Document:

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EXHIBIT 10.1

CONFIDENTIAL SEPARATION AGREEMENT

          This Confidential Separation Agreement (“Agreement”) is made and entered into as of
the date indicated below between VeriFone Holdings, Inc., a Delaware corporation, including all of
its officers, directors, subsidiaries, affiliates and related entities (collectively
“VeriFone”), and William G. Atkinson (“Executive”).

          VeriFone and Executive wish to provide for the separation of their employment relationship and
all agreements that may have existed between them, and fully and finally to settle any and all
disputes arising out of Executive’s employment by VeriFone or the separation of that employment,
without any admission of any kind by either party.

          Therefore, in consideration of the mutual promises and agreements set forth in this Agreement,
VeriFone and Executive agree as follows:

1.      EMPLOYMENT SEPARATION

     1.1      Separation Date. Effective as of July 18, 2007 (the “Separation Date”),
Executive’s employment relationship with VeriFone ceased. Executive hereby agrees that his
employment with VeriFone ceased as of the Separation Date and that following the Separation Date,
Executive had no active employment with VeriFone, including any directorships, offices or other
positions with VeriFone.

     1.2      Separation. Effective on the Separation Date, Executive no longer has any duties
or authority to represent VeriFone or to enter into any agreement or commitments on behalf of
VeriFone. Thereafter, Executive shall have no further rights deriving from Executive’s employment
by VeriFone, and shall not be entitled to any further compensation or vested or unvested benefits,
including, without limitation, any stock options, restricted stock units and other company awards
granted under VeriFone’s stock plans, other than as provided for expressly in this Agreement.

2.      CONSIDERATION

          Subject to Executive’s compliance with, and in exchange for, the promises contained in Section
3, and subject further to the effectiveness of the Waiver and Release of Claims and Covenant Not To
Sue set forth in Section 4, and to the other terms and conditions set forth in this Agreement,
VeriFone agrees to provide Executive with the payments and benefits set forth in this Section 2
(“Separation Consideration”). The payments and other benefits to be provided hereunder are
in place of, and not in addition to, payments otherwise provided under any other severance plan or
policy of the Company. No payments will be made hereunder until the Effective Date, as defined in
Section 4.

          In no event shall Executive be obligated to seek other employment or take other action by way
of mitigation of the amounts payable to Executive under any of the provisions of this Agreement.

 

 

     2.1      Separation Payment.

          (a)      Separation Payment. VeriFone will pay Executive a separation payment equal to an
aggregate of three hundred thousand dollars ($300,000), payable as follows: (i) a lump sum payment
in the amount of $150,000 on the last business day of the month occurring six months after the
Effective Date; and (ii) thereafter, in six (6) equal monthly installments of twenty-five thousand
dollars ($25,000) over a six (6) month period, payable in arrears on the last business day of each
month (“Severance Pay Period”). Any breach or violation by Executive of any of his
obligations under this Agreement will relieve VeriFone from further obligations to make any
payments under this Subsection.

          (b)      Salary and Bonus Entitlement. VeriFone will pay Executive all unpaid salary for
the period up to the Separation Date and 100% of Executive’s target cash bonus for VeriFone’s
fiscal quarter ending July 31, 2007 in the sum of $50,000. Such payments will be made within three
business days of the Effective Date.

          (c)      Vacation. Executive will receive payment for any unused, earned regular, banked
or purchased vacation days, as well as any unused floating holidays, credited to Executive as of
the Separation Date. Such payment will be made with Executive’s final regular payroll check.

     2.2      Equity Grants.

          (a)      2005 Option Grant. Other than as set forth below, the unexercised portion of the
Executive’s option to purchase 125,000 shares of common stock of VeriFone Holdings, Inc. at an
exercise price of $10.00 per share granted to Executive in April 2005 pursuant to the 2005 Employee
Equity Incentive Plan (the “2005 Grant”) will terminate and be forfeited as of the
Separation Date. On October 31, 2009, and for a period of thirty calendar days thereafter, if
Executive has complied with all of the terms of this Agreement, Executive will be entitled to
exercise the unsold portion of the 2005 Grant that has vested or would have vested through October
31, 2007 (the details of which are set forth on Schedule 2.2) at an exercise price of $10.00 per
share. Executive agrees that he will not be entitled to, and shall not seek to exercise such
options prior to October 31, 2009; provided, however, that in the event of a Change in Control (as
defined in the 2005 Employee Equity Incentive Plan) prior to October 31, 2007 which will result in
the options ceasing to be outstanding, VeriFone will use reasonable best efforts to provide that
Executive shall have thirty (30) calendar days prior to such event to exercise such option.

          (b)      2006 Option Grant. Other than as set forth below, the unexercised portion of the
Executive’s option to purchase 40,000 shares of common stock of VeriFone Holdings, Inc. at an
exercise price of $28.86 per share granted to Executive in March 2006 pursuant to the 2006 Equity
Incentive Plan (the “2006 Grant”) will terminate and be forfeited as of the Separation
Date. On October 31, 2009, and for a period of thirty calendar days thereafter, if Executive has
complied with all of the terms of this Agreement, Executive will be entitled to exercise the unsold
portion of the 2006 Grant that has vested or would have vested through October 31, 2007 (the
details of which are set forth on Schedule 2.2) at an exercise price of $28.86 per share.
Executive agrees that he will not be entitled to, and shall not seek to

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exercise such options prior to October 31, 2009; provided, however, that in the event of a
Change in Control (as defined in the 2006 Equity Incentive Plan) prior to October 31, 2007 which
will result in the options ceasing to be outstanding, VeriFone will use reasonable best efforts to
provide that Executive shall have thirty (30) calendar days prior to such event to exercise such
options.

          (c)      2006 Restricted Stock Units. Executive and VeriFone hereby agree that all vested
and unvested restricted stock units (the details of which are set forth on Schedule 2.2) will
terminate and be forfeited as of the Separation Date. VeriFone agrees that it shall, on October
31, 2009, provided that Executive has complied with all of the terms of this Agreement, deliver the
net shares of common stock (following any required withholding of shares of common stock to cover
applicable taxes) equivalent to (i) that number of shares of common stock underlying restricted
stock units that have vested or would have vested and remained unsold through October 31, 2007 (the
details of which are set forth on Schedule 2.2) pursuant to the grant of restricted stock units to
Executive in March 2006 and (ii) that number of shares of common stock underlying restricted stock
units that have vested or would have vested and remained unsold through October 31, 2007 (the
details of which are set forth on Schedule 2.2) pursuant to the grant of restricted stock units to
Executive in September 2006. No restricted stock units granted to Executive under the 2006 Equity
Incentive Plan shall survive the Separation Date.

          (d)      Trading Plans. Executive agrees that he will forthwith terminate, modify or amend
any trading plans entered into pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 to
the extent inconsistent with the provisions of this Subsection 2.2.

     2.3      Benefits Continuation.

          (a)      Employee Benefits. VeriFone will continue to provide, for a period of twelve (12)
months following the Separation Date, or until the date that Executive becomes eligible to
participate in the welfare plans of a new employer, if earlier, the Executive’s family medical and
dental coverage, life, and long-term disability currently provided under VeriFone’s employee
benefits plans under substantially the same terms and conditions (including contributions or
premium payments required from Executive for such benefits) as applicable from time to time to
senior executives of VeriFone. Any breach or violation by Executive of any of the terms of this
Agreement will relieve VeriFone from the obligation to make any benefits available under this
Subsection.

          (b)      Outplacement Services. VeriFone will provide Executive with executive
outplacement services through Lee Hecht Harrison, Inc., Drake Beam Morin, Inc., or an equivalent
agency until the earlier of twelve (12) months from the Separation Date or the date on which
Executive begins active employment with another employer to assist Executive in locating another
suitable executive position. VeriFone’s obligation to provide outplacement services is contingent
upon Executive’s continuing good faith cooperation with the outplacement service and active efforts
to locate another suitable executive position.

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     2.4      Acknowledgment.

          Executive acknowledges that the Separation Consideration provided in this Agreement, which is
in place of other payments and benefits, is good and valuable consideration in exchange for this
Agreement, and includes payments and benefits to which Executive is not otherwise entitled.

     2.5      Withholding.

          VeriFone will withhold from any compensation and benefits payable to Executive under this
Section 2 all appropriate deductions for employee benefits, if applicable, and the amounts
necessary for VeriFone to satisfy its withholding obligations under Federal, state and local income
and employment tax laws.

3.      EXECUTIVE’S COVENANTS

          The parties desire to provide for the protection of the business, good will, confidential
information, relationship and other proprietary rights of VeriFone. Accordingly, Executive agrees
to the following:

          (a)      Property of VeriFone. Within three (3) calendar days of the Effective Date,
Executive will return to VeriFone all property of VeriFone, including, but not limited to all
identification cards; files; computer hardware, software, equipment and disks; keys; Company owned
or leased vehicles; credit cards; mobile devices; and records.

          (b)      Future Conduct. Executive agrees that if he receives inquiries from the media,
financial analysts or VeriFone shareholder or investor communities concerning his departure from
VeriFone, he may indicate that he has departed to pursue other business opportunities or he may
refer such individuals to VeriFone’s Chairman and Chief Executive Officer. Executive further
agrees not to engage in any discussion with any former or present director of VeriFone concerning
his reasons for departure without first informing the Chairman and Chief Executive Officer or the
Executive Vice President and Chief Financial Officer of VeriFone. Executive agrees not to engage
in any form of conduct, or make any statements or representations, that disparage or otherwise harm
the reputation, goodwill or commercial interests of VeriFone or its management or directors.

          (c)      Consultant Services and Cooperation. Executive agrees that he will, at VeriFone’s
reasonable request perform consulting services (collectively, the “Services”) during normal
business days, up to but not exceeding 20 hours during the Severance Pay Period. VeriFone will
provide Executive with ten days’ notice for any requested services and will, in addition to the
consideration provided herein, will reasonably compensate Executive (as agreed between them in good
faith) for time spent providing such requested services. In addition, Executive agrees to
cooperate fully with VeriFone, including its attorneys or accountants, in connection with any
potential or actual litigation, or other real or potential disputes, which directly or indirectly
involves VeriFone. Executive agrees to appear as a witness and be available to attend depositions,
consultations or meetings regarding litigation or potential litigation as reasonably requested by
VeriFone. VeriFone acknowledges that these efforts, if necessary, will impose on Executive’s time
and would likely interfere with other commitments

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Executive may have in the future. Consequently, VeriFone shall attempt to schedule such
depositions, consultations or meetings in coordination with Executive’s schedule, but Executive
recognizes that scheduling of certain court proceedings, including depositions, may be beyond
VeriFone’s control. VeriFone also agrees to reimburse Executive for the out-of-pocket expenditures
actually and reasonably incurred by Executive in connection with the performance of the services
contemplated by this Subsection, including hotel accommodations, air fare transportation and meals
consistent with VeriFone’s generally-applicable expense reimbursement policies as applied to
Executive prior to the Separation Date. In addition, to the extent that such obligations arise
after the Severance Pay Period, VeriFone will reasonably compensate Executive for time spent
providing such cooperation at VeriFone’s request. It is expressly understood by the parties that
amounts paid or reimbursed by VeriFone to Executive under this Subsection are not intended or
understood to be dependent in any way upon the character of content of any information Executive
discloses in good faith in any such proceedings, meetings or consultation.

          (d)      Confidentiality of this Agreement. Executive and VeriFone agree that this
Agreement and its terms will be regarded as confidential as between the parties, and that neither
they nor their counsel will reveal or disclose either the terms or the substance of this Agreement
to any other person, except as required by law (including the securities laws, which for the
avoidance of doubt will require that VeriFone file a Current Report on Form 8-K under the
Securities Exchange Act of 1934 with respect to this Agreement), subpoena, court order or other
legal process. If disclosure is compelled by law (including the securities laws), subpoena, court
order or other legal process, or as otherwise required by law, the party so compelled agrees to
notify the other party as soon as notice of such requirement or process is received and before
disclosure takes place. Notwithstanding these provisions, Executive may disclose the terms of this
Agreement to members of Executive’s immediate family, Executive’s accountant or financial advisor,
and Executive’s attorney upon their agreement to maintain this Agreement in strict confidence, as
set forth in this Subsection. Further, nothing in this Subsection limits VeriFone’s ability to
disclose the information internally to those persons with a legitimate business reason to have
access to the information.

          (e)      Confidential Information. Executive acknowledges that he has had access to
confidential Company business information (including, but not limited to, future business plans,
pricing strategies, marketing plans, customer lists, financial information and personnel
information) concerning the business, plans, finances and assets of VeriFone (“Confidential
Information”) and which is not generally known outside of VeriFone. For all time, Executive
agrees that he shall not, without the proper written authorization of VeriFone, directly or
indirectly use, divulge, furnish or make accessible to any person any Confidential Information, but
instead shall keep all Confidential Information strictly and absolutely confidential. Executive
will use reasonable and prudent care to safeguard and prevent the unauthorized use or disclosure of
Confidential Information.

          Further, Executive expressly acknowledges that the terms of this Subsection are material to
this Agreement, and if Executive breaches the terms of this Subsection, Executive shall be
responsible for all damages and, at the election of VeriFone, the return of all consideration paid
hereunder, without prejudice to any other rights and remedies that VeriFone may have.

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          Executive acknowledges and agrees that the Confidential Information and special knowledge
acquired during Executive’s employment with VeriFone is proprietary to VeriFone and is valuable and
unique, and that breach by Executive of the provisions of this Agreement as described in this
Subsection will cause VeriFone irreparable injury and damage, which cannot be reasonably or
adequately compensated solely by money damages. Executive, therefore, expressly agrees that
VeriFone shall be entitled to injunctive or other equitable relief in order to prevent a breach of
this Agreement or any part thereof, in addition to such other remedies legally available to
VeriFone. Executive expressly waives the claim that VeriFone has an adequate remedy at law.

     (f)      Solicitation of Employees. Executive shall not, at any time during twenty-four
(24) month period following the Separation Date, directly or indirectly induce or attempt to induce
any employee of VeriFone to leave the employ of VeriFone or in any way interfere with the
relationship between VeriFone and any of its employees or, on behalf of himself or any other
person, hire, employ or engage any such person. Executive further agrees that, during such time,
if an employee of VeriFone contacts Executive about prospective employment, Executive will inform
such employee that he or she cannot discuss the matter further and refer such matter to the
Executive Vice President and Chief Financial Officer of VeriFone.

     (g)      Solicitation of Clients, Customers, Etc. Executive shall not, at any time during
the twenty-four (24) month period following the Separation Date, directly or indirectly, solicit
any person who, as of the Separation Date was a client, customer, vendor, consultant or agent of
VeriFone to discontinue business, in whole or in part with VeriFone. Executive further agrees
that, during such time, if a client, customer, vendor, consultant or agent of VeriFone contacts
Executive about discontinuing business with VeriFone and/or moving that business elsewhere,
Executive will inform such person that he cannot discuss the matter further and refer such matter
to the Executive Vice President and Chief Financial Officer of VeriFone.

     (h)      Non-Competition. Executive agrees that during the twenty-four (24) month period
following the Separation Date, Executive will not, anywhere in North America, Europe or Asia,
invest in, contribute capital to, raise capital for or directly or indirectly participate in the
business or management (as a director, officer, employee, consultant, advisor, agent,
representative or otherwise) of, any Person (including, without limitation, First Data Corporation,
Hypercom Corporation, Ingenico S.A., International Business Machines Corp., MICROS Systems, Inc.,
NCR Corporation, Radiant Systems, Inc., Thales Group and Sagem Monetel) that is engaged in any
business that designs, develops, manufactures, markets or sells point-of-sale payment
hardware, software or services, including any credit/debit card payment solution and related
support services, unless both parties agree otherwise in writing. For purposes of this section
3(h), “Person” shall mean any individual, sole proprietor, general partnership, limited
partnership, company, corporation, joint venture, trust, fund, limited liability company, limited
liability partnership, association or any other entity. Provided, however, that purchasing and
owning, directly or indirectly, up to one percent (1%) of the capital stock or other securities of
any corporation or other entity whose stock or securities are traded on any national or regional
securities exchange or the national over-the-counter market and such ownership shall not constitute
a violation of this Section 3(h).

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     (i)      Indemnification. For the period of six (6) years following the Separation Date,
VeriFone will indemnify and hold harmless Executive against all losses, claims, damages, costs,
expenses, liabilities or judgments or amounts that are paid in settlement, in each case to the
extent actually and reasonably incurred with the approval of VeriFone, which approval shall not be
unreasonably withheld or delayed arising out of or in connection with any claim, action, suit,
proceeding or investigation by reason of the fact that Executive was an officer or employee of
VeriFone, pertaining to any matter existing or occurring at or prior to the Separation Date and
whether asserted or claimed prior to, or at or after the Separation Date to the full extent
VeriFone is permitted by applicable law to indemnify Executive.

4.      GENERAL WAIVER, RELEASE AND COVENANT NOT TO SUE BY EXECUTIVE

          (a)      General Waiver and Release by Executive.

          Each of Executive and VeriFone (in such capacity a “Releasing Party”), as a material
inducement to the other party (in such capacity a “Released Party”), to enter into this
Agreement, and in consideration of the Released Party’s promises to make the payments and provide
the benefits and/or perform the other covenants and agreements set forth in this Agreement, hereby
knowingly and voluntarily releases and forever discharges the Released Party, and all of his or its
affiliates and related entities, and all of their past, present and future respective agents,
officers, directors, stockholders, employees, attorneys and assigns from any federal, state or
local charges, claims, demands, actions, liabilities, suits, or causes of action, at law or equity
or otherwise and any and all rights to or claims for continued employment after the Separation
Date, attorneys fees or damages including contract, compensatory, punitive or liquidated damages)
or equitable relief, which he may ever have had, has now or may ever have or which Releasing
Party’s heirs, executors or assigns can or shall have, against any or all of them, whether known or
unknown, on account of or arising out of Executive’s employment with VeriFone or its Affiliates or
the termination thereof; provided, however that this release shall not apply to: (i) claims based
on this Agreement; and (ii) claims based on California Labor Code section 2802.

          This release includes, but is not limited to, rights and claims arising under the Age
Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act of
1990, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act,
the Fair Labor Standards Act, any state or local human rights statute or ordinance, any claims or
rights of action relating to breach of contract, public policy, personal or emotional injury,
defamation, additional compensation, or fringe benefits. Executive specifically waives the benefit
of any statute or rule of law which, if applied to this Agreement, would otherwise exclude from its
binding effect any claims not now known by Executive to exist. This release does not purport to
waive claims arising under these laws after the date of this Agreement.

          Executive acknowledges that he has reviewed the information about the severance offer
described above as part of this Agreement. Executive confirms that he has been given at least
twenty-one (21) days within which to consider this Agreement and the General Waiver and Release
contained herein. Executive further confirms that he has been advised in

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writing prior to his execution of this Agreement to consult with legal counsel. Executive
acknowledges that if he executes this Agreement prior to the expiration of twenty-one (21) days, or
chooses to forgo the advice of legal counsel, or any personal or financial advisor, he does so
freely and knowingly, and waives any and all future claims that such action or actions would affect
the validity of this Agreement. Executive acknowledges that any changes made to this Agreement
after its first presentation to Executive, whether material or immaterial, do not restart the
tolling of this twenty-one (21) day period.

          Executive understands that he may revoke this Agreement at any time on or before the seventh
(7th) day following the date on which he signs the Agreement. To be effective, the
decision to revoke must be in writing and delivered to VeriFone, personally or by certified mail,
to the attention of:

VeriFone Holdings, Inc.

2099 Gateway Place, Suite 600

San Jose, CA 95110

Attn: Chairman and Chief Executive Officer

with a copy to:

Sullivan & Cromwell LLP

1870 Embarcadero Road

Palo Alto, California 94303-3308

Attention: Scott D. Miller, Esq.

on or before the seventh (7th) day after Executive signs the Agreement. In no case will
this Agreement become effective or enforceable against the Executive or VeriFone until the
expiration of the seven (7) day revocation period (the “Effective Date”). If Executive
exercises this limited right to revoke, or if the release provisions of Section 4 are held invalid
for any reason whatsoever, Executive agrees to return any consideration received under the terms of
this Agreement and that VeriFone is released from any obligations under this Agreement.

          (b)      Covenant Not to Sue. Executive and VeriFone each covenants and agrees not to sue
or bring any action, whether federal, state, or local, judicial or administrative, now or at any
future time, against, the other party, its Affiliates, its or their respective agents, directors,
officers or employees, with respect to any claim released hereby or arising out of Executive’s
employment with VeriFone or its Affiliates. Nevertheless, this Agreement does not purport to limit
any right Executive may have to file a charge under the ADEA or other civil rights statute or to
participate in an investigation or proceeding conducted by the Equal Employment Opportunity
Commission or other investigatory agency. This Agreement does, however, waive and release any
right to recover damages under the ADEA or other civil rights statute.

          (c)      California Civil Code Section 1542. In connection with this Section 4, Executive
and VeriFone each acknowledges that such party is aware that he or it or their respective attorneys
may hereafter discover facts different from or in addition to the facts which are now known or
believed to be true with respect to the subject matters in this Section 4, but

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that each of them intends that the general releases herein given shall be and remain in full
force and effect, notwithstanding the discovery of any such different or additional facts.
Therefore, Executive and VeriFone acknowledge that they have each been informed by their respective
attorneys of and that he is familiar with, Section 1542 of the Civil Code of the State of
California, which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR”.

Executive and VeriFone each does hereby waive and relinquish all rights and benefits they have or
may have under Section 1542 of the Civil Code of the State of California, to the full extent that
they may lawfully waive all such rights and benefits pertaining to the subject matters in this
Section 4.

5.      MISCELLANEOUS PROVISIONS

          (a)      Non-Assignment of Claims. Executive and VeriFone each represents and warrants to
the other that they have not sold, assigned, transferred, conveyed or otherwise disposed of to any
third-party, by operation of law or otherwise, any action, cause of action, suit, debt, obligation,
account, contract, agreement, covenant, guarantee, controversy, judgment, damage, claim,
counterclaim, liability or demand of any nature whatsoever relating to any matter covered by this
Agreement.

          (b)      Successors. This Agreement shall be binding upon, enforceable by and inure to the
benefit of, (i) Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees and (ii) VeriFone and its successors and
permitted assigns. Neither this Agreement nor any rights arising hereunder may be assigned,
pledged, transferred or hypothecated by either party hereto.

          (c)      CONTROLLING LAW AND VENUE. THE VALIDITY OF THIS AGREEMENT AND ANY OF ITS
PROVISIONS AND CONDITIONS, AS WELL AS THE RIGHTS AND DUTIES OF THE PARTIES, SHALL BE INTERPRETED
AND CONSTRUED PURSUANT TO AND IN ACCORDANCE WITH THE INTERNAL LAWS, AND NOT THE LAW OF CONFLICTS,
OF THE STATE OF NEW YORK. THE PARTIES SELECT AND IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION
OF ANY UNITED STATES FEDERAL COURT SITTING IN THE NORTHERN DISTRICT OF CALIFORNIA OR ANY STATE
COURT OF CALIFORNIA SITTING IN SANTA CLARA COUNTY FOR ANY ACTION TO ENFORCE, CONSTRUE OR INTERPRET
THIS AGREEMENT. THE PARTIES FURTHER WAIVE ANY OBJECTION TO VENUE IN SUCH STATE ON THE BASIS OF
FORUM NON CONVENIENS OR OF CONVENIENCE OF THE PARTY.

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          (d)      Amendment. Any amendment to this Agreement shall only be made in writing and
signed by the parties.

          (e)      Waiver. No claim or right arising out of a breach or default under this Agreement
can be discharged by a waiver of that claim or right unless the waiver is in writing signed by the
party hereto to be bound by such waiver. A waiver by any party of a breach or default by the other
party of any provision of this Agreement shall not be deemed a waiver of future compliance with
such provision, and such provision shall remain in full force and effect.

                         (f)      Notice. All notices, requests, demands and other communications under the
Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid,
and properly addressed as follows:

To Executive:

William G. Atkinson

4993 Sandshore Court

San Diego, CA 92130

with a copy (which shall not constitute notice) to:

Morrison & Foerster LLP

12531 High Bluff Drive

Suite 100

San Diego, CA 92130

Attention: Rick Bergstrom, Esq.

To :

VeriFone Holdings, Inc.

2099 Gateway Place, Suite 600

San Jose, CA 95110

Attention: Chairman and Chief Executive Officer

with a copy (which shall not constitute notice) to:

Sullivan & Cromwell LLP

1870 Embarcadero Road

Palo Alto, California 94303-3308

Attention: Scott D. Miller, Esq.

     The parties agree to notify each other promptly of any change in mailing address.

          (g)      Headings. Headings used in this Agreement are for reference purposes only and
shall not be deemed to be a part of this Agreement.

          (h)      Entire Agreement. VeriFone and Executive each represent and warrant that no
promise or inducement has been offered or made except as set forth and that the

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consideration stated is the sole consideration for this Agreement. This Agreement is a
complete agreement and states fully all agreements, understandings, promises and commitments as
between Executive and VeriFone as to the separation of Executive from employment by VeriFone. This
Agreement supersedes any prior agreements, whether oral or written, between Executive and VeriFone.
Except as expressly provided herein, Executive shall not be entitled to any other or further
compensation or remuneration.

          (i)      Unemployment Compensation. In the event that Executive files a claim for
unemployment compensation or re-employment insurance benefits, VeriFone agrees that it will not
contest Executive’s claims on any grounds, including, without limitation, that Executive has
voluntarily resigned from employment or committed acts of disqualifying misconduct. Nothing
contained in this paragraph prohibits VeriFone from correcting misstatements made by Executive.

          (j)      References. VeriFone will use reasonable best efforts to ensure that those of its
employees who have been made aware of the circumstances of Executive’s termination from VeriFone’s
employ shall refrain from making statements or representations that disparage or otherwise harm the
reputation of Executive. VeriFone agrees that VeriFone will provide a favorable oral or written
employment reference as and when Executive reasonably requests.

          (k)      Assistance. VeriFone agrees that it will, at Executive’s request assist Executive
in satisfying his remaining obligations to complete and file Forms 4 under the Securities Exchange
Act of 1934.

          (l)      Ambiguity. Executive and VeriFone have reviewed this Agreement and discussed the
contents hereof with counsel. Therefore no rule of construction that would provide for resolution
of any ambiguity or uncertainty in a writing against a party drafting the writing shall apply to
this Agreement.

          (m)      Attorneys’ Fees and Costs. The prevailing party in any action relating to an
alleged breach or enforcement of this Agreement shall be entitled to an award of reasonable
attorneys’ fees and costs.

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          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year set
forth below:

	 	 	 
	EXECUTIVE:

	 	VERIFONE HOLDINGS, INC.
	 
	 	 
	/s/ William G. Atkinson

	 	By:/s/ Douglas G. Bergeron
	 

	 	 
	William G. Atkinson

	 	Name: Douglas G. Bergeron
	Date: August 2, 2007

	 	Title: Chairman and Chief Executive Officer
	 

	 	Date: August 2, 2007

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Schedule 2.2

Stock Option Grants

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Number of	 	 	Number of	 	 	Total number of	 	 	 	 
	 	 	 	 	 	 	 	Options Vested	 	 	Options to vest	 	 	Options to become	 	 	 	 
	 	 	 	 	Type of	 	 	through 	 	 	through October	 	 	exercisable	 	 	Exercise	 
	 	Grant	 	 	Award	 	 	Separation Date1	 	 	31, 2007	 	 	October 31, 20092	 	 	Price	 
	 	April 2005

	 	 	Option
	 	 	 	31,500	 	 	 	 	7,812	 	 	 	 	39,312	 	 	 	$10.00
per
 share	 
	 	March 2006

	 	 	Option
	 	 	 	12,500	 	 	 	 	2,500	 	 	 	 	15,000	 	 	 	$28.86
per
 share	 
	 

Restricted Stock Units

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Number of	 	 	Number of	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Restricted Stock	 	 	Restricted Stock	 	 	Total number of	 	 	 	 
	 	 	 	 	 	 	 	Units Vested	 	 	Units to Vest	 	 	Restricted Stock	 	 	 	 
	 	 	 	 	Type of	 	 	through	 	 	through October	 	 	Units to be	 	 	Exercise	 
	 	Grant	 	 	Award	 	 	Separation Date	 	 	31, 2007	 	 	forfeited3	 	 	Price	 
	 	March 2006

	 	 	RSU
	 	 	 	3,125	 	 	 	 	625	 	 	 	 	3,750	 	 	 	N/A	 
	 	September 2006

	 	 	RSU
	 	 	 	-0-	 	 	 	 	10,000	 	 	 	 	10,000	 	 	 	N/A	 
	 

 

			
	1	 	Subject to forfeiture under the terms of the
applicable equity incentive plan
	 
	2	 	Awards will be exercisable under the terms and
conditions of the Separation Agreement on October 31, 2009 and for the period
of thirty calendar days thereafter (or for thirty calendar days prior to an
earlier Change in Control pursuant to which the options will cease to be
outstanding).
	 
	3	 	Pursuant to Section 2.2(c), VeriFone agrees that
it will, on October 31, 2009, or, if earlier, upon a Change in Control (as
defined in the 2006 Equity Incentive Plan) pursuant to which shares in VeriFone
will cease to be publicly traded make a stock grant of 13,750 shares of common
stock to Executive, subject to the terms and conditions of this Agreement.

-13-exv10w1

 

EXHIBIT 10.1

THIRD AMENDMENT TO SECOND AMENDED AND RESTATED

REVOLVING CREDIT FACILITY AGREEMENT

     This THIRD AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT
(“Amendment”) is made effective as of the 3rd day of August, 2007 (the
“Amendment Effective Date”), by and between LENNOX INTERNATIONAL INC., a Delaware
corporation (the “Borrower”), BANK OF AMERICA, N.A. (“Bank of America”), as
Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”), and
the Lenders which are parties hereto.

W I T N E S S E T H :

     WHEREAS, the Borrower on July 8, 2005 entered into that certain Second Amended and Restated
Revolving Credit Facility Agreement, as amended by that certain First Amendment to Second Amended
and Restated Revolving Credit Facility Agreement, dated as of August 17, 2006, and as further
amended by that certain Second Amendment to Second Amended and Restated Revolving Credit Facility
Agreement, dated as of January 11, 2007 (as the same may be further amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), with the Administrative
Agent and the Lenders governing the loans described therein (collectively, the “Loan”);

     WHEREAS, to evidence the Loan, the Borrower executed certain promissory notes (collectively,
the “Notes”) dated of even date with the Credit Agreement and made payable to the order of
certain of the Lenders;

     WHEREAS, the Credit Agreement, the Guaranty, the Notes and all other documents, agreements,
certificates and instruments representing, evidencing or securing the Loan are collectively
referred to herein as the “Loan Documents”;

     WHEREAS, the Borrower and each of the Guarantors have requested that the Administrative Agent
and the Lenders acknowledge and consent in all respects to (a) the execution, delivery and
performance by the Borrower and the Guarantors of a three hundred sixty-four day unsecured credit
facility with Bank of America, N.A. as administrative agent, pursuant to which the Borrower may
obtain revolving credit loans in the aggregate principal amount not to exceed $300,000,000 at any
time outstanding for the purpose of repurchasing issued and outstanding shares of its common stock
(the “Bridge Credit Agreement”), (b) the execution, delivery and performance by the
Guarantors of a guaranty agreement unconditionally and irrevocably guaranteeing the prompt and
complete payment and performance of all of the obligations of the Borrower under the Bridge Credit
Agreement (the “Bridge Guaranty”), and (c) the consummation of the transactions
contemplated pursuant to the Bridge Credit Agreement and the Bridge Guaranty and such other
documents, agreements, instruments and certificates executed in connection with the Bridge Credit
Agreement and the Bridge Guaranty (the documents and agreements referred to in clauses (a) – (c)
above are collectively referred to hereinafter as the “Bridge Transaction Documents”);

 

 

     WHEREAS, the Administrative Agent and the Lenders have agreed to consent to the Bridge
Transaction Documents and the consummation of the transactions contemplated thereby and amend the
Credit Agreement for the purpose of providing the Borrower with the ability to repurchase an
additional amount of its issued and outstanding common stock upon the terms and conditions set
forth herein.

     NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and
agreements contained herein and in the Credit Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this
Agreement hereby agree as follows.

ARTICLE I.

Definitions and References

     1.1 Terms Defined in the Credit Agreement. Unless the context otherwise requires or
unless otherwise expressly defined herein, the terms defined in the Credit Agreement shall have the
same meanings whenever used in this Amendment.

ARTICLE II.

Amendments to Credit Agreement

     2.1 Defined Terms. Section 1.01 of the Credit Agreement is hereby amended by
adding thereto the following defined term in its appropriate alphabetical order:

     “‘Bridge Credit Facility’ means a three-hundred sixty-four day
revolving credit facility with Bank of America, N.A., as administrative agent, in an
aggregate principal amount not to exceed $300,000,000 at any time outstanding for
the purpose of repurchasing issued and outstanding shares of the Borrower’s common
stock.”

     2.2 Section 3.12. Section 3.12 of the Credit Agreement is hereby amended in
its entirety to read as follows:

     “Section 3.12. Use of Proceeds. The Borrower will apply the proceeds
of the Loans to refinance existing indebtedness, for capital expenditures, to make
acquisitions, for working capital and for other general corporate purposes,
including, without limitation, the repurchase of issued and outstanding shares of
its common stock. The Letters of Credit shall be issued to support transactions of
the Borrower and the Subsidiaries entered into in the ordinary course of business.”

     2.3 Section 3.15. Section 3.15 of the Credit Agreement is hereby amended in
its entirety to read as follows:

     “Section 3.15. Margin Regulations; Investment Company Act.

2

 

          (a) No part of the proceeds of any Borrowing or drawing under any Letter of
Credit, and no other extensions of credit hereunder, will be used for any purpose
that violates the provisions of Regulations T, U, or X of the Board. Following the
application of the proceeds of each Borrowing or drawing under each Letter of
Credit, not more than 25% of the value of the assets subject to the restrictions of
Section 5.13 (either of the Borrower only or of the Borrower and its
Subsidiaries on a consolidated basis) will be margin stock.

          (b) If requested by any Lender or the Administrative Agent, the Borrower will
execute and furnish to the Administrative Agent and each Lender a FR Form G-3 or FR
Form U-1, as applicable, referred to in Regulation U of the Board.

          (c) Neither the Borrower nor any Subsidiary is subject to regulation under the
Investment Company Act of 1940, as amended.”

     2.4 Section 5.12. Section 5.12 of the Credit Agreement is hereby amended by
(i) deleting the word “and” located at the end of clause (p) thereof, (ii) deleting the period
located at the end of clause (q) thereof and substituting in lieu thereof the phrase “; and”, and
(iii) adding to the end thereof a new clause (r) that reads as follows:

     “(r) Indebtedness of the Borrower and any Guarantee thereof by any Subsidiary
(other than the Insurance Subsidiary) under the Bridge Credit Facility.”

     2.5 Section 5.13. Section 5.13 of the Credit Agreement is hereby amended by
(i) adding to the end of the second parenthetical located in the lead in to Section 5.13
the phrase “but excluding any shares of the Borrower’s common stock repurchased by the Borrower”
and (ii) adding the following sentence to the end of Section 5.13: “For the avoidance of
doubt, any issued and outstanding common stock of the Borrower repurchased by the Borrower is not
deemed to be any property or asset of the Borrower for purposes of this Section 5.13, and
therefore, is not subject to the restrictions contained in this Section 5.13.”

     2.6 Section 5.14. Section 5.14 of the Credit Agreement is hereby amended in
its entirety to read as follows:

     “Restricted Payments. The Borrower will not, and will not permit any
of its Subsidiaries to declare or make, or incur any liability to declare or make,
any Restricted Payment, except: (a) Subsidiaries may declare and pay dividends
ratably with respect to the Equity Interests they have issued and (b) the Borrower
may declare and pay dividends and repurchase shares of its common stock during any
fiscal quarter as long as on the date of determination:

     (i) no Default or Event of Default exists or would result therefrom; and

     (ii) the sum of (A) the amount of the dividends or repurchases proposed to
be made in such fiscal quarter, plus (B) the aggregate amount of the

3

 

dividends and repurchases previously made by the Borrower in the same fiscal
quarter, and (C) the aggregate amount of all dividends and repurchases made in
the prior three fiscal quarters does not exceed an amount equal to the
greater of (1) fifty percent (50%) of Consolidated Net Income (calculated
for the four fiscal quarters then most recently ended prior to the date of
determination) or (2) $40,000,000;

provided, however, that in addition to the share repurchases
permitted by clause (b)(ii) above, the Borrower may make additional repurchases
of its issued and outstanding common stock in an aggregate amount not to exceed
the sum of (1) fifty percent (50%) of the principal amount of the Subordinated
Notes converted into common stock of the Borrower on or prior to October 6,
2005, plus (2) on or after August 17, 2006, $550,000,000.”

     2.7 Section 5.15. Subpart (c) of Section 5.15 of the Credit Agreement is
hereby amended in its entirety to read as follows:

     “(c) Consolidated Net Worth. The Borrower will not permit Consolidated
Net Worth as of any date to be less than the sum of (i) $396,624,000.00;
plus (ii) 50% of the sum of (A) its aggregate Consolidated Net Income (but
only if a positive number) for the period beginning April 1, 2005 and ending as of
the most recently completed fiscal quarter prior to the date of determination
minus (B) any non-recurring and non-cash charges not included in determining
such Consolidated Net Income under clause (g) of the definition thereof;
plus (iii) 100% of the net proceeds from the issuance of any Equity
Interests by the Borrower occurring after the Effective Date (including, or in
addition, any increase in equity attributable to the conversion of the Borrower’s
Subordinated Notes to common stock); minus (iv) the total aggregate amount
expended by the Borrower for the repurchase of shares of its common stock on or
after August 17, 2006 under the additional $550,000,000 exception provided for in
clause (2) of the proviso to Section 5.14.”

     2.8 Section 5.16. Section 5.16 of the Credit Agreement is hereby amended by
amending clause (i) to the proviso located therein to read as follows: “(i) the foregoing shall not
apply to restrictions and conditions imposed by law or by any Loan Document, the Senior Note
Purchase Agreements, Subordinated Notes, or any agreement, document, instrument or certificate
executed and delivered in connection with the Bridge Credit Facility;”.

ARTICLE III.

Conditions to Effectiveness; Representations; Warranties and Acknowledgements 

     3.1 Effective Date. This Amendment shall become effective as of the Amendment
Effective Date when and only when all of the following conditions precedent have been satisfied:

     (i) the Administrative Agent and the Lenders shall have received copies of all documents,
agreements, instruments, certificates or other evidence which the Administrative Agent, the

4

 

Lenders or their counsel may reasonably request in connection herewith, including, without
limitation, the following:

     (a) duly executed counterparts of this Amendment signed by the Borrower, the
Administrative Agent, and the Required Lenders; and

     (b) a duly executed counterpart of the Consent attached to this Amendment signed by all
of the Guarantors, and

     (ii) the Borrower shall have paid to each Lender who delivers a duly executed counterpart to
this Amendment a fully earned and nonrefundable amendment fee in an amount equal to five basis
points (.05%) of such Lender’s Commitment on the Amendment Effective Date.

     3.2 Representations and Warranties; Acknowledgments by the Borrower. Except as
modified hereby, the terms and provisions of the Credit Agreement and other Loan Documents are
ratified and confirmed and shall remain in full force and effect in accordance with their terms.
The Borrower hereby acknowledges, agrees and represents that (i) the Borrower is indebted to the
Lenders pursuant to the terms of the Notes and the Credit Agreement as amended hereby; (ii)
contemporaneously with the effectiveness of this Amendment, the representations and warranties of
the Borrower and the Guarantors contained in the Loan Documents are true and correct in all
material respects, except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they are true and correct in all material respects as of such
earlier date; (iii) no condition exists which presently constitutes a Default or an Event of
Default; and (iv) this Amendment and the Credit Agreement (as amended hereby) have been duly
authorized by all necessary organizational action of the Borrower and constitute legal, valid and
binding obligations of the Borrower, enforceable against the Borrower in accordance with their
respective terms.

ARTICLE IV.

Miscellaneous

     4.1 Reference to and Effect on the Loan Documents. 

     (a) Upon the effectiveness of this Amendment, on and after the Amendment Effective Date, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like
import referring to the Credit Agreement, and each reference in the other Loan Documents to “the
Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement as amended hereby.

     (b) Except as expressly amended, modified or supplemented by this Amendment, the Credit
Agreement and all of the other Loan Documents, are and shall continue to be in full force and
effect, enforceable against the Borrower in accordance with their respective terms, and are hereby
ratified and confirmed by the Borrower in all respects.

     (c) Except as expressly set forth herein, the execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of the

5

 

Administrative Agent or any Lender under any of the Loan Documents, nor constitute a waiver of
any provision of any of the Loan Documents.

     4.2 Consent to Bridge Transaction Documents. The Administrative Agent and the Lenders
party hereto hereby consent to (i) the execution, delivery and performance of the Bridge
Transaction Documents and the consummation of the transactions contemplated thereby and (ii) each
lender under the Bridge Credit Agreement becoming a “Lender” under the Intercreditor Agreement (and
the Bridge Credit Agreement being referred to in all respects as a “Credit Facility” thereunder)
upon the receipt by the Collateral Agent (as defined in the Intercreditor Agreement) of a duly
executed Supplement to Intercreditor Agreement substantially in the form of Attachment B to the
Intercreditor Agreement pursuant to Section 7.03 of the Intercreditor Agreement.

     4.3 Costs and Expenses. Contemporaneously with the execution and delivery hereof, the
Borrower shall pay, or cause to be paid, all costs and expenses incident to the preparation hereof
and the consummation of the transaction contemplated hereby, including, but not limited to,
reasonable fees and expenses of legal counsel to the Administrative Agent (which fees and expenses,
as to legal counsel of the Administrative Agent, shall be paid directly to legal counsel of the
Administrative Agent upon presentation of a bill for legal services rendered).

     4.4 Governing Law. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF TEXAS AND THE
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

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

     4.6 Time is of the Essence. Time is of the essence in the performance of the
covenants contained herein and in the Loan Documents.

     4.7 Binding Agreement. This Amendment shall be binding upon the successors and
assigns of the parties hereto; provided, however, the foregoing shall not be deemed or construed to
(i) permit, sanction, authorize or condone the assignment of all or any part of any interest in and
to the Borrower or any Guarantor except as expressly authorized in the Loan Documents, or

6

 

(ii) confer any right, title, benefit, cause of action or remedy upon any person or entity not
a party hereto, which such party would not or did not otherwise possess.

     4.8 Headings. The section headings hereof are inserted for convenience of reference
only and shall in no way alter, amend, define or be used in the construction or interpretation of
the text of such section.

     4.9 Construction. Whenever the context hereof so required, reference to the singular
shall include the plural and likewise, the plural shall include the singular; words denoting gender
shall be construed to mean the masculine, feminine or neuter, as appropriate; and specific
enumeration shall not exclude the general but shall be construed as cumulative of the general
recitation.

     4.10 Counterparts. This Amendment may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original and all of which taken together shall constitute but one and the
same agreement. Delivery of an executed counterpart by facsimile or other electronic means shall
be effective as delivery of an original executed counterpart of this Amendment.

     4.11 No Reliance. In executing this Amendment, the Borrower warrants and represents
that the Borrower is not relying on any statement or representation other than those in this
Amendment and the other Loan Documents and is relying upon its own judgment and advice of its
attorneys.

     4.12 ENTIRE AGREEMENT. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS COLLECTIVELY
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

[Signature Pages Follow]

7

 

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

	 	 	 	 	 
	 	BORROWER:

LENNOX INTERNATIONAL INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Gary A. Larson
 	 
	 	 	Gary A. Larson, 	 
	 	 	Vice President and
Treasurer 	 
	 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT

BANK OF AMERICA, N.A., in its capacity as

Administrative Agent for the Lenders

 	 
	 	By:  	/s/  Michael Brashler
 	 
	 	 	Michael Brashler 	 
	 	 	Vice President 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, as an 

Issuing Bank and as Swingline Lender

 	 
	 	By:  	/s/  Allison W. Connally
 	 
	 	 	Allison W. Connally 	 
	 	 	Vice President 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/  Brian McDougal
 	 
	 	 	Name:  	Brian McDougal 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ W. Bradley Hamilton
 	 
	 	 	Name:  	W. Bradley Hamilton 	 
	 	 	Title:  	Director 	 
	 

Signature Page – Third Amendment to Second Amended and Restated Credit Facility Agreement

 

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. 

 	 
	 	By:  	/s/ Janet Wheeler
 	 
	 	 	Name:  	Janet Wheeler 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	 	 
	 	By:  	             /s/ Douglas M. Barnell
 	 
	 	 	Name:  	Douglas M. Barnell 	 
	 	 	Title:  	Manager, Southwest Corporate 	 
	 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ Jeff Boeckman
 	 
	 	 	Name:  	Jeff Boeckman 	 
	 	 	Title:  	Vice President 	 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND plc

 	 
	 	By:  	/s/ Robert W. Casey, Jr.
 	 
	 	 	Name:  	Robert Casey 	 
	 	 	Title:  	Managing Director 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NA

 	 
	 	By:  	/s/
Jennifer L. Norris 	 
	 	 	Name:  	Jennifer L. Norris	 
	 	 	Title:  	 Senior
Vice President	 

	 	 	 	 	 
	 	BANK OF TEXAS, N.A.

 	 
	 	By:  	/s/  Bianca A. Gulberti
 	 
	 	 	Name:  	Bianca A Gulberti 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/  Derek S. Roudebush
 	 
	 	 	Name:  	Derek S. Roudebush 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page – Third Amendment to Second Amended and Restated Credit Facility Agreement

 

 

	 	 	 	 	 
	 	COMPASS BANK 

 	 
	 	By:  	/s/ Thomas Blake
 	 
	 	 	Name:  	Thomas Blake 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/  Peter J. Hallan
 	 
	 	 	Name:  	Peter J. Hallan 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/  William B. Dridge
 	 
	 	 	Name:  	William B. Dridge 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/  Melinda Jackson
 	 
	 	 	Name:  	Melinda Jackson 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/  David B. Julie
 	 
	 	 	Name:  	David B. Julie 	 
	 	 	Title:  	Associate Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                  /s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 

Signature Page – Third Amendment to Second Amended and Restated Credit Facility Agreement

 

 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH 

 	 
	 	By:  	/s/  Robert Smith
 	 
	 	 	Name:  	Robert Smith 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                   /s/  Robert Nelson
 	 
	 	 	Name:  	Robert Nelson 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	FIRST TENNESSEE BANK NATIONAL

ASSOCIATION

 	 
	 	By:  	/s/
Stephen R. Deaton 
 	 
	 	 	Name:  	Stephen R. Deaton 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	REGIONS BANK

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK

 	 
	 	By:  	/s/  Mary E. Pohl
 	 
	 	 	Name:  	Mary E Pohl 	 
	 	 	Title:  	Vice President 	 
	 

 

CONSENT

The undersigned, as Guarantors under that certain Second Amended and Restated Subsidiary Guaranty
Agreement, dated as of July 8, 2005 (the “Subsidiary Guaranty”) in favor of Bank of
America, N.A., as Administrative Agent (the “Administrative Agent”) for the Lenders parties
to the Credit Agreement referred to in the Third Amendment to Second Amended and Restated Credit
Facility Agreement (the “Amendment”), dated as of August ___, 2007, among Lennox
International Inc., as Borrower, the lenders party thereto (the “Lenders”) and the
Administrative Agent, hereby consent to the execution and delivery of the Amendment, and hereby
confirm and agree that the Subsidiary Guaranty is, and shall continue to be, in full force and
effect and is hereby ratified and confirmed in all respects except that, on and after the effective
date of the Amendment, each reference in the Subsidiary Guaranty to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be
a reference to the Credit Agreement as amended by the Amendment.

	 	 	 	 	 
	 	GUARANTORS:

LENNOX INDUSTRIES INC.

ALLIED AIR ENTERPRISES INC.

SERVICE EXPERTS INC.

LENNOX GLOBAL LTD.

 	 
	 	By:  	/s/ Gary A. Larson
 	 
	 	 	Gary A. Larson 	 
	 	 	Treasurer
	 
	 
	 	
On behalf of each of the Guarantors
identified above 	 
	 

Signature Page – Third Amendment to Second Amended and Restated Credit Facility Agreement

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