set forth in the following paragraph, Lessee and Guarantor shall be
entitled to contest (acting through counsel selected by Lessee and Guarantor and reasonably
acceptable to the Indemnitee), and control the contest of, any such claim with respect to an
Imposition (a “Tax Claim”) if (i) the contest of the Tax Claim may be pursued in the name
of Lessee or Guarantor; (ii) the contest of the Tax Claim must be pursued in the name of the
Indemnitee but can be pursued independently from any other proceeding involving a tax liability of
such Indemnitee for which Lessee and Guarantor are not responsible or (iii) the Indemnitee requests
that Lessee and Guarantor control such contest. In the case of all other Tax Claims, subject to the
conditions set forth in the following paragraph, the Indemnitee shall contest the Tax Claim if
Lessee and Guarantor shall request that the Imposition be contested, and the following rules shall
apply with respect to such contest:

               (1) the Indemnitee shall control the contest of such Tax Claim in good faith taking into
account any and all tax consequences to the Indemnitee, including, without limitation, those
associated with a recharacterization of the transaction contemplated by the Operative Documents by
any taxing authority (acting through counsel selected by the Indemnitee and reasonably acceptable
to Lessee and Guarantor),

               (2) the Indemnitee shall not otherwise settle, compromise or abandon such contest without
Lessee’s and Guarantor’s prior written consent except as provided in the concluding paragraph to
this Section 7.4(b).

          In either case, the party conducting such contest shall consult with and keep reasonably
informed the other party and its designated counsel with respect to such Tax Claim, shall provide
the other party with copies of any reports or claims issued by the relevant auditing agents or
taxing authority as well as related portions of tax returns, and shall consider and consult in good

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faith with the other party regarding any request, including but not limited to requests (a) to
resist payment of Impositions if practical and (b) not to pay such Impositions except under protest
if protest is necessary and proper (but the decisions regarding what actions are to be taken shall
be made by the controlling party in its sole judgment).

     Notwithstanding the foregoing, no contest with respect to a Tax Claim shall be required or
permitted and Lessee and Guarantor shall be required to pay the applicable Impositions without
contest, unless:

               (1) within thirty (30) days after notice by the Indemnitee to Lessee and Guarantor of such Tax
Claim, Lessee and Guarantor shall request in writing to the Indemnitee that such Tax Claim be
contested; provided that if a shorter period is required for taking action with respect to such Tax
Claim and the Indemnitee notifies Lessee and Guarantor of such requirement, Lessee and Guarantor
shall use reasonable efforts to request such contest within such shorter period,

               (2) no Event of Default has occurred and is continuing,

               (3) there is no risk of sale, forfeiture or loss of, or, except in the case of a Tax Claim
involving only disputed state or local property or ad valorem taxes, the creation of a Lien on
Lessee’s interest in, the Leased Property as a result of such Tax Claim (other than a Permitted
Lien); provided that this clause (3) shall not apply if the Lessee and Guarantor post security
satisfactory to the Indemnitee in its sole discretion, or the Imposition is fully paid in either
manner specified in clause (5) below,

               (4) there is no risk of imposition of any criminal penalties,

               (5) if such contest involves payment of such Imposition, Lessee and Guarantor shall either
advance to the Indemnitee on an interest-free basis, and with no after-tax cost to such Indemnitee,
the amount of the Imposition (a “Tax Advance”) or pay such Indemnitee the amount payable by
Lessee and Guarantor pursuant to this Section 7.4 with respect to such Imposition,

               (6) Lessee and Guarantor agree to pay (and pay on demand) and with no after-tax cost to such
Indemnitee, all reasonable costs, losses and expenses incurred by the Indemnitee in connection with
the contest of such claim (including all reasonable legal, accounting and investigatory fees and
disbursements),

               (7) except in the case of a Tax Claim involving only disputed state or local property or ad
valorem taxes, (A) the Indemnitee has been provided at Lessee’s and Guarantor’s sole expense with
an opinion, reasonably acceptable to such Indemnitee, of independent tax counsel of recognized
standing selected by Lessee and Guarantor and reasonably acceptable to the Indemnitee to the effect
that there is a reasonable basis for contesting such Tax Claim; and (B) the amount of the disputed
federal Taxes in controversy, taking into account the amount of all similar and logically related
Impositions with respect to the transactions contemplated by the Operative Documents that could be
raised in any other year (including any future year) not barred by the statute of limitations,
exceeds $50,000;

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               (8) Lessee and Guarantor shall acknowledge in writing their liability to indemnify the
Indemnitee hereunder, on and subject to the terms and conditions hereof, in respect of such claim
if the contest is not successful, and

               (9) in the case of a judicial appeal, no appeal to the U.S. Supreme Court shall be required of
the Indemnitee or shall be permitted by Lessee and Guarantor.

     Notwithstanding anything to the contrary contained in this Section 7.4, the Indemnitee at any
time may elect to decline to take any action or any further action with respect to a Tax Claim and
may in its sole discretion settle or compromise any contest with respect to such Tax Claim without
Lessee’s and Guarantor’s consent if the Indemnitee:

               (1) waives its right to any indemnity payment by Lessee and Guarantor pursuant to this Section
7.4 in respect of such Tax Claim (and any other claim for Impositions with respect to any other
taxable year and/or with respect to any other claim, the contest of which is effectively precluded
by the Indemnitee’s declination to take action with respect to the Tax Claim), and

               (2) promptly repays to Lessee and Guarantor any Tax Advance and any amount paid to such
Indemnitee under this Section 7.4 in respect of such Taxes, but not any costs or expenses with
respect to any such contest.

     Except as provided in the preceding sentence, any such waiver shall be without prejudice to
the rights of the Indemnitee with respect to any other Tax Claim.

          (c) Reports. In the case of any report, return or statement required to be filed with
respect to any Impositions that are subject to indemnification under this Section 7.4 and of which
the Guarantor or the Lessee has knowledge, the Guarantor or the Lessee, as the case may be, shall
promptly notify such Indemnitee of such requirement and, at the expense of the Guarantor and the
Lessee (i) if the Guarantor or the Lessee, as the case may be, is permitted (unless otherwise
requested by such Indemnitee) by Applicable Law, timely file such report, return or statement in
its own name or (ii) if such report, return or statement is required to be in the name of or filed
by such Indemnitee or such Indemnitee otherwise requests such report, return or such statement for
filing by such Indemnitee in such manner as shall be satisfactory to such Indemnitee and send the
same to such Indemnitee for filing no later than fifteen (15) days prior to the due date therefor.
In any case in which such Indemnitee will file any such report, return or statement, the Guarantor
or the Lessee shall, upon written request of such Indemnitee, provide such Indemnitee with such
information as is reasonably necessary to allow such Indemnitee to file such report, return or
statement.

          (d) Forms. If any Indemnitee is not created or organized under the laws of the United
States or any state or political subdivision thereof, such Indemnitee will furnish to the Agent
upon the request of the Lessee, to the extent required for U.S. federal income tax purposes,
Internal Revenue Service Form W-8 BEN or Form W-8 ECI or any subsequent versions of such forms or
successors thereto as evidence of such Indemnitee’s complete exemption from the withholding of U.S.
federal income tax with respect to indebtedness of the Lessee for federal income tax purposes.
Such forms shall be delivered by such Indemnitee (i) on

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or before the date such Indemnitee becomes a party to any of the Operative Documents and
promptly before the expiration, obsolescence or invalidity of any form previously delivered by such
Indemnitee and (ii) before or promptly after the occurrence of any event requiring a change in the
most recent form previously delivered by it to the Lessee pursuant to this Section 7.4,
unless, in the case of either clause (i) or (ii), as a result of the adoption of or a change in
applicable law, regulation or, in each case, the interpretation or administration thereof by any
Governmental Authority charged with the interpretation or administration thereof (whether or not
having the force of law) (including any statute, treaty, ruling or regulation by a governmental,
judicial or taxing authority), such Indemnitee is not entitled to provide such a form. The Agent
and the Lessee shall be entitled to rely on such forms in its possession until receipt of any
revised or successor form pursuant to the preceding sentence.

     SECTION 7.5. Increased Costs, Etc.

          (a) Alternate Rate. Notwithstanding any other provisions herein, if any requirement
of law, regulation, order or decree or any change therein or in the interpretation or application
thereof shall make it unlawful for Lessor or Lenders to make or maintain or supply the Equity
Investment or the Loan respectively, at a rate based on the LIBOR Rate as contemplated by the
Operative Documents, then the Loans and Equity Investment outstanding, if any, shall, if and when
required by such law, be converted automatically to bear interest at a rate reasonably comparable
to the applicable LIBOR Rate, plus the Applicable Margin or other applicable amount pursuant hereto
or, if such rate is not available, at the Alternative Rate. If any such conversion of the interest
or yield rate applicable to the Loans and Equity Investment is made on a day which is not the end
of a Rent Period, Lessee shall pay, on a pro rata basis, to Lessor and each of the Lenders, as
applicable, on such conversion date interest at the related LIBOR Rate, plus the Applicable Margin
or other applicable amount pursuant hereto on the outstanding principal amount of the Loan and the
Equity Investment to the date of such automatic conversion and, upon the request of Lessor or any
Lender, shall pay to Lessor or such Lender such other amount or amounts as may be necessary to
compensate such party for any loss or expense which such party deems to be material and which has
been sustained or incurred by such party as a result of such conversion. A certificate as to any
additional amounts payable pursuant to the foregoing sentence submitted by a Lessor or any Lender
to Guarantor shall be conclusive absent manifest error. As soon as practicable, each of the Lenders
and Lessor shall notify Guarantor of any event of which it has knowledge occurring after the date
of this Agreement, which will cause or is likely to cause a conversion of the interest or yield
rate applicable to the Loan or the Equity Investment, as applicable, pursuant to this Section
7.5, and each of the Lenders or such Funding Party shall designate a different funding office
or take such other action to avoid the need for, or to reduce the amount of compensation related
to, such conversion of the interest or yield rate applicable to Purchase Amounts which would not,
in the sole opinion of Lender or Lessor, be otherwise disadvantageous to each of the Lenders or the
Funding Parties.

          (b) Regulatory Changes. If any Regulatory Change occurring after the date hereof:

               (i) shall subject any of the Lenders to any tax, duty or other charge with respect to any Note
(or its participation therein) or the Equity Investment, or any of

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Lenders’ or Lessor’s obligations or right to acquire or hold any Note or the Equity
Investment, as applicable or to provide funding, liquidity, credit or asset purchase support to a
commercial paper conduit in respect of any of the foregoing (or with respect to its participation
in any of the foregoing) or shall change the basis of taxation of payments to each of the Lenders
of the principal or interest on any Note (or its participation in any of the foregoing) or to
Lessor of the principal or yield on the Equity Investment, or any other amounts due hereunder or
under any funding, liquidity, or credit support agreement it may have with a commercial paper
conduit (collectively, a “Covered Document”) or Lenders’ or Lessor’s obligations or rights,
if any, to acquire or participate in any Note or the Equity Investment, as applicable or to provide
funding, liquidity, credit or asset purchase support to a commercial paper conduit in respect of
any of the foregoing (or with respect to its participation in any of the foregoing) (except for
changes in the rate of tax on or determined by reference to the overall net income of each of the
Lenders or Lessor or franchise tax based on capital or net income of each of the Lenders or Lessor
imposed by the United States of America or any state); or

               (ii) shall impose upon any of the Lenders or Lessor, modify or deem applicable any reserve,
special deposit or similar requirement against assets of any of the Lenders or Lessor, deposits or
obligations with or for the account of any of the Lenders or Lessor or with or for the account of
any Affiliate (or entity deemed by the Federal Reserve Board to be an Affiliate) of any of the
Lenders or Lessor, as applicable or credit extended by any of the Lenders or Lessors; or

               (iii) shall change the amount of capital maintained or required or requested or directed to be
maintained by any of the Lenders or Lessor; or

               (iv) shall impose any other condition affecting any Note (or its participation therein) or the
Equity Investment or any of Lenders’ or Lessor’s obligations or right to acquire or hold any Note
or the Equity Investment, as applicable or to provide funding, liquidity, credit or asset purchase
support to a commercial paper conduit in respect of any of the foregoing (or with respect to its
participation in any of the foregoing);

and the result of any of the foregoing is or would be

    (I) to increase the cost to (or impose a cost on) each of the Lenders funding or
acquiring or holding any Note or to Lessor, or loans or other extensions of credit under any
Covered Document or any obligation or commitment of such Lenders or Lessor with respect to
any of the foregoing,

    (II) to reduce the amount of any sum received or receivable by a Lender or Lessor as
successor in interest to a commercial paper conduit under this Agreement or under any
Covered Document (or its participation in any of the foregoing), or

    (III) to reduce the rate of return on the capital of a Lender or Lessor as a
consequence of its obligations under the Covered Documents (or its participation therein) to
a level below that which such Lender or Lessor, as applicable, could otherwise have
achieved,

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in each such case by an amount reasonably deemed by such Lenders or Lessor to be material, then
prior to the next scheduled Payment Date, and in any case within 30 days after demand by such
Lenders or Lessor (which demand shall be accompanied by a statement setting forth in reasonable
detail the basis of such demand), then Lessee shall pay directly to such Lenders and Lessor, as
applicable, such additional amount or amounts as will compensate each of the Lenders for such
additional or increased cost (net of any savings) or such reduction (the “Yield Protection
Amount”).

In determining any amount provided for or referred to in this Section 7.5(b), such affected
Lenders and Lessor may use any reasonable averaging and attribution method that each (in its sole
discretion) shall deem applicable. Any of the Lenders or Lessor when making a claim under this
Section 7.5(b) shall submit to Lessee a statement as to such increased cost or reduced
return (including calculation thereof in reasonable detail), which statement shall, in the absence
of error, be conclusive and binding upon Lessee. None of the Lenders or Lessor shall be entitled
to recover any Yield Protection Amount under this Section 7.5(b), incurred or accrued more
than 180 days prior to the notice described in this Section 7.5(b), unless the Regulatory
Change giving rise to such Yield Protection Amount is retroactive in its application to such
Lenders or Lessor, as applicable.

          (c) Compliance with Laws. If Lessor or any Lender (each, a “Funding Party”)
shall have determined that compliance by such Funding Party with any applicable law, governmental
rule, regulation or order regarding capital adequacy of banks or bank holding companies, or any
interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by such Funding
Party with any request or directive regarding capital adequacy (whether or not having the force of
law and whether or not failure to comply therewith would be unlawful) of any such authority,
central bank or comparable agency, has or would have the effect of reducing the rate of return on
such Funding Party’s capital as a consequence of such Funding Party’s obligations hereunder to a
level below that which such Funding Party could have achieved but for such compliance (taking into
consideration such Funding Party’s policies with respect to capital adequacy immediately before
such compliance and assuming that such Funding Party’s capital was fully utilized prior to such
compliance) by an amount deemed by such Funding Party to be material, then, within thirty (30) days
after demand on Lessee, Lessee shall pay, on a pro rata basis, to such Funding Party as are so
affected such additional amounts as shall be sufficient to compensate such Funding Parties for such
reduced return. A certificate of an officer of any such Funding Party setting forth the amount to
be paid to it and the basis for computation thereof hereunder shall, in the absence of manifest
error, be conclusive. In determining such amount, such Funding Party may use any reasonable
averaging and attribution methods.

          (d) Calculation of Amounts Owed. If a Funding Party becomes entitled to claim any
additional amounts pursuant to this Section 7.5, it shall promptly notify Guarantor
thereof. A certificate as to any additional amounts payable pursuant to the foregoing submitted by
a Funding Party to Guarantor shall be conclusive absent manifest error. For purposes of the
application of this Section 7.5, and in calculating the amount necessary to compensate such
Funding Party for any imposition of or increase in capital requirements, such Funding Party shall
determine the applicability of this provision and calculate the amount payable to it hereunder in a

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manner consistent with the manner in which it shall apply and calculate similar compensation
payable to it by other borrowers having provisions in their credit agreements comparable to this
Section.

          (e) Reserve Requirements. If any Funding Party shall, at any time, incur costs
associated with reserve requirements pursuant to Regulation D in connection with the making or
maintenance of any Purchase Amount, and if such costs are not already reflected in the formula for
the computation of LIBOR as set forth in the definition thereof, then Lessee shall immediately pay,
on a pro rata basis, such costs to such Funding Party in accordance with Section 7.5(d).

          (f) Failure to Accept Purchase Amounts. Each of Lessee and Guarantor, jointly and
severally, shall indemnify each Funding Party against any loss, funding cost, expense or loss of
earnings, which such Funding Party may, as a consequence of Lessee’s failure to accept the proceeds
of the Loan and the Equity Investment on the Closing Date, failure to make a payment on the due
date thereof or the payment, prepayment or conversion of the Loan or the Equity Investment
(including pursuant to Article XIV of the Lease) subject to LIBOR Rate options hereunder on a day
other than a Payment Date, sustain or incur in liquidating or employing deposits from third parties
acquired to effect, fund or maintain such or any part thereof. If a Funding Party becomes entitled
to claim any additional amounts pursuant to this Section, it shall promptly notify Administrative
Agent, which shall promptly notify each of the Lenders and Guarantor thereof.

SECTION VIII

MISCELLANEOUS

     SECTION 8.1. Survival of Agreements. The representations, warranties, covenants,
indemnities and agreements of the parties provided for in the Operative Documents, and the parties’
obligations under any and all thereof, shall survive the execution and delivery and the termination
or expiration of this Agreement and any of the Operative Documents, the transfer of the Leased
Property to Lessor as provided herein (and shall not be merged into any Deed), any disposition of
any interest of Lessor in the Leased Property, the purchase and sale of the Notes, payment therefor
and any disposition thereof and shall be and continue in effect notwithstanding any investigation
made by any party hereto or to any of the other Operative Documents and the fact that any such
party may waive compliance with any of the other terms, provisions or conditions of any of the
Operative Documents.

     SECTION 8.2. Notices. Unless otherwise specified herein, all notices, requests,
demands or other communications to or upon the respective parties hereto shall be addressed to such
parties at the addresses therefor as set forth in Schedule 8.2, as such other address as
any such party shall specify to the other parties hereto, and shall be deemed to have been given
(i) the Business Day after being sent, if sent by overnight courier service; (ii) the Business Day
sent, if sent by messenger; (iii) the day sent, if sent by facsimile or electronically during
business hours of a Business Day (or on the next Business Day if otherwise sent by facsimile after
business hours) and confirmed in writing via the means set forth in clauses (i) and (ii) hereof; or
(iv) three (3) Business Days after being sent, if sent by registered or certified mail, postage
prepaid.

- 39 -

 

     SECTION 8.3. Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all
such counterparts shall together constitute but one and the same instrument.

     SECTION 8.4. Amendments; Release. No Operative Document may be terminated, amended,
supplemented, waived or modified with respect to Lessee, Guarantor or any Funding Party, except (a)
in the case of a termination, amendment, supplement, waiver or modification to be binding on the
Lessee or Guarantor, with the written agreement or consent of Lessee or Guarantor, and (b) in the
case of a termination, amendment, supplement, waiver or modification to be binding on the Funding
Parties, with the written agreement or consent of each of the Funding Parties; provided,
however, that subject to Sections 7.1 and 7.2 of the Credit Agreement, no such termination,
amendment, supplement, waiver or modification shall, without the written agreement or consent of
Lessor, Administrative Agent and each of the Lenders, be made hereto or to the Lease, the Credit
Agreement or the Guaranty. Notwithstanding anything contained herein or in any other Operative
Document to the contrary, no Operative Document, or portion thereof, may be amended, modified,
supplemented or waived except by a written instrument and any such amendment, modification,
supplement or waiver other than in writing shall be unenforceable and ineffective.

     SECTION 8.5. Headings, etc. The Table of Contents and headings of the various
Articles and Sections of this Agreement are for convenience of reference only and shall not modify,
define, expand or limit any of the terms or provisions hereof.

     SECTION 8.6. Parties in Interest. Except as expressly provided herein, none of the
provisions of this Agreement is intended for the benefit of any Person except the parties hereto,
the Authorities and their respective successors and permitted assigns.

     SECTION 8.7. GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVERS 

          (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF
THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE
GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. THIS AGREEMENT AND THE
OTHER OPERATIVE DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT
TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.

          (b) ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER OPERATIVE DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF TRUSTEE, LENDERS, HOLDER, LESSEE, GUARANTOR OR LESSOR SHALL
BE BROUGHT AND MAINTAINED IN THE

- 40 -

 

COURTS OF THE STATE OF NEW YORK, NEW YORK COUNTY OR IN THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
PROPERTY MAY BE BROUGHT, AT THE OPTION OF LESSOR OR TRUSTEE ACTING AT THE DIRECTION OF THE REQUIRED
LENDERS, IN THE COURTS OF ANY JURISDICTION WHERE SUCH PROPERTY MAY BE FOUND. EACH PARTY HERETO
HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK, NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. EACH PARTY
HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR
HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE
EXTENT THAT EACH PARTY HERETO HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT
AND THE OTHER OPERATIVE DOCUMENTS.

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

     SECTION 8.8. Expenses. To the extent not paid from the proceeds of the Loan or the
Equity Investment in the event Lessee and Guarantor, jointly and severally, agree to pay, as
Supplemental Rent, all reasonable and documented out-of-pocket costs and expenses of Lessor,
Administrative Agent and each of the Lenders in connection with the preparation, execution and
delivery of the Operative Documents and the documents and instruments referred to therein and any
amendment, waiver or consent relating thereto (including, without limitation, the reasonable fees
and disbursements of counsel to such parties) and of Lessor, Administrative Agent and each of the
Lenders in connection with the enforcement of the Operative Documents and the

- 41 -

 

documents and instruments referred to therein (including, without limitation, the reasonable
fees and disbursements of counsel to such parties). All references in the Operative Documents to
“attorneys’ fees” or “reasonable attorneys fees” shall mean reasonable attorneys’ fees actually
incurred, without regard to any statutory definition thereof.

     SECTION 8.9. Severability. Any provision of this Agreement that 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, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     SECTION 8.10. Limited Liability of Lessor. Notwithstanding anything to the contrary
herein or in any of the other Operative Documents, each of Administrative Agent, Lessee, Guarantor
and each of the Lenders agrees that, except as expressly set forth below, (a) all payments to be
made by Lessor in respect of the Loan, the Notes, the Participation Agreement and the other
Operative Documents shall be made solely from certain payments received pursuant to the Lease and
the Guaranty and proceeds of the Leased Property and only to the extent that Lessor or
Administrative Agent shall have received sufficient payments from such sources to make payments in
respect of the Loan in accordance with Section 3 of the Credit Agreement; (b) none of Lessor, each
Affiliate of Lessor and each shareholder, partner, officer, director and employee of Lessor and
each Affiliate of Lessor (collectively, the “Lessor Related Parties”) shall have any
personal liability to Lessee, Guarantor, Administrative Agent, any Lender or any other Person or
any successor or assign of any of the foregoing persons for any claim or obligation based on or in
respect of any of the Operative Documents (including, without limitation, the repayment of the
Loan) or arising in any way from the transactions contemplated by the other Operative Documents,
and (c) no such party shall have any recourse to Lessor or any Lessor Related Party, except that
this provision will not excuse or limit the personal liability of Lessor or any Lessor Related
Party with respect to (i) Lessor’s Liens claimed by, through or under Lessor or such Lessor Related
Party, (ii) its gross negligence or willful misconduct, and (iii) solely in favor of the
Administrative Agent and Lenders with respect to the Loan, any interest the Administrative Agent
and Lenders may have in or claim to the Lessor Collateral; provided, however, that nothing
in this Section 8.10 shall prevent recourse by Lessee to all estate, right, title and interest of
Lessor in and to the Leased Property with respect to breaches by Lessor of its express obligations
in the Lease.

     SECTION 8.11. Closing. If this Agreement is executed and delivered prior to the
Closing Date, the parties hereto agree that neither Lessor nor any Lender shall be obligated to
close the transaction and fund the Loan and the Equity Investment, as applicable, after July 30,
2006.

     SECTION 8.12. Existing Lennox Leases. The parties hereto agree that, effective as of
the Closing Date, each of the Existing Lennox Leases shall terminate and be deemed to have been
replaced in its entirety by the Lease.

[balance of page intentionally left blank/signatures follow]

- 42 -

 

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

	 	 	 	 	 
	 	LENNOX PROCUREMENT COMPANY INC., 

as Lessee

 	 
	 	By:  	
/s/ Gregory A. Moseman	 
	 	 	Name:  	Gregory A. Moseman 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	LENNOX INTERNATIONAL, INC., 

as Guarantor

 	 
	 	By:  	
/s/ Gary A. Larson	 
	 	 	Name:  	Gary A. Larson 	 
	 	 	Title:  	Vice President, Treasurer 	 
	 
	 	BTMU CAPITAL CORPORATION, 

as Lessor

 	 
	 	By:  	
/s/ Cheryl A. Behan	 
	 	 	Name:  	Cheryl A. Behan 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	MHCB (USA) LEASING AND FINANCE 

CORPORATION, as Lender and 

Administrative Agent

 	 
	 	By:  	
/s/ Victor Mora	 
	 	 	Name:  	Victor Mora 	 
	 	 	Title:  	Vice President 	 
	 

S - 1exv10w3

 

EXHIBIT 10.3

This instrument was prepared by

and when recorded return to:

Bruce D. Hickey, Esq.

Dechert LLP

200 Clarendon Street, 27th Floor

Boston, MA 02110

 

MEMORANDUM OF LEASE, DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE

FILING

Dated as of June 22, 2006

by and between

LENNOX PROCUREMENT COMPANY INC.

and

BTMU CAPITAL CORPORATION

and

JEFFREY L. BELL, as Deed of Trust Trustee

for the benefit of

BTMU CAPITAL CORPORATION

 

This Memorandum of Lease has been executed in several counterparts. To the extent, if any, that
this document constitutes chattel paper (as such term is defined in the Uniform Commercial Code as
in effect in any applicable jurisdiction), no lien on this document may be created through the
transfer or possession of any counterpart other than the original counterpart containing the
receipt therefor executed by Administrative Agent on or following the signature page of this
Memorandum of Lease.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.

	 	DEFINITIONS AND INTERPRETATION
	 	 	2	 
	SECTION 2.

	 	ACCEPTANCE AND APPROVAL
	 	 	5	 
	SECTION 3.

	 	LEASE OF LEASED PROPERTY; PAYMENT AND PERFORMANCE OF OBLIGATIONS
	 	 	5	 
	SECTION 4.

	 	BASIC LEASE TERM
	 	 	5	 
	SECTION 5.

	 	NOTICE OF PURCHASE OPTIONS
	 	 	5	 
	SECTION 6.

	 	LESSEE GRANT OF LIEN AND SECURITY INTEREST
	 	 	6	 
	SECTION 7.

	 	REMEDIES
	 	 	6	 
	SECTION 8.

	 	REMEDIES NOT EXCLUSIVE	 	 	12	 
	SECTION 9.

	 	OTHER COVENANTS
	 	 	13	 
	SECTION 10.

	 	PERFORMANCE BY LESSOR OF LESSEE’S OBLIGATIONS	 	 	13	 
	SECTION 11.

	 	DUTY OF LESSOR
	 	 	14	 
	SECTION 12.

	 	POWERS COUPLED WITH AN INTEREST	 	 	14	 
	SECTION 13.

	 	AUTHORIZATION OF FINANCING STATEMENTS	 	 	14	 
	SECTION 14.

	 	SECURITY AGREEMENT UNDER UCC
	 	 	14	 
	SECTION 15.

	 	AUTHORITY OF LESSOR
	 	 	15	 
	SECTION 16.

	 	NATURE OF THE TRANSACTION
	 	 	15	 
	SECTION 17.

	 	INCORPORATION INTO LEASE
	 	 	17	 
	SECTION 18.

	 	NOTICE TO POTENTIAL CLAIMANT
	 	 	17	 
	SECTION 19.

	 	RATIFICATION
	 	 	18	 
	SECTION 20.

	 	ASSIGNMENT OF LEASE AND LIENS	 	 	18	 
	SECTION 21.

	 	NOTICES
	 	 	18	 
	SECTION 22.

	 	SEVERABILITY
	 	 	18	 
	SECTION 23.

	 	AMENDMENTS IN WRITING; CUMULATIVE REMEDIES
	 	 	18	 
	SECTION 24.

	 	SECTION HEADINGS	 	 	19	 
	SECTION 25.

	 	SUCCESSORS AND ASSIGNS
	 	 	19	 
	SECTION 26.

	 	PARTIAL RELEASE; FULL RELEASE	 	 	19	 
	SECTION 27.

	 	FUTURE ADVANCES
	 	 	19	 
	SECTION 28.

	 	CERTAIN ACTIONS OF LESSOR	 	 	19	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 29.

	 	CERTAIN POWERS OF DEED OF TRUST TRUSTEE:	 	 	 	 
	 

	 	SUBSTITUTION OF DEED OF TRUST TRUSTEE
	 	 	20	 
	SECTION 30.

	 	SUCCESSOR ADMINISTRATIVE AGENT	 	 	20	 
	SECTION 31.

	 	CERTAIN ACKNOWLEDGMENTS AND AGREEMENTS OF LESSEE	 	 	20	 
	SECTION 32.

	 	EXISTING SPACE LEASES
	 	 	23	 
	SECTION 33.

	 	COUNTERPART EXECUTION
	 	 	23	 
	SECTION 34.

	 	WAIVER OF CERTAIN RIGHTS
	 	 	23	 
	SECTION 35.

	 	REFERENCES
	 	 	24	 
	SECTION 36.

	 	GOVERNING LAW
	 	 	24	 
	EXHIBIT A

	 	     Legal Description of Land	 	 	 	 

-ii-

 

MEMORANDUM OF LEASE, DEED OF TRUST,

ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

     This Memorandum of Lease, Deed of Trust, Assignment of Leases and Rents, Security Agreement
and Fixture Filing is made as of June 22, 2006 (this “Memorandum of Lease”), by and between
LENNOX PROCUREMENT COMPANY INC., as Lessee (together with its successors and assigns,
“Lessee”), and BTMU CAPITAL CORPORATION, a Delaware corporation, as Lessor (together with
its successors and assigns, “Lessor”) to JEFFREY L. BELL, an individual, as Deed of Trust
Trustee (“Deed of Trust Trustee”) for the benefit of Lessor and its successors and assigns
including, without limitation, the Administrative Agent (as defined below), having an address at
111 Huntington Avenue, Boston, Massachusetts 02199, Attention: Senior Vice President – Portfolio
Servicing.

RECITALS

     A. Lessee and Lessor have entered into that certain Lease Agreement dated the same date as
this Memorandum of Lease (as amended, restated, or supplemented from time to time, the
“Lease”).

     B. That certain Participation Agreement (as amended, restated, or supplemented from time to
time, the “Participation Agreement”) dated the same date as this Memorandum of Lease has
been entered into by and among Lessee, as Lessee; Lennox International Inc., a Delaware
corporation, as Guarantor; Lessor, as Lessor; and MHCB (USA) Leasing and Finance Corporation, as
Lender and as Administrative Agent for the Lenders (in such capacity, “Administrative
Agent”).

     C. Pursuant to that certain Credit Agreement (as amended, restated, supplemented, or otherwise
modified from time to time, the “Credit Agreement”) dated the same date as this Memorandum
of Lease, by and among Lessor, Administrative Agent and Lender, Lender has agreed to make a Loan to
Lessor in the amount of $32,962,395.40 upon the terms and subject to the conditions set out in the
Credit Agreement and the Participation Agreement, to be evidenced by the notes (as the same may be
amended, extended or restated from time to time, together with any notes issued in replacement
thereof or substitution therefor, collectively, the “Notes”) issued by Lessor under the
Credit Agreement. The Notes bear interest as provided in the Credit Agreement and have a maturity
date of the Scheduled Termination Date, as defined below, as such date may be extended as provided
therein.

     D. Lessor will use the proceeds of the Loan and an equity investment made by Lessor in an
amount equal to $8,240,598.85 to finance its acquisition of the Land and Improvements for the
benefit of Lessee, and Lessor will hold the record title to the Mortgaged Property (as defined
below), subject to the rights of Lessee under the Lease and the other Operative Documents, to
secure Lessee’s payment and performance under the Operative Documents.

     E. The Participation Agreement and the Lease provide for the execution and delivery of this
Memorandum of Lease with respect to the Land and Improvements, all for the purpose of

 

 

confirming (i) Lessee’s acceptance of the Land and Improvements, including the condition
thereof, (ii) Lessor’s lease of its interest in the Land and Improvements to Lessee pursuant to the
terms of the Lease, and (iii) Lessee’s grant of a lien and security interest in its interest in the
Land and Improvements.

     NOW, THEREFORE, in consideration of the premises and other good and sufficient consideration,
Lessor and Lessee hereby agree as follows:

     Section 1. Definitions and Interpretation.

     For purposes of this Memorandum of Lease, each capitalized term or phrase used and not defined
in this Memorandum of Lease shall have the meaning set forth in Appendix A to the Participation
Agreement and the rules of interpretation set out in such Appendix A shall also apply to this
Memorandum of Lease. This Memorandum of Lease evidences of record the Lease, and all references in
the Memorandum of Lease or in the other Operative Documents to the Lease shall be deemed to include
this Memorandum of Lease. As used in this Memorandum of Lease:

     “Event of Default” means a Lease Event of Default.

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

     “Lessee Collateral” means all of Lessee’s rights in (a) the Leased Property, (b)
contracts and warranties necessary to operate and maintain the Leased Property or otherwise
specifically related to the Leased Property, (c) the Mortgaged Property, (d) all insurance policies
required to be maintained pursuant to the Lease, and (e) all products, excess successions,
subleases, rents, issues, profits, products, returns, income and proceeds of and from any or all of
the foregoing (including proceeds from any of the foregoing), and to the extent not otherwise
included, all payments under insurance (whether or not Lessee is the loss payee hereof) or any
indemnity, warranty or guarantee payable by reason of loss or damage to or otherwise with respect
to any of the foregoing.

     “Mortgaged Property” means all of Lessee’s interest and title in all of the following
property, wherever located whether such interest and title is held or owned now or in the future,
as such interest may appear, be determined or be re-characterized:

     (a) the Land described on Exhibit A attached hereto, along with all buildings,
structures and other improvements which are now or in the future located or to be

-2-

 

constructed on the Land from time to time, and whether or not such buildings,
structures, or other improvements have become subject to the Lease (the
“Improvements”), and all other Leased Property which is now or in the future located
or to be constructed or installed on or off the Land from time to time, (the interest in
Improvements and in the Land, together with Appurtenant Rights and Fixtures (as such terms
are defined below) relating thereto being collectively referred to as the
“Property”);

     (b) all the estate, right, title, claim or demand, in possession or expectancy, in and
to the Property or any part thereof;

     (c) all of the fixtures of every kind and nature whatsoever, and all appurtenances and
additions thereto and substitutions or replacements thereof (together with, in each case,
attachments, components, parts and accessories) now or subsequently attached to the Property
(all of the foregoing in this paragraph (c) being referred to as the “Fixtures”);

     (d) all substitutes and replacements of, and all additions and improvements to, the
Property and the Fixtures, subsequently acquired, constructed, assembled or placed on the
Land, immediately upon such acquisition, construction, assembling or placement, including
any and all building materials whether stored at the Property or offsite, and, in each such
case, without any further conveyance, mortgage, assignment or other act by any Person;

     (e) all contracts and warranties necessary to purchase, construct, remodel, repair,
operate and maintain the Property

     (f) (i) to the extent assignable, all consents, licenses, building permits,
certificates of occupancy and other governmental approvals relating to construction,
completion, occupancy, use or operation of the Property or any part thereof and (ii) all
plans and specifications relating to the Property;

     (g) the Lease, including without limitation, the deed of trust liens and security
interests granted by Lessee to Lessor under the Lease, and all Rent and all other rents,
payments, purchase prices, receipts, revenues, issues and profits payable under the Lease or
pursuant to any other lease with respect to the Property;

     (h) all subleases with respect to the Property, and the Existing Space Leases, together
with all rent payable thereunder;

     (i) all insurance policies (including title insurance policies, to the extent
assignable) required to be maintained by Lessee pursuant to Article VIII of the Lease or any
insurance policies to be obtained on behalf of Lessee, including the right to collect and
receive such proceeds; and, subject to the rights of Lessee under Article X of the Lease,
all awards and other compensation, including the interest payable thereon and the right to
collect and receive the same, made to the present or any subsequent owner of the Property
for the taking by eminent domain, condemnation or otherwise, of all or any part of the
Property or any easement or other right therein;

-3-

 

     (j) (i) all accounts, general intangibles, tangible chattel paper, deposit accounts,
money, investment property, instruments and documents relating to or otherwise arising in
connection with or derived from the Property, (ii) all refunds, rebates, reserves, deferred
payments, deposits, cost savings, and payments of any kind due from or payable by (A) any
Governmental Authority, or (B) any insurance or utility company, relating in either case to
any or all of the Property, (iii) all refunds, rebates and payments of any kind due from or
payable by any Governmental Authority for any taxes, assessments, or governmental or quasi
governmental charges or levies imposed with respect to or upon any or all of the Property,
and (iv) any cash collateral account maintained pursuant to any of the or Operative
Documents;

     (k) all tenements, hereditaments, appurtenances, privileges, options to purchase or
lease all or any part of the Property or any interest therein (and any greater estate in the
Property now owned or hereafter acquired pursuant thereto), and all other rights and
interests now or in the future benefiting or otherwise relating to the Property, including
easements, rights of way, sidewalks, alleys and strips and gores of land adjacent to or used
in connection with the Property, development rights, mineral rights, water rights and water
stock (collectively, “Appurtenant Rights”);

     (l) all rights to liquidated damages, rebates, offset or other warranty payments, or
assignment under a purchase order, invoice or purchase agreement with any manufacturer of or
contractor for any portion of the Mortgaged Property;

     (m) all products, excess successions, subleases, rents, issues, profits, products,
returns, income and proceeds of and from any or all of the foregoing (including proceeds
from any of the foregoing), and to the extent not otherwise included, all payments under
insurance (whether or not Lessee is the loss payee hereof) or any indemnity, warranty or
guarantee payable by reason of loss or damage to or otherwise with respect to any of the
foregoing; and

     (n) all cash and non-cash proceeds of the foregoing.

     “Obligations” means (a) all obligations (monetary or otherwise) of the Lessee and
Guarantor arising under or in connection with any of the Operative Documents, (b) the due, prompt
and complete observance, performance and discharge of each and every obligation, covenant and
agreement of Lessee contained in this Memorandum of Lease and all supplements, amendments and
modifications thereto and all extensions and renewals thereof, (c) to the extent that Lessee
becomes obligated to pay and perform such obligations, the due, prompt and complete observance,
performance and discharge of each and every obligation, covenant and agreement of Lessor in the
Operative Documents and all supplements, amendments and modifications thereto and all extensions
and renewals thereof, or in any other instrument heretofore or hereafter executed by Lessor having
reference to or arising out of the loans, certificate amounts, interest and yield represented by
the Notes, and (d) the obligation to pay all sums advanced by Administrative Agent or Lessor to
protect the Mortgaged Property or any portion thereof, whether or not any such advance is
specifically authorized by the provisions of this Memorandum of Lease or any of the other Operative
Documents, with interest thereon at the Overdue Rate.

-4-

 

     “Personal Property” means all of the Mortgaged Property that does not constitute real
property and in which a security interest may be created under the UCC.

     “Uniform Commercial Code” and “UCC” means the Uniform Commercial Code as in effect
from time to time in any applicable jurisdiction, including, for Texas, the Texas Business &
Commerce Code.

     Section 2. Acceptance and Approval.

     Lessee hereby acknowledges and confirms that Lessee’s execution of this Memorandum of Lease,
without further act, constitutes the irrevocable acceptance by Lessee of Lessor’s interest in the
Land described on Exhibit A attached hereto and incorporated herein by reference and in the
Improvements on the Land for all purposes of the Lease and the other Operative Documents.

     Section 3. Lease of Leased Property; Payment and Performance of Obligations.

          (a) Effective upon the execution and delivery of this Memorandum of Lease by Lessor and
Lessee, Lessor’s rights in and to the Land, the Improvements, the Appurtenances and the Fixtures
shall constitute “Leased Property” for all purposes of the Lease and shall be subject to the terms
and provisions of the Lease. Beginning on the Closing Date, Lessor hereby delivers, demises and
leases the Leased Property to Lessee, and Lessee hereby accepts, hires and leases the Leased
Property from Lessor for the term of the Lease, as described in Section 2.2 of the Lease.

          (b) Lessee shall pay the Obligations in accordance with the terms of the Lease, the
Participation Agreement, and the other Operative Documents and perform each term to be performed by
Lessee under the Operative Documents.

     Section 4. Basic Lease Term.

     Unless earlier terminated, the term of the Lease shall consist of a base term commencing on
the Closing Date and ending the first to occur of:

     (a) the seventh (7th) anniversary of the Closing Date (the “Scheduled Termination
Date”); and

     (b) the date upon which the Lease is terminated pursuant to its terms.

     As described in Section 2.2 of the Lease, the first to occur of (a) and (b) shall be the
“Termination Date.”

     Section 5. Notice of Purchase Options.

          Notice is hereby made of purchase options that have been granted under the Lease in favor of
Lessee which purchase options may, subject to the terms and conditions set forth therein, be
exercised following the occurrence and continuance of an Event of Default and upon thirty (30) days
notice to Lessor.

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     Section 6. Lessee Grant of Lien and Security Interest.

     (a) To secure the full and timely payment of, and the complete and timely performance
and discharge of, the Obligations by Lessee, Lessee has GRANTED, BARGAINED, SOLD, ASSIGNED,
and CONVEYED, and does hereby GRANT, BARGAIN, SELL, ASSIGN and CONVEY unto the Deed of Trust
Trustee, in trust with a power of sale and for the benefit of Lessor (for the benefit of
Administrative Agent, and for the ratable benefit of Lessor and Lenders), all of the
Mortgaged Property (other than the Personal Property), subject to the Permitted Liens, TO
HAVE AND TO HOLD the Mortgaged Property and the rights and privileges hereby granted unto
Deed of Trust Trustee and Lessor, their respective successors and assigns, until all the
Obligations are paid, performed and satisfied in full.

     (b) To secure the full and timely payment of, and the complete and timely performance
and discharge of, the Obligations by Lessee, Lessee further grants to Lessor (for the
benefit of Administrative Agent, and for the ratable benefit of Lessor and Lenders),
pursuant to the UCC, a security interest in all of Lessee’s present and future right, title,
and interest in and to the Personal Property.

     Section 7. Remedies.

     (a) Without limiting any other remedies set out in the Lease, while an Event of Default
exists, Lessor may, at its option, declare all Obligations to be immediately due and payable
without any presentment, demand, protest or notice of any kind (except as may otherwise be
provided in the Operative Documents), and if the Obligations have been accelerated, then and
subject to Lessee’s rights under the Lease (including Lessee’s right to purchase the Leased
Property pursuant to Section 13.2 of the Lease):

     (i) Each of Deed of Trust Trustee and Lessor, in addition to all other remedies
available at law or in equity, shall have the right forthwith, with or without
bringing any action or proceeding, with or without a receiver appointed by a court,
and without regard to the adequacy of its security, (A) to enter upon and take
possession of the Mortgaged Property, or any part thereof, in its own name or in the
name of Lessee, to make repairs and do any acts which it deems necessary or
desirable to preserve the value, marketability or rentability of the Mortgaged
Property, or any part thereof or interest therein, increase the income therefrom or
protect the security hereof, (B) to let the Mortgaged Property, and (C) with or
without taking possession of the Mortgaged Property, to sue for or otherwise collect
and receive the rents, issues and profits thereof and to apply said rentals and
profits, after payment of all necessary or proper charges and expenses, including
reasonable attorneys’ fees, on account of the amounts hereby secured (subject to the
Excluded Payments). The collection of such rentals and profits and the application
thereof as aforesaid, shall not cure or waive any Event of Default or notice of
Event of Default hereunder or invalidate any act done in response to such Event of
Default or pursuant to such notice of Event of Default and, notwithstanding the
continuance in possession of all or any portion of the Mortgaged Property or the
collection, receipt and application of rentals and

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profits, Lessor shall be entitled to exercise every right provided for in any
of the Operative Documents or by law upon occurrence of any Event of Default,
including the right to exercise the power of sale herein contained. Failure or
discontinuance of Lessor at any time, or from time to time, to collect rentals and
profits shall not in any manner affect the subsequent enforcement of Lessor of the
right to collect the same.

     (ii) Lessor shall, as a matter of right, without notice to Lessee or anyone
claiming under Lessee, and without regard to the then value of the Mortgaged
Property, or the interest of Lessee therein, at the option of Lessor, be entitled to
the appointment of a receiver for the Mortgaged Property, and Lessee hereby consents
to such appointment and waives notice of any application therefor and waives any
requirement that the receiver post or deliver a bond. Any such receiver or
receivers shall have all the usual powers and duties of receivers in like or similar
cases and all the powers and duties of Lessor and Deed of Trust Trustee in case of
entry as provided in this Memorandum of Lease and shall continue as such and
exercise all such powers until the later of (A) the date of confirmation of sale of
the Mortgaged Property; (B) the disbursement of all proceeds of the Mortgaged
Property collected by such receiver and the payment of all expenses incurred in
connection therewith; or (C) the termination of such receivership with the consent
of Lessor or pursuant to an order by a court of competent jurisdiction.

     (iii) Lessee hereby authorizes and empowers the Deed of Trust Trustee and each
and all of his successors in this trust, at the request of Lessor, to sell the
Mortgaged Property at public auction to the highest bidder for cash at the door of
the courthouse of the county in Texas in which the Mortgaged Property or any part
thereof is situated, as herein described, between the hours of 10:00 a.m. and 4:00
p.m. (as more particularly described in the hereinafter described notice) of the
first Tuesday of any month, after advertising the time, place and terms of said sale
and the Mortgaged Property to be sold, by posting (or by having some person or
persons acting for him post) for at least twenty one (21) days preceding the date of
the sale, written or printed notice of the proposed sale at the Courthouse of said
county in the area of the courthouse designated by the Commissioner’s Court as the
area for sales pursuant to Section 51.002 of the Texas Property Code and if no area
is designated by the Commissioner’s Court, the notice of sale shall designate the
area of the courthouse where the sale is to take place; in addition to such posting
of notice, the holder of the indebtedness hereby secured shall, at least twenty one
(21) days preceding the date of sale: (A) serve written or printed notice of the
proposed sale by certified mail on Lessee and on each other debtor, if any,
obligated to pay the indebtedness hereby secured according to records of such
holder, which shall state the earliest time at which the sale will begin and the
sale shall begin at such time or not later than three (3) hours after that time, and
(B) file a copy of the notice of proposed sale with the County Clerk or County
Clerks of the county or counties where such notice was posted. Service of such
notice shall be completed upon deposit of the notice, with postage prepaid, properly
addressed to Lessee and such other debtors at their most recent address

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or addresses as shown by the records of the holder of the indebtedness hereby
secured, in a post office or official depository under the care and custody of the
United States Postal Service. The affidavit of any person having knowledge of the
facts to the effect that such service was completed shall be prima facie evidence of
the fact of service. The provisions hereof with respect to posting and giving
notices of sale are intended to comply with the provisions of Section 51.002 of the
Texas Property Code, and, in the event the requirement for any notice under such
Section 51.002 shall be eliminated or the prescribed manner of giving same modified
by future amendment to or adoption of any statute superseding such Section 51.002,
the requirement for such particular notice shall be deemed stricken from or modified
in this instrument in conformity with such amendment or superseding statute,
effective as of the effective date of same. The manner herein prescribed for
serving or giving any notice, other than that to be posted or caused to be posted by
the Deed of Trust Trustee, shall not be deemed exclusive, but such notice or notices
may be given in any other manner which may be permitted by applicable law. Lessee
agrees that no notice of any sale other than as set out in this paragraph need be
given by Deed of Trust Trustee, Lessor or any other person. Lessee hereby
designates as its address for the purposes of such notice the address set out on the
signature page of this Memorandum of Lease and agrees that such address shall be
changed only by depositing notice of such change, enclosed, postage pre-paid, in a
post office or official depository under the care and custody of the United States
Postal Service, certified mail, postage prepaid, return receipt requested, addressed
to Lessor at the address for Lessor set out herein (or to such other address as
Lessor may have designated by notice given as above provided to Lessee and such
other debtors), any such notice of change of address of Lessee or other debtors
shall be effective upon receipt by Lessor. Any change of address of Lessor shall be
effective three (3) Business Days after deposit thereof in the above described
manner in a post office or official depository under the care and custody of the
United States Postal Service. Lessee does hereby authorize and empower the Deed of
Trust Trustee and each and all of his successors in this trust to sell the Mortgaged
Property or any interest or estate in the Mortgaged Property, together or in lots or
parcels, as such Deed of Trust Trustee shall deem expedient and to execute and
deliver to the purchaser or purchasers of the Mortgaged Property good and sufficient
deed or deeds of conveyance thereof and bills of sale with covenants of general
warranty binding on Lessee and Lessee’s successors and assigns. Payment of the
purchase price to the Deed of Trust Trustee shall satisfy the obligation of the
purchaser at such sale therefor and he shall not be bound to oversee or insure the
proper application of the proceeds. Lessor may bid and become the purchaser of the
Mortgaged Property at any trustee’s or foreclosure sale hereunder.

     (iv) In addition to the rights and powers of sale granted under the preceding
Subsection (iii), if any Event of Default occurs concerning the payment of any
installment of the Obligations, Lessor, at its option, at once or at any time
thereafter while any matured installment remains unpaid, without declaring the
entire Obligations to be due and payable, may orally or in writing direct the Deed
of Trust Trustee to enforce this trust and to sell the Mortgaged Property subject to

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such unmatured indebtedness and the assignments, liens, and security interests
securing its payment, in the same manner, on the same terms, at the same place and
time and after having given notice in the same manner, all as provided in the
preceding provisions of Subsection (iii). After such sale, the Deed of Trust
Trustee shall make due conveyance to the purchaser or purchasers. Sales made
without maturing the Obligations may be made hereunder whenever there occurs an
Event of Default in the payment of any installment of the Obligations without
exhausting the power of sale granted hereby, and without affecting in any way the
power of sale granted under this Subsection (iv), the unmatured balance of the
Obligations (except as to any proceeds of any sale which Lessor may apply as a
prepayment of the Obligations) or the assignments, liens and security interests
securing payment of the Obligations.

     (v) It is intended by each of the foregoing provisions of Subsection (iii) and
Subsection (iv) that Deed of Trust Trustee may, after any request or direction by
Lessor, sell not only that portion of the Mortgaged Property constituting real
property, but also the Property and other interests constituting a part of the
Mortgaged Property, or any part thereof, along with the Land and the improvements
thereon, or any part thereof, all as a unit and as a part of a single sale, or may
sell any part of the Mortgaged Property separately from the remainder of the
Mortgaged Property. The sale or sales by Deed of Trust Trustee of less than the
whole of the Mortgaged Property shall not exhaust the power of sale herein granted,
and Deed of Trust Trustee is specifically empowered to make successive sale or sales
under such power until the whole of the Mortgaged Property shall be sold; and if the
proceeds of such sale or sales of less than the whole of such Mortgaged Property
shall be less than the aggregate of the Obligations and the expense of executing
this trust, this Memorandum of Lease and the assignments, liens, and security
interests hereof shall remain in full force and effect as to the unsold portion of
the Mortgaged Property just as though no sale or sales of less than the whole of the
Mortgaged Property had occurred, but Lessor shall have the right, at its sole
election, to request Deed of Trust Trustee to sell less than the whole of the
Mortgaged Property.

     (vi) Lessee and Lessor agree that, in any assignments, deeds, bills of sale,
notices of sale, or postings, given by Deed of Trust Trustee or Lessor, any and all
statements of fact or other recitals therein made as to the identity of Lessor, or
as to the occurrence or existence of any Event of Default, or as to the acceleration
of the maturity of the Obligations, or as to the request to sell, posting of notice
of sale, notice of sale, time, place, terms and manner of sale and receipt,
distribution and application of the money realized therefrom, or as to the due and
proper appointment of a substitute trustee and without being limited by the
foregoing, as to any other act or thing having been duly done by Lessor or by Deed
of Trust Trustee, shall be construed by all courts of law and equity as prima facie
evidence that the said statements or recitals state facts and are without further
question to be so accepted, and Lessee does hereby ratify and confirm any and all
acts that Deed of Trust Trustee may lawfully do in the Mortgaged Property by virtue
hereof.

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     (vii) Lessor may, or Deed of Trust Trustee may upon written request of Lessor,
proceed by suit or suits, at law or in equity, to enforce the payment and
performance of the Obligations in accordance with the terms hereof or of the other
Operative Documents or of the other Instruments, to foreclose or otherwise enforce
the assignments, liens, and security interests created or evidenced by the other
Operative Documents, or this Memorandum of Lease as against all, or any part of, the
Mortgaged Property, and to have all or any part of the Mortgaged Property sold under
the judgment or decree of a court of competent jurisdiction.

     (viii) To the extent permitted by law, Lessor may enter upon the Land, take
possession of the Mortgaged Property and remove the Property or any part thereof,
with or without judicial process, and, in connection therewith, without any
responsibility or liability on the part of Lessor, take possession of any property
located on or in the Land and the improvements situated on the Land which is not a
part of the Mortgaged Property and hold or store such property at Lessee’s expense.

     (ix) Lessor may buy the Mortgaged Property, or any part thereof, at any public
sale or judicial sale.

     (x) Notwithstanding anything contained herein to the contrary, pursuant to
Section 9.604(a) of the UCC, as amended, Lessor may proceed under Chapter 9 of the
UCC as to all Personal Property covered hereby or, at Lessor’s election, Lessor may
proceed as to both the real and personal property covered hereby in accordance with
Lessor’s rights and remedies in respect of real property, in which case the
provisions of Chapter 9 of the UCC shall not apply.

     (xi) If Lessor is the purchaser of the Mortgaged Property, or any part thereof,
at any sale thereof, whether such sale be under the power of sale herein vested in
Deed of Trust Trustee, or upon any other foreclosure or enforcement of the
assignments, liens, and security interests hereof, or otherwise, Lessor shall, upon
any such purchase, acquire good title to the Mortgaged Property so purchased, free
of the assignments, liens, and security interests of these presents.

     (xii) Lessee covenants to promptly reimburse and pay to Lessor, the amount of
all reasonable expenses (including the cost of any insurance, taxes, or other
charges) incurred by Lessor in connection with its custody, preservation, use or
operation of the Mortgaged Property, together with interest thereon from the date
incurred by Lessor at the Overdue Rate, and all such expenses, cost, taxes,
interest, and other charges shall be a part of the Obligations.

     (xiii) If the assignments, liens, or security interests hereof shall be
foreclosed or otherwise enforced by a Deed of Trust Trustee’s sale, or by any other
judicial or non-judicial action, then the purchaser at any such sale shall receive,
as an incident to his ownership, immediate possession of that portion of the
Mortgaged Property purchased, and if Lessee or Lessee’s successors shall hold
possession of any of said portion of the Mortgaged Property subsequent to

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such foreclosure, Lessee and Lessee’s successors shall be considered as tenants
at sufferance of the purchaser at such foreclosure sale, and any one occupying the
Mortgaged Property (or any part thereof) after demand made for possession thereof
shall be guilty of forcible detainer and shall be subject to eviction and removal,
forcible or otherwise, with or without process of law, and all damages by reason
thereof are hereby expressly waived.

     (xiv) This Memorandum of Lease shall be effective as a mortgage as well as a
deed of trust, and upon the occurrence of an Event of Default may be foreclosed as
to the Mortgaged Property in any manner permitted by the laws of the State of Texas
and any other state in which any part of the Mortgaged Property is situated. Any
foreclosure suit may be brought by Deed of Trust Trustee or Lessor. If a
foreclosure hereunder is commenced by Deed of Trust Trustee, Lessor may, at any time
before the sale, direct the Deed of Trust Trustee to abandon the sale, and may then
institute suit for the collection of the Obligations, and for the foreclosure or
enforcement of the assignments, liens, and security interests hereof. If Lessor
should institute a suit for the collection, and for a foreclosure or enforcement of
the assignments, liens, and security interests hereof, it may, at any time before
the entry of a final judgment in said suit, dismiss the same, and require Deed of
Trust Trustee to sell the Mortgaged Property, or any part thereof, in accordance
with the provisions of this Memorandum of Lease.

     (xv) Deed of Trust Trustee and Lessor may exercise all other rights and
remedies provided herein, in any of the Operative Documents or other document or
agreement now or hereafter securing all or any portion of the Obligations secured
hereby, by law or equity or by virtue of any of the Operative Documents, or under
the UCC or otherwise.

     (xvi) Subject to Applicable Law, Deed of Trust Trustee may postpone sale of all
or any portion of the Mortgaged Property by public announcement at such time and
place of sale, and from time to time thereafter may postpone such sale by public
announcement or subsequently noticed sale, and without further notice make such sale
at the time fixed by the last postponement, or may, in its discretion, give a new
notice of sale.

     (xvii) Upon the occurrence and continuance of an Event of Default hereunder,
Lessor may proceed or cause Deed of Trust Trustee, in any sequence: (A) to exercise
its rights hereunder with respect to all or any portion of the Mortgaged Property
and all or any portion of the Personal Property; and (B) to exercise its rights
under Section 14 hereof with respect to all or any portion of the Personal Property
in accordance with the provisions of the UCC, in each case subject to Lessee’s
rights under the Lease (including Lessee’s right to purchase the Leased Property
under Section 13.2 of the Lease).

     (xviii) Subject always to the then existing rights, if any, of Lessee under the
Lease (including Lessee’s right to purchase the Leased Property under Section

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13.2 of the Lease), Lessor or Deed of Trust Trustee may proceed to exercise all
rights, privileges and remedies of Lessor under the Lease and may exercise all such
rights and remedies either in the name of Lessor or in the name of Lessor for the
use and benefit of Administrative Agent.

     (b) If an Event of Default exists and the Obligations have been accelerated, subject to
Lessee’s rights under the Lease (including Lessee’s right to purchase the Leased Property
under Section 13.2 of the Lease), Lessor may proceed by an action at law, suit in equity or
other appropriate proceeding, to protect and enforce its rights, whether for the foreclosure
of the lien of this Memorandum of Lease, or for the specific performance of any agreement
contained herein or for an injunction against the violation of any of the terms hereof.

     (c) The proceeds of any sale of the Mortgaged Property shall be applied pursuant to
Section 3 of the Credit Agreement.

     Section 8. Remedies Not Exclusive.

     Lessor shall be entitled to enforce payment of the indebtedness and performance of the
Obligations and to exercise or cause Deed of Trust Trustee to exercise all rights and powers under
this Memorandum of Lease or under any of the other Operative Documents or other agreement or any
Applicable Laws now or hereafter in force, notwithstanding that some or all of the Obligations may
now or hereafter be otherwise secured, whether by deed of trust, mortgage, security agreement,
pledge, lien, assignment or otherwise. Neither the acceptance of this Memorandum of Lease nor its
enforcement shall prejudice or in any manner affect Lessor’s or Deed of Trust Trustee’s right to
realize upon or enforce any other security now or hereafter held by Lessor or Deed of Trust
Trustee, it being agreed that Lessor shall be entitled to enforce or cause Deed of Trust Trustee to
enforce this Memorandum of Lease and any other security now or hereafter held by Lessor or Deed of
Trust Trustee in such order and manner as Lessor or Deed of Trust Trustee may determine in its
absolute discretion. No remedy herein conferred upon or reserved to Lessor or Deed of Trust
Trustee is intended to be exclusive of any other remedy herein or by law provided or permitted, but
each shall be cumulative and shall be in addition to every other remedy given hereunder or now or
hereafter existing at law or in equity or by statute. Every power or remedy given by any of the
Operative Documents to Lessor or Deed of Trust Trustee or to which they may otherwise be entitled,
may be exercised, concurrently or independently, from time to time and as often as may be deemed
expedient by Lessor. In no event shall Lessor or Deed of Trust Trustee, in the exercise of the
remedies provided in this Memorandum of Lease (including in connection with the appointment of a
receiver and the entry of such receiver on to all or any part of the Mortgaged Property or Lessee
Collateral), be deemed a “grantee in possession” unless and until Lessor or Deed of Trust Trustee
takes possession of the Mortgaged Property or Lessee’s Collateral and Lessor or Deed of Trust
Trustee shall not in any way be made liable for any act, either of commission or omission, in
connection with the exercise of such remedies.

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     Section 9. Other Covenants.

     (a) At any time and from time to time, upon the written request of Lessor, and at the
sole expense of Lessee, Lessee will promptly and duly execute and deliver such further
instruments and documents and take such further actions as Lessor reasonably may request for
the purposes of obtaining or preserving the full benefits of this Memorandum of Lease and of
the rights and powers granted by this Memorandum of Lease. Lessee hereby irrevocably
constitutes and appoints Lessor as Lessee’s true and lawful attorney-in fact (which power is
coupled with an interest) to execute and deliver such further instruments, and take such
further actions for the purposes of obtaining or preserving the full benefits of this
Memorandum of Lease and of the rights and powers granted by this Memorandum of Lease.

     (b) Provided no Event of Default exists, Lessee shall be suffered and permitted to
remain in full possession, enjoyment and control of Lessee’s interest in the Mortgaged
Property subject always to the observance and performance by Lessee of the terms of this
Memorandum of Lease and of the Participation Agreement and the other Operative Documents.
Provided no Event of Default has occurred and is continuing, Lessee shall be suffered and
permitted to remain in full possession, enjoyment and control of Lessee’s interest in the
Mortgaged Property subject always to the observance and performance of the terms of this
Memorandum of Lease and of the Participation Agreement and the other Operative Documents to
which Lessee is a party. It is expressly understood that the use and possession of the
Property by Lessee or any of its permitted sublessees and assignees under and subject to the
Lease and the other Operative Documents shall not constitute a violation of this Section
9(b).

     (c) All monies constituting a part of the Mortgaged Property shall be paid and
distributed in accordance with the terms and provisions of Section 3 of the Credit
Agreement.

     Any monies received by Lessee as payment for any loss under any policy of title insurance or
as an award or compensation for any condemnation shall become part of the Mortgaged Property and
shall be paid and applied in the same manner as net proceeds of a Casualty or Condemnation as
provided in the Lease.

     Section 10. Performance by Lessor of Lessee’s Obligations.

     If a Lease Event of Default occurs because of a failure by Lessee to perform or comply with
any of its agreements contained herein, Lessor, at its option, but without any obligation so to do,
may perform or comply, or otherwise cause performance or compliance, with such agreement. The
expenses of Lessor incurred in connection with actions undertaken as provided in this Section,
together with interest thereon at a rate per annum equal to the Overdue Rate, from the date of
payment by Lessor, as applicable, to the date reimbursed by Lessee, shall be payable by Lessee to
Lessor on demand.

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     Section 11. Duty of Lessor.

     Lessor’s sole duty with respect to the custody, safekeeping and physical preservation of any
Mortgaged Property, in its possession, under the UCC or otherwise, shall be to deal with it in the
same manner as Lessor deals with similar property for its own account. None of Lessor, Deed of
Trust Trustee, the Lenders and their respective directors, officers, employees or agents shall be
liable for failure to demand, collect or realize upon any of the Mortgaged Property, or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose of any Mortgaged
Property, upon the request of Lessee, Lessee, or any other Person or to take any other action
whatsoever with regard to the Mortgaged Property, or any part thereof.

     Section 12. Powers Coupled with an Interest.

     All powers, authorizations and agencies contained in this Memorandum of Lease are coupled with
an interest and are irrevocable until this Memorandum of Lease is terminated and the lien created
hereby is released.

     Section 13. Authorization of Financing Statements.

     Lessee authorizes the financing statements to be filed with respect to the Mortgaged Property
without the signature of such party in such form and in such filing offices as Lessor reasonably
determines appropriate to perfect the security interests of Lessor under this Memorandum of Lease.
A carbon, photographic or other reproduction of this Memorandum of Lease shall be sufficient as a
financing statement for filing in any jurisdiction.

     Section 14. Security Agreement under UCC.

     (a) It is the intention of the parties hereto that this Memorandum of Lease shall
constitute with respect to the Personal Property a “security agreement” within the meaning
of the UCC. If an Event of Default exists, and subject to Lessee’s rights under the Lease
(including Lessee’s right to purchase the Leased Property under Section 13.2 of the Lease),
then in addition to having any other right or remedy available at law or in equity, Lessor
shall have the option of either (i) proceeding under the UCC and exercising such rights and
remedies as may be provided to a secured party by the UCC with respect to all or any portion
of the Mortgaged Property or Lessee’s Collateral which is personal property (including
taking possession of and selling such property) or (ii) treating such property as real
property and proceeding with respect to both the real and personal property constituting the
Mortgaged Property or Lessee’s Collateral in accordance with Deed of Trust Trustee’s rights,
powers and remedies with respect to the real property (in which event the default provisions
of the UCC shall not apply). If Lessor shall elect to proceed under the UCC, then ten (10)
days’ notice of sale of the personal property shall be deemed reasonable notice and the
expenses of retaking, holding, preparing for sale, selling and the like incurred by Lessor
shall include, but not be limited to, attorneys’ fees and legal expenses (including
allocated costs of internal counsel) of Lessor. At Lessor’s request, Lessee shall assemble
its Personal Property subject to the lien hereof and make it available to Lessor at a place
designated by Lessor which is reasonably convenient to both parties.

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     (b) Lessee and Lessor agree, to the extent permitted by law, that this Memorandum of
Lease, upon recording or registration in the real estate records of the proper office, shall
constitute a financing statement filed as a “fixture filing” within the meaning of the UCC.

     (c) Lessee and Lessee hereby acknowledges that (i) this Memorandum of Lease covers
goods which are or are to become fixtures on the Property, (ii) this Memorandum of Lease is
to be recorded in the real estate records, and (iii) products of collateral are also
covered.

     Section 15. Authority of Lessor.

     Lessor and Lessee acknowledge that the rights and responsibilities of Lessor under this
Memorandum of Lease with respect to any action taken by Lessor or the exercise or non exercise by
Lessor of any option, voting right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Memorandum of Lease shall, as between Lessor, Administrative
Agent and Lender, be governed by the Credit Agreement and by such other agreements with respect
thereto as may exist from time to time among them, but, as between Lessee and Administrative Agent,
Lessor shall be conclusively presumed to be acting as agent for Administrative Agent and Lender
with full and valid authority so to act or refrain from acting, and Lessee shall be under no
obligation, or entitlement, to make any inquiry respecting such authority.

     Section 16. Nature of the Transaction.

     It is the intention of the parties that:

     (a) the Transaction constitutes an operating lease from Lessor to Lessee for purposes
of Lessee’s financial reporting, including, without limitation, under Financial Accounting
Standards Board Statement No. 13;

     (b) for purposes of federal and all state and local income and transfer taxes and
bankruptcy, insolvency, conservatorships and receiverships (including the substantive law
upon which bankruptcy insolvency, conservatorships and receiverships proceedings are based)
purposes:

     (i) the Transaction constitutes a financing by Lessor and the Lenders to Lessee
and preserves beneficial ownership in the Leased Property in Lessee, Lessee will be
entitled to all tax benefits ordinarily available to owners of property similar to
the Leased Property for tax purposes and the obligations of Lessee to pay Basic Rent
shall be treated as payments of interest to Lessor and the Lenders, and the payment
by Lessee of any amounts in respect of the Lease Balance shall be treated as
payments of principal to Lessor and the Lenders;

     (ii) to the extent the Transaction is deemed a financing, this Memorandum of
Lease provides for a security interest or a Lien, as the case may be, in Lessee’s
interest in the Mortgaged Property, including without limitation other Lessee
Collateral, in favor of Lessor, and for the benefit of the

-15-

 

Administrative Agent and the Lenders, to secure Lessee’s payment and
performance of the Obligations;

     (iii) the Lease creates a Lien on and security interest in Lessee Collateral in
favor of the Administrative Agent for the benefit of Lessor and the Lenders to
secure Lessor’s payment and performance of its obligations under the Operative
Documents; and

     (iv) the Lease is intended as a deed of trust on the Leased Property,
notwithstanding the remedies in Section 13.1 of the Lease that are more customarily
available to lessors of real property.

     Nevertheless, Lessee acknowledges and agrees that none of Lessor, the Administrative Agent or
Lender has made any representations or warranties concerning the tax, accounting or legal
characteristics of the Operative Documents or any aspect of the Transaction and that Lessee has
obtained and relied upon such tax, accounting and legal advice concerning the Operative Documents
and the Transaction as it deems appropriate.

     (c) Specifically, without limiting the generality of clause (a) above, the parties
hereto intend and agree that in the event of any insolvency, conservatorship or receivership
proceedings or matters or a petition under the United States bankruptcy laws, or any other
applicable insolvency, conservatorship or receivership laws or statute of the United States
of America or any State thereof affecting Lessee or Guarantor or any collection actions, the
transactions evidenced by the Operative Documents (including, without limitation, the Lease)
constitute loans made directly to Lessee by Lessor and the Lenders, in each case as
unrelated third party lenders, and that Lessor holds title to, and Lessor holds a lien on,
the Leased Property for the benefit of the Lessor and the Lenders to secure Lessee’s
obligations to repay such loans to Lender and all other amounts due under any of the
Operative Documents.

     (d) Specifically, but without limiting the generality of subsection (a) above, Lessor
and Lessee intend and agree that, for the purpose of securing Lessee’s obligations for the
repayment of the Obligations, (i) the Lease shall also be deemed to be a security agreement
and financing statement within the meaning of Article 9 of the UCC; (ii) the conveyance
provided for hereby shall be deemed to be a grant by Lessee to Lessor, of a security
interest in and to the Deed of Trust Trustee of a mortgage and deed of trust lien on all of
Lessee’s present and future title and interest in and to the Leased Property and the other
Lessee Collateral, and all proceeds of the conversion, voluntary or involuntary, of the
foregoing into cash, investments, securities or other property, whether in the form of cash,
investments, securities or other property to secure such loans, effective on the date
hereof, to have and to hold such interests in the Leased Property and the other Lessee
Collateral unto Lessor, (iii) to the extent permitted by Applicable Laws, the possession by
Lessor of notes and such other items of property as constitute instruments, money,
negotiable documents or tangible chattel paper shall be deemed to be “possession” or
“control” by the “secured party” for purposes of perfecting the security interest pursuant
to the UCC; and (iv) to the extent permitted by Applicable Law, notifications to Persons
holding such property, and acknowledgments, receipts or

-16-

 

confirmations from financial intermediaries, bankers or agents (as applicable) of
Lessee shall be deemed to have been given for the purpose of perfecting such security
interest under Applicable Law. Lessor and Lessee shall, to the extent consistent with the
Lease, take such actions and execute, deliver, file and record such other documents,
financing statements, mortgages and deeds of trust as may be necessary to ensure that this
Memorandum of Lease creates a mortgage lien and a security interest in the Mortgaged
Property and the other Lessee Collateral in accordance with this Section 16 and, such
mortgage lien and security interest is a perfected security interest in the Mortgaged
Property and the other Lessee Collateral with priority over all Liens, other than Permitted
Liens, under Applicable Law and will be maintained as such throughout the Term.

     (e) If (contrary to the intent of the parties as expressed above and in Section 2.4 of
the Participation Agreement) it is determined that Lessee is not, under applicable state law
as applied to the Operative Documents, the equitable owner of the Leased Property and the
borrower from Lessor in a financing arrangement, but rather is a tenant under the Lease with
an option to purchase from Lessor as provided in Sections 14.1 or 17.22 of the Lease (as the
case may be, the “Payoff Option”), then the parties intend that the Payoff Option be secured
by a lien and security interest against the Leased Property. Accordingly, Lessor does
hereby grant to lessee a lien and security interest against the Leased Property, including
all rights, title and interests of Lessor from time to time in and to the Land and
Improvements, for the sole purpose of securing (1) Lessor’s obligation to convey the Leased
Property to lessee if Lessee exercises the Payoff Option and tenders payment of the Purchase
Amount to Lessor as provided herein, and (2) Lessee’s right to recover any damages from
Lessor caused by a breach of such obligation, including any such breach caused by a
rejection or termination of the Payoff Option in any bankruptcy or insolvency proceeding
instituted by or against Lessor, as debtor. Lessee may enforce such lien and security
interest judicially after any such breach by Lessor, but not otherwise. The foregoing grant
shall terminate without further action upon the termination or expiration of the Payoff
Option.

     Section 17. Incorporation into Lease.

     This Memorandum of Lease shall be construed in connection with and as part of the Lease, and
all terms, conditions and covenants contained in the Lease, as supplemented by this Memorandum of
Lease, shall be and remain in full force and effect and shall govern the Leased Property, as
located on the Land described in Exhibit A attached hereto and incorporated herein by
reference.

     Section 18. Notice to Potential Claimant.

     Nothing contained in this Memorandum of Lease or the Lease shall be construed as constituting
the consent or request of Lessor, expressed or implied, to or for the performance by any
contractor, mechanic, laborer, materialman, supplier or vendor of any labor or services or for the
furnishing of any materials for any construction, alteration, addition, repair or demolition of or
to the Improvements or any part thereof. NOTICE IS HEREBY GIVEN THAT NEITHER LESSOR NOR
ADMINISTRATIVE AGENT IS OR SHALL BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE
FURNISHED TO LESSEE, OR TO

-17-

 

ANYONE HOLDING THE IMPROVEMENTS OR ANY PART OR PORTION THEREOF THROUGH OR UNDER LESSEE, AND
THAT NO MECHANIC’S OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR
AFFECT THE INTEREST OF LESSOR OR ADMINISTRATIVE AGENT IN AND TO ALL OR ANY PORTION OF THE
IMPROVEMENTS.

     Section 19. Ratification.

     Except as expressly supplemented hereby, the terms and provisions of the Lease are hereby
ratified and confirmed and remain in full force and effect. In the event of any conflict between
the terms of the Lease and the terms of this Memorandum of Lease, the terms of the Lease shall
control.

     Section 20. Assignment of Lease and Liens.

     Lessee acknowledges and agrees that (a) all of Lessor’s interest in the Lease, has been
irrevocably assigned, transferred, set over and conveyed by Lessor to Administrative Agent for the
benefit of the Lenders, and (b) that all of Lessor’s rights and liens under this Memorandum of
Lease have been assigned or delegated by Lessor to Administrative Agent for the benefit of the
Lenders.

     Section 21. Notices.

     All notices, requests and demands to or upon Administrative Agent, Lessor or Lessee shall be
given in accordance with Section 8.2 of the Participation Agreement. Notices to the Deed of Trust
Trustee shall be addressed as provided on page 1 hereof, or such other address as such party may
designate by written notice.

     Section 22. Severability.

     Any provision of this Memorandum of Lease which is prohibited or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof.

     Section 23. Amendments in Writing; Cumulative Remedies.

     (a) None of the terms or provisions of this Memorandum of Lease may be waived, amended,
supplemented or otherwise modified except by a written instrument executed by Lessee and
Lessor in accordance with the terms of Section 8.4 of the Participation Agreement.

     (b) The rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by Applicable
Laws.

-18-

 

     Section 24. Section Headings.

     The section headings used in this Memorandum of Lease are for convenience of reference only
and are not to affect the construction hereof or be taken into consideration in the interpretation
hereof.

     Section 25. Successors and Assigns.

     This Memorandum of Lease shall run with the land and be binding upon the successors and
assigns of Lessor and Lessee and shall inure to the benefit of Lessor, Administrative Agent,
Lender, Deed of Trust Trustee and their respective successors and assigns.

     Section 26. Partial Release; Full Release.

     Lessor may release, for such consideration or none, as it may require, any portion of the
Mortgaged Property without, as to the remainder of the Mortgaged Property, in any way impairing or
affecting the lien, security interest and priority herein provided for Lessor compared to any other
lien holder or secured party. Further, upon receipt of the Purchase Amount pursuant to Lessee’s
exercising its Early Termination Option in accordance with Section 17.22 of the Lease or its
Purchase Option in accordance with the provisions of Section 14.1 of the Lease, or upon receipt of
all amounts payable under Article XIV of the Lease and performance of all of Lessee’s Obligations
under the Lease, Lessor shall execute and deliver to Lessee such documents and instruments as may
be required to release any portion of the Mortgaged Property from the lien and security interest
created by this Memorandum of Lease. The recitals in such release of any matters or facts shall be
conclusive proof of the truthfulness thereof.

     Section 27. Future Advances.

     In addition to any other sum secured hereby, this Memorandum of Lease shall also secure the
unpaid principal balance of, plus accrued interest on, any amount of money loaned, advanced or paid
by Lessor or Administrative Agent to or for the account and benefit of Lessee after this Memorandum
of Lease is delivered to and filed in the Real Property Records, Dallas County, Texas, for
recording, in order to pay (i) any real estate taxes and assessments, and insurance premiums; and
(ii) all other costs and expenses incurred in connection with the operation of the Mortgaged
Property and the protection or preservation of the Mortgaged Property or the security of this
Memorandum of Lease, including to cure any of Lessee’s defaults by making any payments which Lessee
should have made as provided in this Memorandum of Lease.

     Section 28. Certain Actions of Lessor.

     Subject to Section 8.4 of the Participation Agreement and Section 5.2 of the Lease, at any
time, or from time to time without liability therefor and without notice, upon written request of
Administrative Agent and presentation of this Memorandum of Lease and the Operative Documents for
endorsement, and without affecting the personal liability of any person for payment of the
indebtedness secured hereby or the effect of this Memorandum of Lease upon the remainder of the
Mortgaged Property, Lessor may (a) release any part of said Mortgaged Property, (b) consent in
writing to the making of any map or plat thereof, (c) join in granting any

-19-

 

easement thereon, or (d) join in any extension agreement or any agreement subordinating the
lien or charge hereof.

     Section 29. Certain Powers of Deed of Trust Trustee: Substitution of Deed of Trust
Trustee.

     (a) Deed of Trust Trustee may act in the execution of this trust, and Deed of Trust
Trustee is hereby authorized to act by agent or attorney in the execution of this trust. It
shall not be necessary for Deed of Trust Trustee to be present in person at any foreclosure
sale hereunder.

     (b) It is hereby expressly covenanted and agreed by all parties hereto that Lessor may,
at any time and from time to time hereafter, with notice to Lessee by registered or
certified mail (or otherwise in compliance with applicable law), appoint and substitute
another Deed of Trust Trustee in place of Deed of Trust Trustee herein named to execute the
trust herein created. Upon such appointment, either with or without conveyance to said
substituted Deed of Trust Trustee by the Deed of Trust Trustee herein named, or by any
substituted Deed of Trust Trustee in case the said right of appointment is exercised more
than once, the new and substituted Deed of Trust Trustee in each instance shall be vested
with all rights, titles, interests, powers, duties and trusts in the premises which are
vested in and conferred upon the Deed of Trust Trustee herein named; and such new and
substituted Deed of Trust Trustee shall be considered the successor and assign of Deed of
Trust Trustee who is named herein within the meaning of this Memorandum of Lease, and
substituted in its place and stead. Each such appointment and substitution shall be
evidenced by an instrument in writing which shall recite the parties to, and the book and
page of record of, this Memorandum of Lease and the description of the real property herein
described, which instrument, executed and acknowledged by Lessor or Administrative Agent and
recorded in the appropriate office of the county wherein the Mortgaged Property is situated,
shall be conclusive proof of the proper substitution and appointment of such successor Deed
of Trust Trustee, and notice of such proper substitution and appointment to all parties in
interest.

     Section 30. Successor Administrative Agent.

     Administrative Agent acting alone may from time to time, by written instrument executed and
acknowledged by Administrative Agent, mailed to Lessee and Lessor and recorded in the county in
which the Land is located, and by otherwise complying with the provisions of Applicable Law,
substitute a successor or successors to Administrative Agent named herein or acting hereunder for
the benefit of Lessor and the Lenders.

     Section 31. Certain Acknowledgments and Agreements of Lessee.

     Lessee hereby acknowledges and agrees that:

     (a) The Loan and the Equity Investment are being made, and the Notes are being issued,
for Lessee’s direct benefit and will be used to acquire the Mortgaged Property, and it is
the intention of the parties hereto that Lessee be the beneficial owner

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of the Mortgaged Property for tax and bankruptcy law purposes, but that Lessor be the
owner for Lessee’s financial reporting purposes.

     (b) Lessee, on behalf of itself and all persons now or hereafter interested in the
Mortgaged Property, or any part thereof, to the fullest extent permitted by Applicable Law,
hereby waives all rights under all appraisement, homestead, moratorium, valuation,
exemption, stay, extension, and redemption statutes, laws or equities now or hereafter
existing, and hereby further waives the pleading of any statute of limitations as a defense
to any and all indebtedness and payments thereon secured by this Memorandum of Lease, and
Lessee agrees that no defense, claim or right based on any thereof will be asserted, or may
be enforced, in any action enforcing or relating to this Memorandum of Lease or any of this
Mortgaged Property. Without limiting the generality of the preceding sentence, Lessee, on
its own behalf and on behalf of each and every person acquiring any interest in or title to
the Mortgaged Property, or any part thereof, subsequent to the date of this Memorandum of
Lease, hereby irrevocably waives any and all rights of redemption from sale under any order
or decree of foreclosure of this Memorandum of Lease or under any power contained herein or
under any sale pursuant to any statute, order, decree or judgment of any court. Lessee, for
itself and for all persons hereafter claiming through or under it, hereby expressly waives
and releases all rights to direct the order in which any of the Mortgaged Property shall be
sold in the event of any sale or sales pursuant hereto and to have any of the Mortgaged
Property and/or any other property now or hereafter constituting security for any of the
indebtedness secured hereby marshaled upon any foreclosure of this Memorandum of Lease.
Administrative Agent shall have the right to determine the order in which any or all of the
Mortgaged Property shall be subjected to the remedies provided herein. Administrative Agent
shall have the right to determine the order in which any or all portions of the Obligations
are satisfied from the proceeds realized upon the exercise of the remedies provided herein.
Nothing contained herein shall be deemed to be a waiver of Lessee’s right to purchase the
Leased Property in accordance with the provisions of the Lease.

     (c) Lessee further waives: (i) diligence and demand of payment except as otherwise
required hereunder, the Lease and the Participation Agreement or any other Operative
Document; (ii) the right to receive any notices sent to the other or to any other person,
including notices of the creation, renewal, extension, modification, or accrual, of any
obligations contained in the Operative Documents or notice of any other matters relating
thereto not expressly required under the other Operative Documents; (iii) all demands
whatsoever not otherwise required to be delivered under the Operative Documents; (iv) any
duty on the part of Administrative Agent or Deed of Trust Trustee to disclose to Lessee any
facts that either may now or hereafter know about the other, regardless of whether
Administrative Agent or Deed of Trust Trustee has reason to believe that any such facts
materially increase the risk beyond that which Lessee intends to assume or has reason to
believe that such facts are unknown to Lessee, it being understood and agreed that Lessee is
fully responsible for being and keeping informed of the financial condition of the other and
of all circumstances bearing on the risk of nonpayment of any amount hereby secured; (v) all
principles or provisions of law that conflict with the terms of this Memorandum of Lease or
any circumstances which would otherwise constitute a legal or equitable discharge of Lessee
hereunder; (vi) any right

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Lessee may have to require Administrative Agent or Deed of Trust Trustee to proceed
against Lessee or against any other party to foreclose any lien on any real or personal
property, to exercise any right or remedy under the Operative Documents, or to pursue any
other remedy, or to enforce any other right; (vii) any rights, legal or equitable, to
require marshaling of assets or to require upon foreclosure sales in a particular order; and
(viii) any statute of limitations affecting enforcement of this Memorandum of Lease.

     (d) No failure to exercise, nor any delay in exercising, on the part of Administrative
Agent, Deed of Trust Trustee, Lessor or Lender, any right, power or privilege hereunder
shall operate as a waiver thereof. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the exercise of
any other right, power or privilege. A waiver by Lessor, Administrative Agent, Deed of
Trust Trustee or Lender of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy that Lessor, Administrative Agent, Deed of Trust
Trustee or Lender would otherwise have on any future occasion.

     (e) The rights of Lessor, Administrative Agent, Deed of Trust Trustee and Lender in
relation to the Mortgaged Property or in relation to Lessee under any Operative Document
shall in no way be affected or impaired by reason of the occurrence from time to time of any
of the following events, even if such event takes place without notice to or the further
consent of Lessee: (i) the waiver by Lessor, Lender, Administrative Agent, Deed of Trust
Trustee of the performance or observance by Lessee or any other party of any of the
agreements, covenants, terms or conditions contained in any of the Operative Documents; (ii)
the doing or the omission of any of the acts referred to in the Participation Agreement, the
Credit Agreement or any other Operative Document; (iii) any failure, omission or delay on
the part of Lessor, Administrative Agent, Deed of Trust Trustee or Lender to enforce, assert
or exercise any right, power or remedy conferred on or available to Lessor, Administrative
Agent, Deed of Trust Trustee, Lender, or any of them in or by any of the Operative
Documents; (iv) the voluntary or involuntary liquidation, dissolution, sale of all or
substantially all of the assets, marshaling of assets and liabilities, receivership,
conservatorship, custodianship, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of, or other similar
proceeding affecting Lessee or any of its assets; (v) the inability of Lessor,
Administrative Agent, Deed of Trust Trustee or Lender, respectively, to enforce any
provision of the Operative Documents; (vi) any change in the relationship between Lessor and
Lessee or any termination of such relationship; (vii) the inability of Lessee to perform, or
the release of Lessee from the performance of, any obligation, agreement, covenant, term or
condition of Lessee under any of the Operative Documents, including this Memorandum of
Lease, by reason of any law, regulation or decree, now or hereafter in effect; or (viii) any
action or inaction by Administrative Agent, Deed of Trust Trustee, Lender or Lessor that
results in any impairment or destruction of any rights of Lessee to proceed against the
other or any person for reimbursement.

Notwithstanding anything stated to the contrary herein, nothing contained herein shall limit or
impair the right of Lessee to purchase the Leased Property pursuant to Articles XIII and XIV and

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Section 17.22 of the Lease or any other rights (including the right to receive notices) Lessee may
have under any of the other Operative Documents.

     Section 32. Existing Space Leases.

     It is understood that so long as Lessee continues to be entitled to possession of the Leased
Property pursuant to the Lease, Lessee’s possession will extend to and include not only the
Improvements, but also the Land (subject only to Lessor’s limited right of entry on and subject to
the terms and conditions set forth in this Lease), and, so long as no Lease Event of Default has
occurred and is continuing, Lessee will be entitled to any benefits conferred upon the owner of the
Leased Property by the Existing Space Leases, including the right to receive and retain rents as
they become due under Existing Space Leases and to otherwise enforce the Existing Space Leases
during the Basic Lease Term.

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

     If, notwithstanding the intention of the parties to the contrary, a court of competent
jurisdiction shall view the Lease as a lease and not as a secured financing transaction, then
Lessor shall be deemed to have appointed Lessee as its agent to perform all of the obligations of
the lessor/owner pursuant to the Existing Space Leases and to exercise all of the rights and
benefits of the lessor/owner pursuant to the Existing Space Leases, Lessee shall be deemed to have
accepted such appointment and agreed to perform all such obligations and exercise such rights and
benefits and, in consideration of the foregoing, so long as no Lease Event of Default has occurred
and is continuing, Lessor shall allow Lessee to retain all rents and other amounts and proceeds
collected from time to time by Lessee from the tenants under the Existing Space Leases. Lessee
hereby covenants that any extension or renewal of the Existing Space Leases shall provide that such
Leases shall be subject and subordinate to the Lease.

     Section 33. Counterpart Execution.

     This Memorandum of Lease may be executed in any number of counterparts and by each of the
parties hereto in separate counterparts, all such counterparts together constituting but one and
the same instrument.

     Section 34. Waiver of Certain Rights.

     If the Lease shall be terminated pursuant to Section 13.1 thereof or a foreclosure hereunder,
Lessee waives, to the fullest extent permitted by law, (a) any notice of legal proceedings to
obtain possession; (b) any right of redemption or repossession; and (c) the benefit

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of any laws now or hereafter in force exempting property from liability for rent or for debt
or limiting Lessor with respect to the election of remedies.

     Section 35. References.

     Any and all notices, requests, certificates and other instruments executed and delivered
concurrently with or after the execution and delivery of this Memorandum of Lease may refer to the
“Memorandum of Lease, dated as of June 22, 2006,” or may identify this Memorandum of Lease in any
other respect without making specific reference to this Memorandum of Lease, but nevertheless all
such references shall be deemed to include this Memorandum of Lease, unless the context shall
otherwise require.

     Section 36. Governing Law.

     THIS MEMORANDUM OF LEASE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN TITLE
14 OF ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW), EXCEPT AS TO MATTERS RELATING TO THE
CREATION OF THE GRANT OF A DEED OF TRUST LIEN AND SECURITY INTEREST HEREUNDER AND THE EXERCISE OF
RIGHTS AND REMEDIES WITH RESPECT THERETO, WHICH SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF TEXAS. WITHOUT LIMITING THE FOREGOING, IN THE EVENT THAT THE LEASE IS
DEEMED TO CONSTITUTE A FINANCING, WHICH IS THE INTENTION OF THE PARTIES FOR THIS PURPOSE, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN TITLE 14 OF
ARTICLE 5 OF THE NEW YORK GENERAL OBLIGATIONS LAW), SHALL GOVERN THE CREATION, TERMS AND PROVISIONS
OF THE INDEBTEDNESS EVIDENCED HEREBY AND THE CREATING OF THE LIEN GRANTED HEREUNDER, BUT PERFECTION
AND ENFORCEMENT OF SAID LIEN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE
STATE IN WHICH THE LEASED PROPERTY IS LOCATED.

[Signatures Begin on Following Page]

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     In Witness Whereof, the parties hereto have caused this Memorandum of Lease, Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture Filing to be executed by the parties
on the date set out in their respective acknowledgments below, but it is to be effective on the day
and year first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Lessee:
	 
	 	 	 	 	 	 
	 	 	LENNOX PROCUREMENT
COMPANY INC., 
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gregory A. Moseman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Gregory A. Moseman	 	 
	 

	 	 	 	Title: Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Address:   2140 Lake Park Boulevard
	 

	 	 	 	          Richardson, Texas 75080	 	 
	 
	 	 	 	 	 	 
	 	 	Lessor:

	 	 	 	 	 	 	 
	 	 	BTMU CAPITAL CORPORATION, a
	 	 	Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Cheryl A. Behan	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Cheryl A. Behan	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

	 	 	 	 	 
	 

	 	Address:
	 	111 Huntington Avenue, Suite 400
	 

	 	 	 	Boston, MA 02119

 

 

     Receipt of this original counterpart of the foregoing Lease Supplement and Memorandum of
Lease, Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing is
hereby acknowledged as of the date hereof.

MHCB (USA) Leasing and Finance Corporation,

as Administrative Agent

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	/s/ Victor Mora	 	 
	 

	 	 	 	 
	Name:
	 	Victor Mora 	 	 
	 

	 	 	 	 
	Title:
	 	Vice President 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	 	 	 
	Address:

	 	1251 Avenue of the Americas	 	 
	 

	 	New York, NY 10020	 	 

 

 

ACKNOWLEDGEMENT

	 	 	 	 	 	 	 
	STATE OF TEXAS

	)	 	 	 
	 

	)	ss.
	COUNTY OF DALLAS

	)	 	 	 

     This instrument was acknowledged before me on the 21st day of June, 2006 by Gregory
A. Moseman, in his/her capacity as Assistant Treasurer of LENNOX PROCUREMENT COMPANY INC., a
Delaware corporation, on behalf of said corporation.

	 	 	 	 	 
	 	 	 
	/s/ Jayne Kopacek
 	 
	Name:  Jayne Kopacek 	 

My Commission Expires: 11-15-09

 

 

ACKNOWLEDGEMENT

	 	 	 	 	 	 	 
	COMMONWEALTH OF MASSACHUSETTS

	)	 	 	 
	 

	)	ss.
	COUNTY OF SUFFOLK

	)	 	 	 

     This instrument was acknowledged before me on the 13th day of June, 2006 by Cheryl
A. Behan, in her capacity as Senior Vice President of BTMU CAPITAL CORPORATION a Delaware
corporation, on behalf of said corporation.

	 	 	 	 	 
	 	 	 
	/s/ Kathleen Casserly
 	 
	Name:  Kathleen Casserly 	 

My Commission Expires: August 21, 2009

 

 

ACKNOWLEDGEMENT

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	)	 	 	 
	 

	)	ss.
	COUNTY OF NEW YORK

	)	 	 	 

     This instrument was acknowledged before me on the 13th day of June, 2006 by Victor
Mora, in his capacity as Vice President of MHCB (USA) Leasing and Finance Corporation a New York
corporation, on behalf of said corporation.

	 	 	 	 	 
	 	 	 
	/s/ Lisa Hayes
 	 
	Name:  Lisa Hayes 	 

My Commission Expires: November 8, 2008

 

 

     SWORN AND SUBSCRIBED TO BEFORE ME, the undersigned authority by Jeffrey L. Bell on this the
22nd day of June, 2006.

	 	 	 	 	 	 	 
	THE STATE OF TEXAS

	)	 	 	 
	 

	)	 	 	 
	COUNTY OF DALLAS

	)	 	 	 

     This instrument was acknowledged before my on this 22nd day of June, A.D., 2006, by
Jeffrey L. Bell.

	 	 	 	 	 
	 	 	 
	 	                                                     /s/ Sabrina Bowie
 	 
	 	Notary Public, State of Texas 	 
	 	Notary's Printed Name:

Notary's Commission Expires:  9/8/2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]