Lease



 Exhibit 10.56 
  
 LEASE 
  
 THIS LEASE (this “Lease”) is made as of December 30, 2004 (the “Effective Date”), by and between Jameson Inns Financing 01, LP, a
Georgia limited partnership (“Lessor”), and Kitchin Hospitality, LLC, a Georgia limited liability company (“Lessee”). 
  
 Lessor owns the “Property” (as hereinafter defined) which at the date hereof consists of seven operating hotel properties and may, in the
future, consist of additional or substituted hotel properties. 
  
 In furtherance of the purposes described herein, Lessor and Lessee wish to enter into this Lease. 
  
 Now, therefore, Lessor, in consideration of the payment of rent by Lessee to Lessor, the mutual covenants and agreements to be performed by Lessee, and
upon the terms and conditions hereinafter stated, does hereby rent and lease unto Lessee, and Lessee does hereby rent and lease from Lessor, the property, and Lessor and Lessee hereby covenant and agree as follows: 
  
 1. Certain Defined Terms. The following terms shall have the
following meanings for all purposes of this Lease: 
  
 “ADA” means the Americans with Disabilities Act of 1990, as such act may be amended from time to time. 
  
 “Additional Rental” has the meaning set forth in Section 5.C. 
  
 “Affiliate” means any Person which directly or indirectly controls, is under common control with, or is
controlled by any other Person. For purposes of this definition, “controls”, “under common control with” and “controlled by” means the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of such Person, whether through the ownership of voting securities or otherwise. 
  
 “Anti-Money Laundering Laws” means all applicable BSA laws, regulations and government guidance on BSA compliance and on the prevention
and detection of money laundering violations under 18 U.S.C. § § 1956 and 1957, as amended. 
  
 “Applicable Regulations” means all applicable statutes, regulations, rules, ordinances, codes, licenses, permits, orders and approvals of
each Governmental Authority having jurisdiction over the Property, including, without limitation, all health, building, fire, safety and other codes, ordinances and requirements, all applicable standards of the National Board of Fire Underwriters
and the ADA and all policies or rules of common law, in each case, as amended, and any judicial or administrative interpretation thereof, including any judicial order, consent, decree or judgment applicable to any of the Lessee Parties. 

 
 “Applicable Rent Reduction Percentage” means, with
respect to any Property, a fraction, the numerator of which shall be the original principal balance of the Note corresponding to such Property, and the denominator of which shall be the sum of all of the original principal balances of the Note
corresponding to the Property then subject to this Lease, including such Property. 
  
 “Base Annual Rental” means the higher of (i) the aggregate amount of the Note Payments on the Property or (i) the Net Operating Income from the Property, less the Capital Expenditures Fee and the
Management Fee. 
  
 “Base Monthly Rental” means
an amount equal to 1/12 of the applicable Base Annual Rental. 
  
 “BSA” means the Bank Secrecy Act (31 U.S.C. § § 5311 et. seq.), as amended. 
  

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 “Business Day” means any day on which Lender is open for business other than a Saturday,
Sunday or a legal holiday, ending at 5:00 P.M. Phoenix, Arizona time. 
  
 “Capital Expenditures Fee” means an amount equal to 4% of the total room revenues for the calendar year for which Base Annual Rental is being calculated. 
  
 “Change of Control” means a change in control of any of the Lessee Parties, including, without limitation,
a change in control resulting from direct or indirect transfers of voting stock or partnership, membership or other ownership interests, whether in one or a series of transactions. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of any of the Lessee Parties, as applicable, and a Change of Control will occur if any of the following occur: (i) any merger or
consolidation by any of the Lessee Parties, as applicable, with or into any other entity; or (ii) if any “Person” as defined in Section 3(a)(9) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and as
used in Section 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) of the Exchange Act, subsequent to the Closing, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), of
securities of any of the Lessee Parties, as applicable, representing 50% or more of the combined voting power of Lessee’s then outstanding securities (other than indirectly as a result of the redemption by any of the Lessee Parties, as
applicable, of its securities). 
  
 “Code” means
Title 11 of the United States Code, 11 U.S.C. Sec. 101 et seq., as amended. 
  
 “Default Rate” means the lesser of the highest rate for which the undersigned may legally contract or the rate of 14% per annum. 
  
 “Effective Date” has the meaning set forth in the Preamble. 
  
 “Environmental Condition” means any condition with respect
to soil, surface waters, groundwaters, land, stream sediments, surface or subsurface strata, ambient air and any environmental medium comprising or surrounding the Property, whether or not yet discovered, which would reasonably be expected to or
does result in any damage, loss, cost, expense, claim, demand, order or liability to or against any of the Lessee Parties, Lessor or Lender by any third party (including, without limitation, any Governmental Authority), including, without
limitation, any condition resulting from the operation of business at the Property and/or the operation of the business of any other property owner or operator in the vicinity of the Property and/or any activity or operation formerly conducted by
any person or entity on or off the Property. 
  
 “Environmental Laws” means any present and future federal, state and local laws, statutes, ordinances, rules, regulations, orders, injunctions and decrees of Governmental Authorities and common law, relating to Hazardous
Materials or USTs and/or the protection of human health or the environment by reason of a Release or a Threatened Release of Hazardous Materials or USTs or relating to liability for or costs of Remediation or prevention of Releases.
“Environmental Laws” includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations, rulings, orders or decrees promulgated pursuant thereto, and any state or local statutes, ordinances,
rules, regulations, orders, injunctions and decrees of Governmental Authorities: the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq.; the Emergency Planning and Community Right-to-Know Act,
42 U.S.C. § 11001 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq.; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to USTs), 42 U.S.C. §§ 6901 et seq.;
the Clean Water Act, 33 U.S.C. §§ 1251 et seq.; the Clean Air Act, 42 U.S.C. §§ 7401 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 7401 et seq.; the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136 et seq.; the Endangered Species Act, 16 U.S.C. §§ 1531 et seq. and the National
Environmental Policy Act, 42 U.S.C. § 4321 et seq. “Environmental Laws” also includes, but is not limited to, any present and future federal, state and local laws, statutes, ordinances, rules, regulations, orders, injunctions and
decrees of Governmental Authorities and common law: conditioning transfer of property upon a negative declaration or other 

  

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approval of a Governmental Authority of the environmental condition of the property; requiring notification or disclosure of Releases or other environmental
condition of the Property to any Governmental Authority or other person or entity, whether or not in connection with transfer of title to or interest in property; imposing conditions or requirements relating to Hazardous Materials or USTs in
connection with permits or other authorizations required by Governmental Authorities; relating to the handling and disposal of Hazardous Materials; relating to nuisance, trespass or other causes of action related to Hazardous Materials; and relating
to wrongful death, personal injury, or property or other damage in connection with the physical condition or use of the Property by reason of the presence of Hazardous Materials or USTs in, on, under or above the Property. 
  
 “Environmental Liens” has the meaning set forth in Section
6.L(9). 
  
 “Event of Default” has the meaning
set forth in Section 24. 
  
 “GAAP” means
generally accepted accounting principles consistently applied. 
  
 “Governmental Authority” means any governmental authority, agency, department, commission, bureau, board, instrumentality, court or quasi-governmental authority having jurisdiction or supervisory or regulatory authority
over the Property or any of the Lessee Parties. 
  
 “Hazardous Materials” means (a) any toxic substance or hazardous waste, substance, solid waste or related material, or any pollutant or contaminant; (b) radon gas, asbestos in any form which is or could become friable, urea
formaldehyde foam insulation, transformers or other equipment containing dielectric fluid having levels of polychlorinated biphenyls in excess of applicable standards established by any Governmental Authority, or any petroleum product or additive;
(c) any substance, gas, material or chemical which is now or hereafter defined as or included in the definition of “hazardous substances,” “toxic substances,” “hazardous materials,” “hazardous wastes,”
“regulated substances” or words of similar import under any Environmental Laws; and (d) any other chemical, material, gas or substance the exposure to or release of which is prohibited, limited or regulated by any Governmental Authority
that asserts or may assert jurisdiction over the Property or the operations or activity at the Property, or any chemical, material, gas or substance that does or is reasonably likely to pose a hazard to the health and/or safety of the occupants of
the Property or the owners and/or occupants of property adjacent to or surrounding the Property. 
  
 “Indemnified Parties” means Lessor, Lender, their respective directors, managers, officers, shareholders, trustees, beneficial owners,
partners and members, any directors, managers, officers, shareholders, trustees, beneficial owners, partners, members of any shareholders, beneficial owners, partners or members of Lessor, Environmental Insurer or Lender, and all employees, agents,
servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants, successors and assigns of any of the foregoing, including, but not limited to, any successors by merger, consolidation or acquisition of all or a
substantial portion of the assets and business of Lessor or Lender, as applicable. 
  
 “Lease Term” shall have the meaning described in Section 4. 
  
 “Lender” means GE Capital Franchise Finance Corporation, a Delaware corporation, its successors and assigns, any successor lender in
connection with any loan secured by Lessor’s interest in the Property, and any servicer of any loan secured by Lessor’s interest in the Property. 
  
 “Lessee’s Basic Fee” means an amount equal to 4% of the Gross Hotel Revenues for the month for which Net Operating Income is being
calculated. 
  
 “Lessee Parties” means,
collectively, Lessee and any guarantors of this Lease (including, in each case, any predecessors-in-interest). 
  

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 “Lessor Entities” means, collectively, Lessor (including any predecessor-in-interest to
Lessor) and any Affiliate of Lessor (including any Affiliate of any predecessor-in-interest to Lessor). 
  
 “Loan Agreements” means collectively the Loan Agreements dated as of the Effective Date in effect between Lessor and Lender, as such
agreement may be amended, modified or supplemented from time to time and any and all replacements or substitutions thereof. 
  
 “Loan Documents” means, collectively, the Loan Agreements, the Notes, the Mortgages and all other documents, instruments and agreements
executed in connection therewith or contemplated thereby, all as amended, modified and supplemented and any and all replacements or substitutions thereof. 
  
 “Loan Pool” means: 
  
 (i) in the context of a Securitization, any pool or group of loans that are a part of such Securitization; 
  
 (ii) in the context of a Transfer, all loans which are sold,
transferred or assigned to the same transferee; and 
  
 (iii) in the context of a Participation, all loans as to which participating interests are granted to the same participant. 
  
 “Losses” means any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings,
obligations, debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement and damages of whatever kind or nature (including, without limitation,
attorneys’ fees, court costs and other costs of defense). 
  
 “Management Fee” means an amount equal to 4% of total room revenues for the calendar year for which Base Annual Rental is being calculated. 
  
 “Material Adverse Effect” means a material adverse effect on (i) the Property, including, without
limitation, the operation of the Property as a Permitted Concept, or (ii) Lessee’s ability to perform its obligations under this Lease. 
  
 “Memorandum” means each memorandum of lease dated as of the Effective Date between Lessor and Lessee with respect to any of the Property.
A duplicate original Memorandum will be executed and recorded in the applicable real property records for each Property. 
  
 “Mortgages” means, collectively, the mortgages, deeds of trust or deeds to secure debt, assignments of rents and leases, security
agreements and fixture filings dated as of the Effective Date executed by Lessor for the benefit of Lender with respect to the Property, as such instrument may be amended, modified, restated and/or supplemented from time to time and any and all
replacements or substitutions thereof. 
  
 “Net Operating
Income” means the net operating income from the Property calculated according to the Uniform System of Accounts for Hotels and in accordance with GAAP. 
  

“Notes” means, collectively, the promissory notes dated as of the Effective Date executed by Lessor and payable to Lender with respect
to the Property, as such notes may be amended, modified, restated and/or substituted from time to time. 
  
 “Note Payment” means the aggregate monthly payments due under Notes from time to time. 
  

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 “Other Agreements” means, collectively, all agreements and instruments now or hereafter
entered into between, among or by (1) any of the Lessee Parties and/or any Affiliate of any of the Lessee Parties (including any Affiliate of any predecessor-in-interest to any of the Lessee Parties), and, or for the benefit of, (2) any of the
Lessor Entities; provided, however, the term Other Agreements shall not include this Lease. 
  
 “Participation” means one or more grants by Lender or any Affiliate of Lender to a third party of a participating interest in notes evidencing obligations to repay secured or unsecured loans owned by
Lender or any Affiliate of Lender or any or all servicing rights with respect thereto. 
  
 “Permitted 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 presence, use, storage, release
or handling of which does not constitute a violation of any Environmental Laws and is customarily employed in the ordinary course of, or associated with, similar businesses located in the states in which the Property is located. 
  
 “Permitted Concept” means a limited service hotel.

  
 “Person” means any individual, corporation,
partnership, limited liability company, trust, unincorporated organization, Governmental Authority or any other form of entity. 
  
 “Personal Property” means all tangible personal property now or at any time hereafter located on or at the Property or used in connection
therewith, including, without limitation, all machinery, appliances, furniture, equipment and inventory; provided, however, the term “Personal Property” shall not include the HVAC, walk-in coolers, walk-in freezers, supply fans, exhaust
fans, air ducts, hoods, vents, built-in sinks, built-in countertops, plumbing and electrical fixtures, sign poles and lighting poles, all of which items are intended to be fixtures as such term is used within the definition of “Property”.

  
 “Property” means the parcel or parcels of
real estate legally described in Exhibits A-1 through A-7 attached hereto, all rights, privileges and appurtenances associated therewith, and all buildings, fixtures and other improvements now or hereafter located on such real estate (whether
or not affixed to such real estate). 
  
 “Release” means any presence, release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Materials or
USTs. 
  
 “Remediation” means any response,
remedial, removal, or corrective action, any activity to clean up, detoxify, decontaminate, contain or otherwise remediate any Hazardous Materials or USTs required by any Environmental Law or any Governmental Authority, any actions to prevent, cure
or mitigate any Release, any action to comply with any Environmental Laws or with any permits issued pursuant thereto, any inspection, investigation, study, monitoring, assessment, audit, sampling and testing, laboratory or other analysis, or any
evaluation relating to any Hazardous Materials or USTs. 
  
 “Securitization” means one or more sales, dispositions, transfers or assignments by Lender or any Affiliate of Lender to a special purpose corporation, trust or other entity identified by Lender or any Affiliate of Lender
of notes evidencing obligations to repay secured or unsecured loans owned by Lender or any Affiliate of Lender (and, to the extent applicable, the subsequent sale, transfer or assignment of such notes to another special purpose corporation, trust or
other entity identified by Lender or any Affiliate of Lender), and the issuance of bonds, certificates, notes or other instruments evidencing interests in pools of such loans, whether in connection with a permanent asset securitization or a sale of
loans in anticipation of a permanent asset securitization. Each Securitization shall be undertaken in accordance with all requirements which may be imposed by the investors or the rating agencies involved in each such sale, disposition, transfer or
assignment or which may be imposed by applicable securities, tax or other laws or regulations. 
  

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 “Terrorism Laws” means Executive Order 13224 issued by the President of the United
States of America, the Terrorism Sanctions Regulations (Title 31 Part 595 of the U.S. Code of Federal Regulations), the Terrorism List Governments Sanctions Regulations (Title 31 Part 596 of the U.S. Code of Federal Regulations), the Foreign
Terrorist Organizations Sanctions Regulations (Title 31 Part 597 of the U.S. Code of Federal Regulations), and the Cuban Assets Control Regulations (Title 31 Part 515 of the U.S. Code of Federal Regulations), and all other present and future
federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any Governmental Authority (including, without limitation, the United States Department of the Treasury Office of Foreign Assets Control)
addressing, relating to, or attempting to eliminate, terrorist acts and acts of war, each as hereafter supplemented, amended or modified from time to time, and the present and future rules, regulations and guidance documents promulgated under any of
the foregoing, or under similar laws, ordinances, regulations, policies or requirements of other states or localities. 
  
 “Threatened Release” means a substantial likelihood of a Release which requires action to prevent or mitigate damage to the soil, surface
waters, groundwaters, land, stream sediments, surface or subsurface strata, ambient air or any other environmental medium comprising or surrounding the Property which may result from such Release. 
  
 “Title Company” means First American Title Insurance
Corporation. 
  
 “Trademark” means The Jameson
Inn® 
  
 “Transfer” means one or more sales, transfers or assignments by Lender or any Affiliate of Lender to a
third party of notes evidencing obligations to repay secured or unsecured loans owned by Lender or any Affiliate of Lender or any or all servicing rights with respect thereto. 
  
 “UCC” shall have the meaning described in Section 31. 
  
 “USTs” means any one or combination of below or above ground
tanks and associated piping systems used in connection with the storage, dispensing and general use of petroleum and petroleum-based substances. 
  
 2. Demise of Property. In consideration of the rentals and other sums to be paid by Lessee and of the other terms, covenants and conditions
on Lessee’s part to be kept and performed, Lessor hereby leases to Lessee, and Lessee hereby takes and hires, the Property. The Property is leased to Lessee “AS IS” and “WHERE IS” without representation or warranty by Lessor
and subject to the rights of parties in possession, to the existing state of title, any state of facts which an accurate survey or physical inspection might reveal, and all Applicable Regulations now or hereafter in effect. Lessee has examined the
Property and title to the Property and has found all of the same satisfactory for all of Lessee’s purposes. 
  
 3. Lease Characterization. A. Lessor and Lessee intend that: 
  
 (i) this Lease constitutes a lease of all, but not less than all, of the Property and that Lessor and Lessee
have executed and delivered this Lease with the understanding that this Lease constitutes a unitary, unseverable instrument pertaining to all, but not less than all, of the Property; 
  
 (ii) this Lease is a “true lease” and not a financing lease, capital lease, mortgage, equitable
mortgage, deed of trust, trust agreement, security agreement or other financing or trust arrangement, and the economic realities of this Lease are those of a true lease; and 
  
 (iii) the business relationship created by this Lease and any related documents is solely that of a
long-term commercial lease between landlord and tenant and has been entered into by both parties in reliance upon the economic and legal bargains contained herein. 
  

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 B. Lessor and Lessee acknowledge and agree that the Lease Term, including any term extensions provided
for in this Lease, is less than the remaining economic life of the Property. 
  
 C. Lessee 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 which asserts that this Lease is anything other than
a true lease. Lessee covenants and agrees that it will not assert that this Lease is anything but a true lease. Lessee stipulates and agrees not to challenge the validity, enforceability or characterization of the lease of the Property as a true
lease and further stipulates and agrees 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. Lessee shall support the intent of the parties that the lease of the Property 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. 
  
 D. Lessee waives any claim or defense based upon the characterization of this Lease as anything other than a lease of the Property and irrevocably waives
any claim or defense which asserts that this Lease is anything other than a lease. Lessee 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 Property. Lessee stipulates and agrees not to challenge the validity, enforceability or characterization of the lease of the Property as a unitary, unseverable instrument pertaining to the lease of all, but not less than all, of the
Property. Lessee 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 Property, if, and to the extent that, any challenge occurs. 
  
 E. Lessee represents and warrants to Lessor that (i) the Base Annual Rental
is the fair market value for the use of the Property and was agreed to by Lessor and Lessee on that basis, and (ii) the execution, delivery and performance by Lessee of this Lease does not constitute a transfer of all or any part of the Property.

  
 F. The expressions of intent, the waivers, the representations
and warranties, the covenants, the agreements and the stipulations set forth in this Section are a material inducement to Lessor entering into this Lease. 
  
 4. Lease Term. The Lease Term for the Property shall commence as of the Effective Date and shall expire on January 1, 2015. The time period
during which this Lease shall actually be in effect is referred to herein as the “Lease Term.” 
  
 5. Rental and Other Payments. A. Base Monthly Rental shall commence on January 1, 2005 and Lessee shall the first month’s Base Monthly
Rental on such date or the next business day. Thereafter, on or before the first day of each succeeding calendar month, Lessee shall pay Lessor in advance the Base Monthly Rental. 
  
 B. All sums of money required to be paid by Lessee under this Lease which are not specifically referred to as rent
(“Additional Rental”) shall be considered rent although not specifically designated as such. Lessor shall have the same remedies for nonpayment of Additional Rental as those provided herein for the nonpayment of Base Annual Rental.

  
 6. Representations and Warranties of Lessee. The
representations and warranties of Lessee contained in this Section are being made to induce Lessor to enter into this Lease and Lessor has relied, and will continue to rely, upon such representations and warranties. Lessee represents and warrants to
Lessor as of the Effective Date as follows: 
  
 A.
Organization, Authority and Status. (i) Each of the Lessee Parties (other than individuals), as applicable, is duly organized or formed, validly existing and in good standing under the 

  

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laws of its state of incorporation or formation. Lessee is qualified as a foreign corporation, partnership or limited liability company, as applicable, to do
business in each state where the Property is located, and each of the Lessee Parties is qualified as a foreign corporation, partnership or limited liability company, as applicable, to do business in any other jurisdiction where the failure to be
qualified would reasonably be expected to result in a Material Adverse Effect. All necessary action has been taken to authorize the execution, delivery and performance by Lessee of this Lease and of the other documents, instruments and agreements
provided for herein. Lessee is not a “foreign corporation”, “foreign partnership”, “foreign trust”, “foreign limited liability company” or “foreign estate”, as those terms are defined in the Internal
Revenue Code and the regulations promulgated thereunder. Lessee’s U.S. Federal Tax Identification number, Organization Identification number and principal place of business are correctly set forth on the signature page of this Lease. The
person(s) who have executed this Lease on behalf of Lessee are duly authorized to do so. None of the Lessee Parties, and no individual or entity owning directly or indirectly any interest in any of the Lessee Parties, is an individual or entity
whose property or interests are subject to being blocked under any of the Terrorism Laws or who is otherwise in violation of any of the Terrorism Laws. 
  
 B. Enforceability. Upon execution by Lessee, this Lease shall constitute the legal, valid and binding obligation of Lessee, enforceable against
Lessee in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, liquidation, reorganization and other laws affecting the rights of creditors generally and general principles of equity.

  
 C. Litigation. There are no suits, actions, proceedings
or investigations pending, or, to the best of its knowledge, threatened against or involving the Lessee Parties or the Property before any arbitrator or Governmental Authority, except for such suits, actions, proceedings or investigations which,
individually or in the aggregate, have not had, and would not reasonably be expected to result in, a Material Adverse Effect. 
  
 D. Absence of Breaches or Defaults. The Lessee Parties are not, and the authorization, execution, delivery and performance of this Lease and the
documents, instruments and agreements provided for herein will not result in, any breach or default under any document, instrument or agreement to which any of the Lessee Parties is a party or by which any of the Lessee Parties, the Property or any
of the property of any of the Lessee Parties is subject or bound, except for such breaches or defaults which, individually or in the aggregate, have not had, and would not reasonably be expected to result in, a Material Adverse Effect. The
authorization, execution, delivery and performance of this Lease and the documents, instruments and agreements provided for herein will not violate any applicable law, statute, regulation, rule, ordinance, code, rule or order. The Property is not
subject to any right of first refusal, right of first offer or option to purchase or lease granted to a third party. Lessee has not assigned, transferred, mortgaged, hypothecated or otherwise encumbered this Lease or any rights hereunder or interest
herein. 
  
 E. Intentionally omitted. 
  
 F. Licenses and Permits; Access. All required licenses and permits,
both governmental and private, to use and operate the Property as a Permitted Concept are in full force and effect, except for such licenses and permits the failure of which to obtain has not had, and would not reasonably be expected to result in, a
Material Adverse Effect. Adequate rights of access to public roads and ways are available to the Property for unrestricted ingress and egress and otherwise to permit utilization of the Property for their intended purposes, and all such public roads
and ways have been completed and dedicated to public use. 
  
 G.
Condition of Property. The Property, including the Personal Property, is in good condition and repair and well maintained, ordinary wear and tear excepted, fully equipped and operational, free from structural defects, safe and properly
lighted. 
  

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 H. Utilities. Adequate public utilities are available at the Property to permit utilization of the
Property as a Permitted Concept and all utility connection fees and use charges will have been paid in full. 
  
 I. Area Development; Wetlands. No condemnation or eminent domain proceedings affecting the Property have been commenced or, to the best of
Lessee’s knowledge, are contemplated. The Property is not and, to the best of Lessee’s knowledge, the real property bordering the Property is not designated by any Governmental Authority as a wetlands. 
  
 J. Financial Information. Lessee has delivered to Lessor certain
financial statements and other information concerning the Lessee Parties in connection with this Lease (collectively, the “Financial Information”). The Financial Information is true, correct and complete in all material respects; there
have been no amendments to the Financial Information since the date such Financial Information was prepared or delivered to Lessor. Lessee understands that Lessor is relying upon the Financial Information and Lessee represents that such reliance is
reasonable. All financial statements included in the Financial Information were prepared in accordance with GAAP and fairly present as of the date of such financial statements the financial condition of each individual or entity to which they
pertain. No change has occurred with respect to the financial condition of any of the Lessee Parties and/or the Property as reflected in the Financial Information which has not been disclosed in writing to Lessor or has had, or could reasonably be
expected to result in, a Material Adverse Effect. 
  
 K.
Zoning; Compliance With Laws. The Property is in compliance with all applicable zoning requirements, and the use of the Property as a Permitted Concept does not constitute a nonconforming use under applicable zoning requirements. The Lessee
Parties and the Property is in compliance with all Applicable Regulations except for such noncompliance which has not had, and would not reasonably be expected to result in, a Material Adverse Effect. 
  
 L. Environmental. Except as disclosed in the Questionnaires:

  
 (1) The Property and the Lessee Parties are not in violation
of, or subject to, any pending or, to Lessee’s actual knowledge, threatened investigation or inquiry by any Governmental Authority or to any remedial obligations under any Environmental Laws, and this representation and warranty would continue
to be true and correct following disclosure to the applicable Governmental Authorities of all relevant facts, conditions and circumstances, if any, pertaining to the Property; 
  
 (2) All permits, licenses or similar authorizations required to construct, occupy, operate or use any buildings,
improvements, fixtures and equipment forming a part of the Property by reason of any Environmental Laws have been obtained; 
  
 (3) No Hazardous Materials have been used, handled, manufactured, generated, produced, stored, treated, processed, transferred, disposed of or otherwise
Released in, on, under, from or about the Property, except in Permitted Amounts; 
  
 (4) The Property does not contain Hazardous Materials, except in Permitted Amounts, and all USTs located on or about the Property, if any, are in full compliance with all Environmental Laws; 
  
 (5) There is no threat of any Release migrating to the Property in excess of
Permitted Amounts; 
  
 (6) There is no past or present
non-compliance with Environmental Laws, or with permits issued pursuant thereto, in connection with the Property; 
  
 (7) None of the Lessee Parties has received any written or oral notice or other communication from any person or entity (including but not limited to a
Governmental Authority) relating to Hazardous Materials or USTs or Remediation thereof in excess of Permitted Amounts, of possible 

  

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liability of any person or entity pursuant to any Environmental Law, other environmental conditions in connection with the Property, or any actual or
potential administrative or judicial proceedings in connection with any of the foregoing; 
  
 (8) All information known to any of the Lessee Parties or contained in the files of any of the Lessee Parties relating to any Environmental Condition or Releases of Hazardous Materials in, on, under or from the
Property, other than in Permitted Amounts, has been provided to Lessor, including, without limitation, information relating to all prior Remediation; 
  
 (9) The Property has been kept free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law (the “Environmental
Liens”); and none of the Lessee Parties has allowed any tenant or other user of the Property to do any act that materially increased the dangers to human health or the environment, posed an unreasonable risk of harm to any person or entity
(whether on or off the Property), impaired the value of the Property in any material respect, is contrary to any requirement of any insurer, constituted a public or private nuisance, constituted waste, or violated any covenant, condition, agreement
or easement applicable to the Property; 
  
 (10) The information
and disclosures in the Questionnaires are true, correct and complete in all material respects, and the person or persons executing the Questionnaires were duly authorized to do so; and 
  
 M. No Mechanics’ Liens. There are no delinquent accounts payable or mechanics’ liens in favor of any
materialman, laborer, or any other person or entity in connection with labor or materials furnished to or performed on any portion of the Property; and no work has been performed or is in progress nor have materials been supplied to the Property or
agreements entered into for work to be performed or materials to be supplied to the Property prior to the Effective Date, which will be delinquent on or before the Effective Date. 
  
 N. Title to Personal Property. Lessee is the owner of all Personal Property, free and clear of all liens,
encumbrances, charges and security interests of any nature whatsoever, except the liens created by the Lease and except the liens created by a loan from Lender, and no Affiliate of Lessee owns any of the Personal Property. 
  
 O. Reserved. 
  
 Q. Money Laundering. (1) Lessee has taken all reasonable measures, in accordance with all applicable Anti-Money
Laundering Laws, with respect to each holder of a direct or indirect interest in the Lessee Parties, to assure that funds invested by such holders in the Lessee Parties are derived from legal sources. 
  
 (2) To Lessee’s knowledge after making due inquiry, neither any of the
Lessee Parties nor any holder of a direct or indirect interest in the Lessee Parties (a) is under investigation by any Governmental Authority for, or has been charged with or convicted of, any violation of any Anti-Money Laundering Laws, or drug
trafficking, terrorist-related activities or other money laundering predicated crimes or a violation of the BSA, (b) has been assessed civil penalties under these or related laws, or (c) has had any of its funds seized or forfeited in an action
under these or related laws. 
  
 (3) Lessee has taken reasonable
steps, consistent with industry practice for comparable organizations and in any event as required by law, to ensure that the Lessee Parties are and shall be in compliance with all Anti-Money Laundering Laws and laws, regulations, and governmental
guidance for the prevention of terrorism, terrorist financing and drug trafficking. 
  

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 7. Transfer, Participation and Securitization; Compliance Certificates. Lessee covenants to
Lessor for so long as this Lease is in effect as follows: 
  
 A.
Transfer, Participation and/or Securitization Covenants. (i) Lessee agrees to cooperate in good faith with Lessor and Lender in connection with any Transfer, Participation and/or Securitization of any of the Note, Mortgage and/or any of the
Loan Documents, or any or all servicing rights with respect thereto, including, without limitation, (X) providing such documents, financial and other data, and other information and materials (the “Disclosures”) which would typically be
required with respect to the Lessee Parties by a purchaser, transferee, assignee, servicer, participant, investor or rating agency involved with respect to such Transfer, Participation and/or Securitization, as applicable; provided, however, the
Lessee Parties shall not be required to make Disclosures of any confidential information or any information which has not previously been made public unless required by applicable federal or state securities laws; and (Y) amending the terms of this
Lease to the extent necessary so as to satisfy the requirements of purchasers, transferees, assignees, servicers, participants, investors or selected rating agencies involved in any such Transfer, Participation or Securitization, so long as such
amendments would not have a material adverse effect upon the Lessee Parties or the transactions contemplated by this Lease. Lessor shall be responsible for causing Lender to prepare at Lender’s expense any documents evidencing the amendments
referred to in the preceding subitem (Y). 
  
 (ii) Lessee consents
to Lessor and Lender providing the Disclosures, as well as any other information which Lessor and Lender may now have or hereafter acquire with respect to the Property or the financial condition of the Lessee Parties to each purchaser, transferee,
assignee, servicer, participant, investor or rating agency involved with respect to such Transfer, Participation and/or Securitization, as applicable. Lessee shall pay its own attorney fees and other out-of-pocket expenses incurred in connection
with the performance of its obligations under this Section 7.B. 
  
 B. Compliance Certificate. Within 60 days after the end of each fiscal year of Lessee, Lessee shall deliver a compliance certificate to Lessor in a form to be provided by Lessor in order to establish that Lessee is in compliance in
all material respects with all of its obligations, duties and covenants under this Lease. 
  
 8. Rentals To Be Net to Lessor. The Base Annual Rental payable hereunder shall be net to Lessor, so that this Lease shall yield to Lessor the rentals specified during the Lease Term, and that all costs,
expenses and obligations of every kind and nature whatsoever relating to the Property shall be performed and paid by Lessee. 
  
 9. Taxes and Assessments. Lessee shall pay, prior to the earlier of delinquency or the accrual of interest on the unpaid balance, all taxes
and assessments of every type or nature assessed against, imposed upon or arising with respect to Lessor, the Property, this Lease, the rental or other payments due under this Lease or Lessee during the Lease Term which affect in any manner the net
return realized by Lessor under this Lease, including, without limitation, the following: 
  
 A. All taxes and assessments upon the Property or any part thereof and upon any Personal Property, whether belonging to Lessor or Lessee, or any tax or charge levied in lieu of such taxes and assessments; 

 
 B. All taxes, charges, license fees and or similar fees imposed by reason
of the use of the Property by Lessee; and 
  
 C. All excise,
transaction, privilege, license, sales, use and other taxes upon the rental or other payments due under this Lease, the leasehold estate of either party or the activities of either party pursuant to this Lease. 
  
 Notwithstanding the foregoing, but without limiting the preceding obligation
of Lessee to pay all taxes which are imposed on the rental or other payments due under this Lease, in no event will Lessee be required to pay any net income taxes (i.e., taxes which are determined taking into account deductions for depreciation,
interest, taxes and ordinary and necessary business expenses) or franchise taxes (unless imposed in lieu of other taxes that would otherwise be the obligation of Lessee under this Lease, including, without limitation, any “gross receipts
tax” or any similar tax based upon gross income or 

  

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receipts of Lessor which does not take into account deductions from depreciation, interest, taxes and/or ordinary or necessary business expenses) of Lessor,
any transfer taxes of Lessor, or any tax imposed with respect to the sale, exchange or other disposition by Lessor, in whole or in part, of the Property or Lessor’s interest in this Lease (other than transfer or recordation taxes imposed in
connection with the transfer of the Property to Lessee or the termination of this Lease pursuant to the provisions of this Lease). 
  
 All taxing authorities shall be instructed to send all tax and assessment invoices to Lessee and Lessee shall promptly provide Lessor and Lender with
copies of all tax and assessment invoices received by Lessee. Upon request, Lessee shall also provide Lessor and Lender with evidence that such invoices were paid in a timely fashion. Lessee may, at its own expense, contest or cause to be contested,
by appropriate legal proceedings conducted in good faith and with due diligence, the amount or validity or application, in whole or in part, of any item specified in this Section or lien therefor, provided that (i) Lessee shall provide written
notice to Lessor of any contest involving more than $10,000.00, (ii) such proceeding shall suspend the collection thereof from the Property or any interest therein, (iii) neither the Property nor any interest therein would be in any danger of being
sold, forfeited or lost by reason of such proceedings, (iv) no Event of Default has occurred and is continuing, and (v) Lessee shall have deposited with Lessor adequate reserves for the payment of the taxes, together with all interest and penalties
thereon, unless paid in full under protest, or Lessee shall have furnished the security as may be required in the proceeding or as may be required by Lessor to insure payment of any contested taxes. 
  
 10. Utilities. Lessee shall contract, in its own name, for and
pay when due all charges for the connection and use of water, gas, electricity, telephone, garbage collection, sewer use and other utility services supplied to the Property during the Lease Term. Under no circumstances shall Lessor be responsible
for any interruption of any utility service. 
  
 11.
Insurance. Throughout the Lease Term, Lessee shall maintain with respect to the Property, at its sole expense, the following types and amounts of insurance (which may be included under a blanket insurance policy if all the other terms
hereof are satisfied): 
  
 A. Insurance against loss, damage or
destruction by fire and other casualty, including theft, vandalism and malicious mischief, flood (for the Property which is in a location designated by the Federal Emergency Management Administration as a Special Flood Hazard Area), earthquake (for
the Property which is in an area subject to destructive earthquakes within recorded history), boiler explosion (for the Property with a boiler), plate glass breakage, sprinkler damage (for the Property which has a sprinkler system), all matters
covered by a standard extended coverage endorsement, special coverage endorsement commonly known as an “all-risk” endorsement and such other risks as Lessor may reasonably require, insuring the Property for not less than 100% of their full
insurable replacement cost. 
  
 B. Commercial general liability
and property damage insurance, including a products liability clause, covering Lessor and Lessee against bodily injury liability, property damage liability and automobile bodily injury and property damage liability, including without limitation any
liability arising out of the ownership, maintenance, repair, condition or operation of the Property or adjoining ways, streets or sidewalks and, if applicable, insurance covering Lessor and Lessee against liability arising from the sale of liquor,
beer or wine on the Property. Such insurance policy or policies shall contain a broad form contractual liability endorsement under which the insurer agrees to insure Lessee’s obligations under Section 19 hereof to the extent insurable, and a
“severability of interest” clause or endorsement which precludes the insurer from denying the claim of Lessee or Lessor because of the negligence or other acts of the other, shall be in amounts of not less than $1,000,000.00 per injury and
occurrence with respect to any insured liability, whether for personal injury or property damage, or such higher limits as Lessor may reasonably require from time to time, and shall be of form and substance satisfactory to Lessor. 
  
 C. Business income insurance or rental interruption insurance, as requested
by Lessor, equal to 100% of the Base Annual Rental for a period of not less than six months. 
  

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 D. State Worker’s compensation insurance in the statutorily mandated limits, employer’s
liability insurance with limits not less than $500,000 or such greater amount as Lessor may from time to time require and such other insurance as may be necessary to comply with applicable laws. 
  
 E. Such other insurance as may from time to time be reasonably required by
Lessor or Lender in order to protect their respective interests with respect to the Property. 
  
 All insurance policies shall: 
  
 (i) Provide for a waiver of subrogation by the insurer as to claims against Lessor, Lender and their respective employees and agents and provide that such insurance cannot be unreasonably cancelled, invalidated or suspended on account of
the conduct of Lessee, its officers, directors, employees or agents; 
  
 (ii) Provide that any “no other insurance” clause in the insurance policy shall exclude any policies of insurance maintained by Lessor or Lender and that the insurance policy shall not be brought into contribution with insurance
maintained by Lessor or Lender; 
  
 (iii) Contain a standard
without contribution mortgage clause endorsement in favor of Lender and its successors and assigns as their interests may appear and any other party designated by Lessor; 
  
 (iv) Provide that the policy of insurance shall not be terminated, cancelled or substantially modified without at least
thirty (30) days’ prior written notice to Lessor, Lender and to any other party covered by any standard mortgage clause endorsement; 
  
 (v) Provide that the insurer shall not have the option to restore the Property if Lessor or Lessee elects to terminate this Lease in accordance with the
terms hereof; 
  
 (vi) Be issued by insurance companies licensed
to do business in the states in which the Property is located and which are rated A:VI or better by Best’s Insurance Guide or are otherwise approved by Lessor; and 
  
 (vii) Provide that the insurer shall not deny a claim because of the negligence of Lessee, anyone acting for Lessee or any
tenant or other occupant of the Property. 
  
 It is expressly
understood and agreed that the foregoing minimum limits of insurance coverage shall not limit the liability of Lessee for its acts or omissions as provided in this Lease. All liability insurance policies (with the exception of worker’s
compensation insurance to the extent not available under statutory law), shall designate Lessor and Lender and their respective successors and assigns as additional insureds as their interests may appear and shall be payable as set forth in Section
21 hereof. All such policies shall be written as primary policies, with deductibles not to exceed 10% of the amount of coverage. Any other policies, including any policy now or hereafter carried by Lessor or Lender, shall serve as excess coverage.
Lessee shall procure policies for all insurance for periods of not less than one year and shall provide to Lessor and Lender certificates of insurance or, upon the request of Lessor or Lender, duplicate originals of insurance policies evidencing
that insurance satisfying the requirements of this Lease is in effect at all times. In the event of any transfer by Lessor of Lessor’s interest in the Property or any financing or refinancing of Lessor’s interest in the Property, Lessee
shall, upon not less than ten (10) days’ prior written notice, deliver to Lessor or any Lender providing such financing or refinancing, as the case may be, certificates of all insurance required to be maintained by Lessee hereunder naming such
transferee or such Lender, as the case may be, as an additional named insured to the extent required herein effective as of the date of such transfer, financing or refinancing. 
  

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 12. Tax and Insurance Impound. Upon the occurrence of an Event of Default, Lessor may
require Lessee to pay to Lessor sums which will provide an impound account (which shall not be deemed a trust fund) for paying up to the next one year of taxes, assessments and/or insurance premiums for the Property. Upon such requirement, Lessor
will estimate the amounts needed for such purposes and will notify Lessee to pay the same to Lessor in equal monthly installments, as nearly as practicable, in addition to all other sums due under this Lease. Should additional funds be required at
any time, Lessee shall pay the same to Lessor on demand. Lessee shall advise Lessor of all taxes and insurance bills which are due and shall cooperate fully with Lessor in assuring that the same are paid. Lessor may deposit all impounded funds in
accounts insured by any federal or state agency and may commingle such funds with other funds and accounts of Lessor. Interest or other gains from such funds, if any, shall be the sole property of Lessor. If an Event of Default shall occur
subsequent to Lessor requiring the establishment of an impound account pursuant to this Section, Lessor may apply all impounded funds against any sums due from Lessee to Lessor. Lessor shall give to Lessee an annual accounting showing all credits
and debits to and from such impounded funds received from Lessee. 
  
 13. Payment of Rental and Other Sums. All rental and other sums which Lessee is required to pay hereunder shall be the unconditional obligation of Lessee and shall be payable in full when due without any setoff, abatement,
deferment, deduction or counterclaim whatsoever Any delinquent payment (that is, any payment not made within five calendar days after the date when due) shall, in addition to any other remedy of Lessor, incur a late charge of 5% (which late charge
is intended to compensate Lessor for the cost of handling and processing such delinquent payment and should not be considered interest) and bear interest at the Default Rate, such interest to be computed from and including the date such payment was
due through and including the date of the payment; provided, however, in no event shall Lessee be obligated to pay a sum of late charge and interest higher than the maximum legal rate then in effect. 
  
 14. Use. Except as set forth below, the Property shall be used
solely for the operation of a Permitted Concept and for no other purpose. Lessee shall occupy the Property commencing on the Effective Date and, except as set forth below and except during periods when the Property is untenantable by reason of fire
or other casualty or condemnation (provided, however, during all such periods while the Property is untenantable, Lessee shall strictly comply with the terms and conditions of Section 21 of this Lease), Lessee shall at all times during the Lease
Term occupy the Property and diligently operate its business on the Property. Lessee may cease diligent operation of business at the Property for a period not to exceed 90 days and may do so only once with respect to the Property within any
five-year period during the Lease Term. If Lessee does discontinue operation as permitted by this Section, Lessee shall (i) give written notice to Lessor within 10 days after Lessee elects to cease operation, (ii) provide adequate protection and
maintenance of the Property during any period of vacancy, (iii) comply with all Applicable Regulations and otherwise comply with the terms and conditions of this Lease other than the continuous use covenant set forth in this Section, and (iv) pay
all costs necessary to restore the Property to its condition on the day operation of the business ceased at such time as the Property is reopened for Lessee’s business operations or other substituted use approved by Lessor as contemplated
below. Notwithstanding anything herein to the contrary, Lessee shall pay the Base Monthly Rental on the first day of each month during any period in which Lessee discontinues operation. 
  
 Lessee shall not, by itself or through any assignment, sublease or other type of transfer, convert the Property to an
alternative use during the Lease Term without Lessor’s consent, which consent shall not be unreasonably withheld or delayed. Lessor may consider any or all of the following in determining whether to grant its consent, without being deemed to be
unreasonable: (i) whether the rental paid to Lessor would be equal to or greater than the anticipated rental assuming continued existing use, (ii) whether the proposed rental to be paid to Lessor is reasonable considering the converted use of the
Property and the customary rental prevailing in the community for such use, (iii) whether the converted use will be consistent with the highest and best use of the Property, and (iv) whether the converted use will increase Lessor’s risks or
decrease the value of the Property. 
  
 15. Compliance with
Laws Generally. A. Lessee’s use and occupation of the Property, and the condition thereof, shall, at Lessee’s sole cost and expense, comply with all Applicable Regulations 

  

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now or hereafter in effect and all restrictions, covenants and encumbrances of record with respect to the Property. In addition, the Lessee Parties shall
comply with all Applicable Regulations now or hereafter in effect, including, without limitation, the Terrorism Laws and Anti-Money Laundering Laws. Without limiting the generality of the other provisions of this Section, Lessee shall comply with
the ADA, and all regulations promulgated thereunder, as it affects the Property. 
  
 B. Lessee will not permit any act or condition to exist on or about the Property which will increase any insurance rate thereon, except when such acts are required in the normal course of its business and Lessee shall
pay for such increase. 
  
 C. Lessee shall maintain in full force
and effect all licenses and permits, both governmental and private, required to use and operate the Property as a Permitted Concept. 
  
 16. Compliance With Environmental Laws. Lessee covenants to Lessor and Environmental Insurer for so long as this Lease is in effect that:

  
 (1) The Property, the Lessee Parties and any other operator
or user of the Property shall not be in violation of or subject to any investigation or inquiry by any Governmental Authority or subject to any Remediation obligations under any Environmental Laws. 
  
 (2) All uses and operations on or of the Property, whether by Lessee or any
other person or entity, shall be in compliance with all Environmental Laws and permits issued pursuant thereto. 
  
 (3) There shall be no Releases or Hazardous Materials in, on, under or from the Property, except in Permitted Amounts. 
  
 (4) Lessee shall keep the Property, or cause the Property to be kept, free
and clear of all Environmental Liens. 
  
 (5) Lessee shall not do
or allow any tenant or other user of the Property to do any act that (a) materially increases the dangers to human health or the environment, (b) poses an unreasonable risk of harm to any person or entity (whether on or off the Property), (c)
impairs or is reasonably likely to impair the value of the Property, (d) is contrary to any requirement of any insurer, (e) constitutes a public or private nuisance or constitutes waste, or (f) violates any covenant, condition, agreement or easement
applicable to the Property. 
  
 (6) Lessee shall immediately
notify Lessor in writing upon Lessee obtaining actual knowledge of: 
  
 (a) any presence of Releases or Threatened Releases in, on, under, from or migrating towards the Property, in excess of Permitted Amounts, including, without limitation, the presence on or under the Property, or the
escape, seepage, leakage, spillage, discharge, emission or release from any USTs on, above or under the Property, of any Hazardous Materials, apparent or real, in excess of Permitted Amounts; 
  
 (b) any non-compliance with any Environmental Laws related
in any way to the Property; 
  
 (c) any
Environmental Lien or any act or omission which could reasonably be expected to result in the imposition of an Environmental Lien; 
  
 (d) any required or proposed Remediation of environmental conditions relating to the Property, including, without limitation, any and all
enforcement, clean-up, remedial, removal or other governmental or regulatory actions threatened, instituted or completed pursuant to any of the Environmental Laws affecting the Property; 
  

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 (e) any written or oral notice or other communication of which any of the Lessee Parties
becomes aware from any source whatsoever (including but not limited to a Governmental Authority) relating in any way to Hazardous Materials, USTs or Remediation thereof, possible liability of any person or entity pursuant to any Environmental Law,
other environmental conditions in connection with the Property, or any actual or potential administrative or judicial proceedings in connection with anything referred to in this Lease; or 
  
 (f) any investigation or inquiry initiated by any
Governmental Authority relating to the Environmental Condition of the Property. 
  
 (7) Lessee shall, at its sole cost and expense: 
  
 (a) perform any environmental site assessment or other investigation of environmental conditions in connection with the Property as may be
reasonably requested by Lessor (including but not limited to sampling, testing and analysis of soil, water, air, building materials and other materials and substances whether solid, liquid or gas), and share with Lessor and Environmental Insurer the
reports and other results thereof, and Lessor and other Indemnified Parties shall be entitled to rely on such reports and other results thereof; and 
  
 (b) have the Property inspected as may be required by any Environmental Laws for seepage, spillage and other environmental concerns. If
any USTs are located at the Property, Lessee shall maintain and monitor such USTs in accordance with all Environmental Laws. Lessee shall provide Lessor with written certified results of all inspections performed on the Property. All costs and
expenses associated with the inspection, preparation and certification of results, as well as those associated with any corrective action, shall be paid by Lessee. All inspections and tests performed on the Property shall be conducted in compliance
with all Environmental Laws. 
  
 (8) Lessee shall, at its sole
cost and expense, and without limiting the rights of Lessor under any other provision of this Lease, comply with all reasonable written requests of Lessor to: 
  

(a) reasonably effectuate Remediation of any condition (including but not limited to a Release) in, on, under or from the Property;

  
 (b) comply with any Environmental Law;

  
 (c) comply with any directive from any
Governmental Authority; and 
  
 (d) take any
other reasonable action necessary or appropriate for protection of human health or the environment. 
  
 (9) Lessor, Lender, and any other person or entity designated by Lessor, including but not limited to any receiver, any representative of a Governmental
Authority, and any environmental consultant, shall have the right, but not the obligation, to enter upon the Property during normal business hours or at any time in the event of an emergency (including without limitation in connection with any
Securitization, Participation or Transfer or in connection with a proposed sale or conveyance of the Property or a proposed financing or refinancing secured by the Property or in connection with the exercise of any remedies set forth in this Lease,
the Mortgages or the other Loan Documents, as applicable) to assess any and all aspects of the environmental condition of the Property and its use, including but not limited to conducting any environmental assessment or audit (the scope of which
shall be determined in the sole and absolute discretion of the party conducting the assessment) and taking samples of soil, groundwater or other water, air, or building materials, and conducting other invasive testing. Lessee shall cooperate with
and provide access to Lessor, Lender, Environmental Insurer and any other person or entity designated by Lessor. Any such assessment and investigation shall be at Lessee’s sole cost and expense if, at the time such assessment or investigation
is undertaken, the party 

  

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conducting the assessment or investigation has a reasonable basis for believing that a Release has occurred at the Property in excess of Permitted Amounts or
if an Event of Default has occurred and is continuing. Otherwise, any such assessment and investigation shall be at the sole cost and expense of the party conducting such assessment and investigation. 
  
 The obligations of Lessee and the rights and remedies of Lessor under this
Section shall survive the termination, expiration and/or release of this Lease. 
  
 17. Condition of Property; Maintenance. Lessee shall (i) maintain the Property in good condition and repair, subject to reasonable and ordinary wear and tear, free from actual or constructive waste, (ii)
operate, remodel, update and modernize the Property in accordance with those standards adopted from time to time by Lessee on a system-wide basis for Permitted Concepts, with such remodeling and modernizing being undertaken in accordance with
Lessee’s system-wide timing schedules for such activities, and (iii) pay all operating costs of the Property in the ordinary course of business. Lessee waives any right to (i) require Lessor to maintain, repair or rebuild all or any part of the
Property or (ii) make repairs at the expense of Lessor, pursuant to any Applicable Regulations at any time in effect. 
  
 18. Alterations and Improvements. Lessee shall not alter the exterior, structural, plumbing or electrical elements of the Property in any
manner without the consent of Lessor, which consent shall not be unreasonably withheld or conditioned; provided, however, Lessee may undertake nonstructural alterations to the Property costing less than $100,000 without Lessor’s consent. For
purposes of this Lease, alterations to the exterior, structural, plumbing or electrical elements of the Property shall mean: 
  
 (i) alterations which affect the foundation or “footprint” of the improvements at the Property; 
  
 (ii) alterations which involve the structural elements of the improvements at
the Property, such as a load-bearing wall, structural beams, columns, supports or roof; or 
  
 (iii) alterations which materially affect any of the building systems, including, without limitation, the electrical systems, plumbing, HVAC and fire and safety systems. 
  
 If Lessor’s consent is required hereunder and Lessor consents to the making of any such
alterations, the same shall be made by Lessee at Lessee’s sole expense by a licensed contractor and according to plans and specifications approved by Lessor and subject to such other conditions as Lessor shall require. Any work at any time
commenced by Lessee on the Property shall be prosecuted diligently to completion, shall be of good workmanship and materials and shall comply fully with all the terms of this Lease. Upon completion of any alterations, Lessee shall promptly provide
Lessor with (i) evidence of full payment to all laborers and materialmen contributing to the alterations, (ii) an architect’s certificate certifying the alterations to have been completed in conformity with the plans and specifications, (iii) a
certificate of occupancy (if the alterations are of such a nature as would require the issuance of a certificate of occupancy), and (iv) any other documents or information reasonably requested by Lessor. Any addition to or alteration of the Property
shall automatically be deemed a part of the Property and belong to Lessor, and Lessee shall execute and deliver to Lessor such instruments as Lessor may require to evidence the ownership by Lessor of such addition or alteration. Lessee shall execute
and file or record, as appropriate, a “Notice of Non-Responsibility,” or any equivalent notice permitted under applicable law in the state where the Property is located. 
  
 19. Indemnification. A. Lessee shall, at its sole cost and expense, protect, defend, indemnify, release and
hold harmless each of the Indemnified Parties for, from and against any and all Losses (excluding Losses suffered by an Indemnified Party arising out of the gross negligence or willful misconduct of such Indemnified Party; provided, however, that
the term “gross negligence” shall not include gross negligence imputed as a matter of law to any of the Indemnified Parties solely by reason of the Lessor’s interest in the Property or Lessor’s failure to act in respect of
matters which are or were the obligation of Lessee under this Lease) caused by, incurred or resulting from Lessee’s operations of or relating in any manner to the Property, whether relating to their original design or construction, latent


  

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defects, alteration, maintenance, use by Lessee or any person thereon, supervision or otherwise, or from any breach of, default under, or failure to perform,
any term or provision of this Lease by Lessee, its officers, employees, agents or other persons, or to which any Indemnified Party is subject because of Lessor’s interest in the Property, including, without limitation, Losses arising from (1)
any accident, injury to or death of any person or loss of or damage to property occurring in, on or about the Property or portion thereof or on the adjoining sidewalks, curbs, parking areas, streets or ways, (2) any use, non-use or condition in, on
or about, or possession, alteration, repair, operation, maintenance or management of, the Property or any portion thereof or on the adjoining sidewalks, curbs, parking areas, streets or ways, (3) any representation or warranty made herein by Lessee,
in any certificate delivered in connection herewith or in any other agreement to which Lessee is a party or pursuant thereto being false or misleading in any material respect as of the date of such representation or warranty was made, (4)
performance of any labor or services or the furnishing of any materials or other property in respect to the Property or any portion thereof, (5) any taxes, assessments or other charges which Lessee is required to pay under Section 9, (6) any lien,
encumbrance or claim arising on or against the Property or any portion thereof under any Applicable Regulation or otherwise which Lessee is obligated hereunder to remove and discharge, or the failure to comply with any Applicable Regulation, (7) the
claims of any invitees, patrons, licensees or subtenants of all or any portion of the Property or any Person acting through or under Lessee or otherwise acting under or as a consequence of this Lease or any sublease, (8) any act or omission of
Lessee or its agents, contractors, licensees, subtenants or invitees, (9) any contest referred to in Section 9. 
  
 B. Lessee shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless each of the Indemnified Parties for, from and against
any and all Losses (excluding Losses suffered by an Indemnified Party directly arising out of such Indemnified Party’s gross negligence or willful misconduct; provided, however, that the term “gross negligence” shall not include gross
negligence imputed as a matter of law to any of the Indemnified Parties solely by reason of the Lessor’s interest in the Property or Lessor’s failure to act in respect of matters which are or were the obligation of Lessee under this Lease)
and costs of Remediation (whether or not performed voluntarily), engineers’ fees, environmental consultants’ fees, and costs of investigation (including but not limited to sampling, testing, and analysis of soil, water, air, building
materials and other materials and substances whether solid, liquid or gas) imposed upon or incurred by or asserted against any Indemnified Parties, and directly or indirectly arising out of or in any way relating to any one or more of the following:

  
 (1) any presence of any Hazardous Materials or USTs in, on,
above, or under the Property; 
  
 (2) any past, present or
Threatened Release in, on, above, under or from the Property; 
  
 (3) any activity by Lessee, any person or entity affiliated with Lessee or any tenant or other user of the Property in connection with any actual, proposed or threatened use, treatment, storage, holding, existence, disposition or other
Release, generation, production, manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or transportation to or from the Property of any Hazardous Materials or USTs at any time located in, under, on or above
the Property; 
  
 (4) any activity by Lessee, any person or entity
affiliated with Lessee or any tenant or other user of the Property in connection with any actual or proposed Remediation of any Hazardous Materials or USTs at any time located in, under, on or above the Property, whether or not such Remediation is
voluntary or pursuant to court or administrative order, including but not limited to any removal, remedial or corrective action; 
  
 (5) any past, present or threatened non-compliance or violations of any Environmental Laws (or permits issued pursuant to any Environmental Law) in
connection with the Property or operations thereon, including but not limited to any failure by Lessee, any person or entity affiliated with Lessee or any tenant or other user of the Property to comply with any order of any Governmental Authority in
connection with any Environmental Laws; 
  

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 (6) the imposition, recording or filing or the threatened imposition, recording or filing of any
Environmental Lien encumbering the Property; 
  
 (7) any
administrative processes or proceedings or judicial proceedings in any way connected with any matter addressed in this Lease; 
  
 (8) any past, present or threatened injury to, destruction of or loss of natural resources in any way connected with the Property, including but not
limited to costs to investigate and assess such injury, destruction or loss; 
  
 (9) any acts of Lessee, any person or entity affiliated with Lessee or any tenant or other user of the Property in arranging for disposal or treatment, or arranging with a transporter for transport for disposal or
treatment, of Hazardous Materials or USTs owned or possessed by Lessee, any person or entity affiliated with Lessee or any tenant or other user, at any facility or incineration vessel owned or operated by another person or entity and containing such
or similar Hazardous Materials or USTs; 
  
 (10) any acts of
Lessee, any person or entity affiliated with Lessee or any tenant or other user of the Property, in accepting any Hazardous Materials or USTs for transport to disposal or treatment facilities, incineration vessels or sites selected by Lessee, any
person or entity affiliated with Lessee or any tenant or other user of the Property, from which there is a Release, or a Threatened Release of any Hazardous Materials which causes the incurrence of costs for Remediation; 
  
 (11) any personal injury, wrongful death, or property damage arising under
any statutory or common law or tort law theory, including but not limited to damages assessed for the maintenance of a private or public nuisance or for the conducting of an abnormally dangerous activity on or near the Property; or 
  
 (12) any misrepresentation or inaccuracy in any representation or warranty or
material breach or failure to perform any covenants or other obligations pursuant to this Lease. 
  
 C. It is expressly understood and agreed that Lessee’s obligations under this Section shall survive the expiration or earlier termination of this
Lease for any reason. 
  
 20. Quiet Enjoyment. So
long as Lessee shall pay the rental and other sums herein provided and shall keep and perform all of the terms, covenants and conditions on its part herein contained, Lessee shall have, subject and subordinate to Lessor’s rights herein, the
right to the peaceful and quiet occupancy of the Property. Notwithstanding the foregoing, however, in no event shall Lessee be entitled to bring any action against Lessor to enforce its rights hereunder if an Event of Default shall have occurred and
be continuing. 
  
 21. Condemnation or Destruction.
A. In the event of a taking of all or any part of the Property for any public or quasi-public purpose by any lawful power or authority by exercise of the right of condemnation or eminent domain or by agreement between Lessor, Lessee and those
authorized to exercise such right (“Taking”) or the commencement of any proceedings or negotiations which might result in a Taking or any material damage to or destruction of the Property or any part thereof (“Casualty”), Lessee
will promptly give written notice thereof to Lessor, generally describing the nature and extent of such Taking, proceedings, negotiations or Casualty and including copies of any documents or notices received in connection therewith. Thereafter,
Lessee shall promptly send Lessor copies of all correspondence and pleadings relating to any such Taking, proceedings, negotiations or Casualty. During all periods of time following a Casualty, Lessee shall ensure that the subject Property is secure
and does not pose any risk of harm to adjoining property owners or occupants or third-parties. 
  
 B. In case of a Taking of the whole of the Property, other than for temporary use (“Total Taking”), this Lease shall terminate as of the date of such Total Taking and all rentals, sums of money and other
charges provided to be paid by Lessee shall be apportioned and paid to the date of such Total 

  

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Taking; provided, however, in the event of a Total Taking, if the net award or payment, after deducting all costs, fees and expenses incident to the
collection thereof (the “Net Amount”), for such Total Taking is less than the sum of the outstanding principal and accrued but unpaid interest due under the Note and all other sums payable by Lessor to Lender under the other Loan Documents
(collectively, the “Obligations”), Lessee shall pay to Lender within 10 days of Lessor’s receipt of the Net Amount an amount equal to the difference between the Obligations and the Net Amount, if any. Total Taking shall include a
taking of substantially all the Property if, in the sole determination of Lessor, the remainder of the Property is not useable and cannot be made useable for the purposes provided herein. Lessor shall be entitled to receive the entire award or
payment in connection with any taking of the Property without deduction for any estate vested in Lessee by this Lease. Lessee hereby expressly assigns to Lessor all of its right, title and interest in and to every such award or payment and agrees
that Lessee shall not be entitled to any award or payment for the value of Lessee’s leasehold interest in the Lease. Lessee shall be entitled to claim and receive any award or payment from the condemning authority expressly granted for the
taking of Lessee’s Personalty, the interruption of its business and moving expenses, but only if such claim or award does not adversely affect or interfere with the prosecution of Lessor’s claim for the Taking. Lessee shall promptly send
Lessor copies of all correspondence and pleadings relating to any such claim. 
  
 C. In case of a temporary use of all or any part of the Property by a Taking (“Temporary Taking”), this Lease shall remain in full force and effect without any reduction of Base Annual Rental, Additional
Rental or any other sum payable hereunder. Except as provided below, Lessee shall be entitled to the entire award for a Temporary Taking, whether paid by damages, rent or otherwise, unless the period of occupation and use by the condemning
authorities shall extend beyond the date of expiration of this Lease, in which case the award made for such Taking shall be apportioned between Lessor and Lessee as of the date of such expiration. At the termination of any such Temporary Taking,
Lessee will, at its own cost and expense and pursuant to the terms of Section 17 above, promptly commence and complete the restoration of the Property; provided, however, Lessee shall not be required to restore the Property if the Lease Term shall
expire prior to, or within one year after, the date of termination of the Temporary Taking, and in such event Lessor shall be entitled to recover all damages and awards arising out of the failure of the condemning authority to repair and restore the
Property at the expiration of such Temporary Taking. 
  
 D. In the
event of a Taking of less than all of the Property for other than a temporary use (“Partial Taking”) or of damage or destruction to all or any part of the Property, all awards, compensation or damages shall be paid to Lessor, and Lessor
shall have the option to (i) terminate this Lease, provided that Lessor shall have obtained Lender’s prior written consent, by notifying Lessee within 60 days after Lessee gives Lessor notice of such damage or destruction or that title has
vested in the taking authority or (ii) continue this Lease in effect, which election may be evidenced by either a notice from Lessor to Lessee or Lessor’s failure to notify Lessee that Lessor has elected to terminate this Lease within such
60-day period. Lessee shall have a period of 60 days after Lessor’s notice that it has elected to terminate this Lease during which to elect to continue this Lease on the terms herein provided. If Lessee does not elect to continue this Lease or
shall fail during such 60-day period to notify Lessor of Lessee’s intent to continue this Lease, then this Lease shall terminate as of the last day of the month during which such period expired. Lessee shall then immediately vacate and
surrender the Property, all obligations of either party hereunder shall cease as of the date of termination (provided, however, Lessee’s obligations to Lessor under Section 18 and Lessee’s obligations to pay Base Annual Rental, Additional
Rental and all other sums (whether payable to Lessor or a third-party) accruing under this Lease prior to the date of termination shall survive such termination) and Lessor may retain all such awards, compensation or damages. If Lessor elects not to
terminate this Lease, or if Lessor elects to terminate this Lease but Lessee elects to continue this Lease, then this Lease shall continue in full force and effect on the following terms: (i) all Base Annual Rental, Additional Rental and other sums
and obligations due under this Lease shall continue unabated, and (ii) Lessee shall promptly commence and diligently prosecute restoration of the Property to the same condition, as nearly as practicable, as prior to such partial condemnation, damage
or destruction as approved by Lessor. Lessor shall promptly make available in installments as restoration progresses an amount up to but not exceeding the amount of any award, compensation or damages received by Lessor, upon request of Lessee
accompanied by evidence reasonably satisfactory to Lessor that such amount has been paid or is due and payable and is properly a 

  

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part of such costs and that Lessee has complied with the terms of Section 18 above in connection with the restoration. Lessor shall be entitled to keep any
portion of such award, compensation or damages which may be in excess of the cost of restoration, and Lessee shall bear all additional costs, fees and expenses of such restoration in excess of the amount of any such award, compensation or damages.

  
 E. Any loss under any property damage insurance required to be
maintained by Lessee shall be adjusted by Lessor and Lessee. Subject to the terms and provisions of the Mortgage, any award relating to a Total Taking or a Partial Taking shall be adjusted by Lessor or, at Lessor’s election, Lessee.
Notwithstanding the foregoing or any other provisions of this Section to the contrary but subject to the terms and provisions of the Mortgage, if at the time of any Taking or any Casualty or at any time thereafter an Event of Default shall have
occurred and be continuing under this Lease, Lessor is hereby authorized and empowered but shall not be obligated, in the name and on behalf of Lessee and otherwise, to file and prosecute Lessee’s claim, if any, for an award on account of such
Taking or for insurance proceeds on account of such Casualty and to collect such award or proceeds and apply the same, after deducting all costs, fees and expenses incident to the collection thereof, to the curing of such default and any other then
existing default under this Lease and/or to the payment of any amounts owed by Lessee to Lessor under this Lease, in such order, priority and proportions as Lessor in its discretion shall deem proper. 
  
 F. Notwithstanding the foregoing, nothing in this Section 21 shall be
construed as limiting or otherwise adversely affecting the representations, warranties, covenants and characterizations set forth in Lease, including, without limitation, those provisions set forth in Section 3 of this Lease. 
  
 22. Inspection. Lessor and its authorized representatives shall
have the right during normal business hours (or at any time in the event of an emergency) to enter the Property or any part thereof at reasonable times in order to inspect the same and make photographic or other evidence concerning Lessee’s
compliance with the terms of this Lease or in order to show the Property to prospective purchasers and lenders. Lessee hereby waives any claim for damages for any injury or inconvenience to or interference with Lessee’s business, any loss of
occupancy or quiet enjoyment of the Property and any other loss occasioned by such entry so long as Lessor shall have used reasonable efforts not to unreasonably interrupt Lessee’s normal business operations. Lessee shall keep and maintain at
the Property or Lessee’s corporate headquarters full, complete and appropriate books of account and records of Lessee’s business relating to the Property in accordance with GAAP. Lessee’s books and records shall at all times be open
for inspection by Lessor, Lender and their respective auditors or other authorized representatives and shall show such information as is reasonably necessary to determine compliance with Lessor’s obligations under the Loan Documents.

  
 23. Trademark. A. Lessee is the owner of the
Trademark and agrees to use the Trademark in connection with the operation of the Facilities. 
  
 B. Lessee shall challenge all unauthorized uses or infringements of the Trademark, and Lessee shall prosecute any person or firm who unlawfully uses or attempts to use the Trademark in connection with the operation of
motel properties, or other facilities which may be competitive with the Leased Property or any portion thereof, or would otherwise materially affect the value or results of operations of the Leased Property or the prospects or goodwill of the
Lessor. Lessee shall also seek to cancel registrations or applications for registration of trademarks that infringe or reasonably appear to infringe on the trademark. The costs and expenses (including reasonable attorneys fees) incurred by Lessee in
connection with any such actions shall be reimbursed to it in full by Lessor provided that the Trademark is then being used by Lessee only in connection with the Leased Property. 
  
 C. Lessee agrees that it will indemnify and hold Lessor and Jameson Inns, Inc. harmless from all fines, suits, proceedings,
claims, demands, or actions of any kind or nature, from anyone whomsoever, arising or growing out of or otherwise connected with the use of the Trademark in connection with Lessee’s operation of the Property. 
  

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 24. Default, Remedies and Measure of Damages. A. Each of the following shall be an event of
default under this Lease (each, an “Event of Default”): 
  
 (i) If any representation or warranty of Lessee set forth in this Lease is false in any material respect, or if Lessee renders any statement or account which is false in any material respect; 
  
 (ii) If any rent or other monetary sum due under this Lease is not paid
within five days after the date when due; provided, however, notwithstanding the occurrence of such an Event of Default, Lessor shall not be entitled to exercise its remedies set forth below unless and until Lessor shall have given Lessee notice
thereof and a period of five days from the delivery of such notice shall have elapsed without such Event of Default being cured; 
  
 (iii) Subject to the provisions of Section 9, if Lessee fails to pay, prior to delinquency, any taxes, assessments or other charges the failure of which
to pay will result in the imposition of a lien against the Property pursuant to Applicable Regulations; 
  
 (iv) If any of the Lessee Parties becomes insolvent within the meaning of the Code, files or notifies Lessor that it intends to file a petition under the
Code, initiates a proceeding under any similar law or statute relating to bankruptcy, insolvency, reorganization, winding up or adjustment of debts (collectively, an “Action”), becomes the subject of either a petition under the Code or an
Action, or is not generally paying its debts as the same become due; 
  
 (v) If Lessee vacates or abandons the Property other than in accordance with the provisions of Section 14 of this Lease; 
  
 (vi) If Lessee shall fail to maintain insurance in accordance with the requirements of Section 11 of this Lease; 
  
 (vii) If Lessee fails to observe or perform any of the other covenants,
conditions, or obligations of this Lease; provided, however, if any such failure does not involve the payment of any monetary sum, is not willful or intentional, does not place any rights or property of Lessor in immediate jeopardy, and is within
the reasonable power of Lessee to promptly cure after receipt of notice thereof, all as determined by Lessor in its reasonable discretion, then such failure shall not constitute an Event of Default hereunder, unless otherwise expressly provided
herein, unless and until Lessor shall have given Lessee notice thereof and a period of 30 days shall have elapsed, during which period Lessee may correct or cure such failure, upon failure of which an Event of Default shall be deemed to have
occurred hereunder without further notice or demand of any kind being required. If such failure cannot reasonably be cured within such 30-day period, as determined by Lessor in its reasonable discretion, and Lessee is diligently pursuing a cure of
such failure, then Lessee shall have a reasonable period to cure such failure beyond such 30-day period, which shall in no event exceed 90 days after receiving notice of such failure from Lessor. If Lessee shall fail to correct or cure such failure
within such 90-day period, an Event of Default shall be deemed to have occurred hereunder without further notice or demand of any kind being required; 
  
 (viii) If there is an “Event of Default” or a breach or default, after the passage of all applicable notice and cure or grace periods, under any
of the Other Agreements; or 
  
 (ix) If a final, nonappealable
judgment is rendered by a court against any of the Lessee Parties which (i) has a material adverse effect on the operation of the Property as a Permitted Concept, or (ii) is in an amount greater than $100,000.00 and not covered by insurance, and, in
either case, is not discharged or provision made for such discharge within 60 days from the date of entry of such judgment. 
  
 B. Upon the occurrence of an Event of Default, with or without notice or demand, except the notice prior to default required under certain circumstances
by subsection A. above or such other notice as may be required by statute and cannot be waived by Lessee (all other notices being hereby waived), Lessor shall be entitled to exercise, at its option, concurrently, successively, or in any combination,
all remedies available at law or in equity, including without limitation, any one or more of the following as well as any other remedies allowable under applicable law: 
  
 (i) To terminate this Lease, whereupon Lessee’s right to possession of the Property shall cease and this Lease, except
as to Lessee’s liability, shall be terminated. 
  

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 (ii) To reenter and take possession of any or all of the Property, any or all Personal Property located
on or at any or all of the Property in which Lessor shall have a landlord’s lien and/or security interest, and, to the extent permissible, all franchises, licenses, area development agreements, permits and other rights or privileges of Lessee
pertaining to the use and operation of any or all of the Property and to expel Lessee and those claiming under or through Lessee, without being deemed guilty in any manner of trespass or becoming liable for any loss or damage resulting therefrom,
without resort to legal or judicial process, procedure or action. No notice from Lessor hereunder or under a forcible entry and detainer statute or similar law shall constitute an election by Lessor to terminate this Lease unless such notice
specifically so states. If Lessee shall, after default, voluntarily give up possession of the Property to Lessor, deliver to Lessor or its agents the keys to the Property, or both, such actions shall be deemed to be in compliance with Lessor’s
rights and the acceptance thereof by Lessor or its agents shall not be deemed to constitute a termination of this Lease. Lessor reserves the right following any reentry and/or reletting to exercise its right to terminate this Lease by giving Lessee
written notice thereof, in which event this Lease will terminate as specified in said notice. 
  
 (iii) To seize all Personal Property located on or at any or all of the Property, in which Lessor shall have a landlord’s lien and/or security interest, and to dispose thereof in accordance with the laws
prevailing at the time and place of such seizure or to remove all or any portion of such property and cause the same to be stored in a public warehouse or elsewhere at Lessee’s sole expense, without becoming liable for any loss or damage
resulting therefrom and without resorting to legal or judicial process, procedure or action. 
  
 (iv) To bring an action against Lessee for any damages sustained by Lessor or any equitable relief available to Lessor. 
  
 (v) To relet any or all of the Property or any part thereof for such term or terms (including a term which extends beyond the original Lease Term), at
such rentals and upon such other terms as Lessor, in its sole discretion, may determine, with all proceeds received from such reletting being applied to the rental and other sums due from Lessee in such order as Lessor may, in it sole discretion,
determine, which other sums include, without limitation, all repossession costs, brokerage commissions, attorneys’ fees and expenses, employee expenses, alteration, remodeling and repair costs and expenses of preparing for such reletting.
Except to the extent required by applicable law, Lessor shall have no obligation to relet the Property or any part thereof and shall in no event be liable for refusal or failure to relet the Property or any part thereof, or, in the event of any such
reletting, for refusal or failure to collect any rent due upon such reletting, and no such refusal or failure shall operate to relieve Lessee of any liability under this Lease or otherwise to affect any such liability. Lessor reserves the right
following any reentry and/or reletting to exercise its right to terminate this Lease by giving Lessee written notice thereof, in which event this Lease will terminate as specified in said notice. 
  
 (vi) (x) To recover from Lessee all rent and other monetary sums then due and
owing under this Lease and (y) to accelerate and recover from Lessee all rent and other monetary sums scheduled to become due and owing under this Lease after the date of such breach for the entire original scheduled Lease Term. 
  
 (vii) To recover from Lessee all costs and expenses, including
attorneys’ fees, court costs, expert witness fees, costs of tests and analyses, travel and accommodation expenses, deposition and trial transcripts, copies and other similar costs and fees, paid or incurred by Lessor as a result of such breach,
regardless of whether or not legal proceedings are actually commenced. 
  

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 (viii) To immediately or at any time thereafter, and with or without notice, at Lessor’s sole option
but without any obligation to do so, correct such breach or default and charge Lessee all costs and expenses incurred by Lessor therein. Any sum or sums so paid by Lessor, together with interest at the Default Rate, shall be deemed to be Additional
Rental hereunder and shall be immediately due from Lessee to Lessor. Any such acts by Lessor in correcting Lessee’s breaches or defaults hereunder shall not be deemed to cure said breaches or defaults or constitute any waiver of Lessor’s
right to exercise any or all remedies set forth herein. 
  
 (ix)
To immediately or at any time thereafter, and with or without notice, except as required herein, set off any money of Lessee held by Lessor under this Lease against any sum owing by Lessee hereunder. 
  
 (x) To seek any equitable relief available to Lessor, including, without
limitation, the right of specific performance. 
  
 All powers and
remedies given by this Section to Lessor, subject to applicable law, shall be cumulative and not exclusive of one another or of any other right or remedy or of any other powers and remedies available to Lessor under this Lease, by judicial
proceedings or otherwise, to enforce the performance or observance of the covenants and agreements of Lessee contained in this Lease, and no delay or omission of Lessor to exercise any right or power accruing upon the occurrence of any Event of
Default shall impair any other or subsequent Event of Default or impair any rights or remedies consequent thereto. Every power and remedy given by this Section or by law to Lessor may be exercised from time to time, and as often as may be deemed
expedient, by Lessor, subject at all times to Lessor’s right in its sole judgment to discontinue any work commenced by Lessor or change any course of action undertaken by Lessor. 
  
 If Lessee shall fail to observe or perform any of its obligations under this Lease or in the event of an emergency, then,
without waiving any Event of Default which may result from such failure or emergency, Lessor may, but without any obligation to do so, take all actions, including, without limitation, entry upon any or all of the Property to perform Lessee’s
obligations, immediately and without notice in the case of an emergency and upon five days written notice to Lessee in all other cases. All expenses incurred by Lessor in connection with performing such obligations, including, without limitation,
reasonable attorneys’ fees and expenses, together with interest at the Default Rate from the date any such expenses were incurred by Lessor until the date of payment by Lessee, shall constitute Additional Rental and shall be paid by Lessee to
Lessor upon demand. 
  
 25. Liens; Mortgage, Subordination
and Attornment. Lessor’s interest in this Lease and/or the Property shall not be subordinate to any liens or encumbrances placed upon the Property by or resulting from any act of Lessee, and nothing herein contained shall be construed
to require such subordination by Lessor. Lessee shall keep the Property free from any liens for work performed, materials furnished or obligations incurred by Lessee (except pursuant to the loan from Lender). NOTICE IS HEREBY GIVEN THAT, UNLESS
LESSOR’S PRIOR WRITTEN CONSENT IS OBTAINED, LESSEE IS NOT AUTHORIZED TO PLACE OR ALLOW TO BE PLACED ANY LIEN, MORTGAGE, DEED OF TRUST, DEED TO SECURE DEBT, SECURITY INTEREST OR ENCUMBRANCE OF ANY KIND UPON ALL OR ANY PART OF THE PROPERTY, THE
PERSONAL PROPERTY OR LESSEE’S LEASEHOLD INTEREST IN THE PROPERTY, AND ANY SUCH PURPORTED TRANSACTION SHALL BE VOID. FURTHERMORE, ANY SUCH PURPORTED TRANSACTION SHALL BE DEEMED A TORTIOUS INTERFERENCE WITH LESSOR’S RELATIONSHIP WITH LESSEE
AND LESSOR’S OWNERSHIP OF THE PROPERTY. 
  
 This Lease at all
times shall automatically be subordinate to the Mortgage and to the lien of any and all ground leases, mortgages, deeds to secure debt and trust deeds now or hereafter placed upon the Property by Lessor, and Lessee covenants and agrees to execute
and deliver, upon demand, such further instruments subordinating this Lease to the lien of the Mortgage and any or all such ground leases, mortgages, deeds to secure debt or trust deeds as shall be desired by Lessor, or any present or proposed
mortgagees or lenders under deeds to secure debt or trust deeds. 
  

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 If any landlord, mortgagee, receiver, Lender or other secured party validly exercises its right to elect
to have this Lease and the interest of Lessee hereunder be superior to the Mortgage or any such ground lease, mortgage, deed to secure debt or trust deed and evidences such election by written notice given to Lessee, then this Lease and the interest
of Lessee hereunder shall be deemed superior to any such Mortgage, ground lease, mortgage, deed to secure debt or trust deed, whether this Lease was executed before or after such Mortgage, ground lease, mortgage, deed to secure debt or trust deed
and in that event such landlord, mortgagee, receiver, Lender or other secured party shall have the same rights with respect to this Lease as if it had been executed and delivered prior to the execution and delivery of such Mortgage, ground lease,
mortgage, deed to secure debt or trust deed and had been assigned to such landlord, mortgagee, receiver, Lender or other secured party. 
  
 Although the foregoing provisions shall be self-operative and no future instrument of subordination shall be required, upon request by Lessor, Lessee
shall execute and deliver whatever instruments may be required for such purposes, and in the event Lessee fails so to do within 10 days after demand, Lessee does hereby make, constitute and irrevocably appoint Lessor as its agent and
attorney-in-fact and in its name, place and stead so to do, which appointment shall be deemed coupled with an interest. 
  
 In the event any purchaser or assignee of Lender at a foreclosure sale acquires title to the Property, or in the event Lender or any assignee otherwise
succeeds to the rights of Lessor as landlord under this Lease, Lessee shall attorn to Lender or such purchaser or assignee, as the case may be (a “Successor Lessor”), and recognize the Successor Lessor as lessor under this Lease, and, if
the Successor Lessor in its sole discretion elects to recognize Lessee’s tenancy under this Lease, this Lease shall continue in full force and effect as a direct lease between the Successor Lessor and Lessee, provided that the Successor Lessor
shall only be liable for any obligations of the lessor under this Lease which accrue after the date that such Successor Lessor acquires title. The foregoing provision shall be self operative and effective without the execution of any further
instruments. 
  
 Lessee shall give written notice to any lender of
Lessor having a recorded lien upon the Property or any part thereof of which Lessee has been notified of any breach or default by Lessor of any of its obligations under this Lease simultaneously with the giving of such notice to Lessor, and Lessee
shall give such lender at least 60 days beyond any notice period to which Lessor might be entitled to cure such default before Lessee may exercise any remedy with respect thereto. Upon request by Lessor, Lessee shall also provide Lessee’s most
recent audited financial statements to Lessor or any such lender and certify the continuing accuracy of such financial statements in such manner as Lessor or such lender may request. 
  
 26. Estoppel Certificate. A. At any time, and from time to time, Lessee shall, promptly and in no event later
than 15 days after a request from Lessor or Lender, execute, acknowledge and deliver to Lessor or Lender a certificate in the form supplied by Lessor, Lender or any present or proposed mortgagee or purchaser designated by Lessor, certifying: (i)
that Lessee has accepted the Property (or, if Lessee has not done so, that Lessee has not accepted the Property, and specifying the reasons therefor); (ii) that this Lease is in full force and effect and has not been modified (or if modified,
setting forth all modifications), or, if this Lease is not in full force and effect, the certificate shall so specify the reasons therefor; (iii) the commencement and expiration dates of the Lease Term, including the terms of any extension options
of Lessee; (iv) the date to which the rentals have been paid under this Lease and the amount thereof then payable; (v) whether there are then any existing defaults by Lessor in the performance of its obligations under this Lease, and, if there are
any such defaults, specifying the nature and extent thereof; (vi) that no notice has been received by Lessee of any default under this Lease which has not been cured, except as to defaults specified in the certificate; (vii) the capacity of the
person executing such certificate, and that such person is duly authorized to execute the same on behalf of Lessee; (viii) that neither Lessor nor Lender has actual involvement in the management or control of decision making related to the
operational aspects or the day-to-day operations of the Property; and (ix) any other information reasonably requested by Lessor, Lender or such present or proposed mortgagee or purchaser. 
  

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 B. If Lessee shall fail or refuse to sign a certificate in accordance with the provisions of this Section
within 15 days following a request by Lessor, Lessee irrevocably constitutes and appoints Lessor as its attorney-in-fact to execute and deliver the certificate to any such third party, it being stipulated that such power of attorney is coupled with
an interest and is irrevocable and binding; provided, however, that Lessor’s execution and delivery of such certificate on behalf of Lessee shall not cure any default arising by reason of Lessee’s failure to execute and deliver such
certificate. 
  
 27. Assignment. A. If Lender shall
succeed to the rights of Lessor as landlord under this Lease, whether through foreclosure of the liens of the Mortgage, deeds-in-lieu of foreclosure or otherwise, Lender, as lessor, shall have the right to sell or convey all, but not less than all,
of the Property or to assign its right, title and interest as Lessor under this Lease in whole, but not in part. In the event of any such sale or assignment other than a security assignment, Lessee shall attorn to such purchaser or assignee and
Lessor shall be relieved, from and after the date of such transfer or conveyance, of liability for the performance of any obligation of Lessor contained herein, except for obligations or liabilities accrued prior to such assignment or sale
(provided, however, nothing in this Section 27 shall impose liability on Lender or such purchaser or assignee, as lessor, for the obligations of Lessor accruing under this Lease prior to the time Lender or such purchaser or assignee, as the case may
be, succeeds to Lessor’s rights as lessor under this Lease). Otherwise, and except as permitted pursuant to the Loan Documents, Lessor shall not have the right to sell or convey the Property or to assign its right, title and interest as lessor
under this Lease in whole or in part. 
  
 B. Lessee acknowledges
that Lessor has relied both on the business experience and creditworthiness of Lessee and upon the particular purposes for which Lessee intends to use the Property in entering into this Lease. Without the prior written consent of Lessor: (i) Lessee
shall not assign, transfer, convey, pledge or mortgage this Lease or any interest therein, whether by operation of law or otherwise; (ii) no Change of Control shall occur; (iii) no interest in any of the Lessee Parties shall be pledged, encumbered,
hypothecated or assigned as collateral for any obligation of any of the Lessee Parties, and (iv) Lessee shall not sublet all or any part of the Property (each of items (i) through (iv) are hereinafter referred to as a “Prohibited
Transaction”). In addition, no interest in any of the Lessee Parties, or in any individual or person owning directly or indirectly any interest in any of the Lessee Parties, shall be transferred, assigned or conveyed to any individual or person
whose property or interests are subject to being blocked under any of the Terrorism Laws and/or who is in violation of any of the Terrorism Laws, and any such transfer, assignment or conveyance shall not be effective until the transferee has
provided written certification to Lessor that (A) the transferee or any person who owns directly or indirectly any interest in transferee, is not an individual or entity whose property or interests are subject to being blocked under any of the
Terrorism Laws or is otherwise in violation of the Terrorism Laws, and (B) the transferee has taken reasonable measures to assure than any individual or entity who owns directly or indirectly any interest in transferee, is not an individual or
entity whose property or interests are subject to being blocked under any of the Terrorism Laws or is otherwise in violation of the Terrorism Laws. 
  
 Lessor’s consent to a Prohibited Transaction shall be subject to the satisfaction of such conditions as Lessor shall determine in its sole
discretion, including, without limitation, (i) Lessor having obtained the consent of Lender to the Prohibited Transaction, (ii) Lessee having executed and delivered such modifications to the terms of this Lease as Lessor shall request, (iii) the
Prohibited Transaction having been approved by each of the rating agencies which have issued ratings in connection with any Securitization as well as any other rating agency selected by Lender, (iv) the proposed transferee, as applicable, having
assumed this Lease (as modified pursuant to clause (ii) above), (v) payment to Lessor of any rentals owing under a sublease which are in excess of any rentals owing under this Lease, and (vi) the proposed transferee having satisfactory
creditworthiness and satisfactory experience operating a Permitted Concept. In addition, any such consent shall be conditioned upon the payment by Lessee to Lessor of (x) a fee equal to one percent (1%) of the then outstanding principal balance of
the Note and (y) all out-of-pocket costs and expenses incurred by Lessor in connection with such consent, including, without limitation, reasonable attorneys’ fees. The provisions of this Section shall apply to every Prohibited Transaction
regardless of whether voluntary or not, or whether or not Lessor has consented to any previous Prohibited Transaction. No assignment of this Lease or subletting of the Property shall 

  

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relieve Lessee of its obligations under this Lease or any guarantor of this Lease of any of its obligations under its guaranty. Any Prohibited Transaction in
violation of this Section shall be voidable at the sole option of Lessor. 
  
 28. This Section Has Been Left Blank Intentionally. 
  
 29. Notices. All notices, consents, approvals or other instruments required or permitted to be given by either party pursuant to this Lease
shall be in writing and given by (i) hand delivery, (ii) facsimile, (iii) express overnight delivery service or (iv) certified or registered mail, return receipt requested, and shall be deemed to have been delivered upon (a) receipt, if hand
delivered, (b) transmission, if delivered by facsimile, (c) the next Business Day, if delivered by express overnight delivery service, or (d) the third Business Day following the day of deposit of such notice with the United States Postal Service,
if sent by certified or registered mail, return receipt requested. Notices shall be provided to the parties and addresses (or facsimile numbers, as applicable) specified below: 
  
 If to Lessee: 
  
 Kitchin Hospitality, LLC 
 8 Perimeter Center East, Suite 8050 
 Atlanta, GA 30346-1604 
 Attn: Legal Department 
 Telephone: (770) 901-9020 
 Telecopy: (7770) 901-9203 
  
 If to Lessor: 
  
 Jameson Inns Financing 01, LP 
 8 Perimeter Center East, Suite 8050 
 Atlanta, GA 30346-1604 
 Attn: Legal Department 
 Telephone: (770) 901-9020 
 Telecopy: (7770) 901-9203 
  
 or to such other
address or such other person as either party may from time to time hereafter specify to the other party in a notice delivered in the manner provided above. No such notices, consents, approvals or other communications shall be valid unless Lender
receives a duplicate original thereof at the following address: 
  
 GE Capital Franchise Finance Corporation 
 17207 North Perimeter Drive 
 Scottsdale, AZ 85255 
 Attention:           General Counsel 
 Telephone:          (480) 585-4500 
 Telecopy:            (480) 585-2226 
  
 or to such other address or such other person as Lender may from time to time specify to Lessor and Lessee in a notice delivered in the manner provided above. 
  
 30. Holding Over. If Lessee remains in possession of the
Property after the expiration of the term hereof, Lessee, at Lessor’s option and within Lessor’s sole discretion, may be deemed a tenant on a month-to-month basis and shall continue to pay rentals and other sums in the amounts herein
provided, except that the Base Monthly Rental shall be automatically doubled, and comply with all the terms of this Lease; provided that nothing herein nor the acceptance of rent by Lessor shall be deemed a consent to such holding over. Lessee shall
defend, indemnify, protect and hold the Indemnified Parties harmless from and against any and all Losses resulting from Lessee’s failure to surrender possession upon the expiration of the Lease Term, including, without limitation, any claims
made by any succeeding lessee. 
  

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 31. Landlord’s Lien/Security Interest. Lessee agrees that Lessor shall have a
landlord’s lien, and additionally hereby separately grants to Lessor a security interest, in, on and against all Personal Property, which lien and security interest shall secure the payment of all rental and other charges payable by Lessee to
Lessor under the terms hereof and all other obligations of Lessee to Lessor under this Lease and which lien shall be subordinate to the lien of Lender. Lessee shall maintain title to the Personal Property, free and clear of all liens, encumbrances,
charges and security interests of any nature whatsoever, except for liens pursuant to the loan from Lender. Lessee authorizes Lessor to file financing statements with respect to the Personal Property, continuation statements with respect thereto,
and any amendments to such financing statements which may be necessitated by reason of any of the changes described in the last sentence of this Section. Furthermore, at any time, and from time to time, Lessee shall, promptly and in no event later
than 15 days after a request from Lessor, execute, acknowledge and deliver to Lessor such financing statements and other documents as Lessor may then deem appropriate or necessary to perfect and maintain said lien and security interest. Lessee
expressly acknowledges and agrees that, in addition to any and all other rights and remedies of Lessor whether hereunder or at law or in equity, in the event of any default of Lessee hereunder, Lessor shall have any and all rights and remedies
granted a secured party under the Uniform Commercial Code then in effect in the state of Arizona (the “UCC”). Lessee represents that its exact legal name and state of incorporation is as set forth in the first paragraph of this Lease.
Lessee shall preserve its current form of organization and shall not change its legal name, its state of formation, nor, in one transaction or a series of related transactions, merge with or into, or consolidate with, any other entity without
providing, in each case, Lessor with 30 days’ prior written notice and obtaining Lessor’s prior written consent (to the extent such consent is required under Section 27 of this Lease). Lessee agrees that, notwithstanding any provision in
the UCC to the contrary, Lessee shall not file a termination statement of any financing statement filed by Lessor in connection with any security interest granted under this Lease if Lessor reasonably objects to the filing of such termination
statement. 
  
 32. Removal of Personal Property. At
the expiration of the Lease Term, and if Lessee is not then in breach hereof, Lessee may remove all Personal Property from the Property. Lessee shall repair any damage caused by such removal and shall leave the Property broom clean and in good and
working condition and repair inside and out. Any property of Lessee left on the Property on the tenth day following the expiration of the Lease Term shall, at Lessor’s option, automatically and immediately become the property of Lessor.

  
 33. Financial Statements. Within 45 days after
the end of each fiscal quarter and within 120 days after the end of each fiscal year of Lessee, Lessee shall deliver to Lessor and Lender (i) complete financial statements of the Lessee Parties including a balance sheet, profit and loss statement,
statement of cash flows and all other related schedules for the fiscal period then ended; and (ii) income statements for the business at the Property. All such financial statements shall be prepared in accordance with GAAP from period to period, and
shall be certified to be accurate and complete by Lessee (or the Treasurer or other appropriate officer of Lessee). Lessee understands that Lessor and Lender will rely upon such financial statements and Lessee represents that such reliance is
reasonable. In the event the property and business at the Property is ordinarily consolidated with other business for financial statement purposes, such financial statements shall be prepared on a consolidated basis showing separately the sales,
profits and losses, assets and liabilities pertaining to the Property with the basis for allocation of overhead of other charges being clearly set forth. The financial statements delivered to Lessor and Lender need not be audited, but Lessee shall
deliver to Lessor and Lender copies of any audited financial statements of Lessee which may be prepared, as soon as they are available. 
  
 34. Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, acts of God, enemy or hostile governmental action, civil
commotion, fire or other casualty beyond the control of the party obligated to perform shall excuse the performance by such party for a period equal to any such prevention, delay or stoppage, except the obligations imposed with regard to rental and
other monies to be paid by Lessee pursuant to this Lease and any indemnification obligations imposed upon Lessee under this Lease. 
  

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 35. Time is of the Essence. Time is of the essence with respect to each and every provision
of this Lease in which time is a factor. 
  
 36.
Lessor’s Liability. Notwithstanding anything to the contrary provided in this Lease, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Lease by Lessor, that (i) there
shall be absolutely no personal liability on the part of Lessor, its successors or assigns and the trustees, members, partners, shareholders, officers, directors, employees and agents of Lessor and its successors or assigns, to Lessee with respect
to any of the terms, covenants and conditions of this Lease, (ii) Lessee waives all claims, demands and causes of action against the trustees, members, partners, shareholders, officers, directors, employees and agents of Lessor and its successors or
assigns in the event of any breach by Lessor of any of the terms, covenants and conditions of this Lease to be performed by Lessor, and (iii) Lessee shall look solely to the Property for the satisfaction of each and every remedy of Lessee in the
event of any breach by Lessor of any of the terms, covenants and conditions of this Lease to be performed by Lessor, or any other matter in connection with this Lease or the Property, such exculpation of liability to be absolute and without any
exception whatsoever. 
  
 37. Consent of Lessor. (a)
Unless specified otherwise herein, Lessor’s consent to any request of Lessee may be conditioned or withheld in Lessor’s sole discretion. Lessor shall have no liability for damages resulting from Lessor’s failure to give any consent,
approval or instruction reserved to Lessor, Lessee’s sole remedy in any such event being an action for injunctive relief. 
  
 (b) It is understood and agreed that to the extent Lessor is required to obtain the consent, approval, agreement or waiver of Lender with respect to a
matter for which Lessor’s approval has been requested under this Lease, Lessor shall in no event be deemed to have unreasonably withheld Lessor’s consent, approval, agreement or waiver thereof if Lender shall not have given its approval if
required. 
  
 38. Waiver and Amendment. No provision
of this Lease shall be deemed waived or amended except by a written instrument unambiguously setting forth the matter waived or amended and signed by the party against which enforcement of such waiver or amendment is sought. Waiver of any matter
shall not be deemed a waiver of the same or any other matter on any future occasion. No acceptance by Lessor of an amount less than the monthly rent and other payments stipulated to be due under this Lease shall be deemed to be other than a payment
on account of the earliest such rent or other payments then due or in arrears nor shall any endorsement or statement on any check or letter accompanying any such payment be deemed a waiver of Lessor’s right to collect any unpaid amounts or an
accord and satisfaction. 
  
 39. Successors Bound.
Except as otherwise specifically provided herein, the terms, covenants and conditions contained in this Lease shall bind and inure to the benefit of the respective heirs, successors, executors, administrators and assigns of each of the parties
hereto. 
  
 40. No Merger. The voluntary or other
surrender of this Lease by Lessee, or a mutual cancellation thereof, shall not result in a merger of Lessor’s and Lessee’s estates, and shall, at the option of Lessor, either terminate any or all existing subleases or subtenancies, or
operate as an assignment to Lessor of any or all of such subleases or subtenancies. 
  
 41. Captions. Captions are used throughout this Lease for convenience of reference only and shall not be considered in any manner in the construction or interpretation hereof. 
  
 42. Severability. The provisions of this Lease shall be deemed
severable. If any part of this Lease shall be held unenforceable by any court of competent jurisdiction, the remainder shall remain in full force and effect, and such unenforceable provision shall be reformed by such court so as to give maximum
legal effect to the intention of the parties as expressed therein. 
  

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 43. Characterization. A. It is the intent of the parties hereto that the business
relationship created by this Lease and any related documents is solely that of a long-term commercial lease between landlord and tenant and has been entered into by both parties in reliance upon the economic and legal bargains contained herein. None
of the agreements contained herein, is intended, nor shall the same be deemed or construed, to create a partnership between Lessor and Lessee, to make them joint venturers, to make Lessee an agent, legal representative, partner, subsidiary or
employee of Lessor, nor to make Lessor in any way responsible for the debts, obligations or losses of Lessee. 
  
 B. This Lease shall be interpreted and construed in a fair and impartial manner without regard to such factors as the party which prepared the instrument,
the relative bargaining powers of the parties or the domicile of any party. Whenever in this Lease any words of obligation or duty are used, such words or expressions shall have the same force and effect as though made in the form of a covenant.

  
 44. Easements. During the Lease Term Lessor
shall have the right to grant utility easements on, over, under and above the Property without the prior consent of Lessee, provided that such easements will not materially interfere with Lessee’s long-term use of the Property. 
  
 45. Bankruptcy. A. As a material inducement to Lessor executing
this Lease, Lessee acknowledges and agrees that Lessor is relying upon (i) the financial condition and specific operating experience of Lessee and Lessee’s obligation to use the Property specifically in accordance with system-wide requirements
imposed from time to time on Permitted Concepts, (ii) Lessee’s timely performance of all of its obligations under this Lease as to the Property notwithstanding the entry of an order for relief under the Code for Lessee and (iii) all defaults
under this Lease as to the Property being cured promptly and this Lease being assumed within 60 days of any order for relief entered under the Code for Lessee, or this Lease being rejected within such 60 day period and the Property surrendered to
Lessor. 
  
 Accordingly, in consideration of the mutual covenants
contained in this Lease and for other good and valuable consideration, Lessee hereby agrees that: 
  
 (i) All obligations that accrue or become due under this Lease (including the obligation to pay rent), from and after the date that an Action is commenced
shall be timely performed exactly as provided in this Lease and any failure to so perform shall be harmful and prejudicial to Lessor; 
  
 (ii) Any and all obligations under this Lease that accrue or become due from and after the date that an Action is commenced and that are not paid as
required by this Lease shall, in the amount of such rents, constitute administrative expense claims allowable under the Code with priority of payment at least equal to that of any other actual and necessary expenses incurred after the commencement
of the Action; 
  
 (iii) Any extension of the time period within
which Lessee may assume or reject this Lease without an obligation to cause all obligations accruing or coming due under this Lease from and after the date that an Action is commenced to be performed as and when required under this Lease shall be
harmful and prejudicial to Lessor; 
  
 (iv) Any time period
designated as the period within which Lessee must cure all defaults and compensate Lessor for all pecuniary losses which extends beyond the date of assumption of this Lease shall be harmful and prejudicial to Lessor; 
  
 (v) Any assignment of this Lease must result in all terms and conditions of
this Lease being assumed by the assignee without alteration or amendment, and any assignment which results in an amendment or alteration of the terms and conditions of this Lease without the express written consent of Lessor shall be harmful and
prejudicial to Lessor; 
  

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 (vi) Any proposed assignment of this Lease to an assignee: (a) that will not use the Property
specifically as a Permitted Concept or (b) that does not possess financial condition, operating performance and experience characteristics equal to or better than the financial condition, operating performance and experience of the Lessee Parties as
of the Effective Date, shall be harmful and prejudicial to Lessor; 
  
 (vii) The rejection (or deemed rejection) of this Lease for any reason whatsoever shall constitute cause for immediate relief from the automatic stay provisions of the Code, and Lessee stipulates that such automatic stay shall be lifted
immediately and possession of the Property will be delivered to Lessor immediately without the necessity of any further action by Lessor; and 
  
 (viii) This Lease shall at all times be treated as consistent with the specific characterizations set forth in Section 3 of this Lease, and assumption or
rejection of this Lease shall be (a) in its entirety, (b) for the Property, and (c) in strict accordance with the specific terms and conditions of this Lease. 
  

B. No provision of this Lease shall be deemed a waiver of Lessor’s rights or remedies under the Code or applicable law to oppose any assumption
and/or assignment of this Lease, to require timely performance of Lessee’s obligations under this Lease, or to regain possession of the Property as a result of the failure of Lessee to comply with the terms and conditions of this Lease or the
Code. 
  
 C. Notwithstanding anything in this Lease to the
contrary, all amounts payable by Lessee to or on behalf of Lessor under this Lease, whether or not expressly denominated as such, shall constitute “rent” for the purposes of the Code. 
  
 D. For purposes of this Section addressing the rights and obligations of
Lessor and Lessee in the event that an Action is commenced, the term “Lessee” shall include Lessee’s successor in bankruptcy, whether a trustee, Lessee as debtor in possession or other responsible person. 
  
 46. No Offer. No contractual or other rights shall exist
between Lessor and Lessee with respect to the Property until both have executed and delivered this Lease, notwithstanding that deposits may have been received by Lessor and notwithstanding that Lessor may have delivered to Lessee an unexecuted copy
of this Lease. The submission of this Lease to Lessee shall be for examination purposes only, and does not and shall not constitute a reservation of or an option for Lessee to lease or otherwise create any interest on the part of Lessee in the
Property. 
  
 47. Other Documents. Each of the
parties agrees to do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, documents and assurances as may be reasonably required or deemed advisable to carry into effect the purposes of
this Lease, to perfect any lien or security interest granted in this Lease and for the better assuring and confirming of all of Lessor’s rights, powers and remedies under this Lease. 
  
 48. Attorneys’ Fees. In the event of any judicial or other adversarial proceeding between the parties
concerning this Lease, to the extent permitted by law, the prevailing party shall be entitled to recover all of its reasonable attorneys’ fees and other costs in addition to any other relief to which it may be entitled. In addition, Lessor
shall, upon demand, be entitled to all attorneys’ fees and all other costs incurred in the preparation and service of any notice or demand hereunder, whether or not a legal action is subsequently commenced. 
  
 49. Entire Agreement. This Lease and any other instruments or
agreements referred to herein constitute the entire agreement between the parties with respect to the subject matter hereof, and there are no other representations, warranties or agreements except as herein provided. Without limiting the foregoing,
Lessee specifically acknowledges that neither Lessor nor any agent, officer, employee or 

  

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representative of Lessor has made any representation or warranty regarding the projected profitability of the business to be conducted on the Property.
Furthermore, Lessee acknowledges that Lessor did not prepare or assist in the preparation of any of the projected figures used by Lessee in analyzing the economic viability and feasibility of the business to be conducted by Lessee at the Property.

  
 50. Forum Selection; Jurisdiction; Venue; Choice of
Law. Lessee acknowledges that this Lease was substantially negotiated in the State of Georgia, the executed Lease was delivered in the State of Georgia, all payments under this Lease will be delivered in the State of Georgia (unless
otherwise directed by Lessor or its successors) and there are substantial contacts between the parties and the transactions contemplated herein and the State of Georgia. For purposes of any action or proceeding arising out of this Lease, the parties
hereto expressly submit to the jurisdiction of all federal and state courts located in the State of Georgia. Lessee and Lessor consent that they may be served with any process or paper by registered mail or by personal service within or without the
State of Georgia in accordance with applicable law. Furthermore, Lessee and Lessor waive and agree not to assert in any such action, suit or proceeding that they are not personally subject to the jurisdiction of such courts, that the action, suit or
proceeding is brought in an inconvenient forum or that venue of the action, suit or proceeding is improper. The creation of this Lease and the rights and remedies of Lessor with respect to the Property, as provided herein and by the laws of the
states in which the Property is located, as applicable, shall be governed by and construed in accordance with the internal laws of the states in which the Property is located, as applicable, without regard to principles of conflicts of law. With
respect to other provisions of this Lease, this Lease shall be governed by the internal laws of the State of Georgia, without regard to its principles of conflicts of law. Nothing contained in this Section shall limit or restrict the right of Lessor
or Lessee to commence any proceeding in the federal or state courts located in the states in which the Property is located to the extent Lessor or Lessee deems such proceeding necessary or advisable to exercise remedies available under this Lease.

  
 51. Counterparts. This Lease may be executed in
one or more counterparts, each of which shall be deemed an original. 
  
 52. Memorandum of Lease. Concurrently with the execution of this Lease, Lessor and Lessee are executing the Memorandum to be recorded in the applicable real property records with respect to the Property. Further, upon
Lessor’s request, Lessee agrees to execute and acknowledge a termination of lease and/or quit claim deed in recordable form with respect to the Property to be held by Lessor until the expiration or sooner termination of the Lease Term.

  
 53. No Brokerage. Lessor and Lessee represent
and warrant to each other that they have had no conversation or negotiations with any broker concerning the leasing of the Property. Each of Lessor and Lessee agrees to protect, indemnify, save and keep harmless the other, against and from all
liabilities, claims, losses, costs, damages and expenses, including attorneys’ fees, arising out of, resulting from or in connection with their breach of the foregoing warranty and representation. 
  
 54. Waiver of Jury Trial and Punitive, Consequential, Special and
Indirect Damages. LESSOR AND LESSEE HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY
EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR ITS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LESSOR AND LESSEE, LESSEE’S USE OR OCCUPANCY OF THE PROPERTY, AND/OR ANY CLAIM FOR
INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY. THIS WAIVER BY THE PARTIES HERETO OF ANY RIGHT EITHER MAY HAVE TO A TRIAL BY JURY HAS BEEN NEGOTIATED AND IS AN ESSENTIAL ASPECT OF THEIR BARGAIN. FURTHERMORE, LESSEE AND LESSOR HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND INDIRECT DAMAGES FROM THE OTHER AND ANY OF THE OTHER’S AFFILIATES, OFFICERS, DIRECTORS OR EMPLOYEES OR ANY OF THEIR SUCCESSORS
WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY EITHER 

  

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PARTY AGAINST THE OTHER OR ANY OF THE OTHER’S AFFILIATES, OFFICERS, DIRECTORS OR EMPLOYEES OR ANY OF THEIR SUCCESSORS WITH RESPECT TO ANY MATTER ARISING
OUT OF OR IN CONNECTION WITH THIS LEASE OR ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO. THE WAIVER BY LESSEE AND LESSOR OF ANY RIGHT THEY MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND INDIRECT DAMAGES HAS BEEN NEGOTIATED BY THE
PARTIES HERETO AND IS AN ESSENTIAL ASPECT OF THEIR BARGAIN. 
  
 55. Intentionally Omitted.. 
  
 56. Lender’s
Rights. A. Lessee acknowledges and agrees that (i) Lessor has collaterally assigned all of its right, title and interest under this Lease to Lender pursuant to the Loan Documents and (ii) upon the exercise of Lender’s remedies set forth
in such Loan Documents, all of the rights, powers and privileges of Lessor shall be deemed the rights, powers and privileges of Lender and Lender shall be entitled to exercise all of the rights and remedies of “Lessor” under this Lease.
Lessee hereby consents to, and no further consent by Lessee shall be required for, any further assignment of rights of Lessor hereunder or in connection with any transfer by Lender. All notices, certificates, reports or other information required to
be delivered to Lessor under this Lease shall be delivered simultaneously to Lender in accordance with the provisions of Section 29. Notwithstanding any provision herein to the contrary, the collateral assignment of this Lease to Lender shall not be
deemed to create any obligation of or liability for Lender. 
  
 B.
Lessee acknowledges and agrees that Lender may rely on all of the representations, warranties and covenants set forth in this Lease, that Lender is an intended third-party beneficiary of such representations, warranties and covenants and that Lender
shall have all rights and remedies available at law or in equity as a result of a breach of such representations, warranties and covenants, including to the extent applicable, the right of subrogation. 
  
 C. Lessee agrees that any consent, approval, agreement or waiver provided by
Lessor pursuant to this Lease shall not be valid unless consented to in writing by Lender. 
  
 57. Document Review. In the event Lessee makes any request upon Lessor requiring Lessor or the attorneys of Lessor to review and/or prepare (or cause to be reviewed and/or prepared) any documents, plans,
specifications or other submissions in connection with or arising out of this Lease, then Lessee shall (x) reimburse Lessor upon demand therefor for all out-of-pocket costs and expenses incurred by Lessor in connection with such review and/or
preparation, including, without limitation, reasonable attorneys’ fees, and (y) pay Lessor a reasonable processing and review fee. 
  
 58. Terrorism Law Policies. Lessee shall require, and shall take reasonable measures to comply with the requirement, that no individual or
entity owning directly or indirectly any interest in any of the Lessee Parties is an individual or entity whose property or interests are subject to being blocked under any of the Terrorism Laws or is otherwise in violation of any of the Terrorism
Laws. Lessee shall adopt and maintain adequate policies, procedures and controls to ensure that the Lessee Parties are in compliance with all Terrorism Laws (“Lessee Terrorism Laws Policies”), which Lessee Terrorism Laws Policies shall be
satisfactory to Lender in its reasonable discretion. Lessee shall immediately notify Lessor in writing if any individual or entity owning directly or indirectly any interest in any of the Lessee Parties or any director, officer, member, manager or
partner of any of such holders is an individual or entity whose property or interests are subject to being blocked under any of the Terrorism Laws or is otherwise in violation of any of the Terrorism Laws, or is under investigation by any
Governmental Authority for, or has been charge with or convicted of, drug trafficking, terrorist-related activities or any violation Anti-Money Laundering Laws, has been assessed civil penalties under these or related laws, or has had funds seized
or forfeited in an action under these or related laws. Lessee further agrees to make the Lessee Terrorism Laws Policies, together with the information collected thereby concerning the Lessee Parties or any individual or entity owning directly or
indirectly any interest in any of the Lessee Parties, available to Lessor upon request. 
  
  

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 IN WITNESS WHEREOF, Lessor and Lessee have entered into this Lease as of the Effective Date. 

 

			
	LESSOR:
	
	JAMESON INNS FINANCING 01, LP
		
	 By:
	 	Jameson Inns, Inc., its General Partner
		
	 By:
	 	 /s/ Thomas W. Kitchin


	 	 	 Thomas W. Kitchin, Chief Executive Officer

	
	 LESSEE:

	
	KITCHIN HOSPITALITY, LLC
		
	 By:
	 	 /s/ Thomas W. Kitchin


	 	 	Thomas W. Kitchin, President and Manager


  

					
	 STATE OF GEORGIA
	 	)	 	 
	 	 	)	 	SS.
	COUNTY OF DEKALB	 	)	 	 

  
 The foregoing
instrument was acknowledged before me on December 30, 2004 by Thomas W. Kitchin, Chief Executive Officer of Jameson Inns, Inc., on behalf of the corporation. 
  

	
	 /s/ Steven A. Curlee


	Notary Public


  
 My Commission Expires:

  
 6/13/05  
  

			
	STATE OF GEORGIA	 	)
	 	 	) SS.
	COUNTY OF DEKALB	 	)

  
 The foregoing
instrument was acknowledged before me on December 30, 2004, 2004 by Thomas W. Kitchin, as President of Kitchin Hospitality, LLC, on behalf of the company. 
  

	
	 /s/ Steven A. Curlee


	Notary Public


  
 My Commission Expires:

  
 6/13/05 
  

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