Document:

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                                                                   Exhibit 10.14

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                            MASTER LEASE AGREEMENT

                           Dated as of June 22, 2001

                                    between

                  ATLANTIC FINANCIAL GROUP, LTD., as Lessor,

                                      and

                              HUGHES SUPPLY, INC.
                                      AND
            CERTAIN SUBSIDIARIES OF HUGHES SUPPLY, INC., as Lessees

                  ___________________________________________

                                                               [SYNTHETIC LEASE]

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<TABLE>
<CAPTION>
                                    TABLE OF CONTENTS
                                    (Lease Agreement)
                                                                                           Page
<S>                                                                                        <C>
ARTICLE I.           DEFINITIONS.........................................................     1

ARTICLE II.          LEASE OF LEASED PROPERTY............................................     1
    2.1              Acceptance and Lease of Property....................................     1
    2.2              Acceptance Procedure................................................     2

ARTICLE III.         RENT................................................................     2
    3.1              Basic Rent..........................................................     2
    3.2              Supplemental Rent...................................................     3
    3.3              Method of Payment...................................................     3
    3.4              Late Payment........................................................     3
    3.5              Net Lease; No Setoff, Etc...........................................     3
    3.6              Certain Taxes.......................................................     4
    3.7              Utility Charges.....................................................     5

ARTICLE IV.          WAIVERS.............................................................     5

ARTICLE V.           LIENS; EASEMENTS; PARTIAL CONVEYANCES...............................     6

ARTICLE VI.          MAINTENANCE AND REPAIR;ALTERATIONS, MODIFICATIONS AND ADDITIONS.....     8
    6.1              Maintenance and Repair; Compliance With Law.........................     8
    6.2              Alterations.........................................................     8
    6.3              Title to Alterations................................................     9

ARTICLE VII.         USE.................................................................     9

ARTICLE VIII.        INSURANCE...........................................................     9

ARTICLE IX.          ASSIGNMENT AND SUBLEASING...........................................    11

ARTICLE X.           LOSS, DESTRUCTION, CONDEMNATION OR DAMAGE...........................    11
    10.1             Event of Loss.......................................................    11
    10.2             Event of Taking.....................................................    12
    10.3             Casualty............................................................    13
    10.4             Condemnation........................................................    13
    10.5             Verification of Restoration and Rebuilding..........................    13
    10.6             Application of Payments.............................................    14
</TABLE>
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<TABLE>
<S>                                                                                                <C>
    10.7             Prosecution of Awards.......................................................  14
    10.8             Application of Certain Payments Not Relating to an Event of Taking..........  15
    10.9             Other Dispositions..........................................................  15
    10.10            No Rent Abatement...........................................................  15

ARTICLE XI.          INTEREST CONVEYED TO LESSEES................................................  16

ARTICLE XII.         EVENTS OF DEFAULT...........................................................  16

ARTICLE XIII.        ENFORCEMENT.................................................................  20
    13.1             Remedies....................................................................  20
    13.2             Remedies Cumulative; No Waiver; Consents....................................  22
    13.3             Purchase Upon an Event of Default...........................................  22
    Section 13.4     Limitation on Liability.....................................................  22

ARTICLE XIV.         SALE, RETURN OR PURCHASE OF LEASED PROPERTY; RENEWAL........................  23
    14.1             Lessee's Option to Purchase.................................................  23
    14.2             Conveyance to Lessee........................................................  23
    14.3             [Reserved]..................................................................  24
    14.4             Determination of Purchase Price.............................................  24
    14.5             Purchase Procedure..........................................................  24
    14.6             Option to Remarket..........................................................  25
    14.7             Rejection of Sale...........................................................  27
    14.8             Return of Leased Property...................................................  28
    14.9             Renewal.....................................................................  28

ARTICLE XV.          LESSEE'S EQUIPMENT..........................................................  29

ARTICLE XVI.         RIGHT TO PERFORM FOR LESSEE.................................................  29

ARTICLE XVII.        MISCELLANEOUS...............................................................  30
    17.1             Reports.....................................................................  30
    17.2             Binding Effect; Successors and Assigns; Survival............................  30
    17.3             Quiet Enjoyment.............................................................  30
    17.4             Notices.....................................................................  30
    17.5             Severability................................................................  31
    17.6             Amendment; Complete Agreements..............................................  32
    17.7             Construction................................................................  32
    17.8             Headings....................................................................  32
    17.9             Counterparts................................................................  32
    17.10            GOVERNING LAW...............................................................  32
    17.11            Discharge of Lessee's Obligations by its Subsidiaries or Affiliates.........  32
</TABLE>
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<TABLE>
<S>                                                                                          <C>
    17.12            Liability of Lessor Limited...........................................  33
    17.13            Estoppel Certificates.................................................  33
    17.14            No Joint Venture......................................................  33
    17.15            No Accord and Satisfaction............................................  33
    17.16            No Merger.............................................................  34
    17.17            Survival..............................................................  34
    17.18            Chattel Paper.........................................................  34
    17.19            Time of Essence.......................................................  34
    17.20            Recordation of Lease..................................................  34
    17.21            Investment of Security Funds..........................................  34
    17.22            Ground Leases.........................................................  35
    17.23            Land and Building.....................................................  35
    17.24            Joint and Several.....................................................  35
    17.25            IDB Documentation.....................................................  35
</TABLE>
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APPENDICES AND EXHIBITS
-----------------------

APPENDIX A     Defined Terms

EXHIBIT A      Lease Supplement

                                     (iv)
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     THIS MASTER LEASE AGREEMENT (as from time to time amended or supplemented,
this "Lease"), dated as of June 22, 2001, is among ATLANTIC FINANCIAL GROUP,
      -----
LTD., a Texas limited partnership (together with its successors and assigns
hereunder, the "Lessor"), as Lessor, and HUGHES SUPPLY, INC., a Florida
                ------
corporation ("Hughes"), and certain Subsidiaries of Hughes hereafter parties
              ------
hereto (individually, with its successors and permitted assigns hereunder, each
a "Lessee" and collectively, the "Lessees"), as Lessees.
   ------                         -------

                             PRELIMINARY STATEMENT

     A.  Lessor will purchase, or acquire a leasehold interest in, from one or
more third parties designated by the Construction Agent, on a Closing Date,
certain parcels of real property to be specified by the Construction Agent,
together with any improvements thereon.

     B.  Lessor desires to lease to each Lessee, and each Lessee desires to
lease from Lessor, certain of such properties as described on the Lease
Supplement(s) to which such Lessee is a party.

     C.  If applicable, the Construction Agent will, on behalf of Lessor, cause
to be constructed, certain improvements on such parcels of real property which
as constructed will be the property of Lessor and will become part of such
property subject to the terms of this Lease.

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

                                  ARTICLE I.
                                  DEFINITIONS
                                  -----------

     Terms used herein and not otherwise defined shall have the meanings
assigned thereto in Appendix A hereto for all purposes hereof.
                    ----------

                                  ARTICLE II.
                           LEASE OF LEASED PROPERTY
                           ------------------------

     Section II.1  Acceptance and Lease of Property.  On each Closing Date for
                   --------------------------------
Land, Lessor, subject to the satisfaction or waiver of the conditions set forth
in Section 3 of the Master Agreement, hereby agrees to accept delivery on such
Closing Date of such Land pursuant to the terms of the Master Agreement,
together with any Building or Buildings and other improvements thereon, and
simultaneously to lease to the related Lessee hereunder for the Lease Term,
Lessor's interest in such Land and in such Building or Buildings and other
improvements, together with

                                       1
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any Building which thereafter may be constructed thereon pursuant to the
Construction Agency Agreement, and such related Lessee hereby agrees, expressly
for the direct benefit of Lessor, commencing on such Closing Date for the Lease
Term, to lease from Lessor Lessor's interest in such Land to be delivered on
such Closing Date, together with, in the case of Land, Lessor's interest in the
Building or Buildings and other improvements thereon and/or which thereafter may
be constructed thereon pursuant to the Construction Agency Agreement. This Lease
shall be in full force and effect with respect to each Leased Property on the
Closing Date therefor; provided, however, that, notwithstanding anything herein
                       --------  -------
to the contrary, with respect to any Leased Property subject to the Construction
Agency Agreement, the Lessee shall make payments hereunder with respect to such
Leased Property (other than any payments due under Section 14.1 hereof or under
                                                   ------------
Section 3.3, 3.4 or Article V of the Construction Agency Agreement) during the
Construction Term therefor from the proceeds of Fundings pursuant to, and
subject to the terms and conditions of, the Master Agreement.

     Section II.2  Acceptance Procedure.  Lessor hereby authorizes one or more
                   --------------------
employees of the related Lessee, to be designated by such Lessee, as the
authorized representative or representatives of Lessor to accept delivery on
behalf of Lessor of that Leased Property identified on the applicable Funding
Request.  Each Lessee hereby agrees that such acceptance of delivery by such
authorized representative or representatives and the execution and delivery by
such Lessee on each Closing Date for property to be leased hereunder of a Lease
Supplement in substantially the form of Exhibit A hereto (appropriately
                                        ---------
completed) shall, without further act, constitute the irrevocable acceptance by
such Lessee of that Leased Property which is the subject thereof for all
purposes of this Lease and the other Operative Documents on the terms set forth
therein and herein, and that such Leased Property, together with, in the case of
Land, any and all Buildings and other improvements thereon and/or to be
constructed thereon pursuant to the Construction Agency Agreement, shall be
deemed to be included in the leasehold estate of this Lease and shall be subject
to the terms and conditions of this Lease as of such Closing Date.  The demise
and lease of each parcel of Land and each Building pursuant to this Section 2.2
                                                                    -----------
shall include any additional right, title or interest in each such parcel of
Land and each such Building which may at any time be acquired by Lessor, the
intent being that all right, title and interest of Lessor in and to each such
parcel of Land and each such Building shall at all times be demised and leased
to the related Lessee hereunder.

                                 ARTICLE III.
                                     RENT
                                     ----

     Section III.1  Basic Rent.  Beginning with and including the first Payment
                    ----------
Date occurring after the Initial Closing Date, each Lessee shall pay to the
Agent the Basic Rent for the Leased Properties subject to a Lease Supplement to
which such Lessee is a party, in installments, payable in arrears on each
Payment Date during the Lease Term, provided that during the Construction Term
                                    --------
for a Leased Property, Basic Rent with respect to such Leased Property shall be
capitalized pursuant to Section 2.3(c) of the Master Agreement.

                                       2
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     Section III.2  Supplemental Rent.  Each Lessee shall pay to the Agent, or
                    -----------------
to whomever shall be entitled thereto as expressly provided herein or in any
other Operative Document, any and all Supplemental Rent on the date the same
shall become due and payable and in the event of any failure on the part of such
Lessee to pay any Supplemental Rent, the Agent shall have all rights, powers and
remedies provided for herein or by law or in equity or otherwise in the case of
nonpayment of Basic Rent.  All Supplemental Rent to be paid pursuant to this
Section 3.2 shall be payable in the type of funds and in the manner set forth in
-----------
Section 3.3.
-----------

     Section III.3  Method of Payment.  Basic Rent shall be paid to the Agent,
                    -----------------
and Supplemental Rent (including amounts due under Article XIV hereof) shall be
                                                   -----------
paid to the Agent (or to such Person as may be entitled thereto) or, in each
case, to such Person as the Agent (or such other Person) shall specify in
writing to the related Lessee, and at such place as the Agent (or such other
Person) shall specify in writing to the related Lessee.  Each payment of Rent
(including payments under Article XIV hereof) shall be made by the Lessees prior
                          -----------
to 12:00 p.m. (noon) Atlanta, Georgia time at the place of payment in funds
consisting of lawful currency of the United States of America which shall be
immediately available on the scheduled date when such payment shall be due,
unless such scheduled date shall not be a Business Day, in which case such
payment shall be made on the next succeeding Business Day.  The Agent agrees, at
a Lessee's request, to arrange for automated clearing house debits from such
Lessee's accounts for payments due hereunder.

     Section III.4  Late Payment.  If any Basic Rent shall not be paid on the
                    ------------
date when due, the related Lessee shall pay to the Agent, as Supplemental Rent,
interest (to the maximum extent permitted by law) on such overdue amount from
and including the due date thereof to but excluding the Business Day of payment
thereof at the Overdue Rate.

     Section III.5  Net Lease; No Setoff, Etc.  This Lease is a net lease and
                    -------------------------
notwithstanding any other provision of this Lease, each Lessee shall pay all
Basic Rent and Supplemental Rent, and all costs, charges, assessments and other
expenses foreseen or unforeseen, for which such Lessee is or shall become liable
by reason of such Lessee's estate, right, title or interest in the Leased
Properties, or that are connected with or arise out of the acquisition (except
the initial costs of purchase by Lessor of its interest in any Leased Property,
which costs, subject to the terms of the Master Agreement, shall be funded by
the Funding Parties pursuant to the Master Agreement), construction (except
costs to be funded under the Construction Agency Agreement), installation,
possession, use, occupancy, maintenance, ownership, leasing, repairs and
rebuilding of, or addition to, the Leased Properties or any portion thereof, and
any other amounts payable hereunder and under the other Operative Documents
without counterclaim, setoff, deduction or defense and without abatement,
suspension, deferment, diminution or reduction, and each Lessee's obligation to
pay all such amounts throughout the Lease Term, including the Construction Term,
is absolute and unconditional. The obligations and liabilities of each Lessee
hereunder shall in no way be released, discharged or otherwise affected for any
reason, including without limitation: (a) any defect in the condition,
merchantability, design, quality or fitness for

                                       3
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use of any Leased Property or any part thereof, or the failure of any Leased
Property to comply with all Applicable Law, including any inability to occupy or
use any Leased Property by reason of such non-compliance; (b) any damage to,
removal, abandonment, salvage, loss, contamination of or Release from, scrapping
or destruction of or any requisition or taking of any Leased Property or any
part thereof; (c) any restriction, prevention or curtailment of or interference
with any use of any Leased Property or any part thereof including eviction; (d)
any defect in title to or rights to any Leased Property or any Lien on such
title or rights or on any Leased Property; (e) any change, waiver, extension,
indulgence or other action or omission or breach in respect of any obligation or
liability of or by Lessor, the Agent or any Lender; (f) any bankruptcy,
insolvency, reorganization, composition, adjustment, dissolution, liquidation or
other like proceedings relating to any Lessee, Lessor, any Lender, the Agent or
any other Person, or any action taken with respect to this Lease by any trustee
or receiver of any Lessee, Lessor, any Lender, the Agent, any Ground Lessor or
any other Person, or by any court, in any such proceeding; (g) any claim that
any Lessee has or might have against any Person, including without limitation,
Lessor, any vendor, manufacturer, contractor of or for any Leased Property or
any part thereof, the Agent, any Ground Lessor, any Governmental Authority, or
any Lender; (h) any failure on the part of Lessor to perform or comply with any
of the terms of this Lease, any other Operative Document, any applicable IDB
Documentation or of any other agreement; (i) any invalidity or unenforceability
or illegality or disaffirmance of this Lease against or by any Lessee or any
provision hereof or any of the other Operative Documents or any provision of any
thereof whether or not related to the Transaction; (j) the impossibility or
illegality of performance by any Lessee, Lessor or both; (k) any action by any
court, administrative agency or other Governmental Authority; (l) any
restriction, prevention or curtailment of or interference with the Construction
or any use of any Leased Property or any part thereof; or (m) any other
occurrence whatsoever, whether similar or dissimilar to the foregoing, whether
or not any Lessee shall have notice or knowledge of any of the foregoing. Except
as specifically set forth in Articles XIV or X of this Lease, this Lease shall
                             ------------    -
be noncancellable by each Lessee in any circumstance whatsoever and each Lessee,
to the extent permitted by Applicable Law, waives all rights now or hereafter
conferred by statute or otherwise to quit, terminate or surrender this Lease, or
to any diminution, abatement or reduction of Rent payable by such Lessee
hereunder, provided that each Lessee shall retain the right to pursue a cause of
           --------
action against Lessor for damages for a breach by Lessor of its obligations
under the Operative Documents. Each payment of Rent made by a Lessee hereunder
shall be final and such Lessee shall not seek or have any right to recover all
or any part of such payment from Lessor, the Agent, any Lender or any party to
any agreements related thereto for any reason whatsoever. Each Lessee assumes
the sole responsibility for the condition, use, operation, maintenance, and
management of the Leased Properties leased by it and Lessor shall have no
responsibility in respect thereof and shall have no liability for damage to the
property of either any Lessee or any subtenant of any Lessee on any account or
for any reason whatsoever, other than solely by reason of Lessor's willful
misconduct or gross negligence (other than gross negligence or willful
misconduct imputed to Lessor as a result of any action or inaction on the part
of a Lessee).

                                       4
<PAGE>

     Section III.6  Certain Taxes.  Without limiting the generality of Section
                    -------------                                      -------
3.5, each Lessee agrees to pay when due all real estate taxes, personal property
---
taxes, gross sales taxes, including any sales or lease tax imposed upon the
rental payments hereunder or under a sublease, occupational license taxes, water
charges, sewer charges, assessments of any nature and all other governmental
impositions and charges of every kind and nature whatsoever (the "tax(es)"),
                                                                  -------
when the same shall be due and payable without penalty or interest; provided,
                                                                    --------
however, that this Section shall not apply to any of the taxes covered by the
-------
exclusion described in Section 7.4(b) of the Master Agreement.  It is the
intention of the parties hereto that, insofar as the same may lawfully be done,
Lessor shall be, except as specifically provided for herein, free from all
expenses in any way related to the Leased Properties and the use and occupancy
thereof.  Any tax relating to a fiscal period of any taxing authority falling
partially within and partially outside the Lease Term, shall be apportioned and
adjusted between Lessor and the related Lessee.  Each Lessee covenants to
furnish Lessor and the Agent, upon the Agent's written request, within forty-
five (45) days after the last date when any tax must be paid by such Lessee as
provided in this Section 3.6, copies of official receipts of the appropriate
                 -----------
taxing, authority or other proof satisfactory to Lessor, evidencing the payment
thereof.

     So long as no Event of Default has occurred and is continuing, the related
Lessee may defer payment of a tax so long as the validity or the amount thereof
is contested by such Lessee with diligence and in good faith; provided, however,
                                                              --------  -------
that such Lessee shall pay the tax in sufficient time to prevent delivery of a
tax deed.  Such contest shall be at the related Lessee's sole cost and expense.
Each Lessee covenants to indemnify and save harmless Lessor, the Agent and each
Lender from any actual and reasonable costs or expenses incurred by Lessor, the
Agent or any Lender as a result of such contest, which indemnification shall
survive the termination of this Lease; provided that neither the Agent nor any
                                       --------
Lender shall be entitled to claim any indemnity against any Lessee pursuant to
this sentence with respect to any Construction Land Interest during the
Construction Term therefor.

     Section III.7  Utility Charges.  Each Lessee agrees to pay or cause to be
                    ---------------
paid as and when the same are due and payable all charges for gas, water, sewer,
electricity, lights, heat, power, telephone or other communication service and
all other utility services used, rendered or supplied to, upon or in connection
with the Leased Properties leased by it.

                                  ARTICLE IV.
                                    WAIVERS
                                    -------

                                       5
<PAGE>

     During the Lease Term, Lessor's interest in the Leased Properties,
including the Equipment, the Building(s) (whether or not completed) and the
Land, is demised and let by Lessor "AS IS" subject to (a) the rights of any
parties in possession thereof, (b) the state of the title thereto existing at
the time Lessor acquired its interest in the Leased Properties, (c) any state of
facts which an accurate survey or physical inspection might show (including the
survey delivered on the related Closing Date), (d) all Applicable Law, and (e)
any violations of Applicable Law which may exist upon or subsequent to the
commencement of the Lease Term. EACH LESSEE ACKNOWLEDGES THAT, ALTHOUGH LESSOR
WILL OWN AND HOLD TITLE TO THE LEASED PROPERTIES, LESSOR IS NOT A MANUFACTURER
OF, OR DEALER IN ANY LEASED PROPERTY, AND IS NOT RESPONSIBLE FOR THE DESIGN,
DEVELOPMENT, BUDGETING AND CONSTRUCTION OF THE BUILDING(S) OR ANY ALTERATIONS.
NEITHER LESSOR, THE AGENT NOR ANY LENDER HAS MADE OR SHALL BE DEEMED TO HAVE
MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OR SHALL BE DEEMED TO
HAVE ANY LIABILITY WHATSOEVER AS TO THE VALUE, MERCHANTABILITY, TITLE,
HABITABILITY, CONDITION, DESIGN, OPERATION, OR FITNESS FOR USE OF THE LEASED
PROPERTIES (OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION OR WARRANTY
WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASED PROPERTIES (OR ANY
PART THEREOF), ALL SUCH WARRANTIES BEING HEREBY DISCLAIMED, AND NEITHER LESSOR,
THE AGENT NOR ANY LENDER SHALL BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT
DEFECT THEREIN OR THE FAILURE OF ANY LEASED PROPERTY, OR ANY PART THEREOF, TO
COMPLY WITH ANY APPLICABLE LAW, except that Lessor hereby represents and
warrants that each Leased Property is and shall be free of Lessor Liens. As
between Lessor and the Lessees, each related Lessee has been afforded full
opportunity to inspect each Leased Property, is satisfied with the results of
its inspections of such Leased Property and is entering into this Lease solely
on the basis of the results of its own inspections and all risks incident to the
matters discussed in the two preceding sentences, as between Lessor, the Agent
or the Lenders on the one hand, and the Lessees, on the other, are to be borne
by the Lessees, except for the foregoing representation and warranty of Lessor
relative to the absence of Lessor Liens. The provisions of this Article IV have
                                                                ----------
been negotiated, and, except to the extent otherwise expressly stated, the
foregoing provisions are intended to be a complete exclusion and negation of any
representations or warranties by Lessor, the Agent or the Lenders, express or
implied, with respect to the Leased Properties, that may arise pursuant to any
law now or hereafter in effect, or otherwise.

                                       6
<PAGE>

                                  ARTICLE V.
                     LIENS; EASEMENTS; PARTIAL CONVEYANCES
                     -------------------------------------

     Each Lessee shall, within thirty (30) days following knowledge thereof,
discharge or bond over any Lien on or with respect to any Leased Property, the
title thereto, or any interest therein, including any Liens which arise out of
the possession, use, occupancy, construction, repair or rebuilding of any Leased
Property or by reason of labor or materials furnished or claimed to have been
furnished to a Lessee, or any of its contractors or agents or Alterations
constructed by a Lessee, except, in all cases, Permitted Liens or Lessor Liens.

     Notwithstanding the foregoing paragraph, at the request of a Lessee, Lessor
shall, from time to time during the Lease Term and upon reasonable advance
written notice from such Lessee, and within fifteen (15) days of receipt of the
materials specified in the next succeeding sentence, consent to and join in any
(i) grant of easements, licenses, rights of way and other rights in the nature
of easements, including, without limitation, utility easements to facilitate
Lessees' use, development and construction of the Leased Properties, (ii)
release 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 the Building(s)
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)
execution of agreements for ingress and egress and amendments to any covenants
and restrictions affecting the Land or the Building(s) or any portion thereof
and (v) request to any Governmental Authority for platting or subdivision or
replatting or resubdivision approval with respect to the Land or any portion
thereof or any parcel of land of which the Land or any portion thereof forms a
part or a request for rezoning or any variance from zoning or other governmental
requirements.  Lessor's obligations pursuant to the preceding sentence shall be
subject to the requirements that:

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

          (b)  the requesting Lessee shall have delivered to Lessor and Agent a
certificate of a Responsible Officer of such Lessee stating that

               (i)  such action will not cause any Leased Property, the Land or
     any Building or any portion thereof to fail to comply in any material
     respect with the provisions of this Lease or any other Operative Documents
     or any applicable IDB Documentation, or in any material respect with
     Applicable Law; and

                                       7
<PAGE>

               (ii) such action will not materially reduce the Fair Market Sales
     Value, utility or useful life of any Leased Property, the Land or any
     Building nor Lessor's interest therein; and

          (c)  in the case of any release or conveyance, if Lessor, the Agent or
any Lender so reasonably requests, the requesting Lessee will cause to be issued
and delivered to Lessor and the Agent by the Title Insurance Company an
endorsement to the Title Policy which shall revise the insured legal description
to delete the released property, and shall indicate that the Title Policy is in
full force and effect at the original policy amount.

     In addition to the foregoing, the related Lessee may arrange for a sale of
a portion of the Leased Property located at the southeast corner of N.W. 108th
Avenue and N.W. 91st Terrace, Miami, Florida and Lessor shall execute such
documents and instruments as may be requested by such Lessee to effect such
sale, provided that all of the following conditions are met: (i) after giving
      --------
effect to such sale, the Leased Property complies with all Applicable Laws
(including all zoning laws and regulations) and all applicable insurance
requirements, (ii) after giving effect to such sale, such Leased Property has
available all services of public facilities and other utilities, together with
all means of egress and ingress, to and from such Leased Property, necessary for
the use and operation of such Leased Property for its intended purpose, (iii)
the net proceeds of such sale shall be at least equal to the diminution in the
Fair Market Sales Value of such Leased Property resulting from such sale, and
shall be applied to reduce the Funded Amounts (on a pro rata basis, among the
Funding Parties) related thereto, (iv) such sale shall be on an "as is, where
is" basis, without representation or recourse on the part of Lessor, (v) the
related Lessee shall pay, or shall promptly reimburse the Agent and the Funding
Parties for, all out of pocket costs and expenses, including legal fees and
disbursements, incurred by any of them in connection with such sale, and (vi)
the related Lessee shall deliver a certificate of a Responsible Officer to the
effect that the foregoing conditions have been satisfied and such other
certificates and documents as the Agent or any Funding Party shall reasonably
request.

                                       8
<PAGE>

                                  ARTICLE VI.
                            MAINTENANCE AND REPAIR;
                   ALTERATIONS, MODIFICATIONS AND ADDITIONS
                   ----------------------------------------

     Section VI.1  Maintenance and Repair; Compliance With Law.  Each Lessee,
                   -------------------------------------------
at its own expense, shall at all times (a) maintain each Leased Property leased
by it in good repair and condition (subject to ordinary wear and tear), in
accordance with prudent industry standards and, in any event, in no less a
manner as other similar property owned or leased by such Lessee or its
Affiliates, (b) make all Alterations in accordance with, and maintain (whether
or not such maintenance requires structural modifications or Alterations) and
operate and otherwise keep each Leased Property in compliance in all material
respects with, all Applicable Laws and insurance requirements, and (c) make all
repairs, replacements and renewals of each Leased Property or any part thereof
which may be required to keep such Leased Property in the condition required by
the preceding clauses (a) and (b).  Each Lessee shall perform the foregoing
              -----------     ---
maintenance obligations regardless of whether any Leased Property is occupied or
unoccupied.  Each Lessee waives any right that it may now have or hereafter
acquire to (i) require Lessor, the Agent or any Lender to maintain, repair,
replace, alter, remove or rebuild all or any part of any Leased Property or (ii)
make repairs at the expense of Lessor, the Agent or any Lender pursuant to any
Applicable Law or other agreements or otherwise.  NEITHER LESSOR, THE AGENT NOR
ANY LENDER SHALL BE PERSONALLY LIABLE TO ANY LESSEE OR TO ANY CONTRACTORS,
SUBCONTRACTORS, LABORERS, MATERIALMEN, SUPPLIERS OR VENDORS FOR SERVICES
PERFORMED OR MATERIAL PROVIDED ON OR IN CONNECTION WITH ANY LEASED PROPERTY OR
ANY PART THEREOF.  Neither Lessor, the Agent nor any Lender shall be required to
maintain, alter, repair, rebuild or replace any Leased Property in any way.

     Section VI.2  Alterations.  Each Lessee may, without the consent of Lessor,
                   -----------
at such Lessee's own cost and expense, make Alterations which do not diminish
the value, utility or useful life of any Leased Property.

     Section VI.3  Title to Alterations.  Title to all Alterations shall without
                   --------------------
further act vest in Lessor (subject to each Lessee's right to remove trade
fixtures, personal property and equipment which do not constitute Alterations
and which were not acquired with funds advanced by Lessor or any Lender) and
shall be deemed to constitute a part of the Leased Properties and be subject to
this Lease.

                                       9
<PAGE>

                                 ARTICLE VII.
                                      USE
                                      ---

     Each Lessee may use each Leased Property leased by it or any part thereof
for any lawful purpose, and in a manner consistent with the standards applicable
to properties of a similar nature in the geographic area in which such Leased
Property is located, provided that such use does not materially adversely affect
                     --------
the Fair Market Sales Value, utility, remaining useful life or residual value of
such Leased Property, and does not materially violate or conflict with, or
constitute or result in a material default under, any Applicable Law or any
insurance policy required hereunder.  In the event that any use of any of the
Leased Property changes the character or original intended use of such Leased
Property and the Lessees do not purchase the Leased Properties at the end of the
Lease Term, the related Lessee, upon request of Lessor, shall restore such
Leased Property to its general character and intended use on the Closing Date or
Completion Date therefor, ordinary wear and tear excepted.  No Lessee shall
commit or permit any waste of any Leased Property or any material part thereof.

                                 ARTICLE VIII.
                                   INSURANCE
                                   ---------

          The provisions of this Article VIII shall apply to Leased Properties
                                 ------------
that are not then subject to the Construction Agency Agreement.  For any Leased
Property subject to the Construction Agency Agreement, the Lessee shall maintain
insurance in accordance with Section 2.9 of the Construction Agency Agreement.

          (a)  At any time during which any part of any Building or any
Alteration is under construction and as to any part of any Building or any
Alteration under construction, the related Lessee shall maintain, or cause to be
maintained, at its sole cost and expense, as a part of its blanket policies or
otherwise, "all risks" non-reporting completed value form of builder's risk
insurance.

          (b)  During the Lease Term, each Lessee shall maintain, at its sole
cost and expense, as a part of its blanket policies or otherwise, insurance
against loss or damage to any Building or any item of equipment included in the
Leased Property by fire and other risks, on terms and in amounts no less
favorable than insurance covering other similar properties or equipment owned or
leased by a Lessee, but in no event less than the replacement cost of such
Building or item of equipment included in the Leased Property, as the case may
be, from time to time.

          (c)  During the Lease Term, each Lessee shall maintain, at its sole
cost and expense, commercial general liability insurance with respect to such
Lessee's use, operation and

                                      10
<PAGE>

occupancy of the Leased Properties. Such insurance shall be on terms and in
amounts that are no less favorable than insurance maintained by a Lessee or its
Affiliates with respect to similar properties or equipment that it owns or
leases, but in no event less than $1,000,000 general liability, plus $5,000,000
liability umbrella coverage, per occurrence. Such insurance policies shall also
provide that each Lessee's insurance shall be considered primary insurance.
Nothing in this Article VIII shall prohibit Lessor, the Agent or any Lender from
                ------------
carrying at its own expense other insurance on or with respect to the Leased
Properties, provided that any insurance carried by Lessor, the Agent or any
            --------
Lender shall not prevent any Lessee from carrying the insurance required hereby.

          (d)  Each policy of insurance maintained by a Lessee pursuant to
clauses (a) and (b) of this Article VIII shall provide that all insurance
-----------     ---         ------------
proceeds in respect of any loss or occurrence shall be adjusted by, and all
insurance proceeds shall be paid to, such Lessee, except if, and for so long as
an Event of Default exists, all losses shall be adjusted solely by, and all
insurance proceeds shall be paid solely to, the Agent (or Lessor if the Loans
have been fully paid) for application pursuant to this Lease.

          (e)  On the Closing Date for each parcel of Land and on each
anniversary of the related policy date each Lessee shall furnish Lessor with
certificates showing the insurance required under this Article VIII to be in
                                                       ------------
effect and naming Lessor, the Agent and the Lenders as additional insureds.
Such certificates shall include a provision for thirty (30) days' advance
written notice by the insurer to Lessor and the Agent in the event of
cancellation or expiration or nonpayment of premium with respect to such
insurance, and shall include a customary breach of warranty clause.  Each Lessee
shall provide evidence to Lessor and the Agent that each insurance policy
required by this Article VIII has been renewed or replaced prior to the
                 ------------
scheduled expiration date therefor.

          (f) Each policy of insurance maintained by a Lessee pursuant to this

Article VIII shall provide that in respect of the interests of Lessor, the Agent
------------
and the Lenders, such policies shall not be invalidated by any fraud, action,
inaction or misrepresentation of any Lessee or any other Person.  Each of each
Lessee, Lessor, the Agent and the Lenders agree to waive their rights of
subrogation against the others to the extent of the losses paid under insurance
policies.

          (g) All insurance policies carried in accordance with this Article
                                                                     -------
VIII shall be maintained with insurers rated at least A- by A.M. Best & Company,
----
and in all cases the insurer shall be qualified to insure risks in the State
where each Leased Property is located.

                                      11
<PAGE>

                                  ARTICLE IX.
                           ASSIGNMENT AND SUBLEASING
                           -------------------------

     No Lessee may assign any of its right, title or interest in, to or under
this Lease, except (i) to a wholly owned Subsidiary of Hughes, provided that
                                                               --------
Hughes reaffirms its obligations under the Guaranty Agreement after giving
effect thereto and (ii) as set forth in the following sentence.  Each Lessee may
sublease all or any portion of any Leased Property, provided that (a) all
                                                    --------
obligations of such Lessee shall continue in full effect as obligations of a
principal and not of a guarantor or surety, as though no sublease had been made;
(b) such sublease shall be expressly subject and subordinate to this Lease, the
Loan Agreement and the other Operative Documents; and (c) each such sublease
shall terminate on or before the Lease Termination Date.  Each Lessee shall give
the Agent and Lessor prompt written notice of any such sublease.

     Except pursuant to an Operative Document, this Lease shall not be mortgaged
or pledged by any Lessee, nor shall any Lessee mortgage or pledge any interest
in any Leased Property or any portion thereof.  Any such mortgage or pledge
shall be void.

                                  ARTICLE X.
                   LOSS, DESTRUCTION, CONDEMNATION OR DAMAGE
                   -----------------------------------------

                                      12
<PAGE>

     Section X.1  Event of Loss. Any event (i) which would otherwise
                  -------------
constitute a Casualty during the Base Term, and (ii) which, in the good-faith
judgment of the related Lessee, (A) requires repairs to the related Leased
Property that would cost in excess of 50% of the original cost of such Leased
Property or (B) renders repair and restoration of the related Leased Property
impossible or impractical, and with respect to which such Lessee has determined
not to repair and restore such Leased Property (it being understood that the
                                                -- ----- ----------
Lessee shall have the option to either purchase the affected Leased Property or
repair and restore the affected Leased Property) shall constitute an "Event of
                                                                      --------
Loss".  Within sixty (60) days after the occurrence of such event, the related
----
Lessee shall deliver to Lessor an Officer's Certificate notifying Lessor of such
event and of such judgment and decision not to repair and restore.  In the case
of any other event which constitutes a Casualty, the related Lessee shall
restore such Leased Property pursuant to Section 10.3.  If an Event of Loss
                                         ------------
other than an Event of Taking shall occur, the related Lessee shall purchase the
affected Leased Property pursuant to Section 14.1 on the earlier of (i) the
                                     ------------
Lease Termination Date and (ii) the next Payment Date occurring not less than
sixty (60) days after the delivery of the Officer's Certificate pursuant to the
second preceding sentence; provided that if such an Event of Loss shall occur
                           --------
during the Construction Term for such Leased Property, the related Lessee may,
at such Lessee's option, pay to the Lessor the Construction Failure Payment
instead of paying the Leased Property Balance as the purchase price for such
Leased Property (in which case the Lessor shall retain the Lessor's interest in
such Leased Property, subject to the provisions of Section 5.7 of the
                                                   -----------
Construction Agency Agreement with respect to remarketing).  Upon Lessor's
receipt of such Leased Property Balance on such date, Lessor shall cause
Lessor's interest in such Leased Property to be conveyed to the related Lessee
in accordance with and subject to the provisions of Section 14.5 hereof; upon
                                                    ------------
completion of such purchase (or payment of the Construction Failure Payment, as
the case may be), but not prior thereto, this Lease with respect to such Leased
Property and all obligations hereunder with respect to such Leased Property
shall terminate, except with respect to obligations and liabilities hereunder,
actual or contingent, that have arisen or relate to events occurring on or prior
to such date of purchase, or which are expressly stated herein to survive
termination of this Lease.

     Upon the consummation of the purchase of any Leased Property pursuant to
this Section 10.1, any proceeds derived from insurance required to be maintained
     ------------
by the related Lessee pursuant to this Lease for any Leased Property remaining
after payment of such purchase price shall be paid over to, or retained by, such
Lessee or as it may direct, and Lessor shall assign to such Lessee, without
warranty, all of Lessor's rights to and interest in such insurance required to
be maintained by such Lessee pursuant to this Lease.

     Section X.2  Event of Taking. Any event (i) which constitutes a
                  ---------------
Condemnation of all of, or substantially all of, a Leased Property, or (ii) (A)
which would otherwise constitute a Condemnation, and (B) which, in the good-
faith judgment of the related Lessee, (A) requires repairs to the related Leased
Property that would cost in excess of 50% of the original cost of such Leased
Property or (B) renders restoration and rebuilding of the related Leased
Property impossible or impractical, and with respect to which such Lessee has
determined not to repair

                                      13
<PAGE>

and restore such Leased Property (it being understood that the Lessee shall have
                                  -- ----- ----------
the option to either purchase the affected Leased Property or repair and restore
the affected Leased Property) shall constitute an "Event of Taking". Within
                                                   ---------------
sixty (60) days after the occurrence of such event, the related Lessee shall
deliver to Lessor an Officer's Certificate notifying Lessor of such event and of
such judgment and decision not to repair and restore. In the case of any other
event which constitutes a Condemnation, the related Lessee shall restore and
rebuild such Leased Property pursuant to Section 10.4. If an Event of Taking
                                         ------------
shall occur, the related Lessee shall purchase the affected Leased Property
pursuant to Section 14.1 on the earlier of (A) the Lease Termination Date and
            ------------
(B) the next Payment Date occurring not less than sixty (60) days after the
occurrence of such Event of Taking, in the case of an Event of Taking described
in clause (i) above, or (2) on the earlier of (A) the Lease Termination Date and
   ----------
(B) the next Payment Date occurring not less than 60 days after the delivery of
the Officer's Certificate pursuant to the second preceding sentence, in the case
of an Event of Taking described in clause (ii) above, an amount equal to the
                                   -----------
related Leased Property Balance; provided that, if such an Event of Taking shall
                                 --------
occur during the Construction Term for such Leased Property, the related Lessee
may, at such Lessee's option, pay to the Lessor the Construction Failure Payment
instead of paying the Leased Property Balance as the purchase price for such
Leased Property (in which case the Lessor shall retain the Lessor's interest in
such Leased Property, subject to the provisions of Section 5.7 of the
Construction Agency Agreement with respect to remarketing). Upon Lessor's
receipt of such Leased Property Balance on such date, Lessor shall cause
Lessor's interest in such Leased Property, and in all condemnation proceeds
related thereto, to be conveyed to the related Lessee in accordance with and
subject to the provisions of Section 14.5 hereof (provided that such conveyance
                             -------------
shall be subject to all rights of the condemning authority); upon completion of
such purchase (or payment of the Construction Failure Payment, as the case may
be), but not prior thereto, this Lease with respect to such Leased Property and
all obligations hereunder with respect to such Leased Property shall terminate,
except with respect to obligations and liabilities hereunder, actual or
contingent, that have arisen or relate to events occurring on or prior to such
date of purchase, or which are expressly stated herein to survive termination of
this Lease.

     Upon the consummation of the purchase of such Leased Property pursuant to
this Section 10.2, all Awards received by Lessor, after deducting any reasonable
     ------------
out-of-pocket costs incurred by Lessor in collecting such Awards, received or
payable on account of an Event of Taking with respect to such Leased Property
during the related Lease Term shall be promptly paid to the related Lessee, and
all rights of Lessor in Awards not then received shall be assigned to Lessee by
Lessor.

     Section X.3  Casualty.  If a Casualty shall occur after the Construction
                  --------
Period for the affected Leased Property which is not an Event of Loss, the
related Lessee shall rebuild and restore the affected Leased Property, will
complete the same prior to the Lease Termination Date, and will cause the
condition set forth in Section 3.5 (c) of the Master Agreement to be fulfilled
with respect to such restoration and rebuilding prior to the Lease Termination
Date, regardless of whether insurance proceeds received as a result of such
Casualty are sufficient for such purpose.

                                      14
<PAGE>

     Section X.4  Condemnation.  If a Condemnation shall occur after the
                  ------------
Construction Period for the affected Leased Property which is not an Event of
Taking, the related Lessee shall rebuild and restore the affected Leased
Property, will complete the same prior to the Lease Termination Date, and will
cause the condition set forth in Section 3.5 (c) of the Master Agreement to be
fulfilled with respect to such restoration and rebuilding prior to the Lease
Termination Date.

     Section X.5  Verification of Restoration and Rebuilding.  In the event of
                  ------------------------------------------
Casualty or Condemnation that involves, or is reasonably expected to involve,
repair or rebuilding costs in excess of $1,000,000, to verify the related
Lessee's compliance with the foregoing Section 10.3 or 10.4, as appropriate,
                                       ------------    ----
Lessor, the Agent, the Lenders and their respective authorized representatives
may, upon five (5) Business Days' notice to such Lessee, make a reasonable
number of inspections of the affected Leased Property with respect to (i) the
extent of the Casualty or Condemnation and (ii) the restoration and rebuilding
of the related Building and the Land.  All actual and reasonable out-of-pocket
costs of such inspections incurred by Lessor, the Agent or any Lender will be
paid by the related Lessee promptly after written request.  No such inspection
shall unreasonably interfere with the related Lessee's operations or the
operations of any other occupant of such Leased Property.  None of the
inspecting parties shall have any duty to make any such inspection or inquiry
and none of the inspecting parties shall incur any liability or obligation by
reason of making or not making any such inspection or inquiry.

     Section X.6  Application of Payments.  All proceeds (except for payments
                  -----------------------
under insurance policies maintained other than pursuant to Article VIII of this
                                                           ------------
Lease) received at any time by Lessor, any Lessee or the Agent from any
Governmental Authority or other Person with respect to any Condemnation or
Casualty to any Leased Property or any part thereof or with respect to an Event
of Loss or an Event of Taking, plus the amount of any payment that would have
                               ----
been due from an insurer but for a Lessee's self-insurance or deductibles ("Loss
                                                                            ----
Proceeds"), shall (except to the extent Section 10.9 applies) be applied as
--------                                ------------
follows:

          (a) In the event the related Lessee purchases such Leased Property
     pursuant to Section 10.1 or Section 10.2, such Loss Proceeds shall be
                 ------------    ------------
     applied as set forth in Section 10.1 or Section 10.2, as the case may be;
                             ------------    ------------

          (b) In the event of a Casualty at such time when no Event of Default
     has occurred and is continuing and the related Lessee is obligated to
     repair and rebuild such Leased Property pursuant to Section 10.3, such
                                                         ------------
     Lessee may, in good faith and subsequent to the date of such Casualty,
     certify to Lessor and to the applicable insurer that no Event of Default
     has occurred and is continuing, in which event the applicable insurer shall
     pay the Loss Proceeds to such Lessee;

                                      15
<PAGE>

          (c) In the event of a Condemnation at such time when no Event of
     Default has occurred and is continuing and the related Lessee is obligated
     to repair and rebuild such Leased Property pursuant to Section 10.4, such
                                                            ------------
     Lessee may, in good faith and subsequent to the date of such Condemnation,
     certify to Lessor and the Agent that no Event of Default has occurred and
     is continuing, in which event the applicable Award shall be paid over to
     such Lessee; and

          (d) As provided in Section 10.8, if such section is applicable.
                             ------------

     During any period of repair or rebuilding pursuant to this Article X, this
                                                                ---------
Lease will remain in full force and effect and Basic Rent shall continue to
accrue and be payable without abatement or reduction. Each Lessee shall maintain
records setting forth information relating to the receipt and application of
payments in accordance with this Section 10.6. Such records shall be kept on
                                 ------------
file by each Lessee at its offices and shall be made available to Lessor, the
Lenders and the Agent upon request during such Lessee's normal business hours.

     Section X.7  Prosecution of Awards. (a)  If any Condemnation shall occur,
                  ---------------------
the party receiving the notice of such Condemnation shall give to the other
party and the Agent promptly, but in any event within thirty (30) days after the
occurrence thereof, written notice of such occurrence and the date thereof,
generally describing the nature and extent of such Condemnation. With respect to
any Event of Taking or any Condemnation, the related Lessee shall control the
negotiations with the relevant Governmental Authority as to any proceeding in
respect of which Awards are required, under Section 10.6, to be assigned or
                                            ------------
released to such Lessee, unless an Event of Default shall have occurred and be
continuing, in which case (i) the Agent (or Lessor if the Loans have been fully
paid) shall control such negotiations; and (ii) such Lessee hereby irrevocably
assigns, transfers and sets over to Lessor all rights of such Lessee to any
Award on account of any Event of Taking or any Condemnation and, if there will
not be separate Awards to Lessor and such Lessee on account of such Event of
Taking or Condemnation, irrevocably authorizes and empowers the Agent (or Lessor
if the Loans have been fully paid) during the continuance of an Event of
Default, with full power of substitution, in the name of such Lessee or
otherwise (but without limiting the obligations of such Lessee under this
Article X), to file and prosecute what would otherwise be such Lessee's claim
---------
for any such Award and to collect, receipt for and retain the same. In any event
Lessor and the Agent may participate in such negotiations, and no settlement
will be made without the prior consent of the Agent (or Lessor if the Loans have
been fully paid), not to be unreasonably withheld.

     (b) Notwithstanding the foregoing, each Lessee may prosecute, and Lessor
shall have no interest in, any claim with respect to such Lessee's personal
property and equipment not financed by or otherwise property of Lessor, business
interruption or similar award and such Lessee's relocation expenses.

                                      16
<PAGE>

     Section X.8  Application of Certain Payments Not Relating to an Event of
                  -----------------------------------------------------------
Taking.  In case of a requisition for temporary use of all or a portion of any
------
Leased Property which is not an Event of Taking, this Lease shall remain in full
force and effect with respect to such Leased Property, without any abatement or
reduction of Basic Rent, and the Awards for such Leased Property shall, unless
an Event of Default has occurred and is continuing, be paid to the related
Lessee.

     Section X.9  Other Dispositions. Notwithstanding the foregoing provisions
                  ------------------
of this Article X, so long as an Event of Default shall have occurred and be
        ---------
continuing, any amount that would otherwise be payable to or for the account of,
or that would otherwise be retained by, Lessee pursuant to this Article X shall
                                                                ---------
be paid to the Agent (or Lessor if the Loans have been fully paid) as security
for the obligations of the Lessees under this Lease and, at such time thereafter
as no Event of Default shall be continuing, such amount shall be paid promptly
to the related Lessee to the extent not previously applied by Lessor or the
Agent in accordance with the terms of this Lease or the other Operative
Documents.

     Section X.10  No Rent Abatement.  Rent shall not abate hereunder by
                   -----------------
reason of any Casualty, any Event of Loss, any Event of Taking or any
Condemnation of any Leased Property, and each Lessee shall continue to perform
and fulfill all of such Lessee's obligations, covenants and agreements hereunder
notwithstanding such Casualty, Event of Loss, Event of Taking or Condemnation
until the Lease Termination Date.

                                      17
<PAGE>

                                  ARTICLE XI.
                         INTEREST CONVEYED TO LESSEES
                         ----------------------------

     Each Lessee and Lessor intend that this Lease be treated, for accounting
purposes, as an operating lease.  For purposes of tax, commercial and bankruptcy
law, each Lessee and Lessor intend that the transaction represented by this
Lease be treated as a financing transaction; for such purposes, it is the
intention of the parties hereto (i) that this Lease be treated as a mortgage or
deed of trust (whichever is applicable in the jurisdictions in which the Leased
Properties are located) and security agreement, encumbering the Leased
Properties, and that each Lessee, as grantor, hereby grants to Lessor, as
mortgagee or beneficiary and secured party, or any successor thereto, a first
and paramount Lien on each Leased Property in which such Lessee has an interest,
(ii) that Lessor shall have, as a result of such determination, all of the
rights, powers and remedies of a mortgagee, deed of trust beneficiary or secured
party available under Applicable Law to take possession of and sell (whether by
foreclosure or otherwise) any Leased Property, (iii) that the effective date of
such mortgage, security deed or deed of trust shall be the effective date of
this Lease, or the related Lease Supplement, if later, (iv) that the recording
of this Lease or a Lease Supplement shall be deemed to be the recording of such
mortgage, security deed or deed of trust, (v) that the obligations secured by
such mortgage, security deed or deed of trust shall include the Funded Amounts
and all Basic Rent and Supplemental Rent hereunder and all other obligations of
and amounts due from each Lessee hereunder and under the Operative Documents and
(vi) that the related Lessee will be treated as the owner of the Leased
Properties leased by such Lessee for tax, commercial and bankruptcy law
purposes.

                                 ARTICLE XII.
                               EVENTS OF DEFAULT
                               -----------------

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

     (a)  any Lessee shall fail to make any payment of Basic Rent within three
(3) days after written or verbal notice thereof from Lessor or the Agent to
Hughes, provided that no such notice shall be required if notice has been given
        --------
pursuant to this clause (a) twice during the relevant calendar year (in which
                 ----------
case, the failure to make any payment of Basic Rent within three (3) days after
such Basic Rent is due shall constitute an Event of Default);

     (b)  any Lessee shall fail to make any payment of Rent (other than Basic
Rent and other than as set forth in clause (c)) or any other amount payable
                                    ----------
hereunder or under any of the other Operative Documents (other than Basic Rent
and other than as set forth in clause (c)), and
                               -----------

                                      18
<PAGE>

such failure shall continue for a period of ten (10) Business Days after written
notice thereof from Lessor or the Agent to Hughes;

     (c)  any Lessee shall fail to pay the Funded Amount or Lease Balance when
due pursuant to Section 14.1 or 14.2, or any Lessee shall fail to pay the
                ------------    ----
Recourse Deficiency Amount when required pursuant to Section 13.4 or Article XIV
                                                     ------------    -----------
or the Construction Agent shall fail to make any payment when due under the
Construction Agency Agreement;

     (d)  any Lessee shall fail to maintain insurance as required by Article
                                                                     -------
VIII hereof or Section 2.9 of the Construction Agency Agreement, and such
----
failure shall continue until the earlier of (i) fifteen (15) days after written
notice thereof from Lessor and (ii) the day immediately preceding the date on
which any applicable insurance coverage would otherwise finally lapse or
terminate;

     (e)  any Consolidated Company shall fail to make when due (whether at
stated maturity, by acceleration, on demand or otherwise, and after giving
effect to any applicable grace period) any payment of principal of or interest
on any Indebtedness (other than the Obligations) exceeding $5,000,000 in the
aggregate;

     (f)  any Consolidated Company shall fail to observe or perform within any
applicable grace period any covenants or agreements (other than those referenced
in paragraph (e) above) contained in any agreements or instruments relating to
   -------------
any of its Indebtedness exceeding $5,000,000 in the aggregate, or any other
event shall occur if the effect of such failure or other event is to accelerate,
or to permit the holder of such Indebtedness or any other Person to accelerate,
the maturity of such Indebtedness (it being understood that if the holder of
such Indebtedness waives such failure or accepts a cure of such failure, such
waiver or acceptance of cure shall negate the Event of Default arising hereunder
solely as a result of such failure); or any such Indebtedness shall be required
to be prepaid (other than by a regularly scheduled required prepayment) in whole
or in part prior to its stated maturity;

     (g)  Hughes or any other Consolidated Company shall commence a voluntary
case concerning itself under the Bankruptcy Code or an involuntary case for
bankruptcy is commenced against any Consolidated Company and the petition is not
controverted within 10 days, or is not dismissed within 60 days, after
commencement of the case; or a custodian (as defined in the Bankruptcy Code) is
appointed for, or takes charge of, all or any part of the property of any
Consolidated Company; or any Consolidated Company commences proceedings of its
own bankruptcy or to be granted a suspension of payments or any other proceeding
under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction,
whether now or hereafter in effect, relating to any Consolidated Company or
there is commenced against any Consolidated Company any such proceeding which
remains undismissed for a period of 60 days; or any Consolidated Company is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or any Consolidated Company
suffers any appointment of any custodian or

                                      19
<PAGE>

the like for it or any part of its property which continues undischarged or
unstayed for a period of 60 days; or any Consolidated Company makes a general
assignment for the benefit of creditors; or any Consolidated Company shall fail
to pay, or shall state that it is unable to pay, or shall be unable to pay, its
debts generally as they become due; or any Consolidated Company shall call a
meeting of its creditors with a view to arranging a composition or adjustment of
its debts; or any Consolidated Company shall by any act or failure to act
indicate its consent to, approval of or acquiescence in any of the foregoing; or
any corporate action is taken by any Consolidated Company for the purpose of
effecting any of the foregoing;

     (h)  a Plan of a Consolidated Company or a Plan subject to Title IV of
ERISA of any of its ERISA Affiliates:

          i.   shall fail to be funded in accordance with the minimum funding
     standard required by applicable law, the terms of such Plan, Section 412 of
     the Tax Code or Section 302 of ERISA for any plan year or a waiver of such
     standard is sought or granted with respect to such Plan under applicable
     law, the terms of such Plan or Section 412 of the Tax Code or Section 303
     of ERISA; or

          ii.  is being, or has been, terminated or the subject of termination
     proceedings under applicable law or the terms of such Plan; or

          iii. shall require a Consolidated Company to provide security under
     applicable law, the terms of such Plan, Section 401 or 412 of the Tax Code
     or Section 306 or 307 of ERISA; or

          iv.  results in a liability to a Consolidated Company under applicable
     law, the terms of such Plan, or Title IV of ERISA;

and there shall result from any such failure, waiver, termination or other event
a liability to the PBGC or a Plan that would have a Material Adverse Effect;

     (i)  a judgment or order for the payment of money in excess of $5,000,000
or otherwise having a Material Adverse Effect shall be rendered against Hughes
or any other Consolidated Company and such judgment or order shall continue
unsatisfied (in the case of a money judgment) and in effect for a period of 30
days during which execution shall not be effectively stayed or deferred (whether
by action of a court, by agreement or otherwise);

     (j)  Hughes shall at any time fail to own and control the percentage of the
voting stock of any Subsidiary Guarantor, either directly or indirectly through
a wholly-owned Subsidiary of Hughes set forth on Schedule 4.1(a) to the Master
Agreement (with respect to Subsidiary Guarantors existing on the Initial Closing
Date) or as otherwise required pursuant to Section 5.12 of the Master Agreement
(with respect to all other Subsidiary Guarantors);

                                      20
<PAGE>

     (k)  (i)  any "person" or "group" (within the meaning of Sections 13(d) and
     14(d)(2) of the Exchange Act), other than the Hughes Family shall become
     the "beneficial owner(s)" (as defined in said Rule 13d-3) of more than
     twenty-five percent (25%) of the shares of the outstanding common stock of
     Hughes entitled to vote for members of Hughes' board of directors; or

          (ii) any event or condition shall occur or exist which, pursuant to
     the terms of any change in control provision, requires or permits the
     holder(s) of Indebtedness of any Consolidated Company to require that such
     Indebtedness be redeemed, repurchased, defeased, prepaid or repaid, in
     whole or in part, or the maturity of such Indebtedness to be accelerated in
     any respect (it being understood that if the holder of such Indebtedness
     waives such event or condition or accepts a cure of such event or
     condition, such waiver or acceptance of cure shall negate the Event of
     Default arising hereunder solely as a result of such event or condition);

     (l)  an attachment or similar action shall be made on or taken against any
of the assets of any Consolidated Company with an Asset Value exceeding
$5,000,000 in the aggregate and is not removed, suspended or enjoined within 60
days of the same being made or any suspension or injunction being lifted;

     (m)  if any of the Operative Documents shall be cancelled, terminated,
revoked or rescinded or any action at law, suit or in equity or other legal
proceeding to cancel, revoke or rescind any of the Operative Documents shall be
commenced by or on behalf of any Obligor, or any court or any other governmental
or regulatory authority or agency of competent jurisdiction shall make a
determination that, or issue a judgment, order, decree or ruling to the effect
that, any one or more of the Operative Documents is illegal,  invalid or
unenforceable in accordance with the terms thereof, and the enforcement of such
judgment, order, decree or ruling is not stayed or suspended within 60 days of
the entry thereof;

     (n)  any representation or warranty by Hughes or any other Lessee in any
Operative Document or in any certificate or document delivered to Lessor, the
Agent or any Funding Party pursuant to any Operative Document shall have been
incorrect in any material respect when made;

     (o)  any Lessee or Hughes shall fail in any material respect to timely,
perform or observe any covenant or agreement (not included in clause (a) through
                                                              ----------
(n) of this Article XII) to be performed or observed by it hereunder or under
---         -----------
any other Operative Document and such failure shall continue for a period of
thirty (30) days (or 10 Business Days in the case of financial covenants) after
such Lessee's or Hughes' receipt of written notice thereof from Lessor, the
Agent or any Funding Party or such Lessee or Hughes shall have actual knowledge
of such failure, except that such thirty (30) day period shall be automatically
extended for such additional period

                                      21
<PAGE>

of time as is reasonably necessary to cure such default, if such default is
capable of being cured but cannot, with reasonable diligence, be cured within
such thirty (30) day period, provided that (i) the related Lessee or Hughes is
                             --------
in the process of diligently curing such default and (ii) such period shall not
be extended for more than 120 days.

                                 ARTICLE XIII.
                                  ENFORCEMENT
                                  -----------

     Section XIII.1  Remedies.  Upon the occurrence and during the continuance
                     --------
of any Event of Default, Lessor may do one or more of the following as Lessor in
its sole discretion shall determine, without limiting any other right or remedy
Lessor may have on account of such Event of Default; provided that, with respect
                                                     --------
to any Leased Property subject to the Construction Agency Agreement, the
Lessor's remedies with respect thereto shall be limited to those set forth in
Section 5.3 of the Construction Agency Agreement.
-----------

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

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

     (c)  Lessor may demand, by written notice to Hughes, that the Lessees pay
as liquidated damages for loss of a bargain and not as a penalty (the parties
agreeing that the

                                      22
<PAGE>

Lessor's actual damages would be difficult to predict, but the aforementioned
liquidated damages represent a reasonable approximation of such amount) an
amount equal to sum of (A) the Permitted Lease Balances for all of the Leased
Properties (or the Recourse Deficiency Amount pursuant to Section 13.4) and (B)
                                                          ------------
any amounts due under Section 7.6 of the Master Agreement. If the sum of the
                      -----------
Permitted Lease Balances for all of the Leased Properties and any amounts due
under Section 7.6 of the Master Agreement equals the Lease Balance,
      -----------
the Lessees shall pay the Lease Balance, and the Lessor shall convey the Leased
Property to the Lessees in accordance with Section 14.5. If the Lessees have not
                                           ------------
paid the Lease Balance pursuant to the foregoing sentence, and if the Lessor
subsequently sells the Leased Properties, the net proceeds of such sale (that
is, after deducting all costs and expenses incurred by the Lessor, the Agent or
any Lender incident to holding, maintaining, insuring, securing and operating
such Leased Properties and to such conveyance (including, without limitation,
all costs, expenses, fees, premiums and taxes described in Section 14.5(b)))
                                                           ---------------
shall be distributed by the Lessor as follows: first to the Lessor in the amount
                                               -----
of the difference between (i) the Permitted Lease Balances of all of the Leased
Properties and the amounts due under Section 7.6 of the Master Agreement, and
                                     -----------
(ii) the amount, if any, paid by the Lessees pursuant to the first sentence of
this Section; second, to the extent the Lessees have made any payment pursuant
     -------  ------
to the first sentence of this Section, to the Lessees to reimburse them for such
                              -------
payment; third, to the Lessor in an amount equal to any portion of the Lease
         -----
Balance that remains unpaid and fourth, to Hughes or the Person or Persons
                                ------
otherwise legally entitled thereto the remaining amounts, if any.

     (d)  Lessor may, at its option, not terminate this Lease, and continue to
collect all Basic Rent, Supplemental Rent, and all other amounts (including,
without limitation, the Funded Amount) due Lessor (together with all costs of
collection) and enforce the Lessees' obligations under this Lease as and when
the same become due, or are to be performed, and at the option of Lessor, upon
any abandonment of any Leased Property by Lessee or re-entry of same by Lessor,
Lessor may, in its sole and absolute discretion, elect not to terminate this
Lease with respect thereto and may make such reasonable alterations and
necessary repairs in order to relet such Leased Property, and relet such Leased
Property or any part thereof for such term or terms (which may be for a term
extending beyond the term of this Lease) and at such rental or rentals and upon
such other terms and conditions as Lessor in its reasonable discretion may deem
advisable; and upon each such reletting all rentals actually received by Lessor
from such reletting shall be applied to the Lessees' obligations hereunder in
such order, proportion and priority as Lessor may elect in Lessor's sole and
absolute discretion.  If such rentals received from such reletting during any
Rent Period are less than the Rent to be paid during that Rent Period by the
Lessees hereunder, the Lessees shall pay any deficiency, as reasonably
calculated by Lessor, to Lessor on the Payment Date for such Rent Period;

     (e)  Lessor may exercise any other right or remedy that may be available to
it under Applicable Law, or proceed by appropriate court action (legal or
equitable) to enforce the terms hereof or to recover damages for the breach
hereof.  Separate suits may be brought to collect any such damages for any Rent
Period(s), and such suits shall not in any manner prejudice Lessor's

                                      23
<PAGE>

right to collect any such damages for any subsequent Rent Period(s), or Lessor
may defer any such suit until after the expiration of the Lease Term, in which
event such suit shall be deemed not to have accrued until the expiration of the
Lease Term; or

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

     Section XIII.2  Remedies Cumulative; No Waiver; Consents. To the extent
                     ----------------------------------------
permitted by, and subject to the mandatory requirements of, Applicable Law, each
and every right, power and remedy herein specifically given to Lessor or
otherwise in this Lease shall be cumulative and shall be in addition to every
other right, power and remedy herein specifically given or now or hereafter
existing at law, in equity or by statute, and each and every right, power and
remedy whether specifically herein given or otherwise existing may be exercised
from time to time and as often and in such order as may be deemed expedient by
Lessor, and the exercise or the beginning of the exercise of any power or remedy
shall not be construed to be a waiver of the right to exercise at the same time
or thereafter any right, power or remedy.  No delay or omission by Lessor in the
exercise of any right, power or remedy or in the pursuit of any remedy shall
impair any such right, power or remedy or be construed to be a waiver of any
default on the part of any Lessee or to be an acquiescence therein.  Lessor's
consent to any request made by any Lessee shall not be deemed to constitute or
preclude the necessity for obtaining Lessor's consent, in the future, to all
similar requests.  No express or implied waiver by Lessor of any Event of
Default shall in any way be, or be construed to be, a waiver of any future or
subsequent Potential Event of Default or Event of Default.  To the extent
permitted by Applicable Law, each Lessee hereby waives any rights now or
hereafter conferred by statute or otherwise that may require Lessor to sell,
lease or otherwise use any Leased Property or part thereof in mitigation of
Lessor's damages upon the occurrence of an Event of Default or that may
otherwise limit or modify any of Lessor's rights or remedies under this Article
                                                                        -------
XIII.
----

     Section XIII.3  Purchase Upon an Event of Default. Upon the occurrence of
                     ---------------------------------
an Event of Default, until such time as Lessor commences material preparations
for the sale or re-lease of the Leased Properties, the Lessees may purchase all,
but not less than all, of the Leased Properties for the Lease Balance, including
any amounts due pursuant to Section 7.5 of the Master Agreement.  Such purchase
shall be made in accordance with Section 14.5, upon not less than five (5)
                                 ------------
Business Days' written notice (which shall be irrevocable) to Lessor, which
notice shall set forth the date of purchase (which shall be a date no later than
thirty (30) Business Days from the date of such notice).

     Section XIII.4  Limitation on Liability.  Notwithstanding the provisions
                     -----------------------
of Section 13.1, the Lessees' recourse liability to Lessor as a consequence of
   ------------
the occurrence of a Limited Event of Default shall be limited to the payment by
the Lessees of the Recourse Deficiency Amount; provided, however if Lessor used
                                               --------  -------
commercial reasonable standards in determining that such Limited Event of
Default occurred, then the Lessor shall be entitled to exercise any of the

                                      24
<PAGE>

remedies set forth in Section 13.1; and provided, further that if the sole
                      ------------      --------  -------
existing Event of Default is (i) an Event of Default under clause (f) of Article
                                                           ----------    -------
XII and the Funding Parties and their Affiliates, either collectively or
---
individually, have the ability to control (by vote or otherwise) whether such
Indebtedness will become due prior to its stated maturity, (ii) an Event of
Default pursuant to clause (n) of Article XII that is based on the
                    ----------    -----------
representation by Hughes set forth in the last sentence of Section 4.1(c) of the
Master Agreement or in the last sentence of Section 4.1(s) of the Master
Agreement or (iii) an Event of Default pursuant to clause (k)(ii) of Article XII
                                                   --------------    -----------
or clause (f) of Article XII resulting from a Cross Default, the Lessees'
   ----------    -----------
recourse liability to Lessor shall be limited to the payment by the Lessees of
the Recourse Deficiency Amount.

                                 ARTICLE XIV.
             SALE, RETURN OR PURCHASE OF LEASED PROPERTY; RENEWAL
              ---------------------------------------------------

     Section XIV.1  Lessee's Option to Purchase.  (a) Subject to the terms,
                    ---------------------------
conditions and provisions set forth in this Article XIV, each Lessee shall have
                                            -----------
the option (the "Purchase Option"), to be exercised as set forth below, to
                 ---------------
purchase from Lessor, Lessor's interest in all of the Leased Properties;
provided that, except as set forth in paragraph (b) below, such option must be
--------                              -------------
exercised with respect to all, but not less than all, of the Leased Properties
under all of the Lease Supplements.  Such option must be exercised by written
notice to Lessor not later than twelve (12) months prior to the Lease
Termination Date which notice shall be irrevocable; such notice shall specify
the date that such purchase shall take place, which date shall be a date
occurring not less than thirty (30) days after such notice or the Lease
Termination Date (whichever is earlier).  If the Purchase Option is exercised
pursuant to the foregoing, then, subject to the provisions set forth in this
Article XIV, on the applicable purchase date or the Lease Termination Date, as
-----------
the case may be, Lessor shall convey to each Lessee, by special warranty deed
and bill of sale, without recourse or warranty (other than as to the absence of
Lessor Liens) and each Lessee shall purchase from Lessor, Lessor's interest in
the Leased Properties leased by such Lessee.

     (b)  Subject to the terms, conditions and provisions set forth in this
Article XIV, each Lessee shall have the option (the "Partial Purchase Option"),
-----------                                          -----------------------
to be exercised as set forth below, to purchase from Lessor Lessor's interest in
any Leased Property leased by such Lessee, provided that after giving effect to
                                           --------
such purchase, not less than one Leased Property remain subject to this Lease.
Such option may be exercised by written notice to Lessor at any time prior to
the last year of the term of this Lease, which notice shall be irrevocable; such
notice shall specify the Leased Property to be purchased and the date that such
purchase shall take place, which date shall be a date occurring not less than
thirty (30) days after such notice.  If a Partial Purchase Option is exercised
pursuant to the foregoing, subject to the provisions set forth in this Article
                                                                       -------
XIV, on the applicable purchase date, Lessor shall convey to the related Lessee,
---
and such Lessee shall purchase from Lessor, Lessor's interest in the Leased
Property that is the subject of such Partial Purchase Option pursuant to Section
                                                                         -------
14.5.
----

                                      25
<PAGE>

     Section XIV.2  Conveyance to Lessee.  Unless (a) the Lessees shall have
                    --------------------
properly exercised the Purchase Option and purchased the Leased Properties
pursuant to Section 14.1(a) or 14.1(b) hereof, or (b) the Lessees shall have
            ---------------    -------
properly exercised the Remarketing Option and shall have fulfilled all of the
conditions of Section 14.6 hereof, then, subject to the terms, conditions and
              ------------
provisions set forth in this Article XIV, each Lessee shall purchase from
                             -----------
Lessor, and Lessor shall convey to each Lessee, on the Lease Termination Date
all of Lessor's interest in the Leased Properties leased to such Lessee.  Any
Lessee may designate, in a notice given to Lessor not less than ten (10)
Business Days prior to the closing of such purchase, or any purchase pursuant to
Section 14.1(a) or (b) (time being of the essence), the transferee to whom the
---------------    ---
conveyance shall be made (if other than to such Lessee), in which case such
conveyance shall (subject to the terms and conditions set forth herein) be made
to such designee; provided, however, that such designation of a transferee shall
                  --------  -------
not cause any Lessee to be released, fully or partially, from any of its
obligations under this Lease.

     Section XIV.3  [Reserved]

     Section XIV.4  Determination of Purchase Price.  Upon the purchase by the
                    -------------------------------
Lessees of Lessor's interest in the Leased Properties upon the exercise of the
Purchase Option or pursuant to Section 14.2, the aggregate purchase price for
                               ------------
all of the Leased Properties shall be an amount equal to the Lease Balance as of
the closing date for such purchase, including any amount due pursuant to Section
7.5(f) of the Master Agreement as a result of such purchase.  Upon the purchase
by a Lessee of Lessor's interest in a Leased Property upon the exercise of a
Partial Purchase Option or pursuant to Section 10.1 or 10.2, the purchase price
                                       ------------    ----
for such Leased Property shall be an amount equal to the Leased Property Balance
for such Leased Property as of the closing date for such purchase, including any
amount due pursuant to Section 7.5(f) of the Master Agreement as the result of
the purchase of such Leased Property.

     Section XIV.5  Purchase Procedure.  (a)  If a Lessee shall purchase
                    ------------------
Lessor's interest in a Leased Property pursuant to any provision of this Lease,
(i) such Lessee shall accept from Lessor and Lessor shall convey such Leased
Property by a duly executed and acknowledged special warranty deed and quit
claim bill of sale of such a Leased Property in recordable form, (ii) upon the
date fixed for any purchase of Lessor's interest in Leased Property hereunder,
the related Lessee(s) shall pay to the order of the Agent (or Lessor if the
Loans have been paid in full) the Lease Balance or Leased Property Balance, as
applicable, plus any amount due pursuant to Section 7.5 of the Master Agreement
as a result of such purchase by wire transfer of immediately available funds,
(iii) Lessor will execute and deliver to the related Lessee such other
documents, including releases, affidavits, termination agreements and
termination statements, as may be legally required or as may be reasonably
requested by Lessee in order to effect such conveyance, free and clear of Lessor
Liens and the Liens of the Operative Documents and (iv) if such Leased Property
is subject to a Ground Lease, Lessor will execute and deliver to the related
Lessee an assignment or termination of such Ground Lease, as directed by such
Lessee, in such form as

                                      26
<PAGE>

may be reasonably requested by such Lessee, and such Lessee shall pay any
amounts due with respect thereto under such Ground Lease.

     (b)  Each Lessee shall, at such Lessee's sole cost and expense, obtain all
required governmental and regulatory approval and consents and in connection
therewith shall make such filings as required by Applicable Law; in the event
that Lessor is required by Applicable Law to take any action in connection with
such purchase and sale, the Lessees shall pay prior to transfer all reasonable
out-of-pocket costs incurred by Lessor in connection therewith.  Without
limiting the foregoing, all costs incident to such conveyance, including,
without limitation, each Lessee's attorneys' fees, Lessor's attorneys' fees,
commissions, each Lessee's and Lessor's escrow fees, recording fees, title
insurance premiums and all applicable documentary transfer or other transfer
taxes and other taxes required to be paid in order to record the transfer
documents that might be imposed by reason of such conveyance and the delivery of
such deed shall be borne entirely by and paid by the Lessees.

     (c)  Upon expiration or termination of this Lease resulting in conveyance
of Lessor's interest in the title to the Leased Properties to the Lessees, there
shall be no apportionment of rents (including, without limitation, water rents
and sewer rents), taxes, insurance, utility charges or other charges payable
with respect to the Leased Properties, all of such rents, taxes, insurance,
utility or other charges due and payable with respect to the Leased Properties
prior to termination being payable by the Lessees hereunder and all due after
such time being payable by the Lessees as the then owners of the Leased
Properties.

     Section XIV.6  Option to Remarket.  Subject to the fulfillment of each of
                    ------------------
the conditions set forth in this Section 14.6, the Lessees shall have the option
                                 ------------
to market all of, but not less than all of, the Leased Properties for Lessor
(the "Remarketing Option").
      ------------------

     The Lessees' effective exercise and consummation of the Remarketing Option
shall be subject to the due and timely fulfillment of each of the following
provisions, the failure of any of which, unless waived in writing by Lessor and
the Lenders, shall render the Remarketing Option and the Lessees' exercise
thereof null and void, in which event, each Lessee shall be obligated to perform
its obligations under Section 14.2.
                      ------------

          (a)  Not later than twelve (12) months prior to the Lease Termination
     Date, Hughes shall give to Lessor and the Agent written notice of the
     Lessees' exercise of the Remarketing Option.

          (b)  Not later than ten (10) Business Days prior to the Lease
     Termination Date, each Lessee shall deliver to Lessor and the Agent an
     environmental assessment of each Leased Property leased by it dated not
     more than one hundred eighty (180) days prior to the Lease Termination
     Date.  Such environmental assessment shall be prepared by an environmental
     consultant selected by the related Lessee and reasonably satisfactory to
     the

                                      27
<PAGE>

     Required Funding Parties, shall be in form, detail and substance reasonably
     satisfactory to the Required Funding Parties, and shall otherwise indicate
     no degradation in environmental conditions beyond those described in the
     related Environmental Audit for which corrective action is required by
     Applicable Law and shall not include a recommendation for further
     investigation to make such determination.

          (c)  On the date of Hughes' notice to Lessor and the Agent of the
     Lessees' exercise of the Remarketing Option, each of the Construction
     Conditions shall have been timely satisfied and no Event of Default or
     Potential Event of Default shall exist, and thereafter, no Event of Default
     or Potential Event of Default shall exist under this Lease.

          (d)  Each Lessee shall have completed in all material respects all
     Alterations, restoration and rebuilding of the Leased Properties leased by
     it pursuant to Sections 6.1, 6.2, 10.3 and 10.4 (as the case may be) and
                    ------------  ---  ----     ----
     shall have fulfilled in all material respects all of the conditions and
     requirements in connection therewith pursuant to said Sections, in each
                                                           --------
     case by the date on which Lessor and the Agent receive Hughes' notice of
     the Lessees' exercise of the Remarketing Option (time being of the
     essence), regardless of whether the same shall be within such Lessee's
     control.

          (e)  Upon request by the Agent, each Lessee shall promptly provide any
     maintenance records relating to each Leased Property leased by it to
     Lessor, the Agent and any potential purchaser, and shall otherwise do all
     things necessary to deliver possession of such Leased Property to the
     potential purchaser at the appropriate closing date.  Each Lessee shall
     allow Lessor, the Agent and any potential purchaser reasonable access
     during normal business hours to any Leased Property for the purpose of
     inspecting the same.

          (f)  On the Lease Termination Date, each Lessee shall surrender the
     Leased Properties leased by it in accordance with Section 14.8 hereof.
                                                       ------------

          (g)  In connection with any such sale of the Leased Properties, each
     Lessee will provide to the purchaser all customary "seller's" indemnities
     reasonably requested by the potential purchaser (taking into account the
     location and nature of the Leased Properties), representations and
     warranties regarding title, absence of Liens (except Lessor Liens) and the
     condition of the Leased Properties.  Each Lessee shall fulfill all of the
     requirements set forth in clause (b) of Section 14.5, and such requirements
                               ----------    ------------
     are incorporated herein by reference.  As to Lessor, any such sale shall be
     made on an "as is, with all faults" basis without representation or
     warranty by Lessor, other than the absence of Lessor Liens.

          (h)  In connection with any such sale of Leased Properties, each
     Lessee shall pay directly, and not from the sale proceeds, all prorations,
     credits, costs and expenses of the sale of the Leased Properties leased by
     it, whether incurred by Lessor, any Lender, the Agent or such Lessee,
     including without limitation, to the extent not paid by the

                                      28
<PAGE>

     purchaser, the cost of all title insurance, surveys, environmental reports,
     appraisals, transfer taxes, Lessor's and the Agent's attorneys' fees, such
     Lessee's attorneys' fees, commissions, escrow fees, recording fees, and all
     applicable documentary and other transfer taxes.

          (i)  The Lessees, jointly and severally, shall pay to the Agent on the
     Lease Termination Date (or to such other Person as Agent shall notify
     Lessee in writing, or in the case of Supplemental Rent, to the Person
     entitled thereto) an amount equal to the Recourse Deficiency Amount, plus
                                                                          ----
     all accrued and unpaid Basic Rent and Supplemental Rent, and all other
     amounts hereunder which have accrued prior to or as of such date, in the
     type of funds specified in Section 3.3 hereof.
                                -----------

If the Lessees have exercised the Remarketing Option, the following additional
provisions shall apply:  During the period commencing on the date twelve (12)
months prior to the scheduled expiration of the Lease Term, one or more of the
Lessees shall, as nonexclusive agent for Lessor, use commercially reasonable
efforts to sell Lessor's interest in the Leased Properties and will attempt to
obtain the highest purchase price therefor.  The costs of such marketing of the
Leased Properties shall be paid through the sales proceeds.  Lessee promptly
shall submit all bids to Lessor and the Agent and Lessor; the Agent will have
the right to review the same; and the Agent and Lessor will have the right to
submit any one or more bids.  All bids shall be on an all-cash basis.  In no
event shall such bidder be a Lessee or any Subsidiary or Affiliate of a Lessee.
The written offer must specify the Lease Termination Date as the closing date.
If, and only if, the aggregate selling price (net of closing costs, marketing
costs and prorations, as reasonably estimated by the Agent) (the "Offer Price")
                                                                  -----------
is less than the Lease Balance at such time, then Lessor or the Agent may, in
its sole and absolute discretion, by notice to Hughes, given within 30 days of
receipt of such offer, reject such offer to purchase, in which event the parties
will proceed according to the provisions of Section 14.7 hereof.  If neither
                                            ------------
Lessor nor the Agent rejects such purchase offer as provided above, the closing
of such purchase of the Leased Properties by such purchaser shall occur on the
Lease Termination Date, contemporaneously with the Lessees' surrender of the
Leased Properties in accordance with Section 14.8 hereof, and the gross proceeds
                                     ------------
of the sale (i.e., without deduction for any marketing, closing or other costs,
prorations or commissions) shall be paid directly to the Agent (or Lessor if the
Funded Amounts have been fully paid).  The Agent shall distribute the proceeds
derived from any such sale first, to the Lessor in an amount of the difference
                           -----
between (i) the Permitted Lease Balances and all amounts payable under Section
7.6 of the Master Agreement  for all of the Leased Properties and (ii) the
Recourse Deficiency Amount for all of the Leased Properties, if any, received by
the Agent from the Lessees, second, to the extent the Lessees have paid the
                            ------
Recourse Deficiency Amount to the Agent, to the Lessees to reimburse them to the
extent of its payment of the Recourse Deficiency Amount, third, to the Lessor in
                                                         ------
an amount equal to the remaining unpaid portion of the Lease Balance, and
fourth, to Hughes or the Person or Persons otherwise legally entitled thereto
the remaining amounts, if any.

                                      29
<PAGE>

     Section XIV.7  Rejection of Sale.  Notwithstanding anything contained
                    -----------------
herein to the contrary, if Lessor or the Agent rejects the purchase offer for
the Leased Properties as provided in (and subject to the conditions set forth
in) Section 14.6, then the Agent shall have an appraisal done of the Leased
    ------------
Properties by an independent third party appraiser selected by the Agent, which
appraiser shall determine the Fair Market Sales Value of the Leased Properties
(such Fair Market Sales Value, less the cost of such appraisal, the "Appraised
                                                                     ---------
Value").  If (a) the Appraised Value shall be equal to or greater than the Offer
-----
Price and the Lessor in its sole discretion still elects to proceed with such
sale or (b) the Appraised Value shall be less than the Offer Price, the Leased
Properties shall be sold, and the proceeds of such sale shall be distributed, in
accordance with Section 14.6.  If the Appraised Value shall be equal to or
                ------------
greater than the Offer Price and the Lessor shall not have elected to sell the
Leased Properties, (a) the Lessor shall refund to the Lessees the amount by
which (i) the Recourse Deficiency Amount paid by the Lessees pursuant to Section
                                                                         -------
14.6(g) exceeds (ii) the amount by which (A) the Permitted Lease Balance exceeds
-------
(B) the Appraised Value, and (b) the Lessor shall retain title to the Leased
Properties and shall retain all future proceeds of such Leased Properties free
and clear of all claims of any Lessee.

     Section XIV.8  Return of Leased Property.  If Lessor retains title to any
                    -------------------------
Leased Property pursuant to Section 14.7 hereof, then each Lessee shall, on the
                            ------------
Lease Termination Date, and at its own expense, return possession of the Leased
Properties leased by it to Lessor for retention by Lessor or, if the Lessees
properly exercise the Remarketing Option and fulfill all of the conditions of
Section 14.6 hereof and neither Lessor nor the Agent rejects such purchase offer
------------
pursuant to Section 14.6, then each Lessee shall, on such Lease Termination
            ------------
Date, and at its own cost, transfer possession of the Leased Properties leased
by it to the independent purchaser thereof, in each case by surrendering the
same into the possession of Lessor or such purchaser, as the case may be, free
and clear of all Liens other than Lessor Liens, in as good condition as it was
on the Completion Date therefor in the case of new Construction, or the Funding
Date (as modified by Alterations permitted by this Lease), ordinary wear and
tear excepted, and in compliance in all material respects with Applicable Law.
Each Lessee shall, on and within a reasonable time before and after the Lease
Termination Date, cooperate with Lessor and the independent purchaser of any
Leased Property leased by such Lessee in order to facilitate the ownership and
operation by such purchaser of such Leased Property after the Lease Termination
Date, which cooperation shall include the following, all of which such Lessee
shall do on or before the Lease Termination Date or as soon thereafter as is
reasonably practicable: providing all books and records regarding the related
Lessee's maintenance of such Leased Property and all know-how, data and
technical information relating thereto, providing a copy of the Plans and
Specifications within the possession of such Lessee or Hughes, granting or
assigning all licenses (to the extent assignable) necessary for the operation
and maintenance of such Leased Property, and cooperating in seeking and
obtaining all necessary Governmental Action.  Each Lessee shall have also paid
the cost of all Alterations commenced prior to the Lease Termination Date.  The
obligations of such Lessee under this Article XIV shall survive the expiration
                                      -----------
or termination of this Lease.

                                      30
<PAGE>

     Section XIV.9  Renewal.  Subject to the conditions set forth herein,
                    -------
Hughes may, by written notice to Lessor and the Agent given not later than
twelve months and not earlier than sixteen months, prior to the end of the Base
Term or the end of the first renewal term, as the case may be, request to renew
this Lease for five years, commencing on the date following such Lease
Termination Date, provided that in no event shall the Lease Term exceed fifteen
                  --------
(15) years.  No later than the date that is 45 days after the date the request
to renew has been delivered to each of Lessor and the Agent, the Agent will
notify Hughes whether or not Lessor and the Lenders consent to such renewal
request (which consent may be granted or denied in the Lessor's and each
Lender's sole discretion and may be conditioned on such conditions precedent as
may be specified by Lessor or such Lender).  If the Agent fails to respond in
such time frame, such failure shall be deemed to be a rejection of such request.

                                  ARTICLE XV.
                              LESSEE'S EQUIPMENT
                              ------------------

     After any repossession of any Leased Property (whether or not this Lease
has been terminated), the related Lessee, at its expense and so long as such
removal of such trade fixture, personal property or equipment shall not result
in a violation of Applicable Law, shall, within a reasonable time after such
repossession or within ninety (90) days after such Lessee's receipt of Lessor's
written request (whichever shall first occur), remove all of such Lessee's trade
fixtures, personal property and equipment from such Leased Property (to the
extent that the same can be readily removed from such Leased Property without
causing material damage to such Leased Property); provided, however, that such
                                                  --------  -------
Lessee shall not remove any such trade fixtures, personal property or equipment
that has been financed by Lessor under the Operative Documents or otherwise
constituting Leased Property (or that constitutes a replacement of such
property).  Any of a Lessee's trade fixtures, personal property and equipment
not so removed by such Lessee within such period shall be considered abandoned
by such Lessee, and title thereto shall without further act vest in Lessor, and
may be appropriated, sold, destroyed or otherwise disposed of by Lessor without
notice to any Lessee and without obligation to account therefor and the related
Lessee will pay Lessor, upon written demand, all reasonable costs and expenses
incurred by Lessor in removing, storing or disposing of the same and all costs
and expenses incurred by Lessor to repair any damage to such Leased Property
caused by such removal.  Each Lessee will immediately repair at its expense all
damage to such Leased Property caused by any such removal (unless such removal
is effected by Lessor, in which event such Lessee shall pay all reasonable costs
and expenses incurred by Lessor for such repairs).  Lessor shall have no
liability in exercising Lessor's rights under this Article XV, nor shall Lessor
                                                   ----------
be responsible for any loss of or damage to any Lessee's personal property and
equipment.

                                      31
<PAGE>

                                 ARTICLE XVI.
                          RIGHT TO PERFORM FOR LESSEE
                          ---------------------------

     If any Lessee shall fail to perform or comply with any of its agreements
contained herein and either such failure shall continue for a period of 10 or
more days after notice to Hughes or to such Lessee by Lessor or the Agent or
such failure has resulted in immediate material danger to any Leased Property or
Lessor's or the Agent's interest therein, Lessor, upon reasonable notice to
Hughes or such Lessee, may perform or comply with such agreement, and Lessor
shall not thereby be deemed to have waived any default caused by such failure,
and the amount of such payment and the amount of the expenses of Lessor
(including actual and reasonable attorneys' fees and expenses) incurred in
connection with such payment or the performance of or compliance with such
agreement, as the case may be, shall be deemed Supplemental Rent, payable by the
related Lessee to Lessor within ten (10) days after written demand therefor.

                                 ARTICLE XVII.
                                 MISCELLANEOUS
                                 -------------

     Section XVII.1  Reports.  To the extent required under Applicable Law and
                     -------
to the extent it is reasonably practical for a Lessee to do so, such Lessee
shall prepare and file in timely fashion, or, where such filing is required to
be made by Lessor or it is otherwise not reasonably practical for a Lessee to
make such filing, Lessee shall prepare and deliver to Lessor (with a copy to the
Agent) within a reasonable time prior to the date for filing and Lessor shall
file, any material reports with respect to the condition or operation of such
Leased Property that shall be required to be filed with any Governmental
Authority.

     Section XVII.2  Binding Effect; Successors and Assigns; Survival.  The
                     ------------------------------------------------
terms and provisions of this Lease, and the respective rights and obligations
hereunder of Lessor and the Lessees, shall be binding upon their respective
successors, legal representatives and assigns (including, in the case of Lessor,
any Person to whom Lessor may transfer any Leased Property or any interest
therein in accordance with the provisions of the Operative Documents), and inure
to the benefit of their respective permitted successors and assigns, and the
rights granted hereunder to the Agent and the Lenders shall inure (subject to
such conditions as are contained herein) to the benefit of their respective
permitted successors and assigns.  Each Lessee hereby acknowledges that Lessor
has assigned all of its right, title and interest to, in and under this Lease to
the Agent and the Lenders pursuant to the Loan Agreement and related Operative
Documents, and that all of Lessor's rights hereunder may be exercised by the
Agent.

     Section XVII.3  Quiet Enjoyment.  Lessor covenants that it will not
                     ---------------
interfere in the related Lessee's or any of its permitted sublessees' quiet
enjoyment of the Leased Properties in accordance with this Lease during the
Lease Term, so long as no Event of Default has occurred

                                      32
<PAGE>

and is continuing. Such right of quiet enjoyment is independent of, and shall
not affect, Lessor's rights otherwise to initiate legal action to enforce the
obligations of the Lessees under this Lease.

     Section XVII.4  Notices.  Unless otherwise specified herein, all notices,
                     -------
offers, acceptances, rejections, consents, requests, demands or other
communications to or upon the respective parties hereto shall be in writing and
shall be deemed to have been given as set forth in Section 8.2 of the Master
Agreement.  All such notices, offers, acceptances, rejections, consents,
requests, demands or other communications shall be addressed as follows or to
such other address as any of the parties hereto may designate by written notice:

     If to Lessor:        Atlantic Financial Group, Ltd.
                          2808 Fairmount
                          Suite 250
                          Dallas, Texas 75201
                          Attn:  Stephen Brookshire
                          Facsimile:  214/871-2799

     If to Hughes
     or any other Lessee: Hughes Supply, Inc.
                          20 North Orange Avenue, Suite 200
                          Orlando, Florida 32801
                          Attn: Mark Scimeca, Esq., Associate General Counsel
                          Facsimile:  407/649-3018

     with a copy to:   Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
                          450 South Orange Avenue, 8th Floor
                          Orlando, Florida 32801
                          Attn: Kathi Borkholder, Esq.
                          Facsimile:  407/843-4444

     If to Agent:         SunTrust Bank
                          200 South Orange Avenue
                          Mail Code 1106
                          Orlando, Florida 32801
                          Attn:  Bill Barr
                          Facsimile:  407/237-4076

     with a copy to:   SunTrust Equitable Securities Corporation
                         303 Peachtree Street, 24th Floor
                         MC 3951
                         Atlanta, Georgia 30308
                         Attn:  Robert Kennedy
                         Facsimile:  404/230-1344

                                      33
<PAGE>

     If to a Lender, to the address provided in the Master Agreement.

     Section XVII.5  Severability.  Any provision of this Lease that shall be
                     ------------
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction, and Lessee shall remain
liable to perform its obligations hereunder except to the extent of such
unenforceability.  To the extent permitted by Applicable Law, each Lessee hereby
waives any provision of law that renders any provision hereof prohibited or
unenforceable in any respect.

     Section XVII.6  Amendment; Complete Agreements.  Neither this Lease nor
                     ------------------------------
any of the terms hereof may be terminated, amended, supplemented, waived or
modified orally, except by an instrument in writing signed by Lessor and Hughes
in accordance with the provisions of Section 8.4 of the Master Agreement.  This
Lease, together with the applicable Lease Supplement and the other Operative
Documents, is intended by the parties as a final expression of their lease
agreement and as a complete and exclusive statement of the terms thereof, all
negotiations, considerations and representations between the parties having been
incorporated herein and therein.  No course of prior dealings between the
parties or their officers, employees, agents or Affiliates shall be relevant or
admissible to supplement, explain, or vary any of the terms of this Lease or any
other Operative Document.  Acceptance of, or acquiescence in, a course of
performance rendered under this or any prior agreement between the parties or
their Affiliates shall not be relevant or admissible to determine the meaning of
any of the terms of this Lease or any other Operative Document.  No
representations, undertakings, or agreements have been made or relied upon in
the making of this Lease other than those specifically set forth in the
Operative Documents.

     Section XVII.7  Construction.  This Lease shall not be construed more
                     ------------
strictly against any one party, it being recognized that both of the parties
hereto have contributed substantially and materially to the preparation and
negotiation of this Lease.

     Section XVII.8  Headings.  The Table of Contents and headings of the
                     --------
various Articles and Sections of this Lease are for convenience of reference
only and shall not modify, define or limit any of the terms or provisions
hereof.

     Section XVII.9  Counterparts.  This Lease may be executed by the parties
                     ------------
hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute but
one and the same instrument.

     Section XVII.10 GOVERNING LAW.  THIS LEASE SHALL IN ALL RESPECTS BE
                      -------------
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE

                                      34
<PAGE>

STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE, EXCEPT AS TO MATTERS RELATING TO THE CREATION OF THE
LEASEHOLD OR MORTGAGE ESTATES 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 STATES IN WHICH SUCH ESTATES ARE LOCATED.

     Section XVII.11  Discharge of Lessee's Obligations by its Subsidiaries or
                      --------------------------------------------------------
Affiliates.  Lessor agrees that performance of any Lessee's obligations
----------
hereunder by one or more of such Lessee's Subsidiaries or Affiliates shall
constitute performance by Lessee of such obligations to the same extent and with
the same effect hereunder as if such obligations were performed by such Lessee,
but no such performance shall excuse any Lessee from any obligation not
performed by it or on its behalf under the Operative Documents.

     Section XVII.12  Liability of Lessor Limited.  Except as otherwise
                      ---------------------------
expressly provided below in this Section 17.12, it is expressly understood and
                                 -------------
agreed by and between each Lessee, Lessor and their respective successors and
assigns that nothing herein contained shall be construed as creating any
liability of Lessor or any of its Affiliates or any of their respective
officers, directors, employees or agents, individually or personally, for any
failure to perform any covenant, either express or implied, contained herein,
all such liability (other than that resulting from Lessor's gross negligence or
willful misconduct, except to the extent imputed to Lessor by virtue of any
Lessee's action or failure to act), if any, being expressly waived by each
Lessee and by each and every Person now or hereafter claiming by, through or
under any Lessee, and that, so far as Lessor or any of its Affiliates or any of
their respective officers, directors, employees or agents, individually or
personally, is concerned, each Lessee and any Person claiming by, through or
under any Lessee shall look solely to the right, title and interest of Lessor in
and to the Leased Properties and any proceeds from Lessor's sale or encumbrance
thereof (provided, however, that no Lessee shall be entitled to any double
         --------  -------
recovery) for the performance of any obligation under this Lease and under the
Operative Documents and the satisfaction of any liability arising therefrom
(other than that resulting from Lessor's gross negligence or willful misconduct,
except to the extent imputed to Lessor by virtue of any Lessee's action or
failure to act).

     Section XVII.13  Estoppel Certificates.  Each party hereto agrees that at
                      ---------------------
any time and from time to time during the Lease Term, it will promptly, but in
no event later than thirty (30) days after request by the other party hereto,
execute, acknowledge and deliver to such other party or to any prospective
purchaser (if such prospective purchaser has signed a commitment or letter of
intent to purchase any Leased Property or any part thereof or any Note),
assignee or mortgagee or third party designated by such other party, a
certificate stating (a) that this Lease is unmodified and in force and effect
(or if there have been modifications, that this Lease is in force and effect as
modified, and identifying the modification agreements); (b) the date to which
Basic Rent has been paid; (c) whether or not there is any existing default by
any Lessee in the payment of Basic Rent or any other sum of money hereunder, and
whether or not there is any other existing default

                                      35
<PAGE>

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

     Section XVII.14  No Joint Venture.  Any intention to create a joint
                      ----------------
venture, partnership or other fiduciary relationship between Lessor and any
Lessee is hereby expressly disclaimed.

     Section XVII.15  No Accord and Satisfaction.  The acceptance by Lessor of
                      --------------------------
any sums from any Lessee (whether as Basic Rent or otherwise) in amounts which
are less than the amounts due and payable by the Lessees hereunder is not
intended, nor shall be construed, to constitute an accord and satisfaction of
any dispute between Lessor and any Lessee regarding sums due and payable by any
Lessee hereunder, unless Lessor specifically deems it as such in writing.

     Section XVII.16  No Merger.  In no event shall the leasehold interests,
                      ---------
estates or rights of any Lessee hereunder, or of the holder of any Notes secured
by a security interest in this Lease, merge with any interests, estates or
rights of Lessor in or to the Leased Properties, it being understood that such
leasehold interests, estates and rights of each Lessee hereunder, and of the
holder of any Notes secured by a security interest in this Lease, shall be
deemed to be separate and distinct from Lessor's interests, estates and rights
in or to the Leased Properties, notwithstanding that any such interests, estates
or rights shall at any time or times be held by or vested in the same person,
corporation or other entity.

     Section XVII.17  Survival.  The obligations of the parties to be
                      --------
performed under this Lease prior to the Lease Termination Date and the
obligations of the parties pursuant to Articles III, X, XI, XIII, Sections 14.2,
                                       -------- ---  -  --  ----  -------------
14.3, 14.4, 14.5, 14.8, Articles XV, and XVI, and Sections 17.10 and 17.12 shall
----  ----  ----  ----  -------- --      ---      --------------     -----
survive the expiration or termination of this Lease.  The extension of any
applicable statute of limitations by Lessor, any Lessee, the Agent or any
Indemnitee shall not affect such survival.

     Section XVII.18  Chattel Paper.  To the extent that this Lease constitutes
                      -------------
chattel paper (as such term is defined in the Uniform Commercial Code in any
applicable jurisdiction), no security interest in this Lease may be created
through the transfer or possession of any counterpart other than the sole
original counterpart, which shall be identified as the original counterpart by
the receipt of the Agent.

     Section XVII.19  Time of Essence.  Time is of the essence of this Lease.
                      ---------------

                                      36
<PAGE>

     Section XVII.20  Recordation of Lease.    Each Lessee will, at its expense,
                      --------------------
cause this Lease or a memorandum of lease in form and substance reasonably
satisfactory to Lessor and such Lessee (if permitted by Applicable Law) to be
recorded in the proper office or offices in the States and the municipalities in
which the Land is located.

     Section XVII.21  Investment of Security Funds.  The parties hereto agree
                      ----------------------------
that any amounts not payable to a Lessee pursuant to any provision of Article
                                                                      -------
VIII, X or XIV or this Section 17.21 shall be held by the Agent (or Lessor if
----  -    ---         -------------
the Loans have been fully paid) as security for the obligations of the Lessees
under this Lease and the Master Agreement and of Lessor under the Loan
Agreement.  At such time as such amounts are payable to the Lessee, such
amounts, net of any amounts previously applied to the Lessees' obligations
hereunder or under the Master Agreement (which application is hereby agreed to
by Lessee), shall be paid to the related Lessee.  Any such amounts which are
held by the Agent (or Lessor if the Loans have been fully paid) pending payment
to a Lessee shall until paid to such Lessee, as provided hereunder or until
applied against the Lessees' obligations herein and under the Master Agreement
and distributed as provided in the Loan Agreement or herein (after the Loan
Agreement is no longer in effect) in connection with any exercise of remedies
hereunder, be invested by the Agent or Lessor, as the case may be, as directed
from time to time in writing by Lessee (provided, however, if an Event of
                                        --------  -------
Default has occurred and is continuing it will be directed by the Agent or, if
the Loans have been fully paid, Lessor) and at the expense and risk of the
Lessees, in Permitted Investments.  Any gain (including interest received)
realized as the result of any such investment (net of any fees, commissions and
other expenses, if any, incurred in connection with such investment) shall be
applied in the same manner as the principal invested.  Lessee upon demand shall
pay to the Agent or Lessor, as appropriate, the amount of any loss incurred in
connection with all such investments and the liquidation thereof.

     Section XVII.22  Ground Leases.  Each Lessee will, at its expense, timely
                      -------------
perform all of the obligations of Lessor, in its capacity as ground lessee,
under each Ground Lease and, if requested by Lessor, shall provide satisfactory
evidence to Lessor of such performance.

     Section XVII.23  Land and Building.  If the cost of the Raw Land related
                      -----------------
to any Leased Property exceeds 25% of the projected Leased Property Balance for
such Leased Property as set forth in the Construction Budget for such Leased
Property, the Raw Land and the Building related to such Leased Property shall be
leased under separate Lease Supplements.  If any Building and the Raw Land on
which such Building is located are subject to separate Lease Supplements, at any
time that the related Lessee exercises an option to purchase such Building or
such Raw Land, or to renew this Lease with respect to such Building or such Raw
Land, or purchases such Building or such Land as a result of an Event of Loss,
an Event of Taking or an Event of Default, such purchase or renewal shall be
made simultaneously with respect to all of such Building and such Raw Land.  In
the event that the Remarketing Option is exercised pursuant to Section 14.6, the
                                                               ------------
amount paid by the related Lessee pursuant to Section 14.6 shall be
                                              ------------

                                      37
<PAGE>

determined separately for the Raw Land and Building thereon if such Raw Land and
Building are leased under separate Lease Supplements.

     Section XVII.24  Joint and Several.  Each obligation of each Lessee
                      -----------------
hereunder shall be a joint and several obligation of all of the Lessees.

     Section XVII.25  IDB Documentation.  If any Leased Property is subject to
                      -----------------
an IDB Lease, this Lease shall be deemed to be a sublease.  Each Lessee hereby
agrees to perform all of its obligations and all obligations of Lessor under all
IDB Documentation related to any Leased Property.  In the event that a Lessee
purchases any Leased Property that is the subject of IDB Documentation, such
Lessee shall prepay, or cause to be prepaid, the Bonds related to such Leased
Property or shall assume all obligations of the Lessor related to such IDB
Documentation and cause the Lessor to be released therefrom pursuant to
documentation reasonably satisfactory to the Lessor.

                           [Signature page follows]

                                      38
<PAGE>

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

Witnessed:                          HUGHES SUPPLY, INC., as a Lessee

By: ________________________        By:________________________________
     Name:________________             Name:__________________________
                                       Title:__________________________
By: ________________________
     Name:________________

                                      S-1
<PAGE>

                                    ATLANTIC FINANCIAL GROUP, LTD.,
                                    as Lessor

                                    By:  Atlantic Financial Managers,
                                         Inc., its General Partner
Witnessed:

By: _______________________         By:________________________________
  Name:___________________             Name: Stephen Brookshire
                                       Title: President

By: _______________________
  Name:___________________

                                      S-2
<PAGE>

STATE OF FLORIDA    )
                    )  ss.:
COUNTY OF ORANGE    )

     The foregoing instrument was acknowledged before me this _____ day of
__________, 2001, by __________, as ___________, of HUGHES SUPPLY, INC., a
Florida corporation, on behalf of said corporation. He is personally known to me
and did not take an oath.

[Notarial Seal]               ____________________________________
                                    Notary Signature

                                    Printed Name
                                    Notary Public, State of Florida
                                    Commission Number:
                                    My commission expires:

                                      N-1
<PAGE>

STATE OF _________________  )
                            )  ss.:
COUNTY OF ________________  )

     The foregoing Lease Agreement was acknowledged before me, the undersigned
Notary Public, in the County of ______________, ____ ____, this _____ day of
__________, _______________, by _____________________, as ____________________
of Atlantic Financial Group, Ltd., on behalf of such partnership.

[Notarial Seal]               ___________________________
                                    Notary Public

My commission expires: ______________

                                      N-2
<PAGE>

Receipt of this original counterpart of the foregoing Lease is hereby
acknowledged as of the date hereof.

                                    SUNTRUST BANK,
                                    as the Agent

                                    By:______________________________
                                       Name:_________________________
                                       Title:________________________

                                      N-3
<PAGE>

Recording requested by                                              EXHIBIT A TO
and when recorded mail to:                                             THE LEASE
                                                                    ------------

____________________________
____________________________
____________________________
____________________________

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

                LEASE SUPPLEMENT NO. __ AND MEMORANDUM OF LEASE

     THIS LEASE SUPPLEMENT NO. __ AND MEMORANDUM OF LEASE (this "Lease
                                                                 -----
Supplement") dated as of [                ], between ATLANTIC FINANCIAL GROUP,
----------
LTD., as  lessor (the "Lessor"), and [HUGHES SUPPLY, INC., a Florida
                       ------
corporation,] as lessee (the "Related Lessee").
                              --------------

     WHEREAS Lessor is the owner of the Land described on Schedule I hereto and
                                                          ----------
wishes to lease the Land together with any Building and other improvements
thereon or which thereafter may be constructed thereon pursuant to the Lease to
Lessee; and

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

     SECTION 1.  Definitions; Interpretation.  For purposes of this Lease
                 ---------------------------
Supplement, capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to them in Appendix A to the Master Lease Agreement,
dated as of June 22, 2001 (as amended and supplemented from time to time, the

"Lease"), among the Lessees named therein and Lessor; and the rules of
------
interpretation set forth in Appendix A to the Lease shall apply to this Lease
Supplement.

     SECTION 2.  The Properties.  Attached hereto as Schedule I is the
                 --------------
description of certain Land (the "Subject Property").  Effective upon the
                                  ----------------
execution and delivery of this Lease Supplement by Lessor and Lessee, such Land,
together with any Building and other improvements thereon or which thereafter
may be constructed thereon shall be subject to the terms and provisions of the
Lease and Lessor hereby grants, conveys, transfers and assigns to the Related
Lessee those interests, rights, titles, estates, powers and privileges provided
for in the Lease with respect to the Subject Property.

                                      A-1
<PAGE>

     SECTION 3.  Amendments to Lease with Respect to Subject Property.
                 ----------------------------------------------------
Effective upon the execution and delivery of this Lease Supplement by Lessor and
the Related Lessee, the following terms and provisions shall apply to the Lease
with respect to the Subject Property:

                       [Insert Applicable Sections per Local Law
                       as contemplated by the Master Agreement]

     SECTION 4.  Recourse Deficiency Percentage.  The Recourse Deficiency
                 ------------------------------
Percentage for the Subject Property is __%.

     SECTION 5.  Ratification; Incorporation.  Except as specifically modified
                 ---------------------------
hereby, the terms and provisions of the Lease are hereby ratified and confirmed
and remain in full force and effect.  The terms of the Lease (as amended by this
Lease Supplement) are by this reference incorporated herein and made a part
hereof.

     SECTION 6.  Original Lease Supplement.  The single executed original of
                 -------------------------
this Lease Supplement marked "THIS COUNTERPART IS THE ORIGINAL EXECUTED
COUNTERPART" on the signature page thereof and containing the receipt of the
Agent therefor on or following the signature page thereof shall be the original
executed counterpart of this Lease Supplement (the "Original Executed
                                                    -----------------
Counterpart").  To the extent that this Lease Supplement constitutes chattel
-----------
paper, as such term is defined in the Uniform Commercial Code as in effect in
any applicable jurisdiction, no security interest in this Lease Supplement may
be created through the transfer or possession of any counterpart other than the
Original Executed Counterpart.

     SECTION 7.  GOVERNING LAW.  THIS LEASE SUPPLEMENT SHALL BE GOVERNED BY AND
                 -------------
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF FLORIDA, BUT EXCLUDING ALL
OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES OF SUCH STATE, EXCEPT AS TO
MATTERS RELATING TO THE CREATION OF THE LEASEHOLD AND MORTGAGE ESTATES
HEREUNDER, AND THE EXERCISE OF RIGHTS AND REMEDIES WITH RESPECT THERETO, WHICH
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE IN
WHICH SUCH ESTATES ARE LOCATED.

     SECTION 8.  Counterpart Execution.  This Lease Supplement 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.

                                      A-2
<PAGE>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Lease
Supplement to be duly executed by an officer thereunto duly authorized as of the
date and year first above written.

Witnessed:                          ATLANTIC FINANCIAL GROUP, LTD.,
                                    as the Lessor

By:_______________________          By: Atlantic Financial Managers,
   Name:                                 Inc., its General Partner

By:_______________________            By:____________________________
   Name:                                 Name:
                                         Title:

Witnessed:                            [HUGHES SUPPLY, INC.], as Related
Lessee

By: ______________________            By:_____________________________
    Name:                                Name:
                                         Title:
By: ______________________
    Name:

                                      S-1
<PAGE>

STATE OF _________________  )
                            )  ss.:
COUNTY OF ________________  )

     The foregoing Lease Supplement was acknowledged before me, the undersigned
Notary Public, in the County of ______________, ____ ____, this _____ day of
__________, _______________, by _____________________, as ____________________
of Atlantic Financial Group, Ltd., on behalf of such partnership.

[Notarial Seal]               ___________________________
                                    Notary Public

My commission expires:  _____________

                                      N-1
<PAGE>

STATE OF FLORIDA    )
                    )  ss.:
COUNTY OF ORANGE    )

     The foregoing instrument was acknowledged before me this _____ day of
__________, 2001, by ____, as ______, of HUGHES SUPPLY, INC., a Florida
corporation, on behalf of said corporation.  He is personally known to me and
did not take an oath.

[Notarial Seal]               ______________________________
                              Notary Signature

                              ______________________________
                              Printed Name
                              Notary Public, State of Florida
                              Commission Number:
                              My commission expires:

                                      N-2
<PAGE>

Receipt of this original counterpart of the foregoing Lease Supplement is hereby
acknowledged as of the date hereof.

                                    SUNTRUST BANK,
                                    as the Agent

                                    By: __________________________
                                        Name:
                                        Title:

                                      S-3<PAGE>

                                                                Exhibit 10.14(a)

================================================================================

                                LOAN AGREEMENT

                           Dated as of June 22, 2001

                                     among

                        ATLANTIC FINANCIAL GROUP, LTD.
                            as Lessor and Borrower,

                   the financial institutions party hereto,

                                  as Lenders

                                      and

                                SUNTRUST BANK,
                                   as Agent

                                                               [STNTHETIC LEASE]

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>

                                                                                                                            Page
<S>                                                                                                                         <C>
SECTION 1  DEFINITIONS; INTERPRETATION......................................................................................   1

SECTION 2  AMOUNT AND TERMS OF COMMITMENTS; REPAYMENT AND PREPAYMENT OF LOANS...............................................   1
 SECTION 2.1  Commitment....................................................................................................   1
 SECTION 2.2  Notes.........................................................................................................   2
 SECTION 2.3  Scheduled Principal Repayment.................................................................................   2
 SECTION 2.4  Interest......................................................................................................   2
 SECTION 2.5  Allocation of Loans to Leased Properties......................................................................   3
 SECTION 2.6  Prepayment....................................................................................................   3

SECTION 3  RECEIPT, DISTRIBUTION AND APPLICATION OF CERTAIN PAYMENTS IN
           RESPECT OF LEASE AND LEASED PROPERTY;  RELEASE...................................................................   3
 SECTION 3.1  Distribution and Application of Rent Payments.................................................................   3
 SECTION 3.2  Distribution and Application of Purchase Payment..............................................................   3
 SECTION 3.3  Distribution and Application to Funding Party Balances of Lessee
              Payment of Recourse Deficiency Amount Upon Exercise of Remarketing Option.....................................   4
 SECTION 3.4  Distribution and Application to Funding Party Balances of
              Remarketing Proceeds of Leased Property.......................................................................   4
 SECTION 3.5  Distribution and Application of Payments Received When an
              Event of Default Exists or Has Ceased to Exist Following
              Rejection of the Lease........................................................................................   5
 SECTION 3.6  Distribution of Other Payments................................................................................   6
 SECTION 3.7  Timing of Agent Distributions.................................................................................   7
 SECTION 3.8  Release of Leased Properties..................................................................................   7

SECTION 4  THE LESSOR; EXERCISE OF REMEDIES UNDER LEASE.....................................................................   7
 SECTION 4.1  Covenant of Lessor............................................................................................   7
 SECTION 4.2  Lessor Obligations Nonrecourse; Payment from Certain Lease
              Obligations and Certain Proceeds of Leased Property Only......................................................   8
 SECTION 4.3  Exercise of Remedies Under the Lease..........................................................................   9

SECTION 5     LOAN EVENTS OF DEFAULT; REMEDIES..............................................................................  10
 SECTION 5.1  Loan Events of Default........................................................................................  10
 SECTION 5.2  Remedies......................................................................................................  11
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                                              <C>
SECTION 6     THE AGENT........................................................................................................  11
 SECTION 6.1  Appointment......................................................................................................  11
 SECTION 6.2  Delegation of Duties.............................................................................................  12
 SECTION 6.3  Exculpatory Provisions...........................................................................................  12
 SECTION 6.4  Reliance by Agent................................................................................................  12
 SECTION 6.5  Notice of Default................................................................................................  13
 SECTION 6.6  Non-Reliance on Agent and Other Lenders..........................................................................  13
 SECTION 6.7  Indemnification..................................................................................................  13
 SECTION 6.8  Agent in Its Individual Capacity.................................................................................  14
 SECTION 6.9  Successor Agent..................................................................................................  14

SECTION 7     MISCELLANEOUS....................................................................................................  15
 SECTION 7.1  Amendments and Waivers...........................................................................................  15
 SECTION 7.2  Notices..........................................................................................................  15
 SECTION 7.3  No Waiver; Cumulative Remedies...................................................................................  15
 SECTION 7.4  Successors and Assigns...........................................................................................  15
 SECTION 7.5  Counterparts.....................................................................................................  15
 SECTION 7.6  GOVERNING LAW....................................................................................................  15
 SECTION 7.7  Survival and Termination of Agreement............................................................................  15
 SECTION 7.8  Entire Agreement.................................................................................................  16
 SECTION 7.9  Severability.....................................................................................................  16
</TABLE>
<PAGE>

                                 EXHIBITS

EXHIBIT A      Form of Note

                                      -3-
<PAGE>

     THIS LOAN AGREEMENT (as it may be amended or modified from time to time in
accordance with the provisions hereof, this "Loan Agreement") dated as of June
                                             --------------
22, 2001 is among ATLANTIC FINANCIAL GROUP, LTD., a Texas limited partnership,
as Lessor and Borrower (the "Lessor"); SUNTRUST BANK and the other financial
                             ------
institutions which are, or may from time to time become, parties hereto as
lenders (the "Lenders") and SUNTRUST BANK, a Georgia banking corporation, as
              -------
agent for the Lenders (in such capacity, the "Agent").
                                              -----

                             PRELIMINARY STATEMENT

     In accordance with the terms and provisions of the Master Agreement, dated
as of June 22, 2001 (as amended, supplemented or otherwise modified from time to
time, the "Master Agreement"), among Hughes Supply, Inc., as Guarantor and as a
           ----------------
Lessee, certain Subsidiaries of Hughes Supply, Inc., as Lessees, the Lessor, the
Lenders and the Agent, the Lease, this Loan Agreement and the other Operative
Documents, (i) the Lessor contemplates acquiring the Leased Properties and
leasing the Leased Properties to the Lessees, (ii) Hughes, as Construction Agent
for the Lessor, wishes, in certain instances, to construct Buildings on the Land
for the Lessor and, when completed, to lease the Buildings, or to cause the
Buildings to be leased, from the Lessor as part of the Leased Properties under
the Lease, (iii) Hughes wishes to obtain, and the Lessor is willing to provide,
funding for the acquisition of the Land and any Buildings thereon or, in certain
instances, the construction of the Buildings, and (iv) the Lessor wishes to
obtain, and the Lenders are willing to provide, financing of a portion of the
funding for the acquisition of the Land and any Buildings thereon and, if
applicable, the construction of the Buildings.

     In consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     SECTION 1  DEFINITIONS; INTERPRETATION

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

     SECTION 2   AMOUNT AND TERMS OF COMMITMENTS; REPAYMENT AND PREPAYMENT OF
LOANS

     SECTION 2.1 Commitment.  (a)  Subject to the terms and conditions hereof
                 ----------
and of the Master Agreement, each Lender agrees to make term loans to the Lessor
("Loans") from time to time during the period from and including the Initial
  -----
Closing Date through the Funding Termination Date, on each Closing Date and on
each subsequent Funding Date, in the amounts required under Section 2.2 of the
Master Agreement.
<PAGE>

     SECTION 2.2 Note.  The Loans made by each Lender to the Lessor shall be
                 ----
evidenced by a note of the Lessor (the "Note"), substantially in the form of
                                        ----
Exhibit A with appropriate insertions, duly executed by the Lessor and payable
---------
to the order of the Agent, on behalf of the Lenders, and in a principal amount
equal to the aggregate Lenders' Commitment Percentages of the aggregate
Commitments (or, if less, the aggregate unpaid principal amount of all Loans,
made by the Lenders to the Lessor).  The Note shall be dated the Initial Closing
Date and delivered to the Agent in accordance with Section 3.2 of the Master
Agreement.  The Agent is hereby authorized to record the date and amount of each
Loan made by each Lender to the Lessor on the Note or in its records, and each
Lender is hereby authorized to record the date and amount of each Loan made by
such Lender to the Lessor in its records, but the failure by the Agent or any
Lender to so record such Loan shall not affect or impair any obligations with
respect thereto.  The Note shall (i) be stated to mature no later than the final
Lease Termination Date and (ii) bear interest from the date a Loan is made on
the unpaid principal amount thereof from time to time outstanding at the
applicable interest rate per annum determined as provided in, and payable as
specified in, Section 2.4.  Upon the occurrence of an Event of Default under
              -----------
clause (g) of Article XII of the Lease, or upon Acceleration as described in
Section 4.3(b) hereof, each Note shall automatically become due and payable in
--------------
full.

     SECTION 2.3  Scheduled Principal Repayment.  On the Lease Termination Date,
                  -----------------------------
the Lessor shall pay the aggregate unpaid principal amount of all Loans as of
such date.

     SECTION 2.4  Interest.  (a)  Each Loan related to a LIBOR Advance shall
                  --------
bear interest during each Rent Period at a rate equal to the sum of (i) the
Adjusted LIBO Rate for such Rent Period, computed using the actual number of
days elapsed and a 360 day year, plus (ii) the Applicable Margin per annum.
                                 ----
Each Loan related to a Base Rate Advance shall bear interest at a rate equal to
the Base Rate in effect from time to time, computed using the actual number of
days elapsed and a 360 day year.

     (b)  If all or a portion of the principal amount of or interest on the
Loans shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall, without limiting the
rights of the Lenders under Section 5, bear interest at the Overdue Rate, in
                            ---------
each case from the date of nonpayment until paid in full (after as well as
before judgment).

     (c)  Interest accruing on each Loan with respect to any Leased Property
during the Construction Term of such Leased Property shall, subject to the
limitations set forth in Section 2.3(c) of the Master Agreement, be added to the
principal amount of such Loan from time to time.  Following the date each Loan
is made (or in the case of Loans with respect to a Construction Land Interest,
the Construction Term Expiration Date), interest on such Loan shall be payable
in arrears on each Payment Date with respect thereto.

                                       2
<PAGE>

     (d)  Any change in the interest rate on the Loans resulting from a change
in the Base Rate shall become effective as of the opening of business on the day
on which such Base Rate changes as provided in the definition thereof.

     SECTION 2.5  Allocation of Loans to Leased Properties.  Pursuant to each
                  ----------------------------------------
Funding Request, each Loan shall be allocated to the Leased Property, the cost
of acquisition or construction of which the proceeds of such Loan are used to
pay.  For purposes of the Operative Documents, the "related Loans" with respect
to any Leased Property or Loans "related to" any Leased Property shall mean
those Loans allocated to such Leased Property as set forth in the foregoing
sentence.

     SECTION 2.6  Prepayment.  Except in conjunction with a payment by a Lessee
                  ----------
or the Construction Agent of the Lease Balance, a Construction failure Payment
or a Leased Property Balance pursuant to the terms of the Lease or the
Construction Agency Agreement, the Lessor shall have no right to prepay the
Loans.

     SECTION 3  RECEIPT, DISTRIBUTION AND APPLICATION OF CERTAIN PAYMENTS IN
RESPECT OF LEASE AND LEASED PROPERTY; RELEASE; SECURITY INTEREST

     SECTION 3.1  Distribution and Application of Rent Payments.
                  ---------------------------------------------

     (a)  Basic Rent. Each payment of Basic Rent (and any payment of interest on
          ----------
overdue installments of Basic Rent) received by the Agent shall be distributed
pro rata to the Funding Parties to be applied to the amounts of accrued and
unpaid interest (including overdue interest) on the Loans and accrued and unpaid
Yield (including overdue Yield).

     (b)  Supplemental Rent.  Each payment of Supplemental Rent received by the
          -----------------
Agent shall be paid to or upon the order of the Person owed the same in
accordance with the Operative Documents.

     SECTION 3.2  Distribution and Application of Purchase Payment.  With
                  ------------------------------------------------
respect to any Leased Property, the payment by a Lessee of:

          (a) the purchase price for a consummated sale of such Leased Property
     received by the Agent in connection with such Lessee's exercise of the
     Purchase Option or Partial Purchase Option under Section 14.1 of the Lease
     or such Lessee's or the Construction Agent's exercise of its option to
     purchase such Leased Property under Section 5.3 of the Construction Agency
     Agreement, or

          (b) the payment payable in connection with such Lessee's compliance
     with its obligation to purchase the Leased Property in accordance with
     Section 14.2 of the Lease, or

                                       3
<PAGE>

          (c) the Leased Property Balance therefor in accordance with Section
     10.1 or Section 10.2 of the Lease,

shall be distributed by Agent as promptly as possible, to the Funding Parties
pro rata in accordance with, and for application to, their respective Funding
--- ----
Party Balances in respect of such Leased Property or Properties.

     SECTION 3.3  Distribution and Application to Funding Party Balances of
                  ---------------------------------------------------------
Lessee Payment of Recourse Deficiency Amount Upon Exercise of Remarketing
-------------------------------------------------------------------------
Option. With respect to any Leased Property, the payment by a Lessee of the
------
Recourse Deficiency Amount to the Agent on the Lease Termination Date in
accordance with Section 14.6 or Section 14.7 of the Lease following the Lessees'
exercise of the Remarketing Option, shall be applied by the Agent to the accrued
and unpaid interest on, and the outstanding principal of, the Loans in respect
of such Leased Property. With respect to any Leased Property, the payment by the
Construction Agent of the Construction Failure Payment with respect thereto
pursuant to the Construction Agency Agreement shall be applied by the Agent,
first to the accrued and unpaid interest on, and the outstanding principal of,
-----
the Loans in respect of such Leased Property, and second to the accrued and
                                                  ------
unpaid Yield on, and outstanding Lessor's Invested Amount related to such Leased
Property.

     SECTION 3.4  Distribution and Application to Funding Party Balances of
                  ---------------------------------------------------------
Remarketing Proceeds of Leased Property.  (a) Any payments payable to and
---------------------------------------
received by the Lessor in accordance with the terms of the Lease as proceeds
from the sale of any Leased Property sold pursuant to the Lessees' exercise of
the Remarketing Option pursuant to Section 14.6 or 14.7 of the Lease, shall be
distributed (or applied, in the case of amounts payable to the Lessor) by the
Lessor as promptly as possible (it being understood that any such payment
received by the Lessor on a timely basis and in accordance with the provisions
of the Lease shall be distributed on the date received in the funds so received)
in the following order of priority:

          first, to the extent not previously deducted from such proceeds, to
          -----
     the Agent and the Funding Parties as reimbursement for any and all
     reasonable remarketing, sale, closing or other transfer costs, prorations
     or commissions (including broker fees, appraisal costs, legal fees and
     expenses and transfer taxes), paid or incurred by the Agent or any Funding
     Party and not reimbursed by the Lessees, pro rata according to the amount
                                              --- ----
     of such costs and fees;

          second, to the Lenders pro rata for application to their remaining
          ------                 --- ----
     Funding Party Balances in respect of all of the Leased Properties, an
     amount equal to their  such remaining Funding Party Balances in respect of
     all of the Leased Properties;

                                       4
<PAGE>

          third, to the Lessor for application to the Lessor's Invested Amounts
          -----
     in respect of all of the Leased Properties, an amount equal to the Lessor's
     Invested Amounts in respect of all of the Leased Properties; and

          fourth, to the related Lessee(s) or the Person or Persons otherwise
          ------
     legally entitled thereto.

     (b)  Any payments payable to and received by the Lessor in accordance with
the Construction Agency Agreement as proceeds from the sale of any Leased
Property sold following the payment of the Construction Failure Payment shall be
distributed (or applied, as appropriate) by the Lessor as promptly as possible
(it being understood that any such payment received by the Lessor on a timely
basis and in accordance with the provisions of the Construction Agency Agreement
shall be distributed on the date received in the funds so received) in the
following order of priority:

          first, to the extent not previously deducted from such proceeds, to
          -----
     the Funding Parties or the Agent, as the case may be, in reimbursement of
     all reasonable costs, expenses and taxes, if any, incurred by any of them
     to complete the construction of such Leased Property, maintain and insure
     such Leased Property, remarket such Leased Property and sell such Leased
     Property, pro rata according to the amount of such costs, expenses and
               --- ----
     taxes;

          second, to the Funding Parties pro rata for application to their
          ------                         --- ----
     Funding Party Balances in respect to such Leased Property, an amount equal
     to such Funding Party Balances in respect of such Leased Property;

          third, to the Construction Agent or the Person or Persons otherwise
          -----
     legally entitled thereto.

     SECTION 3.5  Distribution and Application of Payments Received When an
                  ---------------------------------------------------------
Event of Default Exists or Has Ceased to Exist Following Rejection of the
Lease.

     (a)  Proceeds of Leased Property.  Any payments received by the Lessor or
          ---------------------------
the Agent when an Event of Default exists (or has ceased to exist by reason of a
rejection of the Lease in a proceeding with respect to a Lessee described in
Article XII (g) of the Lease), as

          (i)  proceeds from the sale of any or all of the Leased Property sold
     pursuant to the exercise of the Lessor's remedies pursuant to Article XIII
     of the Lease, or

          (ii)  proceeds of any amounts from any insurer or any Governmental
     Authority in connection with an Event of Loss or Event of Taking

                                       5
<PAGE>

shall if received by the Lessor be paid to the Agent as promptly as possible,
and shall be distributed or applied in the following order of priority prior to
the Release Date:

          first, to the Agent for any amounts reasonably expended by it in
          -----
     connection with such Leased Property or the Operative Documents and not
     previously reimbursed to it;

          second, to the Funding Parties pro rata for application to their
          ------                         --- ----
     Funding Party Balances in respect of all of the Leased Properties, an
     amount equal to such Funding Party Balances; and

          third, to the related Lessee or the Person or Persons otherwise
          -----
     legally entitled thereto, the excess, if any; and

on and after such Release Date (and any application otherwise required under
this Section 3 has been made) such amounts shall be paid over to the Lessor and
     ---------
shall be distributed or applied by the Lessor, first to the Lessor for
                                               -----
application to any amounts owed to it in respect of such Leased Property, and
second to the related Lessee or the Person or Persons otherwise legally entitled
------
thereto, the excess, if any.

     (b)  Proceeds of Recoveries from Lessee.  Any payments received by any
          ----------------------------------
Funding Party when an Event of Default exists (or has ceased to exist by reason
of a rejection of the Lease in a proceeding with respect to a Lessee described
in Article XII(g) of the Lease), from a Lessee as a payment in accordance with
the Lease shall be paid to the Agent as promptly as possible, and shall then be
distributed or applied by the Agent as promptly as possible in the order of
priority set forth in paragraph (a) above.
                      -------------

     SECTION 3.6  Distribution of Other Payments.  All payments under Section
                  ------------------------------
7.6 of the Master Agreement shall be made first, to the Funding Parties, pro
                                          -----                          ---
rata, until their Funding Party Balances have been paid in full, and second, to
----                                                                 ------
the Lessor who shall be entitled to retain all such remaining amounts.  Except
as otherwise provided in this Section 3, any payment received by the Lessor
                              ---------
which is to be paid to Agent pursuant hereto or for which provision as to the
application thereof is made in an Operative Document but not elsewhere in this
Section 3 shall, if received by the Lessor, be paid forthwith to the Agent and
---------
when received shall be distributed forthwith by the Agent to the Person and for
the purpose for which such payment was made in accordance with the terms of such
Operative Document.

     SECTION 3.7  Timing of Agent Distributions.  Payments received by the Agent
                  -----------------------------
in immediately available funds before 12:00 p.m. (noon), Atlanta, Georgia time,
on any Business Day shall be distributed to the Funding Parties in accordance
with and to the extent provided in this Section 3 on such Business Day.
                                        ---------
Payments received by the Agent in immediately available funds after 12:00 p.m.
(noon), Atlanta, Georgia time shall be distributed to the Funding Parties in
accordance with and to the extent provided in this Section 3 on the next
                                                   ---------
Business Day.

                                       6
<PAGE>

     SECTION 3.8 Release of Leased Properties. (a) If one or more of the Lessees
                 ----------------------------
shall at any time purchase any or all of the Leased Properties pursuant to
Section 13.3 or Article 14 of the Lease, or if any or all of the Leased
Properties shall be sold in accordance with, and the Lessees otherwise satisfy
each of the obligations and conditions set forth in, Section 14.6 of the Lease
in respect thereof, then, upon application of such amounts to prepay the related
Loans pursuant to Section 2.6 and the Agent's and the Lenders' receipt of all
accrued interest and any other payments due and owing from the Lessees and/or
the Lessor to the Agent and the Lenders on such date in respect thereof, such
Leased Property or Properties, as the case may be, shall be released from the
applicable Mortgage and the Assignment of Lease and Rents, to the extent
relating to such Leased Property or Properties.

          (b)  Upon the termination of the Lenders' Commitments and the payment
in full of all of the Loans and all other amounts owing by the Lessees and/or
the Lessor hereunder or under any other Operative Document to the Lessor, the
Agent and the Lenders (other than unasserted indemnities), the Leased Properties
shall be released from the Mortgages and Assignments of Lease and Rents.

          (c)  Upon request of the Lessor or a Lessee following a release of any
Leased Property described in clause (a) or (b) above, the Agent shall, at the
                             ----------    ---
sole cost and expense of the Lessees, execute and deliver to the Lessor or the
requesting Lessee such documents as the Lessor or such Lessee shall reasonably
request to evidence such release, including, if requested, a release of the
Assignments of Lease and Rents to the extent relating to such Leased Property.

          (d)  Upon the termination of the Lenders' Commitments and the payment
in full of all of the Loans and all other amounts owing to the Lenders hereunder
or under any other Operative Document and the Lessor's Invested Amounts and all
other amounts owing to the Lessor and the Agent under the Operative Documents
(other than unasserted indemnities), all remaining moneys shall be paid out to
Hughes.

     SECTION 4 THE LESSOR; EXERCISE OF REMEDIES UNDER LEASE

                                       7
<PAGE>

     SECTION 4.1 Covenant of Lessor. So long as any Lender's Commitment remains
                 ------------------
in effect, any Loan remains outstanding and unpaid or any other amount is owing
to any Lender with respect to its Funding Party Balances, subject to Section
                                                                     -------
4.2, the Lessor will promptly pay all amounts payable by it under this Loan
---
Agreement and the Notes issued by it in accordance with the terms hereof and
thereof and shall duly perform each of its obligations under this Loan Agreement
and the Note. The Lessor agrees to provide to the Agent a copy of each estoppel
certificate that the Lessor proposes to deliver pursuant to Section 17.13 of the
Lease at least five (5) days prior to such delivery and to make any corrections
thereto reasonably requested by the Agent prior to such delivery. The Lessor
shall keep each Leased Property owned by it free and clear of all Lessor Liens.
The Lessor shall not reject any sale of any Leased Property pursuant to Section
14.6 of the Lease unless all of the related Loans have been paid in full or the
Lenders consent to such rejection. In the event that the Lenders reject any sale
of any Leased Property pursuant to Section 14.6 of the Lease, the Lessor agrees
to take such action as the Lenders reasonably request to effect a sale or other
disposition of such Leased Property, provided that the Lessor shall not be
                                     --------
required to expend its own funds in connection with such sale or disposition. In
the event that the Construction Agent returns any Leased Property to the Lessor
pursuant to Section 5.3(a) of the Construction Agency Agreement, unless all of
the related Loans are paid in full, the Lessor agrees to take such action as the
Lenders reasonably request to complete the Construction, or to effect a sale or
other disposition, of such Leased Property, provided that the Lessor shall not
                                            --------
be required to expend its own funds in connection therewith. During the
Construction Term for each Leased Property, the Lessor agrees to assume
liability for, and to indemnify, protect, defend, save and hold harmless the
Agent, each Lender and each of their respective Affiliates, successors, assigns,
employees, officers and directors, 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 the Agent or any Lender, in any way relating to or arising
out of the circumstances set forth in Section 7.1 or 7.4 of the Master
Agreement, provided that the Lessor shall only be obligated pursuant to this
           --------
sentence to the extent that the Lessor receives payment from the Construction
Agent or any other Person with respect to such Claim.

     SECTION 4.2 Lessor Obligations Nonrecourse; Payment from Certain Lease
                 ----------------------------------------------------------
Obligations and Certain Proceeds of Leased Property Only. All payments to be
--------------------------------------------------------
made by the Lessor in respect of the Loans, the Note and this Loan Agreement
shall be made only from certain payments received under the Lease, the Guaranty
Agreement, the Subsidiary Guaranty and the Construction Agency Agreement and
certain proceeds of the Leased Properties and only to the extent that the Lessor
or the Agent shall have received sufficient payments from such sources to make
payments in respect of the Loans in accordance with Section 3.  Each Lender
                                                    ---------
agrees that it will look solely to such sources of payments to the extent
available for distribution to such Lender as herein provided and that neither
the Lessor nor the Agent is or shall be personally liable to any Lender for any
amount payable hereunder or under the Note.  Nothing in this Loan Agreement, the
Note or any other Operative Document shall be construed as creating any
liability (other than for willful misconduct, gross negligence or
misrepresentation) of the Lessor individually to pay any sum or to perform any
covenant, either express or implied, in this Loan Agreement, the Note or any
other Operative Documents (all such liability, if any, being expressly waived by
each Lender)

                                       8
<PAGE>

and that each Lender, on behalf of itself and its successors and assigns, agrees
in the case of any liability of the Lessor hereunder or thereunder (except for
such liability attributable to its willful misconduct, gross negligence or
misrepresentation) that it will look solely to those certain payments received
under the Lease, the Guaranty Agreement, the Subsidiary Guaranty and the
Construction Agency Agreement and those certain proceeds of the Leased
Properties, provided, however, that the Lessor in its individual capacity shall
            --------  -------
in any event be liable with respect to (i) the removal of Lessor's Liens or
involving its gross negligence, willful misconduct or misrepresentation or (ii)
failure to turn over payments the Lessor has received in accordance with Section
                                                                         -------
3; and provided further that the foregoing exculpation of the Lessor shall not
-      -------- -------
be deemed to be exculpations of the Guarantor, any Lessee or any other Person.

     SECTION 4.3 Exercise of Remedies Under the Lease.
                 ------------------------------------

     (a)  Event of Default. With respect to any Potential Event of Default as to
          ----------------
which notice thereof by the Lessor to a Lessee is a requirement to cause such
Potential Event of Default to become an Event of Default, the Lessor agrees to
give such notice to such Lessee promptly upon receipt of a written request by
any Lender or the Agent.  The Lessor shall not, without the prior written
consent of the Required Lenders, waive any Event of Default.

     (b)  Acceleration of Lease Balance. When an Event of Default exists, the
          -----------------------------
Lessor shall exercise such remedies as shall be permitted by the Operative
Documents or Applicable Law and directed by the Required Lenders, including
demanding payment in full of the amounts owed by the Lessees under the Operative
Documents (the "Acceleration").  The Lessor shall consult with the Lenders
                ------------
regarding actions to be taken in response to such Event of Default.  The Lessor
(1) shall not, without the prior written consent of the Required Lenders and (2)
shall (subject to the provisions of this Section), if so directed by the
                                         -------
Required Lenders, do any of the following:  commence eviction or foreclosure
proceedings, or file a lawsuit against any Lessee under the Lease, or sell the
Leased Properties, or exercise other remedies against the Lessees or the
Guarantor under the Operative Documents in respect of such Event of Default;
provided, however, that any payments received by the Lessor shall be distributed
--------  -------
in accordance with Section 3.  Notwithstanding any such consent, direction or
                   ---------
approval by the Required Lenders of any such action or omission, the Lessor
shall not have any obligation to follow such direction if the same would, in the
Lessor's reasonable judgment, require the Lessor to expend its own funds or
expose the Lessor to expense, or unless Required Lenders provide to the Lessor
an indemnity, in form and substance reasonably acceptable to the Lessor, for
such liability, loss or damage or unless and until the Lenders advance to the
Lessor an amount which is sufficient, in the Lessor's reasonable judgment, to
cover such liability, expense, loss or damage (excluding the Lessor's pro rata
share thereof, if any).  Notwithstanding the foregoing, on and after the related
Release Date (and any application otherwise required under Section 3 has been
                                                           ---------
made): the Lenders shall have no rights to such Leased Property or any proceeds
thereof; the Lenders shall have no rights to direct or give consent to any
actions with respect to such Leased Property and the proceeds thereof; the
Lessor shall have absolute discretion (but in all events subject to the terms of
the Operative Documents) with respect to such exercise of remedies with respect
to such Leased Property, and the proceeds thereof, including, without
limitation, any foreclosure or sale of such Leased

                                       9
<PAGE>

Property; and the Lessor shall have no liability to the Lenders with respect to
the Lessor's actions or failure to take any action with respect to such Leased
Property.

     SECTION 5 LOAN EVENTS OF DEFAULT; REMEDIES

     SECTION 5.1 Loan Events of Default. Each of the following events shall
                 ----------------------
constitute a Loan Event of Default (whether any such event shall be voluntary or
involuntary or come about or be effected by operation of law or pursuant to or
in compliance with any judgment, decree or order of any court or any order, rule
or regulation of any Governmental Authority) and each such Loan Event of Default
shall continue so long as, but only as long as, it shall not have been remedied:

          (a)  Lessor shall fail to distribute in accordance with the provisions
     of Section 3 any amount received by the Lessor pursuant to any Lease or the
        ---------
     Master Agreement within two (2) Business Days of receipt thereof if and to
     the extent that the Agent or the Lenders are entitled to such amount or a
     portion thereof; or

          (b)  the Lessor shall fail to pay to the Agent, within two (2)
     Business Days of the Lessor's receipt thereof, any amount which a Lessee is
     required, pursuant to the Operative Documents, to pay to the Agent but
     erroneously pays to the Lessor; or

          (c)  failure by the Lessor to perform in any material respect any
     other covenant or condition herein or in any other Operative Document to
     which the Lessor is a party, which failure shall continue unremedied for
     thirty (30) days after receipt by the Lessor of written notice thereof from
     the Agent or any Lender; or

          (d)  any representation or warranty of the Lessor contained in any
     Operative Document or in any certificate required to be delivered
     thereunder shall prove to have been incorrect in a material respect when
     made and shall not have been cured within thirty (30) days of receipt by
     the Lessor of written notice thereof from the Agent or any Lender; or

          (e)  the Lessor or the General Partner shall become bankrupt or make
     an assignment for the benefit of creditors or consent to the appointment of
     a trustee or receiver; or a trustee or a receiver shall be appointed for
     the Lessor or the General Partner or for substantially all of its property
     without its consent and shall not be dismissed or stayed within a period of
     ninety (90) days; or bankruptcy, reorganization or insolvency proceedings
     shall be instituted by or against the Lessor or the General Partner and, if
     instituted against the Lessor or the General Partner, shall not be
     dismissed or stayed for a period of ninety (90) days; or

          (f)  any Event of Default shall occur and be continuing.

                                      10
<PAGE>

     SECTION 5.2 Remedies.
                 --------

     (a)  Upon the occurrence of a Loan Event of Default hereunder, (i) if such
event is a Loan Event of Default specified in clause (e) of Section 5.1 with
                                              ----------    -----------
respect to the Lessor, automatically the Lenders' Commitments shall terminate
and the outstanding principal of, and accrued interest on, the Loans shall be
immediately due and payable, and (ii) if such event is any other Loan Event of
Default, upon written request of the Required Lenders, the Agent shall, by
notice of default to the Lessor, declare the Commitments of the Lenders to be
terminated forthwith and the outstanding principal of, and accrued interest on,
the Loans to be immediately due and payable, whereupon the Commitments of the
Lenders shall immediately terminate and the outstanding principal of, and
accrued interest on, the Loans shall become immediately due and payable.

     (b)  When a Loan Event of Default exists, the Agent may, and upon the
written instructions of the Required Lenders shall, exercise any or all of the
rights and powers and pursue any and all of the remedies available to it
hereunder, under the Note, the Mortgages and the Assignments of Lease and Rents
and shall have and may exercise any and all rights and remedies available under
the Uniform Commercial Code or any provision of law.  When a Loan Event of
Default exists, the Agent may, and upon the written instructions of the Required
Lenders shall, have the right to exercise all rights of the Lessor under the
Lease pursuant to the terms and in the manner provided for in the Mortgages and
the Assignments of Lease and Rents.

     (c)  Except as expressly provided above, no remedy under this Section 5.2
                                                                   -----------
is intended to be exclusive, but each shall be cumulative and in addition to any
other remedy provided under this Section 5.2 or under the other Operative
                                 -----------
Documents or otherwise available at law or in equity.  The exercise by the Agent
or any Lender of any one or more of such remedies shall not preclude the
simultaneous or later exercise of any other remedy or remedies.  No express or
implied waiver by the Agent or any Lender of any Loan Event of Default shall in
any way be, or be construed to be, a waiver of any future or subsequent Loan
Event of Default.  The failure or delay of the Agent or any Lender in exercising
any rights granted it hereunder upon any occurrence of any of the contingencies
set forth herein shall not constitute a waiver of any such right upon the
continuation or recurrence of any such contingencies or similar contingencies
and any single or partial exercise of any particular right by the Agent or any
Lender shall not exhaust the same or constitute a waiver of any other right
provided herein.

                                      11
<PAGE>

     SECTION 6 THE AGENT

     SECTION 6.1 Appointment.  Each Lender hereby irrevocably designates and
                 -----------
appoints the Agent as the agent of such Lender under this Loan Agreement and the
other Operative Documents, and each such Lender irrevocably authorizes the
Agent, in such capacity, to take such action on its behalf under the provisions
of this Loan Agreement and the other Operative Documents and to exercise such
powers and perform such duties as are expressly delegated to the Agent by the
terms of this Loan Agreement and the other Operative Documents, together with
such other powers as are reasonably incidental thereto.  Notwithstanding any
provision to the contrary elsewhere in this Loan Agreement, the Agent shall not
have any duties or responsibilities, except those expressly set forth herein, or
any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Loan Agreement or any other Operative Document or otherwise exist against the
Agent.

     SECTION 6.2 Delegation of Duties.  The Agent may execute any of its duties
                 --------------------
under this Loan Agreement and the other Operative Documents by or through agents
or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

     SECTION 6.3 Exculpatory Provisions.  Neither the Agent nor any of its
                 ----------------------
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(a) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Loan Agreement or any other Operative
Document (except for its or such Person's own gross negligence or willful
misconduct) or (b) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Lessor or any
Lessee or any officer thereof contained in this Loan Agreement or any other
Operative Document or in any certificate, report, statement or other document
referred to or provided for in, or received by the Agent under or in connection
with, this Loan Agreement or any other Operative Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Loan
Agreement or any other Operative Document or for any failure of the Lessor or
any Lessee to perform its obligations hereunder or thereunder.  The Agent shall
not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Loan Agreement or any other Operative Document, or to inspect the
properties, books or records of the Lessor, the Guarantor or any Lessee.

     SECTION 6.4 Reliance by Agent.  The Agent shall be entitled to rely, and
                 -----------------
shall be fully protected in relying, upon any writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Lessor or any Lessee), independent accountants and
other experts selected by the Agent.

                                      12
<PAGE>

The Agent may deem and treat the payee of the Note as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the Agent. The Agent shall be fully justified in
failing or refusing to take any action under this Loan Agreement or any other
Operative Document unless it shall first receive such advice or concurrence of
the Required Lenders as it deems appropriate or it shall first be indemnified to
its satisfaction by the Funding Parties against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. Subject to the Operative Documents, the Agent shall in all
cases be fully protected in acting, or in refraining from acting, under this
Loan Agreement and the other Operative Documents in accordance with a request of
the Required Lenders, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders and all future holders of
an interest in the Note.

     SECTION 6.5 Notice of Default. The Agent shall not be deemed to have
                 -----------------
knowledge or notice of the occurrence of any Loan Potential Event of Default or
Loan Event of Default hereunder unless the Agent has received notice from a
Lender referring to this Loan Agreement, describing such Loan Potential Event of
Default or Loan Event of Default and stating that such notice is a "notice of
default".  In the event that the Agent receives such a notice, the Agent shall
give notice thereof to the Lenders.  The Agent shall take such action, subject
to the Operative Documents with respect to such Loan Potential Event of Default
or Loan Event of Default as shall be reasonably directed by the Required
Lenders; provided that unless and until the Agent shall have received such
         --------
directions, the Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Loan Potential Event of
Default or Loan Event of Default as it shall deem advisable in the best
interests of the Lenders.

     SECTION 6.6 Non-Reliance on Agent and Other Lenders. Each Lender expressly
                 ---------------------------------------
acknowledges that neither the Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations
or warranties to it and that no act by the Agent hereinafter taken, including
any review of the affairs of the Lessor, the Guarantor or any Lessee, shall be
deemed to constitute any representation or warranty by the Agent to any Lender.
Each Lender represents to the Agent that it has, independently and without
reliance upon the Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Lessor, the Guarantor and each Lessee and
made its own decision to make its Loans hereunder and enter into this Loan
Agreement. Each Lender also represents that it will, independently and without
reliance upon the Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Loan Agreement and the other Operative Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Lessor, the Guarantor and each Lessee. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Agent
hereunder, the Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, operations,
property, condition

                                      13
<PAGE>

(financial or otherwise), prospects or creditworthiness of the Lessor, the
Guarantor or any Lessee which may come into the possession of the Agent or any
of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

     SECTION 6.7  Indemnification.  The Lenders agree to indemnify the Agent in
                  ---------------
its capacity as such (to the extent not reimbursed by a Lessee and without
limiting the obligation of any Lessee to do so), ratably according to the
percentage each Lender's Commitment bears to the total Commitments of all of the
Lenders on the date on which indemnification is sought under this Section 6.7
                                                                  -----------
(or, if indemnification is sought after the date upon which the Lenders'
Commitments shall have terminated and the Loans shall have been paid in full,
ratably in accordance with the percentage that each Lender's Commitment bears to
the Commitments of all of the Lenders immediately prior to such date), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments,  suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time
following the payment of the Note) be imposed on, incurred by or asserted
against the Agent in any way relating to or arising out of, the Commitments,
this Loan Agreement, any of the other Operative Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the Agent under
or in connection with any of the foregoing; provided that no Lender shall be
                                            --------
liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the Agent's gross negligence or willful misconduct.  The
agreements in this Section 6.7 shall survive the payment of the Note and all
                   -----------
other amounts payable hereunder.

     SECTION 6.8  Agent in Its Individual Capacity.  The Agent and its
                  --------------------------------
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Lessor, the Guarantor or any Lessee as though the
Agent were not the Agent hereunder and under the other Operative Documents.
With respect to Loans made or renewed by it, the Agent shall have the same
rights and powers under this Loan Agreement and the other Operative Documents as
any Lender and may exercise the same as though it were not the Agent, and the
terms "Lender" and "Lenders" shall include the Agent in its individual capacity.
Each Lender acknowledges that the Agent in its individual capacity has had and
continues to have other business relations and transactions with Hughes, Hughes'
Affiliates and the Lessor.

     SECTION 6.9  Successor Agent.  The Agent may resign as Agent upon 20 days'
                  ---------------
notice to the Lenders effective upon the appointment of a successor agent.  If
the Agent shall resign as Agent under this Loan Agreement and the other
Operative Documents, then the Required Lenders shall appoint a successor agent
for the Lenders, which successor agent shall be a commercial bank organized
under the laws of the United States of America or any State thereof or under the
laws of another country which is doing business in the United States of America
and having a combined capital, surplus and undivided profits of at least
$100,000,000, whereupon such successor agent shall succeed to the rights, powers
and duties of the Agent, and the term "Agent" shall mean such successor agent
effective upon such appointment and approval, and the

                                      14
<PAGE>

former Agent's rights, powers and duties as Agent shall be terminated, without
any other or further act or deed on the part of such former Agent or any of the
parties to this Loan Agreement or any holders of an interest in the Note. After
any retiring Agent's resignation as Agent, all of the provisions of this Section
                                                                         -------
6 shall inure to its benefit as to any actions taken or omitted to be taken by
-
it while it was Agent under this Loan Agreement and the other Operative
Documents.

     SECTION 7  MISCELLANEOUS

     SECTION 7.1  Amendments and Waivers.  Neither this Loan Agreement, the
                  ----------------------
Note, nor any terms hereof or thereof may be amended, supplemented or modified
except in accordance with the provisions of Section 8.4 of the Master Agreement.

     SECTION 7.2  Notices.  Unless otherwise specified herein, all notices,
                  -------
requests, demands or other communications to or upon the respective parties
hereto shall be given in accordance with Section 8.2 of the Master Agreement.

     SECTION 7.3  No Waiver; Cumulative Remedies.  No failure to exercise and no
                  ------------------------------
delay in exercising, on the part of the Agent or any Lender, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law.  The provisions of Section 8.11 of the Master
Agreement shall apply to this Loan Agreement.

     SECTION 7.4  Successors and Assigns.  This Loan Agreement shall be binding
                  ----------------------
upon and inure to the benefit of the Lessor, the Agent, the Lenders, all future
holders of or interest in the Note and their respective successors and permitted
assigns.

     SECTION 7.5  Counterparts.  This Loan Agreement may be executed by one or
                  ------------
more of the parties to this Loan Agreement on any number of separate
counterparts and all of said counterparts taken together shall be deemed to
constitute one and the same agreement.  A set of the counterparts of this Loan
Agreement signed by all the parties hereto shall be lodged with the Lessor and
the Agent.

     SECTION 7.6  GOVERNING LAW.  THIS LOAN AGREEMENT AND THE NOTE AND THE
                  -------------
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS LOAN AGREEMENT AND THE NOTES
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF FLORIDA.

     SECTION 7.7  Survival and Termination of Agreement.  All covenants,
                  -------------------------------------
agreements, representations and warranties made herein and in any certificate,
document or statement

                                      15
<PAGE>

delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Loan Agreement, and the Note and shall continue in full
force and effect so long as the Note or any amount payable to any Lender under
or in connection with this Loan Agreement or the Note is unpaid, at which time
this Loan Agreement shall terminate.

     SECTION 7.8  Entire Agreement.  This Loan Agreement and the other Operative
                  ----------------
Documents set forth the entire agreement of the parties hereto with respect to
its subject matter, and supersedes all previous understandings, written or oral,
with respect thereto.

     SECTION 7.9  Severability. Any provision of this Loan Agreement or of the
                  ------------
Note which is prohibited, unenforceable or not authorized in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition, unenforceability or non-authorization without invalidating the
remaining provisions hereof or thereof or affecting the validity, enforceability
or legality of any such provision in any other jurisdiction.

                                      16
<PAGE>

     IN WITNESS THEREOF, the parties hereto have caused this Loan Agreement to
be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

                              SUNTRUST BANK, as Agent

                              By: ______________________________
                                  Name:_________________________
                                  Title:________________________

                                                                 LOAN AGREEMENT
                                                                 SYNTHETIC LEASE

                                      S-1
<PAGE>

                              ATLANTIC FINANCIAL GROUP, LTD., as
                              Lessor and Borrower

                              By:  Atlantic Financial Managers, Inc.,
                                   its General Partner

                                   By: _________________________
                                       Name: Stephen Brookshire
                                       Title: President

                                                                 LOAN AGREEMENT
                                                                 SYNTHETIC LEASE

                                      S-2
<PAGE>

                                SUNTRUST BANK,
                                as a Lender

                                By:_______________________
                                   Name:__________________
                                   Title:_________________

                                                                 LOAN AGREEMENT
                                                                 SYNTHETIC LEASE

                                      S-3

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