Common use of Nature of Lease Clause in Contracts

Nature of Lease. The parties hereto intend that (i) for financial accounting purposes with respect to Lessee, (A) Lessor will be treated as the sublessor of the Traville Site under the Lease and the owner and the lessor of the Improvements and the Manufacturing Facility Site and Lessee will be treated as the lessee of the Manufacturing Facility Site and the sublessee of the Traville Site under the Lease and the lessee of the Improvements, and (B) the Investors will be deemed to have an equity investment in Lessor, and (ii) for all federal and all state and local income tax purposes and bankruptcy and commercial law purposes, (A) the Lease will be treated as a financing arrangement, (B) Lessor, the Investors and the Lenders will be deemed lenders making loans to Lessee in an amount equal to the sum of the Investor Amounts and the outstanding principal amount of the Loans, which loans are secured by the Liquid Collateral to the extent of the Lessor's interest therein and each Property, (C) Lessee LEASE AGREEMENT (HGSI) will be treated as the owner of the Properties for tax purposes and will be entitled to all tax benefits ordinarily available to an owner of property like the Properties for such tax purposes and (D) the obligations of Lessee to pay the Base Rent and any part of the Lease Balance shall be treated as payments of interest and principal, respectively, for Federal and state income tax and bankruptcy and commercial law purposes. Nevertheless, each party acknowledges and agrees that no other party has made any representations or warranties to any other party concerning the tax, accounting or legal characteristics of the Operative Documents and that each party has obtained and relied upon such tax, accounting and legal advice concerning the Operative Documents as it deems appropriate. Lessor shall have a valid and binding security interest in and Lien on the Liquid Collateral and each Property, free and clear of all Liens other than Permitted Liens, as security for the obligations of Lessee under the Operative Documents.

Nature of Lease. The parties hereto intend that (i) for financial accounting purposes with respect to the Lessee, (A) the Lessor will be treated as the sublessor of the Traville Site under the Lease and the owner and the lessor of the Improvements Facility and the Manufacturing Facility Site and Lessee will be treated as the lessee of the Manufacturing Facility Site and the sublessee of the Traville Site under the Lease and the lessee of the Improvements, and (B) the Investors will be deemed to have an equity investment in Lessorthis Lease, and (ii) for all federal and all state and local income tax purposes and bankruptcy and commercial law purposes, (A) the Lease will be treated as a financing arrangement, (B) Lessor, the Investors Lessor and the Lenders other Participants will be deemed lenders making loans to the Lessee in an amount equal to the sum of the Investor Amounts and the outstanding principal amount of the Loans, which loans are secured by the Liquid Collateral to the extent of the Lessor's interest therein and each PropertyFacility, (C) the Lessee LEASE AGREEMENT (HGSI) will be treated as the owner of the Properties Facility for tax purposes and will be entitled to all tax benefits ordinarily available to an owner of property like such as the Properties Facility for such tax purposes and (D) the obligations of the Lessee to pay the Base Rent and any part of the Lease Balance shall be treated as payments of interest and principal, respectively, for Federal federal and state income tax and bankruptcy and commercial law purposes. Nevertheless, each party acknowledges and agrees that no other party has made any representations or warranties to any other party concerning the tax, accounting or legal characteristics of the Operative Documents and that each party has obtained and relied upon such tax, accounting and legal advice concerning the Operative Documents as it deems appropriate. The Lessor shall have a valid and binding security interest in and Lien on the Liquid Collateral and each PropertyFacility, free and clear of all Liens other than Permitted Liens, as security for the obligations of the Lessee under the Operative Documents.

Nature of Lease. The parties hereto intend that (i) for financial accounting purposes with respect to Lessee, (A) Lessor will be treated as the sublessor of the Traville Site Land under the this Lease and the owner and the lessor of the Improvements and the Manufacturing Facility Site and Lessee will be treated as the lessee of the Manufacturing Facility Site and the sublessee of the Traville Site Land under the this Lease and the lessee of the Improvements, and (B) the Investors will be deemed to have an equity investment in Lessor, Ground Lessee and Lessor and the Lenders will be deemed lenders to Ground Lessee and Lessor and (ii) for all federal and all state and local income tax purposes and bankruptcy and commercial law purposes, (A) the this Lease will be treated as a financing arrangement, (B) Lessor, the Investors and the Lenders will be deemed lenders making loans to Lessee in an amount equal to the sum of the Investor Amounts and the outstanding principal amount of the Loans, which loans Loans are secured by the Liquid Collateral to the extent of the Lessor's interest therein and each PropertyProperties, (C) Lessee LEASE AGREEMENT (HGSI) will be treated as the owner of the Properties for tax purposes and will be entitled to all tax benefits ordinarily available to an owner of property like the Properties for such tax purposes and (D) the obligations of the Lessee to pay the Base Rent and any part of the Lease Balance shall be treated as payments of if interest and principal, respectively, for Federal and state income tax and bankruptcy and commercial law purposes. Nevertheless, each party acknowledges and agrees that no other party has made 7 any representations or warranties to any other party concerning the tax, accounting or and legal characteristics of advice concerning the Operative Documents and that each party has obtained and relied upon such tax, accounting and legal advice concerning the Operative Documents as it deems appropriate. Lessor shall be deemed to have a valid and binding security interest in and Lien on the Liquid Collateral and each PropertyProperties, free and clear of all Liens other than Permitted Liens, as security for the obligations of Lessee under the Operative Documents. Except as otherwise provided by law or in connection with a settlement, compromise or adjudication made under the provisions of Section 9.2(b) of the Participation Agreement, each of the parties to this Lease agrees that it will not, nor will it permit any Affiliate to at any time, directly or indirectly take any action or fail to take any action with respect to the filing of any income tax or other tax return, to the extent that such action or failure to take action would be inconsistent with the intention of the parties expressed in this Section 2.2.

Nature of Lease. The parties hereto intend that (i) for financial accounting purposes with respect to the Lessee, (A) the Lessor will be treated as the sublessor of the Traville Site under the Lease and the owner and the lessor of the Improvements Facility and the Manufacturing Facility Site and Lessee will be treated as the lessee of the Manufacturing Facility Site and the sublessee of the Traville Site under the Lease and the lessee of the Improvementsthis Lease, and (B) the Investors will be deemed to have an equity investment in Lessor, the Lessor and (ii) for all federal and all state and local income tax purposes and bankruptcy and commercial law purposes, (A) the Lease will be treated as a financing arrangement, (B) the Lessor, the Investors and the Lenders will be deemed lenders making loans to the Lessee in an amount equal to the sum of the Investor Amounts and the outstanding principal amount of the Loans, which loans are secured by the Liquid Collateral to the extent of the Lessor's interest therein and each PropertyFacility, (C) the Lessee LEASE AGREEMENT (HGSI) will be treated as the owner of the Properties Facility for tax purposes and will be entitled to all tax benefits ordinarily available to an owner of property like such as the Properties Facility for such tax purposes and (D) the obligations of the Lessee to pay the Base Rent and any part of the Lease Balance shall be treated as payments of interest and principal, respectively, for Federal federal and state income tax and bankruptcy and commercial law purposes. Nevertheless, each party acknowledges and agrees that no other party has made any representations or warranties to any other party concerning the tax, accounting or legal characteristics of the Operative Documents and that each party has obtained and relied upon such tax, accounting and legal advice concerning the Operative Documents as it deems appropriate. The Lessor shall have a valid and binding security interest in and Lien on the Liquid Collateral and each PropertyFacility, free and clear of all Liens other than Permitted Liens, as security for the obligations of the Lessee under the Operative Documents.. ARTICLE III RENT