Document:

EX-10.1

Exhibit 10.1

September 2, 2008

Urdang/IPA Montvale, LLC

c/o Ivy Realty Services, LLC

One Paragon Drive

Suite 125

Montvale, New Jersey 07645

	Attention:		Mr. Anthony P. DiTommaso, Jr.,

President

Dear Mr. DiTommaso:

     Reference is made to that certain Lease dated April 23, 2007, between Urdang/IPA Montvale,
LLC, as lessor (“Lessor”), and Barr Laboratories, Inc., as lessee (“Lessee”), for certain premises
located at 225 Summit Avenue, Montvale, New Jersey, as amended by Letter Agreement dated May 10,
2007 and Letter Agreement dated May 15, 2008 (collectively, “Lease”). Any capitalized terms not
defined in this letter agreement (“Letter Agreement”) shall have the meanings as set forth in the
Lease.

     WHEREAS, pursuant to the Lease, the parties contemplated that Lessor would add approximately
40,000 to 60,000 square feet of additional gross leasable area to the Building, which addition
would become part of the Premises, subject to the terms and conditions of the Lease; and

     WHEREAS, Lessor has undertaken certain activities in furtherance of the Expansion Space
Obligation (as defined below), including, but not limited to, procuring certain of the necessary
permits and approvals, as set forth on Schedule A attached hereto and made a part hereof
(collectively, “Existing Expansion Space Approvals”), and developing plans and specifications for
the construction of an addition to the Building consisting of 60,000 square feet of gross leasable
area (“Expansion Space”), as set forth on Schedule B attached hereto and made a part hereof
(collectively, “Plans”); and

     WHEREAS, Lessor has agreed to use commercially reasonable efforts to maintain, renew and seek
extensions of the Existing Expansion Space Approvals, at its sole cost and expense, during the Term
of the Lease, unless Lessee has elected to withdraw the Option Notice (as hereinafter defined); and

     WHEREAS, the parties desire to amend the Lease to extinguish Lessor’s obligation to construct the
Expansion Space (“Expansion Space Obligation”) and convert

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 2

same to an option, exercisable solely by Lessee, for the construction of the expansion space
and the leasing of the Expansion Space by Lessee from Lessor (“Expansion Space Option”).

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each of the undersigned hereby agrees as follows:

     1. Expansion Space Option.

	 	(a)	 	Exercise of Option. Lessee shall have the right, at
its sole option, to construct and lease the Expansion Space; it being
understood and agreed that Lessor shall not be obligated to construct the
Expansion Space. If Lessee desires to lease the Expansion Space, Lessee shall
deliver a notice to Lessor of its intent to exercise the Expansion Space Option
(“Option Notice”). In the event that Lessee gives the Option Notice, then
Lessor shall meet with Lessee to discuss the possibility of Lessor performing
the construction of the Expansion Space, pursuant to mutually acceptable terms
and conditions; it being understood and agreed that such meeting shall in no
way obligate Lessor to construct the Expansion Space. In the event Lessor and
Lessee are unable to agree upon mutually acceptable terms under which Lessor
shall construct the Expansion Space, then, Lessee may, but shall not be
obligated to, construct the Expansion Space, at Lessee’s sole cost and expense,
in which case, the rights to the Existing Expansion Space Approvals and the
Plans shall be promptly transferred or assigned and delivered by Lessor to
Lessee, for the remainder of the Term, if and to the extent permitted by
applicable law, and without cost or expense to Lessee, after request by Lessee
therefor. Notwithstanding the foregoing, however, Lessor shall use
commercially reasonable efforts to maintain, renew and seek extensions of the
Existing Expansion Space Approvals, at its sole cost and expense (regardless of
whether Lessor or Lessee constructs the Expansion Space). Except for Lessor’s
obligations to transfer or assign and deliver the Existing Expansion Space
Approvals (and to incur costs and expenses to maintain, renew and seek
extensions thereof) and the Plans, any and all costs associated with the
construction of the Expansion Space, including, without limitation, the posting
of any bonds and escrows and the payment of any Mt. Laurel or COAH fees, shall
be borne by the party who is
responsible for the construction of the Expansion Space. If Lessee does not
give the Option Notice, the Expansion Space shall not be

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 3

	 	 	 	constructed for
Lessee’s benefit; provided, however, Lessor shall retain the right to
construct the Expansion Space, at its sole cost and expense, and thereafter
lease the Expansion Space to any third party (other than Lessee or an
Affiliate of Lessee), only if Lessee consents to same, which consent shall
be in Lessee’s sole and absolute discretion.
	 
	 	(b)	 	Amendment to Article 52 of the Lease. Article 52 of
the Lease shall be deleted in its entirety and replaced with the following:

“52. EXPANSION SPACE:

It is understood that Lessor has procured certain of the permits and approvals which are
necessary to construct the Expansion Space (as such term is defined in that certain Letter
Agreement dated September 2, 2008 (the “Letter Agreement”) and add same to the Building, as
set forth on Schedule A attached to the Letter Agreement (collectively, “Existing Expansion
Space Approvals”). Upon Lessee’s request, Lessor shall provide Lessee with copies of all
applications, permits and/or approvals delivered to or received from any governmental and/or
quasi-governmental entities in connection therewith. Upon delivery by Lessee of the Option
Notice (as such term is defined in the Letter Agreement), Lessor or Lessee, as the case may
be, shall obtain all remaining approvals pertaining to the Expansion Space (“Remaining
Expansion Space Approvals”; Remaining Expansion Space Approvals and Existing Expansion Space
Approvals, collectively, “Expansion Space Approvals”). Lessor agrees that it shall not
materially alter or modify the Plans (as such term is defined in the Letter Agreement)
without Lessee’s prior consent, which consent shall not be unreasonably withheld,
conditioned or delayed; however, Lessor shall have the right to make any non-material
alterations or modifications without Lessee’s prior consent thereto, but however, upon
notice to Lessee. If Lessor agrees to construct the Expansion Space, Lessor and Lessee
shall negotiate the new terms and conditions of this Lease which shall be mutually
acceptable to both parties for the remainder of the Term (“Revised Lease Terms”). If Lessor
and Lessee are unable to agree upon mutually acceptable terms and conditions as aforesaid,
Lessee shall be responsible for all costs and expenses to construct the Expansion Space,
including any and all costs associated with the construction of the Expansion Space from and
after the date upon which the Lessee gives the Option Notice, upon the terms and conditions
contained herein (“Lessee Revised Lease Terms”). Upon the substantial completion of the
Expansion Space and the issuance of a final certificate of occupancy with respect thereto
(“Expansion Space Commencement Date”), the Expansion Space shall be deemed a part of the
Premises and shall become the property of Lessor (and remain the property of

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 4

Lessor at the
expiration of the Term), upon all of the terms, covenants, conditions, provisions and
agreements contained in this Lease, except as otherwise expressly modified herein. In the
event all necessary Expansion Space Approvals are not obtained within one hundred eighty
(180) days after Lessor’s receipt of the Option Notice, then, Lessee shall have the right to
withdraw the Option Notice after the expiration of the aforesaid one hundred eighty (180)
day period, in which event this Article 52 shall be deemed null and void, and of no further
force and effect. Supplementing the foregoing, but not in limitation thereof, Lessee shall
have the right to withdraw its Option Notice, upon written notice to Lessor, at any time
prior to the commencement of construction of the Expansion Space for any reason or no reason
whatsoever, notwithstanding that Lessee gave the Option Notice, in which event this Article
52 shall be deemed null and void, and of no further force and effect. If Lessee shall
withdraw its Option Notice pursuant to the foregoing sentence, Lessee shall be obligated to
reimburse Lessor for any and all actual out-of-pocket costs and expenses (including
reasonable attorneys’ fees and costs) incurred solely in connection with Lessor’s reliance
on the Option Notice. Once Lessee or its representatives or contractors have commenced
construction of the Expansion Space, Lessee shall complete the construction of the Expansion
Space and such failure to do so shall constitute a default under this Lease. Lessee agrees
that it shall not materially alter or modify the Plans without Lessor’s prior consent, which
consent shall not be unreasonably withheld, conditioned or delayed; however, Lessee shall
have the right to make any non-material alterations or modifications thereto without
Lessor’s prior consent, but, however, upon notice to Lessor, and if Lessee so alters or
modifies such Plans, the party who is responsible for the construction of the Expansion
Space shall thereafter obtain any necessary Expansion Space Approvals and/or modifications
to the Existing Expansion Space Approvals required as a direct result of such alterations or
modifications of the Plans. If Lessee is responsible for the construction of the Expansion
Space, Lessor agrees, at Lessee’s sole cost and expense, to assist Lessee in the procurement
of any Expansion Space Approvals or modifications thereof, and to execute any documents
which are required by any governmental or quasi-governmental agency, authority, board, body,
commission, department or official in connection therewith.

In the event the Expansion Space Approvals are obtained within the aforesaid one hundred
eighty (180) day period and the Expansion Space is constructed by Lessor or Lessee, as the
case may be, then, Lessee shall lease the Premises from Lessor pursuant to either the
Revised Lease Terms or the Lessee Revised Lease Terms, respectively, as the case may be.

The Expansion Space shall: (a) be aesthetically consistent with the architectural design of
the Building; (b) be constructed with the same basic materials; (c) be of

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 5

the same basic level of quality and be consistent with those of the Building; and (d)
include one (1) elevator and access points from each floor.

Upon construction of the Expansion Space by either Lessor or Lessee, the parties agree that
Lessor shall perform all of the obligations set forth in the Lease to be performed by Lessor
with respect to the Premises, including, but not limited to, the performance of all work in
connection with the operation, maintenance, replacement and repair of the Expansion Space,
but excluding: (i) any obligations under the Workletter (as defined hereafter); and (ii)
Lessor’s Work unless otherwise agreed to. Notwithstanding anything contained to the contrary
herein or in the Lease, if Lessee constructs the Expansion Space, Lessee shall pay (or
reimburse) Lessor for any and all actual out-of-pocket costs and expenses incurred by Lessor
therefor, including, but not limited to, items which constitute additional rent, Operating
Costs and Real Estate Taxes (whether such maintenance, replacement or repair is capital or
latent in nature) during the Term. Lessee shall not, however, be responsible for the
payment of any Fixed Basic Rent in connection with the Expansion Space.

Section B, Paragraph 6 of the Workletter attached as Exhibit C to the Lease (the
“Workletter”) regarding Lessor’s Construction Allowance shall not apply to the Expansion
Space.”

2. Construction of Expansion Space by Lessee.

	 	(a)	 	The Expansion Space shall be constructed and the work (the
“Work”) performed and completed in connection therewith shall be in accordance
with the Plans, as the same may be revised by Lessor or Lessee as provided
herein.

	 	(b)	 	All Work shall be performed in a good and workmanlike manner,
shall be performed in accordance with all applicable laws, ordinances,
directions, rules and regulations of governmental authorities having
jurisdiction and shall be diligently pursued to completion, but in any event
prior to the Expiration Date. Lessee shall use its commercially reasonable
efforts to prevent any damage to, disharmony or unreasonable interference with
the Building and the proper functioning of the Building shall not be materially
adversely affected during the performance of the Work. Lessee shall promptly
restore or repair any damage caused to the Building, the Premises or the Office
Building Area by the Work, and Lessee agrees to indemnify, defend and hold
Lessor harmless from any and all loss, injury, damage (excluding, however,
consequential

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 6

	 	 	 	damages), claim, lien, cost or expense, including reasonable
attorneys’ fees and disbursements, arising out of a breach of the
foregoing by Lessee in connection with the Work or otherwise from any
personal injury or damage to the Building arising from or in connection with
the Work.
	 
	 	(c)	 	Lessor shall be permitted to inspect the Work to examine the
progress and quality of the Work and to ensure compliance and consistency with
the Plans, as same may be modified by Lessee. Lessor shall give Lessee
forty-eight (48) hours’ prior written notice before any such inspection of the
Expansion Space.
	 
	 	(d)	 	All Work shall be performed by licensed and insured labor
having the proper jurisdictional qualifications and any contractor shall
diligently perform the Work or coordinate the performance of the Work in order
to minimize delays in completion of the Work. Moreover, Lessor shall have the
option, at its sole cost and expense, to require Lessee’s contractor to
furnish: (i) a performance bond and a labor and material payment bond covering
faithful performance of its contract and the payment of all obligations arising
in connection therewith, free of liens upon the Premises, which bonds shall
name as obligees both Lessor and any lender required by Lessor, jointly and
severally, and shall be written by surety companies qualified to do business in
New Jersey and shall be in such form and with such sureties as the obligees may
approve; and (ii) a financial bond to insure the completion of the Expansion
Space. All construction, roof and equipment warranties relating to those
portions of the Building which Lessor is required to maintain during the Term
shall be assigned to Lessor following completion of the Work.
	 
	 	(e)	 	Prior to the commencement of any Work by Lessee or its
representatives or contractors, Lessee shall furnish to Lessor certificates
evidencing the existence of appropriate insurance as further described in
Section B, Paragraph 8 of the Workletter.
	 
	 	(f)	 	Lessee or its representatives or contractors shall not create
or permit to be created any lien, encumbrance or charge upon the Premises or
the Building or any part thereof or the income therefrom, or any assets of
Lessor, and Lessee in no event shall suffer any other matter or thing whereby
the estate, rights and interest of Lessor in the Premises or the Building or
any part thereof, or any assets of Lessor, might be impaired. If any
mechanic’s, laborer’s or materialman’s

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 7

	 	 	 	lien at any time shall be filed against
the Building, the Premises or any part thereof (other than arising from the
acts or omissions of Lessor, its employees, agents or contractors) for any Work
performed or alleged to have been performed for Lessee or any person or
entity acting through Lessee, Lessee, within thirty (30) days after notice
to Lessee of the filing thereof, shall cause the same to be discharged of
record by payment, deposit, bond, order of a court of competent jurisdiction
or otherwise. If Lessee shall fail to cause such lien to be discharged
within the aforesaid period, in addition to any other right or remedy,
Lessor may, but shall not be obligated to, discharge the same either by
paying the amount claimed to be due or by procuring the discharge of such
lien by deposit or by bonding proceedings. Any amount so paid by Lessor,
with all actual out-of-pocket costs and expenses incurred and actually paid
by Lessor in connection therewith, shall be paid by Lessee to Lessor within
ten (10) days after demand, together with reasonable supporting
documentation therefor. Lessor shall not be liable for any Work performed
or to be performed by or for Lessee or for any materials furnished or to be
furnished at the Premises for any of the foregoing, and no mechanic’s or
other lien for such Work or materials shall attach to or affect the estate
or interest of Lessor in and to the Premises or the Building or any asset of
Lessor.

3. Consideration for Conversion of Obligation.

In consideration for the parties’ agreement to convert the Expansion Space Obligation to the
Expansion Space Option, Lessee shall pay or provide Lessor with the following items, which
Lessor shall accept as full and fair consideration thereof:

	 	(a)	 	a one-time non-refundable payment of Five Hundred Thousand
Dollars ($500,000.00) payable within fifteen (15) days of the mutual execution
and delivery of this Letter Agreement;
	 
	 	(b)	 	an increase in the Fixed Basic Rent payable by Lessee to Lessor
under the Lease, subject to and in accordance with Section 3 below; and
	 
	 	(c)	 	a Guaranty of Lease executed by Barr Pharmaceuticals, Inc., as
guarantor (“Guarantor”), in the form attached hereto and made a part hereof as
Exhibit A.

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 8

4. Expiration Date.

The Term of the Lease shall be extended by two (2) years. Accordingly, Paragraph 9 of the
Preamble to the Lease shall be deleted and replaced in its entirety with the following:

“9. EXPIRATION DATE shall be September 30, 2020.”

5. Fixed Basic Rent Increase.

Commencing upon the first day of the calendar month following the date of execution of this
Letter Agreement (“Increase Effective Date”), the rental rate per rentable square foot of
Fixed Basic Rent shall be increased by One and 50/100 Dollars ($1.50) per rentable square
foot. Accordingly, Paragraph 10 of the Preamble to the Lease shall be deleted and replaced
in its entirety with the following:

“10. FIXED BASIC RENT shall be payable as follows:

	 	 	 	 	 	 	 	 	 
	Period	 	Yearly Rate	 	Monthly Installment
	Increase Effective Date* —
10/31/2013
	 	$	4,061,250.00	 	 	$	338,437.50	 
	11/1/2013 — Expiration Date
	 	$	4,488,750.00	 	 	$	374,062.50	 

 

			
	*	 	“Increase Effective Date” shall have the meaning set forth in the Letter
Agreement dated September 2, 2008.”

6. No Other Changes to Lease.

Notwithstanding anything to the contrary contained herein, all terms and conditions of the
Lease not expressly modified by this Letter Agreement remain unchanged, and continue in full
force and effect.

7. Authority and Consents.

Lessor represents and warrants to Lessee that: (a) Lessor has obtained any and all required
consents and approvals in order to enter into this Letter Agreement; (b) the execution,
performance and delivery by Lessor of this Letter Agreement does not violate any provisions
of its operating agreement, or any indenture, document, agreement or other instrument which
may be heretofore binding upon Lessor, and has been fully and validly authorized and
approved by any required membership

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 9

action of Lessor; (c) the obligations of Lessor under
this Letter Agreement are legal, valid, binding and enforceable against Lessor in accordance
with its terms; (d) the person executing this Letter Agreement on behalf of Lessor has the
authority to so execute, perform and deliver same; and (e) there is currently no mortgage on
the Building.

Lessee represents and warrants to Lessor that: (a) Lessee has obtained any and all required
consents and approvals in order to enter into this Letter Agreement; (b) the execution,
performance and delivery by Lessee of this Letter Agreement does not violate any provisions
of its by-laws, or any indenture, document, agreement or other instrument which may be
heretofore binding upon Lessee, and has been fully and validly authorized and approved by
any required corporate action of Lessee; (c) the obligations of Lessee under this Letter
Agreement are legal, valid, binding and enforceable against Lessee in accordance with its
terms; and (d) the person executing this Letter Agreement on behalf of Lessee has the
authority to so execute, perform and deliver same.

[signatures appear on following page]

 

 

Mr. Anthony P. DiTommaso, Jr.

Page 10

Please acknowledge your agreement with the foregoing by executing this Letter

Agreement where indicated below.

	 	 	 	 	 
	 	Sincerely,

BARR LABORATORIES, INC.

 	 
	 	By:  	/S/ William T. McKee
 	 
	 	 	Name:  	William T. McKee 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:

URDANG/IPA MONTVALE, LLC

 	 	 
	By:  	/S/ Anthony P. DiTommaso, Jr.
 	 	 
	 	Name:  	Anthony P. DiTommaso, Jr. 	 	 
	 	Title:  	Manager 	 	 

	cc:	 	Frederick J. Killion, Esq., Executive Vice President & General Counsel

Andrew W. Bank, Esq., Morrison Cohen, LLP
	 
	 	 	Jan Alan Lewis, Esq., Cole, Schotz, Meisel, Forman & Leonard, P.A.

 

 

SCHEDULE A

EXPANSION SPACE APPROVALS

 

 

SCHEDULE B

PLANS AND SPECIFICATIONS

 

 

EXHIBIT A

GUARANTY OF LEASE

     THIS GUARANTY OF LEASE is made as of the 2nd day of September, 2008 (“Guaranty”),
by BARR PHARMACEUTICALS, INC., a Delaware corporation, with offices at 225 Summit Avenue, Montvale,
New Jersey 07645 (“Guarantor”).

     URDANG/IPA MONTVALE, LLC, a Delaware limited liability company (“Landlord”), and BARR
LABORATORIES, INC., a Delaware corporation (“Tenant”), entered into a certain Lease dated April 23,
2007, as amended by Letter Agreement dated May 10, 2007, Letter Agreement dated May 15, 2008 and
Letter Agreement dated as of the date hereof (collectively, “Lease”), relating to premises
containing 142,500 square feet of gross leasable area (“Premises”) in the building located at 225
Summit Avenue, Montvale, New Jersey (“Building”), which premises are more particularly described in
the Lease.

     Guarantor has agreed to guarantee the performance of all of the terms, conditions, covenants,
obligations, liabilities and agreements contained in the Lease which are required to be fulfilled
or performed by Tenant, subject to the terms and provisions hereof.

     1. (a) Guarantor unconditionally guarantees to Landlord and the successors and assigns
of Landlord the full and punctual performance and observance by Tenant of all the terms,
covenants and conditions contained in the Lease on Tenant’s part to be kept, performed or
observed.

          (b) If at any time default shall be made by Tenant in the performance or observance of
any of the terms, covenants or conditions contained in the Lease on Tenant’s part to be
kept, performed or observed, Guarantor will keep, perform and observe the same, as the case
may be, in place and stead of Tenant.

     2. Any act of Landlord, or the successors or assigns of Landlord, consisting of a
waiver of any of the terms or conditions of the Lease, or the giving of any consent to any
manner or thing relating to the Lease, or the granting of any indulgences or extensions of
time to Tenant, may be done without notice to Guarantor and without releasing the
obligations of Guarantor hereunder. Landlord agrees to give to Guarantor notice of any
Tenant default under the Lease at the address of Guarantor set forth above (or any
subsequent address of which Guarantor gives Landlord written notice) in the same manner as
notice to Tenant as provided under the Lease and shall afford Guarantor the period of time
to cure

 

 

such default as provided Tenant under the Lease with respect to such default. Failure
to give any such notice by Landlord hereunder shall not discharge Guarantor of any
obligation or liability under this Guaranty, except that Landlord must give such notice and
opportunity to cure to Guarantor prior to enforcement of any rights, remedies, liabilities
or obligations under this Guaranty.

     3. The obligations of Guarantor hereunder shall not be released by Landlord’s receipt,
application or release of security given for the performance and observance of all of the
covenants and conditions contained in the Lease on Tenant’s part to be performed or
observed, nor by any modification of the Lease, but in case of any such modification, the
liability of Guarantor shall be deemed modified in accordance with the terms of any such
modification of the Lease; provided, however, in the event the Lease is assigned by Tenant
to an unaffiliated third party pursuant to the provisions of Article 8 of the Lease and such
unaffiliated third party expands, renews, extends, modifies or amends the Lease, Guarantor
shall not be bound, nor shall Guarantor’s liability hereunder be expanded or increased, by
any such expansion, renewal, extension, modification or amendment of the Lease, unless
Guarantor shall have consented in writing to same.

     4. The liability of Guarantor hereunder shall in no way be affected by: (a) the
release or discharge of Tenant in any creditors’, receivership, bankruptcy or other
proceedings; or (b) the impairment, limitation or modification of the liability of Tenant or
the estate of Tenant in bankruptcy, or of any remedy for the enforcement of Tenant’s
liability under the Lease resulting from the operation of any present or future provision of
the National Bankruptcy Act or other statute or from the decision in any court; or (c) the
rejection or disaffirmance of the Lease in any such proceedings; or (d) the assignment or
transfer of the Lease by Tenant or the sublease of all or any part of the premises described
therein; provided, however, in the event the Lease is assigned by Tenant to an unaffiliated
third party pursuant to the provisions of Article 8 of the Lease and such unaffiliated third
party expands, renews, extends, modifies or amends the Lease, Guarantor shall not be bound,
nor shall Guarantor’s liability hereunder be expanded or increased, by any such expansion,
renewal, extension, modification or amendment of the Lease, unless Guarantor shall have
consented in writing to same; or (e) any disability of Tenant; or (f) any change in the
ownership or control of Lessee or Guarantor during the Term. Guarantor further agrees that
this Guaranty shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any amount pursuant to the Lease is rescinded or must
otherwise be restored by Landlord as a result of the bankruptcy or reorganization of Tenant.

 

 

     5. The liability of Guarantor under this Guaranty shall be continuing and shall remain
in full force and effect as long as Tenant is or may be obligated to Landlord on account of
any obligation covered by this Guaranty. The obligations of Guarantor to Landlord hereunder
are independent of Tenant’s obligations and a separate action or actions may be brought and
prosecuted by Landlord against Guarantor, whether or not such action or actions are also
brought against Tenant. This Guaranty constitutes a guarantee of payment when due and not
of collection. Guarantor waives and agrees not to assert or otherwise take advantage of any
right which it may have: (a) to require Landlord to proceed against Tenant or any other
person, firm or corporation, or to proceed against or exhaust any security held by it at any
time or to pursue any other remedy; or (b) any defense which it may have by reason of
incapacity, lack of authority or other approvals relating either to Tenant or Guarantor, or
based upon an election of remedies by Landlord.

     6. This Guaranty shall be construed and performed in accordance with the laws of the
State of New Jersey. Guarantor hereby irrevocably submits to the jurisdiction of the courts
of the State of New Jersey in any action or proceeding brought to enforce or otherwise
arising out of, or relating to, this Guaranty, and waives to the fullest extent permitted by
law any objection which it may have now or hereafter to such venue or any claim that such
forum is an inconvenient forum.

     7. This Guaranty shall apply to the Lease, any extension or renewal thereof pursuant to
the exercise by Tenant of any option to extend contained in the Lease or otherwise consented
to by Guarantor, and to any holdover term following the term granted by the Lease or any
extension or renewal thereof.

     8. This instrument may not be changed, modified, discharged or terminated orally or in
any manner other than by an agreement in writing signed by Guarantor and Landlord. If there
is more than one Guarantor, the obligations of the undersigned shall be joint and several.
Guarantor’s obligations under this Guaranty shall be binding on the successors and assigns
of Guarantor by operation of law or otherwise (including any receiver or bankruptcy
trustee). Guarantor shall not be released by any assignment or delegation by it of its
obligations hereunder, unless consented to by Landlord, in Landlord’s sole discretion.

     DATED as of the day and year first above written.

[signature appears on following page]

 

 

	 	 	 	 	 
	 	GUARANTOR:

BARR PHARMACEUTICALS, INC.

 	 
	 	By:  	/S/ William T. McKee
 	 
	 	 	Name:  	William T. McKee 	 
	 	 	Title:  	Executive Vice President and Chief
Financial OfficerEX-10.1

Exhibit 10.1

Execution Copy

MASTER TERMS AND CONDITIONS FOR ISSUER FORWARD TRANSACTIONS

BETWEEN CITIGROUP FINANCIAL PRODUCTS INC. AND LEXINGTON REALTY TRUST

     The purpose of this Master Terms and Conditions for Issuer Forward Transactions (this
“Master Confirmation”), dated as of October 28, 2008, is to set forth certain terms and
conditions for issuer forward transactions that Lexington Realty Trust (“Counterparty”)
will enter into with Citigroup Financial Products Inc. (“Citigroup”). Each such
transaction (a “Transaction”) entered into between Citigroup and Counterparty that is to be
subject to this Master Confirmation shall be evidenced by a written confirmation substantially in
the form of Exhibit A hereto, with such modifications thereto as to which Counterparty and
Citigroup mutually agree (a “Transaction Confirmation”). The confirmation applicable to
each Transaction, which shall constitute a “Confirmation” for the purposes of, and will supplement
and form a part of, and be subject to, the Agreement (as such term is defined herein), shall
consist of this Master Confirmation as supplemented by the trade details applicable to such
Transaction, as set forth in the Transaction Confirmation.

     This Master Confirmation and a Transaction Confirmation evidence a complete binding agreement
between you and us as to the terms of the Transaction to which this Master Confirmation and such
Transaction Confirmation relates. This Master Confirmation and each Transaction Confirmation
hereunder, together with all other documents referring to the 1992 ISDA Master Agreement
(Multicurrency—Cross Border) (the “ISDA Agreement”), in the form published by the
International Swaps and Derivatives Association, Inc. (“ISDA”) (each a
“Confirmation”) confirming transactions (each a “Transaction”) entered into between
you and us (notwithstanding anything to the contrary in a Confirmation), shall supplement, form a
part of, and be subject to an agreement in the form of the ISDA Agreement as if we had executed an
agreement in such form (without a Schedule, but with the elections herein) on the Trade Date of the
first such Transaction between you and us (the “Agreement”). A copy of the ISDA Agreement
has been, or promptly after the date hereof will be, delivered to you.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”) and the 2000 ISDA Definitions (the “ISDA Definitions” and,
together with the Equity Definitions, the “Definitions”), each as published by ISDA, are
incorporated into this Master Confirmation.

     THIS MASTER CONFIRMATION WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE. THE PARTIES HERETO IRREVOCABLY
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO
AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT
TO, THESE COURTS.

     1. In the event of any inconsistency between the Equity Definitions and ISDA Definitions, the
Equity Definitions will control for the purpose of the Transaction to which a Transaction
Confirmation relates. In the event of any inconsistency between the Definitions and this Master
Confirmation, this Master Confirmation will control for the purpose of the Transaction to which a
Transaction Confirmation relates. In the event of any inconsistency between the Definitions and
this Master Confirmation, on the one hand, and a Transaction Confirmation, on the other hand, the
Transaction Confirmation will govern. With respect to a Transaction, capitalized terms used herein
that are not otherwise defined shall have the meaning assigned to them in the Transaction
Confirmation relating to such Transaction.

     2. Each party will make each payment specified in this Master Confirmation or a Transaction
Confirmation as being payable by such party, not later than the due date for value on that date in
the place of the account specified below or otherwise specified in writing, in freely transferable
funds and in a manner customary for payments in the required currency.

     3. General Terms:

     This Master Confirmation and the Agreement, together with the Transaction Confirmation
relating to a Transaction, shall constitute the written agreement between Counterparty and
Citigroup with respect to such Transaction.

 

 

     Each Transaction to which a Transaction Confirmation relates is a share forward, which shall
be considered a Share Forward Transaction for purposes of the Definitions, and shall have the
following terms:

	 	 	 
	General Terms:
	 	 
	 
	 	 
	Trade Date:

	 	As set forth in the Transaction Confirmation for such Transaction.
	 
	 	 
	Effective Date:

	 	Unless otherwise set forth in the Transaction Confirmation for
such Transaction, the third Exchange Business Day following the
Trade Date for such Transaction.
	 
	 	 
	Termination Date:

	 	The date on which settlement with respect to the full Number of
Shares has been completed.
	 
	 	 
	Shares:

	 	The Common Shares, USD0.0001 par value per share, of Counterparty
(Symbol: LXP).
	 
	 	 
	Number of Shares:

	 	As set forth in the Transaction Confirmation for such
Transaction, reduced from time to time by the Calculation Agent
for any Settlement Shares.
	 
	 	 
	Initial Price:

	 	As set forth in the Transaction Confirmation for such Transaction.
	 
	 	 
	Maturity Date:

	 	As set forth in the Transaction Confirmation for such Transaction.
	 
	 	 
	Initial Notional Amount:

	 	An amount equal to (i) the product of Initial Price and the
initial Number of Shares minus (ii) the Initial Prepayment
Amount.
	 
	 	 
	Notional Amount:

	 	The Initial Notional Amount, as reduced from time to time by the
Calculation Agent for Shortfall Prepayment Amounts paid by
Counterparty and Settlement Period Amounts in respect of
Settlement Shares.
	 
	 	 
	Exchange:

	 	New York Stock Exchange.
	 
	 	 
	Related Exchange:

	 	All Exchanges.
	 
	 	 
	Trading Day:

	 	Any Scheduled Trading Day that is not a Disrupted Day; provided, however, that the first sentence of Section 6.3(a) of the Equity
Definitions is amended by replacing the phrase starting with
“during the one hour period” and ending with “as the case may be”
with “during a Scheduled Trading Day.” The Calculation Agent may
determine that a Scheduled Trading Day is a Disrupted Day only in
part, in which case the Calculation Agent shall make such
adjustments to the terms of the affected Transactions hereunder
as it deems appropriate to take into account such partial Trading
Day.
	 
	 	 
	Fee Rate:

	 	USD0.05 per Share.

2

 

	 	 	 
	Business Day Convention:

	 	Modified Following.
	 
	 	 
	Business Days:

	 	New York.
	 
	 	 
	Reference Price:

	 	On any Trading Day, the volume weighted average price per Share,
as determined by the Calculation Agent, for all transactions in
the Shares on the Exchange as of the end of regular trading hours
on such Trading Day as reported by Bloomberg L.P. (“Bloomberg”)
or (x) if such price is not reported by Bloomberg, then as
reported by another recognized source reasonably selected by the
Calculation Agent on such Trading Day or (y) if the Shares cease
to be listed on a national securities exchange or included in a
quotation system, then the current market price per Share on such
Trading Day, as determined by the Calculation Agent in a
commercially reasonable manner, in each case minus the Fee Rate.
	 
	 	 
	Settlement Currency:

	 	USD.
	 
	 	 
	Prepayments by Counterparty:
	 	 
	 
	 	 
	Initial Prepayment:

	 	On the Initial Prepayment Date, Counterparty shall pay to
Citigroup an amount in USD equal to the Initial Prepayment
Amount.
	 
	 	 
	Initial Prepayment Date:

	 	As set forth in the Transaction Confirmation for such Transaction.
	 
	 	 
	Initial Prepayment Amount:

	 	50% of the product of (i) the Initial Price and (ii) the initial
Number of Shares.
	 
	 	 
	Shortfall Prepayment:

	 	If a Shortfall Event occurs, Citigroup may, at its option,
deliver a Shortfall Prepayment Notice to Counterparty. After
effective delivery of such Shortfall Prepayment Notice, if the
Shortfall Prepayment Amount is positive, Counterparty shall pay
to Citigroup on or before the related Shortfall Prepayment Date
an amount in USD equal to the Shortfall Prepayment Amount for
such Shortfall Event, plus an accrual thereon at the Floating
Rate plus the Spread for the period from and including the
previous Floating Amount Payment Date (or, if none, the Effective
Date) to but excluding the Shortfall Prepayment Date. Failure by
Counterparty to satisfy its obligation to pay such amount by the
date due shall constitute an Event of Default, without regard to
any otherwise applicable notice requirement or grace period. For
the avoidance of doubt, notwithstanding the occurrence of a
Shortfall Event and delivery of the related Shortfall Prepayment
Notice, if the Shortfall Prepayment Amount is zero or negative,
Counterparty is not required to make any payment in respect of
such Shortfall Event.
	 
	 	 
	Shortfall Event:

	 	If, at any time on any Scheduled Trading Day, the Notional Amount
is greater than 60% of the product of (i) the price of a

3

 

	 	 	 
	 

	 	Share at
that time and (ii) the Number of Shares at that time, it shall
constitute a Shortfall Event.
	 
	 	 
	Shortfall Prepayment Amount:

	 	In respect of a Shortfall Event, (a) the Notional Amount minus
(b) 57.5% of the product of (i) the price of a Share at the close
of the regular trading session of the Exchange on the Exchange
Business Day immediately preceding the Shortfall Prepayment Date
and (ii) the Number of Shares on such day.
	 
	 	 
	Shortfall Prepayment Date:

	 	In respect of a Shortfall Event, 11:00 a.m. (New York City time)
on the third Exchange Business Day following the day Citigroup’s
notice to Counterparty (a “Shortfall Prepayment Notice”) of the
occurrence of such Shortfall Event is effective.
	 
	 	 
	Floating Amounts:
	 	 
	 
	 	 
	Floating Amount Payer:

	 	Counterparty.
	 
	 	 
	Payment Date(s):

	 	16th of each January, April, July and October during
the Term of the Transaction (subject to the Modified Following
Business Day Convention) and the Termination Date.
	 
	 	 
	Floating Rate Day Count Fraction:

	 	Actual/360.
	 
	 	 
	Reset Dates:

	 	The first day of each Calculation Period.
	 
	 	 
	Floating Rate:

	 	The rate per annum for USD LIBOR for the relevant reference
period, as determined by the Calculation Agent, appearing on
Telerate Page 3750 or any replacement of that page, two London
Banking Days prior to the start of a relevant period. The
Floating Rate shall be determined by linear interpolation if the
relevant reference period does not correspond exactly to a period
for which rates appear on Telerate Page 3750 or its replacement.
If the Floating Rate cannot be so determined, it shall be
determined as if USD-LIBOR-Reference Banks with a Designated
Maturity of three months had been specified for purposes of
determining the Floating Rate; provided that if the Floating Rate
cannot be determined pursuant to the foregoing, the Floating Rate
shall be the higher of (a) the Prime Rate and (b) the Federal
Funds Rate plus 0.5% per annum. Except for the initial
Calculation Period and the Calculation Period ending with the
Termination Date, unless the parties otherwise agree, the
relevant reference period for determining the Floating Rate shall
be three months. “Prime Rate” means the rate of interest
publicly announced by Citibank, N.A. from time to time as its
Prime Rate in New York City. “Federal Funds Rate” means, for any
relevant day, a rate determined as if USD-Federal Funds-H.15 was
specified.
	 
	 	 
	London Banking Day:

	 	Any day on which commercial banks are open for general business
(including dealings in foreign exchange and foreign currency
deposits) in London.
	 
	 	 
	Spread:

	 	As set forth in the Transaction Confirmation for such Transaction.

4

 

	 	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Settlement Method:

	 	In respect of a Settlement Period relating to the Maturity Date
or a Settlement Period relating to an Optional Early Settlement
with respect to the entire remaining Number of Shares,
Counterparty shall be entitled to elect by timely written notice
to Citigroup whether to settle the Transaction by (i) “Full
Physical Settlement”, (ii) “Net Cash Settlement” or (iii) “Net
Share Settlement” as described below; provided that, if
Counterparty fails to so elect or if Counterparty properly elects
either of Net Cash Settlement or Net Share Settlement, but
Citigroup reasonably determines that the Alternative Settlement
Conditions have not been satisfied, Counterparty shall be deemed
to have elected Full Physical Settlement. Counterparty shall
send irrevocable written notice to Citigroup of its election of a
settlement method at least 40 Scheduled Trading Days prior to the
Maturity Date (or, in the case of Optional Early Settlement, as
part of the Optional Settlement Notice). By electing Net Cash
Settlement or Net Share Settlement, Counterparty is deemed to
represent that Counterparty is not aware of any material
nonpublic information concerning itself or the Shares, and is
electing such settlement in good faith and not as part of a plan
or scheme to evade compliance with the federal securities laws.
	 
	 	 
	 

	 	In respect of any other Settlement Period, Full Physical
Settlement shall apply unless the parties agree on a methodology
for settlement on a net cash or net share equivalent basis (e.g.,
a marketed or a block offering), equivalent conditions to the
Alternative Settlement Conditions are satisfied, and Counterparty
represents that Counterparty is not aware of any material
nonpublic information concerning itself or the Shares, and is
agreeing to net cash or net share settlement in good faith and
not as part of a plan or scheme to evade compliance with the
federal securities laws. The parties acknowledge and agree that
any such net cash or net share settlement shall be structured to
result in (i) if the value of the Shares determined by the agreed
methodology is greater than the Initial Price, the Notional
Amount being reduced (but not below zero) by an amount equal to
the product of the number of Settlement Shares and the Initial
Price or (ii) if the value of the Shares determined by the agreed
methodology is less than or equal to the Initial Price, the
Notional Amount being reduced (but not below zero) by an amount
equal to the lesser of (a) an amount equal to the number of
Settlement Shares and such value and (b) 150% of the result
obtained by dividing the remaining Notional Amount (determined
prior to reduction for such Settlement Shares) as of the
Settlement Period Start Date by the remaining Number of Shares
(determined prior to reduction for such Settlement Shares) as of
the Settlement Period Start Date.
	 
	 	 
	Settlement Period:

	 	The period during which Citigroup transfers Shares to
Counterparty or otherwise values Shares in settlement or partial
settlement of this Transaction, which shall be (a) in the case of
Full Physical Settlement, a single Trading Day (i.e.,

5

 

	 	 	 
	 

	 	the
Settlement Period Start Date) and (b) in the case of Net Cash
Settlement or Net Share Settlement, the period beginning on the
Settlement Period Start Date, and ending on, and including, the
Trading Day thereafter that (i) in the case of the Settlement
Period relating to the Maturity Date, is 29 Trading Days
thereafter (or such other number as the parties may agree) and
(ii) in the case of any other Settlement Period, is a number of
Trading Days determined by the Calculation Agent, taking into
account the number of Settlement Shares for such Settlement
Period (or such other number of Trading Days as the parties may
agree).
	 
	 	 
	Settlement Shares:

	 	For any Settlement Period, the portion of the Number of Shares
that is subject to such Settlement Period. In connection with
any Settlement Period occurring due to a Partial Termination
Event, the number of Settlement Shares shall be determined by the
Calculation Agent. In connection with any Settlement Period
occurring due to an Optional Early Settlement, the number of
Settlement Shares shall be as specified by Counterparty in the
relevant Optional Settlement Notice. In connection with the
Settlement Period relating to the Maturity Date, the number of
Settlement Shares shall be the remainder of the Number of Shares.
	 
	 	 
	Settlement Period Start Date:

	 	In the case of the Settlement Period relating to the Maturity
Date, (i) if Full Physical Settlement applies, the Maturity Date
and (ii) if Net Cash Settlement or Net Share Settlement applies,
the day that is 32 Scheduled Trading Days prior to the Maturity
Date (the “Net Maturity Settlement Start Date”).
	 
	 	 
	 

	 	In the case of a Settlement Period relating to an Optional Early
Settlement, the date specified by Counterparty in its Optional
Settlement Notice.
	 
	 	 
	 

	 	In the case of a Settlement Period relating to a Partial
Termination Event, the first Trading Day immediately following
delivery of Citigroup’s notice to commence the relevant
Settlement Period.
	 
	 	 
	Optional Early Settlement:

	 	At any time prior to the Net Maturity Settlement Start Date for
such Transaction, Counterparty may elect by at least 10 Scheduled
Trading Days’ written notice to Citigroup (an “Optional
Settlement Notice”) to specify a Settlement Period Start Date
prior to the Net Maturity Settlement Start Date for purposes of
effecting a settlement with respect to all or a portion of the
remaining Number of Shares for such Transaction (as specified in
such notice) not previously subject to a Settlement Period (an
“Optional Early Settlement”), so long as no other Settlement
Period for such Transaction has occurred and is continuing at the
time of such election.
	 
	 	 
	Partial Termination Event:

	 	If on any day Citigroup’s hedge in respect of all Transactions
hereunder along with other Shares beneficially owned by Citigroup
Inc. (the “Transaction Equity”) exceeds 9.8% of the number of
outstanding Shares on such day, a “Partial

6

 

	 	 	 
	 

	 	Termination Event”
shall be deemed to have occurred. Citigroup shall use its
reasonable efforts to avoid transactions with third parties that
could reasonably be expected to result in Citigroup Inc.’s
beneficial ownership exceeding 9.8%. Upon the occurrence of a
Partial Termination Event, Citigroup shall have the right to
commence a Settlement Period with respect to a portion of the
Number of Shares for such Transaction not previously subject to a
Settlement Period such that, after completion of the Settlement
Period related to such Partial Termination Event, the Transaction
Equity as determined by Citigroup is less than 9.8% of the number
of outstanding Shares.
	 
	 	 
	 

	 	At Citigroup’s option, upon notice to Counterparty, (x) any other
Settlement Period that has commenced prior to the start of the
Settlement Period for such Partial Termination Event, and has not
ended, shall end on the Trading Day immediately preceding
delivery by Citigroup of the notice referred to in the
immediately preceding paragraph and (y) the Calculation Agent
shall adjust the number of Settlement Shares for such other
Settlement Period and the parties obligations with respect to
settlement thereof appropriately to reflect the truncated
Settlement Period.
	 
	 	 
	Full Physical Settlement:

	 	If Full Physical Settlement applies to a Settlement Period, on a
delivery versus payment basis, Citigroup will deliver to
Counterparty on the related Settlement Period Start Date the
Settlement Shares for such Settlement Period in exchange for
payment from Counterparty to Citigroup of the Accreted Settlement
Period Amount for such Settlement Period.
	 
	 	 
	Settlement Period Amount:

	 	In respect of a Settlement Period, an amount equal to (i) the
Settlement Shares for such Settlement Period divided by the
remaining Number of Shares (determined prior to reduction for
such Settlement Shares) as of the Settlement Period Start Date
multiplied by (ii) the remaining Notional Amount (determined
prior to reduction for such Settlement Shares) as of the
Settlement Period Start Date.
	 
	 	 
	Accreted Settlement Period Amount:

	 	In respect of a Settlement Period, an amount equal to the
Settlement Period Amount for such Settlement Period plus an
accrual thereon at the relevant Floating Rate plus the Spread for
the period from and including the previous Floating Amount
Payment Date (or, if none, the Effective Date) to but excluding
the relevant Settlement Period Start Date.
	 
	 	 
	Net Cash Settlement:

	 	If Net Cash Settlement applies to a Settlement Period, then on
the third Scheduled Trading Day following the completion of the
Settlement Period, if the Net Settlement Amount is positive,
Citigroup shall pay such amount to Counterparty, and if the Net
Settlement Amount is negative, Counterparty shall pay the
absolute value of such amount to Citigroup. In addition,
Counterparty shall pay to Citigroup the Settlement Period
Floating Rate Amount.
	 
	 	 

7

 

	 	 	 
	Net Share Settlement:

	 	If Net Share Settlement applies to a Settlement Period, then on
the third Scheduled Trading Day following the completion of the
Settlement Period, if the Net Settlement Amount is positive,
Citigroup shall deliver to Counterparty a number of Shares
(rounded to the nearest whole Share) equal to such amount divided by the Average Settlement Period Price for such Settlement
Period, and if the Net Settlement Amount is negative,
Counterparty shall deliver to Citigroup a number of Shares
(rounded to the nearest whole Share) equal to the absolute value
of such amount divided by the Average Settlement Period Price for
such Settlement Period. In addition, Counterparty shall pay to
Citigroup the Settlement Period Floating Rate Amount.
	 
	 	 
	Net Settlement Amount:

	 	In respect of a Settlement Period, an amount equal to (i) the
number of Settlement Shares for such Settlement Period multiplied
by the Average Settlement Period Price for such Settlement Period
minus (ii) the Accreted Settlement Period Amount for such
Settlement Period.
	 
	 	 
	Average Settlement Period Price:

	 	In respect of a Settlement Period, the average of the Reference
Prices for each Trading Day in such Settlement Period.
	 
	 	 
	Settlement Period Floating Amount:

	 	In respect of a Settlement Period, an amount equal to (i) the
Floating Rate (with the relevant reference period commencing on
the Settlement Period Start Date and ending on the third
Scheduled Trading Day following the scheduled completion of the
Settlement Period) plus the Spread multiplied by (ii) the
Accreted Settlement Period Amount for such Settlement Period
divided by (iii) 2 multiplied by (iv) the number of days from and
including the Settlement Period Start Date to but excluding the
third Scheduled Trading Day following the completion of the
Settlement Period divided by 360.
	 
	 	 
	Suspension of Settlement Period:

	 	Counterparty may, by notice to Citigroup by 8:30 a.m. (New York
City time) on any Trading Day, suspend a Settlement Period for up
to 5 days in the aggregate based on the advice of counsel
respecting applicable federal securities laws that such
Settlement Period should be suspended. As promptly as
practicable after such suspension or any suspension under
Paragraph 5(c) below, the Calculation Agent will adjust any term
of this Transaction to the extent appropriate to effectuate the
fundamental economic terms of this Transaction.
	 
	 	 
	Dividends:
	 	 
	 
	 	 
	Payment Obligation in Respect of Cash
Dividends:

	 	In the event of any cash dividend or distribution on the Shares
for which the ex-dividend date occurs during the period from, but
excluding, the Trade Date for any Transaction hereunder to, and
including, the Termination Date for any Transaction hereunder,
Citigroup shall pay to Counterparty the amount thereof, within
five Business Days of the date such cash dividend or distribution
is paid to holders of Shares, in respect of the remaining Number
of Shares for such Transaction (adjusted as the Calculation Agent
deems appropriate for any

8

 

	 	 	 
	 

	 	pending Settlement Period or
settlement, taking into account the applicable Settlement
Method); provided that, if prior to Citigroup’s payment a
Shortfall Event has occurred for which Counterparty has not yet
paid the related Shortfall Prepayment, Citigroup may defer its
payment until Counterparty has paid to Citigroup such Shortfall
Prepayment, and if an Event of Default or a Potential Event of
Default with respect to Counterparty has occurred and is
continuing, Citigroup may defer its payment until no Event of
Default or a Potential Event of Default with respect to
Counterparty is continuing (it being understood, for the
avoidance of doubt, that any amount so deferred shall be an
Unpaid Amount for purposes of the Agreement).
	 
	 	 
	Adjustments:
	 	 
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment; provided, however, that the
Calculation Agent shall not make any adjustment to the terms of
any Transaction hereunder in connection with any cash dividend or
distribution paid on the Shares.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Consequences of Merger Events:
	 	 
	 
	 	 
	Share-for-Share:

	 	Calculation Agent Adjustment
	 
	 	 
	Share-for-Other:

	 	Calculation Agent Adjustment
	 
	 	 
	Share-for-Combined:

	 	Component Adjustment
	 
	 	 
	Determining Party:

	 	Citigroup
	 
	 	 
	Tender Offer:

	 	Applicable; provided that Section 12.1(d) of the Equity
Definitions is hereby amended by replacing “greater than 10%” in
the third line thereof with “greater than or equal to 50%”.
	 
	 	 
	Share-for-Share:

	 	Cancellation and Payment
	 
	 	 
	Share-for-Other:

	 	Cancellation and Payment
	 
	 	 
	Share-for-Combined:

	 	Cancellation and Payment
	 
	 	 
	Determining Party:

	 	Citigroup
	 
	 	 
	Composition of
Combined Consideration:

	 	Not Applicable
	 
	 	 
	Nationalization, Insolvency or Delisting:

	 	Cancellation and Payment
	 
	 	 
	 

	 	In addition to the provisions of Section 12.6(a)(iii) of the
Equity Definitions, it shall also constitute a Delisting if the
Exchange is located in the United States and the Shares are not
immediately re-listed, re-traded or re-quoted on any of the

9

 

	 	 	 
	 

	 	New
York Stock Exchange, the American Stock Exchange, the NASDAQ
Global Select Market or the NASDAQ Global Market (or their
respective successors); if the Shares are immediately re-listed,
re-traded or re-quoted on any such exchange or quotation system,
such exchange or quotation system shall thereafter be deemed to
be the Exchange.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that Section 12.9(a)(ii) of the Equity
Definitions is hereby amended by (i) replacing the phrase “the
interpretation” in the third line thereof with the phrase “or
announcement or statement of the formal or informal
interpretation”, (ii) immediately following the word “faith” in
clause (B) thereof, adding the words “based on the advice of
outside counsel” and (iii) immediately following the word
“Transaction” in clause (X) thereof, adding the phrase “in the
manner reasonably contemplated by Citigroup on the Trade Date”.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Hedging Party:

	 	For all applicable Additional Disruption Events, Citigroup
	 
	 	 
	Determining Party:

	 	For all applicable Additional Disruption Events, Citigroup
	 
	 	 
	Additional Representations, Agreements
and Acknowledgments:

	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	No Rights With Respect To Shares:

	 	Counterparty acknowledges and agrees that (a) Citigroup has no
obligation to hedge any Transaction hereunder, (b) if Citigroup
elects to hedge any Transaction hereunder, Citigroup may hedge
such Transaction in any manner that it deems appropriate, which
may, but need not, include the purchase of Shares, and (c) if
Citigroup elects to hedge any Transaction hereunder by purchasing
Shares, Counterparty shall not acquire any right to vote or to
give any consent with respect to any such Shares by virtue of
such Transaction or otherwise.
	 
	 	 
	 

	 	Without limiting the generality of the foregoing, Counterparty
shall not be entitled pursuant to any Transaction to vote or
direct the voting of, or to give or direct the giving of any
consent with respect to, any Shares (including any Shares held

10

 

	 	 	 
	 

	 	by
or on behalf of Citigroup as a hedge for the Transaction or
otherwise), and the parties agree that Citigroup shall not take
any such directions or instructions from Counterparty or any of
its officers, directors, employees, agents or representatives as
to such voting or consent.

     4. Calculation Agent: Citigroup or an Affiliate thereof specified by Citigroup;
provided that if (i) an Event of Default has occurred and is continuing with respect to
which Citigroup is the Defaulting Party and (ii) Citigroup fails to duly perform its obligations as
Calculation Agent with respect to any calculation or determination required to be made by the
Calculation Agent within three Scheduled Trading Days following the date of effective delivery of
notice from Counterparty requesting the performance of any such obligations, Counterparty may
appoint as Calculation Agent a third party that is reasonably acceptable to Citigroup. All
determinations made by the Calculation Agent shall be made in good faith and in a commercially
reasonable manner. Following any calculation or other determination by the Calculation Agent
hereunder, upon a prior written request by Counterparty, the Calculation Agent will provide to
Counterparty by e-mail to the e-mail address provided by Counterparty in such a prior written
request evidence of its calculations or determinations in reasonable detail, it being understood
that the Calculation Agent shall not be obligated to disclose any proprietary models used by it for
such calculation or determination.

     5. Alternative Settlement Conditions:

     (a) Notwithstanding Counterparty’s timely election of Net Cash Settlement or Net Share
Settlement, Net Cash Settlement or Net Share Settlement shall apply to this Transaction only if the
following conditions (the “Alternative Settlement Conditions”) are satisfied:

     (i) By no later than the Settlement Period Start Date, Counterparty shall have made
available to Citigroup and its affiliates, in form and substance satisfactory to Citigroup,
an effective registration statement (the “Registration Statement”) pursuant to Rule
415 under the Securities Act of 1933 (as amended, the “Securities Act”) and one or
more prospectuses as necessary to allow Citigroup and its affiliates to comply with the
applicable prospectus delivery requirements (the “Prospectus”) for the public resale
by Citigroup and its affiliates of all Settlement Shares and, in the case of Net Share
Settlement, such number of additional Shares reasonably specified by Citigroup, and such
Registration Statement shall be effective and Prospectus shall be current for each day in
the Settlement Period (other than a day on which the Settlement Period has been suspended
pursuant to “Suspension of Settlement Period” above) until all Settlement Shares and any
such additional Shares have been sold;

     (ii) By no later than the Settlement Period Start Date, Citigroup and its affiliates
shall have been afforded a reasonable opportunity to conduct a due diligence investigation
with respect to Counterparty customary in scope for underwritten follow-on offerings of
equity securities of companies of comparable size, maturity and lines of business
(including, without limitation, (x) the opportunity to review Counterparty’s books and
records and to make reasonable inquiries of appropriate officers of Counterparty and of
Counterparty’s independent public accountants and (y) the provision of opinions of counsel,
comfort letters, officers’ certificates and representations and such other documents as is
customary for an underwritten follow-on offering of equity securities of companies of
comparable size, maturity and lines of business and as may be reasonably requested by
Citigroup), and the results of such investigation shall have been satisfactory to Citigroup,
in its reasonable discretion;

     (iii) The following representation, which Counterparty shall be deemed to make on the
Settlement Period Start Date and on each day thereafter (other than a day on which the
Settlement Period has been suspended pursuant to “Suspension of Settlement Period” above)
until all Settlement Shares and any such additional Shares have been sold, shall be true and
correct:

Counterparty represents that each of its filings under the Securities Act, the
Securities Exchange Act of 1934 (as amended, the “Exchange Act”) or other
applicable securities laws that are required to be filed have been filed and that,
as of the respective dates thereof and as of the date of this representation, there
is no misstatement of material fact contained therein or omission of a

11

 

material fact
required to be stated therein or necessary to make the statements therein not
misleading;

     (iv) By no later than the Settlement Period Start Date, Counterparty shall have taken
all required action so that all Shares covered by the Registration Statement are eligible
for sale on the Exchange, entered into such customary agreements (including a customary
underwriting agreement reasonably acceptable to Citigroup) with Citigroup, its affiliates
and other underwriters or agents, if any, selected by Citigroup, as reasonably requested by
Citigroup in order to expedite or facilitate the disposition of the Shares (which agreement
shall include, without limitation, provisions in form and substance reasonably acceptable to
Citigroup regarding indemnity and contribution) and Counterparty shall comply with such
agreements, and otherwise take such actions reasonably requested by Citigroup to facilitate
the disposition of the Shares (including, without limitation, the filing of any supplements
and post-effective amendments to the Registration Statement reasonably required by
Citigroup) until all Settlement Shares and any related additional Shares have been sold; and

     (v) Counterparty shall have paid all reasonable and customary costs and expenses
actually incurred in connection with the foregoing (including, without limitation, legal and
other expenses incurred by Citigroup or its affiliates in connection with the preparation of
the Registration Statement and the Prospectus and the due diligence investigation described
in clause (ii) above).

     (b) Counterparty shall notify Citigroup immediately after obtaining knowledge that any of the
Alternative Settlement Conditions has ceased to be satisfied at any time prior to the time all
Settlement Shares and any such additional Shares have been sold.

     (c) If, in Citigroup’s reasonable judgment, any of the Alternative Settlement Conditions has
ceased to be satisfied at any time prior to the time all Settlement Shares and any such additional
Shares have been sold, Citigroup shall be entitled, in its discretion, to suspend and/or terminate
the Settlement Period. If Citigroup terminates the Settlement Period, the Calculation Agent shall
adjust the terms of the Transaction as it reasonably determines appropriate, with Full Physical
Settlement applying to the portion of the Settlement Shares relating to the remainder of the
Settlement Period and Net Cash Settlement or Net Share Settlement, as applicable, applying to the
other portion of the Settlement Period.

     6. Representations, Warranties and Covenants:

          (a) In connection with this Master Confirmation, each Transaction Confirmation, each
Transaction to which a Transaction Confirmation relates and any other documentation relating to the
Agreement, each party to this Master Confirmation represents and warrants to, and agrees with, the
other party that:

     (i) it is an “accredited investor” as defined in Section 2(a)(15)(ii) of the Securities
Act; and

     (ii) it is an “eligible contract participant” as defined in Section 1a(12) of the U.S.
Commodity Exchange Act, as amended (the “CEA”), and this Master Confirmation and
each Transaction hereunder are subject to individual negotiation by the parties and have not
been executed or traded on a “trading facility” as defined in Section 1a(33) of the CEA.

          (b) Counterparty represents and warrants to, and agrees with, Citigroup on the Trade Date of
each Transaction that:

     (i) its financial condition is such that it has no need for liquidity with respect to
its investment in such Transaction and no need to dispose of any portion thereof to satisfy
any existing or contemplated undertaking or indebtedness;

     (ii) its investments in and liabilities in respect of such Transaction, which it
understands are not readily marketable, are not disproportionate to its net worth, and it is
able to bear any loss in connection with such Transaction, including the loss of its entire
investment in such Transaction;

12

 

     (iii) it understands that Citigroup has no obligation or intention to register such
Transaction under the Securities Act or any state securities law or other applicable federal
securities law;

     (iv) it understands that no obligations of Citigroup to it hereunder shall be entitled
to the benefit of deposit insurance and that such obligations shall not be guaranteed by any
Affiliate of Citigroup or any governmental agency;

     (v) IT UNDERSTANDS THAT SUCH TRANSACTION IS SUBJECT TO COMPLEX RISKS THAT MAY ARISE
WITHOUT WARNING AND MAY AT TIMES BE VOLATILE AND THAT LOSSES MAY OCCUR QUICKLY AND IN
UNANTICIPATED MAGNITUDE AND IS WILLING TO ACCEPT SUCH TERMS AND CONDITIONS AND ASSUME
(FINANCIALLY AND OTHERWISE) SUCH RISKS;

     (vi) each of its filings under the Securities Act, the Exchange Act, or other
applicable securities laws that are required to be filed have been filed and that, as of the
respective dates thereof and as of the date of this representation, there is no misstatement
of material fact contained therein or omission of a material fact required to be stated
therein or necessary to make the statements made therein, in the light of the circumstances
under which they were made, not misleading;

     (vii) it is not entering into any Transaction to create, and shall not engage in any
other securities or derivatives transactions to create, actual or apparent trading activity
in the Shares (or any security convertible into or exchangeable for Shares) or to raise or
depress or to manipulate the price of the Shares (or any security convertible into or
exchangeable for Shares);

     (viii) it has not and shall not directly or indirectly violate any applicable law
(including, without limitation, the Securities Act and the Exchange Act) in connection with
any Transaction under this Master Confirmation;

     (ix) it has sufficient knowledge and expertise to enter into such Transaction and it is
entering into such Transaction in reliance upon such tax, accounting, regulatory, legal, and
financial advice as it deems necessary and not upon any view expressed by Citigroup or its
affiliates;

     (x) it has made its own independent decision to enter into such Transaction, is acting
at arm’s length and is not relying on any communication (written or oral) of Citigroup or
its affiliates as a recommendation or investment advice regarding such Transaction;

     (xi) it has the capability to evaluate and understand (on its own behalf or through
independent professional advice), and does understand, the terms, conditions and risks of
such Transaction and is willing to accept those terms and conditions and to assume
(financially and otherwise) those risks;

     (xii) it acknowledges and agrees that neither Citigroup nor its affiliates is acting as
a fiduciary or advisor to it in connection with such Transaction; and

     (xiii) if it were to have effected transactions in any Shares on such Trade Date,
whether on the Exchange or otherwise, such transactions would not have violated any
applicable securities law or other restriction applicable to Counterparty; without limiting
the generality of the foregoing, all material information with respect to Counterparty and
the Shares existing as of such Trade Date has been publicly disclosed.

     7. Miscellaneous:

          (a) Early Termination. The parties agree that Second Method and Loss shall apply to
each Transaction under this Master Confirmation as such terms are defined under the ISDA Agreement.
Counterparty acknowledges and agrees that Citigroup may take into account Counterparty’s status as
issuer of the Shares in its good faith determination of the manner in which to dispose of any Hedge
Positions when determining its Loss.

13

 

          (b) Netting of Obligations. The respective cash payment obligations on any day of
Counterparty, on the one hand, and Citigroup, on the other hand, whether under a single or multiple
Transactions hereunder, shall be netted.

          (c) Amendment upon Change in Accounting. Citigroup will negotiate with Counterparty
in good faith upon receiving Counterparty’s request for any amendment of the Master Confirmation
and any Transaction Confirmations with respect to any Change in Accounting and will use reasonable
efforts to enter into any such amendment; provided that Citigroup shall not be obligated or
required to enter into any such amendment that, in Citigroup’s reasonable judgment, would be
reasonably expected to have a material adverse effect on the expected economic benefits to
Citigroup in respect of any Transaction. “Change in Accounting” means any change in the
accounting treatment of any Transaction or the Shares underlying any issuer forward transactions
under U.S. generally accepted accounting principles that the Counterparty determines, in good
faith, has resulted in, or will likely result in, a material change in the Counterparty’s
consolidated financial statements, including, without limitation, any such change in accounting
treatment requiring that (i) all or any portion of the Transactions must be recorded as liabilities
on the Counterparty’s balance sheet or (ii) changes in the mark-to-market value of the Transactions
must be recorded as an expense on the Counterparty’s income statement.

          (d) Funding Cost Adjustment. If for any reason, including without limitation, a
Shortfall Prepayment or an Optional Early Termination, the relevant reference period with respect
to any payment due hereunder does not correspond with the reference period used for purposes of
calculating the Floating Rate, Citigroup shall adjust the terms of the relevant Transactions
appropriately to reflect any additional funding costs incurred, or any reduction in funding costs
received, by Citigroup.

          (e) Increased Costs. If Citigroup reasonably determines that after the Trade Date of
any Transaction hereunder (i) due to either (x) the introduction of or any change in or in the
interpretation of any law or regulation or (y) the compliance with any guideline or request from
any central bank or other governmental authority (whether or not having the force of law), there
shall be any increase in the cost to Citigroup or its affiliates of engaging in such Transaction or
related transactions, or (ii) compliance with any law or regulation or any guideline or request
from any central bank or other governmental authority (whether or not having the force of law)
adopted after the date hereof, increases or would increase the amount of any capital required or
expected to be maintained by Citigroup or any affiliate of Citigroup as a direct or indirect
consequence of such Transaction (“Increased Costs”), then Counterparty shall from time to
time until such Transaction is no longer outstanding (whether through an Optional Early Settlement,
a Partial Termination Event or otherwise), promptly upon demand by Citigroup, convey to Citigroup
additional amounts sufficient to compensate Citigroup for such Increased Costs as are incurred, so
long as such amounts have accrued since a date at least 180 days prior to the date of demand. A
certificate in reasonable detail computing the amount of Increased Costs, submitted to Counterparty
by Citigroup, shall be conclusive and binding for all purposes absent manifest error and shall
accompany the demand for payment.

          (f) Priority of Claims. The parties acknowledge and agree that Counterparty’s
obligations with respect to each Transaction under this Master Confirmation and any claims arising
out of or relating hereto shall rank at least pari passu in all respects with all of its other
obligations to unsecured, unsubordinated creditors.

          (g) Securities Contract; Swap Agreement. The parties hereto intend for: (i) each
Transaction hereunder to be a “securities contract” and a “swap agreement” as defined in the
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the
parties hereto to be entitled to the protections afforded by, among other Sections, Sections
362(b)(6), 555 and 560 of the Bankruptcy Code; (ii) a party’s right to liquidate a Transaction and
to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with
respect to the other party to constitute a “contractual right” as described in the Bankruptcy Code;
(iii) any cash, securities or other property provided as performance assurance, credit support or
collateral with respect to a Transaction to constitute “margin payments” and “transfers” under a
“swap agreement” as defined in the Bankruptcy Code; and (iv) all payments for, under or in
connection with a Transaction, all payments for the Shares and the transfer of such Shares to
constitute “settlement payments” and “transfers” under a “swap agreement” as defined in the
Bankruptcy Code.

          (h) Repurchase Notices. Counterparty shall, if Counterparty effects any repurchase of
Shares, promptly give Citigroup a written notice of such repurchase (a “Repurchase Notice”)
on such day if,

14

 

following such repurchase, the Equity Percentage as determined on such day is (i)
equal to or greater than 4.5% and (ii) greater by 0.3% than the Equity Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater by 0.3% than the Equity Percentage as of the date hereof). The “Equity Percentage”
as of any day is the fraction the numerator of which is the aggregate Number of Shares for all
Transactions hereunder and the denominator of which is the number of Shares outstanding on such
day.

          (i) Counterparty Disclosure. The material terms of each Transaction (and any other
similar transactions), and the consequences of such transactions on the financial condition and
results of operations of Counterparty, will be disclosed by Counterparty in accordance with all
rules, regulations, accounting principles (including FAS 150) and laws applicable to Counterparty
in its periodic filings under the Exchange Act and its financial statements and notes thereto.

          (j) Transfer. Notwithstanding any provision of the Agreement to the contrary,
Citigroup may, subject to applicable law, freely transfer or assign all of its rights and
obligations under any Transaction without the consent of Counterparty to one or more entities that
are directly or indirectly controlled by or under common control with Citigroup; provided
that the transferee or assignee (or, if applicable, its guarantor) has a long term senior unsecured
debt rating equal to or better than “A-” from Standard & Poor’s Ratings Services or its successor
(“S&P”) or “A3” from Moody’s Investors Service or its successor (“Moody’s”).

          (k) Confidentiality. Notwithstanding any provision in this Master Confirmation, any
Transaction Confirmation or the Agreement, in connection with Section 1.6011-4 of the Treasury
Regulations, the parties hereby agree that each party (and each employee, representative, or other
agent of such party) may disclose to any and all persons, without limitation of any kind, the U.S.
tax treatment and U.S. tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to such party relating to such U.S. tax treatment and U.S. tax structure, other than any
information for which nondisclosure is reasonably necessary in order to comply with applicable
securities laws.

          (l) Evidence of Authority. On the date hereof, each party shall provide to the other
party evidence satisfactory to such other party of its authority to enter into Transactions
hereunder and the incumbency of the designated signatory hereof.

          (m) Citigroup Ratings Event. If Citigroup Inc. does not have a long term senior
unsecured debt rating of at least “BBB-” from S&P and of at least “Baa3” from Moody’s (a
“Citigroup Ratings Event”), Citigroup shall pledge to Counterparty while the Citigroup
Ratings Event is continuing a number of Shares equal to the Number of Shares hereunder from time to
time, to be held by a third party collateral agent acceptable to the parties, and the parties agree
to negotiate in good faith to enter into agreements to effectuate such pledge and collateral agent
arrangement promptly following such Citigroup Ratings Event.

          (n) Consent to Recording. Each party (i) consents to the recording of the telephone
conversations of trading and marketing personnel of the parties and their Affiliates in connection
with this Master Confirmation and (ii) agrees to obtain any necessary consent of, and give notice
of such recording to, such personnel of it and its Affiliates.

          (o) Severability; Illegality. If compliance by either party with any provision of a
Transaction would be unenforceable or illegal, (i) the parties shall negotiate in good faith to
resolve such unenforceability or illegality in a manner that preserves the economic benefits of the
transactions contemplated hereby and (ii) the other provisions of the Transaction shall not be
invalidated, but shall remain in full force and effect.

          (p) Waiver of Trial by Jury. EACH OF COUNTERPARTY AND CITIGROUP HEREBY IRREVOCABLY
WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS
STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED
ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY TRANSACTION HEREUNDER OR THE
ACTIONS OF CITIGROUP OR ITS AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

15

 

     8. Addresses for Notice: 

	 	 	 	 	 
	If to Citigroup:	 	Citigroup Financial Products Inc.
	 

	 	390 Greenwich Street
	 

	 	New York, NY 10013
	 

	 	Attention:
	 	Equity Derivatives
	 

	 	Facsimile:
	 	(212) 723-8328
	 

	 	Telephone:
	 	(212) 723-7357
	 
	 	 	 	 
	with a copy to:	 	Citigroup Financial Products Inc.
	 	 	388 Greenwich Street, 17th Floor
	 

	 	New York, NY 10013
	 

	 	Attention:
	 	GCIB Legal Group—Derivatives
	 

	 	Facsimile:
	 	(212) 816-7772
	 

	 	Telephone:
	 	(212) 816-2211
	 
	 	 	 	 
	If to Counterparty:

	 	Lexington Realty Trust
	 

	 	One Penn Plaza, Suite 4015
	 

	 	New York, NY 10119-4015
	 

	 	Attention:
	 	Chief Financial Officer
	 

	 	Facsimile:
	 	(212) 594-6600
	 

	 	Telephone:
	 	(212) 692-7200
	 
	 	 	 	 
	with a copy (which shall
	 	 	 	 
	not constitute notice) to:	 	Paul, Hastings, Janofsky & Walker LLP
	 

	 	75 E. 55th Street
	 

	 	New York, NY 10022
	 

	 	Attention:
	 	Mark Schonberger
	 

	 	Facsimile:
	 	(212) 230-7747
	 

	 	Telephone:
	 	(212) 318-6859

     9. Accounts for Payment:

	 	 	 	 	 
	To Citigroup:

	 	To be advised.
	 	 
	 
	To Counterparty:

	 	To be advised.	 	 

16

 

	 	 	 	 	 
	 	Yours sincerely,

CITIGROUP FINANCIAL PRODUCTS INC.

 	 
	 	By:  	/s/ Leonard Ellis
 	 
	 	 	Name:  	Leonard Ellis 	 
	 	 	Title:  	Managing Director 	 
	 

Confirmed as of the
date first above written:

LEXINGTON REALTY TRUST

	 	 	 	 	 
	By:  	/s/ T. Wilson Eglin
 	 
	 	Name:  	T. Wilson Eglin 	 
	 	Title:  	Chief Executive Officer 	 
	 

Signature Page to the

Master Confirmation

 

 

EXHIBIT A

FORM OF ISSUER FORWARD TRANSACTION CONFIRMATION

TRANSACTION CONFIRMATION

	 	 	 
	Date:
	 	_______________
	 
	 	 
	To:
	 	Lexington Realty Trust
(“Counterparty”)
	Telefax No.:
	 	212-594-6600
	Attention:
	 	Chief Financial Officer
	 
	 	 
	From:
	 	Citigroup Financial Products Inc.
(“Citigroup”)
	Telefax No.:
	 	212-615-8985

Transaction Reference Number: ____________________

               The purpose of this communication (this “Transaction Confirmation”) is to set forth
the terms and conditions of the above-referenced Transaction entered into on the Trade Date
specified below between you and us. This Transaction Confirmation supplements, forms a part of,
and is subject to the Master Terms and Conditions for Issuer Forward Transactions dated as of
October 28, 2008 and as amended from time to time (the “Master Confirmation”) between you
and us.

               1. The definitions and provisions contained in the Definitions (as such term is defined in the
Master Confirmation) and in the Master Confirmation are incorporated into this Transaction
Confirmation. In the event of any inconsistency between those definitions and provisions and this
Transaction Confirmation, this Transaction Confirmation will govern.

               2. The particular Transaction to which this Transaction Confirmation relates shall have the
following terms:

	 	 	 
	Trade Date:

	 	[______, 200_]
	 
	 	 
	Effective Date:

	 	[______, 200_]
	 
	 	 
	Number of Shares:

	 	[___]
	 
	 	 
	Initial Price:

	 	USD[___]
	 
	 	 
	Maturity Date:

	 	[______, 200_]
	 
	 	 
	Initial Prepayment Date:

	 	[______, 200_]
	 
	 	 
	Spread:

	 	[___]% per annum

A-1

 

               3. Counterparty hereby agrees (a) to check this Transaction Confirmation promptly upon receipt
so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that
the foregoing correctly sets forth the terms of the agreement between us with respect to the
particular Transaction to which this Transaction Confirmation relates, by manually signing this
Transaction Confirmation and providing any other information requested herein or in the Master
Confirmation and immediately returning an executed copy to Confirmation Unit via 212-615-8985.
Hard copies should be returned to Citigroup Financial Products Inc. c/o Citibank, N.A., 333 West
34th Street, 2nd Floor, New York, New York 10001, Attention: Confirmation
Unit.

	 	 	 	 	 
	 	Yours sincerely,

CITIGROUP FINANCIAL PRODUCTS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Confirmed as of the
date first above written:

LEXINGTON REALTY TRUST

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

A-2

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