PARTICIPATION AGREEMENT

Among

BORDERS GROUP, INC.,

BORDERS, INC.,

WILMINGTON TRUST COMPANY,
not in its individual capacity
except as expressly stated herein,
but solely as Owner Trustee,

JESS PROJECT FUNDING CORP.,
as Owner Beneficiary,

FIRST SECURITY BANK, N. A.,
as Collateral Trustee,

And

THE PURCHASERS IDENTIFIED HEREIN

Dated as of December 1, 1998

全文目录如下：

详细内容见附件

ARTICLE I  TERMS OF ISSUANCE OF THE NOTES

Section 1.1  Issuance and Sale of Notes.

Section 1.2 Closing....................................

Section 1.3 Wire Transfer.. ....................

Section 1.4 Failure to Deliver.. …...........

ARTICLE II  CONDITIONS TO THE CLOSING

Section 2.1 Representations and Warranties.

Section 2.2 Performance; No Default.

Section 2.3 Indenture.. …........................

Section 2.4 Notes.. …..............................

Section 2.5 Collateral Assignments of Project Loan Documents. ..

Section 2.6 Assignments of Mortgage, et al...

Section 2.7 Certification of Cost. ..........

Section 2.8 Surveys, Environmental Reports and Zoning..

Section 2.9 Mortgagee's Title Insurance; Endorsements...

Section 2.10 Estoppels..............................

Section 2.11 Letter of Credit.. ............

Section 2.12 Compliance Certificate.

Section 2.13 Opinions of Counsel. ….

Section 2.14 Purchase Permitted By Applicable Law, etc. .

Section 2.15 Payment of Special Counsel and other Fees.

Section 2.16 Payment of Recording Fees, Charges and Taxes.

Section 2.17 Private Placement Number.

Section 2.18 offeree Letter..

Section 2.19 Proceedings and Documents.

ARTICLE III  REPRESENTATIONS AND WARRANTIES

Section 3.1 Representations of the Issuer. .

Section 3.2 Representations of the Collateral Trustee.

Section 3.3 Representations of the Guarantor..

Section 3.4 Representations of the Tenant..

Section 3.5 Representations of the Owner Beneficiary.

Section 3.6 Representations of the Purchasers.

ARTICLE IV  GUARANTOR COVENANTS

Section 4.1 Reporting Requirements.

Section 4.2 Inspection Rights. …...........

Section 4.3 Transaction Expenses.. …….

Section 4.4 Payment of Certain Fees and Expenses.

ARTICLE V  DIRECT PAYMENT

Section 5.1 Direct Payment.. …..............

ARTICLE VI  DEFINITIONS

Section 6.1 General Definitions. ….........

Section 6.2 Indenture Definitions......... ..

ARTICLE VII  OTHER COVENANTS AND AGREEMENTS

Section 7.1 Covenants of the Trust Company, the Issuer, the Collateral Trustee and the Owner Beneficiary. ………….................

Section 7.2 Guarantor's Operative Agreement Rights. .

Section 7.3 Covenants of the Collateral Trustee The Collateral Trustee

Section 7.4 Collateral Trustee Project Loan Agreement Rights. .

Section 8.1 Restrictions of Transfer.. ….

Section 8.2 Effect of Transfer.. …..........

ARTICLE IX  INDEMNIFICATION

Section 9.1 General Indemnity. …..........

Section 9.2 General Tax Indemnity. ……

ARTICLE X  MISCELLANEOUS

Section 10.1 Amendments, Etc. .............

Section 10.2 Notices, Etc.................. …..

Section 10.3 No Waiver; Remedies. . ….

Section 10.4 Binding Effect; Term; Assign ability. .

Section 10.5 Governing Law. …..............

Section 10.6 Execution in Counterparts.

Section 10.7 Third Party Beneficiaries..

Section 10.8 Survival of Covenants and Representations. .

Section 10.9 Sever ability.. ….................

Section 10.10 Confidential Information. ……

Section 10.11 Issuer Recourse. ......... ….

Section 10.12 Owner Beneficiary Exculpation. .

ATTACHMENTS TO PARTICIPATION AGREEMENT

SCHEDULE I -- Name and Address of Purchasers

EXHIBIT A-- Description of Closing Opinion of Special Counsel for Purchasers

EXHIBIT B-- Description of Closing Opinion of Counsel for Issuer

EXHIBIT C-- Description of Closing Opinion of Counsel for Collateral Trustee

EXHIBIT D-- Description of Closing Opinion of Counsel for Guarantor and Tenant

EXHIBIT E-- Description of Closing Opinion of Counsel for Project Borrowers

EXHIBIT F-- Representations and Warranties of Issuer

EXHIBIT G-- Representations and Warranties of Collateral Trustee

EXHIBIT H-1-- Representations and Warranties of Guarantor

EXHIBIT H-2-- Representations and Warranties of Tenant

EXHIBIT I-- Representations and Warranties of Owner Beneficiary