Exhibit 10.7
 
MASTER
LAND AND BUILDING LEASE
 
(Pool A)
 
between
 
 
DBMFI LLC,
a Delaware limited liability company,
 
as LANDLORD
 
and
 
 
MORGAN’S FOODS, INC.,
an Ohio corporation
 
as TENANT
 
 
December 9, 2011
 
 
MASTER LAND AND BUILDING LEASE
 

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INDEX TO MASTER LAND AND BUILDING LEASE
 
 

ARTICLE 1      DEMISE OF PREMISES  2         ARTICLE 2   TERM  2         ARTICLE
3   RENT  4         ARTICLE 4   USE  8         ARTICLE 5   PERFORMANCE OF
OBLIGATIONS; ACCEPTANCE OF DEMISED PROPERTIES  8         ARTICLE 6   ALTERATIONS
 9         ARTICLE 7   REPAIRS AND MAINTENANCE  10         ARTICLE 8  
COMPLIANCE WITH LAW  11         ARTICLE 9  
DISCLAIMER AND INDEMNITIES
 11         ARTICLE 10  
INSURANCE
 13         ARTICLE 11  
DAMAGE OR DESTRUCTION
 16         ARTICLE 12  
EMINENT DOMAIN
 16         ARTICLE 13  
FINANCIAL COVENANTS OF TENANT
 17         ARTICLE 14   [Intentionally Omitted]  19         ARTICLE 15   EVENTS
OF DEFAULT  19         ARTICLE 16   FORCE MAJEURE  23         ARTICLE 17  
NOTICES
 24         ARTICLE 18   ACCESS  25         ARTICLE 19   SIGNS  25        
ARTICLE 20   IMPROVEMENTS, BUILDING EQUIPMENT AND RESTAURANT EQUIPMENT  26      
  ARTICLE 21   END OF TERM; HOLDING OVER  27         ARTICLE 22  
TENANT ASSIGNMENT AND SUBLETTING
 27         ARTICLE 23   FINANCINGS  30         ARTICLE 24   ESTOPPEL
CERTIFICATE
32
        ARTICLE 25   RECORDING
32
        ARTICLE 26   APPLICABLE LAW; WAIVER OF JURY TRIAL
32
        ARTICLE 27   LIABILITY OF PARTIES
33
        ARTICLE 28   ATTORNEYS’ FEES; EXPENSES
33
        ARTICLE 29   ENVIRONMENTAL 34  34         ARTICLE 30   LANDLORD
ASSIGNMENT 36  36         ARTICLE 31   REPLACEMENTS 37  37         ARTICLE 32  
[Intentionally Omitted] 41  41         ARTICLE 33   LANDLORD’S RIGHTS UNDER
LEASE  41         ARTICLE 34   [Intentionally Omitted]  42         ARTICLE 35  
[Intentionally Omitted]  42         ARTICLE 36   INTERPRETATION; MISCELLANEOUS
 42

 
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 37   QUIET ENJOYMENT SUBJECT TO DILIGENCE MATTERS  42         ARTICLE 38
 
NO MERGER OF TITLE
 43         ARTICLE 39   ADDITIONAL CERTIFICATIONS, REPRESENTATIONS AND
WARRANTIES  43         ARTICLE 40   BROKERS  44         ARTICLE 41   STATE
SPECIFIC PROVISIONS  44

 
 

Schedule 1    Defined Terms       Schedule 2   List of Franchise Agreements    
  Exhibit A   Location/Address/Legal Description of Demised Properties      
Exhibit B   Form of SNDA       Exhibit C    Form of Tenant’s Estoppel
Certificate       Exhibit D-1    Form of Memorandum of Lease (Missouri)      
Exhibit D-2    Form of Memorandum of Lease (New York)       Exhibit D-3   Form
of Memorandum of Lease (Ohio)       Exhibit D-4   Form of Memorandum of Lease
(Pennsylvania)       Exhibit D-5   Form of Memorandum of Lease (West Virginia)  
    Exhibit E   Form of Landlord Assignment Lease Agreement       Exhibit F  
Intentionally Omitted       Exhibit G   St. Louis Properties

 
MASTER LAND AND BUILDING LEASE
 
 

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MASTER
LAND AND BUILDING LEASE
(Pool A)
 
THIS MASTER LAND AND BUILDING LEASE (this “Lease”) is made and entered into as
of December 9, 2011 (the “Commencement Date”), by and between DBMFI LLC, a
Delaware limited liability company (“Landlord”) and MORGAN’S FOODS, INC., an
Ohio corporation (“Tenant ”).
 
R E C I T A L S
 
A.           Landlord owns (i) good and indefeasible title in fee simple to the
land described on Exhibit A attached hereto (collectively, the “Land”); and (ii)
all Improvements and other structures located on any of the Land; any rights of
way, easements, parking covenants, entitlements, privileges and other rights
appurtenant to the Land, including regarding any street adjoining any portion of
the Land and any air and development rights related to the Land and any and all
fixtures at or on the Land, including all of the machinery, equipment and
systems at or on any of the Land (collectively, “Building Equipment”), including
the following (but specifically excluding any of the following that are not
“fixtures” pursuant to applicable Law): built-in equipment; compressors;
appliances; engines; electrical, plumbing, heating, ventilating, and air
conditioning machinery; fire sprinklers and fire suppression equipment; lighting
(including emergency lighting); security cameras and systems; paging and sound
systems; walk-in coolers and grill hoods; built-in sinks; built-in shelving;
awnings, and supports for signs (all of the foregoing in this clause (ii),
collectively, “Improvements”). The Land and all Improvements thereon are
collectively referred to herein as “Demised Properties” and each individually as
a “Demised Property .”
 
B.           The personal property, trade fixtures and equipment owned or leased
by Tenant located at any Demised Properties and used in connection with the
operation of the business at the Demised Properties (other than the Building
Equipment) are referred to herein collectively as the “Restaurant Equipment .”
 
C.           Tenant desires to lease from Landlord, and Landlord desires to
lease to Tenant, the Demised Properties so that Tenant may, in accordance with
and subject to the terms, conditions and restrictions of this Lease, operate (or
cause the operation of) a Kentucky Fried Chicken (or KFC) restaurant at each
Demised Property.
 
D.           Notwithstanding any other provision of this Lease, this Lease
constitutes a single and indivisible lease of all the Demised Properties
collectively, and is not an aggregation of leases for the separate Demised
Properties. Neither Landlord nor Tenant would have entered into this Lease
except as a single and indivisible lease, and the rental herein has been
established on the basis of the specific structure of the subject transaction
and the economic benefits and risk profile of the transaction as a whole, and
not based on the valuation or price of any individual Demised Property. Tenant’s
rights to any one Demised Property are dependent on Tenant’s full performance of
its obligations as to every other Demised Property, and consideration supporting
any agreements under this Lease regarding any Demised Property also supports the
agreements under this Lease regarding all other Demised Properties.
 
MASTER LAND AND BUILDING LEASE
 
 

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NOW, THEREFORE, in consideration of the lease of the Demised Properties and the
rents, covenants and conditions herein set forth, and with reference to the
definitions of various terms used herein as set forth on Schedule 1 hereto,
Landlord and Tenant do hereby covenant, promise and agree as follows:
 
ARTICLE 1     DEMISE OF PREMISES
 
Subject to the terms and conditions contained herein, Landlord does hereby lease
unto Tenant, and Tenant does hereby hire from Landlord, for the term hereinafter
provided in Article 2 , the Demised Properties for the use thereof by Tenant,
Tenant’s employees, customers and invitees.
 
ARTICLE 2     TERM
 
Section 2.01
(a)           This Lease shall commence on the Commencement Date and terminate
on December 8, 2031 (the “Original Lease Term”) unless sooner terminated as
hereinafter set forth. The “Lease Term,” as such term is used herein, means the
Original Lease Term as extended (or as may be extended) pursuant to Section 2.02
below, unless sooner terminated as hereinafter set forth.
 
(b)           This Lease shall be deemed to be in full force and effect upon the
Commencement Date. Tenant shall be deemed in possession of the Demised
Properties upon the Commencement Date.
 
Section 2.02
 
(a)           Tenant shall have the option to extend the term of this Lease for
up to four (4) separate option periods upon and subject to the terms set forth
below in this Section 2.02. The first option period (the “First Option Period”)
shall commence at the expiration of the Original Lease Term. The second option
period (the “Second Option Period”) shall commence at the expiration of the
First Option Period. The third option period (the “Third Option Period”) shall
commence at the expiration of the Second Option Period. The fourth option period
(the “Fourth Option Period”) shall commence at the expiration of the Third
Option Period. The First Option Period, the Second Option Period, the Third
Option Period and the Fourth Option Period are sometimes referred to herein
collectively as the “Option  Periods” and individually as an “Option Period.”
Each Option Period shall continue for a period of five (5) years from and after
the commencement date of such Option Period. Except as otherwise expressly
provided herein, all of the terms and conditions of this Lease applicable to the
Original Lease Term shall continue to apply during each Option Period. In no
event shall Tenant have any options to extend the term of this Lease except as
expressly provided herein. A notice delivered by Tenant to Landlord in order to
extend the term of this Lease for any Option Period pursuant to the terms hereof
is referred to herein as an “Extension Notice”.
 
(b)           To validly extend the Lease Term for the First Option Period for
all the Demised Properties subject to this Lease at the date of Tenant’s
delivery to Landlord of an Extension Notice for the First Option Period (i)
Tenant must and shall deliver to Landlord such Extension Notice not earlier than
fifteen (15) months prior to the expiration of the Original Lease Term and not
later than twelve (12) months prior to the expiration of the Original Lease
Term, and (ii) as of the date such Extension Notice is delivered to Landlord,
and as of the date the First Option Period is scheduled to commence, there shall
be no existing Default or Event of Default under this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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(c)           To validly extend the Lease Term for the First Option Period for
some, but not all, Demised Properties subject to this Lease at the date of
Tenant’s delivery to Landlord of an Extension Notice for the First Option Period
(a “PE First Option Period” and such option, a “PE First Option”) (i) Tenant
must and shall deliver to Landlord such Extension Notice not earlier than
fifteen (15) months prior to the expiration of the Original Lease Term and not
later than twelve (12) months prior to the expiration of the Original Lease
Term; (ii) Tenant’s Extension Notice shall list the Demised Properties that
Tenant desires be subject to such extension (the “First Option Extension
Properties ”) provided, however, that the First Option Extension Properties must
comprise at least seventy-five percent (75%) of all the Demised Properties
covered by this Lease (other than the St. Louis Properties) as of the date of
Tenant’s delivery to Landlord of such Extension Notice; and (iii) as of the date
such Extension Notice is delivered to Landlord, and as of the date the First
Option Period is scheduled to commence, there shall be no existing Default or
Event of Default under this Lease.
 
(d)           To validly extend the Lease Term for the Second Option Period for
all the Demised Properties subject to this Lease at the date of Tenant’s
delivery to Landlord of an Extension Notice for the Second Option Period (i)
Tenant must have validly extended this Lease for the First Option Period
(whether such First Option Period is for all Demised Properties under this Lease
or a PE First Option Period) (ii) Tenant must and shall deliver to Landlord such
Extension Notice not earlier than fifteen (15) months prior to the expiration of
the First Option Period and not later than twelve (12) months prior to the
expiration of the First Option Period, and (iii) as of the date such Extension
Notice is delivered to Landlord, and as of the date the Second Option Period is
scheduled to commence, there shall be no existing Default or Event of Default
under this Lease.
 
(e)           To validly extend the Lease Term for the Second Option Period for
some, but not all, Demised Properties subject to this Lease at the date of
Tenant’s delivery to Landlord of an Extension Notice for the Second Option
Period (a “PE Second Option Period” and such option, a “PE Second  Option”) (i)
Tenant must have validly extended this Lease for the First Option Period
(whether such First Option Period is for all Demised Properties under this Lease
or a PE First Option Period), (ii) Tenant must and shall deliver to Landlord
such Extension Notice not earlier than fifteen (15) months prior to the
expiration of the First Option Period and not later than twelve (12) months
prior to the expiration of the First Option Period; (iii) Tenant’s Extension
Notice for the Second Option Period shall list the Demised Properties that
Tenant desires be subject to such extension (the “Second Option Extension
Properties”); provided, however, that the Second Option Extension Properties
must comprise at least seventy-five percent (75%) of all the Demised Properties
covered by this Lease (other than the St. Louis Properties) as of the date of
Tenant’s delivery to Landlord of such Extension Notice; and (iv) as of the date
such Extension Notice is delivered to Landlord, and as of the date the Second
Option Period is scheduled to commence, there shall be no existing Default or
Event of Default under this Lease.
 
(f)           To validly extend the Lease Term for the Third Option Period for
all the Demised Properties subject to this Lease at the date of Tenant’s
delivery to Landlord of an Extension Notice for the Third Option Period (i)
Tenant must have validly extended this Lease for the Second Option Period
(whether such Second Option Period is for all Demised Properties under this
Lease or a PE Second Option Period) (ii) Tenant must and shall deliver to
Landlord such Extension Notice not earlier than fifteen (15) months prior to the
expiration of the Second Option Period and not later than twelve (12) months
prior to the expiration of the Second Option Period, and (iii) as of the date
such Extension Notice is delivered to Landlord, and as of the date the Third
Option Period is scheduled to commence, there shall be no existing Default or
Event of Default under this Lease.
 
(g)           To validly extend the Lease Term for the Third Option Period for
some, but not all, Demised Properties subject to this Lease at the date of
Tenant’s delivery to Landlord of an Extension Notice for the Third Option Period
(a “PE Third Option Period” and such option, a “PE Third Option”) (i) Tenant
must have validly extended this Lease for the Second Option Period (whether such
Second Option Period is for all Demised Properties under this Lease or a PE
Second Option Period), (ii) Tenant must and shall deliver to Landlord such
Extension Notice not earlier than (15) months prior to the expiration of the
Second Option Period and not later than twelve (12) months prior to the
expiration of the Second Option Period; (iii) Tenant’s Extension Notice for the
Third Option Period shall list the Demised Properties that Tenant desires be
subject to such extension (the “Third Option Extension Properties”); provided,
however, that the Third Option Extension Properties must comprise at least
seventy-five percent (75%) of all the Demised Properties covered by this Lease
(other than the St. Louis Properties) as of the date of Tenant’s delivery to
Landlord of such Extension Notice; and (iv) as of the date such Extension Notice
is delivered to Landlord, and as of the date the Third Option Period is
scheduled to commence, there shall be no existing Default or Event of Default
under this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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(h)           To validly extend the Lease Term for the Fourth Option Period for
all the Demised Properties subject to this Lease at the date of Tenant’s
delivery to Landlord of an Extension Notice for the Fourth Option Period (i)
Tenant must have validly extended this Lease for the Third Option Period
(whether such Third Option Period is for all Demised Properties under this Lease
or a PE Third Option Period) (ii) Tenant must and shall deliver to Landlord such
Extension Notice not earlier than (15) months prior to the expiration of the
Third Option Period and not later than twelve (12) months prior to the
expiration of the Third Option Period, and (iii) as of the date such Extension
Notice is delivered to Landlord, and as of the date the Fourth Option Period is
scheduled to commence, there shall be no existing Default or Event of Default
under this Lease.
 
(i)           To validly extend the Lease Term for the Fourth Option Period for
some, but not all, Demised Properties subject to this Lease at the date of
Tenant’s delivery to Landlord of an Extension Notice for the Fourth Option
Period (a “PE Fourth Option Period” and such option, a “PE Fourth  Option”) (i)
Tenant must have validly extended this Lease for the Third Option Period
(whether such Third Option Period is for all Demised Properties under this Lease
or a PE Third Option Period), (ii) Tenant must and shall deliver to Landlord
such Extension Notice not earlier than (15) months prior to the expiration of
the Third Option Period and not later than twelve (12) months prior to the
expiration of the Third Option Period; (iii) Tenant’s Extension Notice for the
Fourth Option Period shall list the Demised Properties that Tenant desires be
subject to such extension (the “Fourth Option Extension Properties”); provided,
however, that the Fourth Option Extension Properties must comprise at least
seventy-five percent (75%) of all the Demised Properties covered by this Lease
(other than the St. Louis Properties) as of the date of Tenant’s delivery to
Landlord of such Extension Notice; and (iv) as of the date such written
Extension Notice is delivered to Landlord, and as of the date the Fourth Option
Period is scheduled to commence, there shall be no existing Default or Event of
Default under this Lease.
 
(j)           Without limiting anything contained in Section 36.02 hereof, time
is of the strictest essence in the performance of each provision of this Section
2.02 . Either party, upon request of the other, shall execute and acknowledge,
in form suitable for recording, an instrument confirming any Option Period, with
Tenant paying all applicable recording costs.
 
ARTICLE 3     RENT
 
Section 3.01     Rent. Tenant shall pay all Base Rent and Additional Rent, from
and after the Commencement Date and thereafter throughout the Lease Term,
without offset, deduction, or abatement, except as may be otherwise expressly
provided herein. Notwithstanding the foregoing, any amounts due by Tenant to
Landlord hereunder for which no due date is expressly specified herein shall be
due within fifteen (15) days following the delivery to Tenant by Landlord of
written notice of such amounts due. Except as otherwise expressly provided
herein, in the event of nonpayment by Tenant of any Rent, Landlord shall have
the same rights and remedies in respect thereof regardless of whether such Rent
is Base Rent or Additional Rent. All payments of Rent due to Landlord shall be
paid to Landlord (at its election from time to time) in one of the following
manners: (a) by electronic deposit into an account designated by Landlord (a
“Landlord’s Account”), (b) by mail at Landlord’s address set forth in Article 17
, or (c) by mail to any other place in the United States designated by Landlord
upon at least thirty (30) days’ prior written notice to Tenant.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 3.02     Base Rent .
 
(a)           The following terms shall have the following meanings:
 
(i)            “Base Date” means (A) if the Commencement Date is the first day
of a calendar month, the Commencement Date, and (B) if the Commencement Date is
other than the first day of a calendar month, the first day of the first
calendar month occurring after the Commencement Date.
 
(ii)           “Initial Adjustment Dates” means, collectively, each anniversary
of the Base Date, through and including the fourth (4th) anniversary of the Base
Date.
 
(iii)          “Initial Base Rent Escalation” means one and one-half percent
(1.5%).
 
(iv)         “PE Option” means any of the First PE Option, the Second PE Option,
the Third PE Option or the Fourth PE Option.
 
(v)           “PE Option Base Rent” means, for any PE Option (A) the product of
(i) the total dollar amount of all sales at all PE Option Extension Properties
for the latest consecutive twelve (12) calendar month period for which sales
information has been delivered to Landlord under Section 13.02 as of the
calculation date, divided by (ii) the total dollar amount of all sales at all
Demised Properties for the latest consecutive twelve (12) calendar month period
for which sales information has been delivered to Landlord under Section 13.02
as of the calculation date, multiplied by (B) the Base Rent applicable
immediately prior to the PE Option Period caused by the exercise of such PE
Option, multiplied by (C) 110%.
 
(vi)         “PE Option Extension Properties” means any of the First PE Option
Extension Properties, the Second PE Option Extension Properties, the Third PE
Option Extension Properties or the Fourth PE Option Extension Properties.
 
(vii)        “ PE Option Period” means any of the First PE Option Period, the
Second PE Option Period, the Third PE Option Period or the Fourth PE Option
Period.
 
(viii)       “Subsequent Adjustment Dates” means, collectively, (A) the fifth
(5th) anniversary of the Base Date, (B) the tenth (10th) anniversary of the Base
Date, (C) the fifteenth (15th) anniversary of the Base Date, (D) in the event
the option for a First Option Period (other than a PE First Option Period) is
timely exercised as provided in Article 2, the twentieth (20th) anniversary of
the Base Date, (E) in the event the option for a Second Option Period (other
than a PE Second Option Period) is timely exercised as provided in Article 2,
the twenty-fifth (25th) anniversary of the Base Date, (F) in the event the
option for a Third Option Period (other than a PE Third Option Period) is timely
exercised as provided in Article 2, the thirtieth (30th) anniversary of the Base
Date, and (G) in the event the option for a Fourth Option Period (other than a
PE Fourth Option Period) is timely exercised as provided in Article 2, the
thirty-fifth (35th) anniversary of the Base Date.
 
MASTER LAND AND BUILDING LEASE
 
 

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(ix)           “ Subsequent Base Rent Escalation” means ten percent (10%).
 
(b)           The base rent amount for the Demised Properties for each month of
the Lease Term shall be US$95,122, as increased as hereinafter provided (“Base
Rent”). Tenant shall pay to Landlord Base Rent, in advance, without demand
therefor, on or before the first day of each and every calendar month during the
Lease Term and if the Commencement Date is not the first day of a calendar
month, Tenant shall pay to Landlord pro-rated Base Rent on the Commencement Date
for the partial calendar month in which the Commencement Date occurs.
 
(c)           Subject to the terms of this Section, (i) on each of the Initial
Adjustment Dates, the Base Rent shall increase by the Initial Base Rent
Escalation, and such increased Base Rent shall apply for the ensuing one-year
period; and (ii) on each of the Subsequent Adjustment Dates, the Base Rent shall
increase by the Subsequent Base Rent Escalation, and such increased Base Rent
shall apply for the ensuing five-year period. For the avoidance of doubt, the
parties acknowledge that Base Rent for any PE Option Period shall be determined
as provided in clause (d) of this Section 3.02 (and not this clause (c) of this
Section 3.02).
 
(d)           Base Rent for any PE Option Period shall be the PE Option Base
Rent. After delivery to Landlord by Tenant of a timely and valid exercise of a
PE Option, and not later than thirty (30) days prior to the commencement of the
applicable PE Option Period, Landlord shall calculate the PE Option Base Rent
and notify Tenant of such calculation, which shall be binding on the parties
absent manifest error.
 
Section 3.03     Additional Rent .
 
(a)           If by applicable Law, any general or special assessment or like
charge may be paid in installments without any penalty whatsoever, then such
assessment may be paid in such installments and Tenant shall only be liable for
the portion thereof that is allocable or attributable to the Lease Term or any
portion thereof. If such assessment or charge may be payable in installments
with interest, Tenant may pay such assessment or charge in installments,
together with all interest thereon, provided that if such installments extend
beyond the Lease Term, Landlord shall have the option to pay all remaining
installments coming due following the Lease Term without interest.
 
(b)           Tenant shall pay all Real Estate Taxes directly to the collecting
authority no less than thirty (30) days prior to the delinquency date thereof
and shall provide Landlord not less than ten (10) Business Days prior to such
delinquency date a copy of the paid receipt for each installment of Real Estate
Taxes so paid. Nothing in this Lease shall obligate Tenant to pay any estate,
inheritance, franchise, net income or similar taxes of Landlord (other than any
rental taxes imposed upon the Landlord that are measured by or based in whole or
in part directly upon the Rent payable under this Lease, whether existing at the
date hereof or hereinafter imposed by any Governmental Authority) nor shall any
of same be deemed Real Estate Taxes, unless the same shall be specifically
imposed in substitution for, or in lieu of, Real Estate Taxes. Notwithstanding
the first sentence of this clause (b), upon the occurrence of both of the
following events, Tenant shall pay Real Estate Taxes to Landlord no less than
thirty (30) days prior to the delinquency date thereof (the “RE Taxes Additional
Rent”) in lieu of payment directly to the applicable collecting authority: (i)
delivery to Tenant of a written request therefor from Landlord, and (ii) the
occurrence and continuance of any Default under this Section 3.03(b) by Tenant,
or the occurrence and the continuance of any Event of Default under any
provision in this Lease (either event described in the foregoing clause (ii) is
referred to herein as a “RE Taxes Additional Rent Trigger”). Funds paid by
Tenant as RE Taxes Additional Rent shall be used only for the payment of the
Real Estate Taxes. If Tenant fails to pay the appropriate party (Landlord or the
collecting authority, as provided herein) all Real Estate Taxes when due
hereunder, then Tenant shall, without limiting any other remedies available to
Landlord, reimburse Landlord for any and all penalties or interest, or portion
thereof, paid or incurred by Landlord as a result of such nonpayment or late
payment by Tenant.
 
MASTER LAND AND BUILDING LEASE
 
 

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(c)           Tenant shall have the right to undertake an action or proceeding
against the applicable collecting authority seeking an abatement of Real Estate
Taxes or a reduction in the valuation of the Demised Properties and/or contest
the applicability of any Real Estate Taxes; provided, however, that Tenant
delivers to Landlord prior written notice of any such action or proceeding by
Tenant, and that Tenant has paid timely (and continues to pay timely) all Real
Estate Taxes as provided in this Lease to the extent required by applicable Law.
In any instance where any such permitted action or proceeding is being
undertaken by Tenant, (i) Landlord shall cooperate reasonably with Tenant, at no
cost or expense to Landlord, and execute any and all documents approved by
Landlord and reasonably required in connection therewith and (ii) Tenant shall
provide Landlord with all information reasonably requested by Landlord with
respect to such action or proceeding within five (5) days after receipt of
Landlord’s written request. Tenant shall be entitled to any refund (after the
deduction therefrom of all expenses incurred by Landlord in connection
therewith) of any Real Estate Taxes (including penalties or interest thereon)
received by Tenant or Landlord, whether or not such refund was a result of
actions or proceedings instituted by Tenant.
 
(d)           Tenant shall be solely responsible for, and shall pay directly to
the applicable service providers, the cost of all utility services provided to
the Demised Properties throughout the Lease Term. Notwithstanding the foregoing,
upon the occurrence of both of the following events, Tenant shall pay to
Landlord the cost of any and all utility services provided to the Demised
Properties in lieu of payment directly to the applicable service providers: (i)
delivery to Tenant of a written request therefor from Landlord, and (ii) any
Default under this Section 3.03(d) by Tenant, or any Event of Default. Funds
paid by Tenant to Landlord pursuant to the immediately preceding sentence shall
be used only for the payment of the cost of utility services to the Demised
Properties. If Tenant fails to pay the appropriate party (Landlord or the
service providers, as provided herein) all such costs when due hereunder, then
Tenant shall, without limiting any other remedies available to Landlord,
reimburse Landlord for any and all penalties or interest, or portion thereof,
paid or incurred by Landlord as a result of such nonpayment or late payment by
Tenant.
 
(e)           Without limiting any of Tenant’s other obligations set forth in
this Article, Tenant shall pay to Landlord, with each payment due to Landlord
hereunder (and as a part of Rent due hereunder), all sales and excise tax on
rental income and all other similar taxes imposed upon Landlord with respect to
rental or other payments (including, but not limited to RE Taxes Additional Rent
and Real Estate Taxes paid directly to the taxing authority to the extent deemed
includible in Landlord’s gross income or gross receipts) in the nature of a
gross receipts tax, gross income tax, margins tax, sales tax, occupancy tax,
business improvement district tax, occupation tax, business and occupation tax,
business privilege tax or the like, whether imposed by a federal, state or local
taxing authority, which, when added to such payment, shall yield to Landlord
after deduction of all such tax payable by Landlord (including any such taxes
that may be payable on the additional amounts payable pursuant to this
paragraph, on a “grossed-up” basis) with respect to all such payments a net
amount which Landlord would have realized from such payment had no such tax been
imposed.
 
(f)           Any indemnity payments due to Landlord from Tenant hereunder that
are attributable to liabilities, fixed or contingent, known or unknown (i) that
existed as of the date hereof, or relate to periods prior to and including the
date hereof, or (ii) to which the Demised Properties were subject as of the date
hereof, or that existed on the date hereof and ran with the Demised Properties
and became a liability of the Landlord as the transferee or assignee of the
previous owner of the Demised Properties, shall not be treated as additional
rent or other gross income of the Landlord for federal income
tax purposes, but as an adjustment to the Landlord’s adjusted basis in the
Demised Properties, which adjusted basis shall prior to the receipt by Landlord
of such indemnity payments be deemed to include the amount of such liabilities.
Tenant agrees that it will take no position inconsistent herewith for federal
income tax purposes.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 4     USE
 
Section 4.01     Tenant may use the Demised Properties to operate “Kentucky
Fried Chicken”, “KFC”, “Pizza Hut”, “Taco Bell” or any other Yum! National Brand
restaurants (each a “Permitted Restaurant Brand” and collectively, the
“Permitted Restaurant Brands”), and for no other purpose without the prior
written consent of Landlord, which approval may be granted or withheld in the
reasonable discretion of Landlord. Subject to (a) applicable Law, and (b)
Tenant’s right to make Required Alterations that (i) are completed in fewer than
sixty (60) days, and (ii) do not involve more than three (3) Demised Properties
at any given time, Tenant shall open and operate a Permitted Restaurant Brand at
each of the Demised Properties during all hours that are customary for similarly
situated sites of the applicable Permitted Restaurant Brand. This covenant of
continuous operation is an additional consideration and a material inducement
for Landlord to enter into this Lease.
 
Section 4.02     Notwithstanding any other provision of this Article, Tenant
shall not use, or suffer or permit any Person to use, the Demised Properties or
any portion thereof for any purpose in violation of any applicable Law, or in
violation of any covenants or restrictions of record. From the Commencement Date
and thereafter throughout the Lease Term, Tenant shall conduct its business in a
commercially reasonable and reputable manner with respect to each of the Demised
Properties and in compliance with the terms and provisions of this Lease. The
character of the occupancy of the Demised Properties is an additional
consideration and a material inducement for the granting of this Lease by
Landlord to Tenant.
 
Section 4.03     Without limiting any other provision of this Lease, all
obligations of Tenant under this Article 4  shall apply also to any subtenant of
any of the Demised Properties.
 
ARTICLE 5     PERFORMANCE OF OBLIGATIONS; ACCEPTANCE OF DEMISED PROPERTIES
 
Tenant hereby represents, warrants and covenants to Landlord that Tenant has the
right and lawful authority to enter into this Lease and perform Tenant’s
obligations hereunder. Tenant acknowledges that it has had access to the Demised
Properties prior to execution of this Lease and has had the opportunity to
perform all tests, studies, inspections and investigations (including any
investigations regarding zoning and use issues regarding all Demised Properties)
and has in fact evaluated the Demised Properties to the extent required for its
operations, that it desires, and that Tenant is accepting each Demised Property
in its AS IS condition existing on the date Tenant executes this Lease. Tenant
hereby accepts each Demised Property in its condition as of the date of
possession hereunder, subject to all applicable Law, as well as private
easements and restrictions, governing and regulating the use, operation or
maintenance of the Demised Properties, whether or not of record (collectively,
the “Diligence Matters”), and accepts this Lease subject thereto and to all
matters disclosed hereby, and by any exhibits attached hereto. Tenant waives to
the fullest extent allowed by Law any rights to notice by Landlord regarding the
condition of the Demised Properties, whether at law or in equity, and hereby
waives any rights and remedies thereunder based in any alleged or actual future
of Landlord to provide any such notices. Tenant acknowledges that (a) neither
Landlord nor any of its Affiliates has made any representation or warranty as to
the suitability of any Demised Property for the conduct of the Tenant’s business
and (b) Tenant is entering into this Lease solely on the basis of its own
investigations and familiarity with the Demised Properties and not on the basis
of any representation, warranty, covenant, agreement, undertaking, promise,
statement, arrangement or understanding by, on behalf of, or with, Landlord or
any of its Affiliates, except as expressly set forth in this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 6     ALTERATIONS
 
Subject to the provisions of this Article 6, Tenant shall have no right to make
changes, alterations or additions (collectively, “Alterations”) to the
Improvements at any single Demised Property that involve structural changes or
that cost in the aggregate in excess of US$50,000.00 per Demised Property, which
amount shall be adjusted annually in proportion to increases in the CPI, in each
case without prior written consent of Landlord, which Landlord agrees it will
not withhold unreasonably; provided, however, in no event shall any Alterations
be made that, after completion, would: (i) reduce the value of the Improvements
as they existed prior to the time that said Alterations are made; or (ii)
adversely affect the structural integrity of the Improvements; provided further,
that Landlord shall not withhold its consent (1) to any Alterations (“Required
Alterations”) that (x) have been approved by all applicable Governmental
Authorities, (y) are required by the franchisor of the applicable Permitted
Restaurant Brand, and (z) otherwise comply with subsections (i) and (ii) above,
and (2) provided that no Default has occurred and is continuing. Tenant shall
not install any underground storage tanks and any above ground storage tanks
shall include secondary containment sufficient to prevent spills, overfills or
tank ruptures from causing a release to the environment. Any and all Alterations
made by Tenant shall be at Tenant’s sole cost and expense. Prior to the
commencement of construction, including Alterations that cost less than
US$50,000.00 per Demised Property, which amount shall be adjusted annually in
proportion to increases in the CPI (but excluding Minor Projects), Tenant shall
deliver promptly to Landlord detailed cost estimates for any such proposed
Alterations, as well as all drawings, plans and other information regarding such
Alterations (such estimates, drawings, plans and other information are
collectively referred to herein as the “Alteration Information”).
Notwithstanding the foregoing, in no event shall Tenant have an obligation to
provide any Alteration Information to Landlord for its review and approval as to
Required Alterations. Landlord’s review and/or approval (if required) of any
Alteration Information shall in no event constitute any representation or
warranty of Landlord regarding (x) the compliance of any Alteration Information
with any applicable Law, (y) the presence or absence of any defects in any
Alteration Information, or (z) the safety or quality of any of the Alterations
constructed in accordance with any plans or other Alteration Information.
Landlord’s review and/or approval of any of the Alteration Information shall not
preclude recovery by Landlord against Tenant based upon the Alterations, the
Alteration Information, or any defects therein. In making any and all
Alterations, Tenant also shall comply with all of the following conditions:
 
(a)           No Alterations shall be undertaken until Tenant shall have (i)
procured and paid for, so far as the same may be required, all necessary permits
and authorizations of all Governmental Authorities having jurisdiction over such
Alterations, and (ii) delivered to Landlord at least fifteen (15) days prior to
commencing any such Alterations written evidence acceptable to Landlord, in its
reasonable discretion, of all such permits and authorizations. Landlord shall,
to the extent necessary (but at no cost, expense, or risk of loss to Landlord),
join in the application for such permits or authorizations whenever necessary,
promptly upon written request of Tenant.
 
(b)           Any and all structural Alterations of the Improvements shall be
performed pursuant to a consulting agreement with an architect and/or structural
engineer reasonably acceptable to Landlord.
 
MASTER LAND AND BUILDING LEASE
 
 

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(c)           Except for Minor Projects, Tenant shall notify Landlord at least
fifteen (15) days prior to commencing any Alterations, and Tenant shall permit
Landlord access to the relevant Demised Properties in order to post and keep
posted thereon such notices as may be provided or required by applicable Law to
disclaim responsibility for any construction on the relevant Demised Properties.
 
(d)           Any and all Alterations shall be conducted and completed in a
commercially reasonable time period, in a good and workmanlike manner, and in
compliance with all applicable Law, municipal ordinances, building codes and
permits, and requirements of all Governmental Authorities having jurisdiction
over the relevant Demised Properties, and of the local Board of Fire
Underwriters, if any; and, upon completion of any and all Alterations, Tenant
shall obtain and deliver to Landlord a copy of the amended certificate of
occupancy for the relevant Demised Properties, if required under applicable Law
or by any Governmental Authority. If any Alterations involve the generation,
handling, treatment, storage, disposal, permitting, abatement or reporting of
Hazardous Materials, Tenant shall prepare and retain any and all records,
permits, reports and other documentation necessary or advisable to document and
evidence all such Hazardous Materials were handled in compliance with applicable
Law. To the extent reasonably practicable, any and all Alterations shall be made
and conducted so as not to disrupt Tenant’s business.
 
(e)           The cost of any and all Alterations shall be promptly paid by
Tenant so that the Demised Properties at all times shall be free of any and all
liens for labor and/or materials supplied for any Alterations subject to the
next succeeding sentence. In the event any such lien shall be filed, Tenant
shall, within five (5) days after receipt of notice of such lien, deliver
written notice to Landlord thereof, and Tenant shall, within thirty (30) days
after receipt of notice of such lien, discharge the same by bond or payment of
the amount due the lien claimant. Tenant may in good faith contest any such lien
provided that within such thirty (30) day period Tenant provides Landlord with a
surety bond or other form of security reasonably acceptable to Landlord,
protecting against said lien. Tenant shall provide Landlord promptly with
evidence satisfactory to Landlord that all contractors, subcontractors or
materialmen have been paid in full with respect to such Alterations and that
their lien rights have been waived or released. In the event Tenant fails to
either discharge such lien or protect against such lien in accordance with the
foregoing, then Landlord shall have the option (but not the obligation) to pay
such lien or post a bond to protect against such lien and pass through such
costs to Tenant as Additional Rent.
 
ARTICLE 7     REPAIRS AND MAINTENANCE
 
Except as otherwise provided in this Article, Tenant, at its sole cost and
expense, shall maintain each of the Demised Properties and each part thereof,
structural and non-structural, in good order and condition, including all areas
outside of any buildings (including all sidewalks, driveways, landscaping, trash
enclosures, and trash compacting and loading areas on the Demised Properties),
in a neat and clean condition, and ensuring that debris from the operation of
each restaurant on the Demised Properties is cleaned and removed on a regular
basis) and, subject to the terms and conditions of Article 6, shall make any
necessary Repairs thereto, interior and exterior, whether extraordinary,
foreseen or unforeseen, but subject to Article 11 and Article 12. Without
limitation, (a) no Repairs shall result in any structural damage to any Demised
Properties or any injury to any persons, (b) Tenant shall ensure that the
quality of materials and workmanship of any Repairs meets or exceeds the quality
of materials and workmanship of the Improvements prior to the need for such
Repairs; (c) all Repairs shall fully comply with applicable Law, the
requirements of any covenants, conditions, restrictions or other permitted
encumbrances that are of record regarding the applicable Demised Property, and
any applicable repair standards and requirements promulgated by Tenant for its
(or its subsidiaries’ or Affiliates’ or franchisees’) properties. Landlord shall
have no duty whatsoever to maintain, replace, upgrade, or repair any portion of
the Demised Properties, including any structural items, roof or roofing
materials, or any aboveground or underground storage tanks, and Tenant hereby
expressly waives the right to make Repairs at the expense of Landlord, which
right may be provided for in any applicable Law now or hereinafter in effect. In
addition to Landlord’s rights under Section 15.05  , if Tenant fails or neglects
to commence and diligently proceed with all Repairs or fulfill its other
obligations as set forth above within fifteen (15) days after receipt of written
notice of the need therefor describing the applicable Repair or other
obligation, then Landlord or its agents may enter the Demised Properties for the
purpose of making such Repairs or fulfilling those obligations. All costs and
expenses incurred by Landlord as a consequence of such Landlord’s actions, plus
an administrative charge of fifteen percent (15%) of such costs and expenses,
shall be due to Landlord from Tenant within ten (10) days after written demand
from Landlord.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 8      COMPLIANCE WITH LAW
 
Tenant shall, throughout the Lease Term, at its sole cost and expense, comply
with applicable Law.
 
ARTICLE 9      DISCLAIMER AND INDEMNITIES
 
Section 9.01     To the extent not prohibited by applicable Law, none of the
Landlord Parties shall be liable for, under any circumstances, and Tenant hereby
releases all Landlord Parties from, any loss, injury, death or damage to person
or property (including any business or any loss of income or profit therefrom)
of Tenant, Tenant’s members, officers, directors, shareholders, agents,
employees, contractors, customers, invitees, or any other Person in or about the
Demised Properties, whether the same are caused by (a) fire, explosion, falling
plaster, steam, dampness, electricity, gas, water, rain; (b) breakage, leakage
or other defects of Restaurant Equipment, Building Equipment, sprinklers, wires,
appliances, plumbing fixtures, water or gas pipes, roof, air conditioning,
lighting fixtures, street improvements, or subsurface improvements; (c) theft,
acts of God, acts of the public enemy, riot, strike, insurrection, civil unrest,
war, court order, requisition or order of governmental body or authority; (d)
any act or omission of any other occupant of the Demised Properties; (e)
operations in construction of any private, public or quasi-public work; (f)
Landlord’s reentering and taking possession of the Demised Properties in
accordance with the provisions of this Lease or removing and storing the
property of Tenant as herein provided; or (g) any other cause, including damage
or injury that arises from the condition of the Demised Properties, from
occupants of adjacent property, from the public, or from any other sources or
places, and regardless of whether the cause of such damage or injury or the
means of repairing the same are inaccessible to Tenant, or that may arise
through repair, alteration or maintenance of any part of the Demised Properties
or failure to make any such repair, from any condition or defect in, on or about
the Demised Properties including any Environmental Conditions or the presence of
any mold or any other Hazardous Materials, or from any other condition or cause
whatsoever; provided, however, that the foregoing release set forth in this
Section 9.01 shall not be applicable to any claim against a Landlord Party to
the extent, and only to the extent, that such claim is directly attributable to
the gross negligence or willful misconduct of such Landlord Party, as determined
by a final nonappealable judgment (or by a judgment that such Landlord Party
elects not to appeal) by a court of competent jurisdiction (provided, however,
that the term “gross negligence” shall not include gross negligence imputed as a
matter of law to Landlord solely by reason of its interest in the Demised
Properties or the failure to act by Landlord or anyone acting under its
direction or control or on its behalf, in respect of matters that are or were
the obligation of Tenant under this Lease). Without limiting the foregoing,
Tenant hereby waives any right to any consequential, indirect or punitive
damages against any Landlord Parties arising out of any claim in connection with
or related to this Lease or the Demised Properties.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 9.02     In addition to any and all other obligations of Tenant under
this Lease (including under any indemnity or similar provision set forth
herein), to the extent permitted by applicable Law, Tenant hereby agrees to
fully and forever indemnify, protect, defend (with counsel selected by Landlord)
and hold all Landlord Parties free and harmless of, from and against any and
Losses (including, subject to the terms of this Section, diminution in the value
of the Demised Properties, normal wear and tear excepted): (a) arising out of or
in any way related to or resulting directly or indirectly from: (i) the use,
occupancy, or activities of Tenant, its subtenants, agents, employees,
contractors or invitees in or about any of the Demised Properties; (ii) any
failure on the part of Tenant to comply with any applicable Law, including any
Environmental Laws; (iii) any Default or Event of Default under this Lease or
any breach or default by Tenant or any other party (other than Landlord) under
any other Transaction Document (including as a result of any termination by
Landlord, following an Event of Default, of any sublease, license, concession,
or other consensual arrangement for possession entered into by Tenant and
affecting any of the Demised Properties pursuant to Section 15.08), and
including any additional fees and costs, or any increased interest rate or other
charges imposed by any Landlord’s Lender by reason of such Default or Event of
Default (whether or not such Default or Event of Default is a default under any
agreements with any Landlord’s Lender); (iv) any other loss, injury or damage
described in Section 9.01  above; (v) in connection with mold at any Demised
Property; (vi) work or labor performed, materials or supplies furnished to or at
the request of Tenant or in connection with obligations incurred by or
performance of any work done for the account of Tenant in, on or about the
Demised Properties; and (b) whether heretofore now existing or hereafter arising
out of or in any way related to or resulting directly or indirectly from the
presence or Release at, on, under, to or from the Demised Properties of
Hazardous Materials. Without limiting the foregoing, (x) the indemnity set forth
in this Section 9.02 includes direct or indirect compensatory, consequential,
and punitive damages, (y) Tenant shall pay on demand all fees and costs of
Landlord (including attorneys’ fees and costs) in connection with any
enforcement by Landlord of the terms of this Lease and any amendment to this
Lease requested by Tenant, and (z) all of the personal or any other property of
Tenant kept or stored at, on or about the Demised Properties shall be kept or
stored at the sole risk of Tenant. Notwithstanding the foregoing, the indemnity
set forth in this Section 9.02 shall not be applicable to any claim against any
Landlord Party to the extent, and only to the extent, such claim is directly
attributable to the gross negligence or willful misconduct of such Landlord
Party, as determined by a final nonappealable judgment (or by a judgment that
such Landlord Party elects not to appeal) by a court of competent jurisdiction
(provided, however, that the term “gross negligence” shall not include gross
negligence imputed as a matter of law to Landlord solely by reason of its
interest in the Demised Properties or the failure to act by Landlord or anyone
acting under its direction or control or on its behalf, in respect of matters
that are or were the obligation of Tenant under this Lease).
 
Section 9.03     The provisions of this Article 9 shall survive the expiration
or sooner termination of this Lease. Tenant hereby waives the provisions of any
applicable Law restricting the release of claims, or extent of release of
claims, that Tenant does not know or suspect to exist at the time of release,
that, if known, would have materially affected Tenant’s decision to agree to the
release contained in this Article 9. In this regard, Tenant hereby agrees,
represents, and warrants to Landlord that Tenant realizes and acknowledges that
factual matters now unknown to Tenant may hereafter give rise to Losses that are
presently unknown, unanticipated and unsuspected, and Tenant further agrees,
represents and warrants that the release provided hereunder has been negotiated
and agreed upon in light of that realization and that Tenant nevertheless hereby
intends to release, discharge and acquit the parties set forth herein above from
any such unknown Losses that are in any manner set forth in or related to this
Lease, the Demised Properties and all dealings in connection therewith.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 10     INSURANCE
 
Section 10.01     As of the Commencement Date and throughout the Lease Term,
Tenant shall, at its sole expense, obtain, pay for and maintain (or cause to be
obtained, paid for and maintained), with financially sound and reputable
insurers (as further described in Section 10.03), (a) special risk coverage
covering loss or damage to each Demised Property (including Improvements now
existing or hereafter erected thereon) caused by fire, lightning, hail,
windstorm, explosion, vandalism, malicious mischief, leakage of sprinkler
systems, and such other losses, hazards, casualties, liabilities and
contingencies as are normally and usually covered by special risk policies in
effect where such Demised Property is located, endorsed to include extended
coverage perils and other broad form perils, including the standard special risk
clauses, including building ordinance or law coverage sufficient to provide
coverage for costs to comply with building and zoning codes and ordinances
including demolition costs and increased cost of construction and (b) business
income/interruption insurance to include loss of business at limits sufficient
to cover 100% of the annual revenues at the Demised Properties minus any
non-fixed expenses payable by Tenant to Landlord with a period of indemnity not
less than twelve (12) months from time of loss (such amount being adjusted
annually) and an extended period of indemnity of one hundred eighty (180) days.
The policy(ies) referred to in clause (a) above shall be in an amount equal to
one hundred percent (100%) of the full replacement cost of the Improvements and
the Building Equipment at each Demised Property (without any deduction for
depreciation), and shall contain a replacement cost endorsement and an agreed
amount or waiver of co-insurance provisions endorsement. The deductible under
the policies referred to in clause (a) above shall not exceed US$100,000 or such
greater amount as is approved by Landlord from time to time. If any Demised
Property is located in area prone to geological phenomena, including sinkholes,
mine subsidence, earthquakes, or floods, the insurance policies referred to in
clause (a) above shall cover such risks and in such amounts, form and substance,
as Landlord shall reasonably determine.
 
Section 10.02     As of the Commencement Date and throughout the Lease Term,
Tenant shall maintain, with financially sound and reputable insurers (as further
described in Section 10.03), general liability insurance with respect to its
business and each Demised Property (including all Improvements now existing or
hereafter erected thereon) against losses, hazards, casualties, liabilities and
contingencies as customarily carried or maintained by persons of established
reputation engaged in similar businesses. Without limiting of the foregoing,
Tenant shall maintain or cause to be maintained policies of insurance with
respect to each Demised Property in the following amounts and covering the
following risks:
 
(a)           Broad form boiler and machinery or breakdown insurance in an
amount equal to the full replacement cost of the Improvements at the Demised
Property (without any deduction for depreciation) in which the boiler or similar
vessel is located, and including coverage against loss or damage from damage,
breakdown or explosion of steam boilers, electrical machinery and equipment, air
conditioning, refrigeration, pressure vessels or similar apparatus and
mechanical objects now or hereafter installed at the applicable Demised
Property.
 
(b)           During any period of construction, reconstruction, renovation or
alteration at any Demised Property, a completed value, “All Risks” Builders Risk
form or “Course of Construction” insurance policy in non-reporting form and in
an amount of the completed value of the construction.
 
(c)           Commercial General Liability insurance covering claims for
personal injury, bodily injury, death or property damage occurring upon, in or
about each Demised Property on an occurrence form and in an amount not less than
US$1,000,000 per occurrence and US$2,000,000 in the aggregate and shall provide
coverage for premises and operations, products and completed operations and
contractual liability with a deductible in an amount not to exceed US$0, and an
umbrella liability policy in the amount of US$25,000,000.
 
MASTER LAND AND BUILDING LEASE
 
 

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(d)           Worker’s compensation with statutory limits and employer’s
liability insurance in an amount of US$1,000,000 per accident, per employee and
in the aggregate.
 
(e)           Except as otherwise provided in Section 10.01  , such other
insurance (including increased amounts of insurance) and endorsements, if any,
with respect to the Demised Properties and the operation thereof as Landlord may
reasonably require from time to time.
 
Section 10.03     Each carrier providing any insurance, or portion thereof,
required by this Article shall have the legal right to conduct its business in
the jurisdiction in which the applicable Demised Property is located, and shall
have a claims paying ability rating by S&P of not less than “A-” and an A.M.
Best Company, Inc. rating of not less than A- and financial size category of not
less than VII. Tenant shall cause all insurance that it is required to maintain
hereunder to contain a mortgagee clause and loss payee clause in favor of
Landlord’s Lender in accordance with this Section to be payable to Landlord’s
Lender as a mortgagee and not as a co-insured, as its interest may appear. In
the absence of a Landlord’s Lender or if below the casualty threshold set by
such Landlord’s Lender, the loss payee clause will be in favor of Landlord.
Notwithstanding anything to the contrary contained in this Section 10.03, in any
event, casualty insurance proceeds shall be applied in accordance with Section
11.02 .
 
Section 10.04     All insurance policies required to be maintained by Tenant
hereunder and renewals thereof (a) shall be in a form reasonably acceptable to
Landlord, (b) shall provide for a term of not less than one year unless approved
by Landlord, (c) if the same are insurance policies covering any property (i)
shall include a standard mortgagee endorsement or its equivalent in favor of
Landlord’s Lender, if any, (ii) shall contain an agreed value clause updated
annually (if the amount of coverage under such policy is based upon the
replacement cost of the applicable Demised Property), (iii) shall designate
Landlord’s Lender, if any, as “mortgagee and loss payee,” and (iv) shall provide
terrorism coverage. In addition, all property insurance policies (except for
flood and earthquake limits) must automatically reinstate after each loss, and
the commercial general liability and umbrella policies shall contain an
additional insured endorsement in favor of Landlord and Landlord’s Lender, if
any, as their interests may appear.
 
Section 10.05     Any insurance provided for in this Article may be effected by
a blanket policy or policies of insurance, or under so-called “special-risk” or
“multi-peril” insurance policies, provided that the amount of the total
insurance available with respect to the Demised Properties shall provide
coverage and indemnity at least equivalent to separate policies in the amounts
herein required, and provided further that in other respects, any such policy or
policies shall comply with the provisions of this Article. Any increased
coverage provided by individual or blanket policies shall be satisfactory,
provided the aggregate liability limits covering the Demised Properties under
such policies shall otherwise comply with the provisions of this Article.
 
Section 10.06     Every insurance policy carried by either party with respect to
the Demised Properties shall (if it can be so written) include provisions
waiving the insurer’s subrogation rights against the other party to the extent
such rights can be waived by the insured prior to the occurrence of damage or
loss. Subject to the above, each party hereby waives any rights of recovery
against the other party for any direct damage or consequential loss covered by
said policies (or by policies required to be carried hereunder by such party)
whether or not such damage or loss shall have been caused by any acts or
omissions of the other party, but such waiver shall operate only to the extent
such waiving party is so protected by such insurance coverage (or would have
been protected by maintaining all policies required to be carried hereunder by
such party).
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 10.07     The general liability and umbrella policies of insurance
required to be maintained by Tenant under this Article 10 shall name Tenant as
the insured and Landlord, Landlord’s Lenders, and Drawbridge Special
Opportunities Fund LP as additional insureds as their interests may appear, with
primary coverage in favor of all additional insureds (and with provisions that
any other insurance carried by any additional insured or Landlord shall be
non-contributing and that naming Landlord and the additional parties listed
above in this Section as additional insureds shall not negate any right Landlord
or such parties would have had as claimants under the policy if not so
designated). Notwithstanding the foregoing, there is no requirement hereunder
that the business interruption insurance required pursuant to Section 10.01 name
Landlord or Drawbridge Special Opportunities Fund LP as additional insureds. All
insurance policies required under this Article 10 also shall provide that the
beneficial interest of Landlord in such policies shall be fully transferable. In
the event Tenant fails to procure or maintain any policy of insurance required
under Article 10, or if the insurance company or coverages provided fail meet
the requirements contained in this Article 10 , Landlord may, at its option,
purchase such insurance and charge Tenant all costs and expenses incurred in
procuring and maintaining such insurance.
 
Section 10.08     Tenant shall provide to Landlord, beginning on the
Commencement Date and continuing annually thereafter with certificates (or other
evidence reasonably requested by Landlord) from all applicable insurance
carriers evidencing the payment of premiums or accompanied by other evidence of
such payment (e.g., receipts, canceled checks) reasonably satisfactory to
Landlord. Each insurance policy required to be carried by Tenant hereunder shall
include a provision requiring the insurer to provide Landlord with not less than
thirty (30) days’ prior written notice of cancellation. Upon the occurrence of
both of the following events, Tenant shall pay the Insurance Premium Additional
Rent (defined below), on the first day of each month, to Landlord in lieu of
payment directly to the applicable insurance carriers: (i) delivery to Tenant of
a written request therefor from Landlord, and (ii) the occurrence and
continuance of any Default under this Section 10.08 by Tenant, or any occurrence
of any Event of Default under any provision in this Lease (the foregoing clause
(ii) may be hereinafter referred to as an “Insurance Premium Additional Rent
Trigger”). Funds paid by Tenant as Insurance Premium Additional Rent shall be
promptly applied towards payment of the insurance premium next coming due when
such premiums are due and payable. “Insurance Premium Additional Rent” shall
mean a monthly payment equal to the amount of the premium that will next become
due and payable under each policy of insurance that Tenant is required to
maintain pursuant to their Lease (exclusive of those premiums that will become
due within the subsequent month) divided by the number of months remaining until
thirty (30) days before the premium for each insurance policy is due. In the
event an Insurance Premium Additional Rent Trigger occurs within thirty (30)
days prior to the date an insurance policy premium is due, the Insurance Premium
Additional Rent shall be calculated for the subsequent policy period and the
premium due within the subsequent month shall be due and payable immediately.
The Insurance Premium Additional Rent shall be adjusted by Tenant from time to
time to reflect any increases in premiums Tenant either obtains knowledge or
notice thereof. In the event that Tenant has obtained financing from a third
party (the “Premium Lender”) of Tenant’s insurance premium obligations, the term
“Insurance Premium Additional Rent” shall be deemed to include the installment
payments due to such Premium Lender.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 11     DAMAGE OR DESTRUCTION
 
Section 11.01     If at any time during the Lease Term, any of the Demised
Properties or any part thereof shall be damaged or destroyed by fire or other
casualty of any kind or nature, Tenant shall promptly apply for all necessary
permits, but in any event not later than thirty (30) days after the first date
of such damage or destruction, and upon issuance of such permits thereafter
diligently proceed to repair, replace or rebuild such Demised Property as nearly
as possible to its condition and character immediately prior to such damage with
such variations and Alterations requested by Landlord as may be permitted under
(and subject to the provisions of) Article 6 (the “Restoration Work”).
 
Section 11.02     All property and casualty insurance proceeds payable to
Landlord or Tenant (except (a) insurance proceeds payable to Tenant on account
of the Restaurant Equipment or Tenant’s inventory; and (b) insurance proceeds
payable from comprehensive general public liability insurance, or any other
liability insurance) at any time as a result of casualty to the Demised
Properties shall be paid jointly to Landlord and Tenant for purposes of payment
for the cost of the Restoration Work, except as may be otherwise expressly set
forth herein. Landlord and Tenant shall cooperate in order to obtain the largest
possible insurance award lawfully obtainable and shall execute any and all
consents and other instruments and take all other actions necessary or desirable
in order to effectuate same and to cause such proceeds to be paid as
hereinbefore provided. The proceeds of any such insurance in the case of loss
shall, to the extent necessary, be used first for the Restoration Work with the
balance, if any, payable to Tenant. If insurance proceeds as a result of a
casualty to the relevant Demised Property are insufficient to complete the
Restoration Work necessary by reason of such casualty, then Tenant shall be
responsible for the payment of such amounts necessary to complete such work.
 
Section 11.03     Subject to the terms hereof, this Lease shall not be affected
in any manner by reason of the total or partial destruction to any Demised
Property or any part thereof and Tenant, notwithstanding any applicable Law,
present or future, waives all rights to quit or surrender any Demised Property
or any portion thereof because of the total or partial destruction of any
Demised Property (prior to the expiration of this Lease). Without limiting the
foregoing, no Rent shall abate as a result of any casualty.
 
ARTICLE 12     EMINENT DOMAIN
 
Section 12.01     Landlord and Tenant hereby agree that in no event shall any
taking of any Demised Property for any public or quasi-public use under any
statute or by right of eminent domain, or by purchase in lieu thereof, in any
way relieve Tenant of any obligations under this Lease (as to the applicable
Demised Property or otherwise) except as explicitly provided in this Article.
 
Section 12.02     If any portion of any Demised Property, or existing access to
or from any Demised Property, is taken for any public or quasi-public use under
any statute or by right of eminent domain, or by purchase in lieu thereof, and
such taking, in Landlord’s reasonable determination (a) reduces the value of the
Demised Property by fifty percent (50%) or more, or (b) prevents, and would
prevent after reasonable repair and reconstruction efforts by Tenant, use of the
Demised Property for its current permitted use under applicable zoning or other
use regulations (including with respect to required parking and access), then
this Lease shall terminate as to such Demised Property (but not any other
Demised Property) as of the date that title to the applicable Demised Property,
or portion thereof, actually transfers to the applicable authority.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 12.03     Tenant agrees that Landlord has the right in its sole
discretion, and at Tenant’s sole cost and expense, to oppose any proposed taking
regarding any Demised Property. The parties hereto agree to cooperate in
applying for and in prosecuting any claim for any taking regarding any Demised
Property and further agree that the aggregate net award shall be distributed as
follows:
 
(a)           Landlord shall be entitled to the entire award for the condemned
Demised Property.
 
(b)           Tenant shall be entitled to any award that may be made for the
taking of Tenant’s inventory and personal property, or costs related to the
removal and relocation of Tenant’s inventory and personal property, so long as
none of the foregoing reduces Landlord’s award.
 
Section 12.04     Except in the case of a termination of this Lease with respect
to a Demised Property as described in Section 12.02, in case of a taking of any
portion of any Demised Property, Tenant at its own expense shall proceed with
diligence (subject to reasonable time periods for purposes of adjustment of any
award and unavoidable delays) to repair or reconstruct (or cause to be repaired
and reconstructed) the affected Improvements to a complete architectural unit,
and all such repair or reconstruction work shall be performed in accordance with
the standards and requirements for Alterations set forth in Article 6.
 
Section 12.05     In case of a taking of all or any portion of any Demised
Property, the Base Rent payable monthly hereunder shall be reduced by the lesser
of the following: (a) the product of the Landlord Award Amount regarding such
taking, multiplied by 0.5833%, or (b) the product of (i) the Base Rent
immediately preceding such taking, divided by the total number of Demised
Properties immediately preceding such taking, multiplied by (ii) the percentage
reduction in value of the applicable Demised Property caused by such taking, if
any, (as reasonably determined by Landlord based upon, inter alia, the impact on
Tenant’s long-term use of such Demised Property). The percentage reduction in
value in clause (b)(ii) of the immediately preceding sentence shall be deemed to
be 100% if this Lease terminates as to the applicable Demised Property pursuant
to Section 12.02 , above.
 
Section 12.06     Notwithstanding any other provision of this Article, any
compensation for a temporary taking shall be payable to Tenant without
participation by Landlord, except to the proportionate extent such temporary
taking extends beyond the end of the Lease Term, and there shall be no abatement
of Rent as a result of any temporary taking affecting any of the Demised
Properties.
 
ARTICLE 13 FINANCIAL COVENANTS OF TENANT
 
Section 13.01     Definitions . The following terms shall have the following
meanings:
 
(a)           Tenant’s Fiscal Year is divided into thirteen four-week periods
(each, a “Period”) except in the occurrence of a 53-week year, in which case the
thirteenth Period consists of five weeks. “Fiscal Quarter” means, as applicable,
the period of time comprised of Periods one through three, the period of time
comprised of Periods four through six, the period of time comprised of Periods
seven through nine, and the period of time comprised of Periods ten through
thirteen.
 
(b)           “Fiscal Year” means any period commencing on the day after the
Sunday nearest the last day of February and ending on (and including) the Sunday
nearest the last day of February of the following calendar year.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 13.02     Books and Records . Tenant shall keep accurate books and
records of account of all of the Demised Properties sufficient to permit the
preparation of financial statements in accordance with GAAP. Landlord and its
duly authorized representatives shall have the right to examine, copy and audit
Tenant’s records and books of account at all reasonable times during regular
business hours. Tenant shall provide, or cause to be provided, to Landlord, in
addition to any other financial statements required under this Lease, the
following financial statements and information, all of which must be prepared in
a form acceptable to Landlord:
 
(a)           promptly and in any event within ninety (90) days after the end of
each Fiscal Year, audited statements of financial position of Tenant as of the
end of each such Fiscal Year, including a balance sheet and statement of profits
and losses, expenses and retained earnings, changes in financial position and
cash flows for such Fiscal Year, which statements shall be duly certified by an
officer of Tenant to fairly represent the financial condition of Tenant, as of
the date thereof, prepared by Tenant in accordance with GAAP, and accompanied by
a statement of a nationally recognized accounting firm acceptable to Landlord in
its sole discretion that such financial statements present fairly, in all
material respects, the financial condition of Tenant as of the end of the Fiscal
Year being reported on and that the results of the operations and cash flows for
such year were prepared, and are being reported on, in conformity with GAAP;
 
(b)           promptly and in any event within forty-five (45) days after the
end of each Fiscal Year, (i) profit and loss statements in respect of each
Demised Property for each such Fiscal Year, certified by an officer of Tenant to
be true, correct, and complete in all material respects; and (ii) total sales
figures in respect of each Demised Property for each month within each such
Fiscal Year, certified by an officer of Tenant to be true, correct and complete
in all material respects;
 
(c)           promptly and in any event within forty-five (45) days after the
end of each Fiscal Quarter, (i) quarterly statements of the financial position
of Tenant, including a balance sheet and statement of profits and losses,
together with a statement showing the net operating cash flow for the previous
twelve (12) month period (and containing supporting documentation necessary to
confirm the amount of net operating cash flow), such quarterly statements of
financial position to be certified by an officer of Tenant to fairly represent
the financial condition of Tenant as of the date thereof and to have been
prepared and reported in conformity with GAAP; (ii) a compliance certificate
from Tenant, in form and substance reasonably acceptable to Landlord, certifying
to such financial information of Tenant as reasonably requested by Landlord, and
supporting the statements contained in any such compliance certificate; (iii) a
compliance certificate from Tenant, in form and substance reasonably acceptable
to Landlord, certifying to such financial information of the Demised Properties
as reasonably requested by Landlord, and supporting the statements contained in
any such compliance certificate, (iv) quarterly profit and loss statements in
respect of each Demised Property and trailing twelve (12) month results,
certified by an officer of Tenant to be true, correct, and complete in all
material respects; and (v) total sales figures in respect of each Demised
Property for each month within the applicable Fiscal Quarter, certified by an
officer of Tenant to be true, correct and complete in all material respects;
 
(d)           promptly and in any event within fifteen (15) days after the end
of each calendar month total sales figures in respect of each Demised Property
for the applicable calendar month and trailing twelve (12) month results,
certified by an officer of Tenant to be true, correct and complete in all
material respects;
 
(e)           any financial statements distributed to any creditors of Tenant
within five (5) Business Days after such distribution; and 
 
(f)    such other information with respect to the Demised Properties or Tenant
that may be reasonably requested from time to time by Landlord, within a
reasonable time after the applicable request.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 14     [Intentionally Omitted]
 
ARTICLE 15     EVENTS OF DEFAULT
 
Section 15.01     Events Of Default. Subject to the terms of this Article, the
occurrence of any of the following shall constitute an event of default by
Tenant under this Lease (“Event of Default ”):
 
(a)           Nonpayment of Base Rent . Failure to pay any installment of Base
Rent hereunder within five (5) days of when payment is due.
 
(b)           Nonpayment of Additional Rent . Failure to pay any amount of
Additional Rent within five (5) days of when such payment is due.
 
(c)           Bankruptcy and Insolvency . If at any time during the Lease Term,
(i) Tenant files a Petition, (ii) any creditor or other Person that is an
Affiliate of Tenant files against Tenant any Petition, or any creditor or other
Person (whether or not an Affiliate of Tenant) files against Tenant any Petition
where Tenant, or an Affiliate of Tenant, cooperates or colludes with such
creditor or other Person in connection with such Petition or the filing thereof,
(iii) any creditor or other Person that is not an Affiliate of Tenant files a
Petition against Tenant, where none of Tenant, or an Affiliate of Tenant,
cooperates or colludes with such creditor or other Person in connection with
such Petition or the filing thereof, and such Petition is not vacated or
withdrawn within sixty (60) days after the filing thereof, (iv) a trustee or
receiver is appointed to take possession of any of the Demised Properties, or of
all or substantially all of the business or assets of Tenant, and such
appointment is not vacated or withdrawn and possession restored to Tenant within
sixty (60) days thereafter, (v) a general assignment or arrangement is made by
Tenant for the benefit of creditors, (vi) any sheriff, marshal, constable or
other duly-constituted public official takes possession of any Demised Property,
or of all or substantially all of the business or assets of Tenant by authority
of any attachment, execution, or other judicial seizure proceedings, and if such
attachment or other seizure remains undismissed or undischarged for a period of
sixty (60) days after the levy thereof, (vii) Tenant admits in writing its
inability to pay its debts as they become due; or (viii) Tenant files an answer
admitting or failing timely to contest a material allegation of any Petition
filed against Tenant.
 
(d)           Misrepresentation . The discovery by Landlord, and written notice
to Tenant, that any representation, warranty or financial statement given to
Landlord by Tenant, or any Affiliate of Tenant, was materially false or
misleading when given, including as set forth in any Transaction Document.
 
(e)           Insurance; Environmental; Patriot Act;. Any default by Tenant
under Article 10, Article 29, or Article 39(c) .
 
(f)           Delivery of Notices and Other Documents. The failure by Tenant to
deliver any of the notices or other documents required to be delivered to
Landlord under this Lease, or the notice to any lender with a security interest
in any of the Restaurant Equipment required in Article 21, or the notice to any
equipment lessor that owns any of the Restaurant Equipment required in Article
21, in each case within the time periods required herein (other than any such
notices or other documents addressed in another clause of this Section 15.01,
for which Tenant will have the grace periods (if any) and notice rights (if any)
set forth in such other clause), provided, however, that if no time period is
stated in this Lease for the delivery by Tenant of any notice or other document
to Landlord, then Tenant shall have a grace period of fifteen (15) days after
the date of the event or occurrence first giving rise to the obligation to
deliver such notice or other document to Landlord.
 
MASTER LAND AND BUILDING LEASE
 
 

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(g)           Liens . Any claim of lien is recorded against any Demised Property
and such claim of lien continues for thirty (30) days without discharge (by
bonding or other means available pursuant to applicable Law), satisfaction or
provision for payment being made by or on behalf of Tenant.
 
(h)           Franchise Agreement . Any default by Tenant or any of its
Affiliates under any Franchise Agreement, after the expiration of any applicable
notice and/or cure period.
 
(i)           Operation of Replaced Property. Tenant or any Affiliate of Tenant
operates a Permitted Restaurant Brand restaurant at any Replaced Property at any
time within two years following the substitution of a Replacement Property for
such Replaced Property as described in Article 31  .
 
(j)           Other Obligations. The failure by Tenant to timely perform any
obligation, agreement or covenant under this Lease, other than those matters
specified in Sections 15.01(a)-(i) above, and such failure continuing for a
period of thirty (30) days after written notice of such failure is delivered to
Tenant, or such longer period, up to but not exceeding an additional sixty (60)
days, as is reasonably necessary to remedy such default.
 
As used in this Lease, “ Default ” means any breach or default under this Lease,
whether or not the same is an Event of Default, and also any breach or default
under this Lease, that after notice or lapse of time or both, would constitute
an Event of Default if that breach or default were not cured within any
applicable grace or cure period.
 
Section 15.02    Remedies Upon Event of Default . If an Event of Default by
Tenant occurs, then, in addition to any other remedies available to Landlord at
law or in equity or elsewhere hereunder, Landlord shall have the following
remedies:
 
(a)   Termination. Landlord shall have the right, with or without notice or
demand, immediately upon expiration of any applicable grace period specified
herein, to terminate this Lease (or Tenant’s possession of any of the Demised
Properties), and at any time thereafter recover possession of all or any portion
of the Demised Properties or any part thereof and expel and remove therefrom
Tenant and any other Person occupying the same by any lawful means, and
repossess and enjoy all or any portion of the Demised Properties without
prejudice to any of the remedies that Landlord may have under this Lease. If
Landlord elects to terminate this Lease (or to terminate Tenant’s right of
possession), Landlord shall also have the right to reenter the Demised
Properties and take possession of and remove all personal property of Tenant, if
any, in such Demised Properties. If Landlord elects to terminate this Lease
and/or Tenant’s right to possession, or if Tenant’s right to possession is
otherwise terminated by operation of law, Landlord may recover as damages from
Tenant the following: (i) all Rent then due under this Lease through the date of
termination; (ii) the Rent due for the remainder of the Lease Term in excess of
the fair market rental value of the Demised Properties for the remainder of the
Lease Term, including any and all Additional Rent (each discounted by the
discount rate of the Federal Reserve Bank of San Francisco plus one percent
(1%)); (iii) the cost of reletting the Demised Properties, including the
anticipated period of vacancy until such Demised Properties can be re-let at
their fair market rental values; and (iv) any other costs and expenses that
Landlord may reasonably incur in connection with the Event of Default. Efforts
by Landlord to mitigate the damages caused by the Event of Default (or Tenant’s
Default under this Lease) shall not waive Landlord’s right to recover damages
under the foregoing provisions.
 
MASTER LAND AND BUILDING LEASE
 
 

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(b)           Continuation after Event of Default. If Landlord does not elect to
terminate this Lease, then this Lease shall continue in effect, and Landlord may
enforce all of its rights and remedies under this Lease, including the right to
recover Rent as it becomes due, and Landlord, without terminating this Lease,
may exercise all of the rights and remedies of a landlord at law or in equity,
subject to Article 26 hereof. Landlord shall not be deemed to have terminated
this Lease except by an express statement in writing. Acts of maintenance or
preservation, efforts to relet the Demised Properties, or the appointment of a
receiver upon application of Landlord to protect Landlord’s interest under this
Lease shall not constitute an election to terminate Tenant’s right to possession
unless such election is expressly stated in writing by Landlord. Notwithstanding
any such reletting without such termination, Landlord may at any time thereafter
elect to terminate Tenant’s right to possession and this Lease. If Landlord
elects to relet the Demised Properties for the account of Tenant, the rent
received by Landlord from such reletting shall be applied as follows: first, to
the payment of any and all costs of such reletting (including attorneys’ fees,
brokers’ fees, alterations and repairs to any of the Demised Properties, and
tenant improvement costs); second, to the payment of any and all indebtedness
other than Rent due hereunder from Tenant to Landlord; third, to the payment of
any and all Rent due and unpaid hereunder; and the balance, if any, shall be
held by Landlord and applied in payment of future Rent as it becomes due. If the
rent received from the reletting is less than the sum of the costs of reletting,
other indebtedness due by Tenant, and the Rent due by Tenant, then Tenant shall
pay the deficiency to Landlord promptly upon demand by Landlord. Such deficiency
shall be calculated and paid monthly.
 
(c)           State–Specific Remedy . Landlord may pursue any other remedy now
or hereafter available to Landlord under the Laws of the states in which the
Demised Properties are located in addition to and not as an alternative remedy
to those provided hereunder.
 
Section 15.03     No Cure Rights Following Events of Default . Upon the
occurrence of an Event of Default, Landlord shall have all rights and remedies
hereunder and under applicable Law. Except only as may be required by applicable
Law that cannot be waived lawfully (a) Landlord shall have no obligation to give
any notice after an Event of Default as a condition to Landlord’s pursuit of any
right or remedy; and (b) Landlord shall have no obligation to accept the
attempted or purported cure of, or to waive, any Event of Default, regardless of
tender of delinquent payments or other performance by Tenant, or any other event
or condition whatsoever; and Tenant shall not have any right to cure any Event
of Default, and no right to cure shall be implied. Without limiting the
foregoing, after the occurrence of any Event of Default (irrespective of whether
or not the same consists of an ongoing condition, a one-time occurrence, or
otherwise), the same shall be deemed to continue at all times thereafter; unless
Landlord executes and delivers a written agreement in which Landlord expressly
states that such Event of Default has ceased to continue (and Landlord shall not
be obligated under any circumstances whatsoever to execute and deliver any such
agreement). Without limitation, this Section shall govern in any case where
reference is made in this Lease or otherwise to (x) any “cure” (whether by use
of such word or otherwise) of any Event of Default, (y) “during an Event of
Default” or “the continuance of an Event of Default” (in each case, whether by
use of such words or otherwise), or (z) any condition or event that continues
beyond the time when the same becomes an Event of Default.
 
Section 15.04     Indemnification. Nothing in this Article shall be deemed to
affect or limit Tenant’s obligation to indemnify, defend, protect and hold
harmless Landlord and the other Landlord Parties under this Lease (including
under Article 9 and Article 29), and such obligation shall survive the
termination or expiration of this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 15.05     Waiver of Notice/Performance by Landlord. Notwithstanding any
other provision herein, (a) Tenant shall not be entitled to notice of Default
from Landlord, or right to cure, for any failure by Tenant to comply with any
obligation under this Lease (and such failure shall result in an Event of
Default) upon the expiration of any period within which Tenant is required to
comply with any applicable Law; and (b) in addition to any other rights of
Landlord under this Lease, if Tenant has failed to satisfy any obligation of
Tenant set forth herein, whether or not the same constitutes an Event of
Default, and in Landlord’s reasonable determination such failure by Tenant
constitutes a threat of injury or harm to persons, or damage or loss of value to
property, then Landlord may, with or without notice, and without regard to
whether or not any applicable cure period expressly provided herein has expired,
elect to perform such obligation for the account and at the expense of Tenant.
If Landlord pays any sums of money or incurs any expense in connection with
performing any such obligation (including attorneys’ fees, consultant fees,
testing and investigation fees, expert fees and court costs), such sums so paid
or expenses so incurred by Landlord, plus an administrative charge of fifteen
percent (15%) of such sums or expenses, shall be due to Landlord from Tenant
within ten (10) days after written demand therefor from Landlord, in addition to
any other amounts to be paid by Tenant to Landlord under this Lease.
 
Section 15.06    Late Fee. In addition to any interest charged to Tenant under
Section 15.07, if any payment of Base Rent or Additional Rent is not received by
Landlord from Tenant when such payment is due to Landlord hereunder, such
payment shall be deemed delinquent and cause Tenant to incur a late fee of five
percent (5%) of each such delinquent payment (the “Late Fee”), due and payable
immediately with the delinquent Base Rent or delinquent Additional Rent, as the
case may be.
 
Section 15.07     Interest . Tenant hereby acknowledges that late payment by
Tenant of Base Rent or Additional Rent will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges. Accordingly, in addition to any Late Fee due from Tenant
hereunder, any sum due by Tenant under this Lease that is not paid when due
shall bear interest at the lesser of seven-and-one-half percent (7.5%) per annum
of such sums, or the maximum rate allowed under applicable Law, from the date
such sum becomes due and payable by Tenant hereunder until paid, unless
otherwise expressly provided in this Lease.
 
Section 15.08     Tenant’s Subleases . If Landlord elects to terminate this
Lease on account of any Event of Default, then Landlord may terminate any
sublease and any license, concession, or other consensual arrangement for
possession entered into by Tenant and affecting any of the Demised Properties
(subject to the terms of any applicable nondisturbance agreement executed by
Landlord), or choose to succeed to Tenant’s interest in any such arrangement.
Absent a nondisturbance agreement between Landlord and any such subtenant, no
payment by a subtenant with respect to a sublease shall entitle such subtenant
to possession of any Demised Property after termination of this Lease and
Landlord’s election to terminate the sublease. If Landlord elects to succeed to
Tenant’s interest in such arrangement, then Tenant shall, as of the date of
notice given by Landlord to Tenant of such election, have no further right to,
or interest in, any rent or other consideration due under that arrangement.
 
Section 15.09    Form of Payment After Default. Without limiting any other
obligation of Tenant under this Lease, if Tenant fails, on two or more occasions
within any Lease Year, to pay any amount due to Landlord under this Lease within
the applicable notice and cure periods set forth in this Lease, or if Tenant
attempts to pay any such amount by drawing a check on an account with
insufficient funds, then Landlord shall have the right to require that any and
all subsequent amounts paid by Tenant to Landlord under this Lease (to cure a
default or otherwise) be paid in the form of cashier’s or certified check drawn
on an institution acceptable to Landlord, or any other form approved by Landlord
in its sole and absolute discretion, notwithstanding that Landlord may have
previously accepted payments from Tenant in a different form.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 15.10    Acceptance of Rent Without Waiving Rights . No endorsement or
statement by Tenant on any check or any letter accompanying any payment by
Tenant to Landlord will be deemed an accord and satisfaction of any amount in
dispute between Tenant and Landlord or otherwise. Landlord may accept any and
all of Tenant’s payments without waiving any right or remedy under this Lease,
including but not limited to the right to commence and pursue an action to
enforce rights and remedies under a previously served notice of default, without
giving Tenant any further notice or demand.
 
Section 15.11     Post-Event of Default Sales . If Landlord elects (in its sole
discretion) to sell
any of the Demised Properties following any Events of Default in order to
mitigate damages resulting from such Events of Default, the Base Rent payable
hereunder from and after the date of such sale shall be reduced by the lesser of
the following: (a) the product of (i) 0.5833%, multiplied by (ii) the proceeds
received by Landlord in connection with such sale, less any and all costs
incurred by Landlord in connection with such sale (including attorneys’ fees and
brokers’ fees), or (b) the product of (i) the Base Rent immediately preceding
such sale, divided by the total number of Demised Properties immediately
preceding such sale, multiplied by (ii) the number of Demised Properties sold in
such sale. In no event shall the reduction described in the immediately
preceding sentence reduce any obligation of Tenant that came due prior to the
date of such sale.
 
Section 15.12    Licenses and Permits . In connection with any repossession of
any Demised Property by Landlord or its designee, Tenant and its Affiliates
shall reasonably cooperate with Landlord in transferring to Landlord or its
designee any (a) franchise agreement with any franchisor for a Permitted
Restaurant Brand (provided that Tenant will not guaranty that any such transfer
will be approved by the franchisor); and (b) licenses or permits then held or
maintained by Tenant or its Affiliates and required by applicable Law in order
to operate such Demised Property as a Permitted Restaurant Brand, including any
such licenses or permits required in order to serve alcoholic beverages at such
Demised Property.
 
Section 15.13     Remedies Cumulative . All rights, privileges, elections, and
remedies of Landlord are cumulative and not alternative with all other rights
and remedies hereunder, at law or in equity to the fullest extent permitted by
applicable Law. The exercise of one or more rights or remedies by Landlord shall
not impair Landlord’s rights to exercise any other right or remedy to the
fullest extent permitted by applicable Law.
 
Section 15.14    Affirmance of Lease . In the event that, following of the
filing of any Petition regarding Tenant, under applicable Law, the trustee in
bankruptcy or Tenant has the right to affirm this Lease and continue to perform
the obligations of Tenant hereunder, such trustee or Tenant shall, within such
time period as may be permitted by the bankruptcy court having jurisdiction, so
affirm this Lease, cure all defaults of Tenant hereunder outstanding as of the
date of the affirmance of this Lease, and provide to Landlord such adequate
assurances as may be necessary to ensure Landlord of the continued performance
of Tenant’s obligations under this Lease.
 
Section 15.15     Survival . The remedies available to Landlord pursuant to this
Article shall survive expiration or termination of this Lease.
 
ARTICLE 16     FORCE MAJEURE
 
If either party is prevented or delayed from timely performance of any
obligation or satisfying any condition under this Lease by any event or
circumstance beyond the control of such party, exclusive of financial inability
of a party, but including any of the following if beyond the control of (and not
caused by) such party: strike, lockout, labor dispute, civil unrest, inability
to obtain labor, materials or reasonable substitutes thereof, acts of God,
present or future governmental restrictions, regulations or control,
insurrection, and sabotage, then the time to perform such obligation or satisfy
such condition shall be extended by the delay caused by such event or
circumstance, but only for a reasonable period of time not to exceed, in any
event, ninety (90) days. The provisions of this Article shall in no event
operate to delay the Commencement Date or to excuse Tenant from the payment of
all Rent as and when due under this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 17 NOTICES
 
(a)         Any notice, demand or other communication to be given under the
provisions of this Lease by either party hereto to the other party hereto shall
be effective only if in writing and (i) personally served, (ii) mailed by United
States registered or certified mail, return receipt requested, postage prepaid,
(iii) sent by a nationally recognized courier service (such as Federal Express)
for next-day delivery, to be confirmed in writing by such courier, or (iv) sent
by facsimile (with answer back acknowledged), addressed as follows:
 
To Tenant:                            Morgan’s Foods, Inc.
4829 Galaxy Parkway, Suite S
Cleveland, OH 44122
Attention: Barton J. Craig, Esq.
Facsimile: (216) 359-2103
 
with a copy to:                      Morgan’s Foods, Inc.
4829 Galaxy Parkway, Suite S
Cleveland, OH 44122
Attention: James Liguori
Facsimile: (216) 359-2105
 
To Landlord:                         DBMFI LLC
c/o Drawbridge Special Opportunities Fund LP
1345 Avenue of the Americas, 46th Floor
New York, New York 10105
Attention: Constantine M. Dakolias, President
Facsimile: (212) 798-6131
 
with a copy to:                      Fortress Investment Group LLC
10250 Constellation Boulevard, Suite 2350
Los Angeles, CA 90067
Attention: Joshua Pack
Facsimile: (310) 228-3031
 
and a copy to:                       Fortress Investment Group
5221 N. O’Connor Boulevard, Suite 700
Irving, Texas 75039
Attention: Andy Osborne
Facsimile: (214) 260-0938
MASTER LAND AND BUILDING LEASE
 
 

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and a copy to:                       Sidley Austin LLP
555 West Fifth Street, Suite 4000
Los Angeles, California 90013-1010
Attention: Marc I. Hayutin, Esq.
Facsimile: (213) 896-6600
 
and a copy to:                       Sidley Austin LLP
555 West Fifth Street, Suite 4000
Los Angeles, California 90013-1010
Attention: William D. Ellis, Esq.
Facsimile: (213) 896-6600
 
(b)           Subject to the terms of this subsection (b), all notices, demands
and other communications sent in the foregoing manner shall be deemed delivered
when actually received or refused by the party to whom sent, unless (i) mailed,
in which event the same shall be deemed delivered on the day of actual delivery
as shown by the addressee’s registered or certified mail receipt or at the
expiration of the third (3rd) Business Day after the date of mailing, whichever
first occurs, or (ii) sent by facsimile, in which event the same shall be deemed
delivered only if a duplicate notice sent pursuant to a method described in
subsection (a)(i), (a)(ii) or (a)(iii) of this Article 17 is deemed to have been
delivered within one Business Day after such facsimile is received by the
recipient. Notwithstanding the foregoing, if any notice, demand or other
communication is not received during business hours on a Business Day, such
notice, demand or other communication shall be deemed to have been delivered at
the opening of business on the next Business Day.
 
(c)           Either Landlord or Tenant may from time to time change its address
for receiving notices under this Lease by providing written notice to the other
party in accordance with this Article 17 .
 
ARTICLE 18     ACCESS
 
Landlord and its designees shall have the right upon not less than twenty-four
(24) hours’ prior written notice to Tenant (except in the event of an emergency,
where no prior notice shall be required) to enter upon any of the Demised
Properties at reasonable hours to inspect such Demised Properties or, during the
period commencing one year prior to the end of the Lease Term, for the purpose
of exhibiting same to prospective tenants and posting “for lease” or similar
signage at the Demised Properties, all in Landlord’s discretion. Any such entry
and/or inspection by Landlord shall not unreasonably interfere with Tenant’s
ability to conduct its business operations at the Demised Properties.
 
ARTICLE 19     SIGNS
 
Tenant may, at Tenant’s sole cost and expense, install or erect, at or on any
Demised Property, signs of any height or dimensions and bearing such
inscriptions as Tenant shall reasonably determine; provided, however, that no
sign shall be installed or erected by Tenant at or on any Demised Property until
all governmental approvals and permits required therefor have been obtained, all
fees pertaining thereto have been paid by Tenant, and Tenant has delivered
written evidence of such approvals, permits and payment to Landlord. Upon the
termination of this Lease following an Event of Default or upon a rejection of
this Lease in any bankruptcy or similar proceeding, Landlord shall have the
right, at its sole option, to retain and use the signage structures in the
future operation of the Demised Properties without payment of any compensation
to Tenant, or to require Tenant to remove such signage structures at Tenant’s
sole cost and expense (and, if such removal is not accomplished by Tenant
promptly after notice from Landlord, Landlord may undertake such removal at
Tenant’s sole cost and expense). This Article shall survive termination of this
Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 20
 IMPROVEMENTS, BUILDING EQUIPMENT AND RESTAURANT EQUIPMENT

 
Section 20.01 Any Building Equipment and other Improvements at the Demised
Properties on the Commencement Date shall be the property of Landlord. In the
event that Tenant installs or erects any fixtures or other Improvements to the
Demised Properties after the Commencement Date, such fixtures or other
Improvements shall be the property of Landlord and remain upon and be
surrendered with the Demised Properties; provided, however, that Tenant shall be
required to remove any underground storage tanks or otherwise close such tanks
in accordance with applicable Law, unless Landlord expressly consents in writing
to the continued presence of any such underground storage tanks. Notwithstanding
the foregoing provisions, Tenant shall be liable for all property taxes,
assessments, and similar charges assessed against or allocable to any property
at the Demised Properties (irrespective of whether such property is Building
Equipment owned by Landlord or Restaurant Equipment or other personal property
owned by Tenant) and that are attributable to any period of time during the
Lease Term.
 
Section 20.02 During the Lease Term, Tenant shall be entitled to use the
Building Equipment in Tenant’s operations at the Demised Properties. Tenant
shall keep the Building Equipment in good working order and repair, shall not
remove the Building Equipment from the Demised Properties (subject to the terms
of this Section) and shall not permit any lien or other encumbrance to attach to
Building Equipment except as may be caused by Landlord, and except any such
liens that are being contested by Tenant in good faith by appropriate
proceedings and that have been bonded over by Tenant to the reasonable
satisfaction of Landlord or for which Tenant provides alternative security to
the reasonable satisfaction of Landlord. Tenant shall keep (or cause to be kept)
the Building Equipment insured and shall be responsible for any casualty or
other loss to Building Equipment or occasioned by Building Equipment. Tenant
shall at all times have a system in place to identify the Building Equipment
from the Restaurant Equipment or any of Tenant’s personal property, and any
items of equipment not so identified shall conclusively be presumed to be
Building Equipment and shall be the property of Landlord. Tenant may, from time
to time, retire or replace Building Equipment with new items of equipment of
equal or greater value purchased by Tenant, in which event such replaced
equipment shall constitute Building Equipment; provided, however that Tenant
shall provide Landlord prompt written notice after any such replacement together
with reasonable evidence as to the value and quality of the new Building
Equipment. All Building Equipment shall be the property of Landlord, and Tenant
shall execute such instruments and documents as Landlord may require to evidence
such ownership by Landlord.
 
Section 20.03 Tenant shall also keep the Restaurant Equipment located in each
Demised Property in good working order and repair, and shall not remove the
Restaurant Equipment from the Demised Properties, except to the extent it is
replaced by equipment of equal or greater quality and utility or is no longer
required for restaurant operations; provided, however, that Tenant shall at all
times maintain sufficient Restaurant Equipment at each Demised Property to be
able to fully operate a Permitted Restaurant Brand at each Demised Property
(whether or not Tenant has ceased operations at such Demised Property as
described in Section 4.01). In the event of any replacement of any Restaurant
Equipment with new items of equipment, such new items of equipment shall
thereafter constitute Restaurant Equipment. Tenant shall not permit any lien or
other encumbrance to attach to Restaurant Equipment, except Permitted Liens.
Subject to Permitted Liens, all Restaurant Equipment shall be owned by Tenant
(and not leased), except with the prior written consent of Landlord. Tenant
shall keep the Restaurant Equipment fully insured and shall be responsible for
any casualty or other loss to any Restaurant Equipment or occasioned by any
Restaurant Equipment.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 20.04 Tenant shall deliver to Landlord from time to time, within ten
(10) days after Landlord’s request (or, if an Event of Default has occurred,
immediately after Landlord’s request), a true, correct, and complete listing of
every separate item of Restaurant Equipment (aggregated by category, in the
manner in which such equipment is described in Tenant’s accounting records) and
the Demised Property where it is located (the “Restaurant Equipment Schedule”).
In no event shall Tenant’s listing of any Building Equipment on the Restaurant
Equipment Schedule cause such Building Equipment to be deemed Restaurant
Equipment hereunder.
 
ARTICLE 21 END OF TERM; HOLDING OVER
 
Section 21.01 Upon the expiration or earlier termination of the Lease Term,
Tenant shall peaceably and quietly quit and surrender the Demised Properties,
and all Alterations that are then part of the Demised Properties, broom clean
and in good order and condition. Tenant shall within thirty (30) days prior to
the end of the Lease Term transfer to Landlord all plans, drawings , other
Alteration Information, and technical descriptions of the Demised Properties,
and shall assign to Landlord all assignable permits, licenses, authorizations
and warranties necessary for the operation of the Demised Properties (in each
case to the extent not previously transferred or assigned to Landlord). Upon the
expiration or earlier termination of this Lease, Tenant shall have the
obligation to remove all Restaurant Equipment, except that Tenant may elect to
abandon any trade fixtures or equipment that are attached or connected to the
Demised Properties, with the prior written consent of Landlord. Tenant agrees to
promptly repair and to indemnify, protect, defend and hold harmless Landlord
from and against any damage caused by Tenant’s removal of any Restaurant
Equipment. Any such items or other items of Restaurant Equipment or personal
property that are not removed upon the expiration or earlier termination of this
Lease shall be deemed abandoned and may be removed, disposed of or used by
Landlord without payment of any compensation to Tenant.
 
Section 21.02 If Tenant holds over in possession after the expiration of the
Lease Term, then such holding over shall not be deemed to extend the Lease Term
or renew this Lease, but rather the tenancy thereafter shall continue as a
tenancy at sufferance pursuant to the terms and conditions contained in this
Lease, at one hundred fifty percent (150%) of the Base Rent otherwise then
applicable (in addition to all Additional Rent); and Tenant shall be responsible
for the consequences of any unauthorized holdover and shall indemnify, defend,
protect (with counsel selected by Landlord) and hold Landlord Parties wholly
free and harmless from any and all Losses arising therefrom.
 
Section 21.03 This Article 21  shall survive the expiration or termination of
this Lease.
 
ARTICLE 22     TENANT ASSIGNMENT AND SUBLETTING
 
Section 22.01
 
(a)           Except as otherwise explicitly provided in this Article 22 and
Article 23, neither Tenant, nor Tenant’s successors or assigns, shall assign or
transfer, in whole or in part, by operation of law or otherwise, this Lease, or
sublet the Demised Properties, in whole or in part, or permit the Demised
Properties or any portion of any of them to be used or occupied by others, or
enter into a management contract or other arrangement whereby the Demised
Properties shall be managed or operated by anyone other than the owner of the
Tenant’s leasehold estate, without the prior written consent of Landlord in each
instance, which Landlord may withhold in its sole and absolute discretion.
Without limitation, any of the following shall be deemed an assignment of this
Lease: (i) any assignment or transfer of any direct or indirect ownership
interest in Tenant, in whole or in part, by operation of law or otherwise,
regardless of the number of tiers of ownership, in one or more transactions, in
such a manner that the ultimate beneficial owners of Tenant transfer control of
Tenant, and (ii) any encumbrance, pledge or hypothecation, in whole or in part,
by operation of law or otherwise, of this Lease or any interest in the leasehold
estate created by this Lease, or of any direct or indirect ownership interest in
Tenant, regardless of the number of tiers of ownership. As used in the
immediately preceding sentence, “control” means ownership of voting securities
sufficient to elect a majority of the board of directors of a corporation, or
analogous ownership interests of non-corporate entities, or otherwise having the
power to direct the policies or operations of such corporation or non-corporate
entities.
 
MASTER LAND AND BUILDING LEASE
 
 

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(b)           After any assignment or sublease permitted by Landlord hereunder,
and except as expressly provided herein, (i) Tenant shall remain liable for all
its obligations under this Lease and Tenant shall execute and deliver to
Landlord a guaranty in form and substance reasonably acceptable to both Landlord
and Tenant, whereby Tenant explicitly guarantees all of the assignee’s or
subtenant’s obligations under this Lease, and (ii) Landlord may condition its
consent to any sublease regarding the Demised Properties upon the sublease
containing the following provisions, in form and substance acceptable to
Landlord and Landlord’s Lender (collectively, the “Subordination and Attornment
Provisions ”): (A) that the sublease is subordinate in all respects to this
Lease; (B) that in the event of the cancellation or termination of this Lease
for any reason whatsoever or of the surrender of this Lease by operation of law
prior to the expiration date of the sublease, subtenant shall make full and
complete attornment to Landlord under either the terms of this Lease (with a
base rent for the applicable Demised Properties equal to the greater of (y) the
sublease base rent, and (z) the fair market rent for such Demised Properties as
reasonably determined by Landlord) or the terms of the sublease, at Landlord’s
election in its sole and absolute discretion, for the balance of the term of the
sublease; (C) that subtenant waives the provisions of any Law then or thereafter
in effect that may give subtenant any right of election to terminate the
sublease or to surrender possession of the Demised Properties in the event any
proceeding is brought by Landlord to terminate this Lease; and (D) that all of
the foregoing provisions in (A) through (C) are for the benefit of both Tenant
and Landlord and Landlord is a third party beneficiary thereof. Notwithstanding
the foregoing, upon the request of Landlord or Landlord’s Lender, Landlord,
Tenant and the subtenant shall execute and deliver to each other a separate
subordination, attornment and nondisturbance agreement regarding the sublease,
in form and substance reasonably acceptable to Landlord and Landlord’s Lender.
Tenant shall submit current financial statements of any proposed assignee or
sublessee together with Tenant’s request for Landlord’s approval of any proposed
assignment or sublease. Tenant shall reimburse Landlord for all costs and
expenses actually paid by Landlord in connection with any requested assignment
or sublease; including, but not limited to, legal fees and costs in reviewing
sublease or assignment documents and in preparing or reviewing consents.
 
(c)           If this Lease is assigned or transferred, or if all or any part of
the Demised Properties is sublet or occupied by any party other than Tenant,
Landlord may collect rent from the assignee, transferee, subtenant or occupant,
and apply the net amount collected to the Rent reserved in this Lease, but no
such assignment, subletting, occupancy or collection shall be deemed a waiver of
any covenant or condition of this Lease, or the acceptance of the assignee,
transferee, subtenant or occupant as tenant, or a release of Tenant from the
performance or further performance by Tenant of its obligations under this
Lease. Without limiting the generality of the forgoing, Tenant expressly
acknowledges and agrees that, in the event of any assignment of this Lease,
Tenant shall remain jointly and severally liable with the assignee for all of
the obligations under this Lease, and in all other cases of any transfer of
Tenant’s interest under this Lease, Tenant shall remain primarily liable for
such obligations. Subject to the foregoing, the consent by Landlord to an
assignment, transfer, management contract or subletting shall not in any way be
construed to relieve Tenant from obtaining the express written consent of
Landlord in each instance to any subsequent similar action that Tenant may
desire to take.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 22.02 Notwithstanding anything contained in Section 22.01, Tenant may
sublease any Demised Property hereunder without Landlord’s consent, including
without limitation to any of Tenant’s wholly-owned subsidiaries, provided all of
the following conditions are satisfied (a) the subtenant is commercially and
financially sound; (b) the permitted use under the sublease is limited to the
operation of a restaurant (with any change in use subject to the prior written
consent of each of Landlord and Tenant, which approval each may withhold in its
reasonable discretion) and the covenants set forth in Section 4.02 are included
in the sublease as obligations of the subtenant (although the covenants set
forth in Section 4.01 may be expressly excluded from the sublease), (c) the
sublease contains a covenant whereby the subtenant agrees, subject to Applicable
Law, to continuously operate at the Demised Property during all hours that are
customary for similarly situated sites of the same operating brand; provided,
however, that if there are not similarly situated sites of the same operating
brand, then the sublease shall contain a covenant whereby the subtenant agrees,
subject to Applicable Law, to continuously operate at the Demised Property
during all hours that are customary for similar restaurants in the same
geographic location as the Demised Property; (d) the applicable sublease
contains the Subordination and Attornment Provisions and prohibits the subtenant
from effecting or permitting any Alterations (other than a Minor Project)
without the prior written consent of Tenant and Landlord; (e) the term of the
sublease, including any extension options, does not (and cannot) extend beyond
the scheduled Lease Term; and (f) the subtenant has delivered to Landlord and
any Landlord’s Lender, upon request, a subordination, non-disturbance and
attornment agreement in form and substance reasonably acceptable to Landlord and
any Landlord’s Lender; provided, however, that Tenant may only sublease without
Landlord’s consent a maximum aggregate number (other than those to Tenant’s
wholly-owned subsidiaries) of four (4) Demised Properties during the Lease Term
(and any such subleased Demised Property shall continue to count against such
maximum number, whether such subleased Demised Property is later assigned by
Landlord pursuant to Article 30, or replaced by a Replacement Property under
Article 31, or otherwise is removed from this Lease, or if the applicable
sublease is terminated), and if Tenant has subleased four (4) Demised Properties
(other than those to Tenant’s wholly-owned subsidiaries) during the Lease Term
without Landlord’s consent, any additional sublease shall be subject to
Landlord’s consent in its sole discretion, unless the sublease satisfies the
conditions in Section 22.03  , in which event such sublease shall be subject to
Landlord’s consent in its reasonable discretion.
 
Section 22.03 Notwithstanding anything contained in Section 22.01, Tenant may
sublease any Demised Property hereunder subject to Landlord’s consent in its
reasonable discretion, provided all of the following conditions are satisfied:
(a) the subtenant is commercially and financially sound; (b) the permitted use
under the sublease is limited to the operation of a retail establishment (which
may include, but which shall not be limited to, the operation of a restaurant)
(and with any change in use subject to the prior written consent of each of
Landlord and Tenant, which approval each may withhold in its reasonable
discretion) and the covenants set forth in Section 4.02 are included in the
sublease as obligations of the subtenant (although the covenants set forth in
Section 4.01 may be expressly excluded from the sublease), (c) the sublease
contains a covenant whereby the subtenant agrees, subject to Applicable Law, to
continuously operate at the Demised Property during all hours that are customary
for similarly situated sites of the same operating brand; provided, however,
that if there are not similarly situated sites of the same operating brand, then
the sublease shall contain a covenant whereby the subtenant agrees, subject to
Applicable Law, to continuously operate at the Demised Property during all hours
that are customary for similar retail establishments in the same geographic
location as the Demised Property; (d) the applicable sublease contains the
Subordination and Attornment Provisions and prohibits the subtenant from
effecting or permitting any Alterations (other than a Minor Project) without the
prior written consent of Tenant and Landlord; (e) the term of the sublease,
including any extension options, does not (and cannot) extend beyond the
scheduled Lease Term, and (f) the subtenant has delivered to Landlord and any
Landlord’s Lender, upon request, a subordination, non-disturbance and attornment
agreement in form and substance reasonably acceptable to Landlord and any
Landlord’s Lender.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 22.04 Notwithstanding anything to the contrary contained in Section
22.01, Tenant may assign all, but not less than all, of its interest in this
Lease without Landlord’s prior written consent, Tenant shall be released from
any liability accruing under this Lease after the date of such assignment,
provided that (a) (i) the assignee has an S&P Credit Rating of BBB- or higher,
and a Moody’s Credit Rating of Baa3 or higher; or (ii) the assignee has an
aggregate tangible net worth, as determined in accordance with GAAP, of at least
US$20,000,000; (b) the assignee assumes all of Tenant’s obligations under this
Lease; and (c) Tenant delivers to Landlord not less than thirty (30) days’ prior
written notice of any such assignment, together with documents reasonably
acceptable to Landlord evidencing the satisfaction of the conditions set forth
in (a) and (b) of this sentence. As referenced herein, “S&P Credit  Rating”
means the credit rating assigned by Standard & Poor’s Rating Group to the
highest rated publicly issued debt securities of the assignee, and “Moody’s
Credit Rating” means the credit rating assigned by Moody’s Investors Service to
the highest rated publicly issued debt securities of the assignee.
 
Section 22.05 Upon any sublease or assignment permitted as provided in this
Article 22 , Tenant shall deliver to Landlord copies of such sublease or
assignment agreement in form and substance reasonably satisfactory to Landlord
(including assumption language reasonably satisfactory to Landlord in any
assignment agreement) promptly after the execution thereof by Tenant. An
assignment made with Landlord’s consent or as otherwise permitted hereunder
shall not be effective until Tenant delivers to Landlord an executed counterpart
of such assignment containing an agreement, in recordable form, executed by the
assignor and the proposed assignee, in which the assignee assumes the
performance of the obligations of the assignor under this Lease throughout the
Lease Term. In no event shall Tenant be entitled to amend, extend or otherwise
modify any sublease or assignment agreement without the prior written consent of
Landlord, which consent Landlord may withhold in its sole and absolute
discretion.
 
Section 22.06 Subject to the terms of this Lease, this Lease shall be binding
upon, enforceable by, and inure to the benefit of the parties hereto and their
respective heirs, successors, representatives and assigns.
 
ARTICLE 23 FINANCINGS
 
Section 23.01 This Lease shall be subject and subordinate to all present and
future ground or underlying leases of any of the Demised Properties and to the
lien of any mortgages or trust deeds, now or hereafter in force against any of
the Demised Properties, and to all renewals, extensions, modifications,
consolidations and replacements thereof, and to all advances made or hereafter
to be made upon the security of such mortgages or trust deeds, unless the
holders of such mortgages or trust deeds, or the lessors under such ground or
underlying leases, require in writing that this Lease be superior thereto; and
Tenant covenants and agrees in the event any proceedings are brought for the
foreclosure of any mortgage or deed of trust to which this Lease is subordinate,
or in the event of any termination of any ground or underlying lease to which
this Lease is subordinate, to attorn, without any deductions or set-offs
whatsoever, to the purchaser upon any such foreclosure sale, if so requested to
do so by such purchaser, and to the ground or underlying lease lessor, if so
requested to do so by such ground or underlying lease lessor, and to recognize
such purchaser, or ground or underlying lessor, as the case may be, as the
lessor under this Lease; provided, however, that the foregoing subordination to
future ground or underlying leases of the Demised Properties and to the lien of
any future mortgages or trust deeds in force against the Demised Properties may
be conditioned upon Landlord providing Tenant with a subordination,
non-disturbance and attornment agreement in favor of Tenant in the form attached
hereto as Exhibit B, or other commercially reasonable form requested by Landlord
that provides, without limitation, that this Lease and the rights of Tenant
hereunder shall survive any foreclosure proceeding brought under such mortgage
or deed of trust, or termination of such ground or underlying lease (as
applicable), provided Tenant is not in default or breach of its obligations
under this Lease (either, an “SNDA”). Without limiting the foregoing, (a) as of
the Commencement Date, each of Landlord, Landlord’s Lender, and Tenant shall
execute and deliver to each other a subordination, non-disturbance and
attornment agreement in the form attached hereto as Exhibit B , and (b) Tenant
shall, and shall cause any subtenant, from time to time, within eight (8) days
after any request by Landlord, to execute and deliver such other instruments or
assurances as Landlord may reasonably deem necessary to evidence or confirm the
subordination or superiority of this Lease (at Landlord’s election) to any such
mortgages, trust deeds, ground or underlying leases (including, at Landlord’s
election, one or more additional SNDAs requested by Lender).
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 23.02 Tenant shall cooperate with Landlord and execute any and all
instruments reasonably requested by Landlord (including, if necessary, the
execution of an amendment to this Lease), in the establishment and maintenance
of cash management procedures reasonably requested by any Landlord's Lender with
respect to payment of Base Rent and other amounts payable by Tenant directly to
Landlord as and when the same are due and payable hereunder; provided, however,
that Tenant shall not be obligated to agree to any requested action or execute
any requested instrument if the same would have a material adverse effect upon
Tenant, unless Tenant is reasonably compensated therefor by Landlord. In
addition, Tenant agrees to cooperate in good faith with Landlord, any Landlord’s
Lender and any Landlord’s Mortgagee, in connection with any sale or transfer of
the any of the Demised Properties by Landlord or any transfer, participation,
syndication and/or securitization of any loan secured by any of the Demised
Properties, or any or all servicing rights with respect thereto, including (a)
by providing such documents, financial and other data, and other information and
materials (the " Disclosures") that would typically be required with respect to
Tenant by a purchaser of the any of the Demised Properties and/or a purchaser,
transferee, assignee, servicer, participant, co-lender, investor or rating
agency involved with respect to any transfer, participation, syndication and/or
securitization of any loan secured by any of the Demised Properties, as
applicable (collectively, the "Transfer Parties" and each, a "Transfer Party ");
and (b) by amending the terms of this Lease to the extent reasonably necessary
so as to satisfy the requirements of the Transfer Parties involved in any such
transfer, participation, syndication or securitization; provided, however, that
Tenant shall not be obligated to agree to any requested action, or execute any
requested amendment, if the same would have a material adverse effect upon
Tenant, unless Tenant is reasonably compensated therefor by Landlord
 
Section 23.03 Notwithstanding Section 22.01 above, but subject to the terms of
this Article, Landlord agrees that Tenant shall have the right to encumber,
pledge or hypothecate Tenant’s interest in the leasehold estate created by this
Lease. All proceeds from any Leasehold Mortgage shall remain the property of
Tenant. Landlord shall not be obligated to subordinate any or all of Landlord’s
right, title or interest in and to the Demised Properties and this Lease to the
lien of any Leasehold Mortgage. A Leasehold Mortgage shall encumber only
Tenant’s leasehold interest in the Demised Properties, and shall not encumber
Landlord’s right, title or interest in the Demised Properties. Landlord shall
have no liability whatsoever for the payment of any obligation secured by any
Leasehold Mortgage or related obligations. A Leasehold Mortgage shall be, and
hereafter shall continue at all times to be, subject to each and all of the
covenants, conditions and restrictions set forth in this Lease, and junior,
subject and subordinate, in each and every respect, to all rights and interests
of any Landlord’s Mortgagee now or hereafter affecting any of the Demised
Properties. Should there be any conflict between the provisions of this Lease
and the provisions of any Leasehold Mortgage, the provisions of this Lease shall
control. No Leasehold Mortgage shall be for a term longer than the Original
Lease Term. Either prior to or concurrently with the recordation of any
Leasehold Mortgage, Tenant shall cause a fully conformed copy thereof and of the
financing agreement secured thereby to be delivered to Landlord and Landlord’s
Mortgagee, together with a written notice containing the name and post office
address of Tenant’s Lender. Upon written request from Tenant, Landlord agrees to
deliver an estoppel certificate in favor of Tenant’s Lender regarding this
Lease, in form and substance reasonably acceptable to Landlord and Tenant’s
Lender. Tenant agrees that a condition precedent to its granting a Leasehold
Mortgage to any Tenant’s Lender shall be the execution and delivery by such
Tenant’s Lender to Landlord and Landlord’s Lender of a subordination,
non-disturbance and attornment agreement, in form and substance reasonably
acceptable to Landlord and Landlord’s Lender, that shall provide, without
limitation, that upon a default under the Leasehold Mortgages, Tenant’s Lender
may foreclose only on this Lease as an entirety, applicable to all, but not less
than all (even if otherwise possible under applicable Law) of the Demised
Properties. If Landlord delivers to Tenant a Default notice under this Lease,
Landlord shall notify any Tenant’s Lender (without any liability for failure to
provide such notification) that has delivered to Landlord a prior written
request for such notice, and Landlord shall recognize and accept the performance
of any obligation of Tenant hereunder by Tenant’s Lender (provided said
performance occurs within the same cure periods as provided to Tenant under this
Lease); provided, however that nothing contained herein shall obligate Tenant’s
Lender to take any such actions. Any act by Tenant or Tenant’s Lender in
violation of this Section 23.03  shall be null and void and of no force or
effect. This Section shall survive termination of this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 24 ESTOPPEL CERTIFICATE
 
Tenant shall, without charge, at any time and from time to time, within ten (10)
days after any request by Landlord, deliver to Landlord or any other Person
specified by Landlord, duly executed and acknowledged, a completed Estoppel
Certificate in substantially the form as set forth on Exhibit C attached hereto,
or other commercially reasonable estoppel certificate confirming such
information regarding this Lease, Tenant as Landlord may request (either, an
“Estoppel Certificate”). Tenant’s failure to deliver to Landlord any Estoppel
Certificate requested by Landlord as and when provided in this Article shall be
deemed conclusive against Tenant as to the truthfulness of the items stated in
such Estoppel Certificate requested by Landlord.
 
ARTICLE 25 RECORDING
 
Neither Landlord nor Tenant shall record this Lease; however, upon the request
of either party hereto, the other party shall join in the execution and
recordation of a memorandum of lease (or similar instrument) in a form
substantially similar to the form attached hereto as Exhibits D-1 through D­5.
Tenant shall pay all costs charged by the applicable local recorder in
connection with the recordation of any such memorandum of lease (or similar
instrument).
 
ARTICLE 26 APPLICABLE LAW; WAIVER OF JURY TRIAL
 
This Lease shall be construed in accordance with, and this Lease and all matters
arising out of or relating to this Lease (whether in contract, tort or
otherwise) shall be governed by, the law of the State of New York without regard
to conflicts of law principles; provided, however, that any forcible entry and
detainer action or similar proceeding shall be governed by the laws of the state
in which the applicable Demised Property is located. If any provision of this
Lease or the application thereof shall, to any extent, be invalid or
unenforceable, the remainder of this Lease shall not be affected thereby, and
each provision of this Lease shall be valid and enforceable to the fullest
extent permitted by applicable Law.
 
MASTER LAND AND BUILDING LEASE
 
 

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TENANT AND LANDLORD, EACH HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY
STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK,
AND EACH IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS LEASE SHALL BE LITIGATED IN SUCH COURTS (EXCEPT FOR FORCIBLE
ENTRY AND DETAINER ACTIONS, OR SIMILAR PROCEEDINGS, WHICH SHALL BE LITIGATED IN
COURTS LOCATED WITHIN THE COUNTY AND STATE IN WHICH THE APPLICABLE DEMISED
PROPERTY IS LOCATED). TENANT AND LANDLORD EACH ACCEPTS, GENERALLY AND
UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS (EXCEPT AS
PROVIDED ABOVE IN THIS PARAGRAPH) AND WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY
IN CONNECTION WITH THIS LEASE.
 
EACH OF TENANT AND LANDLORD, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY
KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT
COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE)
BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS LEASE.
 
TENANT AND LANDLORD EACH ACKNOWLEDGES THAT THE PROVISIONS OF THIS ARTICLE ARE A
MATERIAL INDUCEMENT TO THE OTHER PARTY’S ENTERING INTO THIS LEASE.
 
ARTICLE 27 LIABILITY OF PARTIES
 
   Section 27.01  The obligations of Landlord under this Lease are not personal
obligations of the individual members, partners, directors, officers,
shareholders, agents or employees of Landlord. Tenant shall look solely to the
Demised Properties for satisfaction of any liability of Landlord and shall not
look to other assets of Landlord nor seek recourse against the assets of the
individual members, partners, directors, officers, shareholders, agents or
employees of Landlord. Whenever Landlord transfers its interest in any Demised
Property, Landlord shall be automatically released from further performance
under this Lease with respect to such Demised Property and from all further
liabilities and expenses hereunder related to such Demised Property.
 
   Section 27.02  The obligations of Tenant under this Lease are not personal
obligations of the individual members, partners, directors, officers,
shareholders, agents or employees of Tenant. Landlord shall not seek recourse
against the assets of the individual members, partners, directors, officers,
shareholders, agents or employees of Tenant. If more than one Person is named as
Tenant hereunder, the obligations under this Lease of all such Persons as Tenant
shall be joint and several.
 
ARTICLE 28 ATTORNEYS’ FEES; EXPENSES
 
Without limiting any other obligation of Tenant to timely indemnify or reimburse
Landlord hereunder (including under Article 9 and Article 29):
 
MASTER LAND AND BUILDING LEASE
 
 

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(a)           If any party to this Lease shall bring any action or proceeding
for any relief against the other, declaratory or otherwise, arising out of this
Lease, the losing party shall pay to the prevailing party a reasonable sum for
attorneys’ fees and costs incurred in bringing or defending such action or
proceeding and/or enforcing any judgment granted therein, all of which shall be
deemed to have accrued upon the commencement of such action or proceeding and
shall be paid whether or not such action or proceeding is prosecuted to final
judgment. Any judgment or order entered in such action or proceeding shall
contain a specific provision providing for the recovery of attorneys’ fees and
costs, separate from the judgment, incurred in enforcing such judgment. The
prevailing party shall be determined by the trier of fact based upon an
assessment of which party’s major arguments or positions taken in the
proceedings could fairly be said to have prevailed over the other party’s major
arguments or positions on major disputed issues; provided, however, that the
parties agree that in no event shall Tenant be deemed a prevailing party if an
Event of Default then exists under this Lease. For the purposes of this clause,
attorneys’ fees shall include fees incurred in the following: (i) post-judgment
motions; (ii) contempt proceedings; (iii) garnishment, levy, and debtor and
third party examinations; (iv) discovery; and (v) bankruptcy litigation. This
clause is intended to be expressly severable from the other provisions of this
Agreement, is intended to survive any judgment and is not to be deemed merged
into the judgment.
 
(b)           Tenant agrees to pay or, if Tenant fails to pay, to reimburse,
Landlord upon receipt of written notice from Landlord for all reasonable costs
and expenses (including reasonable attorneys’ fees and costs) incurred by
Landlord in connection with (i) the preparation, negotiation, execution and
delivery of this Lease and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby and all the costs of
furnishing all opinions by counsel for Tenant (including any opinions requested
by Landlord as to any legal matters arising under this Lease or the other
Transaction Documents); (ii) Tenant’s ongoing performance of and compliance with
its agreements and covenants contained in this Lease and the other Transaction
Documents on its part to be performed or complied with, including confirming
compliance with environmental and insurance requirements, and determining
whether defaults or Events of Default may exist under any of the Transaction
Documents; (iii) any request by Tenant to Landlord, including Landlord’s actions
in response thereto; (iv) the negotiation, preparation, execution, delivery and
administration of any consents, amendments, waivers or other modifications to
this Lease and the other Transaction Documents and any other documents or
matters requested by Landlord in accordance with the terms of the Transaction
Documents; (v) securing Tenant’s compliance with any requests made pursuant to
the provisions of this Lease or other Transaction Documents; and (vi) enforcing
any obligations of or collecting any payments due from Tenant under this Lease,
the other Transaction Documents or with respect to any Demised Property.
 
ARTICLE 29 ENVIRONMENTAL
 
Section 29.01 Tenant acknowledges that Landlord makes no warranties or
representations of any kind, or in any manner or in any form whatsoever, as to
the status of Environmental Conditions or Hazardous Materials at the Demised
Properties. Tenant shall conduct at its own expense any and all investigations
regarding Environmental Conditions of the Demised Properties and will satisfy
itself as to the absence or existence of Hazardous Materials contamination of
the Demised Properties. Tenant’s entry into this Lease shall be made at its sole
risk.
 
Section 29.02 Tenant shall comply with all Environmental Laws and cause and
ensure the Demised Properties and all operations thereon comply with all
applicable Environmental Laws. Tenant shall not suffer or permit any loss, on,
at, under or affecting the Demised Properties of any source if the same pose a
health or safety risk to invitees or employees. From and after the Commencement
Date, Tenant shall not be entitled to the Use of any Hazardous Materials at the
Demised Properties other than De Minimis Amounts, which shall be performed in
full compliance with all Environmental Laws and any other applicable Laws.
Tenant shall be prohibited from conducting or allowing the Release of Hazardous
Materials onto, on, about, under or from the Demised Properties, the exception
being sewer or other permitted discharges or Releases or other De Minimis
Amounts, in full compliance with all Environmental Laws and any other applicable
Laws. From and after the date of this Lease, Tenant covenants to, and shall,
undertake all Remedial Activities necessary to comply with Environmental Laws
and address any Use or Release of Hazardous Materials after the date of this
Lease, by Tenant or its agents, employees, representatives, invitees, licensees,
subtenants, customers or contractors (“Other Parties”), or otherwise adversely
affecting any Demised Property at Tenant’s sole cost and expense, and shall give
immediate written notice of same to Landlord, including the abatement of any
mold or fungi that constitute Hazardous Materials, even if no applicable Law
compels such abatement. If any Remedial Activities are required to be performed
at any location other than the Demised Properties, Tenant shall use its best
efforts to obtain any required access agreements from third parties.
 
 
 

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Section 29.03 In addition to any other obligation herein, Tenant shall
indemnify, defend, protect and hold Landlord Parties free and harmless from any
and all Losses and other obligations of any kind whatsoever that may be made
against or incurred by Landlord Parties in connection with (a) the violation of
any Environmental Law, or (b) Hazardous Materials or Environmental Conditions
at, on, under, about or from the Demised Properties during the Lease Term (and
in the event of any holding over by Tenant, during any period that Tenant
occupies the relevant Demised Property) whether or not the same constitute a
violation of any Environmental Law, including any and all costs and fees of
attorneys or experts incurred by Landlord in defending against same. This and
any other right of Landlord under this Lease shall inure to the benefit of
Landlord’s successors and assigns, as well as Landlord’s Lenders and Landlord’s
Mortgagees and their respective successors and assigns as third party
beneficiaries.
 
Section 29.04 Tenant shall promptly inform Landlord in writing of (a) any and
all enforcement actions, initiation of Remedial Activities where no Remedial
Activities are currently being conducted upon receipt of such notification, or
other governmental or regulatory actions (excluding routine actions such as
permit renewals) instituted, completed or threatened pursuant to any
Environmental Laws affecting the Demised Properties; (b) all claims made or
threatened by any third Person against Tenant or the Demised Properties relating
in any way whatsoever to Hazardous Materials or Environmental Conditions (the
matters set forth in clauses (a) and (b) are hereinafter referred to as
“Environmental Claims”); (c) Tenant’s knowledge of any material Release of
Hazardous Materials at, on, in, under to or from the Demised Properties or on,
in or under any adjoining property. Tenant shall also supply to Landlord within
three Business Days after Tenant first receives or sends the same, copies of all
claims, reports, complaints, notices, warnings, asserted violations or other
communications relating in any way to the matters described in this Section.
 
Section 29.05 In addition to any other obligations herein, Tenant shall be
solely responsible for and shall indemnify, protect, defend, and hold harmless
all Landlord Parties from and against any and all Losses directly or indirectly
arising out of or associated in any manner whatsoever with Tenant’s Use or the
presence of Hazardous Materials or Release of Hazardous Materials at, on, under,
about or from the Demised Properties during the Lease Term (and in the event of
any holding over by Tenant, during any period that Tenant occupies the relevant
Demised Property). Tenant’s indemnity and release includes: (a) the costs
associated with Remedial Activities, including all necessary plans and reports,
incurred by the U.S. Environmental Protection Agency, or any other federal,
state or local governmental agency or entity or by any other Person, incurred
pursuant to the CERCLA, RCRA, or any other applicable Environmental Laws; (b)
any oversight charges, fines, damages or penalties arising from the presence or
Release of Hazardous Materials, and any related Remedial Activities, incurred
pursuant to the provisions of CERCLA, RCRA, or any other applicable
Environmental Laws; (c) any liability to third parties arising out of the
presence or Release of Hazardous Materials for personal injury, bodily injury,
property damage or natural resource damage arising under any statutory or common
law theory, including damages assessed for the maintenance of a public or
private nuisance, the costs of Remedial Activities, or for the carrying on of an
abnormally dangerous activity; (d) all direct or indirect compensatory,
consequential, or punitive damages arising out of any claim based on the
presence or Release of Hazardous Materials or damage or threatened damage to
Environmental Conditions; (e) any and all reasonable costs, fees and expenses of
attorneys, consultants and experts incurred or sustained in making any
investigation on account of any claim, in prosecuting or defending any action
brought in connection therewith, in obtaining or seeking to obtain a release
therefrom, or in enforcing any of the agreements herein contained; (f) Rent
during any period of Remedial Activities equal to the Base Rent then in effect,
or if this Lease has terminated, the Base Rent that was in effect on the
Termination Date; and (g) any action or omission or use of the Demised
Properties by any subtenant. The foregoing indemnity shall apply to Tenant’s Use
of Hazardous Materials irrespective of whether any of Tenant’s activities were
or will be undertaken in accordance with Environmental Laws or other applicable
Laws. This indemnity is intended to be operable under 42 U.S.C. 9607(e)(1).
Tenant specifically agrees that it shall not sue or seek contribution from any
indemnity or any successors or assigns thereof in any matter relating to any
Hazardous Material liability. All costs and expenses paid or incurred by
Landlord for which Tenant is obligated to indemnify Landlord under this Section
shall be paid promptly by Tenant to Landlord. This Section shall survive
termination of this Lease.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 30 LANDLORD ASSIGNMENT
 
Section 30.01 This Lease shall be fully assignable by Landlord or its successors
and assigns, in whole or in part, subject to the terms of Article 27 and this
Article. In the event that from time to time Landlord desires to partially
assign its interest in this Lease with respect to one or more of the Demised
Properties (including to one or more Affiliates of Landlord), then (a) Landlord
shall determine in its sole discretion, the Base Rent allocated to any Demised
Properties covered by the partial assignment (the “Allocated Base Rent Amount”),
(b) Landlord, at its cost and expense, shall prepare a landlord assignment lease
agreement (or landlord assignment lease agreements, in Landlord’s discretion) in
the form attached hereto as Exhibit E with respect to any such Demised
Properties (each, a “Landlord  Assignment Lease Agreement”); (c) upon the
assignment by Landlord, this Lease shall be amended to exclude any such Demised
Properties from this Lease, the Base Rent hereunder shall be reduced by the
Allocated Base Rent Amount; and (d) the Base Rent payable under the Landlord
Assignment Lease Agreement (or Landlord Assignment Lease Agreements) shall equal
the Allocated Base Rent Amount. In such event, each party (including Landlord’s
assignee), shall execute any such new Landlord Assignment Lease Agreement within
five (5) Business Days after delivery of an execution version thereof. In
addition, Tenant shall execute and deliver to Landlord any other instruments and
documents requested by Landlord in connection with the assignment, including a
new guaranty (substantially in the form of Exhibit F) of any such Landlord
Assignment Lease Agreement and any commercially reasonable subordination,
non-disturbance and attornment agreement that may be requested by Landlord’s
assignee’s lenders. In addition, Tenant agrees to cooperate reasonably with
Landlord in connection with any such assignment. From and after the effective
date of any such Landlord Assignment Lease Agreement, Landlord shall be
automatically released (without need for any further agreement or other
document) from any liability thereafter arising with respect to the Demised
Properties covered thereby. In no event shall Landlord have any liability under
any Landlord Assignment Lease Agreement. Without limiting the foregoing, (x)
Tenant agrees that Landlord may agree in its sole discretion with any purchaser
or assignee of any Demised Property covered by a Landlord Assignment Lease
Agreement to provide (or have an Affiliate of Landlord provide) asset management
and/or act as servicer regarding such Demised Property; (y) Tenant acknowledges
that any Landlord Assignment Lease Agreement may be, in Landlord’s sole
discretion, a “master lease” agreement covering multiple Demised Properties
(which Landlord Assignment Lease Agreement may include, in Landlord’s sole
discretion, language materially identical to that contained in Recital D and
Section 30.03 of this Lease, even if such language does not appear in the form
of Landlord Assignment Lease Agreement attached hereto as Exhibit E); and (z)
any Landlord assignee that is an Affiliate of Landlord may, in its sole
discretion, elect to conform the terms of such Landlord Assignment Lease
Agreement (other than Base Rent) to this Lease rather than to the form of
Landlord Assignment Lease Agreement attached hereto as Exhibit E.
 
MASTER LAND AND BUILDING LEASE
 
 

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Section 30.02 Landlord and Tenant agree that this Lease constitutes a true lease
and not a financing or other form of transaction (including for federal income
tax purposes). In furtherance of the foregoing, Landlord and Tenant each
irrevocably waives any claim or defense based upon the characterization of this
Lease as anything other than a true lease and irrevocably waives any claim or
defense that asserts that this Lease is anything other than a true lease.
Landlord and Tenant covenant and agree that they will not assert that this Lease
is anything but a true lease. Landlord and Tenant each stipulate and agree not
to challenge the validity, enforceability or characterization of this Lease of
the Demised Properties as a true lease and further stipulate and agree that
nothing contained in this Lease creates or is intended to create a joint
venture, partnership (either de jure or de facto), equitable mortgage, trust,
financing device or arrangement, security interest or the like. Landlord and
Tenant each shall support the intent of the parties that the lease of the
Demised Properties pursuant to this Lease is a true lease and does not create a
joint venture, partnership (either de jure or de facto), equitable mortgage,
trust, financing device or arrangement, security interest or the like, if, and
to the extent that, any challenge occurs. Tenant has discussed the
characterization of this Lease with its independent auditors and Tenant believes
that this Lease will be treated as an operating lease rather than a capital
lease. Landlord shall claim all depreciation with respect to the Demised
Properties.
 
Section 30.03 Landlord and Tenant agree that this Lease constitutes a single and
indivisible lease as to all of the Demised Properties collectively, and shall
not be subject to severance or division unless and to the extent, pursuant to
Section 30.01, Landlord elects to effect a partial assignment of this Lease. In
furtherance of the foregoing, and except as may result from the amendment of
this Lease to eliminate certain properties and reduce Base Rent in conjunction
with the execution of Landlord Assignment Lease Agreements pursuant to the terms
of Section 30.01  , Landlord and Tenant each (a) waives any claim or defense
based upon the characterization of this Lease as anything other than a master
lease of all the Demised Properties and irrevocably waives any claim or defense
that asserts that this Lease is anything other than a master lease, (b)
covenants and agrees that it will not assert that this Lease is anything but a
unitary, unseverable instrument pertaining to the lease of all, but not less
than all, of the Demised Properties, (c) stipulates and agrees not to challenge
the validity, enforceability or characterization of this Lease of the Demised
Properties as a unitary, unseverable instrument pertaining to the lease of all,
but not less than all, of the Demised Properties, and (iv) shall support the
intent of the parties that this Lease is a unitary, unseverable instrument
pertaining to the lease of all, but not less than all, of the Demised
Properties, if, and to the extent that, any challenge occurs.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 31 REPLACEMENTS
 
Section 31.01 Property Replacements. During the Lease Term, Tenant, at its
election, may substitute up to an aggregate amount not to exceed fifteen percent
(15%) of the Demised Properties (other than the St. Louis Properties) (each a
“Replaced Property”) with tracts of real property on which Tenant operates
another Permitted Restaurant Brand restaurant (each a “Replacement Property”).
Tenant shall submit for Landlord’s review evidence of the fair market value of
the proposed Replacement Property satisfactory to Landlord and any Landlord’s
Lender and compliant with Landlord’s Lender’s regulatory requirements, as well
as current survey, current environmental report, records of any administrative
proceedings or environmental claims involving the proposed Replacement Property,
current title report and profit/loss statements for the previous two years of
the Replacement Property and similar data with respect thereto, as well as
evidence of the fair market value of the proposed Replaced Property satisfactory
to Landlord and any Landlord’s Lender and compliant with Landlord’s Lender’s
regulatory requirements, and other information with respect to the Replaced
Property as Landlord and Landlord’s Lender may request. Provided that (a) the
Replacement Property has equivalent or greater fair market value and equivalent
or stronger financial operating history than the Replaced Property, each as
determined by Landlord in its sole good faith discretion, (b) the Replacement
Property is located within the same geographic area as the Replaced Property, is
in a portion of such geographic area with equivalent or better customer
demographics and equivalent or less business competition, has equivalent or
better traffic flows, is not subject to a higher property tax rate, and is not
subject to fees and other costs to comply with applicable Laws that are
materially higher than those that the Replaced Property is subject to, each as
determined in Landlord’s sole good faith discretion, (c) the Replacement
Property has no material title or environmental defects, and has no other
material liability substantially greater than the Replaced Property on the date
of the applicable substitution, all in Landlord’s sole good faith discretion,
(d) Tenant has satisfied such other conditions as Landlord or Landlord’s Lenders
may impose in their sole good faith discretion, (e) Landlord and Landlord’s
Lenders, in their sole good faith discretion, otherwise approve the substitution
(such approval rights encompassing, without limitation, Landlord’s determination
as to whether the substitution will qualify as a like-kind exchange in which no
gain is recognized pursuant to Section 1031 of the Internal Revenue Code of
1986, as amended), and (f) such substitution is in compliance with all the
provisions of the federal income tax law relating to “real estate mortgage
investment conduits” (“REMICs”), which appear in Sections 860A through 860G of
the Internal Revenue Code of 1986, as amended from time to time (“Code”), then
Landlord, within thirty (30) days after the submission of all reports and other
information required hereunder (such thirty (30) day period is referred to in
this Article as the “Consideration Period”), shall approve the substitution of
the Replacement Property for the Replaced Property. Without limiting the
foregoing, upon the written request of Landlord or Landlord’s mortgagee, as the
case may be, Tenant shall deliver to Landlord as a condition precedent to any
approval of the substitution of a Replacement Property for a Replaced Property,
a legal opinion, in form and substance acceptable to Landlord or Landlord’s
mortgagee, as the case may be, in its sole discretion, to the effect that, with
respect to any REMIC trust that holds any loan secured by a mortgage on the
Demised Properties, the release of the Replaced Property and the substitution of
the Replacement Property will not cause (x) such loan to fail to be a “qualified
mortgage” within the meaning of Section 860G(a)(3) of the Code, (y) any failure
of such REMIC trust to qualify as a “real estate mortgage investment conduit”
within the meaning of Section 860D of the Code for federal income tax purposes,
or (z) the imposition of any tax upon the REMIC trust or any of such REMIC
trust’s assets, including any tax on “prohibited transactions” imposed under
Section 860F(a)(2) of the Code. Subject to the foregoing, in the event that
Landlord fails to approve the proposed substitution, Landlord shall deliver to
Tenant a written notice within ten (10) days following the expiration of the
Consideration Period, disapproving the proposed substitution and describing
which of Landlord’s and/or Landlord’s Lenders’ conditions have not been
satisfied. In the event of any such disapproval, Tenant shall have an additional
fifteen (15) day period from and after the date Landlord’s disapproval notice is
delivered to Tenant to submit any additional information or documentation to
Landlord regarding satisfaction of the foregoing conditions. In the event all
the foregoing conditions are still not satisfied, then Landlord shall deliver to
Tenant a second written notice within ten (10) days following the expiration of
such fifteen (15) day period disapproving the proposed substitution and
describing which of said conditions have not been satisfied. If all other
conditions set forth above regarding the proposed substitution have been
satisfied except that Landlord believes that the Replacement Property does not
have equivalent or greater fair market value to the Replaced Property, then
Tenant may, by written notice delivered to Landlord within ten (10) days after
Landlord delivers to Tenant Landlord’s second written notice of Landlord’s
disapproval of the proposed substitution, invoke the following arbitration
procedure to determine whether the Replacement Property has an equivalent or
greater fair market value to the Replaced Property (in which event the proposed
substitution shall be deemed approved), or a fair market value less than the
Replaced Property (in which event the proposed substitution shall remain
disapproved). The date when such Tenant’s notice invoking the arbitration is
delivered to Landlord is referred to in this Section as the “Notice Date”).
 
MASTER LAND AND BUILDING LEASE
 
 

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(1)           Submission of Proposed Value. Within five (5) days after the
Notice Date, (a) Landlord shall deliver to Tenant an MAI fair market value
appraisal for each of the Replacement Property and the Replaced Property
supporting its assertion that the fair market value of the Replacement Property
is less than the fair market value of the Replaced Property, and (b) Tenant
shall deliver to Landlord an MAI fair market value appraisal for each of the
Replacement Property and the Replaced Property supporting its assertion that the
fair market value of the Replacement Property is equal to or greater than the
fair market value of the Replaced Property. If either party (as referred to this
Section, a “Failing Party”) fails to deliver its appraisals to the other party
on or before the last day of such five (5)-day period, but the other party
delivers its appraisals to the Failing Party on or before the last day of such
five (5)-day period, the assertion supported by such other party’s appraisals
delivered pursuant to subsection (1), above (i.e. that the fair market value of
the Replacement Property is less than, or equal to or greater than (as the case
may be), the fair market value of the Replaced Property) shall be binding on
both parties, and the arbitration shall be deemed concluded as of the first day
following the expiration of such five (5)-day period.
 
(2)           Appointment and Qualifications of Arbitrator. If the arbitration
is not deemed concluded pursuant to subsection (1), above, then within fifteen
(15) days after the Notice Date, Landlord and Tenant shall each appoint one
licensed real estate appraiser who has been active over the previous ten-year
(10-year) period in the appraisal of single tenant quick serve/casual dining
restaurants within the county in which the applicable Replacement Property is
located (each such appraiser chosen pursuant to this subsection (2), an
“Arbitrator”). Each of Landlord and Tenant shall notify the other party, in
writing, of its Arbitrator (and the business address thereof) within two
Business Days after the appointment thereof (collectively, the “Arbitrator
Appointment Notices”). Each of Landlord and Tenant agrees that any Arbitrator
may be (but is not required to be) an appraiser who prepared one or both of the
fair market value appraisals delivered by Landlord and Tenant pursuant to
subsection (1), above.
 
(3)           Appointment of Third Arbitrator. If each party appoints an
Arbitrator and notifies the other party in accordance with subsection (2),
above, then the two Arbitrators shall, within ten (10) days after delivery of
the later of the two Arbitrator Appointment Notices, agree on and appoint a
third Arbitrator (whom shall be a licensed real estate appraiser with all other
qualifications for the initial two Arbitrators chosen by the parties as set
forth in subsection (2), above) and provide prompt written notice to Landlord
and Tenant of such third Arbitrator and the business address thereof. If the two
Arbitrators fail to agree on and appoint a third Arbitrator within such ten (10)
day period, then either Landlord or Tenant may elect to have the third
Arbitrator selected by the AAA by delivering written notice thereof to the other
party. In such event, the electing party shall petition the AAA (with a copy to
the other party) to so determine the third Arbitrator and the parties shall
cooperate reasonably with each other and the AAA (including by responding
promptly to any requests for information made by the AAA) in connection with
such determination. The decision of the AAA shall be final and conclusive as to
the identity of the third Arbitrator. If any fees of the third Arbitrator or the
AAA are required to be paid in advance (prior to the completion of the
arbitration procedure described in this Section) in order for such Arbitrator,
or the AAA, as the case may be, to commence or continue its work in connection
with the arbitration described in this Section, each party shall promptly pay
one-half of such fees as and when due, and if either Landlord or Tenant fails to
pay its one-half share of any such fees as and when due (such party is referred
to in this Section as the “Delinquent  Party”), and the other party does pay its
one-half share of any such fees as and when due, then if the Delinquent Party
fails to pay its one-half share of all such fees within ten (10) days after
written notice from the other party, the assertion supported by such other
party’s appraisals delivered pursuant to subsection (1) (i.e. that the fair
market value of the Replacement Property is less than, or equal to or greater
than (as the case may be), the fair market value of the Replaced Property) shall
be binding on both parties, and the arbitration shall be deemed concluded as of
the first day following the expiration of such ten (10)-day period.
 
MASTER LAND AND BUILDING LEASE
 
 

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(4)           Arbitrators’ Decision . If the arbitration is not previously
deemed concluded pursuant to subsection (3), above, then within thirty (30) days
after the appointment of the third Arbitrator, the three Arbitrators shall
decide whether the fair market value of the Replacement Property is equal to or
greater than the fair market value of the Replaced Property and shall notify
Landlord and Tenant in writing of each Arbitrator’s decision. The determination
of each Arbitrator shall be limited to the sole issue of, and each Arbitrator
shall have neither the right nor the power to determine any issue other than,
whether the fair market value of the Replacement Property is equal to or greater
than the fair market value of the Replaced Property, as determined by such
Arbitrator. The decision of the majority of the three Arbitrators shall be
binding on Landlord and Tenant (subject to subsection (5), below), and the
arbitration shall be deemed concluded upon delivery to Landlord and Tenant of
such notifications of the Arbitrators’ decisions.
 
(5)           If Only One Arbitrator Is Appointed . If the arbitration is not
previously deemed concluded pursuant to subsection (1), and if either Landlord
or Tenant fails to appoint an Arbitrator within fifteen (15) days after the
Notice Date or fails to deliver an Arbitrator Appointment Notice in accordance
with subsection (2), above, and the other party does appoint an Arbitrator
within such fifteen (15) day period and delivers an Arbitrator Appointment
Notice in accordance with subsection (2), above, then the Arbitrator timely
appointed by such other party shall reach a decision regarding whether the fair
market value of the Replacement Property is equal to or greater than the fair
market value of the Replaced Property, as determined by such Arbitrator, and
notify Landlord and Tenant of that decision within thirty (30) days after such
Arbitrator’s appointment. Such decision of the Arbitrator shall be binding on
Landlord and Tenant, and the arbitration shall be deemed concluded upon delivery
of such notification of the Arbitrator’s decision.
 
(6)           Cost of Arbitration. If the Arbitrators (or Arbitrator, pursuant
to subsection (5), above) determine that the fair market value of the
Replacement Property is equal to or greater than the fair market value of the
Replaced Property, then Tenant shall be deemed the “Winning Party” under this
subsection (6) and Landlord shall be deemed the “Losing Party” under this
subsection (6). If the Arbitrators (or Arbitrator, pursuant to subsection (5),
above) determine that the fair market value of the Replacement Property is less
than the fair market value of the Replaced Property, then Landlord shall be
deemed the “Winning Party” under this subsection (6) and Tenant shall be deemed
the “Losing Party” under this subsection (6). In addition, in the event the
arbitration is deemed concluded due to a Failing Party not timely delivering its
appraisals as described in subsection (1), or a Delinquent Party failing to pay
its share of fees after written notice as described in subsection (3), such
Failing Party or Delinquent Party (as the case may be) shall be deemed the
“Losing Party” under this subsection (6), and the party that is not the Failing
Party or Delinquent Party (as the case may be) shall be deemed the “Winning
Party” under this subsection (6). Each party shall initially pay the fees and
expenses of its legal counsel, appointed arbitrator, any written reports
prepared by any appraiser in connection with its duties under this Section,
one-half of the fees of the third arbitrator, and one-half the fees of the AAA
(if applicable), provided, however, that the Losing Party shall be obligated to
reimburse the Winning Party for all such fees and expenses of the arbitration
paid by the Winning Party promptly upon the completion of the arbitration
procedure described in this Section.
 
MASTER LAND AND BUILDING LEASE
 
 

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In the event Landlord approves the substitution of the Replacement Property for
the Replaced Property, Tenant shall execute and deliver to Landlord such
instruments and documents as Landlord shall reasonably require in connection
therewith, including a special warranty or similar deed and an amendment to this
Lease, and Landlord shall convey the Replaced Property to Tenant (or Tenant’s
designee) as is, with all faults, without any express or implied warranties. Any
substitution of a Replacement Property for a Replaced Property shall not alter
any of the other obligations of Tenant under this Lease, including the Base Rent
due from Tenant hereunder. Without limitation, Tenant shall be responsible for
all Additional Rent (including real property taxes) regarding the Replaced
Property up to the date of transfer. Tenant shall pay all reasonable
out-of-pocket expenses paid or incurred by Landlord pursuant to this Section,
including, (i) Landlord’s, Affiliates of Landlord’s and Landlord’s Lenders’
legal fees and expenses, the costs of any title policies (owner’s and/or
lender’s) on the Replacement Property, and, without limiting any of Tenant’s
obligations set forth in Article 3  of this Lease, any sales, transfer, and
other taxes and recording fees, and any taxes required to be withheld, which may
be payable in connection with the conveyance of Replacement Property by Tenant
or Replaced Property to Tenant (including any interest or penalties imposed with
respect to the late payment of any such taxes), and (ii) such amount, which,
when added to such payment, shall yield to Landlord (after deduction of all
expenses payable by Landlord with respect to all such payments) a net amount
which Landlord would have realized from such payment had no such expenses been
incurred; provided, however, that so long as no Event of Default has occurred
and is continuing, if an arbitration has been completed under subsections (1)
through (6) of this Section, and if Tenant was the Winning Party (as defined
above in subsection (6)), then Tenant shall not be obligated to reimburse
Landlord for fees and expenses incurred by Landlord in connection with such
arbitration, and Landlord shall be obligated to reimburse Tenant for fees and
expenses incurred by Tenant in connection with such arbitration.
 
ARTICLE 32 [Intentionally Omitted]
 
ARTICLE 33 LANDLORD’S RIGHTS UNDER LEASE
 
Any and all rights of Landlord under this Lease shall inure to the benefit of
Landlord’s successors and assigns, as well as Landlord’s Lenders and/or any
Landlord’s Mortgagees and their respective successors and assigns as third party
beneficiaries.
 
MASTER LAND AND BUILDING LEASE
 
 

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ARTICLE 34 [Intentionally Omitted]
 
ARTICLE 35 [Intentionally Omitted]
 
ARTICLE 36 INTERPRETATION; MISCELLANEOUS
 
Section 36.01 For purposes of this Lease, (a) the words “include”, “includes”
and “including” shall be deemed to be followed by the words “without limitation”
(unless already expressly followed by such phrase), and (b) the words “herein”,
“hereof”, “hereby”, “hereto” and “hereunder” refer to this Lease as a whole.
Unless the context otherwise requires, references herein: (x) to Articles,
Sections, Exhibits, and Schedules mean the Articles and Sections of, and the
Exhibits and Schedules attached to, this Lease; (y) to a lease, instrument or
other document means such lease, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted by the
provisions thereof and by this Lease; and (z) to a statute means such statute as
amended from time to time and includes any successor legislation thereto and any
regulations promulgated thereunder. The Schedules and Exhibits referred to
herein shall be construed with and as an integral part of this Lease to the same
extent as if they were set forth verbatim herein. Titles to Articles and
headings of Sections are inserted for convenience of reference only and shall
not be deemed a part of or to affect the meaning or interpretation of this
Lease. Any defined term used in the plural shall refer to all members of the
relevant class, and any defined term used in the singular shall refer to any one
or more of the members of the relevant class. Where a provision of this Lease
requires that that consent of a party shall not be unreasonably withheld, or
that such consent is in such party’s reasonable discretion, such provision shall
be deemed to require that such consent not be unreasonably withheld,
conditioned, or delayed.
 
Section 36.02 This Lease may be executed in counterparts and shall be binding on
all the parties hereto as if one document had been signed. The delivery of an
executed copy of this Lease by facsimile transmission shall have the same force
and effect as the delivery of the original, signed copy of this Lease. Time is
of the essence of every provision of this Lease. Any provision of this Lease
explicitly providing for the performance by Tenant of obligations upon or after
the expiration or termination of this Lease shall survive any such expiration or
termination. This Lease and the Exhibits attached hereto, all of which form a
part hereof, set forth all the covenants, promises, agreements, conditions and
understandings between Landlord and Tenant concerning the Demised Properties,
and there are no covenants, promises, agreements, conditions or understandings
heretofore made, either oral or written, between them other than as herein set
forth. No modification, amendment, change or addition to this Lease shall be
binding upon Landlord or Tenant unless reduced to writing and signed by each
party. The captions, section numbers, and index appearing in this Lease are
inserted only as a matter of convenience and in no way define, limit, construe
or describe the scope or intent of such sections or articles nor in any way
affect this Lease. Nothing contained in this Lease shall be construed to create
the relationship of principal and agent, partnership, joint venture or any other
relationship between the parties hereto other than the relationship of landlord
and tenant. Except as explicitly set forth in this Lease, there shall be no
third party beneficiaries of this Lease or any of the agreements contained
herein. The failure of Landlord or Tenant to insist upon strict performance of
any of the terms and conditions hereof shall not be deemed a waiver of any
rights or remedies that party or any other such party may have, and shall not be
deemed a waiver of any subsequent breach or default in any of such terms,
covenants or conditions.
 
ARTICLE 37 QUIET ENJOYMENT SUBJECT TO DILIGENCE MATTERS
 
From and after the Commencement Date until the expiration or termination of the
Lease Term, and provided no Event of Default has occurred, Tenant shall have
quiet enjoyment of the Demised
 
MASTER LAND AND BUILDING LEASE
 
 

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Properties, subject however, to all Diligence Matters, which shall have priority
over the interest of Tenant in this Lease and its leasehold interest in the
Demised Properties.
 
ARTICLE 38 NO MERGER OF TITLE
 
There shall be no merger of this Lease with any of the leasehold estates created
hereunder with any fee estate or other leasehold interest in any of the Demised
Properties, whether by reason of the fact that the same Person may acquire, hold
or own, directly or indirectly more than one or all of such legal interests in
any Demised Property unless and until (a) under applicable Law such estates may
be merged, and (b) all Persons having any leasehold interest or fee estate in
any of the Demised Properties, or any part thereof sought to be merged, shall
enter into a written agreement effecting such a merger under applicable Law and
shall duly record same; provided, however, no such merger shall occur unless in
each instance Landlord and any Landlord’s Lender shall be a party to such
agreement.
 
  ARTICLE 39 ADDITIONAL CERTIFICATIONS, REPRESENTATIONS AND WARRANTIES
 
Tenant hereby represents, warrants and certifies to Landlord as follows:
 
(a)           Tenant operates, as of the date of this Lease, not less than 76
Permitted Restaurant Brand restaurants.
 
(b)           As of the date of this Lease, Tenant has (i) a positive
Consolidated Net Worth and (ii) a positive Consolidated Tangible Net Worth.
 
(c)           Tenant, nor its officers and directors, or its direct or indirect
owners regardless of the number of tiers of ownership (each such owner, a
“Beneficial Owner”) (i) is a Person, or has a fiduciary acting on its behalf,
whose property or interest in property is blocked or subject to blocking
pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any
dealings or transactions prohibited by Section 2 of such executive order, or is
otherwise associated with any such Person, or any fiduciary acting on such
Person’s behalf, in any manner violative of Section 2, or (iii) is a Person, or
has a fiduciary acting on its behalf, on the list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or prohibitions
under any other U.S. Department of Treasury’s Office of Foreign Assets Control
regulation or executive order. If Tenant shall at any time determine that an
officer, director or Beneficial Owner of Tenant, or any fiduciary acting on its
behalf, is or has become subject to Executive Order 13224 or is a Person, or has
a fiduciary acting on its behalf, listed on the list referenced in foregoing
clause (iii) or subject to the limitations or prohibitions referenced in such
clause, Tenant will take such steps as a result of such determination as may be
required by applicable Law. Tenant is in compliance with (y) the Trading with
the Enemy Act, as amended, and each of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto,
and (z) the Uniting And Strengthening America By Providing Appropriate Tools
Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001), and each
of the officers, directors and Beneficial Owners of Tenant, and any fiduciary
acting on behalf of any of them, is in compliance with such statutes, enabling
legislation or executive orders to the extent applicable to such Persons.
 
MASTER LAND AND BUILDING LEASE
 
 

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    (d)           Tenant does not intend to apply the constant rental accrual
method (within the meaning of section 1.467-3(b) of the Treasury Regulations
promulgated under the Internal Revenue Code of 1986) to any Rent paid by Tenant
under this Lease.
 
ARTICLE 40 BROKERS
 
Landlord and Tenant each (a) represents to the other party that such
representing party has dealt with no broker or brokers in connection with the
negotiation, execution and delivery of this Lease, other than Brookwood
Associates, LLC and (b) agrees to indemnify, defend, protect (with counsel
selected by the indemnified party, subject to the approval of the indemnifying
party (unless the indemnifying party is the Tenant and an Event of Default has
occurred)) and hold such other party free and harmless of, from and against any
and all Losses arising from (including all brokerage commissions and/or finder’s
fees due or alleged to be due as a result of) any agreement or purported
agreement made by such indemnifying party.
 
ARTICLE 41 STATE SPECIFIC PROVISIONS
 
Section 41.01 Pennsylvania Provisions Without limiting the choice of law
provision set forth in Article 32 , the following provisions shall apply to the
extent that the laws of the Commonwealth of Pennsylvania govern the
interpretation or enforcement of this Lease with respect to any Demised
Properties located in the Commonwealth of Pennsylvania.
 
(a)           This Lease and Tenant’s rights hereunder are and will be subject
and subordinate to any condominium declaration, by-laws and other instruments
(collectively, the “Condominium Documents”) which may be recorded in order to
subject any of the Demised Property located in the Commonwealth of Pennsylvania
to a condominium form of ownership pursuant to the laws of the Commonwealth of
Pennsylvania, provided that the Condominium Documents do not by their terms
increase the Rent, materially increase Tenant’s non-Rent obligations or
materially and adversely affect Tenant’s rights under this Lease. At Landlord’s
request, and subject to the foregoing proviso, Tenant will execute and deliver
to Landlord an amendment of this Lease confirming such subordination and
modifying this Lease to conform to such condominium regime.
 
(b)           CONFESSION OF JUDGMENT FOR POSSESSION OF PREMISES . TENANT HEREBY
EXPRESSLY AUTHORIZES THE PROTHONOTARY, CLERK OR ANY ATTORNEY OF ANY COURT OF
RECORD TO ACCEPT SERVICE OF PROCESS FOR, TO APPEAR FOR, AND TO CONFESS JUDGMENT
AGAINST TENANT AND ALL PERSONS CLAIMING UNDER TENANT IN ANY AND ALL ACTIONS
BROUGHT HEREUNDER BY LANDLORD AGAINST TENANT TO RECOVER POSSESSION OF THE
PREMISES (IN EJECTMENT OR OTHERWISE), WITHOUT ANY LIABILITY ON THE PART OF SAID
ATTORNEY, FOR WHICH THIS LEASE SHALL BE SUFFICIENT WARRANT, AND TENANT AGREES
THAT UPON THE ENTRY OF SUCH JUDGMENT, A WRIT OF POSSESSION OR OTHER APPROPRIATE
PROCESS MAY ISSUE FORTHWITH (WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER).
 
IN ANY SUCH ACTION, LANDLORD SHALL FIRST CAUSE TO BE FILED IN SUCH ACTION AN
AFFIDAVIT MADE BY LANDLORD OR SOMEONE ACTING FOR IT SETTING FORTH FACTS
NECESSARY TO AUTHORIZE THE ENTRY OF JUDGMENT, OF WHICH FACTS SUCH AFFIDAVIT
SHALL BE CONCLUSIVE EVIDENCE, AND IF A TRUE COPY OF THIS LEASE BE FILED IN SUCH
ACTION (AND OF THE TRUTH OF THE COPY SUCH AFFIDAVIT SHALL BE SUFFICIENT
EVIDENCE), IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL, AS A WARRANT OF
ATTORNEY, ANY RULE OF COURT, CUSTOM OR PRACTICE TO THE CONTRARY NOTWITHSTANDING.
TENANT AND ALL PERSONS CLAIMING UNDER TENANT HEREBY RELEASE LANDLORD FROM ANY
CLAIMS ARISING FROM ANY ERRORS OR DEFECTS WHATSOEVER IN ENTERING SUCH ACTION OR
JUDGMENT, IN CAUSING SUCH WRIT OF POSSESSION OR OTHER PROCESS TO BE ISSUED OR IN
ANY PROCEEDING THEREON OR CONCERNING THE SAME, AND HEREBY AGREE THAT NO WRIT OF
ERROR OR OBJECTION SHALL BE MADE OR TAKEN THERETO.
 
MASTER LAND AND BUILDING LEASE
 
 

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THIS WARRANT OF ATTORNEY SHALL NOT BE EXHAUSTED BY ONE EXERCISE, BUT JUDGMENT
MAY BE CONFESSED FROM TIME TO TIME, AS OFTEN AS OCCASION THEREFOR SHALL EXIST.
SUCH POWERS MAY BE EXERCISED DURING AS WELL AS AFTER THE EXPIRATION OR
TERMINATION OF THE TERM AND DURING AND AT ANY TIME AFTER ANY EXTENSION OR
RENEWAL OF THE TERM.
 
THIS SECTION 41.01(b) SETS FORTH A WARRANT OF ATTORNEY FOR AN ATTORNEY TO
CONFESS JUDGMENT AGAINST TENANT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS
JUDGMENT AGAINST TENANT, TENANT, FOLLOWING CONSULTATION WITH (OR DECISION NOT TO
CONSULT WITH) SEPARATE COUNSEL FOR TENANT AND WITH KNOWLEDGE OF THE LEGAL EFFECT
HEREOF, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVES UNCONDITIONALLY
ANY AND ALL RIGHTS TENANT HAS OR MAY HAVE TO PRE-JUDGMENT AND PRE-EXECUTION
NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND
LAWS OF THE UNITED STATES OF AMERICA, THE COMMONWEALTH OF PENNSYLVANIA, OR
ELSEWHERE.
 
TENANT SPECIFICALLY ACKNOWLEDGES THAT LANDLORD HAS RELIED ON THE WARRANT OF
ATTORNEY SET FORTH IN THIS SECTION 41.01(b) IN ENTERING INTO THIS LEASE WITH
TENANT AND THAT THE LANDLORD-TENANT RELATIONSHIP CREATED HEREBY IS COMMERCIAL IN
NATURE.
 
(c)       Tenant expressly agrees that any judgment, order or decree entered
against Tenant by or in any Court or Magistrate by virtue of the powers of
attorney contained in this Lease, or otherwise, shall be final, and releases to
Landlord and to any and all attorneys who may appear for Landlord all errors in
the said proceedings except those errors relating to the facts of the underlying
claim by Landlord against Tenant, and all liability therefor. Tenant expressly
waives the benefits of all laws, now or hereafter in force, exempting any goods
on the Premises, or elsewhere from distraint, levy or sale in any legal
proceedings taken by Landlord to enforce any rights under this Lease. Tenant
hereby waives all errors and imperfections in any proceedings brought hereunder
against Tenant. Tenant further waives the right of inquisition on any real
estate that may be levied upon to collect any amount which may become due under
the terms and conditions of this Lease, and does hereby voluntarily condemn the
same and authorizes the Prothonotary or Clerk of Court to issue a Writ of
Execution or other process upon Tenant’s voluntary condemnation, and further
agrees that the said real estate may be sold on a Writ of Execution or other
process. If proceedings shall be commenced by Landlord to recover possession
under the Acts of Assembly, either at the end of the term or earlier termination
of the Lease, or for nonpayment of rent or any other reason, Tenant specifically
waives all rights to notice under the Landlord and Tenant Act of 1951, 68 P.S.
§250.101 et seq., Act of April 6, 1951, P.L. 69, as same may be amended from
time
to time (the “Landlord and Tenant Act”), including, without limitation, the
right to the three months’ notice and/or the ten, fifteen or thirty days’ notice
required by the Landlord and Tenant Act.
 
 
 

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(d)       The right to enter judgment against Tenant and to enforce all of the
other provisions of this Lease hereinabove provided for may, at the option of
any assignee of this Lease, be exercised by any assignee of Landlord’s right,
title and interest in this Lease in his, her, its or their own name,
notwithstanding the fact that any or all assignment of the said right, title and
interest may not be executed and/or witnessed in accordance with the Act of
Assembly of May 28, 1715, 1 Sm. L. 90, and all supplements and amendments
thereto that have been or may hereafter be passed and Tenant hereby expressly
waives the requirements of said Act of Assembly and any and all laws regulating
the manner and/or form in which such assignment shall be executed and witnessed.
 
Section 41.02 Missouri Provisions. Without limiting the choice of law provision
set forth in Article 32, the following provisions shall apply to the extent that
the laws of the State of Missouri govern the interpretation or enforcement of
this Lease with respect to any Demised Properties located in the State of
Missouri:
 
(a)       THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE
ENFORCED BY THE PARTIES.
 
Section 41.03 New York Provisions. Without limiting the choice of law provision
set forth in Article 32 , the following provisions shall apply to the extent
that the laws of the State of New York govern the interpretation or enforcement
of this Lease with respect to any Demised Properties located in the State of New
York:
 
(a)       Tenant hereby waives the provisions of Section 227 of the Real
Property law of the State of New York and agrees that the provisions of Article
11  hereunder shall govern and control in lieu thereof.
 
(b)       The provisions set forth in Section 2.01(b) of this Lease are intended
to constitute “an express provision to the contrary” within the meaning of
Section 223-a of the New York Real Property Law.
 
[SIGNATURES FOLLOW ON NEXT PAGE]
 
 
MASTER LAND AND BUILDING LEASE
 
 

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IN WITNESS WHEREOF, the parties have executed this Lease to be effective as of
the date first above written.
 
THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY
THE PARTIES.
 

     
LANDLORD:
                  DBMFI LLC,         a Delaware limited liability company      
     
/s/ Courtney Ranger
   
By : /s/ Joshua Pack
 
First Witness
   
Name : Joshua Pack
       
Title : Vice President
 

 

Courtney Ranger        
Printed Name of First Witness
       

 

/s/ V.C. Grigorians        
Second Witness
       

 
Vivian Grigorians
       
Printed Name of Second Witness
   
 
 

 
 
[SIGNATURES CONTINUE ON NEXT PAGE]
 
 
MASTER LAND AND BUILDING LEASE
(Pool A)
Signature Page
 

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ACKNOWLEDGMENTS
 
STATE OF             Texas                             )
) ss.

COUNTY OF          Dallas                            )
 
On this        8th      of         Dec       , before me, the undersigned,
personally appeared Joshua Pack , personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument, the person, or
the entity upon behalf of which the person, acted, executed the instrument.
 

(NOTARIAL SEAL)
Brenda A. Keel                         
Notary Public

 
My co mission expires:
           08-10-2012                                    
 
Notary Public
State of Texas
BRENDA A. KEEL
MY COMMISSION EXPIRES
AUGUST 10, 2012

 
[ACKNOWLEDGMENTS CONTINUE ON NEXT PAGE]
 
 
 
 
 
MASTER LAND AND BUILDING LEASE
(Pool A)
Acknowledgment
 

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THE UNDERSIGNED TENANT ACKNOWLEDGES THAT IT FULLY UNDERSTANDS THE CONFESSIONS OF
JUDGMENT AND WAIVERS CONTAINED IN SECTIONS 15.02(c) AND 41.01 HEREOF AND
KNOWINGLY, INTENTIONALLY AND VOLUNTARILY ENTERS INTO THIS LEASE FULLY
COMPREHENDING THE RELINQUISHMENT OF CERTAIN RIGHTS BY VIRTUE OF SUCH CONFESSIONS
OF JUDGMENT AND WAIVERS.
 
THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY
THE PARTIES.
 

     
TENANT:
                 
MORGAN'S FOODS, INC.,
an Ohio corporation
           
/s/ Courtney Ranger
   
By : /s/ James Liquori
 
First Witness
   
Name : James Liquori
       
Title : President & COD
 

 

Courtney Ranger        
Printed Name of First Witness
       

 

/s/ V.C. Grigorians        
Second Witness
       

 
Vivian Grigorians
       
Printed Name of Second Witness
   
 
 

 
 
MASTER LAND AND BUILDING LEASE
(Pool A)
Signature Page
 

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STATE OF             Texas                             )
) ss.

COUNTY OF          Dallas                            )
 
On this    8     day of     December    , before me, the undersigned, personally
appeared   James Liquori   , personally known to me or proved to me on the basis
of satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument, the person, or
the entity upon behalf of which the person, acted, executed the instrument.
 
(NOTARIAL SEAL)
Notary Public
State of Texas
MEGAN FAITH MOYER
Notary Public
STATE OF TEXAS
My Commission Expires July 21, 2015
 
/s/ Megan Faith Moyer
Notary Public

My co mission expires:
           07-21-15                 
 
 
 
MASTER LAND AND BUILDING LEASE
(Pool A)
Acknowledgment
 

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SCHEDULE 1
 
DEFINED TERMS
 
The following capitalized terms used in this Lease have the following meanings.
“AAA ” means the American Arbitration Association or any successor thereto.
 
“Additional Rent” means any and all fees, expenses, taxes and charges of every
kind and nature arising in connection with or relating to the Demised Properties
(other than Base Rent), including (i) any and all taxes (including Real Estate
Taxes), fees, utility service charges, insurance premiums, and other costs, and
any amounts owed by Tenant under any indemnity to Landlord hereunder, including
as set forth in Article 10 and Article 37; (ii) all fees and penalties that may
accrue on any amounts due from Tenant hereunder if Tenant fails to pay such
amounts in a timely manner; (iii) all other Losses that Landlord may suffer or
incur in enforcing this Lease (whether or not any formal action is brought by
Landlord against Tenant) or in otherwise taking actions permitted under this
Lease following a Default (as hereinafter defined) by Tenant (including making
Repairs (as hereinafter defined) and fulfilling other obligations of Tenant as
provided in Article 7, and purchasing insurance required to be maintained by
Tenant under this Lease, as provided in Article 11), or as a result of, arising
out of, or in connection with any notice, request or other action by Tenant,
whether or not expressly permitted by the terms of this Lease; (iv) any and all
other sums that may become due, or costs and expenses that may be incurred by
Landlord, by reason of any Default or Event of Default under this Lease,
including any additional fees and costs, or any increased interest rate or other
charges imposed by any Landlord’s Lender by reason of such Default or Event of
Default (whether or not such Default or Event of Default is a default under any
agreements with any Landlord’s Lender); and (v) any and all costs of
maintaining, repairing and restoring the Demised Properties. In addition,
“Additional Rent” includes any rent or other income received by Tenant from any
subtenant of any Demised Property to the extent applicable to periods after the
expiration or termination of this Lease as to such Demised Property.
 
“Affiliate” means in relation to any Person, any other Person: (i) directly or
indirectly controlling, controlled by, or under common control with, the first
Person; (ii) directly or indirectly owning or holding five percent or more of
any equity interest in the first Person; or (iii) five percent or more of whose
voting stock or other equity interest is directly or indirectly owned or held by
the first Person. For purposes of this definition, “control” (including with
correlative meanings, the terms “controlling”, “controlled by” and “under common
control with”) means the possession directly or indirectly of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.
Without limiting the foregoing, the Affiliates of any Person that is an entity
shall include all natural persons who are officers, agents, directors, members,
partners, or employees of the entity Person.
 
“Allocated Base Rent Amount” is defined in Section 30.01  .
 
“Alteration Information” is defined in Article 6 .
 
“Alterations” is defined in Article 6 .
 
“Arbitrator” is defined in Section 31.01  .
 
“Arbitrator Appointment Notices” is defined in Section 31.01.
 
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-1

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“Base Date” is defined in Section 3.02(a) .
 
“Base Rent” is defined in Section 3.02(b) .
 
“Beneficial Owner” is defined in Article 39 .
 
“Building Equipment” is defined in the Recitals to this Lease.
 
“Business Day” means any day excluding (i) Saturday, (ii) Sunday, (iii) any day
that is a legal holiday under the Laws of the State of New York or the State of
California, and (iv) any day on which banking institutions located in the State
of New York or the State of California are generally not open for the conduct of
regular business.
 
“Code” is defined in Section 31.01  .
 
“Commencement Date” is defined in the first paragraph of this Lease.
“Consideration Period” is defined in Section 31.01  .
 
“Consolidated Net Worth” means the difference, in United States dollars, of
Tenant’s consolidated assets minus consolidated liabilities, determined in
accordance with GAAP.
 
“Consolidated Tangible Net Worth” means the difference, in United States
dollars, of (i) Tenant’s consolidated assets, less all intangible assets minus
(ii) Tenant’s consolidated liabilities, all as determined in accordance with
GAAP.
 
“CPI” means the Consumer Price Index for All Urban Consumers (CPI-U) for the
U.S. City Average for All Items (1982-84=100), published by the Bureau of Labor
Statistics of the U.S. Department of Labor. If the CPI is not published for any
month during the Lease Term, Landlord, in its reasonable discretion, shall
substitute a comparable index published by the Bureau of Labor Statistics of the
U.S. Department of Labor. If such an index is not published by the Bureau of
Labor Statistics, Landlord, in its reasonable discretion, shall select a
comparable index published by a nationally recognized responsible financial
periodical.
 
“De Minimis Amounts” means, with respect to any given level of Hazardous
Materials, that level or quantity of Hazardous Materials in any form or
combination of forms, the use, storage or release of which does not constitute a
violation of, or require regulation, remediation, reporting or monitoring under,
any Environmental Laws and is customarily employed in the ordinary course of, or
associated with, similar businesses located in the states in which the relevant
Demised Property is located.
 
“Deeds” has the meaning set forth in the Purchase Agreement.
 
“Default” is defined in Section 15.01  .
 
“Delinquent Party” has the meaning set forth Section 31.01  .
 
“Demised Properties” is defined in the Recitals to this Lease.
 
“Diligence Matters” is defined in Article 5.
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-2

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“Disclosures” is defined in Section 23.02 . “Environmental Claims” is defined in
Section 29.04 .
 
“Environmental Conditions” means the conditions of Environmental Media and the
conditions of any part of the Demised Properties, including building materials,
that affect or may affect Environmental Media.
 
“Environmental Laws” means any federal, state or local law, statute, ordinance,
permit condition, regulation or written policy pertaining to public or worker
health or safety, natural resources, climate changes, or the regulation
protection of the indoor or outdoor environment, the regulation or reporting of
Hazardous Materials, including the following: (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601
et seq. as amended (“ CERCLA”), the Solid Waste Disposal Act, 42 U.S.C.. 6901 et
seq. as amended (“RCRA”), the Federal Water Pollution Control Act of 1972, as
amended by the Clean Water Act of 1977, as amended, 33 U.S.C. 1251 et seq.; the
Toxic Substances Control Act of 1976, as amended, 15 U.S.C. 2601 et seq.; the
Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. 11001 et
seq.; the Clean Air Act of 1966, as amended by the Clean Air Act Amendments of
1990, 42 USC 7401 et seq.; the National Environmental Policy Act of 1970, as
amended, 42 USC 4321 et seq.; the Rivers and Harbors Act of 1899, as amended, 33
USC 401 et seq.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C.
Section 801 et seq. the Endangered Species Act of 1973, as amended, 16 U.S.C.
1531, et seq.; the Occupational Safety and Health Act of 1970, as amended 29
U.S.C. 651, et seq.; the Safe Drinking Water Act of 1974, as amended, 42 U.S.C.
300(f) et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Sections
1801  et seq. as amended, and all regulations, published governmental policies,
and administrative or judicial orders promulgated under or implementing or
enforcing said laws; (ii) all state or local laws which implement the foregoing
federal laws or which pertain to public health and safety, occupational health
and safety, natural resources or environmental protection, all as amended from
time to time, and all regulations, published governmental policies, and
administrative or judicial orders promulgated under the foregoing laws; (iii)
all federal and state common law, including but not limited to the common law of
public or private nuisance, trespass, negligence or strict liability, where such
common law pertains to public health and safety, occupational health and safety,
natural resources, environmental protection, or the use and enjoyment of
property, and all judicial orders promulgated under said laws; and (iv) all
comparable local laws and comparable laws of other jurisdictions.
 
“Environmental Media” means soil, fill material, or other geologic materials at
all depths, groundwater at all depths, surface water including storm water and
sewerage, indoor and outdoor air, and all living organisms, including all
animals and plants, whether such Environmental Media are located on or off the
Demised Properties.
 
“Estoppel Certificate” is defined in Article 24 . “Event of Default” is defined
in Section 15.01  . “Extension Notice” is defined in Section 2.02(a) .“Failing
Party” has the meaning set forth in Section 31.01  .
 
“First Option Extension Properties” is defined in Section 2.02(c) .
 
“First Option Period” is defined in Section 2.02(a).
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-3

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 “Fourth Option Extension Properties” is defined in Section 2.02(i) . “Fourth
Option Period” is defined in Section 2.02(a) .
 
“Franchise Agreement” means, with respect to any Demised Property, any
franchise, trademark and/or license agreement entered into by Tenant (or any
Affiliate of Tenant) and the applicable franchisor relating to such Demised
Property, as more particularly described on Schedule 2 attached hereto, in each
case as the same may be amended, restated, supplemented, replaced or otherwise
modified from time to time.
 
“GAAP” means those generally accepted accounting principles set forth from time
to time in statements and pronouncements of the Financial Accounting Standards
Board and in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants or those having other
substantial authoritative support in the United States of America and which are
applicable in the circumstances (and are not inconsistent with such Statements
and Opinions), as applied on a consistent basis.
 
“Governmental Authority” means (i) any international, foreign, federal, state,
county or municipal government, or political subdivision thereof, (ii) any
governmental or quasi-governmental agency, authority, board, bureau, commission,
department, instrumentality or public body, or (iii) any court, administrative
tribunal or public utility.
 
“Hazardous Materials” means any ignitable, reactive, explosive, corrosive,
carcinogenic, mutagenic, toxic or radioactive material, whether virgin material,
secondary material, by-product, waste or recycled material, defined, regulated
or designated as a contaminant, pollutant, hazardous or toxic substance,
material, waste, contaminant or pollutant under any Environmental Laws or any
other federal, state or local law, statute, regulation, ordinance, or
governmental policy presently in effect or as amended or promulgated in the
future, and shall specifically include: (i) those materials included within the
definitions of “hazardous substances,” “extremely hazardous substances,”
“hazardous materials,” “toxic substances” “toxic pollutants,” “hazardous air
pollutants” “toxic air contaminants,” “solid waste,” “hazardous waste,”
“pollutants,” contaminants” or similar categories under any Environmental Laws;
(ii) those materials that create liability under common law theories of public
or private nuisance, negligence, trespass or strict liability; and (iii)
specifically including any material, waste or substance that contains: (A)
petroleum or petroleum derivatives byproducts, including crude oil and any
fraction thereof and waste oil; (B) asbestos; (C) polychlorinated biphenyls; (D)
formaldehyde; and (E) radon. If not already defined as a Hazardous Material
under any of the foregoing terms, mold and fungi of any type or concentration
shall be deemed a Hazardous Material hereunder if present in any Improvements
under such conditions or circumstance as to represent blight or any unsanitary
condition or that impairs the use of any Improvements or portion thereof for its
intended uses.
 
“Improvements” is defined in the Recitals to this Lease.
 
“Initial Adjustment Dates” is defined in Section 3.02(a) .
 
“Initial Base Rent Escalation” is defined in Section 3.02(a) .
 
“Insurance Premium Additional Rent” is defined in Section 10.08 .

“Insurance Premium Additional Rent Trigger” is defined in Section 10.08.
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-4

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“Land” is defined in the Recitals to this Lease.
 
“Landlord” is defined in the first paragraph of this Lease.
 
“Landlord Assignment Lease Agreement” is defined in Section 30.01  .
 
“Landlord Award Amount” means the amount of the net award actually received by
Landlord for any taking of any portion of any Demised Property.
 
“Landlord Parties” means, collectively, (i) Landlord, Affiliates of Landlord,
Landlord’s Lenders and any Landlord’s Mortgagee, and (ii) any members, partners,
shareholders, officers, directors, employees, agents, attorneys, contractors,
affiliates, heirs, successors or assigns of any of Landlord, Affiliates of
Landlord, Landlord’s Lenders, or any Landlord’s Mortgagee.
 
“Landlord’s Account” is defined in Section 3.01  .
 
“Landlord’s Lenders” means any persons or entities providing financing to
Landlord or Affiliates of Landlord.
 
“Landlord’s Mortgagee” means any Persons holding a mortgage, deed of trust, deed
to secure debt or similar instrument encumbering Landlord’s interest in the
Demised Properties or portion thereof (whether or not any such Person is also a
Landlord’s Lender).
 
“Late Fee” is defined in Section 15.06 .
 
“Law” means all international, foreign, federal, state and local statutes,
treaties, rules, regulations, ordinances, codes, directives, orders, or written
policies issued pursuant thereto, and published administrative or judicial
precedents.
 
“Lease” is defined in the first paragraph of this agreement. “Lease Term” is
defined in Section 2.01(a) .
 
“Leasehold Mortgage” means any leasehold deed of trust, mortgage, deed to secure
debt, assignment of leases and rents, assignment, security agreement, or other
security document securing financing from a lender of Tenant and encumbering
Tenant’s leasehold interest in any Demised Property.
 
“Liens” means liens, security interests, charges and encumbrances. “Losing
Party” has the meaning set forth in Section 31.01  .
 
“Losses” means all losses, claims, demands, actions, causes of action,
settlements, obligations, duties, indebtedness, debts, controversies, remedies,
choses in action, liabilities, costs, penalties, fines, damages, injuries,
judgments, forfeitures, or expenses (including reasonable attorneys’,
consultant, testing and investigation and expert fees and court costs), whether
known or unknown, and whether liquidated or unliquidated.
 
“Minor Project” means a non-structural minor maintenance or repair project
and/or “cosmetic refresh” project involving only painting, carpeting, floor
covering and installation of moveable replacement Restaurant Equipment, unless
in either case governmental permits are required or the costs exceed, in the
aggregate, for any affected Demised Property, US$25,000.
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-5

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“Notice Date” has the meaning set forth in Section 31.01  .
 
“Option Period” is defined in Section 2.02(a) .
 
“Original Lease Term” is defined in Section 2.01(a) .
 
“Other Parties” is defined in Section 29.02 .
 
“PE First Option” is defined in Section 2.02(c) .
 
“PE First Option Period” is defined in Section 2.02(c) .
 
“PE Fourth Option” is defined in Section 2.02(i) .
 
“PE Fourth Option Period” is defined in Section 2.02(i) .
 
“PE Option” is defined in Section 3.02(a) .
 
“PE Option Base Rent” is defined in Section 3.02(a) .
 
“PE Option Extension Properties” is defined in Section 3.02(a) .
 
“PE Option Period” is defined in Section 3.02(a) .
 
“PE Second Option” is defined in Section 2.02(e) .
 
“PE Second Option Period” is defined in Section 2.02(e) .
 
“PE Third Option” is defined in Section 2.02(g) .
 
“PE Third Option Period” is defined in Section 2.02(g) .
 
“Permitted Liens” means (i) Liens to secure claims for labor, material or
supplies in respect of obligations not overdue; (ii) Liens in respect of
judgments or awards that have been in force for less than the applicable period
for making an appeal so long as execution is not levied thereunder or in respect
of which Tenant shall at the time in good faith be prosecuting an appeal or
proceedings for review and in respect of which a stay of execution shall have
been obtained pending such appeal or review; (iii) Liens of carriers,
warehousemen, mechanics and materialmen and other like Liens that have been in
existence less than 120 days after the date of creation thereof in respect of
obligations not overdue; and (iv) purchase money Liens on Restaurant Equipment
to secure purchase money indebtedness incurred in connection with the
acquisition of such Restaurant Equipment, which Liens cover only the Restaurant
Equipment so acquired.
 
“Permitted Restaurant Brand” is defined in Section 4.01.
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-6

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“Person” means an individual, corporation, partnership, joint venture,
association, joint-stock company, trust, estate, limited liability company,
non-incorporated organization or association, or any other entity, any
Government Authority or any agency or political subdivision thereof.
 
“Petition” means a petition in bankruptcy (including any such petition seeking
any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief) under the Bankruptcy Code of the United States of
America, or under any other present or future federal or state statute, law or
regulation of similar intent or application.
 
“Purchase Agreement” means that certain Purchase and Sale Agreement and Joint
Escrow Instructions, by and between Landlord and Tenant.
 
“RE Taxes Additional Rent” is defined in Section 3.03(b) .
 
“RE Taxes Additional Rent Trigger” is defined in Section 3.03(b) .
 
“Real Estate Taxes” means (i) all taxes and general and special assessments and
other impositions in lieu thereof, or as a supplement thereto and any other tax
measured by the value of real property and assessed on a uniform basis against
the owners of real property, including any substitution in whole or in part
therefor due to a future change in the method of taxation, and including any
increase in any of the foregoing resulting from any sale, exchange, mortgage,
encumbrance, or other disposition by Landlord, in each case assessed against, or
allocable or attributable to, any of the Demised Properties and accruing during
or prior to the Lease Term, and (ii) all transfer taxes imposed in connection
with this Lease.
 
“Release” means any active or passive spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping or
disposing into any Environmental Media. For the purposes of this Lease,
“Release” also includes any threatened Release.
 
“Remedial Activities” means any investigation, work plan preparation removal,
repair, cleanup, abatement, remediation, monitored natural attenuation, natural
resource damage assessment and restoration, closure, post-closure,
detoxification or remedial activity of any kind whatsoever necessary to address
Environmental Conditions.
 
“REMICs” is defined in Section 31.01  .
 
“Rent” means Base Rent plus Additional Rent.
 
“Repairs” means all replacements, renewals, alterations, additions and
betterments necessary for Tenant to properly maintain each Demised Property in
good order and condition, safe and fit for use as a Kentucky Fried Chicken or
KFC.
 
“Replaced Property” is defined in Section 31.01  .
 
“Replacement Property” is defined in Section 31.01  .
 
“Required Alterations” is defined in Article 6 .
 
“Restaurant Equipment” is defined in the Recitals to this Lease.
 
“Restaurant Equipment Schedule” is defined in Section 20.04.
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-7

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“ Restoration Work” is defined in Section 11.01  .
 
“ Second Option Extension Properties” is defined in Section 2.02(e) .
 
“ Second Option Period” is defined in Section 2.02(a) .
 
“ SNDA” is defined in Section 23.01  .
 
“ St. Louis Properties” means the three Demised Properties more fully described
on Exhibit G .
 
“ Subordination and Attornment Provisions” is defined in Section 22.01(b) .
 
“ Subsequent Adjustment Dates” is defined in Section 3.02(a) .
 
“ Subsequent Base Rent Escalation” is defined in Section 3.02(a) .
 
“ Tenant” is defined in the first paragraph of this Lease.
 
“ Tenant’s Lender” means any lender of Tenant that holds a Leasehold Mortgage.
 
“ Third Option Extension Properties” is defined in Section 2.02(g) .
 
“ Third Option Period” is defined in Section 2.02(a) .
 
“ Transaction Documents” means, collectively, this Lease, the Purchase
Agreement, and the Deeds, each of which are dated of even date herewith, and any
other agreements entered into by and between Landlord and Tenant regarding any
of the foregoing or the Demised Properties.
 
“ Transfer Parties” is defined in Section 23.02 .
 
“ Unreimbursed Costs” means any fees or other costs that are not reimbursed or
subject to reimbursement pursuant to applicable Law or regulations, insurance,
contractual indemnities or any other means.
 
“ Use” means the receipt, handling, generation, storage, treatment, recycling,
disposal, transfer, transportation, introduction, or incorporation into, on,
about, under or from the Demised Properties.
 
“ Winning Party” has the meaning set forth in Section 31.01  .
 
“ Yum! National Brand” means a restaurant franchise brand operated by Yum!
Brands, Inc. that has a minimum of fifty (50) units operating nationally and
aggregate sales in excess of $50,000,000.
 
MASTER LAND AND BUILDING LEASE
 
SCHEDULE 1-8

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SCHEDULE 2
 
LIST OF FRANCHISE AGREEMENTS
 

  UNIT #   UNIT NAME
 BEGINNING
DATE
 EXPIRATION
DATE
  PARTIES
01
Boardman
2/14/1999
2/14/2019
KFC Corporation and Morgan's Restaurants of Ohio, Inc.
08
Austintown
6/1/1997
6/1/2017
KFC Corporation and Morgan's Restaurants of Ohio, Inc.
16
Alliance
6/1/1997
6/1/2017
KFC Corporation and Morgan's Restaurants of Ohio, Inc.
25
Weirton
6/1/1997
6/1/2017
KFC Corporation and Morgan's Restaurants of West Virginia, Inc.
30
Irwin
6/1/1997
6/1/2017
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
36
12th St.
6/1/1997
6/1/2017
KFC Corporation and GRNN, Inc. assigned to MRPA on 07/24/98
50
Coraopolis
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
51
Whitehall
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
55
Homestead
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
59
Bellevue
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
61
Harmarville
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
65
West View
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
66
Braddock Hills
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.
91
Lakewood-TB
4/4/2000
4/4/2020
Taco Bell Corp. and Morgan's Tacos of Pennsylvania, Inc.
91
Lakewood
7/2/2000
7/2/2020
KFC Corporation and Morgan's Restaurants of New York, Inc.
324
Farmington
7/13/1999
7/13/2019
KFC Corporation and Morgan's Foods of Missouri, Inc.
352
Moundsville
7/13/1999
7/13/2019
KFC Corporation and Morgan's Restaurants of West Virginia, Inc.
379
Kittanning-TB
7/14/1999
7/14/2019
Taco Bell Corp. and Morgan's Tacos of Pennsylvania, Inc.
379
Kittanning
12/30/1999
12/30/2019
KFC Corporation and Morgan's Restaurants of Pennsylvania, Inc.

 
 
MASTER LAND AND BUILDING LEASE
SCHEDULE 2
 

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EXHIBIT A
 
LOCATION/ADDRESS/LEGAL DESCRIPTION OF DEMISED PROPERTIES
 
Unit No.
Address
City
ST
1
6636 South Avenue
Youngstown
OH
8
4642 Mahoning Avenue
Youngstown
OH
16
825 East State Street
Alliance
OH
25
4015 Main St.
Weirton
WV
30
9390 Route 30
Irwin
PA
36
2656 W. 12th Street
Erie
PA
50
6901 University Blvd.
Moon Township
PA
51
5130 Clairton Blvd.
Pittsburgh
PA
55
222 West 8th Avenue
Homestead
PA
59
4306 Ohio River Blvd.
Pittsburgh
PA
61
1 Landings Drive
Pittsburgh
PA
65
804 W. View Park Drive
West View
PA
66
278 Yost Blvd.
Pittsburgh
PA
91
270 E. Fairmount Ave.
Lakewood
NY
324
Highway 32, Route 67
Farmington
MO
352
122 N. Lafayette Avenue
Moundsville
WV
379
14 Hilltop Plaza
Kittanning
PA

 
LEGAL DESCRIPTIONS FOLLOW
 
 
 
MASTER LAND AND BUILDING LEASE
Exhibit A
 

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Boardman (1) - 6636 S. Ave., Youngstown, OH
 
Situated in the Township of Boardman, County of Mahoning, State of Ohio,
described as follows:
 
Situate in the Township of Boardman, County of Mahoning, State of Ohio, and
known as being Lot No. 1 in the P.B.F. Plat No. 1, as recorded in Volume 95,
Page 249 of Mahoning County Plat Records, and being further described as
follows:
 
Beginning at a point on the westerly right of way line of South Avenue, said
point being the Northeasterly corner of said Lot No. 1;
 
thence along said right of way line, South 02 deg. 28’ 00" West a distance of
109.61 feet to a point at a curve to the right having a chord bearing of South
48 deg. 02’ 49” West, 42.85 feet and a radius of 30.00 feet;
 
thence southwesterly along said curve an arc distance of 47.73 feet to a point;
 
thence along the southerly line of said Lot 1, North 86 deg. 22’ 22" West a
distance of 172.23 feet to an iron pin set;
 
thence along the westerly line of said lot 1, North 03 deg. 37’ 38" East a
distance of 140.20 feet to an iron pin set;
 
thence along the northerly line of said Lot 1, South 86 deg. 22’ 22" East a
distance of 200.00 feet to the point of beginning, and containing within said
bounds 0.644 acres of land.
 
 
Boardman (1)
 
 

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

 
 
Austintown (8) - 4642 Mahoning Ave., Youngstown, OH  
 
Parcel No. 1
 
Situate in the Township of Austintown, County of Mahoning, State of Ohio, and
being known as Lot No. 16 in Mahoning Heights Plat as recorded in Volume 19 of
Plats, Page 34 of Mahoning County Records, said lot has a frontage of 60.76 feet
on the Northerly curved side of Mahoning Avenue, and extends back on the
Westerly line 341.33 feet, said Westerly line being also the Easterly line of
Cambrel Avenue, and on the Easterly line 331.63 feet, having a rear line of 60
feet, as appears by said plat.
 
Parcel No. 2
 
Situate in the Township of Austintown, County of Mahoning, State of Ohio, and
known as being Sublot Nos. 16 and 17 in Mahoning Heights Plat No. 2, Subdivision
of a part of Austintown Township Great Lot No. 19, as shown by the recorded plat
of said subdivision in Volume 19 of Maps, Page 34 of Mahoning County Records,
and together forming a parcel of land having a frontage of 101.26 feet on the
Northwesterly side of Mahoning Avenue Extension, formerly The Youngstown
Austintown Road, and extending back 315.47 feet on the Easterly line 331.63 feet
on the Westerly line, and having a rear line of 100 feet, as appears by said
plat.
 
And known as being Lot No. 18 in a replat of Lots 16, 17 and 18, Mahoning
Heights Plat, as shown by the Replat recorded in Volume 97, Page 93 of Mahoning
County Plat Records.
 
 
Austintown (8)
 
 

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

 
 
Alliance (16) - 825 East State St., Alliance, OH
 
Known as part of Out Lot No. 446 and further know as part of Northeast Quarter
of Section No. 1 in the original Washington Township, bounded and described as
follows: Beginning at a monument at the Northwest corner of the Northeast
Quarter of Section No. 1; thence S 89° 59' 36" E 284.50 feet along the quarter
section line and the centerline of East State St. to the True Place of
Beginning;
 
thence S 89° 59' 36" E 160.00 feet along the quarter section line and the
centerline of East State St. to a point;
 
thence S 0° 32' 00" E passing over an iron pin at 55 feet, a distance of 319.00
feet to an iron pin; thence N 89° 59' 36" W 160.00 feet to an iron pin;
 
thence N 0° 32' 00" W passing over an iron pin at 264.00 feet, a distance of
319.00 feet to the place of beginning.
 
The above parcel of land contains 1.1717 acres of land, of which 0.2020 acre is
within the road right of way.
 
This description based on survey by James R. Allen, Reg. Survey No. 4616 dated
April, 1990.
 
Together with all rights of ways, easements and grants contained in Deed
recorded in OR Volume 1038, Page 444, Stark County Records.
 
 
Alliance (16)
 
 

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

 
 
Weirton (25) - 4015 Main St., Weirton, WV
 
Parcel No. 1: Situate in Cross Creek District (now Weirton District), Brooke
County, State of West Virginia, known and designated as Lot number seventeen
(17) Heaslett Subdivision Plan of Lots, also known as 4006 Washington Street,
Weirton, West Virginia.
 
Parcel No. 2: All those certain lots or parcels of land known and designated as
Lots numbered two (2), three (3), four (4) and five (5), of the Heaslett
Subdivision Plan of Lots, lying and being in the District of Cross Creek, County
of Brooke, and the State of West Virginia, said plan of lots being of record in
the Office of the Clerk of the County Court of Brooke County, West Virginia, in
Deed Book #40, at page 213, to which Deed reference is hereby made.
 
The above real estate is the same as conveyed to Morgan's Weirton Foods, Inc., a
corporation from Samuel N. Kusic, Esq., individually, and in trust under a
Declaration of Trust executed by the Grantor and Leslie W. Kusic, his wife, by
deed dated July 2, 1987, and recorded in the Office of the Clerk of the County
Commission of Brooke County, West Virginia, in Deed Book No. 243, at Page 387.
 
 
(Weirton (25)
 
 

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Irwin (30) - 9390 Route 30, Irwin, PA
 
All that certain part or parcel of ground situate in the Borough of Irwin,
County of Westmoreland and Commonwealth of Pennsylvania, consisting of 2,398
square feet, said parcel being set forth on the revised plan of subdivision
prepared for Theodore Sarniak III and Herman F. Skatell recorded in the
Recorder’s Office of Westmoreland County on September 15. 1988 in Plan Book
Volume 89, page 1640, said revised plan of subdivision revising the original
subdivision recorded in Plan Book Volume 89. Page 1338 in the Recorder’s Office
of Westmoreland county, said parcel being more fully described as follows:
 
BEGINNING at a point in the southerly right of way line of U.S. Route
30.-Lincoln Highway. said point of beginning being North 62° 43’ West, a
distance of 75.00 feet from corner of land now or formerly of the Irwin Bank and
Trust Company, and Parcel B of the original subdivision recorded in Plan Book
Volume 89 page 1338; thence from said point of beginning and along the original
dividing line of Parcels A and B of the original subdivision recorded in Plan
Book Volume 89. page 1338 South 27° 27’ West 160.45 feet to a point; thence
through Parcel B of the aforementioned original subdivision, South 66° 52’ East
15.04 feet to a point; thence continuing through Parcel B of the aforementioned
original subdivision North 27° 27’ East 159.32 feet to a point in the southerly
right of way line of U. S. Route 30-Lincoln Highway; thence by said right of way
line, parallel to and 50 feet distant from the center line thereof. North 62°
43’ West 15.00 feet to a point, the place of beginning.
 
AND ALSO BEING
 
All that certain part or parcel of ground situate in the Borough of Irwin,
County of Westmoreland and Commonwealth of Pennsylvania, consisting of 2,398
square feet, said parcel being set forth on the revised plan of subdivision
prepared for Theodore Sarniak III and Herman F. Skatell recorded in the
Recorder’s Office of Westmoreland County on September 15. 1988 in Plan Book
Volume 89, page 1640, said revised plan of subdivision revising the original
subdivision recorded in Plan Book Volume 89. Page 1338 in the Recorder’s Office
of Westmoreland county, said parcel being more fully described as follows:
 
BEGINNING at a point in the southerly right of way line of U.S. Route
30.-Lincoln Highway. said point of beginning being North 62° 43’ West, a
distance of 75.00 feet from corner of land now or formerly of the Irwin Bank and
Trust Company, and land of which this was a part; thence from said point of
beginning and through land of which this was a part, now designated Parcel B’
South 27° 27’ West, a distance of 180.51 feet to a point in line of land now or
formerly of George K. Basel; thence by said land of George K. Basel North 66°
52’ West; a distance of 149.85 feet to a point on the Easterly right of way line
of Caruthers Lane; thence by said right of way line North 28° 01’ East. a
distance of 144.60 feet to a point; thence by same North 53° 36’ 08” East, a
distance of 52.175 feet to a point in the Southerly right of way line of U.S.
Route 30; thence by said right of way line, parallel to and 50 feet distant from
the centerline thereof south 62° 43’ East, a distance of 125.00 feet to a point,
the place of beginning.
 
 
Irwin (30)
 
 

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W. 12th    (36) - 2656 W. 12th Street, Erie, PA
 
ALL THAT certain lot or piece of land situate in the Township of Millcreek,
County of Erie and Commonwealth of Pennsylvania, bounded and described as
follows:
 
BEGINNING at a point on the Northerly line of West 12th Street, 100 feet wide,
distance eastwardly along the said northerly line of West 12th street, 111.10
feet from the easterly line of Lowell Avenue, 50 feet wide; thence from said
point of Beginning along Lots Nos. 14, 13, 12, 11, 10, and 9 in Steens
Subdivision Recorded in the Office of the Recorder of Deeds of Erie County,
Pennsylvania in Plan Book Vol. 2, page 21, N. 26°33'30" W., a distance of
335.49' to the Southerly right of way line of 11th Street if extended; thence N.
63°12'30" E. a distance of 131.19' to a point; thence S. 26°33'00" E., a
distance of 335.55' to a point on the northerly line of West 12th Street; thence
along the northerly line of West 12th Street. S. 63°14'00" W., a distance of
131.14' to the point of beginning.
 
 
W. 12th (36)
 
 

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Corapolis (50) - 6901 University Blvd., Moon Township, PA
 
BEGINNING AT A POINT OF COMPOUND CURVE ON THE SOUTHEASTERLY SIDE OF NARROWS RUN
ROAD (120 FEET WIDE) WHICH POINT OF TANGENT IS ASURED EASTWARDLY ON THE ARC OF A
CIRCLE CURVING TO THE RIGHT CONNECTING THE SAID SOUTHEASTERLY SIDE OF NARROWS
RUN ROAD AND THE NORTHEASTERLY SIDE OF BEAVER GRADE ROAD, FORMERLY KNOWN AS
BROADHEAD ROAD, HAVING A RADIUS OF 25. 00 FEET, THE ARC DISTANCE OF 34.29 FEET
FROM A POINT OF CURVE ON THE NORTHEASTERLY SIDE OF BEAVER GRADE ROAD, FORMERLY
KNOWN AS BROAD HEAD ROAD; THENCE EXTENDING ALONG THE SOUTHEASTERLY SIDE OF
NARROWS RUN ROAD, THE FOLLOWING COURSES AND DISTANCES:
 
(1) ON THE ARC OF A CIRCLE TO THE RIGHT HAVING A RADIUS OF 759.02 FEET TO A
POINT; THENCE EXTENDING SOUTH 27 DEG. 35' 15" EAST 5.85 FEET TO A POINT; THENCE
EXTENDING SOUTH 49 DEG. 30' 00" EAST 129.22 FEET TO A POINT IN THE CENTER LINE
OF OLD NARROWS RUN ROAD; THENCE EXPENDING ALONG SAME, SOUTH 33 DEG. 15' 00" WEST
183 FEET TO A POINT; THENCE PASSING THROUGH THE BED OF OLD NARROWS RUN ROAD,
NORTH 56 DES. 45' 00" WEST 16.50 FEET TO A POINT ON THE NORTHWESTERLY SIDE OF
OLD NARROWS RUN ROAD; THENCE EXTENDING ALONG SAME, THE TWO FOLLOWING COURSES AND
DISTANCES: (1) SOUTH 33 DEG. 15' 00" WEST 19.52 FEET TO A POINT; AND (2) NORTH
28 DEG. 41' 00" WEST 9.73 FEET TO A POINT OF CURVE; THENCE EXTENDING ON THE ARC
OF A CIRCLE CURVING TO THE RIGHT CONNECTING THE SAID NORTHWESTERLY SIDE OF OLD
NARROWS RUN ROAD AND THE NORTHEASTERLY SIDE OF BEAVER GRADE ROAD, FORMERLY KNOWN
AS BROADHEAD ROAD, HAVING A RADIUS OF 51.99 FEET, THE ARC DISTANCE OF 92.51 FEET
TO A POINT OF TANGENT ON THE SAID NORTHEASTERLY SIDE OF BEAVER GRADE ROAD,
FORMERLY KNOWN AS BROADHEAD ROAD; THENCE EXTENDING ALONG SAME, THE FOLLOWING
THREE COURSES AND DISTANCES (1) NORTH 23 DES. 38' 00" WEST 36.00 FEET TO A
POINT; (2) NORTH 66 DEG. 22' 00" EAST 10.00 FEET TO A POINT (3) NORTH 23 DEG.
38' 00" WEST 93.90 FEET TO A POINT OF CURVE; THENCE EASTWARDLY ON THE ARC OF A
CIRCLE TO THE RIGHT CONNECTING THE SAID NORTHEASTERLY SIDE OF BEAVER GRADE ROAD
FORMERLY KNOWN AS BROADHEAD ROAD, AND THE SOUTHEASTERLY SIDE OF NARROWS RUN
ROAD, HAVING A RADIUS OF 25.00 FEET, THE ARC DISTANCE OF 34.29 FEET TO A POINT
OF COMPOUND CURVE ON THE SAID SOUTHEASTERLY SIDE OF NARROWS RUN ROAD, BEING THE
FIRST MENTIONED POINT AND PLACE OF BEGINNING.
 
Corapolis (50)
 
 

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Whitehall (51) - 5130 Clairton Blvd., Pittsburgh, PA Premises A:
 
All THAT CERTAIN lot or piece of ground, situate in the Borough of Baldwin,
County of Allegheny and Commonwealth of Pennsylvania, bounded and described as
follows:
 
BEGINNING at a point on the Southerly line of Leech Road, 40’ wide, at a point
common to the herein described property and the Northwest corner of property,
now or formerly of Anthony Zebert, et ux, as recorded in the Recorder’s Office
of Allegheny County In Deed Book Volume 3228, page 113; thence from said point
of beginning, along the Westerly line of said last mentioned property of Anthony
Zebert, at ux, South 16 degrees 27 minutes East, 120 feet to a point on property
now or formerly of Dick Drabbe and Edith B. Drabbe, his wife; thence along some
South 73 degrees 33 minutes West, 135 feet to a point on other property of
grantors herein; thence through and along same, North 16 degrees 27 minutes
West, 120 feet to a point on the Southerly line of Leech Road; thence along the
Southerly side of Leech Road, North 73 degrees 33 minutes East, 135 feet to
point of beginning.
 
EXCEPTING AND RESERVING however, to the grantors, their heirs and assigns a 7
foot wide easement for a sanitary sewer, as the same now exists, for the benefit
of adjoining property now or formerly Dick Drabbe, et ux., on the South running
Northwardly through said premises to Leech Drive with the right in the grantors,
their heirs and assigns to relocate the same elsewhere on the premises.
 
Premises B:
 
All THAT CERTAIN lot or piece of ground, situate in the Borough of Baldwin,
County of Allegheny and Commonwealth of Pennsylvania, bounded and described as
follows, to-wit:
 
BEGINNING at a point in the Westerly line of Clairton Boulevard, 60 feet wide,
said point being located South 15 degrees 56 minutes East, along said line of
said Boulevard, a distance of 329.55 feet from the Southerly line of property of
Olivia M. Wightman; thence Southwardly along said Westerly line of Clairton
Boulevard by an arc of a circle having a radius of 985 feet and curving to the
left for a distance of 105.10 feet to land now or formerly of Myna Cibek; thence
along said land now or formerly of Myna Cibek, South 73 degrees 33 minutes West,
a distance of 64.58 feet to land now or formerly of Carl M. Wolfe and Luigi M.
Cecala: thence along land now or formerly of Carl M. Wolfe and Luigi M. Cecala,
North 16 degrees 27 minutes West, for a distance of 120 feet to the Southerly
line of Leech Drive, 40 feet wide; thence along the Southerly line of Leech
Drive, North 73 degrees 33 minutes East, for a distance of 44.97 feet to a
point; thence continuing along the Southerly line of Leech Drive by an arc of a
circle having a radius of 14.90 feet and curving to the right for a distance of
23.54 feet to the point and place of beginning.
 
Whitehall (51)
 
 

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Homestead (55) - 222 West 8th St., Homestead, PA
 
ALL THAT CERTAIN lot or piece of ground situate in the Borough of West
Homestead, County of Allegheny and State of Pennsylvania, BEING Lot Nos. 17,18,
19, 20, 21,22, 23, 24 and 25 in the Kennedy and West Plan of Lots recorded in
the Recorder of Deeds Office of Allegheny County, in Plan Book Volume 15, page
30, bounded and described as follows to wit:
 
BEGINNING ON THE Southerly side of West Eight Avenue, 80 feet wide at a Hub and
Tack on the dividing line between Lot Nos. 25 and 26 in said Plan; thence from
said point of beginning and along the southerly right of way side of West Eighth
Avenue North 51º11'00" East, a distance of 225.00 feet to a Tait Capped Iron Pin
on the dividing line between Lot Numbers 17 and 16 in said plan; thence along
said dividing line South 38º49'00" East, a distance of 110.00 feet to a point on
the Northerly side of Hazel Way, 20 feet wide, thence along said Hazel Way,
South 51º11'00" West, a distance of 225.00 feet to a Hub and Tack on the
dividing line between Lot. Nos. 25 and 26 in said plan; thence along said
dividing line, North 38º49'00" West, a distance of 110.00 feet to a point it the
place of beginning.
 
Homestead (55)
 
 

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Bellevue (59) - 4306 Ohio River Blvd., Pittsburgh, PA
 
All that certain parcel of land situate in the Borough of Bellevue, County of
Allegheny and Commonwealth of Pennsylvania, being bounded and described as
follows:
 
BEGINNING at an iron pin at the intersection of the northerly side of Ohio River
Boulevard (Legislative Route 652), 60.00 feet wide, and the westerly side of
Shiloh Avenue, 50.00 feet wide; thence from side point of beginning by the
northerly side of Ohio River Boulevard North 45° 03' 53" West a distance of 233.
34 feet to an iron pin; thence through former Riverview Avenue, as vacated by
the County of Allegheny in 1930, and Lot No. 14 in the Thomas Bakewell Plan of
Lots as recorded in the Recorder of Deeds Office of Allegheny County,
Pennsylvania, in Plan Book Volume 4, page 37, by the line dividing lands now or
formerly of Boron Oil Company and lands now or formerly of Robert K. Christy
North 46° 44' 00" East a distance of 152.60 feet to an iron pipe; thence through
Lots No.'s 14 and 15 in said Thomas Bakewell Plan of Lots by the line dividing
lands now or formerly of Boron Oil Company and land now or formerly of William
R. Richert South 43° 45' 00" East a distance of 134.23 feet to an iron pin;
thence continuing by said dividing line through Lot No. 25 in Thomas Bakewell
Plan of Lots South 46° 44' 00" West a distance of 26.00 feet to a pipe; thence
by and through same South 43° 45' 00" East a distance of 99.00 feet to a pipe;
thence by the Westerly side of Shiloh Avenue South 46° 44' 00" West a distance
of 121.24 feet to the iron pin at the point of BEGINNING.
 
Bellevue (59)
 
 

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Harmarville (61) - 1 Landings Dr., Pittsburgh, PA
 
ALL THAT CERTAIN PARCEL OF LAND SITUATE IN THE TOWNSHIP OF HARMAR, COUNTY OF
ALLEGHENY AND COMMONWEALTH OF PENNSYLVANIA BEING MORE PARTICULARLY BOUND AND
DESCRIBED AS FOLLOWS AND BEING LOT NO. 2 OF THE HARMAR LANDINGS PLAN NO. 2A, AS
RECORDED IN PLAN BOOK VOLUME 158, PAGES 127 TO 132 INCLUSIVE:
 
BEGINNING AT A POINT ON THE SOUTHERLY SIDE OF LANDINGS DRIVE (50 FT. STREET) AT
THE DIVIDING LINE OF LOT NO. 2 AND PARCEL "D" IN THE HARMAR LANDINGS PLAN NO. 2A
AS RECORDED; THENCE ALONG SAID DIVIDING LINE S 25 DEG. 45' 00" E, 202.29 FEET TO
A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF THE PENNSYLVANIA TURNPIKE
COMMISSION; THENCE ALONG LAND OF SAID PENNSYLVANIA TURNPIKE COMMISSION S 63 DEG.
33' 42" W, 175.42 FEET TO A POINT ON THE DIVIDING LINE OF LOT NO. 2 AND LOT NO.
1 AS RECORDED IN HARMAR LANDINGS PLAN NO. 2 IN PLAN BOOK VOLUME 157, PAGES 164
TO 169; THENCE ALONG SAID DIVIDING LINE N. 24 DEG. 22' 45" W, 204.59 FEET TO A
POINT IN A CURVE ON THE SOUTHERLY SIDE OF THE AFOREMENTIONED LANDINGS DRIVE IN
AN EASTERLY DIRECTION BY A CURVE TO THE LEFT HAVING A RADIUS OF 460.185 FEET,
FOR AN ARC DISTANCE OF 11.01 FEET TO A POINT; THENCE ALONG SAME N 64 DEG. 15'
00" E, 159.50 FEET TO THE POINT OF BEGINNING.
 
Harmarville (61)
 
 

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W. View (65) - 804 W. View Park Dr., West View, PA
 
ALL that certain tract of land situate in the Borough of West View, Allegheny
County, Pennsylvania, designated as Lot No. 7 in the West View Associates G.P.F.
Associates Plan of Lots recorded in Plan Book Volume 118, pages 33-34-35 in the
Recorder’s Office of Allegheny County, Pennsylvania, being more particularly
bounded and described as follows, to-wit:
 
BEGINNING at a point on the northerly line of West View Park Drive, a 50'
street, said point being also on the common line between Lot No. 7 and Lot No.
8; thence running North 23°02'07" West along said common line, a distance of
150.00 feet to a point on the southerly right of way line of Center Avenue, an
80' street; thence running North 66°57'53" East along the southerly line of
Center Avenue, a distance of 150.00 feet to a point on the common line between
Lot No. 7 and Lot No. 6; thence running South 23°02'07" East, along said common
line, a distance of 150.00 feet to a point on the northerly line of West View
Park Drive; thence running South 66°57'53" West, along the northerly line of
West View Park Drive, a distance of 150.00 feet to the point of beginning.
 
CONTAINING a total area of 0.517 acres, more or less.
 
W. View (65)
 
 

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Braddock Hills (66) - 278 Yost Blvd., Pittsburgh, PA
 
ALL THAT CERTAIN IN LOT OR PIECE OF GROUND situate in the Borough of Braddock
Hills, County of Allegheny and Commonwealth of Pennsylvania, being designated as
Parcel “C” in the Gold Circle Plan of Lots, as recorded in the Recorder’s Office
of Allegheny County, in Plan Book Volume 102, pages 147 and 148, bounded and
described as follows: to-wit:
 
BEGINNING at a point on the Northerly line of Yost Boulevard, 60 feet wide, at
the dividing line between Parcels "B" and "C" in said Plan; thence along said
line of Yost Boulevard, South 77° 52' West, a distance of 86.21 feet to a point;
thence continuing along the same, in a Southwesterly direction, by the arc of a
circle curving to the left, having a radius of 230 feet, an arc distance of
257.12 feet to a point on the Northeasterly line of Brinton Road; thence by a
line through said Road, South 11º 30' 20" West, a distance of 20 feet to a point
in the center line of said Brinton Road; thence along said center line, North
78° 29' 40" West, a distance of 200.21 feet to a point; thence continuing along
the same, in a Northwesterly direction by the arc of a circle curving to the
right, having a radius of 232 feet, an arc distance of 42.07 feet to a point of
line of land, now or formerly of Arthur Stern; thence along said line, North 41º
08' 20" East, a distance of 393.02 feet to a point; thence continuing along the
same, North 04° 27' 20" East, a distance of 106.45 feet to a point on the
dividing line between Parcels "B" and "C" in said Plan aforesaid; thence along
said dividing line, South 52° 48' 30" East, a distance of 270 feet to a point
thence continuing along same, South 12° 08' East, a distance of 85.13 feet to
the point at the place of beginning.
 
Braddock Hills (66)
 
 

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Lakewood (91) - 270 E. Fairmount Ave., Lakewood, NY
 
ALL THAT TRACT OR PARCEL OF LAND, situate in the Village of Lakewood, Town of
Busti, County of Chautauqua, and State of New York being part of Lot No. 9,
Township 2, and Range 12 of the Holland Land Company’s Survey; and designated
and distinguished as being all of Lot Number 2, 3, and 4, and Part of Lot No. 1,
as shown on a map of Lakecrest Farms, made by Walter F. Shaw, C. E., dated May
7, 1923, which map was filed in the Chautauqua County Clerk’s Office in Cabinet
No. 1, Section A, as Map No. 34, and being further bounded and described as
follows:
 
BEGINNING at an iron stake at the intersection of the southerly line of East
Fairmount Avenue (New York State Route No. 394), and the easterly line of
Elmcrest Avenue;
 
THENCE North 78 degrees 46 minutes 34 seconds east along the said southerly line
of East Fairmount Avenue and the northerly line of Lot Nos. 4,3, 2 and 1 of
Lakecrest Farms, a distance of 134.66 feet to an iron stake;
 
THENCE South 12 degrees 00 minutes 51 seconds East through said Lot No. 1, a
distance of 136.95 feet to an iron stake in the easterly line of said Lot No. 1;
 
THENCE South 00 degrees 13 minutes 20 seconds East, a distance of 35.39 feet to
a found iron stake at the northeasterly corner of Lot No. 38, as shown on the
said map of Lakecrest Farms;
 
THENCE North 89 degrees 45 minutes 36 seconds West along the northerly line of
said Lot No. 38, as distance of 160.26 feet to a found iron stake in the
easterly line of Elmcrest Avenue;
 
THENCE North 00 degrees 11 minutes 26 seconds West along the said easterly line
of Elmcrest Avenue, a distance of 142.46 feet to the iron stake at the point or
place of BEGINNING.
 
BEING A PORTION of the same premises conveyed by Terrill P. Johnson and Deborah
B. Johnson to Judith E. Scalise by Warranty Deed dated October 27, 1992 and
recorded in the Chautauqua County Clerk’s Office on November 10, 1992 In Liber
2283 of Deeds at Page 235.
 
According to a survey and plat prepared by Abate Engineering Associates, P. C.,
Jerome E. Erickson, P. E. & L. L. S., plat dated October 15, 1999 and designated
as Job No. 7-99-AE199590.
 
ALSO ALL THAT TRACT OR PARCEL O LAND, situate in the Village of Lakewood, Town
of Busti, County of Chautauqua and State of New York, being part of Lot No. 9,
Township 2, arid Range 12 of the Holland Land Company’s Survey and designated
and distinguished as Lot No. 38 on a map of Lakecrest Farms made by Walter F.
Shaw, C. E., dated May 7, 1923, which map was filed in the Chautauqua County
Clerk’s Office in Cabinet No. 1, Section A, as Map No. 34; and being further
bounded and described as follows:
 
BEGINNING at a found iron stake at the easterly line of Elmcrest Avenue at the
southwesterly corner of Lot No. 4, as shown on said map of Lakecrest Farms, said
iron stake being South 00° 11’ 26” East, a distance of 142.46 feet from a point
at the intersection of the southerly line of Fairmount Avenue and the said
easterly line of Elmcrest Avenue;
 
THENCE South 89° 45’ 36” East along the southerly line of said Lot No .4 and the
southerly lines of Lot Nos. 3, 2, and 1 of said Lakecrest Farms Map, a distance
of 160.26 feet to a found iron stake;
 
THENCE South 01° 01’ 18” West along the easterly line of Lakecrest Farms, a
distance of 49.48 feet to a found iron stake at the northeasterly corner of Lot
No. 39 of said map;
 
THENCE North 89156’ 35” West along the northerly line of Lot No, 39, a distance
of 159.73 feet to a found iron stake in the said easterly line of Elmcrest
Avenue;
 
THENCE North 00° 24’ 39” East along the said easterly line of Elmcrest Avenue, a
distance of 49.99 feet to the point or place of BEGINNING.
 
Lakewood (91)
 
 

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Farmington (324) – 627 Walmart Drive, Farmington, MO
 
PART OF LOT "A" OF ROSE LANE SUBDIVISION IN THE CITY OF FARMINGTON, MISSOURI,
PER PLAT OF RECORD IN PLAT BOOK 7, PAGE 26, LAND RECORDS OF ST. FRANCOIS COUNTY,
MISSOURI, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: FROM THE SOUTHEAST
CORNER OF LOT "A" OF SAID ROSE LANE SUBDIVISION; THENCE N 16 DEGREES 49' 55" W.
ALONG THE EASTERLY LINE OF LOT "A" 355.25 FEET TO A POINT ON THE WESTERLY LINE
OF ROUTE 67, FARMINGTON SPUR; THENCE NORTHWESTERLY ALONG SAID WESTERLY LINE THE
FOLLOWING COURSES AND DISTANCES, NORTHWESTERLY ON A CURVE TO THE LEFT, HAVING A
RADIUS OF 11,358.36 FEET, A DISTANCE OF 322.71 FEET; THENCE N 52 DEGREES 56' 57"
W. 145.36 FEET TO THE POINT OF BEGINNING FOR THIS DESCRIPTION; THENCE N 83
DEGREES 54' 46" W. 116.62 FEET; THENCE N 52 DEGREES 56' 57" W 77.55 FEET TO A
POINT ON THE NORTHERLY LINE OF LOT "A" OF SAID ROSE LANE SUBDIVISION; THENCE
LEAVING THE WESTERLY LINE OF SAID ROUTE 67, FARMINGTON SPUR S 53 DEGREES 05' 49"
W ALONG THE NORTHERLY LINE OF SAID LOT "A", 93.26 FEET; THENCE S 36 DEGREES 54'
11" E. 154.05 FEET; THENCE N 53 DEGREES 05' 49" E. 200.00 FEET TO THE POINT OF
BEGINNING.
 
PART OF LOT "A" OF ROSE LANE SUBDIVISION IN THE CITY OF FARMINGTON, MISSOURI,
PER PLAT OF RECORD IN PLAT BOOK 7, PAGE 26, LAND RECORDS OF ST. FRANCOIS COUNTY,
MISSOURI, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: FROM THE SOUTHEAST
CORNER OF LOT "A" OF SAID ROSE LANE SUBDIVISION; THENCE N 16 DEGREES 49' 55" W
ALONG THE EASTERLY LINE OF LOT "A" 355.25 FEET TO A POINT ON THE WESTERLY LINE
OF ROUTE 67, FARMINGTON SPUR; THENCE NORTHWESTERLY ALONG SAID WESTERLY LINE THE
FOLLOWING COURSES AND DISTANCES, NORTHWESTERLY ON A CURVE TO THE LEFT, HAVING A
RADIUS OF 11,358.36 FEET, A DISTANCE OF 322.71 FEET; THENCE N 52 DEGREES 56' 57"
W 145.36 FEET; THENCE N 83 DEGREES 54' 46" W 116.62 FEET; THENCE N 52 DEGREES
56' 57" W 77.55 FEET TO A POINT ON THE NORTHERLY LINE OF LOT "A" OF SAID ROSE
LANE SUBDIVISION; THENCE LEAVING THE WESTERLY LINE OF SAID ROUTE 67, FARMINGTON
SPUR, S 53 DEGREES 05' 49" W., ALONG THE NORTHERLY LINE OF SAID LOT "A" 93.26
FEET TO THE POINT OF BEGINNING FOR THIS DESCRIPTION; THENCE CONTINUE S 53
DEGREES 05' 49" W ALONG THE NORTHERLY LINE OF SAID LOT "A", 33.17 FEET; THENCE
SOUTHEASTERLY ON A CURVE TO THE LEFT, HAVING A RADIUS OF 50.0 FEET, A DISTANCE
OF 28.76 FEET; THENCE S 37 DEGREES 21' 05" E, 126.79 FEET; THENCE N 53 DEGREES
05' 49" E. 40.01 FEET; THENCE N 36 DEGREES 54' 11" W. 154.05 FEET TO THE POINT
OF BEGINNING.
 
Farmington (324)
 
 

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Moundsville (352) - 122 N. Lafayette Ave., Moundsville, WV
 
All those certain tract, piece or parcel of land lying and being situate in the
City of Moundsville, Marshall County, State of West Virginia, and more
particularly described as follows:
 
Commencing at a point at the southeastern intersection of U.S. Route 250 and
Route 2 thence following Route 2 South along the eastern line 884 feet more or
less to a 1/2 inch rod set; thence North 85 degrees 59 minutes 00 seconds East
110.00 feet to a 5/8 inch rod found; thence South 04 degrees 01 minutes 00
seconds East 160.00 feet to a nail set; thence South 85 degrees 59 minutes 00
seconds West to 95.00 feet to a nail set; thence North 04 degrees 26 minutes 36
seconds West 75.48 feet to a punch hole found; thence South 85 degrees 26
minutes 10 seconds West 14.94 feet to a 5/8 inch rod found; thence North 03
degrees 44 minutes 54 seconds West 84.67 feet to the point and place of
beginning containing 16,502.7 square feet or 0.3789 acres.
 
Moundsville (352)
 
 

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Kittaning (379) - 14 Hilltop Plaza, Kittanning, PA
 
ALL THAT CERTAIN PARCEL OR REAL PROPERTY LOCATED IN EAST FRANKLIN TOWNSHIP,
ARMSTRONG COUNTY, PENNSYLVANIA, AS MORE PARTICULARLY DESCRIBED AS FOLLOWS:
 
BEGINNING AT A POINT ON THE SOUTHERLY SIDE OF AN ACCESS RIGHT-OF-WAY 50 FEET IN
WIDTH AT THE DIVIDING LINE OF PARCEL NO. 3A AND NO. 38 IN THE HILLTOP PLAZA
SHOPPING CENTER PLAN OF SUBDIVISIONS WHICH PLAN IS RECORDED IN THE ARMSTRONG
COUNTY RECORDER’S OFFICE IN PLAN BOOK 3, PAGE 551, SLIDE 192; THENCE FROM SAID
PLACE OF BEGINNING SOUTH 3º 35' 38" WEST ALONG THE LINE OF PARCEL NOS. 3A AND
38, A DISTANCE OF 223.78 FEET TO A POINT THE DIVIDING LINE OF PARCEL NO. 3A AND
PARCEL NO. 6 IN THE AFOREMENTIONED PLAN; THENCE ALONG SAID DIVIDING LINE NORTH
88º 24' 22" WEST, A DISTANCE OF 180 FEET TO A POINT ON THE EASTERLY LINE OF AN
ACCESS RIGHT-OF-WAY 68 FEET IN WIDTH; THENCE ALONG SAID RIGHT-OF-WAY NORTH 3º
35' 38" EAST, A DISTANCE OF 175.00 FEET TO A POINT; THENCE CONTINUING ALONG SAME
BY THE ARC [OF A] CIRCLE CURVING TO THE RIGHT HAVING A RADIUS OF 50.00 FEET AND
AN ARC DISTANCE OF 78.54 FEET TO THE SOUTHERLY LINE OF THE AFOREMENTIONED 50
FOOT ACCESS RIGHT-OF-WAY; THENCE ALONG SAID LINE SOUTH 66º 24' 22" EAST, A
DISTANCE OF 98.92 FEET TO A POINT; THENCE CONTINUING ALONG SAME BY THE ARC OF A
CIRCLE CURVING TO THE RIGHT HAVING A RADIUS OF 395.00 FEET AND AN ARC DISTANCE
OF 31.11 FEET TO THE POINT OF BEGINNING, ALSO KNOWN AS PARCEL NO. 3A AS SHOWN ON
THE HILLTOP PLAZA SHOPPING CENTER PLAN OF SUBDIVISION.
 
Wheeling (356)
 
 

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EXHIBIT B
 
FORM OF SNDA
 
See attached.
 
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT B

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THIS INSTRUMENT WAS PREPARED BY AND
WHEN RECORDED RETURN TO:
 
                                                          
                                                          
                                                          
                                                          
                                                          
 

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SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT
 
Lease:
Master Land and Building Lease (Pool A) dated as of December __, 2011
Landlord:
DBMFI LLC, a Delaware limited liability company
Tenant:
MORGAN’S FOODS, INC., an Ohio corporation
Guarantor:
None
Property:
As described on Exhibit A
Property Address:
<<Address>>, <<City>>, <<State>>

 
THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (hereinafter
referred to as “Agreement”) made as of , 20__,
among [ ] (together with its successors and assigns hereinafter referred to as
“Secured Party”), Tenant, and Landlord.
 
RECITALS:
 
A.     Landlord and Tenant have entered into the Lease relating to the Property
described therein and on the attached Exhibit A; and
 
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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

 
 
B.           Secured Party has committed to make a loan to Landlord (hereinafter
referred to as the “Loan”) to be secured by certain mortgages, deeds of trust or
deeds to secure debt (collectively, the “Mortgage”) and certain assignments of
leases and rents (collectively, the “Assignment of Leases”) from Landlord to
Secured Party covering the Property; and
 
C.           Tenant has agreed that the Lease shall be subject and subordinate
to the Mortgage held by Secured Party, provided Tenant is assured of continued
occupancy of the Property under the terms of the Lease as hereinafter provided;
 
NOW, THEREFORE, for and in consideration of the mutual covenants herein
contained, the sum of Ten Dollars ($10.00) and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
Secured Party, Tenant and Landlord hereby agree to the subordination, attornment
and other agreements in favor of Lender set forth herein.
 
1.           Subordination and Consent. Secured Party, Tenant and Landlord do
hereby covenant and agree that the Lease with all rights, options, liens and
charges created thereby (including, without limitation, any options, rights of
first refusal, or rights contained in the Lease, or otherwise existing, to
acquire any or all of the Property, or any superior leasehold interest therein),
is and shall continue to be subject and subordinate in all respects to the
Mortgage and to any renewals, modifications, consolidations, replacements and
extensions thereof and to all advancements made thereunder. Tenant acknowledges
that Landlord will execute and deliver to Secured Party an assignment of the
Lease as security for said loan, and Tenant hereby expressly consents to such
assignment. Tenant agrees that if there is a default by Landlord in the
performance and observance of any of the terms of such Loan, Secured Party may,
at its option, demand all rents due under the Lease be paid by Tenant directly
to Secured Party at the address specified below, or as otherwise specified by
Secured Party. Tenant agrees that upon Secured Party’s written request for
payment of rent directly to Secured Party, Tenant will timely remit any and all
payments due under the Lease directly to, and payable to the order of, Secured
Party. Such payments to Secured Party will constitute performance of Tenant’s
payment obligations under the Lease. Tenant agrees that it has no right or
option of any nature to purchase the Property, or any portion thereof or any
interest therein.
 
2.           Non-Disturbance. Secured Party does hereby agree with Tenant that,
in the event Secured Party becomes the fee simple owner of the Property by
foreclosure, conveyance in lieu of foreclosure or otherwise, so long as Tenant
complies with and performs its obligations under the Lease and there exists no
“Event of Default” on the part of the Tenant under the Lease, (a) the Lease
shall continue in full force and effect as a direct Lease between the succeeding
owner of the Property and Tenant, upon and subject to all of the terms,
covenants and conditions of the Lease, for the balance of the terms of the
Lease, and Secured Party will not disturb the possession of Tenant, and (b) the
Property shall be subject to the Lease and Secured Party shall recognize Tenant
as the tenant of the Property for the remainder of the terms of the Lease in
accordance with the provisions thereof and be bound thereby as landlord
thereunder until the succeeding owner takes title to the Property; provided,
however, that Secured Party shall not be:
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT Loan No. [__- ]/ Unit
No. «StoreUnit_»
 
a.           subject to any claims, offsets or defenses which Tenant might have
against any prior landlord (including Landlord); or
 
b.           obligated to complete any construction work required to be done by
any prior landlord (including Landlord) pursuant to the provisions of the Lease
or to reimburse Tenant for any construction work done by Tenant; or
 
c.           required to make any repairs to the Property required as a result
of fire or other casualty or by reason of condemnation unless Secured Party
shall be obligated under the Lease to make such repairs and then shall be
obligated to finance the completion of such repairs only to the extent of
casualty insurance proceeds or condemnation awards received; or
 
d.           required to make any capital improvements to the Property which
Landlord may have agreed to make, but had not completed, or to perform or
provide any services not related to possession or quiet enjoyment of the
Property; or
 
e.           be liable for any act or omission of any prior landlord (including
Landlord); or
 
f.           bound by any rent or additional rent which Tenant might have paid
for more than the current month or any security deposit or other prepaid charge
paid to any prior landlord (including Landlord); or
 
g.           bound by any amendment or modification of the Lease that results in
a reduction of Base Rent or Additional Rent (each as defined in the Lease), or a
shortening of the Lease Term (as defined in the Lease) or a material increase in
Landlord’s obligations made without Secured Party’s written consent.
 
h.           Secured Party shall not join Tenant in any action, suit or
proceeding arising out of the Mortgage or seeking to foreclose the Mortgage,
unless Tenant is deemed to be a necessary party under applicable Law in order
for Secured Party to avail itself of and complete the foreclosure or other
remedy.
 
3.           Attornment. Tenant does hereby agree with Secured Party that, in
the event Secured Party becomes the owner of the Property by foreclosure,
conveyance in lieu of foreclosure or otherwise, then Tenant shall attorn to and
recognize Secured Party as the landlord under the Lease for the remainder of the
term thereof, and Tenant shall perform and observe its obligations thereunder,
subject only to the terms and conditions of the Lease. Tenant further covenants
and agrees to execute and deliver upon request of Secured Party an appropriate
agreement of attornment to Secured Party and any subsequent titleholder of the
Property.
 
4.           Lease Defaults. In the event Landlord shall fail to perform or
observe any of the terms, conditions or agreements in the Lease, Tenant shall
give written notice thereof to Secured Party and Secured Party shall have the
right (but not the obligation) to cure such default. Tenant shall not take any
action with respect to such default under the Lease, including without
limitation any action in order to terminate, rescind or avoid the Lease or to
withhold any rent or other monetary obligations thereunder, provided that such
default does not place Tenant’s business operations or the health, safety and
welfare of Tenant’s employees, customers and invitees in immediate jeopardy, for
a period of thirty (30) days following receipt of such written notice by Secured
Party; provided, however, that if such default reasonably requires more than
thirty (30) days to cure, Secured Party shall have a reasonable time, but in no
event more than ninety (90) days, to cure the default provided Landlord
commences to cure within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion. Tenant will accept performance by Secured
Party of any term of the Lease required to be performed by Landlord with the
same force and effect as though performed by Landlord, although Secured Party
shall in no event be required to do so.
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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

 
 
5.           Obligations and Liability of Secured Party. Secured Party shall
have no obligations nor incur any liability with respect to any warranties of
any nature whatsoever, whether pursuant to the Lease or otherwise, including,
without limitation, any warranties respecting use, compliance with zoning,
hazardous wastes or environmental laws, Landlord’s title, Landlord’s authority,
habitability, fitness for purpose or possession. Furthermore, in the event that
Secured Party shall acquire Landlord’s interest in the Property, Secured party
shall have no obligation with respect to the obligations imposed on the Landlord
under the Lease prior to the date Secured Party acquires Landlord’s interest in
the Property, nor incur any liability, beyond Secured Party’s interest in the
Property (or the proceeds of sale of all or any portion thereof), and Tenant
shall look exclusively to such interest of Secured Party in the Property for the
payment and discharge of any obligations or liability imposed upon Secured Party
hereunder, under the Lease, and Secured Party is hereby released and relieved of
any other obligations or liability hereunder or under the Lease. Secured Party
shall not, either by virtue of the Mortgage, the Assignment of Leases or this
Agreement, be or become a mortgagee in possession or be or become subject to any
liability or obligation under the Lease or otherwise until Secured Party shall
have acquired the Landlord’s interest in the Property, by foreclosure or
otherwise, and then such liability or obligation of Secured Party under the
Lease shall extend only to those liabilities or obligations accruing subsequent
to the date that Secured Party has acquired Landlord’s interest in the Property.
Without limiting the generality of the foregoing, neither the Mortgage, the
Assignment of Leases nor this Agreement shall, prior to Secured Party’s
acquisition of Landlord’s interest in the Property, by foreclosure or otherwise,
operate to place responsibility for the control, care, management or repair of
the Property upon Secured Party or impose upon Secured Party responsibility for
the carrying out of any of the terms or conditions of the Lease, and Secured
Party shall not be responsible or liable for any waste committed on the Property
by any party whatsoever, for any dangerous or defective condition of the
Property or for any negligence in the management, upkeep, repair or control of
the Property.
 
6.           No Modification. Tenant agrees that the Lease shall not hereafter
be modified or amended without the prior consent of Secured Party. Tenant will
not consent to any termination or cancellation of the Lease or to any
modification or amendment that results in a reduction of Base Rent or Additional
Rent (each as defined in the Lease), or a shortening of the Lease Term (as
defined in the Lease) or a material increase in Landlord’s obligations, without
Secured Party’s prior written consent and will not make any payment to Landlord
in consideration of any modification, termination or cancellation of the Lease
without Secured Party’s prior written consent.
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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

 
 
7.            Invalid or Inoperative Provisions. If any portion or portions of
this Agreement shall be held invalid or inoperative, then all of the remaining
portions shall remain in full force and effect, and, so far as is reasonable and
possible, effect shall be given to the intent manifested by the portion or
portions held to be invalid or inoperative.
 
8.            Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York, except to the extent
applicable laws of the jurisdiction in which the Property is located apply with
respect to the validity hereof, the priority of the liens and interests, and the
enforcement of the remedies granted herein.
 
9.            Notices. So long as the Mortgage remains outstanding and
unsatisfied, Tenant will mail or deliver to Secured Party, at the address and in
the manner herein below provided, a copy of all notices given to the Landlord by
Tenant under and pursuant to the terms and provisions of the Lease. All notices
or other communications required or permitted to be given pursuant to the
provisions hereof shall be in writing and shall be considered as properly given
if (i) mailed to the addressee by first class United States mail, postage
prepaid, registered or certified with return receipt requested, (ii) by
delivering same in person to the addressee, or (iii) by delivery to a third
party commercial delivery service for same day or next day delivery to the
office of the addressee with proof of delivery. Notice so given shall be
effective, as applicable, upon (i) the third (3rd) day following the day such
notice is deposited with the U.S. Postal Service, (ii) delivery to the
addressee, or (iii) the second (2nd) business day following the day such notice
is delivered to such third party delivery service. Notice given in any other
manner shall be effective only if and when received by the addressee. For
purposes of notice, the addresses of the Landlord, Tenant and Secured Party are
as follows:
 
Landlord:                               DBMFI LLC
c/o Drawbridge Special Opportunities Fund LP
1345 Avenue of the Americas, 46th Floor
New York, New York 10105
Attn: Constantine M. Dakolias, President and
Glenn P. Cummins, CFO
 
with copy to:                         Sidley Austin LLP
555 West Fifth Street, Suite 4000
Los Angeles, California
Attn: Aimee Contreras-Camua, Esq.
 
Tenant: Morgan’s Foods, Inc.
4829 Galaxy Parkway, Suite S
Cleveland, Ohio 44122
Attn: Barton J. Craig, Esq
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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

 
 
with copy to:                         Morgan’s Foods, Inc.
4829 Galaxy Parkway, Suite S
Cleveland, Ohio 44122
Attn: James Liguori
 
Secured
Party:                                                                      
                                                                                                
                                                                                                
                                                                                                        
 
Notwithstanding the foregoing, any party shall have the right to change its
address for notice hereunder to any other location within the continental United
States by the giving of thirty (30) days’ notice to the other parties in the
manner set forth herein.
 
10.           Binding Nature. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective legal representatives,
successors, successors-in-title and assigns. When used herein, the term
“Landlord” refers to Landlord and to any successor to the interest of Landlord
under the Lease and “Secured Party” refers to Secured Party and to any assignee
or subsequent holder of the note secured by the Mortgage (whether by assignment,
secondary market transaction, or otherwise) and Secured Party’s servicer of the
Loan, if any.
 
11.           Tenant’s Personal Property. In no event shall the Mortgage cover
or encumber (and shall not be construed as subjecting in any manner to the lien
thereof) any of Tenant’s personal property (defined in the Lease as “Restaurant
Equipment”), which may include, but shall not be limited to, readily removable
trade fixtures, restaurant and business equipment, furniture, signs and other
personal property at any time placed on or about the Property; provided,
however, that Tenant shall, at its expense, repair any damage caused by the
removal of such items, in accordance with the terms of the Lease.
 
12.           Whole Agreement. This Agreement shall be the whole agreement and
only agreement with regard to the subordination of the Lease to the lien of the
Mortgage and shall supersede and cancel, but only insofar as would affect the
priority between the Mortgage and the Lease, any prior agreements as to such
subordination, including, without limitation, those provisions, if any,
contained in the Lease which provide for the subordination of the Lease to a
deed or deeds of trust or to a mortgage or mortgages.
 
13.           Subordination. Tenant acknowledges and understands that in
reliance upon, and in consideration of, this waiver, relinquishment and
subordination, specific loans and advances are being and will be made by Lender
and, as part and parcel thereof, specific monetary and other obligations are
being and will be entered into which would not be made or entered into but for
said reliance upon this waiver, relinquishment and subordination.
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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

 
 
14.            Heirs, Successors, Assigns and Transferees. The covenants herein
shall be binding upon, and inure to the benefit of, the heirs, successors and
assigns of the parties hereto.
 
15.            Subsequent Transfer. If Lender, by succeeding to the interest of
Lessor under the Lease, should become obligated to perform the covenants of
Lessor thereunder, then, upon any further transfer of Lessor’s interest by
Lender, all of such obligations shall terminate as to Lender with respect to
matters arising after the date of such transfer.
 
16.            Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute and be construed as one and the same instrument.
 
[Signature Pages Follow]
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year set forth above.
 
LANDLORD:
 
DBMFI LLC,
a Delaware limited liability company
 
By:                                                    
Name:                                               
Title:                                                     
 
STATE OF                                                   §
                                                                       §
COUNTY OF                                               §
 
On                                  , 20__, before
me,                                       , a Notary Public, personally
appeared                                      , proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same for the purposes
therein contained.
 
In witness whereof, I hereunto set my hand and official seal.
 
                                                                                     
Notary Public
My Commission
Expires:                                                            
 
[Notary Seal]
 
 
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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TENANT:
 
MORGAN’S FOODS, INC.,
an Ohio corporation
 
By:                                                    
Name:                                               
Title:                                                                                                   
 
STATE OF                                                   §
                                                                       §
COUNTY OF                                               §
 
On                                , 20__, before
me,                                   , a Notary Public, personally
appeared                                   , proved to me on the basis of
satisfactory evidence to be the person whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same for the purposes
therein contained.
 
In witness whereof, I hereunto set my hand and official seal.
 
                                                                                     
Notary Public
My Commission
Expires:                                                                                                   
 
[Notary Seal]
 
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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SECURED PARTY:
 
[_______________________]
 
By:                                                    
Name:                                               
Title:                                                                                                   
 
STATE OF                                                   §
                                                                       §
COUNTY OF                                               §
 
On                                , 20__, before
me,                                             , a Notary Public, personally
appeared , proved to me on the basis of satisfactory evidence to be the person
whose name is subscribed to the within instrument and acknowledged to me that
he/she executed the same in his/her authorized capacity, and that by his/her
signature on the instrument the person or the entity upon behalf of which the
person acted, executed the instrument.
 
I certify under PENALTY OF PERJURY under the laws of the State
of                  that the foregoing paragraph is true and correct.
 
                                                                                     
Notary Public
My Commission Expires:                                          
 
[Notary Seal]
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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EXHIBIT A
LEGAL DESCRIPTION
 
Description of Property. The Property referred to in this Agreement is situated
in County of <<County>>, State of <<State>> and is described as follows:
 
[LEGAL DESCRIPTION TO BE INSERTED PRIOR TO CLOSING]
 
Property Address: <<Address>>, <<City>>, <<State>>
 
 
 
 
SUBORDINATION. NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Loan No. [__-]/ Unit No. <<StoreUnit_>>
 
 

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EXHIBIT C
FORM TENANT’S ESTOPPEL CERTIFICATE
 
THE UNDERSIGNED, MORGAN’S FOODS, INC., an Ohio corporation (“Tenant”), whose
address is 4829 Galaxy Parkway, Suite S, Cleveland, Ohio 44122, represents and
certifies as follows:
 
1.           Tenant is the tenant under that certain Master Land and Building
Lease
 
(Pool A) dated December __, 2011 (the “Lease”) with DBMFI LLC, a Delaware
limited liability company as landlord (“Landlord”), covering the properties
described therein (collectively the “Demised Properties”), a true and correct
copy of which (together with all amendments thereof) is attached hereto as
Exhibit A. [Tenant understands
that                                                (“Lender”) intends to enter
into financing arrangements with Landlord, as borrower, to be secured, among
other things, by certain mortgages, deeds of trust and assignments of leases and
rents, as amended, covering the Demised Properties.]
 
2.           The Lease constitutes the only agreement, promise, understanding or
commitment (either written or oral) Tenant has with respect to the Demised
Properties and any right of occupancy or use thereof.
 
3.           The Lease is in full force and effect and has not been assigned,
subleased, supplemented, modified or amended, in whole or in part.
 
4.           The Tenant has not given Landlord any notice of termination under
the Lease.
 
5.           Tenant took possession of the Demised Properties on or about the
date of the Lease and commenced paying rent on or about December __, 2011.
Tenant presently occupies the Demised Properties, is open for business and in
operation on the Demised Properties, and is paying rent on a current basis. No
rent has been paid by Tenant in advance except for the monthly rental that
became due on [                           ]  and no deposits, including security
deposits, or prepayments of rent have been made in connection with the Lease.
Tenant agrees not to pay rent more than one (1) month in advance unless
otherwise specified in the Lease.
 
6.           The monthly base rental is the sum of [                          ]
AND __/100THS DOLLARS (US$                                   ). Landlord has not
agreed to reimburse Tenant for or to pay Tenant’s rent obligation under any
other lease.
 
7.           The Lease term commenced on December __, 2011, expires on
December___, 2031, and there are no options to renew except: four (4) option
periods of five (5) years each.
 
8.           Tenant is not in default of any of its obligations under the Lease,
nor have there occurred any events that with the passage of time or giving of
notice or both, will result in any such default. To the best knowledge of
Tenant, there are no defaults under the Lease by Landlord, nor have any events
occurred that with the passage of time or giving of notice or both, will result
in any such default. Tenant does not presently have (nor with the passage of
time or giving of notice or both will have) any offset, charge, lien, claim,
termination right or defense under the Lease.
Tennant Estoppel (Pool A)
 
 

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

 
 
9.              Landlord has no personal liability under the Lease (recourse
against Landlord being limited to Landlord’s interest in the Demised
Properties).
 
10.            Tenant has no right of first offer, right of first refusal, or
option to purchase, with respect to all or any portion of any Demised
Properties.
 
11.            Tenant is aware that third parties, including Lender, intend to
rely upon this Certificate and the statements set forth herein and that the
statements and facts set forth above shall be binding on Tenant.
 
12.            Tenant is not entitled to any concession or rebate of rent or
other charges from time to time due and payable under the Lease, and there are
no unpaid or unreimbursed construction allowances or other offsets due Tenant
under the Lease.
 
13.            To the best of Tenant’s knowledge and belief, there are no
rental, lease or similar commissions payable with respect to the Lease.
 
14.            Any notices to be provided hereunder shall be provided pursuant
to the notice provisions of the Lease.
 
15.            Tenant and the persons executing this Tenant Estoppel Certificate
on behalf of Tenant have the power and authority to execute and deliver this
Tenant Estoppel Certificate, thereby binding Tenant.
 
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;
 
SIGNATURE PAGE(S) TO FOLLOW]
 
 
 
Tennant Estoppel (Pool A)
 
 

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

 
 
IN WITNESS WHEREOF, Tenant has executed this Tenant Estoppel Certificate this
___ day of                , 20__.
 
TENANT:
 
MORGAN’S FOODS, INC.,
an Ohio corporation
 
By:                                                                             
Name:                                                                        
Title:                                                                          
 
 
Tennant Estoppel (Pool A)
 
 

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

 
 
EXHIBIT “A”
Lease and all Amendments
See attached.
 
 
 
 
Tennant Estoppel (Pool A)
 
 

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

 
 
EXHIBIT D-1
 
FORM OF MEMORANDUM OF LEASE
(Missouri)
 
 
 
 
 
Space Above for Recorder’s Use Only

 
DOCUMENT COVER SHEET
 
TITLE OF DOCUMENT:                                       Memorandum of Lease
 
DATE OF DOCUMENT:                                                              
, 2011
 
GRANTOR:                                                                                                       
(Landlord)
 
Mailing
Address:                                                                                              
                                                                                                                              
 
GRANTEE:                                                                                                         
(Tenant)
 
 
Mailing
Address:                                                                                             
                                                                                                                                 
 
LEGAL DESCRIPTION:                                       See Exhibit A
 
REFERENCE BOOK &
PAGE:                                                                       
 
 
 
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-1

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

 
 
This instrument prepared by and
after recording return to:
 
Sidley Austin LLP
555 West Fifth Street, Suite 4000
Los Angeles, CA 90013-1010
Attention: Marc I. Hayutin, Esq.
 

 
MEMORANDUM OF LEASE
This Memorandum of Lease is made and entered into as
of                             , _____, _____ by and
between                    , a                            (“Landlord”),
and                                               ,
a                                    , whose address is                       
(“Tenant”), who agree as follows:
 
1.   Terms and Premises. Pursuant to a certain Master Land and Building Lease
(the “Lease”) dated on or about the date hereof entered into between Landlord
and Tenant, Landlord has leased to Tenant and Tenant has leased from Landlord
that certain real property, together with all the improvements thereon and
appurtenances thereunto belonging (the “Premises”), more particularly described
on Exhibit “A” attached hereto and incorporated herein, for a term of
[                              ] ([       ]) years from                        ,
____, expiring on                       , ____. Tenant has
[                       ] ([     ]) [     ]-year options to extend the term of
the Lease, all as more particularly set forth in the Lease.
 
2.           Subordination Provisions. Tenant’s rights under the Lease shall at
all times be subject and subordinate to any fee mortgages and/or deed or deeds
of trust now or hereafter filed against the Premises and to the rights of any
Landlord’s Mortgagee thereunder, subject to Section 22.01 of the Lease (and the
subordination provisions therein) and as set forth in Article 23 of the Lease.
 
3.           Purpose of Memorandum of Lease. This Memorandum of Lease is
executed and recorded to give public notice of the Lease between the parties and
all terms and conditions of the Lease are incorporated by reference into this
Memorandum and this Memorandum of Lease does not modify the provisions of the
Lease. If there are any conflicts between the Lease and this Memorandum of
Lease, the provisions of the Lease shall prevail. The rights and obligations set
forth herein shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Any capitalized
term not defined herein shall have the meaning as set forth in the Lease.
 
[SIGNATURES AND ACKNOWLEDGMENTS ON NEXT PAGE]
 
 
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-1

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

 
 
 
LANDLORD:
 
                         ,
a                      
TENANT:
 
                         ,
a                      

 

By:                                                                       
By:                                                                        

 

Date:                                                                   
Date:                                                                     

 
STATE OF                                                   )
) SS.
COUNTY OF                                               )
 
On this ____ day of                                                           ,
2011, before me appeared                                                  , to
me personally known, who, being by me duly sworn, did say
that (s)he is
the                                of                                    , a
Delaware limited liability company, and that the foregoing instrument was signed
on behalf of said limited liability company by authority of its
[manager/members], and said                                 acknowledged said
instrument to be the free act and deed of said limited liabilty company.
 
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal
in the County and State aforesaid, the day and year first above written.
 

   
                                                     
Notary Public
 
Printed Name                                      

 
My Commission Expires:
 
 
 
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-1

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

 
 
STATE OF                                                   )
) SS.
COUNTY OF                                               )
 
On this ____ day of                                      , 2011, before me
appeared                                      , to me personally known, who,
being by me duly sworn, did say that (s)he is the                            
of                       , a                            corporation, and that
the seal affixed to the instrument is the corporate seal of said corporation and
the foregoing instrument was signed [and sealed] on behalf of said corporation
in behalf of its board of directors, and
said                                      acknowledged said instrument to be the
free act and deed of said corporation.
 
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal
in the County and State aforesaid, the day and year first above written.
 
 

   
                                                     
Notary Public
 
Printed Name                                      

 
My Commission Expires:
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-1

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

 
 
NOTE: Is it your intent to have the Seller sign the Memorandum of Lease?
Typically, we only have the Landlord and Tenant sign.
 
SELLER:
 
                             ,
a                                              
 
 
By:                                                              
 
Date:                                                           
 
 
 
STATE OF                                                
SS
 
COUNTY OF                                             
 
On this ____ day of                                    , 2011, before me
appeared                               , to me personally known, who, being by
me duly sworn, did say that (s)he is the                                  
of                               , a                              corporation,
and that the seal affixed to the instrument is the seal of the corporation and
the foregoing instrument was signed and sealed on behalf of said corporation by
authority of its board of directors, and said                                   
acknowledged said instrument to be the free act and deed of said corporation.
 
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal
in the County and State aforesaid, the day and year first above written.
 
 

   
                                                     
Notary Public
 
Printed Name                                      

 
My Commission Expires:
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-1

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

 
  
EXHIBIT “A”
 
 
 
 
 
 
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-1

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

 
 
EXHIBIT D-2
 
FORM OF MEMORANDUM OF LEASE
(New York)
 

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

(Above space reserved for recorder and recording information) This instrument
prepared by and
 
This instrument prepared by and
after recording return to:
 
Sidley Austin LLP
555 West Fifth Street, Suite 4000
Los Angeles, CA 90013-1010
Attention: Marc I. Hayutin, Esq.
 

 
MEMORANDUM OF LEASE
 
This Memorandum of Lease is made and entered into as of          , _____, _____
by and between                       , a                    , whose address
is                                           (“Landlord”),
and                           , a                            , whose address
is                              (“Tenant”), who agree as follows:
 
1.   Terms and Premises. Pursuant to a certain Master Land and Building Lease
(the “Lease”) dated [                            ] entered into between Landlord
and Tenant, Landlord has leased to Tenant and Tenant has leased from Landlord
that certain real property, together with all the improvements thereon and
appurtenances thereunto belonging (the “Premises”), more particularly described
on Exhibit “A” attached hereto and incorporated herein, for a term of
[                    ] ([     ]) years from,                          , expiring
on                        ,          . Tenant has [                   ]
([        ]) [     ]-year options to extend the term of the Lease, all as more
particularly set forth in the Lease. 
 
2.             Subordination Provisions. Tenant’s rights under the Lease shall
at all times be subject and subordinate to any fee mortgages and/or trust deeds
now or hereafter filed against the Premises and to the rights of any Landlord’s
Mortgagee thereunder or as otherwise set forth in Article 26 of the Lease.

3.   Purpose of Memorandum of Lease. This Memorandum of Lease is executed and
recorded to give public notice of the Lease between the parties and all terms
and conditions of the Lease are incorporated by reference into this Memorandum
and this Memorandum of Lease does not modify the provisions of the Lease. If
there are any conflicts between the Lease and this Memorandum of Lease, the
provisions of the Lease shall prevail. The rights and obligations set forth
herein shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. Any term not defined herein shall have
the meaning as set forth in the Lease.
 
[SIGNATURES AND ACKNOWLEDGMENTS ON NEXT PAGE]
 
MASTER LAND AND BUILDING LEASE
 
EXHIBIT D-2

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

 
 
 

 
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