Document:

EX-10.17

 

Exhibit 10.17

GUARANTY OF LEASE

     This GUARANTY OF LEASE (“Guaranty”) is made as of November 1, 2006, by BUFFETS, INC.,
a Minnesota corporation (“Guarantor”), to FIGRYANH LLC, FIGRYANH-1 LLC, FIGRYANH-2 LLC,
FIGRYANH-3 LLC, FIGRYANH-4 LLC, FIGRYANH-5 LLC, FIGRYANH-6, FIGRYANH-7 LLC, FIGRYANH-8 LLC,
FIGRYANH-9 LLC, FIGRYANH-10 LLC, FIGRYANH-11 LLC, FIGRYANH-12 LLC, FIGRYANH-13 LLC, FIGRYANH-14
LLC, FIGRYANH-15 LLC, FIGRYANH-16 LLC, each a Delaware limited liability company (collectively
“Landlord”), with reference to the following facts:

     A. Landlord and FIRE MOUNTAIN RESTAURANTS, LLC, a Delaware limited liability company (“Fire
Mountain”), RYAN’S RESTAURANT GROUP, INC. a South Carolina corporation (“Ryan’s”), OCB RESTAURANT
COMPANY, LLC, a Minnesota limited liability company (“OCB”), and HOMETOWN BUFFET, INC., a Minnesota
corporation ((“Hometown Buffet”, together with Fire Mountain, Ryan’s and OCB and any of their
successors and assigns, including without limitation any assignee of any of its interest under the
Lease, the “Tenant”) have entered into that certain Master Land and Building Lease (as the
same may be amended from time to time pursuant to the terms thereof, the “Lease”) regarding
certain “Demised Premises” as defined in the Lease. Capitalized terms not otherwise
defined herein shall have the meaning set forth in the Lease.

     B. Each of Fire Mountain, Ryan’s, OCB and Hometown Buffet is an indirect 100% owned subsidiary
of Guarantor.

     C. Landlord would not enter into the Lease but for the execution and delivery of this Guaranty
by Guarantor. Guarantor is willing to execute this Guaranty for the express and intended purposes
of inducing Landlord enter into the Lease.

     D. Guarantor will benefit from the execution of the Lease. Guarantor is executing this
Guaranty in consideration of that anticipated benefit.

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

     1. Guaranty. Guarantor hereby absolutely and unconditionally guarantees to Landlord
the full, prompt and faithful performance by Tenant of all Tenant’s Obligations (as defined below).
As used herein, “Tenant’s Obligations” means all covenants, terms, and conditions of the
Lease, and any extensions, modifications or renewals thereof, to be hereafter performed and kept by
Tenant, including without limitation the prompt payment of all amounts that Tenant may at any time
owe under the Lease, and any extensions, renewals or modifications thereof.

     2. Independent Obligations. Guarantor’s obligations hereunder are independent of the
obligations of Tenant, and a separate action or actions may be brought and prosecuted against

 

 

Guarantor whether or not any action or actions are brought against Tenant and whether or not
Tenant shall be joined in any such action or actions.

     3. Rights of Landlord. Guarantor authorizes Landlord, without notice or demand and
without affecting its liability hereunder, from time to time to (a) extend, accelerate, or
otherwise change the time for any payment provided for in the Lease, or any covenant, term or
condition of the Lease, delay enforcing Landlord’s remedies or rights against Tenant in connection
with the Lease, and consent to any assignment, subletting or reassignment of the Lease, (b) take
and hold security for any payment provided for in the Lease or for the performance of any covenant,
term or condition of the Lease, or exchange, waive or release any such security; and (c) apply such
security and direct the order or manner of sale thereof as Landlord in its sole discretion may
determine. Landlord may without notice assign this Guaranty, the Lease, or the rents and other
sums payable thereunder. Notwithstanding any termination, renewal, extension, or holding over of
the Lease, or any assignment of the Lease by Landlord or Tenant, this Guaranty shall continue until
all of Tenant’s Obligations have been fully and completely performed by Tenant.

     Guarantor shall not be released by any act or event which might, but for this provision of
this Guaranty, be deemed a legal or equitable discharge of a surety, or by reason of any waiver,
extension, modification, forbearance or delay or other act or omission of the Landlord or its
failure to proceed promptly or otherwise as against Tenant or Guarantor, or by reason or any action
taken or omitted or circumstance which may or might vary the risk or affect the rights or remedies
of Guarantor as against Tenant, or by reason of any further dealings between Tenant and Landlord,
whether relating to the Lease or otherwise, and Guarantor hereby expressly waives and surrenders
any defense to its liability hereunder based upon any of the foregoing acts, omissions, things, or
agreements. It is the purpose and intent of this Guaranty that the obligations of Guarantor
hereunder are absolute and unconditional under any and all circumstances. Notwithstanding any
provision hereof to the contrary, Guarantor shall be released and discharged of its obligations
hereunder if and to the same extent as Tenant is released or discharged of its obligations under
the Lease with the consent of Landlord or in accordance with the terms of the Lease. The foregoing
sentence shall in no way affect any waivers or any bankruptcy provisions set forth herein.

     Guarantor further agrees that to the extent Tenant or Guarantor makes any payment to Landlord
in connection with Tenant’s Obligations and all or any part of such payment is subsequent
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid by
Landlord or paid over to a trustee, receiver or any other entity, whether under any bankruptcy act
or otherwise (any such payment is hereinafter referred to as a “Preferential Payment”),
then this Guaranty shall continue to be effective or shall be reinstated, as the case may be, and,
to the extent of such payment or repayment by Landlord, Tenant’s Obligations or part thereof
intended to be satisfied by such Preferential Payment shall be revived and continued in full force
and effect as if such Preferential Payment had not been made.

     4. Guarantor’s Representations and Warranties.

          (a) Qualification and Authority. Guarantor is a company duly organized, validly
existing and in good standing under the laws of Delaware. Guarantor has the right,

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power, and authority to execute, deliver, and perform this Guaranty. This Guaranty, when
executed and delivered by Guarantor, shall constitute the valid and binding agreement of Guarantor,
and shall be enforceable against Guarantor in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles. All
requisite authorizations, consents, resolutions and actions on the part of Guarantor have been or
will prior to the date hereof be obtained, adopted or taken, as applicable, by Guarantor in
connection with making and entering into this Guaranty. Neither this Guaranty nor the consummation
of any of the transactions contemplated hereby violates or shall violate any provision of any
agreement or document to which Guarantor is a party or to which Seller is bound.

          (b) Bankruptcy. Neither Guarantor nor any entity or person in Control of, having
Control over, or under common Control with Guarantor, regardless of the number of tiers of
ownership, is bankrupt under the Federal Bankruptcy Code, or has filed for protection or relief
under any applicable bankruptcy or creditor protection statute or has been threatened by creditors
with an involuntary application of any applicable bankruptcy or creditor protection statute.
Guarantor is not entering into the transactions described in this Agreement with an intent to
defraud any creditor or to prefer the rights of one creditor over any other. As used in this
Agreement, “Control” means ownership of voting securities sufficient to elect a majority of
the board of directors of a corporation, or analogous ownership interests of non-corporate
entities.

          (c) Contractual Obligations. Guarantor is not in default in the performance,
observance or fulfillment of any of the material obligations, covenants or conditions contained in
any contractual obligation of Seller beyond any applicable notice and cure period, and to
Guarantor’s knowledge, no condition exists that, with the giving of notice or the lapse of time or
both, would constitute such a default.

          (d) Disclosure. No financial statements or any other document, certificate or written
statement furnished to Landlord by Guarantor and, to the knowledge of Guarantor, no document or
statement furnished by any third party on behalf of Seller, for use in connection with this
Guaranty or the transactions contemplated herein, when taken as a whole, contains any untrue
representation, warranty or statement of a material fact, and none omits or will omit to state a
material fact necessary in order to make the statements contained herein or therein not misleading.
There is no material fact known to Guarantor that has had or will have a Material Adverse effect
(as defined below) and that has not been disclosed in writing to Buyer by Seller or by any third
party on behalf of Guarantor. As used herein, “Material Adverse Effect” means (A) a
material adverse effect upon the business, operations, properties, assets or condition (financial
or otherwise) of Guarantor or Tenant, with respect to such party, when taken as a whole, or (B) the
material impairment of the ability of Guarantor to perform its obligations under this Guaranty, or
(C) the material impairment of Landlord’s rights or remedies under the Guaranty. In determining
whether any individual event would result in a Material Adverse Effect, notwithstanding that such
event does not of itself have such effect, a Material Adverse Effect shall be deemed to have
occurred if the cumulative effect of such event and all other then occurring events and existing
conditions would result in a Material Adverse Effect.

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          (e) Suits, Judgments and Liens. There are no lawsuits, claims, suits, or legal,
administrative or other proceedings or investigations pending or, to Guarantor’s knowledge,
threatened against or affecting Guarantor, nor to Guarantor’s knowledge, is there any basis for any
of the same, and there are no lawsuits, suits or legal, administrative or other proceedings
pending in which Guarantor is the plaintiff or claimant and which relate to any Property; and there
is no action, suit or legal, administrative or other proceeding pending or, to Guarantor’s
knowledge, threatened which questions the legality or propriety of the transactions contemplated by
the Guaranty.

          Whenever in this Guaranty, or in any document or certificate executed on behalf of Guarantor
pursuant to this Guaranty, reference is made to the knowledge of Guarantor (whether by use of the
words “knowledge” or “known”, or other words of similar meaning), such shall be deemed to referred
to the actual knowledge of the following individuals, which individuals Guarantor represents and
warrants to Landlord have significant responsibility for any one or more of policy making, major
decisions or financial affairs of Guarantor: (i) Mr. Michael Andrews, (ii) Mr. Damon Fraser and
(iii) Mr. Fred T. Grant, Jr.

     5. Guarantor’s Financial Covenants. Guarantor shall provide, or cause to be provided,
to Landlord the following financial statements and information, all of which must be in a form
reasonably acceptable to Landlord:

          (a) promptly and in any event within ninety (90) days after the end of each Fiscal Year, (i)
audited statements of financial position of Guarantor as of the end of each such Fiscal Year,
including a balance sheet, statement of income, statement of shareholder’s equity (deficit) and
statement of cash flows for such Fiscal Year (“Annual Financial Statements”), which Annual
Financial Statements shall be duly certified by an officer of Guarantor to fairly represent the
financial condition of Guarantor, as of the date thereof provided, in no event however, will such
information be provided before any applicable SEC 10K filings are made (provided further, however,
that in the event that Guarantor fails to file its SEC 10K within ninety (90) days after any Fiscal
Year, Guarantor shall be obligated to deliver (A) on or before the ninetieth (90th) day
after the end of such Fiscal Year, financial statements of Guarantor regarding the fourth Fiscal
Quarter of such Fiscal Year, including a balance sheet and statement of profits and losses for such
Fiscal Quarter and (B) on the date Guarantor files its SEC 10K, the Annual Financial Statements,
which statements shall be duly certified by an officer of Guarantor to fairly represent the
financial condition of Guarantor, as of the date thereof), prepared by Guarantor in accordance with
generally accepted accounting principles as in effect in the United States of America from time to
time (“GAAP”), and accompanied by a statement of a nationally recognized accounting firm
acceptable to Landlord in its sole discretion that such financial statements present fairly, in all
material respects, the financial condition of Guarantor as of the end of the Fiscal Year being
reported on and that the results of the operations and cash flows for such year were prepared, and
are being reported on, in conformity with GAAP, and (ii) such other information of Guarantor
reasonably requested by Landlord in form and substance reasonably acceptable to Landlord;

          (b) promptly and in any event within forty-five (45) days after the end of each Fiscal
Quarter, for Fiscal Quarters 1-3, (i) quarterly statements of the financial position of Guarantor,
including a balance sheet, a statement of profits and losses, and a statement showing

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the cash flows for the previous twelve (12) month period, such quarterly statements of
financial position to be certified by an officer of Guarantor to fairly represent the financial
condition of Guarantor as of the date thereof and to have been prepared and reported in conformity
with GAAP and (ii) a compliance certificate from Guarantor, in form and substance reasonably
acceptable to Landlord and such other financial information of Guarantor reasonably requested by
Landlord supporting the statements contained in any such compliance certificate;

          (c) any financial statements distributed to any secured lender of Guarantor within five (5)
business days after such distribution; and

          (d) such other information with respect to the Guarantor that may be reasonably requested from
time to time by Landlord, within a reasonable time after the applicable request.

          “Fiscal Year” shall mean a fiscal year from approximately July to June and “Fiscal
Quarter” shall mean approximately July through September, approximately October through
December, approximately January through March, and approximately April through June. The last day
of each Fiscal Year is the Wednesday closest to June 30th.

          Notwithstanding any provision in this Guaranty to the contrary, for purposes of delivery of
the financial statements and information required to be delivered by Guarantor under this Guaranty,
Landlord agrees that Guarantor’s obligations for the delivery thereof shall be satisfied by a
single delivery of such financial statements and information to Drawbridge Special Opportunities
Fund LP, 1345 Avenues of the Americas, 46th Floor, New York, NY 10105, Attention: Constantine M.
Dakolias, CCO and Glenn P. Cummins, CFO with a copy to Fortress Investment Group, 5221 N. O’Connor
Boulevard, Suite 700, Irving, Texas 75039 (collectively “Drawbridge”) and Drawbridge will
make such financial statements and other information available to the Landlord under this
Guaranty; provided however, if Landlord is no longer an affiliate of Drawbridge, then this
provision shall no longer apply.

          Guarantor acknowledges that Landlord must comply with certain financial audit requirements and
Landlord will suffer damages from Guarantor’s failure to deliver any of the financial information
required in Subsections 5(i) though (v) (the “Key Financial Statements”) as and
when due. If Guarantor fails to deliver any Key Financial Statements as and when due, subject to
Force Majeure, Guarantor shall pay Landlord a fee equal to US$500 for each missing Key Financial
Statement per each day that Guarantor has failed to deliver any such Key Financial Statements (the
“Financial Statements Default Fee”). The Financial Statements Default Fee (y) shall be
immediately due and payable without notice or demand by Landlord and (z) is in addition to, and not
in lieu of, any other remedy of Landlord under this Guaranty regarding Guarantor’s failure to
deliver the Key Financial Statements. Guarantor’s payment of the Financial Statements Default Fee
does not cure any default caused by the failure to deliver any Key Financial Statement in a timely
manner.

     6. Waiver of Defenses. Guarantor waives (a) any right to require Landlord to (i)
proceed against Tenant or any other person or entity; (ii) proceed against or exhaust any security
held from Tenant or Guarantor; (iii) pursue any other remedy in Landlord’s power against Tenant
which Guarantor cannot itself pursue, and which would lighten its burden; (b) all statutes

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of limitation as a defense to any action brought against Guarantor by Landlord to the fullest
extent permitted by law; (c) any defense based upon any legal disability of Tenant, or any
discharge or limitation of the liability of Tenant to Landlord, whether consensual or arising by
operation of law or any bankruptcy, reorganization, receivership, insolvency, or debtor-relief
proceeding, or from any other similar cause; (d) presentment, demand, protest and notice of any
kind; and (e) any defense based upon or arising out of any defense which Tenant may have to the
payment or performance of any part of Tenant’s Obligations, other than any defense arising under
the express terms of the Lease. Guarantor waives all demand and notices, including demands for
performance, notices of non-performance, notices of non-payment and notice of acceptance of this
Guaranty.

     7. Effect of Tenant’s Bankruptcy. Without limiting anything contained in Section 4 of
this Guaranty, the liability of Guarantor under this Guaranty shall in no way be affected by: (a)
the release or discharge of Tenant in any creditor proceeding, receivership, bankruptcy or other
proceeding; (b) the impairment, limitation, or modification of Tenant’s liability or the estate, or
of any remedy for the enforcement of Tenant’s liability, which may result from the operation of any
present or future provision of the Bankruptcy Code (Title 11 of the United States Code, as amended;
11 U.S.C. §§ 101-1330) or any bankruptcy, insolvency, debtor relief statute (state or federal), any
other statute, or from the decision of any court; (c) the rejection or disaffirmance of the Lease,
or any portion of the Lease, in any such proceeding; (d) the cessation, from any cause whatsoever,
whether consensual or by operation of law, of Tenant’s liability to Landlord resulting from any
such proceeding; or (e) the modification or replacement of Tenant’s Obligations in any such
proceeding.

     8. Waiver of Subrogation.

          (a) Notwithstanding any other provision of this Guaranty to the contrary, until Tenant’s
Obligations are fully performed and paid, during the continuance of an Event of Default, Guarantor
hereby waives any claims or other rights which Guarantor may now have or hereafter acquire against
Tenant or any other guarantor of all or any of Tenant’s Obligations, which claims or other rights
arise from the existence or performance of Guarantor’s obligations under this Guaranty (all such
claims and rights are referred to as “Guarantor’s Conditional Rights”), including, without
limitation, any right of subrogation, reimbursement, exoneration, contribution, or indemnification,
any right to participate in any claim or remedy of Landlord against Tenant or any collateral which
Landlord now has or hereafter acquires, whether or not such claim, remedy or right arises in equity
or under contract, statute or common law, by any payment made hereunder or otherwise, including
without limitation, the right to take or receive from Tenant, directly or indirectly, in cash or
other property or by setoff or in any other manner, payment or security on account of such claim or
other rights. If, notwithstanding the foregoing provision, any amount shall be paid to Guarantor
on account of any Guarantor’s Conditional Rights and either (i) such amount is paid to Guarantor at
any time when Tenant’s Obligations shall not have been paid or performed in full during the
continuance of an Event of Default, or (ii) regardless of when such amount is paid to Guarantor,
any payment made by Tenant to Landlord is at any time determined to be a Preferential Payment, then
such amount paid to Guarantor shall be held in trust for the benefit of Landlord and shall
forthwith be paid to Landlord to be credited and applied upon Tenant’s Obligations, whether matured
or unmatured, in such order as Landlord, in its sole and absolute discretion, shall determine.

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          (b) During the continuance of an Event of Default, to the extent that any of the provisions of
subsection (a) of this Section 8 shall not be enforceable, Guarantor agrees that until such time as
Tenant’s Obligations have been paid and performed in full and the period of time has expired during
which any payment made by Tenant or Guarantor to Landlord may be determined to be a Preferential
Payment, Guarantor’s Conditional Rights to the extent not validly waived shall be subordinate to
Landlord’s right to full payment and performance of Tenant’s Obligations, and Guarantor shall not
enforce Guarantor’s Conditional Rights during such period.

     9. Costs and Expenses. If Guarantor fails to perform any of its obligations under
this Guaranty or if any dispute arises between the parties hereto concerning the meaning or
interpretation of any provision of this Guaranty, then the defaulting party or the party not
prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred
by the other party on account of such default and/or in enforcing or establishing its rights
hereunder, including, without limitation, court costs and reasonable attorneys’ fees and
disbursements. Any such attorneys’ fees and other expenses incurred by either party in enforcing a
judgement in its favor under this Guaranty shall be recoverable separately from and in addition to
any other amount included in such judgement, and such attorney’s fees’ obligation is intended to be
severable from the other provisions of this Guaranty and to survive and not be merged into any such
judgement.

     10. Notices.

          (a) Any notice, demand or request by Landlord to Guarantor shall be in writing and shall be
deemed to have been duly given or made if given or served by Landlord, (i) by hand delivery to
Guarantor, or (ii) by delivery to Guarantor via overnight courier such as Federal Express, or (iii)
by delivery to Guarantor via certified or registered mail addressed to Guarantor at the following
address:

Buffets, Inc.

c/o Buffet Holdings, Inc.

1460 Buffet Way

Eagan, Minnesota 55121

Attention: Mike Andrews, CEO

Telephone: (651) 365-2626

Facsimile: (651) 365-2721

with a copy to:

Buffets, Inc.

c/o Buffet Holdings, Inc.

1460 Buffet Way

Eagan, Minnesota 55121

Attention: H. Thomas Mitchell, Esq.

Telephone: (651) 365-2631

Facsimile: (651) 365-2224

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with a copy to:

Kirkland & Ellis, LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention: Gregory Spitzer, Esq.

Telephone: (312) 861-2115

Facsimile: (312) 660-0274

          (b) If given or served by Guarantor, (1) by hand delivery to Landlord, (2) by mailing same to
Landlord by U.S. registered or certified mail, postage prepaid, return receipt requested, or (3) by
delivery by overnight courier such as Federal Express, all delivered and addressed to Landlord at
the following address:

FIGRYANH LLC

c/o Drawbridge Special Opportunities Fund LP

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attn: Constantine M. Dakolias, CCO

and Glenn P. Cummins, CFO

Telephone: (212) 798-6100

Facsimile: (212) 202-3685

with a copy to:

Fortress Investment Group

5221 N. O’Connor Boulevard, Suite 700

Irving, Texas 75039

Attn: David Pettijohn

Telephone: (972) 532-4340

Facsimile: (972) 532-4343

with a copy to:

Sidley Austin LLP

555 West Fifth Street, Suite 4000

Los Angeles, California 90013-1010

Attn: Marc I. Hayutin, Esq.

Telephone: (213) 896-6018

Facsimile: (213) 896-6600

          (c) All notices, demands, requests or other communications hereunder shall be deemed to have
been given or served: (1) if hand delivered, on the date received (or the date delivery is refused)
by the recipient party; (2) if delivered by registered or certified mail, three (3) days after the
date of posting as marked on the U.S. postage receipt; and (3) if by Federal Express or similar
overnight courier service, on the date of receipt (or the date delivery is refused) by the
recipient party.

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          (d) Either Landlord or Guarantor may from time to time change its address for receiving
notices under this Guaranty by providing written notice to the other party in accordance with this
Section 10.

     11. Delay; Cumulative Remedies. No delay or failure by Landlord to exercise any right
or remedy against Tenant or Guarantor will be construed as a waiver of that right or remedy. All
remedies of Landlord against Tenant and Guarantor are cumulative.

     12. Jurisdiction; Waiver Of Jury Trial.

          GUARANTOR HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE
COUNTY OF NEW YORK, STATE OF NEW YORK AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS GUARANTY SHALL BE LITIGATED IN SUCH COURTS. GUARANTOR ACCEPTS,
GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY
DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY IN CONNECTION WITH THIS GUARANTY.

          GUARANTOR AND, BY ITS ACCEPTANCE HEREOF, LANDLORD EACH HEREBY WAIVE, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION OR PROCEEDING WITH RESPECT TO, IN CONNECTION
WITH, OR ARISING FROM THIS GUARANTY, OR THE GUARANTY’S VALIDITY, PROTECTION, INTERPRETATION,
COLLECTION OR ENFORCEMENT, OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING (INCLUDING TORT AND
CLAIMS FOR BREACH OF DUTY) BETWEEN GUARANTOR AND LANDLORD.

     13. Miscellaneous.

          (a) This Guaranty shall bind Guarantor, its successors and assigns, and shall inure to the
benefit of Landlord and its successors and assigns.

          (b) The invalidity or unenforceability of any one or more provisions of this Guaranty will not
affect any other provision.

          (c) This Guaranty and each and every term and provision thereof shall be construed in
accordance with the laws of the State of New York without regard to conflict of law principles.

          (d) Guarantor expressly declares that it knows and understands the contents of this Guaranty
and has had an opportunity to consult with legal counsel as to its form and content.

          (e) Neither this Guaranty nor any of its provisions may be waived, modified, amended,
discharged, or terminated except as set forth in writing signed by the party against which the
enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then
only to the extent set forth in that writing.

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     IN WITNESS WHEREOF, Guarantor has executed this instrument on the day and year first above
written.

	 	 	 	 	 
	 	“GUARANTOR”

BUFFETS, INC.,

a Minnesota Corporation

 	 
	 	By:  	                      /s/  Damon Fraser
 	 
	 	 	Name:  	Damon Fraser 	 
	 	 	Title:  	Vice PresidentEX-10.18

 

Exhibit 10.18

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

FIRE MOUNTAIN RESTAURANTS, LLC,

A DELAWARE LIMITED LIABILITY COMPANY,

RYAN’S RESTAURANT GROUP, INC.,

A SOUTH CAROLINA CORPORATION,

AND CERTAIN OTHER PARTIES DESCRIBED HEREIN

AS SELLERS

AND

FIGRYANF LLC,

A DELAWARE LIMITED LIABILITY COMPANY,

FIGRYANH LLC,

A DELAWARE LIMITED LIABILITY COMPANY,

AND CERTAIN OTHER PARTIES DESCRIBED HEREIN

AS BUYERS

 

 

PURCHASE AND SALE AGREEMENT

     This PURCHASE AND SALE AGREEMENT (“Agreement”) is entered into as of November 1, 2006, by and
between Fire Mountain Restaurants, LLC, a Delaware limited liability company (“FMR”), Ryan’s
Restaurant Group, Inc., a South Carolina corporation (“Ryan’s”), HomeTown Buffet, Inc., a Minnesota
corporation (“HomeTown”), and OCB Restaurant Company, LLC, a Minnesota limited liability company
(“OCB”; FMR, Ryan’s, HomeTown and OCB are referred to herein collectively as “Sellers” and each
individually as a “Seller”) and FIGRYANF LLC (“FIGRYANF”), FIGRYANH LLC, FIGRYANH-1 LLC, FIGRYANH-2
LLC, FIGRYANH-3 LLC, FIGRYANH-4 LLC, FIGRYANH-5 LLC, FIGRYANH-6 LLC, FIGRYANH-7 LLC, FIGRYANH-8
LLC, FIGRYANH-9 LLC, FIGRYANH-10 LLC, FIGRYANH-11 LLC, FIGRYANH-12 LLC, FIGRYANH-13 LLC,
FIGRYANH-14 LLC, FIGRYANH-15 LLC, FIGRYANH-16 LLC, each a Delaware limited liability company (each
are referred to herein collectively as “Buyers” and each individually as a “Buyer”). Buyers and
Sellers are from time to time referred to herein individually as a “Party”, and collectively as the
“Parties.”

R E C I T A L S:

          A. Buffets, Inc, is acquiring, in a merger transaction (the “Merger Transaction”), pursuant to
that certain Agreement and Plan of Merger dated July 24, 2006, between Ryan’s Restaurant Group,
Inc., Buffets, Inc., a Minnesota corporation (“Guarantor” or “Buffets”) and Buffets Southeast, Inc.
and all schedules and exhibits thereto (the “Merger Agreement”), Ryan’s Restaurant Group, Inc.

          B. In connection with the Merger Transaction, Sellers have agreed to sell to Buyers certain
Ryan’s Steakhouse, Fire Mountain Steakhouse, Old Country Buffet and HomeTown Buffet restaurant
properties (each individually a “Property and collectively the “Properties”), more particularly
described as follows:

All of the “Real Properties” (each individually, a “Real Property”), collectively described as
follows: good and indefeasible title in fee simple to the land described on Schedule 1
attached hereto (collectively, the “Owned Land”), good and indefeasible title in a leasehold or
subleasehold interest in the land described on Schedule 2 attached hereto (collectively,
the “Leased Land”, the Owned Land and the Leased Land are collectively herein referred to as the
“Land”), together with all rights, title and interest in and to all easements, appurtances and
rights relating to the Land, including, without limitation, Sellers’ right, title, and interest,
if any, in and to all (A) adjacent streets, alleys, rights-of-way and any adjacent strips or gores
of real estate; (B) buildings, structures and other improvements located on the Land (the
“Improvements”); and (C) the machinery, equipment and systems necessary for the operation of the
Properties that are “fixtures” pursuant to applicable law located at or in the Land or
Improvements, including, without limitation, Sellers’ right, title and interest, if any, of the
following fixtures located on the Land: the canopies, built-in walk-in coolers/refrigerator cases,
grill hoods, built-in freezers, HVAC equipment, fire sprinklers and fire suppression equipment,
lighting including emergency lighting, built-in-sinks, built-in shelving, awnings, and supports for
signs (the “Fixtures”). For

2

 

the purposes of this Agreement the term “Property” and “Properties” shall not include the
Restaurant Equipment (as defined in the Master Lease Agreements (as defined below)).

          C. Sellers desire to sell and assign to Buyers, and Buyers desire to purchase and assume from
Sellers, all of the Properties owned by Sellers, subject to the terms and conditions set forth in
this Agreement.

          D. Upon the consummation of the transactions contemplated herein, and concurrently therewith,
Sellers desire to lease from Buyers, and Buyers desire to lease to Sellers, the Properties pursuant
to certain Master Lease Agreements (as defined below), as more particularly described herein. Any
capitalized term used herein but not defined herein shall have the meaning set forth in the form
Master Lease Agreement (as defined below) attached hereto as Exhibit A.

A G R E E M E N T:

          NOW, THEREFORE, in consideration of the mutual covenants set forth herein, Sellers and Buyers
agree as follows:

     1. Conveyance of Properties. On the terms and subject to the conditions set forth in
this Agreement, at Closing (as hereinafter defined), Sellers shall sell and convey to Buyers, and
Buyers shall buy and accept from Sellers, all the Properties. Each Property shall be conveyed by
the Seller that owns such Property immediately prior to the Closing, to a Buyer selected by Buyers.

     2. Purchase Price. Subject to the terms of this Agreement, the purchase price (the
“Purchase Price”) for the Properties shall be $566,769,505.00, payable by wire transfer of
immediately available funds to Sellers at the Closing. The Purchase Price shall be paid by Buyers
to LandAmerica Financial Group Inc., as escrow agent (the “Title Company”) to be held in an escrow,
pursuant to the terms and conditions set forth in separate escrow instructions (the “Escrow
Instructions”) with the Title Company, in form acceptable to the Title Company, Buyers and Sellers
(the “Escrow”) in an account maintained by Title Company on behalf of the Parties and distributed
by Title Company at Closing to Sellers, or as Sellers may direct, pursuant to the terms and
conditions set forth in the Escrow Instructions.

     3. Representations, Warranties and Additional Covenants.

               (a) Sellers’ Representations and Warranties. Sellers hereby represent and warrant to
Buyers that as of the Closing:

               (i) Qualification and Authority. FMR is a limited liability company duly
formed, validly existing and in good standing under the laws of the State of Delaware.
Ryan’s is a corporation duly incorporated, validly existing and in good standing under the
laws of the State of South Carolina. HomeTown is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Minnesota. OCB is a limited
liability company duly formed, validly existing and in good standing under the laws of the
State of Minnesota. Each Seller has the right, power, and authority to execute, deliver,
and perform this Agreement. This Agreement, when

3

 

executed and delivered by Sellers and Buyers, shall constitute the valid and binding
agreement of Sellers, and shall be enforceable against Sellers in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles. All requisite authorizations, consents,
resolutions and actions on the part of each Seller have been or will prior to the Closing be
obtained, adopted or taken, as applicable, by each Seller (and its affiliates as and if
required) in connection with making and entering into this Agreement and the consummation of
the purchase and sale provided for herein, and no consents or approvals are required from
any party which is not a party to this Agreement in order to consummate such purchase and
sale. Neither this Agreement nor the consummation of any of the transactions contemplated
hereby violates or shall violate any provision of any agreement or document to which any
Seller is a party or to which any Seller is bound.

               (ii) Bankruptcy. Neither any Seller nor any entity or person in Control of,
having Control over, or under common Control with any Seller, regardless of the number of
tiers of ownership, is bankrupt under the Federal Bankruptcy Code, or has filed for
protection or relief under any applicable bankruptcy or creditor protection statute or to
Sellers’ knowledge has been threatened by creditors with an involuntary application of any
applicable bankruptcy or creditor protection statute. No Seller is entering into the
transactions described in this Agreement with an intent to defraud any creditor or to prefer
the rights of one creditor over any other. As used in this Agreement, “Control” means
ownership of voting securities sufficient to elect a majority of the board of directors of a
corporation, or analogous ownership interests of non-corporate entities.

               (iii) Leases. As used herein, “Leases” means any lease, tenancy, license,
sublease, assignment and/or other rental or occupancy agreement (including, without
limitation, any and all guarantees of any of the foregoing) heretofore or hereafter entered
into affecting the use, enjoyment or occupancy of the applicable Property or any portion
thereof, including any extensions, renewals, modifications or amendments thereof. Attached
hereto as Schedule 3(a)(iii) is a true, correct and complete list of all Leases
affecting any Property. Except as set forth in Schedule 3(a)(iii), to Sellers’
knowledge: (A) each Lease is in full force and effect; (B) all rents due and payable under
the Leases have been paid and no portion thereof has been paid for any period more than 30
days in advance; and (C) the rent payable under each Lease is the amount of fixed rent set
forth in Schedule 3(a)(iii). The Leases have not been assigned or pledged, and no
other person or entity has any interest therein except any Seller.

               (iv) Compliance With Laws; Zoning. To Sellers’ knowledge and except as set
forth in Schedule 3(a)(iv), the Properties are in compliance in all material
respects with all applicable zoning, subdivision and land use laws, regulations and
ordinances, all applicable health, fire, and building codes, and all other laws applicable
to the Properties. To Sellers’ knowledge, all required permits, licenses and certificates
for the lawful use and operation of the Properties, including, but not limited to,
certificates of occupancy, or the equivalent, have been obtained and are current and in full
force and effect. To Sellers’ knowledge, in the event that all or any part of the
Improvements located on any of the Real Properties are destroyed or damaged (A) the
reconstruction of

4

 

said Improvements to their condition prior to such damage or destruction would not be
contrary to applicable law, and (B) the existence of such Improvements thereafter for the
same use would not violate any zoning or other ordinances applicable thereto and would not
necessitate obtaining any variances or special permits, other than customary demolition,
building and other construction related permits. To Sellers’ knowledge, the permanent
parking spaces (both regular spaces and handicap spaces) at each Real Property do not
violate any requirements imposed by applicable laws with respect to parking. To Sellers’
knowledge, no legal proceedings are pending or threatened with respect to the zoning of any
Real Property. To Sellers’ knowledge, neither the zoning nor any other right to construct,
use or operate any Real Property is in any way dependent upon or related to any real estate
other than such Real Property.

               (v) Property Condition; Defects. To Sellers’ knowledge, except as set forth in
Schedule 3(a)(v): (A) there are no latent or patent structural or other material
defects or deficiencies in any Property; (B) city water supply, storm and sanitary sewers,
and electrical, gas and telephone facilities are available to each Real Property within the
boundary lines of such Real Property, are sufficient to meet the reasonable needs of each
Real Property as presently contemplated to be used, and no other utility facilities are
necessary to meet the reasonable needs of any Real Property as presently contemplated; (C)
except as disclosed in any Title Commitment (as defined below) or Survey (as defined below),
no part of any Real Property is within a flood plain and none of the Improvements create
encroachment over, across or upon the applicable Real Property’s boundary lines, rights of
way or easements, and no building or other improvements on adjoining land create such an
encroachment; (D) access to each Real Property for the current and contemplated uses thereof
is provided by means of dedicated, all weather public roads and streets which are physically
and legally open for use by the public, or by private easements; and (E) any liquid or solid
waste disposal, septic or sewer system located at any Real Property is in good and safe
condition and repair and in compliance with all applicable law. “Title Commitment” shall
mean a commitment for title insurance covering each fee or leasehold (as applicable) estate
in each Real Property from Title Company, setting forth the status of title to each Real
Property, showing all matters of record affecting each Real Property, together with a true,
complete and (to the extent available) legible copy of all documents referred to in each
Title Commitment; “Survey” shall mean an ALTA Survey covering for each Real Property which
has been received by any Buyer; and “Title Policy” shall mean an ALTA Extended Coverage
Owner’s Policy of Title Insurance for each Property, subject only to the Permitted
Exceptions, with such endorsements as Buyers shall reasonably require, including, but not
limited to, comprehensive, contiguity, survey, access and tax parcel, and without exception
for creditors’ rights (to the extent available and approved by the Title Company).

               (vi) Taxes. To Sellers’ knowledge, all real property and sales taxes with
respect to any Real Property which are due and payable have been paid when due and payable,
except for those taxes which are being contested in good faith by appropriate proceedings
and for which adequate reserves have been established. Except as disclosed in any Title
Commitment, there is not presently pending (and to Sellers’ actual knowledge, without duty
of inquiry, there is not contemplated) any special assessment against any Property or any
part thereof. To Sellers’ knowledge, except as

5

 

disclosed in any Title Commitment, no tax liens have been filed and no claims are being
asserted with respect to any such taxes. To Sellers’ knowledge, the charges, accruals and
reserves on the books of each Seller in respect of any of the foregoing taxes or other
governmental charges are in accordance with generally accepted accounting principles,
consistently applied.

               (vii) Contractual Obligations. No Seller is in default in the performance,
observance or fulfillment of any of the material obligations, covenants or conditions
contained in any contractual obligation of such Seller beyond any applicable notice and cure
period, which default would have a Material Adverse Effect (as hereinafter defined), and to
Sellers’ knowledge, no condition exists that, with the giving of notice or the lapse of time
or both, would constitute such a default.

               (viii) Disclosure. No financial statements or any other document, certificate
or written statement furnished to any Buyer by any Seller and to Sellers’ knowledge, no
document or statement furnished by any third party on behalf of any Seller, for use in
connection with this Agreement or the transactions contemplated herein, including without
limitation the Property Documents, when taken as a whole, contains any untrue
representation, warranty or statement of a material fact, and none omits or will omit to
state a material fact necessary in order to make the statements contained herein or therein
not misleading. There is no material fact known to any Seller that has had or will have a
Material Adverse Effect and that has not been disclosed in writing to Buyers by any Seller
or by any third party on behalf of any Seller. As used herein, “Material Adverse Effect”
means (A) a material adverse effect upon the business, operations, properties, assets or
condition (financial or otherwise) of any Seller with respect to such party, when taken as a
whole, or (B) the material impairment of the ability of any Seller to perform its material
obligations under any of the Transaction Documents (as defined in Section 4, below), or (C)
the material impairment of any Buyer’s rights or remedies under any of the Transaction
Documents. In determining whether any individual event would result in a Material Adverse
Effect, notwithstanding that such event does not of itself have such effect, a Material
Adverse Effect shall be deemed to have occurred if the cumulative effect of such event and
all other then occurring events and existing conditions would result in a Material Adverse
Effect.

               (ix) Suits, Judgments and Liens. To Sellers’ knowledge, except as expressly
set forth on Schedule 3(a)(ix), (A) there are no lawsuits, claims, suits, or legal,
administrative or other proceedings or investigations pending or to Sellers’ knowledge,
threatened against or affecting any Seller, or any Property (including, without limitation
eminent domain or condemnation proceedings), and there are no lawsuits, suits or legal,
administrative or other proceedings pending in which any Seller is the plaintiff or claimant
and which relate to any Property; and (B) there is no action, suit or legal, administrative
or other proceeding pending or threatened which questions the legality or propriety of the
transactions contemplated by the Transaction Documents.

               (x) FMR’s Net Worth. FMR has a positive net worth, as determined in accordance
with generally accepted accounting principles in effect as of the date of Closing, of not
less than Seventy Five Million Dollars ($75,000,000).

6

 

               (xi) Ownership of Sellers Post-Merger. The document attached as Schedule
3(a)(xi) correctly depicts the ownership structure of Sellers immediately following the
Merger Transaction.

Whenever in this Agreement, or in any document or certificate executed on behalf of any Seller
pursuant to this Agreement, reference is made to the knowledge of Sellers (whether by use of the
words “knowledge” or “known”, or other words of similar meaning), such shall be deemed to refer to
the actual knowledge of the following individuals, which individuals each Seller represents and
warrants have significant responsibility for any one or more of policy making, major decisions, or
financial affairs of each Seller or have significant responsibility for the management of the
Properties: (1) Mr. Michael Andrews, (2) Mr. Damon Fraser, and (3) Mr. Fred T. Grant Jr.

               (b) Buyers’ Representations and Warranties. Buyers hereby represent and warrant to
Sellers that as of the date of this Agreement and as of the Closing:

               (i) Each Buyer is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Delaware. Each Buyer has the right, power, and
authority to execute, deliver, and perform this Agreement. The Agreement, when executed and
delivered by Buyers and Sellers, shall constitute the valid and binding agreement of each
Buyer, and shall be enforceable against each Buyer in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles.

               (ii) All requisite authorizations, consents, resolutions and actions on the part of
each Buyer, have been obtained, adopted or taken, as applicable, by each Buyer (and its
affiliates, as and if required) in connection with making and entering into this Agreement
and the consummation of the purchase and sale provided for herein, and no consents or
approvals are required from any party which is not a party this Agreement in order to
consummate such purchase and sale. Neither this Agreement nor the consummation of any of
the transactions contemplated hereby violates or shall violate any provision of any
agreement or document to which any Buyer is a party or to which any Buyer is bound.

               (c) Use of Net Sale Proceeds. Each Seller hereby covenants that Net Sale Proceeds
shall be used by Sellers to accomplish the following on the Closing Date: (i) to pay a portion of
the purchase price paid by Sellers in the Merger Transaction; (ii) to repay certain indebtedness
of Buffets and Sellers and/or their affiliates; (iii) for general working capital of Buffets and
Sellers; and/or (iv) to pay certain fees and expenses incurred by Sellers related to the Merger
Transaction. As used herein, “Net Sales Proceeds” means the Purchase Price, net of (A) all fees
and costs to be paid by Sellers pursuant to the terms of this Agreement, plus (B) such other
customary and ordinary costs incurred by Sellers in connection with the sale of the Properties to
Buyers and reasonably approved by Buyers prior to Closing.

     4. Closing. As used herein, (x) “Closing” means the delivery to each Party through
Escrow of all the items to be delivered to such Party as described below in clause (a) and (b) of this

7

 

Section 4; and (y) “Closing Date” means that date that the Closing actually occurs. Provided
that the Merger Transaction funds and closes on the Closing Date, the Closing shall be deemed to
have occurred immediately prior to the funding and closing of the Merger Transaction.

               (a) Buyers shall deliver or cause to be delivered to Sellers through Escrow all of the
following:

               (i) The Purchase Price in accordance with Section 2.

               (ii) Four (4) counterpart originals of (A) a Master Lease Agreement in the form
attached hereto as Exhibit A for each of the Properties conveyed to any Buyer other
than FIGRYANF (the “Hold Master Lease Agreement”), (B) a separate Master Lease Agreement in
the form attached hereto as Exhibit A for each of the Properties conveyed to
FIGRYANF (collectively with the Hold Master Lease Agreement, the “Master Lease
Agreements”), and (C) a Lease Memorandum in the form attached hereto as Exhibit B
for each Property covered by any of the Master Lease Agreements, or a substantially
equivalent form complying with state-specific recording requirements (collectively,
“Memoranda” and each individually, a “Memorandum”), each duly executed by the applicable
Buyer.

               (iii) Four (4) originals of the Subordination, Non-Disturbance and Attornment Agreement
(Master Lease Agreement) in the form attached hereto as Exhibit C for the Master
Lease Agreements, or a substantially equivalent form complying with state-specific recording
requirements or another form reasonably acceptable to Sellers and Buyers (collectively, the
“Master Lease Subordination Agreements”), duly executed by Buyers, and duly notarized.

               (iv) Any and all required transfer tax forms.

               (v) Landlord lien waivers in form reasonably acceptable to Sellers.

               (b) Sellers shall deliver or cause to be delivered to Buyers through Escrow all of the
following:

               (i) Special Warranty Deed in the form of Exhibit D, or a substantially
equivalent form complying with state-specific recording requirements (each, a “Deed”;
collectively, the “Deeds”), conveying to the applicable Buyer each Real Property subject
only to the Permitted Exceptions, duly executed by the applicable Seller and properly
notarized and acknowledged;

               (ii) Lease Assignment in the form of Exhibit E (each, a “Lease Assignment”;
collectively, the “Lease Assignments”), conveying to the applicable Buyer the applicable
Seller’s interest in each Leased Property subject only to the Permitted Exceptions, duly
executed by the applicable Seller and properly notarized and acknowledged;

8

 

               (iii) Internal Revenue Code Section 1445 Certifications in the form of Exhibit
F, and any state-specific income tax withholding certificates reasonably required by
Buyers, each duly executed by each Seller;

               (iv) Four (4) counterpart originals of each Master Lease Agreement, duly executed by
the applicable Seller;

               (v) Any instruments or other documents required to be delivered to the applicable
Buyer, as landlord, and the applicable Seller, as tenant, pursuant to the Master Lease
Agreements, including, without limitation, a Guaranty from Guarantor to the applicable
Buyer, duly executed by Guarantor, for each Master Lease Agreement (collectively, the
“Guaranties”; each individually, a “Guaranty”).

               (vi) Evidence reasonably satisfactory to Buyers and Title Company that each Seller is
fully authorized to have entered into this Agreement, and to consummate the transactions
contemplated herein, including without limitation selling the Properties to Buyers pursuant
to the terms of this Agreement, and entering into the Master Lease Agreements.

               (vii) The amount of all fees and expenses of Buyers that Sellers are obligated to pay
pursuant to subsection 9(b), to the extent not previously paid.

               (viii) Four (4) originals of each of the Assignment of Leases, each duly executed by
the applicable Seller.

               (ix) Four (4) originals of each of the Master Lease Subordination Agreements, duly
executed by Sellers, and duly notarized.

               (x) Any and all required transfer tax forms.

               (xi) Any and all required ground lessor consents.

               (xii) Opinions (in form and substance reasonably satisfactory to Buyers) of Sellers’
independent counsel as to good standing, corporate organization, corporate authorization and
enforceability of the transactions contemplated under the Master Lease Agreements.

As used in this Agreement, “Transaction Documents” means, collectively, this Agreement, the Master
Lease Agreements, the Guaranties, the Deeds, the Lease Assignments, the Master Lease Subordination
Agreements, and any other agreements entered into between any Seller and any Buyer, or any Seller
and Guarantor, in connection with any of the foregoing.

               (c) Sellers shall deliver to the applicable Buyer possession of the Properties subject to the
Master Lease Agreements.

9

 

     5. Intentionally Deleted

     6. Prorations; Fees and Costs.

               (a) No proration shall be made of real estate and personal property taxes, utility charges and
maintenance expenses with respect to the Properties (the Parties acknowledging that Sellers shall
be responsible for all such charges, taxes and expenses). Rental payments under the Master Lease
Agreements (other than rental payments under the Leases) shall be prorated as of the Closing Date
such that the applicable Seller shall prepay a prorated portion of the rent due from the applicable
Seller to the applicable Buyer under the Master Lease Agreements applicable to the month in which
the Closing occurs, as contemplated by the Master Lease Agreements.

               (b) Sellers shall pay all the following (collectively, “Expenses”) (i) all closing fees and
expenses, including without limitation all Escrow fees, recording costs (other than mortgage
recording costs and mortgage taxes) and applicable deed stamp taxes, and transfer taxes for each of
the Properties (including, without limitation, all Personal Property relating thereto and excluding
mortgage taxes); (ii) all fees and expenses associated with the preparation of all Property
Documents, including without limitation Title Commitments; (iii) all premiums for the Title
Policies (including costs for the comprehensive, contiguity, survey, access and tax parcel
endorsements) and all final surveys for the Real Properties; (iv) 50% of all fees payable to
Navigant (such 50% portion not to exceed $500,000); (v) all other reasonable fees and expenses of
Buyers (including, without limitation Buyers’ reasonable attorneys’ fees and expenses) in
connection with the transactions contemplated herein and in the other Transaction Documents,
including without limitation fees and expenses incurred by Buyers in connection with the
preparation and negotiation of all Transaction Documents; the preparation of any proposal,
commitment or other documents; any diligence, syndication, computer usage, duplication,
consultation, travel, audits, or searches; any insurance or appraisals; and (vi) any reasonable
post-Closing activities or work of Buyers (to the extent that such costs for the post-closing
activities or work would have been Sellers’ responsibility if such activity or work occurred
pre-closing but will occur post-closing due to circumstances under any Seller’s control).
Notwithstanding the foregoing, (1) Sellers’ obligation to pay the Expenses and/or reimburse Buyers
for the Expenses shall not exceed $5,770,000 in the aggregate (the “Expense Cap”); and (2)
“Expenses” shall not include any of the items listed in clauses (i) — (iv) above if they were
incurred prior to June 1, 2006.

               (c) Buyers acknowledge that they have received from Buffets, on behalf of Sellers, expense
deposits totaling $1,000,000 (the “Initial Expense Deposit”). Sellers also previously delivered to
Buyers an additional expense deposit of $1,000,000 (such deposit, collectively with the Initial
Expense Deposit, the “Expense Deposit”) to be applied against Buyers’ fees and expenses that
Sellers is obligated to pay pursuant to this Agreement. Buyers shall expend the Expense Deposit
for bonafide reasonable third party fees, costs and expenses relating to the Closing. If the
Closing fails to occur for any reason other than a default hereunder by Buyers, the Expense Deposit
shall be retained by Buyers. If the Closing fails to occur by reason of a default hereunder by
Buyers, the Expense Deposit shall be promptly returned by Buyers to Sellers.

10

 

     7. Conditions to Closing.

               (a) Conditions to Buyers’ Obligations. Buyers’ obligation to purchase the Properties
is subject to the satisfaction of the following conditions or Buyers’ written waiver of such
conditions on or before the Closing Date. Buyers may waive in writing any or all of such
conditions in their sole and absolute discretion.

               (i) Sellers’ representations and warranties set forth in subsection 3(a) of this
Agreement shall be true and correct in all material respects as of the Closing.

               (ii) Buyers shall have obtained from counsel reasonably acceptable to Buyers legal
opinion letters, each in form and substance reasonably acceptable to Buyers, that the Master
Lease Agreements and Guaranties are enforceable against the applicable Seller and Guarantor,
as applicable, in accordance with their terms.

               (iii) Without limiting anything contained in clause 10(a)(ii), no order, stay,
injunction or restraining order, pending or threatened litigation, law or regulation, or any
other condition shall exist with respect to any Seller, Guarantor and/or the Property that
in the reasonable determination of Buyers could have a Material Adverse Effect.

               (iv) Sellers shall have delivered to Buyers evidence reasonably satisfactory to Buyers
that any and all rights of any third party to purchase any Real Property (or any portion
thereof) have been waived by any such third party.

               (v) Sellers shall have paid any and all monetary liens encumbering any Real Property
except any mechanics liens not yet due and payable or any liens which have been bonded or
insured over to Buyers’ reasonable satisfaction.

In addition, Buyers’ obligations under this Agreement shall be subject to the condition subsequent
of the closing and funding of the Merger Transaction pursuant to the Merger Agreement on the
Closing Date. If the closing and funding of the Merger Transaction fails to occur on the Closing
Date, then (1) the transactions contemplated herein shall be null and void, (2) Sellers shall (and
shall cause the Title Company to, to the extent applicable) immediately return to Buyers the
Purchase Price and any other funds previously delivered by Sellers to Title Company and/or Buyers
hereunder and Sellers shall direct the Title Company to immediately deliver all conveyance and
other documents to the Party that deposited such documents, (3) the Parties will reasonably
cooperate with each other, at Sellers’ sole cost and expense, to cancel (and if necessary, reverse)
transfers or conveyances of Properties to Buyers, the leasing of the Properties to Sellers pursuant
to the Master Lease Agreements, and any other transactions contemplated herein, and (4) Sellers
shall release, indemnify, protect, defend and hold harmless all Landlord Parties (as defined in the
form of Master Lease Agreement attached as Exhibit A hereto) from and against any and all
claims, demands, damages, obligations, losses, liabilities, costs and expenses (including
reasonable attorneys’, accountants’, consultants’, and expert witness fees and expenses) directly
or indirectly related to or arising out of or in connection with any failure of the Merger
Transaction to close and fund on the Closing Date.

               (b) Condition to Sellers’ Obligations. Sellers’ obligation to consummate the
transactions contemplated by this Agreement is subject to Buyers having performed all material

11

 

obligations to be performed by Buyers prior to and at Closing under this Agreement. Sellers
may waive in writing such condition in its sole and absolute discretion.

               (c) At the Closing, Buyers shall pay the Purchase Price to Sellers by wire transfer of
immediately available funds, which may be completed through the Escrow.

     8. Notices. Any notice provided or permitted to be given under this Agreement must be
in writing and may be served by depositing same in the United States mail, addressed to the Party
to be notified, postage prepaid and certified, with return receipt requested, by delivering the
same in person to such Party (including express or courier service), by delivering the same by
overnight courier such as Federal Express or by delivering the same by confirmed facsimile. Notice
given in accordance herewith shall be effective upon the receipt at the address of the addressee,
or the second attempt at delivery, as evidenced by the regular records of the person or entity
attempting delivery, regardless of whether the same is actually received. For purposes of notice,
the addresses of the Parties (and, for informational purposes only, Title Company) are as follows:

	 	 	 	 	 
	 

	 	If to Sellers:
	 	Buffets, Inc.

c/o Buffet Holdings, Inc.

1460 Buffet Way

Eagan, Minnesota 55121

Attention: Mr. Mike Andrews, CEO

Telephone: (651) 365-2626

Facsimile: (651) 365-2721

12

 

	 	 	 	 	 
	 

	 	 	 	with a copy to:
 

Buffets, Inc.

c/o Buffet Holdings, Inc.

1460 Buffet Way

Eagan, Minnesota 55121

Attention: H. Thomas Mitchell, Esq.

Telephone: (651) 365-2631

Facsimile: (651) 365-2224
 

and a copy to:
 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention: Gregory Spitzer, Esq.

Telephone: (312) 861-2115

Facsimile: (312) 660-0274
	 
	 	 	 	 
	 

	 	If to Buyers:
	 	FIGRYANH LLC

c/o Drawbridge Special Opportunities Fund LP

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attn: Constantine M. Dakolias, CCO and

         Glenn P. Cummins, CFO

Telephone: (212) 798-6100

Facsimile: (212) 202-3685
 

With a copy to:
 

Fortress Investment Group

5221 N. O’Connor Boulevard, Suite 700

Irving, Texas 75039

Attn: David Pettijohn

Telephone: (972) 532-4340

Facsimile: (972) 532-4343
 

and a copy to:
 

Sidley Austin LLP

555 West Fifth Street, Suite 4000

Los Angeles, California 90013-1010

Attn: Marc I. Hayutin, Esq.

Telephone: (213) 896-6018

Facsimile: (213) 896-6600

13

 

	 	 	 	 	 
	 

	 	 	 	and a copy to:
 

Wilensky & Jones, LLP

3109 Carlisle Street, Suite 100

Dallas, Texas 75204

Attn: Richard S. Wilensky, Esq.

Telephone: (214) 220-1133

Facsimile: (214) 220-2131

               Either Party may change its address for notice by giving written notice thereof to the other
Party in accordance with the provisions of this Section 8.

     9. Commissions. Sellers and Buyers each (a) represents to the other Party that such
representing Party has dealt with no broker or brokers in connection with the negotiation,
execution and delivery of this Agreement or the sale of the Properties contemplated herein, and (b)
hereby indemnifies, defends, protects (with counsel selected by the other Party) and holds such
other Party wholly free and harmless of, from and against any and all claims or demands for any and
all brokerage commissions and/or finder’s fees due or alleged to be due as a result of any
agreement or purported agreement made by such indemnifying Party.

     10. Assigns. This Agreement shall inure to the benefit of and be binding on the
Parties hereto and their respective heirs, legal representatives, successors and assigns. This
Agreement may not be assigned by any Seller without the prior written consent of Buyers, which
Buyers may withhold in their sole and absolute discretion. This Agreement may be assigned by
Buyers without the consent of Sellers provided that Buyers deliver to Sellers written notice of
such assignment. Notwithstanding the foregoing, upon any assignment of this Agreement by Buyers,
Buyers shall not be relieved of liability for the performance of any obligation of Buyers contained
in this Agreement unless and until Buyers’ assignee shall have assumed in writing all of the duties
and obligations of Buyers hereunder, provided however that Buyers shall not be released from their
duty to return Expense Deposit funds pursuant to a default under subsection 6(c) of this Agreement.

     11. Termination; Remedies; Sellers Indemnity.

               (a) Buyers’ Remedies. Without limiting anything contained in subsection 11(c), if the
Closing does not occur by reason of any Seller’s default hereunder, then Buyers shall be entitled
to pursue any remedies to which Buyers may be entitled under this Agreement, at law and/or in
equity, including without limitation the right to specifically enforce this Agreement, to record a
notice of pendency of action against any of the Properties and/or to pursue an action for damages.
Except as specifically provided herein, any remedies of Buyers pursuant to this Agreement shall be
in addition to, and not in lieu of, any remedies of Buyers pursuant to the other Transaction
Documents.

               (b) Sellers’ Remedies. Without limiting anything contained in subsection 11(c), if
the Closing does not occur by reason of any Buyer’s default hereunder, and Sellers are in
compliance with all of its obligations under this Agreement, then Sellers shall be entitled to

14

 

pursue any remedies to which Sellers may be entitled under this Agreement, at law and/or in
equity, including without limitation the right to specifically enforce this Agreement, and/or to
pursue an action for damages. Any remedies of Sellers pursuant to this Agreement shall be in
addition to, and not in lieu of, any remedies of Sellers pursuant to the other Transaction
Documents.

               (c) Transaction Documents. Nothing in this Section 11 shall limit any obligations or
remedies of any Party under any of the other Transaction Documents, including without limitation
under the Master Lease Agreements.

     12. Disclosure. Buyers and Sellers shall keep information regarding terms of this
Agreement confidential and neither Party will announce or otherwise make public the terms of this
transaction without the prior consent of the other Party, which consent shall not be unreasonably
withheld, except that each Party may disclose the terms this Agreement (a) to its, and its
affiliates’, officers, directors, employees, accountants, agents, potential financing sources,
legal counsel and such other third parties as reasonably necessary to effectuate the closing of the
transaction contemplated herein, and (b) as required by law, regulation, stock exchange rule,
administrative agency or court order.

     13. Further Assurances. Sellers and Buyers shall cooperate with each other and in a
timely manner execute any and all additional documents, papers and other assurances, and shall do
any and all acts reasonably necessary to give effect to the purchase and sale provided for herein.

     14. Severability. If any provision of this Agreement is adjudicated by a court having
jurisdiction over a dispute arising herefrom to be invalid or otherwise unenforceable for any
reason, such invalidity or unenforceability shall not affect the other provisions hereof and such
remaining provisions shall continue in force and effect to the full extent permitted by law.

     15. Applicable Law; Jurisdiction; Waiver of Jury Trial.

               (a) This Agreement shall be governed and construed in accordance with the laws of the State of
New York without regard to conflicts of laws principles, and except in any action to specifically
enforce performance of this Agreement, in which event the law of the state of the Real Property
with respect to which such specific performance is requested shall govern.

               (b) EACH OF SELLERS AND BUYERS HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK OR WITHIN THE COUNTY AND STATE IN
WHICH ANY PROPERTY IS LOCATED AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF
OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS. EACH OF SELLERS AND BUYERS
ACCEPTS FOR ITSELF AND IN CONNECTION WITH THE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE
NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS,
AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
AGREEMENT.

15

 

               (c) EACH OF BUYERS AND SELLERS, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES
AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING (WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE) BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS AGREEMENT.
EACH OF SELLERS AND BUYERS ACKNOWLEDGES THAT THE PROVISIONS OF THIS SUBSECTION ARE A MATERIAL
INDUCEMENT TO THE OTHER PARTY’S ENTERING INTO THE AGREEMENT.

     16. Whole Agreement; Modification. Except as provided below, this Agreement is the
entire agreement between Sellers and Buyers concerning the sale of the Properties and no
modification hereof or subsequent agreement relative to the subject matter hereof shall be binding
on either Party unless reduced to writing and signed by the Party to be bound. This Agreement
supersedes the Letter of Intent dated June 8, 2006, as amended in writing, regarding the Ryan’s
Sale Leaseback Facility, by and between Drawbridge Special Opportunities Fund LP, Buffets, Inc.,
and Buffets Holdings, Inc. All Exhibits and Schedules attached hereto are incorporated herein by
this reference for all purposes.

     17. Survival. The provisions of Sections 3, 6, 7, 8, 9, and 10 through 23
(inclusive), shall survive Closing for a period of one (1) year. All other provisions of this
Agreement shall terminate at Closing.

     18. Time of the Essence. Time is of the essence in the performance of each and every
provision of this Agreement. In the event that the last day for taking any action or serving
notice under this Agreement falls on a Saturday, Sunday or legal holiday, the time period shall be
extended until the following business day.

     19. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which, taken together, shall constitute one and
the same instrument. A facsimile or photocopy signature on this Agreement or any notice delivered
hereunder shall have the same legal effect as an original signature.

     20. Attorneys’ Fees. If any action or proceeding is instituted to enforce or
interpret any provision of this Agreement, the prevailing Party shall be entitled to recover its
attorneys’ fees and costs from the losing Party.

     21. No Waiver. The waiver by one Party of the performance of any covenant, condition
or promise, or of the time for performing any act, under this Agreement shall not invalidate this
Agreement nor shall it be considered a waiver by such Party of any other covenant, condition or
promise, or of the time for performing any other act required, under this Agreement. The exercise
of any remedy for which this Agreement provides shall not be a waiver of any remedy provided by
law, and the provisions of this Agreement for any remedy shall not exclude any other remedies
unless they are expressly excluded.

     22. Date of Agreement. All references in this Agreement to “the date hereof” or
similar references shall be deemed to refer to the first date set forth above.

16

 

     23. Transaction Characterization. The Parties intend that the conveyance of the
Properties to Buyers be an absolute conveyance in effect as well as form, and the instruments to be
delivered at Closing (including, without limitation, the Master Lease Agreements and the other
Transaction Documents) are not intended to serve or operate as a mortgage, equitable mortgage, deed
of trust, security agreement or financing or trust arrangement of any kind. After the execution
and delivery of the Deeds and Lease Assignments and payment to Sellers of the entire Purchase
Price, Sellers will have no legal or equitable interest or any other claim or interest in the
Properties other than as set forth in the Transaction Documents. Furthermore, the Parties intend
for each of the Master Lease Agreements to be a true lease and not a transaction creating a
financing lease, capital lease, equitable mortgage, mortgage, deed of trust, security interest or
other financing arrangement, and the economics realities of each of the Master Lease Agreements are
those of a true lease. Notwithstanding the existence of the Master Lease Agreements, neither Party
shall contest the validity, enforceability or characterization of the sale and purchase of the
Properties by Buyers pursuant to this Agreement as an absolute conveyance, and both Parties shall
support the intent expressed herein that the purchase of the Properties by Buyers provides for an
absolute conveyance and does not create a joint venture, partnership, equitable mortgage, trust,
financing device or arrangement, security interest or the like, if and to the extent that any
challenge occurs.

     24. State Specific Provisions.

               (a) Alabama. In addition to the documents to be delivered pursuant to Section 4(b)
above, Sellers shall also deliver or cause to be delivered to Buyers through Escrow the following:

                    (i) A Broker’s Lien Affidavit in the form of Exhibit I attached hereto.

               (b) Arkansas. Each deed to Real Property in Arkansas shall bear on its face the
following, which shall be completed and signed on behalf of the applicable Buyer: “I certify under
penalty of false swearing that at least the legally correct amount of documentary stamps have been
placed on this instrument.” Said affidavit shall be followed by an address to which real estate tax
statements pertaining to that Real Property may be mailed.

               (c) California. The following additional provisions shall apply to the
extent the laws of the State of California govern the interpretation or enforcement of this
Agreement with respect to Real Property located in the State of California (and nothing in this
section is intended to derogate from any choice of law provision contained in this Agreement):

                    (i) Natural Hazard Disclosure Act. As used in this Agreement, the term “NHD Act”
shall refer to the Natural Hazard Disclosure Act, as found in California Government Code Sections
8589.3, 8589.4 and 51183.5, and California Public Resources Code Sections 2621.9, 2694 and 4136,
and any successor statutes or laws.

                    (ii) Natural Hazard Disclosure Statement. Prior to Closing, Sellers, at its sole cost
and expense, shall cause to be delivered to Buyers a “Natural Hazard Disclosure Statement” with
regard to the Real Properties located in the State of California to the extent such delivery is
required under the NHD Act.

17

 

               (d) Florida.

               (i) Pursuant to Florida Statute 404.056(8), Buyers are hereby notified as follows:
Radon is a naturally occurring radioactive gas that, when it has accumulated in a building
in sufficient quantities, may present health risks to persons who are exposed to it over
time. Levels of radon that exceed federal and state guidelines have been found in buildings
in Florida. Additional information regarding radon and radon testing may be obtained from
your county health unit.

               (ii) Sellers and Buyers shall file a completed form DR-129 upon the recordation of the
Deed.

               (e) Georgia.

               (iii) In addition to the documents to be delivered pursuant to Section 4(a) above,
Buyers shall deliver or cause to be delivered to the Title Company at or prior to Closing an
executed “Purchaser’s Affidavit Regarding Commercial Real Estate Brokers” in substantially
the same form as that attached hereto as Exhibit J.

               (iv) In addition to the documents to be delivered pursuant to Section 4(b) above,
Sellers shall deliver or cause to be delivered to the Title Company at or prior to Closing
an executed “Owner’s Affidavit” and “Affidavit of Seller’s Residence” in substantially the
same forms as those attached hereto as Exhibit K and Exhibit L.

               (v) To the extent that the laws of the State of Georgia govern the interpretation or
enforcement of this Agreement with respect to Real Property located in the State of Georgia
(and nothing herein is intended to derogate from any choice of law provision contained in
this Agreement), all references herein to “attorneys’ fees” or “attorney’s fees” shall be
deemed to refer to “reasonable attorney’s (attorneys’) fees actually incurred”.

               (f) Illinois. At Closing, Sellers hereby agree to deliver to Buyers either an
affidavit and supporting documentation reasonably required by Buyers confirming that none of the
Illinois Bulk Sales Statutes (hereinafter defined) apply as a result of the sale of any of the
Property located in the State of Illinois or, if any of them do, an indemnity that is acceptable to
Buyers from any and all claims, demands, causes of action, losses, costs, damages, liabilities and
expenses which may be made against Buyers or which Buyers may sustain or incur under the Illinois
Bulk Sales Statutes as a result of the transactions contemplated hereby. For purposes hereof, the
term “Illinois Bulk Sales Statutes” means those Illinois statutes that would impose liability on
the Buyers, or a lien on the Property, as a result of the applicable Seller’s failure to pay any
sales and use, corporate net income, employment, unemployment, capital stock, franchise, corporate
loans, retailer’s occupation tax or other tax or contribution payable by the applicable Seller to
the State of Illinois, including, without limitation, Section 902(d) of the Illinois Income Tax Act
and Section 5(j) of the Illinois Retailer’s Occupation Tax Act. Sellers agree to indemnify, defend
and hold Buyers harmless from and against any and all losses, costs, damages, expenses (including,
without limitation, court costs and reasonable attorney’s fees) and

18

 

liabilities which may be sustained or incurred by Buyers, and/or any and all claims, demands,
suits, proceedings and causes of action which may be brought or raised against Sellers, as a result
of or arising from Sellers’ failure to deliver to Buyers a full waiver and release from the
Illinois Department of Revenue of any claim that Buyers have any liability or obligations under
902(d) of the Illinois Income Tax Act or Section 5(j) of the Illinois Retailer’s Occupation Tax Act
(including, without limitation, any tax obligations or liabilities (or interest or penalties
connected therewith) of Sellers) by reason of the transactions provided for herein.

               (g) Indiana. The following provisions shall apply to the extent the laws of the State
of Indiana govern the interpretation or enforcement of this Agreement with respect to Real Property
located in the State of Indiana (nothing in this subsection is intended to derogate from any choice
of law provision contained in this Agreement).

               (vi) The following provisions are added to Section 4(b) with respect to Real Property
located in Indiana:

(xii) With respect to any Land located in Indiana that:(A) contains
one (1) or more facilities that are subject to reporting under
Section 312 of the federal Emergency Planning and Community Right
to-Know-Act of 1986 (42 U.S.C. 11022); or (B) is the site of one (1)
or more underground storage tanks for which notification is required
under 42 U.S.C. 6991(a); and I.C. 13-23-1-2; (c) (8)(A); or (C) is
listed on the Comprehensive Environmental Response, Compensation and
Liability Information System (CERCLIS) in accordance with Section 116
of CERCLA (42 U.S.C. 9616), and which has not been subject to bonding
or other financial assurances released by the appropriate
governmental agency after compliance with applicable Indiana laws
(“Property”); an Environmental Disclosure for Transfer of Real
Property in the form of Exhibit M properly completed and
executed by an authorized person for the applicable Seller and in
accordance with Indiana Code Section 13-25-3-2.

(xiii) a Vendor’s Closing Affidavit in form and substance
acquired by the Buyers or the Title Company to remove the
standard exceptions from Buyer’s Title Commitment; and

(xiv) Sales Disclosure Form in the form of Exhibit N,
properly completed and executed by an authorized person for
the applicable Seller.

19

 

               (h) Iowa. The following provisions shall apply to the extent that the laws of the
State of Iowa govern the interpretation or enforcement of this Agreement with respect to Real
Property located in the State of Iowa (and nothing in this section is intended to derogate from any
choice of law provision contained in this Agreement):

               (vii) In addition to the documents to be delivered pursuant to Section 4(b) above,
Sellers shall deliver or cause to be delivered to Buyers through Escrow a Real Estate
Transfer-Declaration of Value and a Real Estate Transfer-Groundwater Hazard Statement in the
form promulaged by the Iowa Department of Revenue and Finance and the Iowa Department of
Natural Resources, respectively, properly completed and executed by an authorized person for
the applicable Seller.

               (i) Kansas. In addition to the documents to be delivered pursuant to Section 4(b)
above, Sellers shall deliver or cause to be delivered to Buyers through escrow, for each property
located in Kansas, a completed and executed Kansas Real Estate Validation Questionnaire as required
by K.S.A. 79-1437c. The form of this document is attached hereto as Exhibit O.

               (j) Louisiana. The following provisions shall apply to the extent that the laws of
the State of Louisiana govern the interpretation or enforcement of this Agreement with respect to
Real Property located in the State of Louisiana (and nothing in this section is intended to
derogate from any choice of law provision contained in this Agreement).

               (viii) Louisiana Terminology. The terms “realty”, “real property” and “real
estate” shall mean immovable property; the term “fixtures” shall mean “component parts,” the
term “fee estate” shall mean full ownership; the term “personal property” shall mean movable
property; the term “tangible property” shall mean corporeal property; the term “intangible
property” shall mean incorporeal property; the term “easement” shall mean servitude; the
term “buildings” shall include other constructions; the phrase “covenant running with the
land” and other words of similar import shall mean a real right or a recorded lease of
immovable property; and the term “county” shall mean parish.

               (ix) Corporate Resolutions. A copy of the resolutions of the board of
directors of the applicable Seller authorizing the sale of the Real Property, complying with
the requirements of Section 4(b)(vi), with an original live signature certification by the
secretary or assistant secretary of the applicable Seller, shall be attached to each Deed
and Lease Assignment when it is filed of record.

               (k) Maryland.

               (x) Sellers shall be solely responsible for and shall pay all County Recordation Taxes
assessed on the transfer of the Properties located in the State of Maryland pursuant to MD.
Code Ann., Tax-Property §12-102, et seq. (2006), as amended.

               (xi) In addition to the documents to be delivered pursuant to Section 4(b) above,
Sellers shall deliver or caused to be delivered to Buyers through Escrow an

20

 

Certification of Exemption from Withholding Upon Disposition of Maryland Real Estate
with Affidavit of Residence or Principal Residence in the form of Exhibit P,
properly completed and executed by an authorized person of the applicable Seller in
accordance with MD Code Ann., Tax-General §10-912 (2006), as amended.

               (l) Michigan. The definition of “Real Property” found in Section A of the Recitals
hereto shall include the right to make all divisions under Section 108 of the Land Division Act,
Act No. 288 of the Public Acts of 1967, as amended (the “Land Division Act”).

               (m) Minnesota. In addition to the documents to be delivered pursuant to Section 4(a)
above, the applicable Buyer shall execute and deliver or cause to be delivered a Certificate of
Real Estate Value. In addition to the documents to be delivered pursuant to Section 4(b) above,
Sellers shall execute and deliver a certificate signed by the applicable Seller warranting that
there are no “wells” on the Real Property within the meaning of Minn. Stat. § 103I or if there are
“wells”, a well certificate in the form required by law. In addition to the representations of
Sellers contained in Section 3(a)(vi) above, each Seller represents and warrants that (y) Sellers
have no knowledge of the existence of an abandoned individual sewage treatment system on the Real
Property, and that sewage generated on the Real Property goes to a facility permitted by the
Minnesota Pollution Control Agency, and (z) the Real Property consists of a separate tax parcel or
parcels and is not assessed for real estate tax purposes as part of any other lot or parcel.

               (n) Missouri. In addition to the documents to be delivered pursuant to Section 4(a)
above, the applicable Buyer shall execute and deliver or cause to be delivered a Certificate of
Value if required by the applicable County in Missouri for which a parcel of Owned Land is located.

               (o) Oklahoma. With respect to Properties located in the State of Oklahoma, such term
shall not include oil, gas, and other minerals previously reserved or conveyed of record.

               (p) Pennsylvania.

               (xii) Sellers hereby represent and warrant that none of the Properties located in the
Commonwealth of Pennsylvania are currently assessed for municipal real estate taxes under
the Pennsylvania Farmland and Forest Land Assessment Act (72 P.S. § 5490.1 et seq.), as
amended, or any similar legislation, on the basis of its value for agricultural, open space
or other designated use. Sellers hereby agrees to pay, whether at Closing or at any time
thereafter, any additional or “roll-back” taxes, and all interest and penalties thereon,
arising from a breach of the foregoing representation and warranty as well as any loss,
claim, cost, damage or expense suffered or incurred by Buyers as a result of such breach.

               (xiii) Sellers hereby agree to deliver to the Title Company, either an affidavit and
supporting documentation reasonably required by the Title Company confirming that none of
the Bulk Sales Statutes (hereinafter defined) apply as a result of the sale of any of the
Property located in the Commonwealth of Pennsylvania or, if any of

21

 

them do, an indemnity that is mutually acceptable to the Title Company and Buyers.
Accordingly, Escrow Agent, in its capacity as the Title Company, hereby agrees that, subject
to receiving such affidavit and supporting documentation or such indemnity, as the case may
be, it will issue to Buyers an endorsement to Buyers’ title policy that provides coverage
for any liens or liability arising as a result of the applicable Seller’s failure to pay any
tax payable pursuant to the Bulk Sales Statutes. Sellers hereby further agree that, in the
event the indemnity described above is required, Buyers will be specifically identified as a
third party beneficiary of the indemnity to the extent that Buyers suffer any losses or
damages that are not covered by Buyers’ title insurance policy. For purposes hereof, the
term “Bulk Sales Statutes” means those Pennsylvania statutes that would impose liability on
the Buyers, or a lien on the Property, as a result of Sellers’ failure to pay any sales and
use, corporate net income, employment, unemployment, capital stock, franchise, corporate
loans or other tax or contribution payable by Sellers to the Commonwealth of Pennsylvania,
including without limitation, the following statutes: 69 P.S. § 529, 43 P.S. § 788.3, 72
P.S. § 7240 and 72 P.S. § 1403.

               (q) South Carolina.

               (xiv) Sellers shall be solely responsible for the payment of the South Carolina Deed
Recording Fee as required under Section 12-24-10, et seq., Code of Laws of South Carolina,
1976, as amended, and SC Revenue Ruling #04-6.

               (xv) In addition to the documents to be delivered pursuant to Section 4(b) above,
Sellers shall deliver or cause to be delivered to Buyers through Escrow the following:

               (1) Affidavit of Value in the form of Exhibit G, properly completed and
executed by an authorized person for the applicable Seller in accordance with
Section 12-42-70, Code of Laws of South Carolina, 1976, as amended, and SC Revenue
Ruling #04-6; and

               (2) An affidavit in the form of Exhibit H, properly completed, as
provided by Section 12-8-580, et seq., Code of Laws of South Carolina, 1976, as
amended, and SC Revenue Advisory Bulletin #2-06.

               (xvi) Sellers will cooperate with Buyers in the applicable Buyer’s completion of Form
I-290, if required under Section 12-8-580, et. seq., Code of Laws of South Carolina, 1976,
as amended, and the applicable Buyer’s remittance of any withholding to the S.C. Department
of Revenue pursuant thereto.

               (r) Texas. The following provisions shall apply with respect to Texas Properties with
respect to the sections of this Agreement noted below.

               (xvii) With respect to Properties located in Texas subsection 6(b)(iii) shall read as
follows:

22

 

               “(iii) all premiums for Texas Title Policies (including costs for the
following endorsements: comprehensive (Form T-19.1), contiguity (Form
T-25), and access (Form T-23).”

               (xviii) With respect to Properties located in Texas subsection 15(a) shall read as
follows:

               “(a) This Agreement shall be governed and construed in accordance with
the laws of the State of New York without regard to conflicts of law
principles, except Texas law shall control whether (i) the a transaction
transfers or creates an interest in real property for security purposes or
otherwise, the nature of the interest in real property transferred or
created by the transaction, the method for foreclosure of a lien on real
property, the nature of an interest in real property that results from
foreclosure, or the manner and effect of recording or failing to record
evidence of the a transaction that transfers or creates an interest in real
property, and (ii) in any action to specifically enforce performance of this
Agreement, but in any such action only as to those laws related to the
remedy of specific enforcement and those other laws applicable to the
exceptions above.”

               (s) Virginia. In addition to the documents to be delivered pursuant to Section 4(b)
above, Sellers shall deliver or cause to be delivered to Buyers through Escrow, the following:

               (xix) A Virginia form R-5 in the form attached hereto as Exhibit Q, properly
completed and executed; and

               (xx) A Virginia form R-5P in the form attached hereto as Exhibit R, properly
completed and executed.

               (t) Washington. Sellers shall be solely responsible for and shall pay all real estate
excise tax and other transfer taxes payable on the sale of the Properties located in the State of
Washington. In addition to the documents to be delivered pursuant to section 4(b) the applicable
Seller and the applicable Buyer shall execute and deliver at Closing a real estate excise tax
affidavit with respect to the transfer of the Properties located in the State of Washington.

[NO FURTHER TEXT ON THIS PAGE]

23

 

     IN WITNESS WHEREOF, Sellers and Buyers have executed this Agreement as of the date first set
forth above.

WITNESSES:

	 	 	 
	/s/
Amanda D. Gabriel
	 	 
	 	 	 
	Signature of First Witness

	 	 
	 
	 	 
	Amanda D. Gabriel
	 	 
	 	 	 
	Printed Name of First Witness
	 	 
	 
	 	 
	/s/
Brian D. Krieter
	 	 
	 	 	 
	Signature of Second Witness
	 	 
	 
	 	 
	Brian D. Krieter
	 	 
	 	 	 
	Printed Name of Second Witness
	 	 

SELLERS:

 

FIRE MOUNTAIN RESTAURANTS, LLC,

a Delaware limited liability company

	 	 	 	 	 	 	 
	By:	 	Ryan’s Restaurant Group, Inc.,

a South Carolina corporation,

its Sole Member
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Fred T. Grant Jr.
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Fred T. Grant Jr.
	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	SVP FINANCE
	 	 	 	 	 	 	 

WITNESSES:

	 	 	 
	/s/
Amanda D. Gabriel
	 	 
	 	 	 
	Signature of First Witness

	 	 
	 
	 	 
	Amanda D. Gabriel
	 	 
	 	 	 
	Printed Name of First Witness
	 	 
	 
	 	 
	/s/
Brian D. Krieter
	 	 
	 	 	 
	Signature of Second Witness
	 	 
	 
	 	 
	Brian D. Krieter
	 	 
	 	 	 
	Printed Name of Second Witness
	 	 

RYAN’S RESTAURANT GROUP, INC.,

a South Carolina corporation

	 	 	 	 	 
	By:	 	/s/ Fred T. Grant Jr.
	 	 	 
	 

	 	Name:
	 	Fred T. Grant Jr.
	 	 	 	 	 
	 

	 	Title:
	 	SVP FINANCE
	 	 	 	 	 

[Signatures Continue Next Page]

Signature Page - 1

 

WITNESSES:

	 	 	 
	/s/
Amanda D. Gabriel
	 	 
	 	 	 
	Signature of First Witness

	 	 
	 
	 	 
	Amanda
D. Gabriel
	 	 
	 	 	 
	Printed Name of First Witness
	 	 
	 
	 	 
	/s/
Brian D. Krieter
	 	 
	 	 	 
	Signature of Second Witness
	 	 
	 
	 	 
	Brian
D. Krieter
	 	 
	 	 	 
	Printed Name of Second Witness
	 	 

HOMETOWN BUFFET, INC.,

a Minnesota corporation

	 	 	 	 	 
	By:	 	/s/ Damon Fraser
	 	 	 
	 

	 	Name:
	 	Damon Fraser
	 	 	 	 	 
	 

	 	Title:
	 	Vice President and Assistant
Secretary
	 	 	 	 	 

WITNESSES:

	 	 	 
	/s/
Amanda D. Gabriel
	 	 
	 	 	 
	Signature of First Witness

	 	 
	 
	 	 
	Amanda
D. Gabriel
	 	 
	 	 	 
	Printed Name of First Witness
	 	 
	 
	 	 
	/s/
Brian D. Krieter
	 	 
	 	 	 
	Signature of Second Witness
	 	 
	 
	 	 
	Brian
D. Krieter
	 	 
	 	 	 
	Printed Name of Second Witness
	 	 

OCB RESTAURANT COMPANY, LLC,

a Minnesota limited liability company

	 	 	 	 	 
	By:	 	/s/ Damon Fraser
	 	 	 
	 

	 	Name:
	 	Damon Fraser
	 	 	 	 	 
	 

	 	Title:
	 	Vice President and Assistant
Secretary
	 	 	 	 	 

[Signatures Continue Next Page]

Signature Page - 2

 

WITNESSES:

/s/
Elizabeth Ruiz

Signature of First Witness

Elizabeth
Ruiz

Printed Name of First Witness

/s/
Marcia Sharp

Signature of Second Witness

Marcia
Sharp

Printed Name of Second Witness

 

WITNESSES:

/s/
Elizabeth Ruiz

Signature of First Witness

Elizabeth
Ruiz

Printed Name of First Witness

/s/
Marcia Sharp

Signature of Second Witness

Marcia
Sharp

Printed Name of Second Witness

BUYERS:

FIGRYANH LLC,

a Delaware limited liability company,

individually and on behalf of FIGRYANH-1

LLC, FIGRYANH-2 LLC, FIGRYANH-3 LLC,

FIGRYANH-4 LLC, FIGRYANH-5 LLC, FIGRYANH-6

LLC, FIGRYANH-7 LLC, FIGRYANH-8 LLC,

FIGRYANH-9 LLC, FIGRYANH-10 LLC,

FIGRYANH-11 LLC, FIGRYANH-12 LLC,

FIGRYANH-13 LLC, FIGRYANH-14 LLC,

FIGRYANH-15 LLC, and FIGRYANH-16 LLC, each

a Delaware limited liability company, as

its sole member

By:                      /s/
Constantine M. Dakolias

 

Constantine M. Dakolias, Vice President

FIGRYANF LLC,

a Delaware limited liability company

By:                      /s/
Constantine M. Dakolias

 

Constantine M. Dakolias, Vice President

Signature Page - 3

 

Attachments:

	 	 	 
	Schedule 1 -

	 	The Owned Properties
	Schedule 2 -

	 	The Leased Properties
	Schedule 3(a)(iii) -

	 	Leases
	Schedule 3(a)(iv) -

	 	Laws and Zoning
	Schedule 3(a)(v) -

	 	Property Condition and Defects
	Schedule 3(a)(ix) -

	 	Suits, Judgments and Liens
	Schedule 3(a)(xi) -

	 	Ownership of Sellers Post-Merger
	Schedule 4 -

	 	Intentionally Omitted
	Exhibit A

	 	Form of Master Lease Agreement
	Exhibit B -

	 	Form of Lease Memorandum
	Exhibit C -

	 	Form of Master Lease Subordination Agreement
	Exhibit D -

	 	Form of Special Warranty Deed
	Exhibit E -

	 	Form of Lease Assignment
	Exhibit E-1 -

	 	Intentionally Omitted
	Exhibit F -

	 	Form of IRC Section 1445 Certification
	Exhibit G -

	 	Form of South Carolina Affidavit of Value
	Exhibit H -

	 	Form of South Carolina Seller’s Affidavit for Nonresident Seller Withholding
	Exhibit I

	 	Form of Alabama Broker’s Lien Affidavit
	Exhibit J

	 	Form of Georgia Purchaser’s Affidavit Regarding Commercial Real Estate Brokers
	Exhibit K

	 	Form of Georgia Owner’s Affidavit
	Exhibit L

	 	Form of Georgia Affidavit of Seller’s Residence
	Exhibit M

	 	Form of Indiana Environmental Disclosure for Transfer of Real Property
	Exhibit N

	 	Form of Indiana Sales Disclosure
	Exhibit O

	 	Form of Kansas Real Estate Validation Questionnaire
	Exhibit P

	 	Form of Certification of Exemption from Withholding Upon Disposition of Maryland Real Estate with Affidavit of Residence or Principal Residence
	Exhibit Q

	 	Form of Virginia Nonresident Real Property Owner Registration (Virginia Form R-5)
	Exhibit R

	 	Form of Virginia Nonresidential Property Owner Partner/Shareholder Schedule (Virginia Form R-5P)

Attachments

 

 

SCHEDULE 1

THE OWNED PROPERTIES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	1.

	 	 	102	 	 	3517 Clemson Boulevard
	 	Anderson
	 	SC
	2.

	 	 	104	 	 	6124 White Horse Road
	 	Greenville
	 	SC
	3.

	 	 	105	 	 	1304 Bower Parkway
	 	Columbia
	 	SC
	4.

	 	 	106	 	 	1703 Bypass 72 NE
	 	Greenwood
	 	SC
	5.

	 	 	107	 	 	151 Dorman Center Drive
	 	Spartanburg
	 	SC
	6.

	 	 	108	 	 	2367 Dave Lyle Boulevard
	 	Rock Hill
	 	SC
	7.

	 	 	109	 	 	1707 Charleston Highway
	 	West Columbia
	 	SC
	8.

	 	 	110	 	 	208 Bobby Jones Expy
	 	Martinez
	 	GA
	9.

	 	 	111	 	 	2020 Barnett Shoals Road
	 	Athens
	 	GA
	10.

	 	 	112	 	 	3034 Peach Orchard Boulevard
	 	Augusta
	 	GA
	11.

	 	 	114	 	 	1953 Whiskey Road
	 	Aiken
	 	SC
	12.

	 	 	115	 	 	1900 Manchester Expy
	 	Columbus
	 	GA
	13.

	 	 	116	 	 	422 W. Belmont Drive
	 	Calhoun
	 	GA
	14.

	 	 	117	 	 	209 Stephenson Avenue
	 	Savannah
	 	GA
	15.

	 	 	118	 	 	2305 Shorter Avenue SW
	 	Rome
	 	GA
	16.

	 	 	119	 	 	55 Pace Court
	 	Hiram
	 	GA
	17.

	 	 	120	 	 	1228 N. Westover Boulevard
	 	Albany
	 	GA
	18.

	 	 	121	 	 	6561 Atlanta Highway
	 	Montgomery
	 	AL
	19.

	 	 	122	 	 	5104 Hixson Pike
	 	Hixson
	 	TN
	20.

	 	 	123	 	 	5326 Ringgold Road
	 	Chattanooga
	 	TN
	21.

	 	 	126	 	 	1501 West Poinsett
	 	Greer
	 	SC
	22.

	 	 	127	 	 	10017 S. Memorial Parkway
	 	Huntsville
	 	AL
	23.

	 	 	128	 	 	2230 Edsel Lane N.W.
	 	Corydon
	 	IN
	24.

	 	 	130	 	 	5338 Bardstown Road
	 	Louisville
	 	KY
	25.

	 	 	131	 	 	1001 Regency Plaza Boulevard
	 	McDonough
	 	GA

Schedule 1

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	26.

	 	 	134	 	 	8180 US 31 S
	 	Indianapolis
	 	IN
	27.

	 	 	135	 	 	1808 University Drive
	 	Huntsville
	 	AL
	28.

	 	 	136	 	 	8165 US Hwy 51 N.
	 	Millington
	 	TN
	29.

	 	 	137	 	 	6410 Calhoun Memorial Highway
	 	Easley
	 	SC
	30.

	 	 	141	 	 	921 Wimberly Drive SW
	 	Decatur
	 	AL
	31.

	 	 	142	 	 	1310 W. 38th Street
	 	Marion
	 	IN
	32.

	 	 	143	 	 	2380 Wisteria Drive
	 	Snellville
	 	GA
	33.

	 	 	145	 	 	1992 Watson Boulevard
	 	Warner Robins
	 	GA
	34.

	 	 	147	 	 	1622 West Palmetto Street
	 	Florence
	 	SC
	35.

	 	 	153	 	 	7321 Rivers Avenue
	 	N. Charleston
	 	SC
	36.

	 	 	155	 	 	1390 Broad Street
	 	Sumter
	 	SC
	37.

	 	 	156	 	 	9645 Kingston Pike
	 	Knoxville
	 	TN
	38.

	 	 	161	 	 	2227 Marion Mount Gilead Road
	 	Marion
	 	OH
	39.

	 	 	163	 	 	150 Keith Drive
	 	Canton
	 	GA
	40.

	 	 	164	 	 	1053 Patton Avenue
	 	Asheville
	 	NC
	41.

	 	 	165	 	 	6999 Miller Lane
	 	Dayton
	 	OH
	42.

	 	 	166	 	 	205 E. Mountcastle Drive
	 	Johnson City
	 	TN
	43.

	 	 	168	 	 	4811 Grape Road
	 	Mishawaka
	 	IN
	44.

	 	 	179	 	 	1470 Skibo Road
	 	Fayetteville
	 	NC
	45.

	 	 	180	 	 	9006 Pensacola Boulevard
	 	Pensacola
	 	FL
	46.

	 	 	182	 	 	2404 Memorial Drive
	 	Kingsport
	 	TN
	47.

	 	 	183	 	 	6734 Lee Highway
	 	Chattanooga
	 	TN
	48.

	 	 	184	 	 	2400 Airline Drive
	 	Bossier City
	 	LA
	49.

	 	 	185	 	 	4051 Ryan Street
	 	Lake Charles
	 	LA
	50.

	 	 	186	 	 	2730 N. Dirksen Parkway
	 	Springfield
	 	IL
	51.

	 	 	187	 	 	1273 N. Brightleaf Boulevard
	 	Smithfield
	 	NC
	52.

	 	 	188	 	 	10052 Two Notch Road
	 	Columbia
	 	SC
	53.

	 	 	189	 	 	3370 Venture Parkway
	 	Duluth
	 	GA

Schedule 1 - Page 2

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	54.

	 	 	190	 	 	829 St. Andrews Boulevard
	 	Charleston
	 	SC
	55.

	 	 	191	 	 	3253 Ambassador Caffery
	 	Lafayette
	 	LA
	56.

	 	 	193	 	 	518 N. Sagamore Parkway
	 	Lafayette
	 	IN
	57.

	 	 	195	 	 	230 Collins Road
	 	Cedar Rapids
	 	IA
	58.

	 	 	203	 	 	1100 Robert Road
	 	Slidell
	 	LA
	59.

	 	 	204	 	 	4260 Dowlen Road
	 	Beaumont
	 	TX
	60.

	 	 	205	 	 	11650 Coursey Boulevard
	 	Baton Rouge
	 	LA
	61.

	 	 	206	 	 	2941 Bert Kouns Industrial Loop
	 	Shreveport
	 	LA
	62.

	 	 	207	 	 	8925 Watson Road
	 	Webster Grove
	 	MO
	63.

	 	 	208	 	 	155 West Bay Area Boulevard
	 	Webster
	 	TX
	64.

	 	 	211	 	 	4200 G Miller Road
	 	Flint
	 	MI
	65.

	 	 	212	 	 	34615 Warren Road
	 	Westland
	 	MI
	66.

	 	 	213	 	 	2501 S. Campbell Avenue
	 	Springfield
	 	MO
	67.

	 	 	214	 	 	3024 N. Macarthur Drive
	 	Alexandria
	 	LA
	68.

	 	 	216	 	 	3579 Pennridge Drive
	 	Bridgeton
	 	MO
	69.

	 	 	218	 	 	10810 W. 75th Street
	 	Shawnee
	 	KS
	70.

	 	 	220	 	 	2310 FM 2004
	 	Texas City
	 	TX
	71.

	 	 	221	 	 	3323 N. Rock Road
	 	Wichita
	 	KS
	72.

	 	 	222	 	 	7201 Crestwood Boulevard
	 	Birmingham
	 	AL
	73.

	 	 	223	 	 	10934 E. 21st South
	 	Tulsa
	 	OK
	74.

	 	 	224	 	 	3435 Lebanon Pike
	 	Hermitage
	 	TN
	75.

	 	 	225	 	 	910 S. Range Avenue
	 	Denham Springs
	 	LA
	76.

	 	 	228	 	 	4450 Ryans Way
	 	Cincinnati
	 	OH
	77.

	 	 	229	 	 	7045 Jimmy Carter Boulevard
	 	Norcross
	 	GA
	78.

	 	 	232	 	 	14691 Huron Street
	 	Taylor
	 	MI
	79.

	 	 	233	 	 	3813 Riverdale Road
	 	Memphis
	 	TN
	80.

	 	 	235	 	 	1900 N.W. 66th Street
	 	Clive
	 	IA
	81.

	 	 	237	 	 	7211 Hwy. 6 South
	 	Houston
	 	TX

Schedule 1 - Page 3

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	82.

	 	 	238	 	 	102 South 21st Street
	 	Rogers
	 	AR
	83.

	 	 	241	 	 	4580 N. Illinois Street
	 	Swansea
	 	IL
	84.

	 	 	246	 	 	2400 Louisville Avenue
	 	Monroe
	 	LA
	85.

	 	 	247	 	 	2702 Wilma Rudolph Boulevard
	 	Clarksville
	 	TN
	86.

	 	 	249	 	 	1520 Martin Luther King
	 	Houma
	 	LA
	87.

	 	 	250	 	 	6835 N. East Loop 820
	 	N. Richland Hill
	 	TX
	88.

	 	 	251	 	 	3940 Grandview Drive
	 	Simpsonville
	 	SC
	89.

	 	 	252	 	 	1501 S. Cherry Lane
	 	White Settlement
	 	TX
	90.

	 	 	253	 	 	301 S. Valley Mills Drive
	 	Waco
	 	TX
	91.

	 	 	254	 	 	1748 S.W. Railroad Avenue
	 	Hammond
	 	LA
	92.

	 	 	255	 	 	510 Rangeline Road
	 	Joplin
	 	MO
	93.

	 	 	256	 	 	730 Elmwood Road
	 	Lansing
	 	MI
	94.

	 	 	260	 	 	3210 Bay Street
	 	Saginaw
	 	MI
	95.

	 	 	261	 	 	1920 Mel Browning Street
	 	Bowling Green
	 	KY
	96.

	 	 	262	 	 	3607 Highway 17
	 	N. Myrtle Beach
	 	SC
	97.

	 	 	264	 	 	1502 SC Hwy 9 Bypass West
	 	Lancaster
	 	SC
	98.

	 	 	265	 	 	2900 E. Franklin Boulevard
	 	Gastonia
	 	NC
	99.

	 	 	266	 	 	485 N Business IH 35
	 	New Braunfels
	 	TX
	100.

	 	 	267	 	 	730 Jake Alexander Boulevard S
	 	Salisbury
	 	NC
	101.

	 	 	268	 	 	1829 Old Fort Parkway
	 	Murfreesboro
	 	TN
	102.

	 	 	269	 	 	3725 Alpine Avenue
	 	Comstock Park
	 	MI
	103.

	 	 	270	 	 	3202 Interstate Highway 30
	 	Greenville
	 	TX
	104.

	 	 	271	 	 	5140 Hinkleville Road
	 	Paducah
	 	KY
	105.

	 	 	272	 	 	909 Tripp Road
	 	Mesquite
	 	TX
	106.

	 	 	273	 	 	107 Executive Court
	 	Danville
	 	VA
	107.

	 	 	274	 	 	2415 Browns Bridge Road
	 	Gainesville
	 	GA
	108.

	 	 	276	 	 	851 Highway 287 N
	 	Mansfield
	 	TX
	109.

	 	 	278	 	 	1413 N. Loop 336 West
	 	Conroe
	 	TX

Schedule 1 - Page 4

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	110.

	 	 	279	 	 	220 Jackson Court
	 	Lumberton
	 	NC
	111.

	 	 	280	 	 	1400 Hwy 64 West
	 	Conway
	 	AR
	112.

	 	 	281	 	 	2706 Walton Way
	 	Marion
	 	IL
	113.

	 	 	282	 	 	823 Joe Frank Harris Parkway
	 	Cartersville
	 	GA
	114.

	 	 	283	 	 	2863 Arlington Road
	 	Akron
	 	OH
	115.

	 	 	285	 	 	1450 Benvenue Road
	 	Rocky Mount
	 	NC
	116.

	 	 	286	 	 	2102 N.W. Cache Road
	 	Lawton
	 	OK
	117.

	 	 	287	 	 	1004 W. Anthony Drive
	 	Champaign
	 	IL
	118.

	 	 	291	 	 	908 Interstate 70 Drive SW
	 	Columbia
	 	MO
	119.

	 	 	292	 	 	301 East Loop 281
	 	Longview
	 	TX
	120.

	 	 	293	 	 	1202 North Main Street
	 	Suffolk
	 	VA
	121.

	 	 	294	 	 	71 Stonebrook Place
	 	Jackson
	 	TN
	122.

	 	 	296	 	 	119 W. Highway 332
	 	Lake Jackson
	 	TX
	123.

	 	 	297	 	 	127 River Road
	 	Gadsden
	 	AL
	124.

	 	 	300	 	 	8815 Baseline Road
	 	Little Rock
	 	AR
	125.

	 	 	301	 	 	994 N. Lexington Springmill
	 	Mansfield
	 	OH
	126.

	 	 	302	 	 	1616 Sandifer Road
	 	Seneca
	 	SC
	127.

	 	 	303	 	 	1813 Parmer Lane West
	 	Austin
	 	TX
	128.

	 	 	304	 	 	1201 Hwy 45 North
	 	Columbus
	 	MS
	129.

	 	 	305	 	 	5626 S. Broadway Avenue
	 	Tyler
	 	TX
	130.

	 	 	307	 	 	138 Paul Huff Parkway NW
	 	Cleveland
	 	TN
	131.

	 	 	308	 	 	401 S. Tulane Avenue
	 	Oak Ridge
	 	TN
	132.

	 	 	309	 	 	917 Valley Creek Drive
	 	Farmington
	 	MO
	133.

	 	 	311	 	 	362 Cox Creek Parkway
	 	Florence
	 	AL
	134.

	 	 	312	 	 	1201 E. Admiral Doyle Drive
	 	New Iberia
	 	LA
	135.

	 	 	314	 	 	1034 Executive Drive
	 	Elizabethtown
	 	KY
	136.

	 	 	315	 	 	1509 Lafayette Parkway
	 	Lagrange
	 	GA
	137.

	 	 	316	 	 	2580 N. Franklin Street
	 	Christiansburg
	 	VA

Schedule 1 - Page 5

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	138.

	 	 	317	 	 	665 Scranton Road
	 	Brunswick
	 	GA
	139.

	 	 	318	 	 	4302 N. Belt Highway
	 	St. Joseph
	 	MO
	140.

	 	 	320	 	 	6082 U S Highway 98
	 	Hattiesburg
	 	MS
	141.

	 	 	321	 	 	130 Vantage Drive
	 	Cape Girardeau
	 	MO
	142.

	 	 	322	 	 	5675 I49 S. Service Road
	 	Opelousas
	 	LA
	143.

	 	 	323	 	 	1917 US Highway 421
	 	Wilkesboro
	 	NC
	144.

	 	 	324	 	 	988 Goodman Road
	 	Horn Lake
	 	MS
	145.

	 	 	325	 	 	107 N. Elmira Avenue
	 	Russellville
	 	AR
	146.

	 	 	326	 	 	823 Pike Street
	 	Marietta
	 	OH
	147.

	 	 	327	 	 	2580 North Road
	 	Orangeburg
	 	SC
	148.

	 	 	328	 	 	1101 N. Service Road E.
	 	Ruston
	 	LA
	149.

	 	 	329	 	 	730 W. Stadium Boulevard
	 	Jefferson City
	 	MO
	150.

	 	 	330	 	 	3990 Gloster
	 	Tupelo
	 	MS
	151.

	 	 	332	 	 	1320 N. Eisenhower Drive
	 	Beckley
	 	WV
	152.

	 	 	333	 	 	5501 S. U.S. Highway 41
	 	Terre Haute
	 	IN
	153.

	 	 	334	 	 	3743 Burbank Road
	 	Wooster
	 	OH
	154.

	 	 	335	 	 	625 NC 24 27 Byp E
	 	Albermarle
	 	NC
	155.

	 	 	336	 	 	6315 Scatterfield Road
	 	Anderson
	 	IN
	156.

	 	 	337	 	 	791 South Jefferson Avenue
	 	Cookeville
	 	TN
	157.

	 	 	339	 	 	203 N. Sandy Creek Drive
	 	Seymour
	 	IN
	158.

	 	 	340	 	 	1500 Julian R Allsbrook Highway
	 	Roanoke Rapids
	 	NC
	159.

	 	 	341	 	 	1725 Commerce Avenue
	 	Ardmore
	 	OK
	160.

	 	 	342	 	 	3419 Pemberton Square Boulevard
	 	Vicksburg
	 	MS
	161.

	 	 	344	 	 	1156 Bankhead Highway
	 	Carrollton
	 	GA
	162.

	 	 	345	 	 	1102 Avenue of Mid America
	 	Effingham
	 	IL
	163.

	 	 	347	 	 	929 S. Westwood Boulevard
	 	Poplar Bluff
	 	MO
	164.

	 	 	348	 	 	2809 East Highland Drive
	 	Jonesboro
	 	AR
	165.

	 	 	350	 	 	361 Commonwealth Boulevard
	 	Martinsville
	 	VA

Schedule 1 - Page 6

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	166.

	 	 	351	 	 	2132 Highway 15 North
	 	Laurel
	 	MS
	167.

	 	 	352	 	 	2301 S. McKenzie Street
	 	Foley
	 	AL
	168.

	 	 	353	 	 	2730 Mall Loop Road
	 	Dyersburg
	 	TN
	169.

	 	 	355	 	 	1918 W. Foxwood Drive
	 	Raymore
	 	MO
	170.

	 	 	356	 	 	535 Commerce Drive
	 	Bluefield
	 	VA
	171.

	 	 	357	 	 	243 Steven B. Tanger Boulevard
	 	Commerce
	 	GA
	172.

	 	 	358	 	 	1485 Coshocton Avenue
	 	Mt. Vernon
	 	OH
	173.

	 	 	359	 	 	600 North Berkley Boulevard
	 	Goldsboro
	 	NC
	174.

	 	 	360	 	 	2854 North Main
	 	Crossville
	 	TN
	175.

	 	 	361	 	 	3406 West Broadway
	 	Sedalia
	 	MO
	176.

	 	 	362	 	 	1720 Cherokee Avenue SW
	 	Cullman
	 	AL
	177.

	 	 	364	 	 	2800 S Loop 256
	 	Palestine
	 	TX
	178.

	 	 	366	 	 	568 U.S. Highway 431
	 	Boaz
	 	AL
	179.

	 	 	367	 	 	2740 North West Avenue
	 	El Dorado
	 	AR
	180.

	 	 	370	 	 	1000 Brevard Road
	 	Asheville
	 	NC
	181.

	 	 	371	 	 	5425 North Henry Boulevard
	 	Stockbridge
	 	GA
	182.

	 	 	373	 	 	609 Boll Weevil Circle
	 	Enterprise
	 	AL
	183.

	 	 	376	 	 	5755 Main Street
	 	Zachary
	 	LA
	184.

	 	 	377	 	 	2170 N. State Route 53
	 	Fremont
	 	OH
	185.

	 	 	378	 	 	4500 Frederica Street
	 	Owensboro
	 	KY
	186.

	 	 	380	 	 	2645 E. Andrew Johnson Highway
	 	Greeneville
	 	TN
	187.

	 	 	381	 	 	1915 Cobbs Ford Road
	 	Prattville
	 	AL
	188.

	 	 	383	 	 	4538 Central Avenue
	 	Hot Springs
	 	AR
	189.

	 	 	384	 	 	1712 East Lamar Street
	 	Americus
	 	GA
	190.

	 	 	385	 	 	1085 Cosby Hwy
	 	Newport
	 	TN
	191.

	 	 	386	 	 	3240 S. Oates Street
	 	Dothan
	 	AL
	192.

	 	 	388	 	 	420 Galleria Drive
	 	Johnstown
	 	PA
	193.

	 	 	390	 	 	2019 Colby Taylor Road
	 	Richmond
	 	KY

Schedule 1 - Page 7

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	194.

	 	 	391	 	 	3710 39th Avenue Drive
	 	Moline
	 	IL
	195.

	 	 	393	 	 	1238 North 12th Street
	 	Middlesboro
	 	KY
	196.

	 	 	394	 	 	341 Eisenhower Drive
	 	Hanover
	 	PA
	197.

	 	 	395	 	 	15370 U.S. Hwy. 19 S.
	 	Thomasville
	 	GA
	198.

	 	 	396	 	 	2904 Church Street
	 	Conway
	 	SC
	199.

	 	 	397	 	 	1053 Hunters Xing
	 	Alcoa
	 	TN
	200.

	 	 	399	 	 	3535 Agency Street
	 	Burlington
	 	IA
	201.

	 	 	401	 	 	41191 U.S. Hwy 280
	 	Sylacauga
	 	AL
	202.

	 	 	402	 	 	3632 Monroe Highway
	 	Pineville
	 	LA
	203.

	 	 	403	 	 	1104 E. Central TX Expressway
	 	Killeen
	 	TX
	204.

	 	 	404	 	 	4131 Ft. Campbell Boulevard
	 	Hopkinsville
	 	KY
	205.

	 	 	405	 	 	8671 Highway 17 BYP
	 	Surfside Beach
	 	SC
	206.

	 	 	406	 	 	232 Frontage Road
	 	Picayune
	 	MS
	207.

	 	 	407	 	 	4221 W. Bethel Avenue
	 	Muncie
	 	IN
	208.

	 	 	408	 	 	374 Walmart Plaza
	 	Sylva
	 	NC
	209.

	 	 	409	 	 	438 Riverwind Drive
	 	Pearl
	 	MS
	210.

	 	 	410	 	 	3286 Inner Perimeter Drive
	 	Valdosta
	 	GA
	211.

	 	 	411	 	 	918 N. Chancery Street
	 	McMinnville
	 	TN
	212.

	 	 	412	 	 	1824 Glenn Boulevard
	 	Fort Payne
	 	AL
	213.

	 	 	413	 	 	4117 N. Vermilion
	 	Danville
	 	IL
	214.

	 	 	414	 	 	2009 Hwy 78 East
	 	Jasper
	 	AL
	215.

	 	 	415	 	 	1255 Woodruff Road
	 	Greenville
	 	SC
	216.

	 	 	419	 	 	2330 Memorial Drive
	 	Waycross
	 	GA
	217.

	 	 	420	 	 	115 Ryans Drive
	 	Forest City
	 	NC
	218.

	 	 	421	 	 	1101 Hwy 90 East
	 	Morgan City
	 	LA
	219.

	 	 	422	 	 	1521 W. Floyd Baker Boulevard
	 	Gaffney
	 	SC
	220.

	 	 	423	 	 	3000 South Ferdon Boulevard
	 	Crestview
	 	FL
	221.

	 	 	424	 	 	195 Greasy Ridge Road
	 	Princeton
	 	WV

Schedule 1 - Page 8

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	222.

	 	 	425	 	 	2810 Emerson Drive
	 	Elkhart
	 	IN
	223.

	 	 	427	 	 	1180 South Main Street
	 	Kernersville
	 	NC
	224.

	 	 	428	 	 	331 North Creek Drive
	 	Festus
	 	MO
	225.

	 	 	430	 	 	801 Walmart Drive
	 	Murray
	 	KY
	226.

	 	 	431	 	 	1950 East Kearney Street
	 	Springfield
	 	MO
	227.

	 	 	432	 	 	1780 Carl D. Silver Parkway
	 	Fredericksburg
	 	VA
	228.

	 	 	433	 	 	4955 Hwy 90
	 	Pace
	 	FL
	229.

	 	 	434	 	 	806 US Highway 80 E
	 	Statesboro
	 	GA
	230.

	 	 	436	 	 	4615 Broadway
	 	Mt. Vernon
	 	IL
	231.

	 	 	438	 	 	1635 Lincoln Way East
	 	Chambersburg
	 	PA
	232.

	 	 	439	 	 	4461 S. Franklin Street
	 	Michigan City
	 	IN
	233.

	 	 	440	 	 	2210 Harper Road
	 	Corinth
	 	MS
	234.

	 	 	441	 	 	5309 Milan Road
	 	Sandusky
	 	OH
	235.

	 	 	442	 	 	2903 Pike Street
	 	Parkersburg
	 	WV
	236.

	 	 	443	 	 	925 Foxcroft Avenue
	 	Martinsburg
	 	WV
	237.

	 	 	445	 	 	103 Community Way
	 	Staunton
	 	VA
	238.

	 	 	447	 	 	4690 Presidential Parkway
	 	Macon
	 	GA
	239.

	 	 	448	 	 	225 St. Robert Boulevard
	 	St. Robert
	 	MO
	240.

	 	 	449	 	 	203 N. Davy Crockett Parkway
	 	Morristown
	 	TN
	241.

	 	 	450	 	 	502 Winfield Dunn Parkway
	 	Sevierville
	 	TN
	242.

	 	 	451	 	 	6500 SW 3rd
	 	Oklahoma City
	 	OK
	243.

	 	 	452	 	 	4439 Rangeline Road
	 	Mobile
	 	AL
	244.

	 	 	453	 	 	1345 Western Boulevard
	 	Jacksonville
	 	NC
	245.

	 	 	454	 	 	1275 Knox Avenue
	 	N. Augusta
	 	SC
	246.

	 	 	455	 	 	475 Ben Franklin Road S.
	 	Indiana
	 	PA
	247.

	 	 	456	 	 	1323 N. Expressway
	 	Griffin
	 	GA
	248.

	 	 	458	 	 	7090 Concourse Parkway
	 	Douglasville
	 	GA
	249.

	 	 	459	 	 	8601 Concord Mills Boulevard
	 	Concord
	 	NC

Schedule 1 - Page 9

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	250.

	 	 	460	 	 	13220 N. Pennsylvania Avenue
	 	Oklahoma City
	 	OK
	251.

	 	 	461	 	 	126 Highway 400 N
	 	Dawsonville
	 	GA
	252.

	 	 	462	 	 	838 Odum Road
	 	Gardendale
	 	AL
	253.

	 	 	464	 	 	7550 Garner’s Ferry Road
	 	Columbia
	 	SC
	254.

	 	 	466	 	 	3600 Massard Road
	 	Ft. Smith
	 	AR
	255.

	 	 	467	 	 	1411 Shook Drive
	 	Auburn
	 	IN
	256.

	 	 	468	 	 	4000 Springhill Plaza Court
	 	N. Little Rock
	 	AR
	257.

	 	 	469	 	 	1021 Dowdy Road
	 	Athens
	 	GA
	258.

	 	 	470	 	 	1973 Bryant Road
	 	Lexington
	 	KY
	259.

	 	 	471	 	 	333 Summit Square Court
	 	WinstonSalem
	 	NC
	260.

	 	 	472	 	 	30179 Eastern Shore Court
	 	Spanish Fort
	 	AL
	261.

	 	 	473	 	 	2664 Hwy 70 SE
	 	Hickory
	 	NC
	262.

	 	 	474	 	 	1400 US Hwy 77 North
	 	Waxahachie
	 	TX
	263.

	 	 	475	 	 	1045 SW Wilshire Boulevard
	 	Burleson
	 	TX
	264.

	 	 	478	 	 	205 Belle Meade Point
	 	Flowood
	 	MS
	265.

	 	 	0022	 	 	3580 Main Street
	 	Coon Rapids
	 	MN

Schedule 1 - Page 10

 

SCHEDULE 2

THE LEASED PROPERTIES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State
	1.

	 	 	138	 	 	1314 N. Main Street
	 	Summerville
	 	SC
	2.

	 	 	331	 	 	207 South Frontage Road
	 	Meridian
	 	MS
	3.

	 	 	457	 	 	400 Chippewa Towne Centre
	 	Beaver Falls
	 	PA
	4.

	 	 	144	 	 	4373 Courtney Drive
	 	Tuscaloosa
	 	AL
	5.

	 	 	375	 	 	1321 Preacher Roe Boulevard
	 	West Plains
	 	MO
	6.

	 	 	379	 	 	3608 E. Race Avenue
	 	Searcy
	 	AR
	7.

	 	 	392	 	 	5579 Sunset Boulevard
	 	Lexington
	 	SC
	8.

	 	 	416	 	 	519 Emily Drive
	 	Clarksburg
	 	WV
	9.

	 	 	418	 	 	103 R H L Boulevard
	 	Charleston
	 	WV
	10.

	 	 	426	 	 	17830 Garland Groh Boulevard
	 	Hagerstown
	 	MD
	11.

	 	 	465	 	 	6476 Carlisle Pike
	 	Mechanicsburg
	 	PA
	12.

	 	 	0248	 	 	650 Commerce Boulevard, Fairless Hills
	 	Oxford Valley
	 	PA
	13.

	 	 	0256	 	 	1850 Empire Avenue
	 	Burbank
	 	CA
	14.

	 	 	0258	 	 	3102 East Imperial Highway
	 	Lynwood
	 	CA
	15.

	 	 	0269	 	 	3617 West Shaw Avenue
	 	Fresno
	 	CA
	16.

	 	 	0736	 	 	6705 North Fallbrook Avenue
	 	Canoga Park
	 	CA
	17.

	 	 	0811	 	 	2513 Main Street
	 	Union Gap
	 	WA

Schedule 2 - Page 1

 

SCHEDULE 3(a)(iii)

LEASES

	 	 	 	 	 	 	 	 	 
	Location	 	Type of Lease	 	Tenant	 	Rent Payable	 	Comments
	 
	Saginaw, MI
	 	Billboard	 	Sign Media	 	$2,000 per year	 	 
	 
	 	 	 	PO Box 5908	 	 	 	 
	 
	 	 	 	Saginaw, MI 48603 - 0908	 	 	 	 
	N. Charleston, SC
	 	Cellular Tower	 	Chas-N Chas MSA Limited Partnership	 	$1,190.25 per	 	Lease expires 12/31/08
	 
	 	 	 	c/o American Tower Corp Land Lease Administration	 	month	 	 
	 
	 	 	 	10 Presidential Way	 	 	 	 
	 
	 	 	 	Woburn, MA 01801	 	 	 	 
	N. Charleston, SC
	 	Cellular Tower	 	American Tower Corp Land Lease Administration	 	$2,070 per month	 	 
	 
	 	 	 	10 Presidential Way	 	 	 	 
	 
	 	 	 	Woburn, MA 01801	 	 	 	 
	 
	 	 	 	Phone: (866) 586-9377	 	 	 	 
	Charleston, SC
	 	Cellular Tower	 	Alltel Communications, Inc.	 	$1,441.53 per	 	 
	 
	 	 	 	PO Box 2177	 	month	 	 
	 
	 	 	 	Little Rock, AR 72203-2177	 	 	 	 
	 
	 	 	 	Attn: Property Management Department	 	 	 	 
	 
	 	 	 	Phone: (501) 905-7076	 	 	 	 
	Springfield, MO
	 	Billboard	 	Lamar Advertising Company	 	$50 per month	 	Lessor may terminate
	 
	 	 Overhang	 	5551 Corporate Blvd.	 	 	 	upon thirty days'
	 
	 	 	 	PO Box 66338	 	 	 	written notice
	 
	 	 	 	Baton Rouge, LA 70896	 	 	 	 
	 
	 	 	 	Attn: Mike James	 	 	 	 
	 
	 	 	 	Phone: (417) 862-3778/(504) 926-1000	 	 	 	 
	Americus, GA
	 	Billboard	 	Franklin Advertising, Inc.	 	$80 per month	 	 
	 
	 	 	 	133 N. Main Street	 	 	 	 
	 
	 	 	 	PO Box 771	 	 	 	 
	 
	 	 	 	Blakley, GA 31723	 	 	 	 
	 
	 	 	 	Attn: Hugh Franklin	 	 	 	 
	 
	 	 	 	Phone: (912) 723-3665	 	 	 	 

Schedule 3(a)(iii) - Page 1

 

	 	 	 	 	 	 	 	 	 
	Location	 	Type of Lease	 	Tenant	 	Rent Payable	 	Comments
	 
	Calhoun, GA
	 	Easement Payment	 	North Georgia National Bank	 	$600 per year	 	Access easement has
	 
	 	 	 	 	 	 	 	been granted to North
	 
	 	 	 	 	 	 	 	Georgia National Bank
	Gainesville, GA
	 	Property Lease	 	Fairway Outdoor Advertising, LLC	 	$350 per month	 	Lease is for the
	 
	 	 	 	PO Box 912	 	 	 	ground upon which a
	 
	 	 	 	Athens, GA 30603	 	 	 	billboard sits
	 
	 	 	 	Attn: Jeffrey Noland	 	 	 	 
	 
	 	 	 	Phone: (706)724-8987	 	 	 	 
	Greer, SC
	 	ATM Lease	 	Wachovia Bank	 	$900 per month	 	 
	 
	 	 	 	c/o Lease Administrator	 	 	 	 
	 
	 	 	 	PO Box 3629	 	 	 	 
	 
	 	 	 	Charlotte, NC 28236-6729	 	 	 	 
	 
	 	 	 	Phone: (704) 383-6168	 	 	 	 
	Greer, SC
	 	Cable Tower	 	Charter Communications Prop., Inc.	 	$1,267.58	 	 
	 
	 	 	 	6399 S. Fiddlers Green Circle, Ste 600	 	 	 	 
	 
	 	 	 	Englewood, CO 80111	 	 	 	 
	 
	 	 	 	Phone: (720) 200-9276	 	 	 	 
	 
	 	 	 	Attn: Legal Operations	 	 	 	 
	Conway, SC
	 	Billboard Lease	 	Next Media Outdoor	 	$100 per month	 	 
	 
	 	 	 	6312 South Fiddler's Green Circle, Ste 360E	 	plus	 	 
	 
	 	 	 	Englewood, CO 80111	 	15% of income	 	 
	 
	 	 	 	Attn: Mark Stocks	 	over	 	 
	 
	 	 	 	Phone: (843) 236-1993	 	$100	 	 

Schedule 3(a)(iii) - Page 2

 

SCHEDULE 3(a)(iv)

LAWS AND ZONING

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Comments
	 
	1.

	 	 	102	 	 	3517 Clemson Blvd.
	 	Anderson
	 	SC
	 	Parking requirements unverified
	2.

	 	 	104	 	 	6124 White Horse Road
	 	Greenville
	 	SC
	 	13.3’ building encroachment into setback line; Zoning Letter
states that this is conforming and can be rebuilt.
	3.

	 	 	106	 	 	1703 Bypass 72 NE
	 	Greenwood
	 	SC
	 	4.5’ Building encroaches 4.5’ into side setback line; Zoning
letter states it is conforming
	4.

	 	 	108	 	 	2367 Dave Lyle Blvd.
	 	Rock Hill
	 	SC
	 	4.5’ Bldg Encroachment into setback
	5.

	 	 	115	 	 	1900 Manchester Expy
	 	Columbus
	 	GA
	 	Building encroaches into front building setback line
	6.

	 	 	128	 	 	2230 Edsel Lane N.W.
	 	Corydon
	 	IN
	 	157 parking spaces exist but 170 spaces are required under
zoning laws
	7.

	 	 	130	 	 	5338 Bardstown Rd.
	 	Louisville
	 	KY
	 	Building encroaches 20’ into front setback line
	8.

	 	 	143	 	 	2380 Wisteria Dr.
	 	Snellville
	 	GA
	 	Legally nonconforming; any reconstruction must comply with Town
Center Corridor Overlay District
	9.

	 	 	161	 	 	2227 Marion Mount Gilead Rd
	 	Marion
	 	OH
	 	Site plan approval is required for reconstruction
	10.

	 	 	163	 	 	150 Keith Drive
	 	Canton
	 	GA
	 	Parking requirements are unverified
	11.

	 	 	164	 	 	1053 Patton Ave
	 	Asheville
	 	NC
	 	Parking requirements are unverified
	12.

	 	 	165	 	 	6999 Miller Lane
	 	Dayton (Butler Township)
	 	OH
	 	Parking on the north and west side of property violates parking
setbacks; zoning laws require eight more parking spaces
	13.

	 	 	166	 	 	205 E. Mountcastle Drive
	 	Johnson City
	 	TN
	 	Zoning laws require one additional handicap parking space
	14.

	 	 	180	 	 	9006 Pensacola Blvd.
	 	Pensacola
	 	FL
	 	Parking requirements are unverified
	15.

	 	 	186	 	 	2730 N. Dirksen Pkwy.
	 	Springfield
	 	IL
	 	Parking requirements are unverified; Concrete pavement and a
wall are over the zoning setback line
	16.

	 	 	187	 	 	1273 N. Brightleaf Blvd.
	 	Smithfield
	 	NC
	 	Building encroaches 35’ into setback line

Schedule 3(a)(iv) - Page 1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Comments
	 
	17.

	 	 	188	 	 	10052 Two Notch Road
	 	Columbia
	 	SC
	 	Building encroaches 8.3’ into setback; Parking compliance is
unverified
	18.

	 	 	189	 	 	3370 Venture Parkway
	 	Duluth
	 	GA
	 	Concrete sidewalk encroaches 10’ into building setback line
	19.

	 	 	192	 	 	4230 N. Clinton St
	 	Fort Wayne
	 	IN
	 	Storm sewer easement impacts eighteen parking spaces; parking
requirements are unverified less eighteen spaces
	20.

	 	 	204	 	 	4260 Dowlen Road
	 	Beaumont
	 	TX
	 	Parking requirements are unverified
	21.

	 	 	208	 	 	155 West Bay Area Boulevard
	 	Webster
	 	TX
	 	Building encroaches more than 5’ into setback line
	22.

	 	 	211	 	 	4200 G Miller Road
	 	Flint
	 	MI
	 	Parking requirements are unverified
	23.

	 	 	212	 	 	34615 Warren Road
	 	Westland
	 	MI
	 	Parking requirements are unverified
	24.

	 	 	213	 	 	2501 S. Campbell Avenue
	 	Springfield
	 	MO
	 	Parking requirements are unverified
	25.

	 	 	216	 	 	3579 Pennridge Drive
	 	Bridgeton
	 	MO
	 	At least 243 parking spaces are required, but there are only 185
spaces at present
	26.

	 	 	218	 	 	10810 W. 75th Street
	 	Shawnee
	 	KS
	 	Upon reconstruction, must comply with 40’ setback requirements
	27.

	 	 	220	 	 	2310 FM 2004
	 	Texas City
	 	TX
	 	Building encroaches over setback line by 21.16’ x 2.51’
	28.

	 	 	221	 	 	3323 N Rock Rd
	 	Wichita
	 	KS
	 	Parking requirements are unverified
	29.

	 	 	222	 	 	7201 Crestwood Boulevard
	 	Birmingham
	 	AL
	 	There is concrete over the building setback line
	30.

	 	 	224	 	 	3435 Lebanon Pike
	 	Hermitage
	 	TN
	 	9.99’ Bldg encroachment into setback; zoning laws require 116
parking spaces, and only 58 are present
	31.

	 	 	225	 	 	910 S. Range Ave.
	 	Denham Springs
	 	LA
	 	Building encroaches 1’ into setback line
	32.

	 	 	233	 	 	3813 Riverdale Road
	 	Memphis
	 	TN
	 	Possibly two handicapped spaces missing
	33.

	 	 	236	 	 	13420 Nacogdoches Road
	 	San Antonio
	 	TX
	 	Building extends 15.3 feet beyond the 30’ zoning setback line
	34.

	 	 	238	 	 	102 South 21st Street
	 	Rogers
	 	AR
	 	Parking requirements are unverified
	35.

	 	 	241	 	 	4580 N. Illinois Street
	 	Swansea
	 	IL
	 	Building encroaches 4.1’ into setback line
	36.

	 	 	247	 	 	2702 Wilma Rudolph Blvd.
	 	Clarksville
	 	TN
	 	Building encroaches over the building setback line by .78’ x
70.68’ x 2.22’

Schedule 3(a)(iv) - Page 2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Comments
	 
	37.

	 	 	249	 	 	1520 Marin Luther King
	 	Houma
	 	LA
	 	Building encroaches 4.1’ into setback
	38.

	 	 	252	 	 	1501 S. Cherry Lane
	 	White Settlement
	 	TX
	 	Parking requirements are unverified
	39.

	 	 	254	 	 	1748 S.W. Railroad Ave.
	 	Hammond
	 	LA
	 	Parking requirements are unverified; building may violate the
setback line
	40.

	 	 	256	 	 	730 Elmwood Road
	 	Lansing
	 	MI
	 	Parking requirements are unverified; small brick building
violates the back and side setback lines
	41.

	 	 	258	 	 	3102 E. Imperial Highway
	 	Lynwood
	 	CA
	 	Building encroaches 3.1’ over building setback line
	42.

	 	 	261	 	 	1920 Mel Browning Street
	 	Bowling Green
	 	KY
	 	Parking requirements are unverified
	43.

	 	 	265	 	 	2900 E. Franklin Blvd.
	 	Gastonia
	 	NC
	 	Zoning requires 45 more parking spaces
	44.

	 	 	268	 	 	1829 Old Fort Parkway
	 	Murfreesboro
	 	TN
	 	Zoning requires one additional handicap parking space
	45.

	 	 	271	 	 	5140 Hinkleville Road
	 	PADUCAH
	 	KY
	 	Building violates setback line on southwest side
	46.

	 	 	272	 	 	909 Tripp Road
	 	Mesquite
	 	TX
	 	Parking requirements are unverified
	47.

	 	 	273	 	 	107 Executive Court
	 	Danville
	 	VA
	 	Parking requirements are unverified
	48.

	 	 	276	 	 	851 Highway 287 N
	 	Mansfield
	 	TX
	 	Building violates setback line by 0.7’
	49.

	 	 	277	 	 	936 Greely Chapel Road
	 	Lima
	 	OH
	 	Possible violation of the setback line on the south side of the
building
	50.

	 	 	278	 	 	1413 N. Loop 336 West
	 	Conroe
	 	TX
	 	Minor building encroachment into setback line; Parking
requirements unverified
	51.

	 	 	279	 	 	220 Jackson Court
	 	Lumberton
	 	NC
	 	Building encroaches 1’ into setback line
	52.

	 	 	283	 	 	2863 Arlington Road
	 	Akron
	 	OH
	 	Parking spaces encroach into the setback line
	53.

	 	 	292	 	 	301 East Loop 281
	 	Longview
	 	TX
	 	Parking requirements unverified
	54.

	 	 	293	 	 	1202 North Main Street
	 	Suffolk
	 	VA
	 	Building encroaches over setback line
	55.

	 	 	294	 	 	71 Stonebrook Place
	 	Jackson
	 	TN
	 	Possibly one parking space under zoning requirements
	56.

	 	 	296	 	 	119 W. Highway 332
	 	Lake Jackson
	 	TX
	 	Sprinklers must be added upon reconstruction

Schedule 3(a)(iv) - Page 3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Comments
	 
	57.

	 	 	297	 	 	127 River Road
	 	Gadsen
	 	AL
	 	Building encroaches 12’ into setback line
	58.

	 	 	300	 	 	8815 Baseline Road
	 	Little Rock
	 	AR
	 	Building encroaches 4’ into setback line
	59.

	 	 	301	 	 	994 N Lexington Springmill
	 	Mansfield
	 	OH
	 	Parking stalls encroach into the parking setbacks 6.4’ at the
greatest point
	60.

	 	 	302	 	 	1616 Sandifer Road
	 	Seneca
	 	SC
	 	Building encroaches 2.9’ into setback line
	61.

	 	 	304	 	 	1201 Hwy. 45 North
	 	Columbus
	 	MS
	 	Parking requirements unverified; Building encroaches into the
front setback line by 8.99’ x 2.16’ and 19.14’ x 4.60’
	62.

	 	 	309	 	 	917 Valley Creek Drive.
	 	Farmington
	 	MO
	 	Building encroaches 8.5’ into setback line
	63.

	 	 	311	 	 	362 Cox Creek Parkway
	 	Florence
	 	AL
	 	CC&R with WalMart requires 19 additional parking spaces
	64.

	 	 	313	 	 	2623 Wards Road
	 	Lynchburg
	 	VA
	 	Parking requirements are unverified
	65.

	 	 	316	 	 	2580 N. Franklin Street
	 	Christianburg
	 	VA
	 	Building encroaches 0.2’ into setback line
	66.

	 	 	320	 	 	6082 U S Highway 98
	 	Hattiesburg
	 	MS
	 	Building encroaches into setback line by 21.16’ x 2.51’
	67.

	 	 	324	 	 	988 Goodman Road
	 	Horn Lake
	 	MS
	 	Building encroaches 13.17’ into setback line; Building
encroaches 16.61’ into setback line
	68.

	 	 	328	 	 	1101 N. Service Road E.
	 	Ruston
	 	LA
	 	Building encroaches into setback line by 5.29’; Parking
requirements unverified
	69.

	 	 	329	 	 	730 W Stadium Blvd
	 	Jefferson City
	 	MO
	 	Parking requirements unverified
	70.

	 	 	336	 	 	6315 Scatterfield Road
	 	Anderson
	 	IN
	 	Building encroaches into setback line
	71.

	 	 	337	 	 	791 South Jefferson Avenue
	 	Cookeville
	 	TN
	 	Zoning requires one additional handicap parking space
	72.

	 	 	342	 	 	3419 Pemberton Square Boulevard
	 	Vicksburg
	 	MS
	 	Zoning appears to require one additional handicap parking space
	73.

	 	 	344	 	 	1156 Bankhead Highway
	 	Carrollton
	 	GA
	 	Building encroaches 5’ into setback line; Parking requirements
unverified
	74.

	 	 	345	 	 	1102 Avenue of Mid America
	 	Effingham
	 	IL
	 	Building encroaches 15’ into side setback line
	75.

	 	 	348	 	 	2809 East Highland Drive
	 	Jonesboro
	 	AR
	 	Zoning requires one additional handicap parking space
	76.

	 	 	352	 	 	2301 S. McKenzie Street
	 	Foley
	 	AL
	 	Zoning requires five additional handicap spaces

Schedule 3(a)(iv) - Page 4

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Comments
	 
	77.

	 	 	355	 	 	1918 W. Foxwood Drive
	 	Raymore
	 	MO
	 	45 parking spaces encroach into building setback line
	78.

	 	 	362	 	 	1720 Cherokee Avenue SW
	 	Cullman
	 	AL
	 	Parking requirements are unverified
	79.

	 	 	367	 	 	2740 North West Avenue
	 	El Dorado
	 	AR
	 	Building encroaches 7” into front setback line and 4.48’ into
side setback line; The property was built in 1996 and zoning was
established in 1997; Therefore property is grandfathered in
	80.

	 	 	370	 	 	1000 Brevard Road
	 	Asheville
	 	NC
	 	Building encroaches 10’ into setback line; Parking requirements
are unverified
	81.

	 	 	375	 	 	1321 Preacher Roe Boulevard
	 	West Plains
	 	MO
	 	Building encroaches into setback line by .5’ (considered legal
nonconforming)
	82.

	 	 	376	 	 	5755 Main Street
	 	Zachary
	 	LA
	 	Zoning data states that “This zoning does not allow for
Restaurant (without alcohol) use.”
	83.

	 	 	380	 	 	2645 E Andrew Johnson Hwy
	 	Greeneville
	 	TN
	 	Parking requirements are unverified
	84.

	 	 	384	 	 	1712 East Lamar Street
	 	Americus
	 	GA
	 	Parking requirements are unverified
	85.

	 	 	385	 	 	1085 Cosby Hwy
	 	Newport
	 	TN
	 	Zoning requires one additional handicap parking space
	86.

	 	 	386	 	 	3240 S. Oates Street
	 	Dothan
	 	AL
	 	Building encroaches 13’ into setback (legal non-conforming per
surveyor); Parking requirements are unverified
	87.

	 	 	393	 	 	1238 North 12th Street
	 	Middlesboro
	 	KY
	 	Building encroaches into the setback line
	88.

	 	 	394	 	 	341 Eisenhower Drive
	 	Hanover
	 	PA
	 	Building encroaches 5’ into setback; 33 parking spaces encroach
into parking setback
	89.

	 	 	402	 	 	3632 Monroe Highway
	 	Pineville
	 	LA
	 	Building encroaches into setback line
	90.

	 	 	404	 	 	4131 FT. Campbell Boulevard
	 	Hopkinsville
	 	KY
	 	Per a zoning letter, the site plan for this development
reflected 126 parking spaces on site with 26 spaces provided in
the parking area for the Granite McCoy development. A Cross
Easement Parking Agreement was filed with the Christian County
Court Clerk’s Office.
	91.

	 	 	408	 	 	374 WalMart Plaza
	 	Sylva
	 	NC
	 	Zoning requires 38 additional parking spaces; Parking variance
granted
	92.

	 	 	409	 	 	438 Riverwind Drive
	 	Pearl
	 	MS
	 	Building encroaches into the setback line by 10.5’ x 72.86’ x
1.77’

Schedule 3(a)(iv) - Page 5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Comments
	 
	93.

	 	 	414	 	 	2009 Hwy 78 East
	 	Jasper
	 	AL
	 	Building encroaches 4.55’ x 148.66’ x 4.7’ into setback;
Variance was granted for more than 2 feet added to side yard
	94.

	 	 	415	 	 	1255 Woodruff Road
	 	Greenville
	 	SC
	 	Zoning requires an additional 23 parking spaces
	95.

	 	 	419	 	 	2330 Memorial Drive
	 	Waycross
	 	GA
	 	Parking requirements are unverified
	96.

	 	 	423	 	 	3000 South Ferdon Boulevard
	 	Crestview
	 	FL
	 	Parking requirements are unverified
	97.

	 	 	425	 	 	2810 Emerson Drive
	 	Elkhart
	 	IN
	 	Building encroaches over the side building setback line
	98.

	 	 	426	 	 	17830 Garland Groh Boulevard
	 	Hagerstown
	 	MD
	 	Building encroaches over the side building setback line
	99.

	 	 	430	 	 	801 WalMart Drive
	 	Murray
	 	KY
	 	Building encroaches 10.13’ over the side building setback line
	100.

	 	 	434	 	 	806 US Highway 80 E
	 	Statesboro
	 	GA
	 	Building encroaches onto front bldg set back line (legal

nonconforming per surveyor)
	101.

	 	 	436	 	 	4615 Broadway
	 	Mt. Vernon
	 	IL
	 	Building encroaches into 40’ setback; Building encroaches into
11’ setback; Parking requirements are unverified
	102.

	 	 	438	 	 	1635 Lincoln Way East
	 	Chambersburg
	 	PA
	 	Building encroaches into front setback line
	103.

	 	 	449	 	 	203 N Davy Crockett Pkwy
	 	Morristown
	 	TN
	 	Building encroaches 20’ into rear setback
	104.

	 	 	465	 	 	6476 Carlisle Pike
	 	Mechanicsburg
	 	PA
	 	Parking spaces encroach into the parking setback
	105.

	 	 	468	 	 	4000 Springhill Plaza CT
	 	North Little Rock
	 	AR
	 	Building encroaches .33’ x 147.33’ x .042’ into rear setback line
	106.

	 	 	478	 	 	205 Belle Meade Pt
	 	Flowood
	 	MS
	 	Possible encroachment into setback line
	107.

	 	 	333	 	 	5501 S. US Hwy 41
	 	Terre Haute
	 	IN
	 	Indemnity Agreement for property swap with Wal-Mart
	108.

	 	 	393	 	 	1238 N. 12th Street
	 	Middlesboro
	 	KY
	 	Encroachment covered by Indemnity Agreement

Schedule 3(a)(iv) - Page 6

 

SCHEDULE 3(a)(v)

PROPERTY CONDITION AND DEFECTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Store Number	 	Address	 	City	 	State	 	Hazardous Flood Zone
	 
	1.
	 	118	 	2305 Shorter Avenue SW	 	Rome	 	GA	 	Property in Flood Zone AE
	2.
	 	135	 	1808 University Drive	 	Huntsville	 	AL	 	Property in Flood Zone AE
	3.
	 	141	 	921 Wimberly Drive SW	 	Decatur	 	AL	 	Property in Flood Zone AE
	4.
	 	163	 	150 Keith Drive	 	Canton	 	GA	 	Property in Flood Zone AE
	5.
	 	184	 	2400 Airline Drive	 	Bossier City	 	LA	 	Property in Flood Zone A5
	6.
	 	203	 	1100 Robert Road	 	Slidell	 	LA	 	Property in Flood Zone AE
	7.
	 	225	 	910 S. Range Avenue	 	Denham Springs	 	LA	 	Property in Flood Zone AE
	8.
	 	254	 	1748 S.W. Railroad Avenue	 	Hammond	 	LA	 	Property in Flood Zone A
	9.
	 	292	 	501 East Loop 281	 	Longview	 	TX	 	Property in Flood Zone AE
	10.
	 	297	 	127 River Road	 	Gadsen	 	AL	 	Property in Flood Zone A10
	11.
	 	304	 	1201 Hwy 45 North	 	Columbus	 	MS	 	Property in Flood Zone AE
	12.
	 	314	 	1034 Executive Drive	 	Elizabethtown	 	KY	 	Property in Flood Zone A
	13.
	 	326	 	823 Pike Street	 	Marietta	 	OH	 	Property in Flood Zone AE
	14.
	 	333	 	5501 S. US Hwy 41	 	Terre Haute	 	IN	 	Property in Flood Zone AO
	15.
	 	353	 	2730 Mall Loop Road	 	Dyersburg	 	TN	 	Property in Flood Zone AE
	16.
	 	391	 	3710 39th Avenue Drive	 	Moline	 	IL	 	Property in Flood Zone AE
	17.
	 	402	 	3632 Monroe Highway	 	Pineville	 	LA	 	Property in Flood Zone AE
	18.
	 	409	 	438 Riverwind Drive	 	Pearl	 	MS	 	Property in Flood Zone A
	19.
	 	421	 	1101 Hwy 90 East	 	Morgan City	 	LA	 	Property in Flood Zone A3
	20.
	 	428	 	331 North Creek Drive	 	Festus	 	MO	 	Property in Flood Zone AE
	21.
	 	450	 	502 Winfield Dunn Pkwy	 	Sevierville	 	TN	 	Property in Flood Zone AE
	22.
	 	466	 	3600 Massard Road	 	Ft. Smith	 	AR	 	Property in Flood Zone AE

Schedule 3(a)(v) - Page 1

 

SCHEDULE 3(a)(ix)

SUITS, JUDGMENTS AND LIENS

	 	 	 	 	 	 	 
	Site No.	 	City, State	 	SLB	 	Lien/Encumbrance
	 
	118

	 	Rome, GA
	 	Yes
	 	Garnishment of record
against “Ryan’s Family
Steakhouse” in the amount
of $1,704.62 plus costs of
$110.00 in favor of
Redmond Park Hospital,
Inc.
	120

	 	Albany, GA
	 	Yes
	 	Property is encumbered by
a trust deed securing
$1,198,000 by BYB
Southern, LLC in favor of
Business Lending
Corporation dated
8/20/2003 and by a UCC
financing statement by BYB
Southern, LLC in favor of
Business Lending
Corporation dated
8/21/2003. (Applies to
appurtenant easement
interest only.)
	144

	 	Tuscaloosa, AL
	 	Yes
	 	Judgment recorded at Book
2003, Page 2220, rendered
7/1/03, recorded 7/21/03,
against Ryan’s Family
Steak Houses Inc., in
favor of Annette Baker, in
the amount of $1,500.00,
Case No. DV2003-000199.00,
District Court of
Tuscaloosa County, Clark
Summerford, attorney of
record.
	153

	 	North Charleston, SC
	 	Yes
	 	Summons Filed June 7,
2006, Case Number
06-CP-10-2183, with the
Charleston County Court of
Common Pleas.
	185

	 	Lake Charles, LA
	 	Yes
	 	Judgment against Ryan’s
and Fireman’s Fund in
favor of Monieke Cormier,
recorded 9/5/2006, in the
amount of $10,170.50.
	189

	 	Duluth, GA
	 	Yes
	 	Civil Action File No.
06A-04872-8, Gwinnett
County vs. Ryan’s Family
Steak Houses East, Inc.
n/k/a Fire Mountain
Restaurants, Inc. is
pending in Superior Court
of Gwinnett County.
	195

	 	Cedar Rapids, IA
	 	Yes
	 	Judgment of record —
File No. 06571-FECR912168
Docketed 10/21/90 for
$1,214 in favor of ICIS
State of Iowa, against
Ryan Family Steak Houses.
	252

	 	White Settlement, TX
	 	Yes
	 	Mechanic’s Lien in the
amount of $8,445.48, filed
Sept. 15, 2006 by
Precision Plumbing and
Drain against property
owned by Ryan’s Family
Steakhouse Inc.
	256

	 	Lansing, MI
	 	Yes
	 	Mortgage executed by
Herman Ross to Michigan
National Bank of Detroit,
recorded 10/1/79, in Liber
578, Page 756, as amended
by Amendment to Mortgage
recorded 1/13/81 in Liber
602, Page 913 and recorded
12/23/85 in Liber 694,
Page 456. Partial Release
recorded 12/23/85 in Liber
694, Page 449.

Schedule 3(a)(ix) - Page 1

 

	 	 	 	 	 	 	 
	Site No.	 	City, State	 	SLB	 	Lien/Encumbrance
	 
	282

	 	Cartersville, GA
	 	Yes
	 	Civil Action filed 6/2/06
- Charlene Johnson vs.
Ryan’s Family Steak Houses
- pending in the Superior
Court of Bartow County,
File No 06-CV-1548.
	309

	 	Farmington, MO
	 	Yes
	 	Complaint entitled
“Barbara A. Knowles et al
v. Ryan’s Family Steak
Houses TLC, Inc.” pending
in circuit court of St.
Francis, County, Missouri,
case no. 03CV612898.
	330

	 	Tupelo, MS
	 	Yes
	 	Judgment in favor of Alber
Wayne Harper dated March
5, 2004, civil action no.
13507, against Ryan’s
Family Steak Houses, Inc.,
in the principal amount of
$10,000.00, plus interest
and costs.
	333

	 	Terra Haute, IN
	 	Yes
	 	Complaint filed 8/18/05 by
Mary Ann Smith, against
Ryan’s under Case No.
84D02-0508-CT-7204, in the
Vigo Superior Court. Said
action is still pending.
	333

	 	Terra Haute, IN
	 	Yes
	 	Complaint filed 11/18/05
by Priscilla Ilean Sams,
against Fire Mountain
Restaurants Inc. f/k/a
Ryan’s, under Case No.
84D03-0511-CT-9707 in the
Vigo Superior Court. Said
action is still pending.
	388

	 	Johnstown, PA
	 	Yes
	 	Sharon K. Brothers vs.
Ryan’s Family Steak
Houses, Inc., et al. award
entered 02/20/06 at No.
2003-3070 for $2,244.90.
Appeal filed 03/15/06.
	389

	 	Natchez, MS
	 	Yes
	 	Complaint filed entitled
Calvin McKnight vs. Ryan’s
Family Steak Houses East,
Civil Action-$75,000.00
	419

	 	Waycross, GA
	 	Yes
	 	Civil Action No. 05V-0070;
Southern Allied
Contractors Inc., f/k/a
T&A Industrial Contractors
vs. Fire Mountain
Restaurants, Inc. f/k/a/Ryan’s
Family Steak
Houses, Inc.; pending in
the Superior Court of Ware
County, GA.
	443

	 	Martinsburg
	 	WV
	 	Complaint filed by Jerry
Beachler, Jr., Katherine
Miller, and Tanya Ruiz
against Ryan’s Restaurant
Group under Case No.
06-C-407 in Berkeley
County Circuit Court, WV.
	459

	 	Concord, NC
	 	Yes
	 	Deed of Trust to
Trustee(s) for National
Bank, N.A., recorded in
Book 2381, page 10;
corrected in Book 2384,
page 240. Modification
Agreements recorded in
Book 3365, page 243 and
Book 3728, page 79.

Schedule 3(a)(ix) - Page 2

 

	 	 	 	 	 	 	 
	Site No.	 	City, State	 	SLB	 	Lien/Encumbrance
	 
	462

	 	Gardendale, AL
	 	Yes
	 	Mortgage from Terrell W.
Fields and Vickie Lynn
Fields to AmeriQuest
Mortgage Company, recorded
5/16/05, Document No.
200507/2537.
	472

	 	Spanish Fort, AL
	 	Yes
	 	Lien as shown by statement
of lien recorded in
Instrument No. 876896 as
amended in Instrument No.
877563.

Schedule 3(a)(ix) - Page 3

 

SCHEDULE 3(a)(xi)

OWNERSHIP OF SELLERS POST-MERGER

 

Buffets Post-Merger Legal Entity Org Chart

As of October 30, 2006

	(A)	 	Buffets Restaurant Holdings, Inc.
	 
	 	 	Parent holding company.
	 
	(B)	 	Buffets Holdings, Inc.
	 
	 	 	Second tier holding company, and SEC registrant.
	 
	(C)	 	Buffets, Inc.
	 
	 	 	Operating parent company. Issuer of 12.5% Sr.
Notes and borrower on Sr. Credit Facility.
This company operates the 15 Minnesota
restaurants.
	 
	 	 	Most of the corporate departments are operated
from this entity, including accounting, human
resources, real estate legal, training, I.S.,
etc.
	 
	(D)	 	Hometown Buffet, Inc.
	 
	 	 	This is an entity that operates about 75 buffet-style restaurants, primarily in California
and the Northwest.
	 
	(E)	 	OCB Purchasing Company
	 
	 	 	OCB Purchasing Co. is a centralized purchasing company that sells food, equipment and
supplies to the operating companies. The purchasing, equipment and warehouse departments
have employees with expertise in procuring the equipment and inventory items.

Sch. 3(a)(xi)-1

 

	(F)	 	OCB Restaurant Company, LLC
	 
	 	 	This is an entity operating about 240 buffet-style restaurants. It contains the Real
Estate and Construction functions for the company, as well as the Regional, District and
Area Operations. The cabinet division and maintenance departments also operate from this
entity.
	 
	(G)	 	Buffets Leasing Company, LLC
	 
	 	 	This company buys restaurant equipment, leasing to it’s parent for use in its restaurants.
	 
	(H)	 	Ryan’s Restaurant Group, Inc.
	 
	 	 	This is an entity that operates 14 buffet restaurants, and contains most of Ryan’s
corporate support functions.
	 
	(I)	 	Tahoe Joe’s, Inc.
	 
	 	 	Operating from this entity are ten restaurants. They are doing business as Tahoe Joe’s
Famous Steakhouse.
	 
	(J)	 	Tahoe Joe’s Leasing Co., LLC
	 
	 	 	This company owns and leases the equipment used in Tahoe Joe’s restaurants to Tahoe Joe’s,
Inc.
	 
	(K)	 	Hometown Leasing Company, LLC
	 
	 	 	This company owns restaurant equipment and leases it to its parent company, Hometown
Buffet, Inc.
	 
	(L)	 	OCB Restaurant Leasing Company, LLC
	 
	 	 	This leasing company owns and leases restaurant equipment for use in OCB Restaurant Co.
LLC’s restaurants.
	 
	(M)	 	Fire Mountain Restaurants, LLC
	 
	 	 	Operating from this entity are approximately 310 buffet restaurants.
	 
	(N)	 	Big R Procurement, LLC
	 
	 	 	This is an entity that negotiates favorable pricing for restaurant food and supplies used
in Fire Mountain and Ryan’s restaurants.

Sch. 3(a)(xi)-2

 

 

SCHEDULE 4

Intentionally Omitted

Schedule 4

 

 

EXHIBIT A

FORM OF MASTER LEASE AGREEMENT

 

[See Attached]

Exhibit A - Page 1

 

MASTER

LAND AND BUILDING LEASE

between

[                    ],

a Delaware limited liability company,

as LANDLORD

and

FIRE MOUNTAIN RESTAURANTS, LLC,

a Delaware limited liability company,

as TENANT

[                    ], 2006

MASTER
LAND AND BUILDING LEASE

 

 

INDEX TO MASTER LAND AND BUILDING LEASE

	 	 	 	 	 	 	 
	ARTICLE I
	 	DEMISE OF PREMISES	 	 	2	 
	ARTICLE II
	 	TERM	 	 	2	 
	ARTICLE III
	 	RENT	 	 	12	 
	ARTICLE IV
	 	USE	 	 	20	 
	ARTICLE V
	 	ACCEPTANCE OF DEMISED PROPERTIES	 	 	21	 
	ARTICLE VI
	 	ALTERATIONS	 	 	22	 
	ARTICLE VII
	 	REPAIRS AND MAINTENANCE	 	 	24	 
	ARTICLE VIII
	 	COMPLIANCE WITH LAW	 	 	25	 
	ARTICLE IX
	 	QUIET ENJOYMENT SUBJECT TO DILIGENCE MATTERS	 	 	25	 
	ARTICLE X
	 	DISCLAIMER AND INDEMNITY	 	 	25	 
	ARTICLE XI
	 	INSURANCE	 	 	28	 
	ARTICLE XII
	 	DAMAGE OR DESTRUCTION	 	 	31	 
	ARTICLE XIII
	 	EMINENT DOMAIN	 	 	32	 
	ARTICLE XIV
	 	PERFORMANCE OF OBLIGATIONS; FINANCIAL COVENANTS OF TENANT AND GUARANTOR	 	 	36	 
	ARTICLE XV
	 	INTENTIONALLY DELETED	 	 	39	 
	ARTICLE XVI
	 	DEFAULT	 	 	39	 
	ARTICLE XVII
	 	UNAVOIDABLE DELAYS, FORCE MAJEURE	 	 	45	 
	ARTICLE XVIII
	 	NO WAIVER	 	 	46	 
	ARTICLE XIX
	 	NOTICES	 	 	46	 
	ARTICLE XX
	 	ACCESS	 	 	48	 
	ARTICLE XXI
	 	SIGNS	 	 	48	 
	ARTICLE XXII
	 	IMPROVEMENTS AND FIXTURES	 	 	48	 
	ARTICLE XXIII
	 	END OF TERM	 	 	53	 
	ARTICLE XXIV
	 	HOLDING OVER	 	 	54	 
	ARTICLE XXV
	 	TENANT ASSIGNMENT AND SUBLETTING	 	 	54	 
	ARTICLE XXVI
	 	FINANCINGS	 	 	56	 
	ARTICLE XXVII
	 	TENANT'S TERMINATION RIGHTS	 	 	59	 
	ARTICLE XXVIII
	 	CERTIFICATES	 	 	60	 
	ARTICLE XXIX
	 	RELATIONSHIP OF PARTIES	 	 	61	 
	ARTICLE XXX
	 	RECORDING	 	 	61	 
	ARTICLE XXXI
	 	CAPTIONS AND SECTION NUMBERS	 	 	62	 
	ARTICLE XXXII
	 	APPLICABLE LAW; WAIVER OF JURY TRIAL	 	 	62	 
	ARTICLE XXXIII
	 	ENTIRE AGREEMENT	 	 	63	 
	ARTICLE XXXIV
	 	LIABILITY OF PARTIES	 	 	63	 
	ARTICLE XXXV
	 	ATTORNEYS’ FEES	 	 	63	 

MASTER
LAND AND BUILDING LEASE

-i-

 

	 	 	 	 	 	 	 
	ARTICLE XXXVI
	 	TIME OF THE ESSENCE; SURVIVAL	 	 	64	 
	ARTICLE XXXVII
	 	ENVIRONMENTAL	 	 	64	 
	ARTICLE XXXVIII
	 	LANDLORD ASSIGNMENT	 	 	68	 
	ARTICLE XXXIX
	 	PROPERTY REPLACEMENTS	 	 	70	 
	ARTICLE XL
	 	GUARANTY	 	 	74	 
	ARTICLE XLI
	 	LANDLORD’S RIGHTS UNDER LEASE	 	 	74	 
	ARTICLE XLII
	 	PATRIOT ACT	 	 	74	 
	ARTICLE XLIII
	 	LIQUOR PROVISIONS	 	 	75	 
	ARTICLE XLIV
	 	ADDENDA	 	 	75	 
	ARTICLE XLV
	 	COUNTERPARTS	 	 	76	 
	ARTICLE XLVI
	 	NOT A GUARANTY	 	 	76	 
	ARTICLE XLVII
	 	STATE SPECIFIC PROVISIONS	 	 	76	 

	 	 	 	 	 
	 

	 	Exhibit A
	 	Location/Address/Legal Descriptions of Real Properties
	 
	 	 	 	 
	 

	 	Exhibit B
	 	Form of Tenant’s Estoppel Certificate
	 
	 	 	 	 
	 

	 	Exhibit C
	 	Form of Memorandum of Lease
	 
	 	 	 	 
	 

	 	Exhibit D
	 	Form of Individual Lease Agreement
	 
	 	 	 	 
	 

	 	Exhibit E
	 	Form of Individual Lease Guaranty
	 
	 	 	 	 
	 

	 	Exhibit F
	 	Form of Guaranty
	 
	 	 	 	 
	 

	 	Exhibit G
	 	Form of SNDA
	 
	 	 	 	 
	 

	 	Exhibit H
	 	Form of Alabama Broker’s Lien Affidavit
	 
	 	 	 	 
	 

	 	Schedule 1
	 	Restaurant Equipment
	 
	 	 	 	 
	 

	 	Schedule 2
	 	Environmental Reports

MASTER LAND AND BUILDING LEASE

-ii-

 

MASTER

LAND AND BUILDING LEASE

          THIS MASTER LAND AND BUILDING LEASE (the “Lease”) is made and entered into as of
[                          ], 2006 (the “Commencement Date”), by and between
[                         ], a Delaware limited liability company (“Landlord”) and FIRE
MOUNTAIN RESTAURANTS, LLC, a Delaware limited liability company (“Tenant”).

R E C I T A L S

A. Landlord is the owner of [                     (     )] tracts of real property (individually, the
“Real Property” and collectively the “Real Properties”). [ALTERNATE LANGUAGE FOR
THE GROUND LEASED PROPERTIES-— Landlord has a leasehold interest in [                     (     )]
tracts of real property (individually, the “Real Property” and collectively the “Real
Properties”).] Each Real Property is more particularly described in Exhibit A attached hereto
and for purposes hereof shall include all of Landlord’s right, title and interest in and to all
easements, appurtenances and rights relating to the Real Property, including without limitation,
Landlord’s right, title, and interest, if any, in and to all (1) adjacent streets, alleys,
rights-of-way and any adjacent strips or gores of real estate; (2) the Buildings (as defined
below); and (3) the Building Equipment (as defined below). Each building, together with all
improvements on or to each tract of Real Property, including but not limited to all site work,
landscaping, fixtures, utilities, and other improvements, is individually referred to as the
“Building,” and collectively referred to as the “Buildings.” The machinery,
equipment and systems necessary for the operation of the Buildings that are “fixtures” pursuant to
applicable law, including, but not limited to any heating, ventilation and air-conditioning
equipment, canopies, fire sprinklers and fire suppression equipment, lighting, built in walk-in
coolers and grill hoods, built-in freezers, built-in sinks, built-in shelving, awnings, and
supports for signs (but specifically excluding any such items that are not “fixtures” pursuant to
applicable law), are referred to herein collectively as the “Building Equipment.” Each
Real Property, together with the related Buildings and Building Equipment are referred to herein
individually as a “Demised Property,” and collectively as the “Demised Properties.”

          B. The personal property, equipment and trade fixtures owned or leased by Tenant located at
the Buildings on any Demised Properties (other than the Building Equipment) and used in connection
with the operation of the business at the Demised Properties are referred to herein collectively as
the “Restaurant Equipment”, which shall include, but not be limited to, those items set
forth on Schedule 1.

          C. Tenant desires to lease from Landlord, and Landlord desires to lease to Tenant, the Demised
Properties so that Tenant may, in accordance with and subject to the terms, conditions and
restrictions of the Lease, operate (or cause the operation of) a RYAN’S STEAKHOUSE restaurant, a
FIRE MOUNTAIN STEAKHOUSE restaurant, an OLD COUNTRY BUFFET restaurant, a HOMETOWN BUFFET
restaurant, a JJ NORTH restaurant or other Permitted Restaurant Brand (as hereinafter defined)
restaurant at each Real Property.

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          D. The Lease constitutes a single and indivisible lease of all the Demised Properties
collectively, and is not an aggregation of leases for the separate Demised Properties. Neither
Landlord nor Tenant would have entered into this Lease except as a single and indivisible lease,
and the rental herein has been established on the basis of the price paid by Landlord in its
acquisition of the Demised Properties collectively, and not on the basis of the valuation or price
of any individual Demised Property.

          NOW, THEREFORE, in consideration of the lease of the Demised Properties and the rents,
covenants and conditions herein set forth, Landlord and Tenant do hereby covenant, promise and
agree as follows:

ARTICLE I

DEMISE OF PREMISES

          Subject to the terms and conditions contained herein, Landlord does hereby lease unto Tenant,
and Tenant does hereby lease from Landlord, for the term hereinafter provided in Article II, the
Demised Properties for the use thereof by Tenant, Tenant’s employees, customers, invitees and
permitted assigns.

ARTICLE II

TERM

     Section 2.01

          (a) The Lease shall commence on the Commencement Date and terminate on [                          , 20     ]
[(19 years after the Commencement Date)] for Tranche A (as hereinafter defined) (the “Original
Tranche A Lease Term”), [                          , 20     ] [(19.5 years after the Commencement Date)] for
Tranche B (as hereinafter defined) (the “Original Tranche B Lease Term”), [                          ,
20     ] [(20 years after the Commencement Date)] for Tranche C (as hereinafter defined) (the
“Original Tranche D Lease Term”), [                          , 20     ] [(20.5 years after the
Commencement Date)] for Tranche D (as hereinafter defined) (the “Original Tranche D Lease
Term”) and [                          , 20     ] [(21 years after the Commencement Date)] for Tranche E (as
hereinafter defined) (the “Original Tranche E Lease Term”), unless any such Lease Term is
sooner terminated as hereinafter set forth. The “Lease Term,” as such term is used herein,
shall mean collectively, the Original Tranche A Lease Term, the Original Tranche B Lease Term, the
Original Tranche C Lease Term, the Original Tranche D Lease Term and the Original Tranche E Lease
Term, or any of the Original Tranche A Lease Term, the Original Tranche B Lease Term, the Original
Tranche C Lease Term, the Original Tranche D Lease Term or the Original Tranche E Lease Term, as
the context may require, as any such Lease Term is extended (or as may be extended) pursuant to
Section 2.02 below, unless sooner terminated as hereinafter set forth. “Tranche A” shall
mean the tranche for the Tranche A Demised Properties; “Tranche A Demised Properties” shall
mean collectively the Tranche A Demised Properties described on Exhibit A; “Tranche A Demised
Property” shall mean each of the Tranche A Demised Properties; “Tranche B” shall mean
the tranche for the Tranche B

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Demised Properties; “Tranche B Demised Properties” shall mean collectively the Tranche
B Demised Properties described on Exhibit A; “Tranche B Demised Property” shall mean each
of the Tranche B Demised Properties; “Tranche C” shall mean the tranche for the Tranche C
Demised Properties; “Tranche C Demised Properties” shall mean collectively the Tranche C
Demised Properties described on Exhibit A; “Tranche C Demised Property” shall mean each of
the Tranche C Demised Properties; “Tranche D” shall mean the tranche for the Tranche D
Demised Properties; “Tranche D Demised Properties” shall mean collectively the Tranche D
Demised Properties described on Exhibit A; “Tranche D Demised Property” shall mean each of
the Tranche D Demised Properties; “Tranche E” shall mean the tranche for the Tranche E
Demised Properties; “Tranche E Demised Properties” shall mean collectively the Tranche E
Demised Properties described on Exhibit A; “Tranche E Demised Property” shall mean each of
the Tranche E Demised Properties; “Tranches” shall mean collectively, Tranche A, Tranche B,
Tranche C, Tranche D and Tranche E; “Tranche” shall mean each of Tranche A, Tranche B,
Tranche C, Tranche D and Tranche E; “Demised Properties” shall mean collectively, the
Tranche A Demised Properties, the Tranche B Demised Properties, the Tranche C Demised Properties,
the Tranche D Demised Properties and the Tranche E Demised Properties, and “Demised
Property” shall mean each of a Tranche A Demised Property, a Tranche B Demised Property, a
Tranche C Demised Property, a Tranche D Demised Property or a Tranche E Demised Property.

          (b) This Lease shall be deemed to be in full force and effect upon the Commencement Date.
Tenant shall be deemed in possession of the Demised Properties upon the Commencement Date.

[ALTERNATE LANGUAGE FOR THE GROUND LEASED PROPERTIES—

          (a) The Lease shall commence on the Commencement Date and terminate on the Scheduled
Expiration Date (the “Original Lease Term”) unless sooner terminated as hereinafter set
forth. The “Lease Term,” as such term is used herein, shall mean the Original Lease Term
as extended (or as may be extended) pursuant to Section 2.02 below, unless sooner terminated as
hereinafter set forth.

          Notwithstanding the foregoing, there may be different Expiration Dates for some of the Demised
Properties and the Lease Term for any particular Demised Property which is a leasehold shall be
determined based upon the remaining term of the applicable Prime Lease (as hereinafter defined),
and shall in any event expire on the earlier of (i) the date that is one day prior to the date on
which the applicable Prime Lease expires and (ii) the last day of the Original Lease Term or if
Tenant elects to extend the Lease Term as provided herein, the last day of applicable Option
Period.

          (b) This Lease shall be deemed to be in full force and effect upon the Commencement Date.
Tenant shall be deemed in possession of the Demised Properties upon the Commencement Date.

          (c) As used herein, the following terms have the meanings indicated:

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               “Expiration Date” shall mean, with respect to any Demised Properties, the last day of
the Lease Term.

               “Prime Landlord” shall mean, individually, each of the landlords under a Prime Lease
(or a specific landlord under a specific Prime Lease) and, collectively, all of the landlords under
all of the Prime Leases, as the case may be.

               “Prime Lease(s)” shall mean any and all ground leases or other underlying leases
demising any Demised Properties (or portion thereof) from time to time which are superior to this
Lease with respect to such Demised Properties, and all renewals, extensions, supplements,
amendments, modifications, consolidations and replacements thereto. Individually, Prime Lease
shall mean each superior lease demising an individual Demised Properties (or a specific superior
lease demising a specific Demised Properties) and, collectively, all of the superior leases
encumbering all of the Demised Properties, as the case may be.

               “Scheduled Expiration Date” shall mean [                          , 20     ] [(20 years after the
Commencement Date)].

END OF ALTERNATIVE LANGUAGE]

     Section 2.02

          (a) Tenant shall have the option to extend the term of this Lease for up to four (4) separate
option periods upon and subject to the terms set forth below in this Section 2.02. The first
option period (the “First Option Period”) for each Tranche shall commence at the expiration
of the Original Lease Term of such Tranche. The second option period (the “Second Option
Period”) for each Tranche shall commence at the expiration of the First Option Period of such
Tranche. The third option period (the “Third Option Period”) of each Tranche shall
commence at the expiration of the Second Option Period of such Tranche. The fourth option period
(the “Fourth Option Period”) of each Tranche shall commence at the expiration of the Third
Option Period of such Tranche. The First Option Period, the Second Option Period, the Third Option
Period and the Fourth Option Period for each Tranche are sometimes referred to herein collectively
as the “Option Periods” and individually as an “Option Period” for such Tranche.
Each Option Period for each Tranche shall continue for a period of five (5) years from the
commencement date of such Option Period for such Tranche. Except as otherwise expressly provided
herein, all of the terms and conditions of this Lease applicable to the Original Lease Term for
each Tranche shall continue to apply during each Option Period for such Tranche.

          (b) To validly extend the Lease Term for the First Option Period for each Tranche for all the
Demised Properties for such Tranche subject to the Lease at the date of Tenant’s delivery to
Landlord of notice of exercise (i) Tenant must and shall deliver to Landlord written notice of
Tenant’s election to so extend not later than twelve (12) months prior to the expiration of the
Original Lease Term for such Tranche, and (ii) as of the date such written notice is delivered to
Landlord, and as of the date the First Option Period for such Tranche is scheduled to commence,
there shall be no existing Event of Default under the Lease.

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          (c) To validly extend the Lease Term for the First Option Period for some, but not all,
Tranche A Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of
notice of exercise (a “Tranche A PE First Option Period” and such option, a “Tranche A
PE First Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s
election to so extend not later than twelve (12) months prior to the expiration of the Original
Tranche A Lease Term; (ii) Tenant’s written notice electing to extend the Original Tranche A Lease
Term shall list the Tranche A Demised Properties that Tenant desires be subject to such extension
(the “Tranche A PE First Option Extension Properties”) provided, however, that the Tranche
A PE First Option Extension Properties must comprise at least eighty percent (80%) of all the
Tranche A Demised Properties covered by the Lease immediately preceding the Tranche A PE First
Option Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the
date the Tranche A PE First Option Period is scheduled to commence, there shall be no existing
Event of Default under the Lease.

To validly extend the Lease Term for the First Option Period for some, but not all, Tranche B
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche B PE First Option Period” and such option, a “Tranche B PE First
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Original Tranche B Lease
Term; (ii) Tenant’s written notice electing to extend the Original Tranche B Lease Term shall list
the Tranche B Demised Properties that Tenant desires be subject to such extension (the “Tranche
B PE First Option Extension Properties”) provided, however, that the Tranche B PE First Option
Extension Properties must comprise at least eighty percent (80%) of all the Tranche B Demised
Properties covered by the Lease immediately preceding the Tranche B PE First Option Period; and
(iii) as of the date such written notice is delivered to Landlord, and as of the date the Tranche
B PE First Option Period is scheduled to commence, there shall be no existing Event of Default
under the Lease.

To validly extend the Lease Term for the First Option Period for some, but not all, Tranche C
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche C PE First Option Period” and such option, a “Tranche C PE First
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Original Tranche C Lease
Term; (ii) Tenant’s written notice electing to extend the Original Tranche C Lease Term shall list
the Tranche C Demised Properties that Tenant desires be subject to such extension (the “Tranche
C PE First Option Extension Properties”) provided, however, that the Tranche C PE First Option
Extension Properties must comprise at least eighty percent (80%) of all the Tranche C Demised
Properties covered by the Lease immediately preceding the Tranche C PE First Option Period; and
(iii) as of the date such written notice is delivered to Landlord, and as of the date the Tranche
C PE First Option Period is scheduled to commence, there shall be no existing Event of Default
under the Lease.

To validly extend the Lease Term for the First Option Period for some, but not all, Tranche D
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche D PE First Option Period” and such option, a “Tranche D PE First
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not

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later than twelve (12) months prior to the expiration of the Original Tranche D Lease Term; (ii)
Tenant’s written notice electing to extend the Original Tranche D Lease Term shall list the Tranche
D Demised Properties that Tenant desires be subject to such extension (the “Tranche D PE First
Option Extension Properties”) provided, however, that the Tranche D PE First Option Extension
Properties must comprise at least eighty percent (80%) of all the Tranche D Demised Properties
covered by the Lease immediately preceding the Tranche D PE First Option Period; and (iii) as of
the date such written notice is delivered to Landlord, and as of the date the Tranche D PE First
Option Period is scheduled to commence, there shall be no existing Event of Default under the
Lease.

To validly extend the Lease Term for the First Option Period for some, but not all, Tranche E
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche E PE First Option Period” and such option, a “Tranche E PE First
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Original Tranche E Lease
Term; (ii) Tenant’s written notice electing to extend the Original Tranche E Lease Term shall list
the Tranche E Demised Properties that Tenant desires be subject to such extension (the “Tranche
E PE First Option Extension Properties”) provided, however, that the Tranche E PE First Option
Extension Properties must comprise at least eighty percent (80%) of all the Tranche E Demised
Properties covered by the Lease immediately preceding the Tranche E PE First Option Period; and
(iii) as of the date such written notice is delivered to Landlord, and as of the date the Tranche
E PE First Option Period is scheduled to commence, there shall be no existing Event of Default
under the Lease. “PE First Option Periods” shall mean collectively, the Tranche A PE First
Option Period, the Tranche B PE First Option Period, the Tranche C PE First Option Period, the
Tranche D PE First Option Period and the Tranche E PE First Option Period; and “PE First Option
Period” shall mean each of the Tranche A PE First Option Period, the Tranche B PE First Option
Period, the Tranche C PE First Option Period, the Tranche D PE First Option Period and the Tranche
E PE First Option Period.

          (d) To validly extend the Lease Term for the Second Option Period for each Tranche for all the
Demised Properties of such Tranche under the Lease, (i) Tenant must have validly extended the Lease
for the First Option Period (whether such First Option Period is for all Demised Properties for
such Tranche under the Lease or a PE First Option Period) for such Tranche (ii) Tenant must and
shall deliver to Landlord written notice of Tenant’s election to so extend not later than twelve
(12) months prior to the expiration of the First Option Period for such Tranche, and (iii) as of
the date such written notice is delivered to Landlord, and as of the date the Second Option Period
for such Tranche is scheduled to commence, there shall be no existing Event of Default under the
Lease.

          (e) To validly extend the Lease Term for the Second Option Period for some, but not all,
Tranche A Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of
notice of exercise (a “Tranche A PE Second Option Period” and such option, a “Tranche A
PE Second Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s
election to so extend not later than twelve (12) months prior to the expiration of the Tranche A
First Option Period; (ii) Tenant’s written notice electing to extend the Tranche A First Option
Period shall list the Tranche A Demised Properties that Tenant desires be subject to such

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extension (the “Tranche A PE Second Option Extension Properties”) provided, however,
that the Tranche A PE Second Option Extension Properties must comprise at least eighty percent
(80%) of all the Tranche A Demised Properties covered by the Lease immediately preceding the
Tranche A PE Second Option Period; and (iii) as of the date such written notice is delivered to
Landlord, and as of the date the Tranche A PE Second Option Period is scheduled to commence, there
shall be no existing Event of Default under the Lease.

To validly extend the Lease Term for the Second Option Period for some, but not all, Tranche B
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche B PE Second Option Period” and such option, a “Tranche B PE Second
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche B First Option
Period; (ii) Tenant’s written notice electing to extend the Tranche B First Option Period shall
list the Tranche B Demised Properties that Tenant desires be subject to such extension (the
“Tranche B PE Second Option Extension Properties”) provided, however, that the Tranche B PE
Second Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche B
Demised Properties covered by the Lease immediately preceding the Tranche B PE Second Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the date
the Tranche B PE Second Option Period is scheduled to commence, there shall be no existing Event
of Default under the Lease.

To validly extend the Lease Term for the Second Option Period for some, but not all, Tranche C
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche C PE Second Option Period” and such option, a “Tranche C PE Second
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche C First Option
Period; (ii) Tenant’s written notice electing to extend the Tranche C First Option Period shall
list the Tranche C Demised Properties that Tenant desires be subject to such extension (the
“Tranche C PE Second Option Extension Properties”) provided, however, that the Tranche C PE
Second Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche C
Demised Properties covered by the Lease immediately preceding the Tranche C PE Second Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the date
the Tranche C PE Second Option Period is scheduled to commence, there shall be no existing Event
of Default under the Lease.

To validly extend the Lease Term for the Second Option Period for some, but not all, Tranche D
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche D PE Second Option Period” and such option, a “Tranche D PE Second
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche D First Option
Period; (ii) Tenant’s written notice electing to extend the Tranche D First Option Period shall
list the Tranche D Demised Properties that Tenant desires be subject to such extension (the
“Tranche D PE Second Option Extension Properties”) provided, however, that the Tranche D PE
Second Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche D
Demised Properties covered by the Lease immediately preceding the Tranche D PE Second Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the

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date the Tranche D PE Second Option Period is scheduled to commence, there shall be no existing
Event of Default under the Lease.

To validly extend the Lease Term for the Second Option Period for some, but not all, Tranche E
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche E PE Second Option Period” and such option, a “Tranche E PE Second
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche E First Option
Period; (ii) Tenant’s written notice electing to extend the Tranche E First Option Period shall
list the Tranche E Demised Properties that Tenant desires be subject to such extension (the
“Tranche E PE Second Option Extension Properties”) provided, however, that the Tranche E PE
Second Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche E
Demised Properties covered by the Lease immediately preceding the Tranche E PE Second Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the date
the Tranche E PE Second Option Period is scheduled to commence, there shall be no existing Event
of Default under the Lease. “PE Second Option Periods” shall mean collectively, the
Tranche A Second Option Period, the Tranche B Second Option Period, the Tranche C Second Option
Period, the Tranche D Second Option Period and the Tranche E Second Option Period; and “PE
Second Option Period” shall mean each of the Tranche A Second Option Period, the Tranche B
Second Option Period, the Tranche C Second Option Period, the Tranche D Second Option Period and
the Tranche E Second Option Period.

          (f) To validly extend the Lease Term for the Third Option Period for each Tranche for all the
Demised Properties of such Tranche under the Lease, (i) Tenant must have validly extended the Lease
for the Second Option Period (whether such Second Option Period is for all Demised Properties for
such Tranche under the Lease or a PE Second Option Period) for such Tranche (ii) Tenant must and
shall deliver to Landlord written notice of Tenant’s election to so extend not later than twelve
(12) months prior to the expiration of the Second Option Period for such Tranche, and (iii) as of
the date such written notice is delivered to Landlord, and as of the date the Third Option Period
for such Tranche is scheduled to commence, there shall be no existing Event of Default under the
Lease.

          (g) To validly extend the Lease Term for the Third Option Period for some, but not all,
Tranche A Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of
notice of exercise (a “Tranche A PE Third Option Period” and such option, a “Tranche A
PE Third Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s
election to so extend not later than twelve (12) months prior to the expiration of the Tranche A
Second Option Period; (ii) Tenant’s written notice electing to extend the Tranche A Second Option
Period shall list the Tranche A Demised Properties that Tenant desires be subject to such extension
(the “Tranche A PE Third Option Extension Properties”) provided, however, that the Tranche
A PE Third Option Extension Properties must comprise at least eighty percent (80%) of all the
Tranche A Demised Properties covered by the Lease immediately preceding the Tranche A PE Third
Option Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the
date the Tranche A PE Third Option Period is scheduled to commence, there shall be no existing
Event of Default under the Lease.

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To validly extend the Lease Term for the Third Option Period for some, but not all, Tranche B
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche B PE Third Option Period” and such option, a “Tranche B PE Third
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche B Second Option
Period; (ii) Tenant’s written notice electing to extend the Tranche B Second Option Period shall
list the Tranche B Demised Properties that Tenant desires be subject to such extension (the
“Tranche B PE Third Option Extension Properties”) provided, however, that the Tranche B PE
Third Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche B
Demised Properties covered by the Lease immediately preceding the Tranche B PE Third Option Period;
and (iii) as of the date such written notice is delivered to Landlord, and as of the date the
Tranche B PE Third Option Period is scheduled to commence, there shall be no existing Event of
Default under the Lease.

To validly extend the Lease Term for the Third Option Period for some, but not all, Tranche C
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche C PE Third Option Period” and such option, a “Tranche C PE Third
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche C Second Option
Period; (ii) Tenant’s written notice electing to extend the Tranche C Second Option Period shall
list the Tranche C Demised Properties that Tenant desires be subject to such extension (the
“Tranche C PE Third Option Extension Properties”) provided, however, that the Tranche C PE
Third Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche C
Demised Properties covered by the Lease immediately preceding the Tranche C PE Third Option Period;
and (iii) as of the date such written notice is delivered to Landlord, and as of the date the
Tranche C PE Third Option Period is scheduled to commence, there shall be no existing Event of
Default under the Lease.

To validly extend the Lease Term for the Third Option Period for some, but not all, Tranche D
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche D PE Third Option Period” and such option, a “Tranche D PE Third
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche D Second Option
Period; (ii) Tenant’s written notice electing to extend the Tranche D Second Option Period shall
list the Tranche D Demised Properties that Tenant desires be subject to such extension (the
“Tranche D PE Third Option Extension Properties”) provided, however, that the Tranche D PE
Third Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche D
Demised Properties covered by the Lease immediately preceding the Tranche D PE Third Option Period;
and (iii) as of the date such written notice is delivered to Landlord, and as of the date the
Tranche D PE Third Option Period is scheduled to commence, there shall be no existing Event of
Default under the Lease.

To validly extend the Lease Term for the Third Option Period for some, but not all, Tranche E
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche E PE Third Option Period” and such option, a “Tranche E PE Third
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so

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extend not later than twelve (12) months prior to the expiration of the Tranche E Second Option
Period; (ii) Tenant’s written notice electing to extend the Tranche E Second Option Period shall
list the Tranche E Demised Properties that Tenant desires be subject to such extension (the
“Tranche E PE Third Option Extension Properties”) provided, however, that the Tranche E PE
Third Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche E
Demised Properties covered by the Lease immediately preceding the Tranche E PE Third Option Period;
and (iii) as of the date such written notice is delivered to Landlord, and as of the date the
Tranche E PE Third Option Period is scheduled to commence, there shall be no existing Event of
Default under the Lease. “PE Third Option Periods” shall mean collectively, the Tranche A
Third Option Period, the Tranche B Third Option Period, the Tranche C Third Option Period, the
Tranche D Third Option Period and the Tranche E Third Option Period; and “PE Third Option
Period” shall mean each of the Tranche A Third Option Period, the Tranche B Third Option
Period, the Tranche C Third Option Period, the Tranche D Third Option Period and the Tranche E
Third Option Period.

          (h) To validly extend the Lease Term for the Fourth Option Period for all the Demised
Properties for each Tranche under the Lease, (i) Tenant must have validly extended the Lease for
the Third Option Period (whether such Third Option Period is for all Demised Properties for such
Tranche under the Lease or a PE Third Option Period) for such Tranche (ii) Tenant must and shall
deliver to Landlord written notice of Tenant’s election to so extend not later than twelve (12)
months prior to the expiration of the Third Option Period for such Tranche, and (iii) as of the
date such written notice is delivered to Landlord, and as of the date the Fourth Option Period is
scheduled to commence, there shall be no existing Event of Default under the Lease.

          (i) To validly extend the Lease Term for the Fourth Option Period for some, but not all,
Tranche A Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of
notice of exercise (a “Tranche A PE Fourth Option Period” and such option, a “Tranche A
PE Fourth Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s
election to so extend not later than twelve (12) months prior to the expiration of the Tranche A
Third Option Period; (ii) Tenant’s written notice electing to extend the Tranche A Third Option
Period shall list the Tranche A Demised Properties that Tenant desires be subject to such extension
(the “Tranche A PE Fourth Option Extension Properties”) provided, however, that the Tranche
A PE Fourth Option Extension Properties must comprise at least eighty percent (80%) of all the
Tranche A Demised Properties covered by the Lease immediately preceding the Tranche A PE Fourth
Option Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the
date the Tranche A PE Fourth Option Period is scheduled to commence, there shall be no existing
Event of Default under the Lease.

To validly extend the Lease Term for the Fourth Option Period for some, but not all, Tranche B
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche B PE Fourth Option Period” and such option, a “Tranche B PE Fourth
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche B Third Option
Period; (ii) Tenant’s written notice electing to extend the Tranche B Third Option Period shall
list the Tranche B Demised Properties that Tenant desires be subject to such extension (the

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“Tranche B PE Fourth Option Extension Properties”) provided, however, that the Tranche B PE
Fourth Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche B
Demised Properties covered by the Lease immediately preceding the Tranche B PE Fourth Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the date
the Tranche B PE Fourth Option Period is scheduled to commence, there shall be no existing Event of
Default under the Lease.

To validly extend the Lease Term for the Fourth Option Period for some, but not all, Tranche C
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche C PE Fourth Option Period” and such option, a “Tranche C PE Fourth
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche C Third Option
Period; (ii) Tenant’s written notice electing to extend the Tranche C Third Option Period shall
list the Tranche C Demised Properties that Tenant desires be subject to such extension (the
“Tranche C PE Fourth Option Extension Properties”) provided, however, that the Tranche C PE
Fourth Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche C
Demised Properties covered by the Lease immediately preceding the Tranche C PE Fourth Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the date
the Tranche C PE Fourth Option Period is scheduled to commence, there shall be no existing Event
of Default under the Lease.

To validly extend the Lease Term for the Fourth Option Period for some, but not all, Tranche D
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche D PE Fourth Option Period” and such option, a “Tranche D PE Fourth
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche D Third Option
Period; (ii) Tenant’s written notice electing to extend the Tranche D Third Option Period shall
list the Tranche D Demised Properties that Tenant desires be subject to such extension (the
“Tranche D PE Fourth Option Extension Properties”) provided, however, that the Tranche D PE
Fourth Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche D
Demised Properties covered by the Lease immediately preceding the Tranche D PE Fourth Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as of the date
the Tranche D PE Fourth Option Period is scheduled to commence, there shall be no existing Event
of Default under the Lease.

To validly extend the Lease Term for the Fourth Option Period for some, but not all, Tranche E
Demised Properties subject to the Lease at the date of Tenant’s delivery to Landlord of notice of
exercise (a “Tranche E PE Fourth Option Period” and such option, a “Tranche E PE Fourth
Option”) (i) Tenant must and shall deliver to Landlord written notice of Tenant’s election to
so extend not later than twelve (12) months prior to the expiration of the Tranche E Third Option
Period; (ii) Tenant’s written notice electing to extend the Tranche E Third Option Period shall
list the Tranche E Demised Properties that Tenant desires be subject to such extension (the
“Tranche E PE Fourth Option Extension Properties”) provided, however, that the Tranche E PE
Fourth Option Extension Properties must comprise at least eighty percent (80%) of all the Tranche E
Demised Properties covered by the Lease immediately preceding the Tranche E PE Fourth Option
Period; and (iii) as of the date such written notice is delivered to Landlord, and as

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of the date the Tranche E PE Fourth Option Period is scheduled to commence, there shall be no
existing Event of Default under the Lease. “PE Fourth Option Periods” shall mean
collectively, the Tranche A Fourth Option Period, the Tranche B Fourth Option Period, the Tranche C
Fourth Option Period, the Tranche D Fourth Option Period and the Tranche E Fourth Option Period;
and “PE Fourth Option Period” shall mean each of the Tranche A Fourth Option Period, the
Tranche B Fourth Option Period, the Tranche C Fourth Option Period, the Tranche D Fourth Option
Period and the Tranche E Fourth Option Period.

          (j) Notwithstanding the foregoing, if Tenant has satisfied all requirements set forth in this
Section to extend the applicable Lease Term for the applicable Option Period other than the
requirement that there be no existing Event of Default, then so long as (i) any such existing Event
of Default is regarding the physical condition of any Demised Property (other than any default
under Article XXXVII hereof) (a “Physical Condition Event of Default”) and (ii) a Physical
Condition Event of Default shall not exist at more than the lesser of (A) 2 Tranche A Demised
Properties in the aggregate, 2 Tranche B Demised Properties in the aggregate, 2 Tranche C Demised
Properties in the aggregate, 2 Tranche D Demised Properties in the aggregate and 2 Tranche E
Demised Properties in the aggregate under this Lease and (B) ten percent (10%) of the Tranche A
Demised Properties, ten percent (10%) of the Tranche B Demised Properties, ten percent (10%) of the
Tranche C Demised Properties, ten percent (10%) of the Tranche D Demised Properties and ten percent
(10%) of the Tranche E Demised Properties under this Lease, then Tenant shall be permitted to
extend the Lease Term for the applicable Option Period.

          (k) Without limiting anything contained in Article XXXVI hereof, time is of the strictest
essence in the performance of each provision of this Section 2.02. Either party, upon request of
the other, shall execute and acknowledge, in form suitable for recording, an instrument confirming
any Option Period, with Tenant paying all applicable recording costs.

[ADDITIONAL LANGUAGE FOR GROUND LEASED PROPERTIES —

          (l) Provided that Tenant delivers Landlord prompt written notice of its election to extend the
term of a Prime Lease within the time periods required under such Prime Lease, Landlord will
exercise any renewal options to extend the term of such Prime Lease. In the event Tenant elects
not to extend the term of a Prime Lease or fails to do so within the time periods required under
such Prime Lease, then Landlord shall have the right (but not the obligation) to extend the term of
any Prime Lease.]

ARTICLE III

RENT

     Section 3.01 Rent. As used herein, “Rent” means Base Rent (as defined below)
plus Additional Rent (as defined below). Tenant shall pay all Rent, from and after the Commencement
Date and thereafter throughout the Lease Term, without offset, deduction, or abatement except as
may be otherwise expressly provided herein. Notwithstanding the foregoing, any amounts due by
Tenant to Landlord hereunder for which no due date is expressly

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specified herein shall be due within thirty (30) days following the delivery to Tenant by
Landlord of written notice of such amounts due. Except as otherwise expressly provided herein, in
the event of nonpayment by Tenant of any Rent, Landlord shall have the same rights and remedies in
respect thereof regardless of whether such Rent is Base Rent or Additional Rent. All payments of
Rent due to Landlord shall be paid to Landlord by electronic deposit into an account designated by
Landlord (a “Landlord’s Account”).

     Section 3.02 Base Rent.

          (a) As used herein, subject to the annual increases as hereinafter provided, the “Base Rent”
for the Tranche A Demised Properties for each month of the Lease Term shall be
[                                         (US$                     )] (the “Tranche A Base Rent”); the “Base Rent” for
the Tranche B Demised Properties for each month of the Lease Term shall be [                                        
(US$                     )] (the “Tranche B Base Rent”); the “Base Rent” for the Tranche C Demised
Properties for each month of the Lease Term shall be [                                         (US$                     )] (the
“Tranche C Base Rent”); the “Base Rent” for the Tranche D Demised Properties for each month
of the Lease Term shall be [                                         (US$                     )] (the “Tranche D Base
Rent”); and the “Base Rent” for the Tranche E Demised Properties for each month of the Lease
Term shall be [                                         (US$                     )] (the “Tranche E Base Rent”). The
Base Rent shall collectively mean the Tranche A Base Rent, the Tranche B Base Rent, the Tranche C
Base Rent, the Tranche D Base Rent and the Tranche E Base Rent and each of the Tranche A Base Rent,
the Tranche B Base Rent, the Tranche C Base Rent, the Tranche D Base Rent and the Tranche E Base
Rent. Tenant shall pay to Landlord Base Rent, in advance, without demand therefor, on or before
the first day of each and every calendar month during the Lease Term (each a “Payment
Date”) and if the Commencement Date is not the first day of a calendar month, Tenant shall pay
to Landlord pro-rated Base Rent on the Commencement Date for the partial calendar month in which
the Commencement Date occurs.

          (b) Subject to the terms of this Section, (i) on each Adjustment Date (as defined below)
throughout the Original Lease Term, the monthly Base Rent shall increase by the Base Rent
Escalation (as defined below), and such increased Base Rent shall apply for the ensuing twelve (12)
month period; (ii) for each of the First Option Period (other than a PE First Option Period), the
Second Option Period (other than a PE Second Option Period), the Third Option Period (other than a
PE Third Option Period) and the Fourth Option Period (other than a PE Fourth Option Period), if
such options are timely exercised as provided in Article II, (A) on the Adjustment Date of the
first Lease Year of each of the First Option Period, the Second Option Period, the Third Option
Period and the Fourth Option Period, the monthly Base Rent shall be increased to Market Rent (as
defined below) and (B) on the Adjustment Date of the second, third, fourth and fifth Lease Year of
each of the First Option Period, the Second Option Period, the Third Option Period and the Fourth
Option Period, the monthly Base Rent shall increase by the Base Escalation, and such increased Base
Rent shall apply for the ensuing twelve (12) month period; and (iii) for each of the First PE
Option Period, the Second PE Option Period, the Third PE Option Period and the Fourth PE Option
Period, if such options are timely exercised as provided in Article II, (A) on the Adjustment Date
of the first Lease Year of each of the First PE Option Period, Second PE Option Period, the Third
PE Option Period and the Fourth

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PE Option Period, the monthly Base Rent for the applicable PE Option Extension Properties (as
defined below) shall be increased to Market Rent and (B) on the Adjustment Date of the second,
third, fourth and fifth Lease Year of each of the First PE Option Period, the Second PE Option
Period, the Third PE Option Period and the Fourth PE Option Period, the monthly Base Rent shall
increase by the Base Rent Escalation, and such increased Base Rent shall apply for the ensuing
twelve (12) month period. Notwithstanding anything herein to the contrary, in no event shall the
increased Base Rent be less than the Base Rent described in this Subsection (b) for the prior
applicable Lease Year, provided however in the case of the increased Base Rent for the first Lease
Year of any PE Option Period, such increased Base Rent shall not be less than the product of (1)
the Base Rent in effect for the prior Lease Year, multiplied by (2) a fraction, the numerator of
which is the aggregate appraised fair market value of the applicable PE Option Extension
Properties, and the denominator of which is the aggregate appraised fair market value of all the
Demised Properties for the applicable Tranche (prior to the commencement of the applicable PE
Option Period).

          (c) The following terms shall have the following meanings:

               (1) “Adjustment Date” shall mean each anniversary of the Commencement Date
throughout the Lease Term; provided, however, if the Commencement Date is other than the
first day of a calendar month, then “Adjustment Date” shall mean each anniversary of
the first day of the first calendar month occurring after the Commencement Date.

               (2) “Base Index” shall mean the CPI for the Lease Year prior to the Lease Year
when the applicable Base Rent Escalation calculation is being made.

               (3) “Base Rent Escalation” shall mean the Base Rent increasing by two (2) times
the increases in the CPI, with the increases calculated as follows: (A) subtract one point
zero (1.0) from a fraction, the numerator of which shall be the Variable Index, and the
denominator of which shall be the Base Index; and (B) multiply the result obtained in clause
(A) above by two (2), then (C) multiply the result obtained in clause (B) above by the Base
Rent for the prior Lease Year. Notwithstanding the foregoing, in no event shall the new
Base Rent adjusted by the Base Rent Escalation be less than the Base Rent for the prior
Lease Year or greater than the Base Rent for the prior Lease Year increased by two percent
(2%).

               (4) “CPI” shall mean the Consumer Price Index for All Urban Consumers (CPI-U)
for the U.S. City Average for All Items (1982-84=100), published by the Bureau of Labor
Statistics of the U.S. Department of Labor for the period ending 3 months prior to the
applicable date. If the CPI is not published for any month during the Lease Term, Landlord,
in its reasonable discretion (and reasonably acceptable to Tenant), may substitute a
comparable index which reflects the purchasing power of the consumer dollar and is published
by the Bureau of Labor Statistics of the U.S. Department of Labor. If such an index is not
published by the Bureau of Labor Statistics, Landlord, in its reasonable discretion, shall
select a comparable index published by a nationally recognized responsible financial
periodical.

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               (5) “Lease Year” shall mean each twelve (12) month period beginning
[                    ] and ending [                    ] during the Lease Term.

               (6) “Market Rent” shall mean the fair rental value, on a per square foot basis,
of space used as a similar restaurant and located in the same market area in which the
applicable Demised Properties are located under a lease term equal to the length of the
renewal term for which the Market Rent is being determined, giving consideration to the
creditworthiness of the Tenant and other market conditions.

                    (i) Within fifteen (15) days after the date of Landlord’s receipt of Tenant’s election
to renew the Term of this Lease with respect to such Demised Properties for such Option Term
(the “Renewal Notice Date”), each of Landlord and Tenant shall deliver to the other
party its calculation of Market Rent. Landlord and Tenant shall negotiate in good faith to
determine the Market Rent within thirty (30) days after the Renewal Notice Date. If, within
thirty (30) days after the Renewal Notice Date, the parties have not agreed upon the Market
Rent, Landlord and Tenant shall thereafter give notice to the other party specifying the
name and address of its designated appraiser (each an “Arbitration Appointment
Notice”). Such two appraisers shall, within thirty (30) days after designation by
Landlord and Tenant of their respective appraiser, each make their determination of the
Market Rent in writing and simultaneously shall give notice thereof to each other and to
Landlord and Tenant. Such two appraisers shall have thirty (30) days after the receipt of
notice of each other’s determinations to confer with each other and to attempt to reach
agreement as to the determination of the Market Rent. If such appraisers shall fail to
concur as to such determination within said thirty (30) day period, they shall give notice
thereof to Landlord and Tenant and shall immediately designate a third appraiser. If the
two appraisers shall fail to agree upon the designation of such third appraiser within five
days after said thirty (30) day period, they shall jointly give notice of such failure to
agree to Landlord and Tenant; and, if Landlord and Tenant fail to agree upon the selection
of such third appraiser within five days after the appraisers appointed by the Landlord and
Tenant give notice as aforesaid, then either party on behalf of both may apply to the
American Arbitration Association or any successor thereto (“AAA”) by delivering
written notice thereof to the other party. In such event, the electing party shall petition
the AAA (with a copy to the other party) to so determine the third appraiser and the parties
shall cooperate reasonably with each other and the AAA (including, without limitation, by
responding promptly to any requests for information made by the AAA) in connection with such
determination. The decision of the AAA shall be final and conclusive as to the identity of
the third appraiser.

                    (ii) All appraisers shall be independent MAI real estate appraisers who shall have had
at least 10 years’ experience in the business of valuation of portfolios of triple-net
leased restaurants on a national basis.

                    (iii) Within thirty (30) days after the date of the third appraiser’s designation, each
of the three appraisers shall decide whether the Market Rent as initially proposed by the
Landlord or Tenant is closer to the actual Market Rent as determined by each such appraiser.
The decision of the majority of the three appraisers

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shall be binding on Landlord and Tenant and shall have the same force and effect as a
judgment made in a court of competent jurisdiction. The determination of each appraiser
shall be limited to the sole issue of, and each appraiser shall neither have the right or
the power to determine any issue other than, whether the Market Rent as initially proposed
by Landlord or Tenant is closer to the actual Market Rent as determined by each such
appraiser. Notwithstanding the foregoing, in no event shall the Market Rent be less than
the Base Rent for the prior Lease Year.

                    (iv) If either Landlord or Tenant fails to appoint an appraiser within thirty (30) days
after the Renewal Notice Date or fails to deliver an Appraiser Appointment Notice in
accordance with the provisions above, and the other party does appoint an appraiser within
such thirty (30) day period and delivers an Appraiser Appointment Notice in accordance with
the provisions above, then the appraiser timely appointed by such other party shall reach a
decision regarding whether the Market Rent as proposed by Landlord or Tenant pursuant to the
provisions above, is closer to the actual Market Rent as determined by each such appraiser,
and notify Landlord and Tenant of that decision within thirty (30) days after such
appraiser’s appointment. In such event, such appraiser’s decision shall be binding on
Landlord and Tenant.

                    (v) If the appraisers (or appraiser, pursuant to paragraph iv, above) determine that
Tenant’s proposed Market Rent is closer to the actual Market Rent, then Landlord shall be
deemed the “Losing Party” and Tenant shall be deemed the “Prevailing Party.” If the
appraisers (or appraiser, pursuant to paragraph iv, above) determine that Landlord’s
proposed Market Rent is closer to the actual Market Rent, then Tenant shall be deemed the
“Losing Party” and Landlord shall be deemed the “Prevailing Party.” Each party shall
initially pay the fees and expenses of its legal counsel, appointed appraiser, appraisals,
one-half of the fees of the third appraiser, and one-half the fees of the AAA (if
applicable), provided, however, that the Losing Party shall be obligated to reimburse the
Prevailing Party for all costs of the arbitration paid by the Prevailing Party promptly upon
the completion of the arbitration procedure set forth in this subsection (including fees and
expenses of the Prevailing Party’s legal counsel, appointed appraiser, appraisals, and its
one-half share of the fees of the third appraiser, and the AAA (if applicable)).

                    (vi) If for any reason the Market Rent has not been determined by the date on which it
shall become effective, then, until such Market Rent has been determined in accordance
herewith, the Market Rent shall be deemed to be the Base Rent for such Demised Properties
applicable to the period immediately prior to the renewal period in question, and such
Market Rent when determined shall be effective from the beginning of such renewal period.

               (7) “PE Option” shall mean any of the First PE Option, the Second PE Option,
the Third PE Option or the Fourth PE Option.

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          (8) “PE Option Extension Properties” shall mean any of the First PE Option
Extension Properties, the Second PE Option Extension Properties, the Third PE Option
Extension Properties and/or the Fourth PE Option Extension Properties.

          (9) “PE Option Period” shall mean any of the First PE Option Period, the Second
PE Option Period, the Third PE Option Period or the Fourth PE Option Period.

          (10) “Variable Index” shall mean the CPI for the applicable Lease Year.

          (d) Within sixty (60) days after delivery to Landlord by Tenant of a timely and valid exercise
of a PE Option, Landlord shall deliver to Tenant Landlord’s proposal for Base Rent during the first
year of the applicable PE Option Period. If Tenant fails to deliver to Landlord a written notice
objecting to such Base Rent proposal within thirty (30) days after the notice containing same is
delivered to Tenant, or if Tenant delivers to Landlord such written notice objecting to Landlord’s
Base Rent proposal within such thirty (30) day period, then Landlord shall obtain, within ninety
(90) days after delivery of such notice to Landlord from Tenant, MAI replacement fair market value
appraisals of the Demised Properties for the applicable Tranche in accordance with the appraisal
arbitration procedure set forth in Section 3.02(c)(6). Tenant shall pay all costs of the
appraisals obtained by Landlord pursuant to this subsection (d). During any PE Option Period, on
each anniversary of the first day of such PE Option Period, the monthly Base Rent shall increase by
the Base Rent Escalation, and such increased Base Rent shall apply for the ensuing twelve (12)
month period.

     Section 3.03 Additional Rent.

          (a) As used herein, “Additional Rent” means any and all fees, expenses, taxes and
charges of every kind and nature arising in connection with or relating to the Demised Properties
(other than Base Rent), including without limitation (i) any and all taxes (including, without
limitation, Real Estate Taxes (as defined below)), fees, utility service charges, insurance
premiums, and other costs, and any amounts owed by Tenant under any indemnity to Landlord
hereunder, including, without limitation under Article X and Article XXXVII; (ii) all fees and
penalties that may accrue on any amounts due from Tenant hereunder if Tenant fails to pay such
amounts in a timely manner; (iii) all other damages, costs and expenses (including, without
limitation, reasonable attorneys’ fees and other legal and court costs) which Landlord may suffer
or incur in enforcing this Lease (whether or not any formal action is brought by Landlord against
Tenant) or in otherwise taking actions permitted under this Lease following a Default by Tenant
(including, without limitation, making Repairs and fulfilling other obligations of Tenant as
provided in Section 7.01, and purchasing insurance required to be maintained by Tenant under the
Lease, as provided in Section 11.07); (iv) any and all other sums which may become due, or costs
and expenses that may be incurred by Landlord, by reason of any Default or Event of Default under
this Lease; and (v) any and all costs of maintaining, repairing and restoring the Demised
Properties. In addition, “Additional Rent” shall include any rent or other income received by
Tenant from any subtenant of any Demised Property to the extent applicable to periods after the
expiration or termination of this Lease as to such Demised Property.

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          (b) Without limiting anything contained in subsection 3.03(a), Tenant shall pay, as Additional
Rent all “Real Estate Taxes” (as hereinafter defined). As used herein, the term “Real Estate
Taxes” means all taxes and general and special assessments and other impositions in lieu
thereof, as a supplement thereto and any other tax which is measured by the value of land and
assessed on a uniform basis against the owners of land, including any substitution in whole or in
part therefor due to a future change in the method of taxation, in each case assessed against, or
allocable or attributable to, the Demised Properties and accruing during or prior to the Lease
Term. Nothing contained in this Lease, however, shall require Tenant to pay any estate,
inheritance, corporate, franchise, income or similar taxes of Landlord, nor shall any of same be
deemed Real Estate Taxes, unless same shall be specifically imposed in substitution for, or in lieu
of, Real Estate Taxes. In addition, Tenant shall not be required to pay any tax imposed (except as
otherwise required under Article XXV) with respect to the sale, exchange, mortgage, encumbrance, or
other disposition by Landlord, in whole or in part, of any of the Demised Properties or Landlord’s
interest in the Lease (provided, however, that the foregoing shall not limit Tenant’s obligation to
pay any increase in Real Estate Taxes resulting from any such sale, exchange, mortgage,
encumbrance, or other disposition by Landlord). If by law, any general or special assessment or
like charge may be paid in installments without any penalty whatsoever, then such assessment may be
paid in such installments and Tenant shall only be liable for the portion thereof that is allocable
or attributable to the Lease Term or any portion thereof. If such assessment or charge may be
payable in installments with interest, Tenant may pay such assessment or charge in installments,
provided that if such installments extend beyond the Lease Term, Landlord shall have the option to
repay all remaining installments coming due following the Lease Term without interest.

          (c) Tenant shall pay all Real Estate Taxes directly to the collecting authority no less than
thirty (30) days prior to the delinquency date thereof and shall provide Landlord not less than ten
(10) business days prior to such delinquency date a copy of the paid receipt for each installment
of Real Estate Taxes so paid. Notwithstanding the foregoing, upon the occurrence of both of the
following events, in lieu of payment directly to the applicable collecting authority, Tenant shall
pay to Landlord an amount, when added to the monthly payments due under this subsection 3.03(c),
shall be sufficient to pay the Real Estate Taxes next coming due (collectively, the “Real
Estate Taxes Pass-Throughs) on the Payment Date immediately following both of the following
events: (A) delivery to Tenant of a written request therefor from Landlord, and (B) the existence
of any default or breach of this subsection 3.03(c) by Tenant, or any Event of Default under any
provision in this Lease (the foregoing clause (B) may be hereinafter referred to as a “Real
Estate Taxes Pass-Throughs Trigger”). On every Payment Date thereafter, Tenant shall pay to
Landlord one-twelfth of the amount of the Real Estate Taxes that Landlord reasonably estimates
will be payable during the next ensuing twelve (12) months. Funds in the Real Estate Taxes
Pass-Throughs shall be used for payment of the Real Estate Taxes next coming due. Following the
imposition of a Real Estate Tax Reserve, in the event Tenant completes a twelve (12) month
consecutive period without the occurrence of a Real Estate Taxes Pass-Throughs Trigger, then
following written request by Tenant, Landlord shall disburse any funds in the Real Estate Taxes
Pass-Throughs Trigger to Tenant and Tenant shall no longer be obligated to make the monthly
payments of the Real Estate Taxes to Landlord in lieu of the applicable collecting authority until
the occurrence of another Real Estate Taxes Pass-Through Trigger. If Tenant fails

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to pay the appropriate party (Landlord or the collecting authority, as provided herein) all
Real Estate Taxes when due hereunder, then Tenant shall, without limiting any other remedies
available to Landlord, reimburse Landlord for any and all penalties or interest, or portion
thereof, incurred by Landlord as a result of such nonpayment or late payment by Tenant.

          (d) Tenant shall have the right to undertake an action or proceeding against the applicable
collecting authority seeking an abatement of Real Estate Taxes or a reduction in the valuation of
the Demised Properties and/or contest the applicability of any Real Estate Taxes; provided,
however, that Tenant has paid timely (and continues to pay timely) all Real Estate Taxes as
provided in this Lease to the extent required by applicable law. Landlord may deliver to Tenant
written requests from time to time, not more than once in any thirty (30) day period, for
information regarding any such action or proceeding by Tenant. Tenant shall respond in good faith
with all information reasonably requested by Landlord within 5 days after receipt of Landlord’s
written request. In any instance where any such permitted action or proceeding is being undertaken
by Tenant, Landlord shall cooperate reasonably with Tenant, at no cost or expense to Landlord, and
execute any and all documents approved by Landlord and reasonably required in connection therewith.
Tenant shall be entitled to any refund (after the deduction therefrom of all expenses incurred by
Landlord in connection therewith) of any Real Estate Taxes (including, without limitation,
penalties or interest thereon) received by Tenant or Landlord, whether or not such refund was a
result of actions or proceedings instituted by Tenant.

          (e) Without limiting anything contained in subsection 3.03(a), Tenant shall be solely
responsible for, and shall pay directly to the applicable service providers, the cost of all
utility services provided to the Demised Properties throughout the Lease Term.

          (f) Without limiting any of Tenant’s other obligations set forth in this Article, Tenant shall
pay to Landlord, with each payment due to Landlord hereunder (and as a part of Rent due hereunder),
all sales and excise tax on rental income and all other similar taxes imposed upon Landlord with
respect to rental or other payments in the nature of a gross receipts tax, sales tax, privilege tax
or the like, whether imposed by a federal, state or local taxing authority, which when added to
such payment shall yield to Landlord after deduction of all such tax payable by Landlord with
respect to all such payments a net amount which Landlord would have realized from such payment had
no such tax been imposed.

[ADDITIONAL LANGUAGE FOR GROUND LEASE PROPERTIES —

          (g) Without limiting anything contained in subsection 3.03(a), Tenant shall pay, as Additional
Rent all Prime Lease Rent (hereinafter defined). Tenant shall be responsible for directly paying
to the applicable Prime Landlord, during the Lease Term, the Prime Lease Rent, and shall indemnify
Landlord from any liability, cost or expense incurred in connection with the Prime Lease. Landlord
shall indemnify Tenant for any actual cost or expense incurred by Tenant (including any lost income
for the applicable Demised Property but excluding any consequential or punitive damages) as a
result of any breach by Landlord under the Prime Lease provided that such breach was not caused by
Tenant or any breach under the Lease by Tenant. Tenant shall promptly send to Landlord any notices
that Tenant receives from any Prime Landlord. The termination or expiration of a Prime Lease shall
not result in any diminution of

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Base Rent due hereunder or any other modification of this Lease. “Prime Lease Rent”
shall mean, for all of the Demised Properties, collectively (i) all Prime Lease Base Rent and (ii)
all Prime Lease Additional Rent. The term Prime Lease Rent may individually refer only to the
amounts required to be paid under a specific Prime Lease if the context so indicates; “Prime
Lease Additional Rent” shall mean, for all of the Demised Properties, collectively any monetary
obligation of Landlord under any Prime Lease (including any percentage rent obligations
thereunder), other than the Prime Lease Base Rent, but including any indemnity obligations of the
“tenant” thereunder. The term Prime Lease Additional Rent may individually refer only to the
amounts required to be paid under a specific Prime Lease if the context so indicates; and
“Prime Lease Base Rent” shall mean, for all of the Demised Properties, collectively any
monthly scheduled “base rent” or “fixed rent” payments required to be paid under the terms of all
of the Prime Leases. The term Prime Lease Base Rent may individually refer only to the amounts
required to be paid under a specific Prime Lease if the context so indicates.]

ARTICLE IV

USE

     Section 4.01 Tenant may use the Demised Properties to operate a RYAN’S STEAKHOUSE restaurant,
FIRE MOUNTAIN STEAKHOUSE restaurant, OLD COUNTRY BUFFET restaurant, HOMETOWN BUFFET restaurant,
COUNTRY BUFFET restaurant, JJ NORTH restaurant, or another brand reasonably acceptable to Landlord,
including without limitation, a brand newly acquired or created by Tenant under which at least 50
separate locations utilize as their principal identification (each a “Permitted Restaurant
Brand” and collectively, the “Permitted Restaurant Brands”), and for no other purpose
without the prior written consent of Landlord, which approval may be granted or withheld in the
commercially reasonable discretion of Landlord and shall not be unreasonably conditioned or
delayed. Notwithstanding any other provision of this Article, Tenant shall not use, or suffer or
permit any person or entity to use, the Demised Properties or any portion thereof for any purpose
in violation of any applicable law, ordinance or regulation applicable to the Demised Properties or
in violation of any covenants or restrictions of record [ADDITIONAL LANGUAGE FOR GROUND LEASE
MASTER LEASES—or in violation of the Prime Lease]. From the Commencement Date and thereafter
throughout the Lease Term, Tenant shall conduct its business in a commercially reasonable and
reputable manner with respect to each of the Demised Properties and in compliance with the
operations covenant contained in Section 4.02 and otherwise in compliance with the terms and
provisions of this Lease. The character of the occupancy of the Demised Properties is an
additional consideration and a material inducement for the granting of this Lease by Landlord to
Tenant.

     Section 4.02 (a) Except as hereinafter provided, and subject to applicable governmental laws
and ordinances, Tenant shall open and operate a Permitted Restaurant Brand at each of the Demised
Properties during all hours and days that are customary for similarly situated sites of the
applicable Permitted Restaurant Brand. This covenant of continuous operation is an additional
consideration and a material inducement for Landlord to enter into this Lease. Notwithstanding the
foregoing, after eighteen (18) months following the Commencement Date, and subject to compliance
with applicable legal requirements and the requirements

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contained in the Diligence Matters (as herein defined), Tenant may cease operations at up to
10% of the Demised Properties under the Lease (including all Demised Properties subleased or
transferred by Landlord in accordance with Section 39.01) (each a “Dark Property”) provided
that (i) such ceasing of operations does not trigger a right of any third party to purchase any
Demised Property (or any portion thereof) [FOR GROUND LEASED PROPERTIES- or violate any Prime
Lease] and (ii) Tenant shall commence actively marketing a sublease for the Dark Property
(including, without limitation listing with a local broker that specializes in restaurant
properties) within the first twelve (12) months after Tenant has ceased operations at such Dark
Property, and thereafter shall diligently continue to actively market a sublease for such Dark
Property. Tenant shall provide Landlord written evidence reasonably satisfactory to Landlord
demonstrating Tenant’s marketing efforts, including, without limitation, a copy of the listing
agreement Tenant entered into with a local broker to market such Dark Property. If Tenant fails to
commence and thereafter diligently continue to market such Dark Property within such twelve (12)
month period, the Landlord shall have the right (but not the obligation) to actively market a
sublease for such Dark Property.

          (b) If Tenant has failed to sublet such Dark Property (pursuant to a sublease in compliance
with Article XXV of this Lease) within eighteen (18) months after Tenant has ceased operations at
such Dark Property, Landlord shall have the right to terminate the Lease with respect to such Dark
Property. Any sale of any such Dark Property and any reletting of any such Dark Property shall be
in Landlord’s sole and absolute discretion. Upon any such termination by Landlord, the Base Rent
shall be reduced by an amount equal to (i) the product of (A) fifty percent (50%) of the Net
Proceeds Sales Amount (as defined below) received by Landlord following any sale of such Dark
Property multiplied by (B) 0.667 percent (0.667%) (such product, the “Dark Property Rent
Reduction”), provided, however, that in no event shall the Dark Property Rent Reduction exceed
Tenant’s allocated base rent of such Demised Property as set forth on Tenant’s books and records;
or (ii) fifty percent (50%) of the Monthly Net Proceeds Lease Amount (as defined below) received by
Landlord following the reletting of such Dark Property. Tenant shall have no right to discontinue
operations at any time during which an Event of Default is continuing. As used herein, “Net
Proceeds Sales Amount” shall mean the sales price for the applicable Dark Property less all
reasonable and customary expenses of Landlord in connection with the sale of such Dark Property in
such location and “Monthly Net Proceeds Lease Amount” shall mean the monthly lease payment
for the applicable Dark Property less all expenses of Landlord in connection with the lease of such
Dark Property.

     Section 4.03 Without limiting any other provision of this Lease, all obligations of Tenant
under this Article IV shall apply also to any subtenant of any of the Demised Properties.

ARTICLE V

ACCEPTANCE OF DEMISED PROPERTIES

          Tenant acknowledges that it has had access to the Demised Properties prior to execution of
this Lease and has had the opportunity to perform all tests, studies, inspections and
investigations (including, without limitation, any investigations regarding zoning and use issues
regarding all Demised Properties) that it desires, and that Tenant is accepting each Demised

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Property in its AS IS condition existing on the date Tenant executes this Lease. Tenant
hereby accepts each Demised Property in its condition as of the date of possession hereunder,
subject to all applicable zoning, municipal, county, and state laws, ordinances, and regulations,
including private easements and restrictions, governing and regulating the use of the Demised
Properties, whether or not of record (collectively, the “Diligence Matters”), and accepts
this Lease subject thereto and to all matters disclosed hereby. Tenant acknowledges that neither
Landlord nor any of Landlord’s Affiliates (as defined below) have made any representation or
warranty as to the suitability of any Demised Property for the conduct of the Tenant’s business and
that Tenant is entering into this Lease solely on the basis of its own investigations and
familiarity with the Demised Properties and not on the basis of any representation, warranty,
covenant, agreement, undertaking, promise, statement, arrangement or understanding by, on behalf
of, or with, Landlord, except as expressly set forth in this Lease.

ARTICLE VI

ALTERATIONS

          Subject to the provisions of this Article VI, Tenant shall have no right to make changes,
alterations or additions (collectively, “Alterations”) to the Buildings on any single Real
Property which involve structural changes or which cost in the aggregate in excess of Four Hundred
Thousand Dollars (US$400,000.00) per Demised Property, which amount shall be adjusted annually in
proportion to increases in the CPI, in each case without prior written consent of Landlord, which
Landlord agrees it will not unreasonably withhold, condition or delay; provided, however, in no
event shall any Alterations be made which, after completion, would: (i) reduce the value of the
Buildings as they existed prior to the time that said Alterations are made; or (ii) adversely
affect the structural integrity of the Buildings. Notwithstanding the foregoing, Tenant shall be
permitted to implement the structural (hoods, vents) and nonstructural Alterations required to
implement ongoing conversion to the grill program already instituted in many OLD COUNTRY BUFFET,
HOMETOWN BUFFET or RYAN’S STEAKHOUSE restaurants provided such Alterations do not adversely affect
the structural integrity of the Buildings. Any and all Alterations made by Tenant shall be at
Tenant’s sole cost and expense. Prior to the commencement of construction, including Alterations
which cost less than US$400,000.00 per Demised Property, which amount shall be adjusted annually in
proportion to increases in the CPI (but excluding non-structural Alterations costing less
US$250,000.00 (which amount shall be adjusted annually in proportion to increases in the CPI) in
the aggregate per Demised Property, minor maintenance or repair projects and cosmetic refresh
projects involving only painting, carpeting, floor covering and installation of moveable
replacement Restaurant Equipment (collectively, a “Minor Project”)), Tenant shall deliver
promptly to Landlord detailed cost estimates for any such proposed Alterations, as well as all
drawings, plans and other information regarding such Alterations (such estimates, drawings, plans
and other information are collectively referred to herein as the “Alteration Information”).
Landlord’s review and/or approval (if required) of any Alteration Information shall in no event
constitute any representation or warranty of Landlord regarding (x) the compliance of any
Alteration Information with any governmental or legal requirements, (y) the presence or absence of
any defects in any Alteration Information, or (z) the safety or quality of any of the Alterations
constructed in accordance with any plans or other Alteration Information. Landlord’s review

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and/or approval of any of the Alteration Information shall not preclude recovery by Landlord
against Tenant based upon the Alterations, the Alteration Information, or any defects therein. In
making any and all Alterations, Tenant also shall comply with all of the following conditions:

          (a) No Alterations shall be undertaken until Tenant shall have (i) procured and paid for, so
far as the same may be required, all necessary permits and authorizations of all governmental
authorities having jurisdiction over such Alterations, and (ii) except for Minor Projects,
delivered to Landlord at least fifteen (15) days prior to commencing any such Alterations written
evidence acceptable to Landlord, in its commercially reasonable discretion, of all such permits and
authorizations. Landlord shall, to the extent necessary (but at no cost, expense, or risk of loss
to Landlord), join in the application for such permits or authorizations whenever necessary,
promptly upon written request of Tenant.

          (b) Any and all structural Alterations of the Building shall be performed under the
supervision of an architect and/or structural engineer.

          (c) Except for Minor Projects, Tenant shall notify Landlord at least fifteen (15) days prior
to commencing any Alterations so as to permit, and Tenant shall permit, Landlord access to the
relevant Demised Property(ies) in order to post and keep posted thereon such notice(s) as may be
provided or required by applicable law to disclaim responsibility for any construction on the
relevant Demised Property(ies). Landlord may deliver to Tenant written requests from time to time,
not more than once in any thirty (30) day period, for information regarding any Alterations that
that Tenant has then undertaken. Tenant shall respond in good faith with all information
reasonably requested by Landlord within 5 days after receipt of Landlord’s written request.

          (d) Any and all Alterations shall be conducted and completed in a commercially reasonable time
period (subject to the terms of Article XVII), in a good and workmanlike manner, and in compliance
with all applicable laws, municipal ordinances, building codes and permits, and requirements of all
governmental authorities having jurisdiction over the relevant Demised Property(ies), and of the
local Board of Fire Underwriters, if any; and, upon completion of any and all Alterations, Tenant
shall obtain and deliver to Landlord a copy of the amended certificate of occupancy for the
relevant Demised Property(ies), if required under applicable law or by governmental authority. To
the extent reasonably practicable, any and all Alterations shall be made and conducted so as not to
disrupt Tenant’s business.

          (e) The cost of any and all Alterations shall be promptly paid by Tenant so that the Demised
Properties at all times shall be free of any and all liens for labor and/or materials supplied for
any Alterations subject to the next succeeding sentence. In the event any such lien shall be
filed, Tenant shall, within ten (10) days after receipt of notice of such lien, deliver written
notice to Landlord thereof, and Tenant shall, within thirty (30) days after receipt of notice of
such lien, discharge the same by bond, title indemnity or payment of the amount due the lien
claimant. However, Tenant may in good faith contest such lien provided that within such thirty
(30) day period Tenant provides Landlord with a surety bond, title indemnity or other form of
security reasonably acceptable to Landlord, protecting against said lien. Tenant shall provide
Landlord promptly with evidence satisfactory to Landlord that all contractors,

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subcontractors or materialmen have been paid in full with respect to such Alterations and that
their lien rights have been waived or released. In the event Tenant fails to either discharge such
lien or protect against such lien in accordance with the foregoing, then Landlord shall have the
option (but not the obligation) to pay such lien or post a bond to protect against such lien and
pass through such costs to Tenant as Additional Rent.

ARTICLE VII

REPAIRS AND MAINTENANCE

          Except as otherwise provided in this Article, Tenant, at its sole cost and expense, shall
maintain each of the Demised Properties and each part thereof, structural and non-structural, in
good order and condition, ordinary wear and tear and damage by casualty and condemnation excepted
(such obligations shall include, without limitation, the obligation to maintain all areas outside
of the Buildings (including all sidewalks, driveways, landscaping, trash enclosures, and trash
compacting and loading areas on the Demised Properties), in a neat and clean condition, and
ensuring that debris from the operation of each restaurant on the Demised Properties are cleaned on
a regular basis) and, subject to the terms and conditions of Article VI, shall make any necessary
Repairs thereto, interior and exterior, whether extraordinary, foreseen or unforeseen but subject
to the casualty and condemnation provisions of this Lease. Tenant and Landlord shall each pay
one-half of the cost and expense of any Repairs requested by Landlord which are performed during
the last year of the Lease Term. When used in this Article VII, the term “Repairs” shall include
all such replacements, renewals, alterations, additions and betterments necessary for Tenant to
properly maintain each Demised Property in good order and condition and in compliance with all
applicable laws. The adequacy of any and all Repairs to the Demised Properties required or
conducted pursuant to this Article VII shall be measured by and meet, at a minimum, all of the
following standards: (1) at least equal in quality of material and workmanship to the condition of
the relevant Demised Property(ies) prior to the need for such Repairs; (2) avoidance of any and all
structural damage or injury to the Building or persons therein; (3) any and all maintenance,
service, operation and repair standards and requirements promulgated by Tenant for its (or its
subsidiaries’ or affiliates’) restaurants; and (4) any and all repairs, replacements or upgrades
necessary to ensure compliance with the rules and regulations of all governmental agencies having
jurisdiction over the relevant Demised Property(ies), including all Environmental Laws (as defined
below) and shall conform to the requirements of any covenants, conditions, restrictions or other
permitted encumbrances which are of record. Landlord shall have no duty whatsoever to maintain,
replace, upgrade, or repair any portion of the Demised Properties, and Tenant hereby expressly
waives the right to make repairs at the expense of Landlord, which right may be provided for in any
law now or hereinafter in effect. If Tenant fails or neglects to commence and diligently proceed
with all necessary Repairs or fulfill its other obligations as set forth above (for the purposes
hereof, application by Tenant for a building permit (if necessary under applicable law to commence
the applicable Repair) shall be deemed to constitute the commencement of a Repair under this
Article) within twenty (20) days after receipt of written notice of the need therefor describing
the applicable Repair or other obligation (a “Repair Notice”) (except in emergency
situations involving risk of further damage to the Demised Properties or injury to persons, in
which case no such grace period shall be applicable and Tenant shall be obligated to commence
immediately all

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necessary Repairs and diligently proceed to complete same), then Landlord or its agents may
enter the Demised Properties for the purpose of making such Repairs or fulfilling those obligations
(with Landlord making commercially reasonable efforts not to unreasonably interfere with Tenant’s
business operations). All commercially reasonable out of pocket costs and expenses incurred as a
consequence of such Landlord’s action shall be paid by Tenant to Landlord within twenty (20) days
after Landlord delivers to Tenant copies of invoices for such Repairs or other obligations. These
invoices shall be prima facie evidence of the payment of the charges to be paid by Tenant.

ARTICLE VIII

COMPLIANCE WITH LAW

          Tenant shall, throughout the Lease Term, at its sole cost and expense, comply with all laws
and regulations of federal, state, municipal and local governments, departments, commissions and
boards pursuant to law, or directives or orders issued pursuant thereto, including without
limitation all Environmental Laws and the Americans With Disabilities Act, with respect to,
regarding, or pertaining to the Demised Properties, in each case whether now existing or hereafter
enacted. [ADDITIONAL LANGUAGE FOR GROUND LEASE MASTER LEASES— In addition, Tenant shall throughout
the Lease Term, at its sole cost and expense, comply with the Prime Leases and all applicable laws
and regulations of federal, state, municipal and local governments, departments, commissions and
boards pursuant to law, or directives or orders issued pursuant to the Prime Leases.]

ARTICLE IX

QUIET ENJOYMENT SUBJECT TO DILIGENCE MATTERS

          From and after the Commencement Date until the expiration or termination of the Lease Term,
and provided no Event of Default has occurred and is continuing, Tenant shall have quiet enjoyment
of the Demised Properties, subject however, to all Diligence Matters, which shall have priority
over the interest of Tenant in the Lease and its leasehold interest in the Demised Properties.

ARTICLE X

DISCLAIMER AND INDEMNITY

     Section 10.01 As used in this Lease, (x) “Landlord Parties” means, collectively,
Landlord, Landlord’s Affiliates, Landlord’s Lenders and any Fee Mortgagee; (y) “Landlord’s
Affiliates” means Landlord’s members, partners, officers, directors, shareholders, employees,
or any person or entity that directly or indirectly through one or more intermediaries controls, is
controlled by, or is under common control with Landlord, including without limitation, Fortress
Investment Group, LLC, a Delaware limited liability company; Fortress Credit Opportunities Fund I
LP, a Delaware limited partnership; Fortress Credit Corp., a Delaware corporation; Drawbridge
Special Opportunities Fund LP, a Delaware limited partnership; Fortress Realty

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Investments LLC, a Delaware limited liability company, Fortress Realty Management, a Delaware
limited liability company; FIGRYAN Holdings LLC, a Delaware limited liability company (for purposes
of this definition, the term “control,” “controlled by” or “under common control with” means the
power, direct or indirect, to direct or cause the direction of the management and policies of
Landlord, whether through the ownership of voting stock, by contract, as trustee or executor, or
otherwise); and (z) “Landlord’s Lenders” means any persons or entities providing financing
or refinancing to Landlord which is secured by a mortgage against any Demised Property or any
secured mezzanine lender in the capital structure of any direct or indirect owner in Landlord. To
the extent not prohibited by law, none of the Landlord Parties shall be liable, under any
circumstances, for any loss, injury, death or damage to person or property (including but not
limited to the business or any loss of income or profit therefrom) of Tenant, Tenant’s members,
officers, directors, shareholders, agents, employees, contractors, customers, invitees, or any
other person in or about the Demised Properties, whether the same are caused by (a) fire,
explosion, falling plaster, steam, dampness, electricity, gas, water, rain; or (b) breakage,
leakage or other defects of sprinklers, wires, appliances, plumbing fixtures, water or gas pipes,
roof, air conditioning, lighting fixtures, street improvements, or subsurface improvements; or (c)
theft, acts of God, acts of the public enemy, riot, strike, insurrection, civil unrest, war, court
order, requisition or order of governmental body or authority; or (d) any act or omission of any
other occupant of the Demised Properties; or (e) operations in construction of any private, public
or quasi-public work; or (f) any other cause, including damage or injury which arises from the
condition of the Demised Properties, from occupants of adjacent property, from the public, or from
any other sources or places, and regardless of whether the cause of such damage or injury or the
means of repairing the same are inaccessible to Tenant, or which may arise through repair,
alteration or maintenance of any part of the Demised Properties or failure to make any such repair,
from any condition or defect in, on or about the Demised Properties including any
“Environmental Conditions” (as defined in Article XXXVII) or the presence of any mold or
any “Hazardous Materials” (as defined in Article XXXVII) (other than known environmental
problems specifically identified in the environmental site reports described on Schedule 2 (the
“Environmental Reports”)), or from any other condition or cause whatsoever; provided,
however, that the foregoing release set forth in this Section 10.01 shall not be applicable to any
claim against a Landlord Party to the extent, and only to the extent, that such claim is
attributable to the gross negligence or willful misconduct of such Landlord Party, as determined by
a final nonappealable judgment (or by a judgment which such Landlord Party elects not to appeal) by
a court of competent jurisdiction.

     Section 10.02 In addition to any and all other obligations of Tenant under this Lease
(including without limitation under any indemnity or similar provision set forth herein), to the
extent permitted by law, Tenant hereby fully and forever releases, discharges, acquits,
indemnifies, protects, and agrees to defend (with counsel selected by Tenant and approved by
Landlord (or Landlord’s Lenders), such approval not to be unreasonably withheld, delayed or
conditioned) and hold all Landlord Parties wholly free and harmless of, from and against any and
all losses, claims, demands, actions, causes of action, settlements, obligations, duties,
indebtedness, debts, controversies, remedies, choses in action, liabilities, costs, penalties,
fines, damages, injury, judgments, forfeiture, or expenses (including without limitation reasonable
attorneys’, consultant, testing and investigation and expert fees and court costs), whether known

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or unknown, whether liquidated or unliquidated: (a) arising out of or in any way related to
or resulting directly or indirectly from: (i) the use, occupancy or activities of Tenant, its
subtenants, agents, employees, contractors or invitees in or about the Demised Properties; (ii) any
failure on the part of Tenant to comply with any applicable law, code or regulation, including
without limitation all Environmental Laws; (iii) any Default or Event of Default under this Lease
or any breach or default by Tenant under any other Transaction Document (as defined below)
(including without limitation as a result of any termination by Landlord, following an Event of
Default, of any sublease, license, concession, or other consensual arrangement for possession
entered into by Tenant and affecting any of the Demised Properties pursuant to Section 16.07); (iv)
any other loss, injury or damage described in Section 10.01 above; (v) in connection with mold at
any Demised Property (other than known mold problems specifically identified in the Environmental
Reports); (vi) work or labor performed, materials or supplies furnished to or at the request of
Tenant or in connection with obligations incurred by or performance of any work done for the
account of Tenant in, on or about the Demised Properties; and (b) whether heretofore now existing
or hereafter arising out of or in any way related to or resulting directly or indirectly from the
presence or “Release” (as defined in Article XXXVII) at, on, under, to or from the Demised
Properties of Hazardous Materials (other than known environmental problems specifically identified
in the Environmental Reports). All of the personal or any other property of Tenant kept or stored
at, on or about the Demised Properties shall be kept or stored at the sole risk of Tenant. Without
limiting the foregoing, Tenant shall pay on demand all fees and costs of Landlord (including,
without limitation, attorneys’ fees and costs) in connection with any enforcement by Landlord of
the terms of this Lease and any amendment to this Lease requested by Tenant. Notwithstanding the
foregoing, the indemnity set forth in this Section 10.02 shall not be applicable to any claim
against any Landlord Party to the extent, and only to the extent, such claim is attributable to the
gross negligence or willful misconduct of such Landlord Party, as determined by a final
nonappealable judgment (or by a judgment which such Landlord Party elects not to appeal) by a court
of competent jurisdiction. As used herein, “Transactional Documents” means, collectively, this
Lease, the Purchase and Sale Agreement and Escrow Instructions between Landlord and Tenant, the
Guaranty, the Deeds executed by Tenant in favor of Landlord relating to the Demised Properties and
the Estoppel Certificates executed by Tenant in favor of Landlord relating to the Demised
Properties, each of which are dated of even date herewith, and any other agreements entered into by
and between Landlord and Tenant regarding any of the foregoing or the Demised Properties.

     Section 10.03 Landlord and Tenant each (a) represent to the other party that such representing
party has dealt with no broker or brokers in connection with the negotiation, execution and
delivery of this Lease and (b) agrees to indemnify, defend, protect (with counsel selected by the
other party) and holds such other party wholly free and harmless of, from and against any and all
claims or demands for any and all brokerage commissions and/or finder’s fees due or alleged to be
due as a result of any agreement or purported agreement made by such indemnifying party.

     Section 10.04 The provisions of this Article X shall survive the expiration or sooner
termination of this Lease. Tenant hereby waives the provisions of any applicable laws restricting
the release of claims, or extent of release of claims, which Tenant does not know or suspect to
exist at the time of release, which, if known, would have materially affected Tenant’s decision to

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agree to this release. In this regard, Tenant hereby agrees, represents, and warrants to
Landlord that Tenant realizes and acknowledges that factual matters now unknown to Tenant may
hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs,
losses and expenses which are presently unknown, unanticipated and unsuspected, and Tenant further
agrees, represents and warrants that the release provided hereunder has been negotiated and agreed
upon in light of that realization and that Tenant nevertheless hereby intends to release, discharge
and acquit the parties set forth herein above from any such unknown causes of action, claims,
demands, debts, controversies, damages, costs, losses and expenses which are in any manner set
forth in or related to this Lease, the Demised Properties and all dealings in connection therewith.

ARTICLE XI

INSURANCE

     Section 11.01 INTENTIONALLY DELETED.

     Section 11.02 As of the Commencement Date and throughout the Lease Term, Tenant shall
maintain, with financially sound and reputable insurers (as further described in Section 11.03),
public liability and other types of insurance with respect to its business and each Real Property
(including all Buildings now existing or hereafter erected thereon) against all losses, hazards,
casualties, liabilities and contingencies as customarily carried or maintained by persons of
established reputation engaged in similar businesses. Without limitation of the foregoing, Tenant
shall maintain or cause to be maintained policies of insurance with respect to each Real Property
in the following amounts and covering the following risks:

          (a) Commercial property coverage for one hundred percent (100%) insurable guaranteed 100%
replacement value with no co-insurance penalty (A) “Special Form Causes of Loss” coverage (as such
term is used in the insurance industry), at least as broad as ISO Special Form Causes of Loss,
CP1030, including coverage for glass breakage, vandalism and malicious mischief, with any
deductible (other than related to the property insurance requirement pursuant to Sections 11.02(d)
and 11.02(f) below) in excess of One Hundred Thousand Dollars (US$100,000) to be approved by
Landlord and, (B) “Ordinance and Law Coverage” with limits of not less than the building value for
Coverage A (loss to the undamaged portion of the Buildings), limits of not less than fifteen
percent (15%) of the building value of the Buildings for Coverage B (Demolition Cost Coverage), and
limits not less than fifteen percent (15%) of the value of the Buildings for Coverage C (Increased
Cost of Construction Coverage).

          (b) Commercial General Liability insurance including Product Liability and Liquor Liability
(if alcohol is served) covering each Demised Property at least as broad as the most commonly
available ISO Commercial General Liability policy form CG0001 (occurrence basis) covering bodily
injury, property damage and personal and advertising injury, for the joint benefit of and insuring
Tenant and Landlord as set forth below, with limits not less than One Million Dollars
(US$1,000,000) per occurrence, with a general aggregate of not less than One Million Dollars
(US$1,000,000), with any deductible or self-insured retention in excess of Five Hundred Thousand
Dollars (US$500,000) to be approved by Landlord, and a “following form”

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Umbrella Liability policy or Excess Liability policy to include Product Liability and Liquor
Liability (if alcohol is served), in an amount such that the total coverage under both the
aforesaid Commercial General Liability policy and the Umbrella Liability policy or Excess Liability
policy is not less than Five Million Dollars (US$5,000,000) per occurrence.

          (c) Worker’s compensation insurance covering all persons employed by Tenant at each Demised
Property in connection with any work done on or about any of the Demised Property for which claims
for death or bodily injury could be asserted against Landlord, Tenant or any of the Demised
Property.

          (d) In the event a Demised Property is located in an area identified by the National Flood
Insurance Program as an area having “special flood hazards” (zones beginning with “A” or “V”)
Tenant shall maintain throughout the term of this Lease and any extension thereof, flood insurance
for the full replacement value of such Demised Property, with any deductible in excess of the
greater of (i) Two Hundred Fifty Thousand Dollars (US$250,000.00) or five percent (5%) of property
value to be approved by Landlord.

          (e) Insurance against loss or damage from explosion of any steam or pressure boilers or
similar apparatus located in or about the Buildings with limits of not less than Ten Million
Dollars (US$10,000,000) for consequential damages, covering the Buildings and Fixtures (excluding
footings and foundations and other parts of the Buildings which are not insurable), with any
deductible in excess of One Hundred Thousand Dollars (US$100,000) to be approved by Landlord.

          (f) In the event any Demised Property is located in a major earthquake damage area and
earthquake insurance is available, Tenant shall maintain throughout the Term applicable to such
Demised Property earthquake insurance for the full replacement value of the Demised Property, with
any deductible in excess of the greater of (i) Two Hundred Fifty Thousand Dollars (US$250,000) or
(ii) five percent (5%) of property value to be approved by Landlord.

          (g) Such additional and/or other insurance with respect to the Buildings located on the
applicable Demised Property and in such amounts as at the time is customarily carried by prudent
owners or tenants with respect to improvements and equipment similar in character, location and use
and occupancy to the Buildings located on each of the Demised Property.

          (h) [IF GROUND LEASE PROPERTIES- All insurance policies, endorsements and coverage’s required
for each of the Demised Properties under the terms of the applicable Prime Lease.]

     Section 11.03 Each carrier providing any insurance, or portion thereof, required by this
Article shall have the legal right to conduct its business in the jurisdiction in which the
applicable Real Property is located, and shall have a claims paying ability rating by S&P of not
less than “A-” and an A.M. Best Company, Inc. rating of not less than A and financial size category
of not less than X. Tenant shall cause all insurance that it is required to maintain

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hereunder to contain a mortgagee clause and loss payee clause in favor of Landlord’s Lender in
accordance with this Section to be payable to Landlord’s Lender as a mortgagee and not as a
co-insured, as its interest may appear.

     Section 11.04 All insurance policies required to be maintained by Tenant hereunder and
renewals thereof (a) shall be in a form reasonably acceptable to Landlord, (b) shall provide for a
term of not less than one year, (c) if the same are insurance policies covering any property (i)
shall include a standard non-contributory mortgagee endorsement or its equivalent in favor of and
in form acceptable to Landlord’s Lender, (ii) shall contain an agreed value clause updated
periodically and (iii) shall designate Landlord’s Lender as “mortgagee and loss payee” as their
interest may appear. In addition, all property insurance policies (except for flood and earthquake
limits) must either automatically reinstate after each loss or Tenant must otherwise provide for
uninterrupted coverage. Furthermore, all property insurance policies shall reflect that Landlord,
Landlord’s Lender [Drawbridge Special Opportunities Fund LP, a Delaware limited partnership
(“Drawbridge”); Fortress Realty Investments LLC, a Delaware limited liability company
(“Fortress”); and Fortress Realty Management, a Delaware limited liability company (the
“Landlord Insured Parties”) are loss payees to the extent that their respective interests appear.
With respect to commercial general liability and umbrella policies, the Landlord Insured Parties
shall be named as additional insureds with respect to the leased Demised Properties. The Landlord
Insured Parties shall be provided with evidence of property insurance coverage consistent with this
Article XI utilizing an Accord form 27, 28 or equivalent, confirming the loss payee status of the
Landlord Insured Parties. The form shall also reflect any business interruption coverage maintained
voluntarily by Tenant. With respect to liability and umbrella insurance, the Landlord Insured
Parties shall be provided with evidence of coverage utilizing an Accord form 25 or equivalent,
reflecting that the Landlord Insured Parties are additional insureds with respect to the leased
locations. This form shall also confirm the existence of workers compensation insurance including
a waiver of subrogation against Landlord.

     Section 11.05 Any insurance provided for in this Article may be effected by a blanket policy
or policies of insurance, or under so-called “all-risk” or “multi-peril” insurance policies,
provided that the amount of the total insurance available with respect to the Demised Properties
shall provide coverage and indemnity at least equivalent to separate policies in the amounts herein
required, and provided further that in other respects, any such policy or policies shall comply
with the provisions of this Article. Any increased coverage provided by individual or blanket
policies shall be satisfactory, provided the aggregate liability limits covering the Demised
Properties under such policies shall otherwise comply with the provisions of this Article.

     Section 11.06 Every property insurance policy carried by either party with respect to the
Demised Properties shall (if it can be so written) include provisions waiving the insurer’s
subrogation rights against the other party to the extent such rights can be waived by the insured
prior to the occurrence of damage or loss. Subject to the above, each party hereby waives any
rights of recovery against the other party for any property direct damage or associated
consequential loss covered by said policies (or by policies required to be carried hereunder by
such party) whether or not such damage or loss shall have been caused by any acts or omissions of
the other party, but such waiver shall operate only to the extent such waiving party is so

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protected by such insurance coverage (or would have been protected by maintaining all policies
required to be carried hereunder by such party).

     Section 11.07 All insurance policies required under this Article XI shall provide that the
beneficial interest of Landlord in such policies shall be fully transferable. In the event Tenant
fails to procure or maintain any policy of insurance required under Article XI, or if the insurance
company or coverages provided fail to meet the requirements contained in this Article XI, Landlord
may, at its option, purchase such insurance and charge Tenant all costs and expenses incurred in
procuring and maintaining such insurance.

     Section 11.08 Tenant shall provide to Landlord, beginning on the Commencement Date and
continuing annually thereafter with paid receipts (or other evidence reasonably requested by
Landlord) from all applicable insurance carriers evidencing the payment of premiums or accompanied
by other evidence of such payment (e.g., receipts, canceled checks) reasonably satisfactory to
Landlord. Notwithstanding the foregoing, upon the occurrence of both of the following events, in
lieu of payment directly to the insurance carriers, Tenant shall pay to Landlord an amount when
added to the monthly payments due under this Section 11.08 shall be sufficient to pay the insurance
premiums next coming due (the “Insurance Premium Pass-Throughs”) on the Payment Date
immediately following both of the following events: (A) delivery to Tenant of a written request
therefor from Landlord, and (B) the existence of any default or breach of this subsection 11.08 by
Tenant, or any Event of Default under any provision in this Lease (the foregoing clause (B) may be
hereinafter referred to as an “Insurance Premium Pass-Throughs Trigger”). On every Payment
Date thereafter, Tenant shall pay to Landlord an amount equal the greater of (x) one-twelfth of the
amount of insurance premiums of Tenant’s blanket insurance policies allocated to the Demised
Properties that Landlord reasonably estimates will be payable during the next ensuing twelve (12)
months, or (y) one-twelfth of the amount that Landlord reasonably estimates will be payable during
the next ensuing twelve (12) months to purchase insurance policies satisfying the requirements of
this Article XI. Funds in the Insurance Premium Pass-Throughs shall be used for payment of the
insurance premium next coming due. Following the imposition of the Insurance Premium
Pass-Throughs, in the event Tenant completes a twelve (12) month consecutive period without the
occurrence of an Insurance Premium Pass-Throughs Trigger, then following written request by
Tenant’s Lender shall disburse any funds in the Insurance Premium Pass-Throughs to Tenant and
Tenant shall no longer be obligated to make the monthly payments of insurance premiums to Landlord
in lieu of the applicable insurance carrier until the occurrence of an Insurance Premium
Pass-Throughs Trigger.

ARTICLE XII

DAMAGE OR DESTRUCTION

     Section 12.01 If at any time during the Lease Term, any Demised Properties or any part thereof
shall be damaged or destroyed by fire or other casualty of any kind or nature, Tenant shall
promptly apply for all necessary permits, but in any event not later than thirty (30) days after
the first date of such damage or destruction, and upon issuance of such permits thereafter
diligently proceed to repair, replace or rebuild such Demised Properties as nearly as possible to

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their condition and character immediately prior to such damage with such variations and
Alterations as may be permitted under (and subject to the provisions of) Article VI (the
“Restoration Work”). Notwithstanding the foregoing, if Tenant has not exercised its
renewal option, Tenant shall have no obligation to repair, replace or rebuild such Demised
Properties during the last two (2) years of the Lease Term, so long as (i) no Event of Default
exists, including without limitation any Event of Default under the insurance provisions, (ii)
Landlord shall have received any and all insurance proceeds relating to such casualty and (iii)
Tenant shall have paid the deductible for the insurance policy covering such casualty.

     Section 12.02 All property and casualty insurance proceeds payable to Landlord or Tenant
(except (i) insurance proceeds payable to Tenant on account of Tenant’s trade fixtures, Restaurant
Equipment or inventory; and (ii) insurance proceeds payable from comprehensive general public
liability insurance, or any other liability insurance) at any time as a result of casualty to the
Demised Properties shall be paid to Tenant if less than $100,000 (which amount shall be adjusted
annually in proportion to increases in the CPI), otherwise jointly to Landlord and Tenant for
purposes of payment for the cost of the Restoration Work, except as may be otherwise expressly set
forth herein. Landlord shall make such insurance proceeds available to Tenant based on a
commercially reasonable draw schedule. Landlord and Tenant shall cooperate in order to obtain the
largest possible insurance award lawfully obtainable and shall execute any and all consents and
other instruments and take all other actions necessary or desirable in order to effectuate same and
to cause such proceeds to be paid as hereinbefore provided. The proceeds of any such insurance in
the case of loss shall, to the extent necessary, be used first for the Restoration Work with the
balance, if any, payable to Landlord. If insurance proceeds as a result of a casualty to the
relevant Demised Property(ies) are insufficient to complete the Restoration Work necessary by
reason of such casualty, then Tenant shall be responsible for the payment of such amounts necessary
to complete such work.

     Section 12.03 This Lease shall not be affected in any manner by reason of the total or partial
destruction to any Demised Property or any part thereof and Tenant, notwithstanding any law or
statute, present or future, waives all rights to quit or surrender any Demised Property or any
portion thereof because of the total or partial destruction of any Demised Property (prior to the
expiration of the Lease). Base Rent and Additional Rent required to be paid by Tenant hereunder
shall not abate as a result of any casualty.

ARTICLE XIII

EMINENT DOMAIN

     Section 13.01 Landlord and Tenant hereby agree that in no event shall any taking of any
Demised Property for any public or quasi-public use under any statute or by right of eminent
domain, or by purchase in lieu thereof, in any way relieve Tenant of any obligations under this
Lease (as to the applicable Demised Property or otherwise) except as explicitly provided in this
Article.

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     Section 13.02 The parties hereto agree to cooperate in applying for and in prosecuting any
claim for any taking regarding any Demised Property and further agree that the aggregate net award
shall be distributed to Landlord for the condemned Demised Property.

     Section 13.03 In case of a taking of any portion of any Demised Property (except in the event
of a total taking of an individual Demised Property), Tenant at its own expense shall proceed with
diligence (subject to reasonable time periods for purposes of adjustment of any award and
unavoidable delays) to repair or reconstruct (or cause to be repaired and reconstructed) the
affected Building to a complete architectural unit (all such repair, reconstruction and work being
referred to in this Article as “Reconstruction Work”). Landlord shall make such
condemnation award available to Tenant based on a commercially reasonable draw schedule for
Reconstruction Work up to and not exceeding the net compensation amount realized by Landlord as a
result of such taking (i.e., the gross amount of the compensation received by Landlord from the
taking authority less all costs and expenses incurred by Landlord in pursuing, prosecuting, and/or
recovering its claim to such award). All Reconstruction Work shall be performed in accordance with
the standards and requirements for Alterations set forth in Article VI.

     Section 13.04 In case of a taking of any portion of any Demised Property or a total taking of
any Demised Property, the Base Rent payable hereunder regarding the applicable Demised Property
shall be equitably reduced by a percentage equal to the percentage of the diminution in value of
the Demised Property, as reasonably determined by Tenant and Landlord (and Base Rent shall not be
reduced until such determination of the equitable reduction in Base Rent, or until determination by
an arbitration as set forth below), provided, however, that in no event shall such reduction in
Base Rent exceed Tenant’s allocated base rent of such Demised Property as set forth on such
Tenant’s books and records. In determining the equitable reduction in Base Rent, the parties shall
utilize the fair market value of the Demised Property, as of the date of inception of this Lease,
as determined by an MAI Appraiser mutually acceptable to the parties. If the parties fail to agree
on the reduction in Base Rent due to the applicable taking with respect to such Demised Property
within fifteen (15) days after the applicable taking, then either party, by written notice
delivered to the other party (the date when such notice is delivered to the other party is referred
to herein as the “Notice Date”), may cause the following procedure to be utilized in
determining such reduction in Base Rent:

     (1) Submission of Proposed Base Rent Reduction. Within fifteen
(15) days after the Notice Date, each of Landlord and Tenant shall deliver
to the other party its calculation of its proposed equitable reduction in
the Base Rent as a result of the applicable taking (a “Base Rent
Reduction”), which calculation shall include (a) the Base Rent properly
allocated to the applicable Demised Property prior to the taking, (b) the
percentage diminution in value of the Demised Property as a result of the
taking, and (c) the resulting reduction in Base Rent hereunder as a result
of such taking.

     (2) Appointment and Qualifications of Appraiser. Within thirty
(30) days after the Notice Date, Landlord and Tenant shall each appoint

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one licensed real estate appraiser who has been active over the
previous ten-year (10-year) period in the appraisal of single tenant
restaurants within the county in which the applicable Demised Property is
located (each such appraiser chosen pursuant to this subsection (2), an
“Appraiser”). Each of Landlord and Tenant shall notify the other
party, in writing, of its Appraiser (and the business address thereof)
within two (2) business days after the appointment thereof (collectively,
the “Appraiser Appointment Notices”). Each of Landlord and Tenant
agree that any Appraiser may be (but is not required to be) an appraiser who
assisted either party in determining such party’s calculation of the Base
Rent Reduction pursuant to subsection (1), above.

     (3) Appointment of Third Appraiser. If each party appoints an
Appraiser and notifies the other party in accordance with subsection (2),
above, then the two (2) Appraisers shall, within ten (10) days after
delivery of the later of the two Appraiser Appointment Notices, agree on and
appoint a third Appraiser (whom shall be a licensed real estate appraiser
with all other qualifications for the initial two Appraisers chosen by the
parties as set forth in subsection (2), above) and provide prompt written
notice to Landlord and Tenant of such third Appraiser and the business
address thereof. If the two (2) Appraisers fail to agree on and appoint a
third Appraiser within such ten (10) day period, then either party may elect
to have the third Appraiser selected by the AAA by delivering written notice
thereof to the other party. In such event, the electing party shall
petition the AAA (with a copy to the other party) to so determine the third
Appraiser and the parties shall cooperate reasonably with each other and the
AAA (including, without limitation, by responding promptly to any requests
for information made by the AAA) in connection with such determination. The
decision of the AAA shall be final and conclusive as to the identity of the
third Appraiser.

     (4) Appraisers’ Decision. Within thirty (30) days after the
appointment of the third Appraiser, each of the three (3) Appraisers shall
decide whether the Base Rent Reduction as proposed by Landlord or Tenant
pursuant to subsection (1), above, is closer to the actual Base Rent
Reduction as determined by each such Appraiser. The decision of the
majority of the three (3) Appraisers shall be binding on Landlord and Tenant
(subject to subsection (5), below). The determination of each Appraiser
shall be limited to the sole issue of, and each Appraiser shall have neither
the right nor the power to determine any issue other than, whether the Base
Rent Reduction as proposed by Landlord or Tenant pursuant to subsection (1),
above, is closer to the actual Base Rent Reduction as determined by each
such Appraiser.

     (5) If Only One Appraiser Is Appointed. If either Landlord or
Tenant fails to appoint an Appraiser within thirty (30) days after the

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Tenant Notice Date or fails to deliver an Appraiser Appointment Notice
in accordance with subsection (2), above, and the other party does appoint
an Appraiser within such thirty (30) day period and delivers an Appraiser
Appointment Notice in accordance with subsection (2), above, then the
Appraiser timely appointed by such other party shall reach a decision
regarding whether the Base Rent Reduction as proposed by Landlord or Tenant
pursuant to subsection (1), above, is closer to the actual Base Rent
Reduction as determined by each such Appraiser, and notify Landlord and
Tenant of that decision within thirty (30) days after such Appraiser’s
appointment. In such event, such Appraiser’s decision shall be binding on
Landlord and Tenant.

     (6) Cost of Arbitration. If the Appraisers (or Appraiser,
pursuant to subsection (5), above) determine that Tenant’s proposed Base
Rent Reduction is closer to the actual Base Rent Reduction, then Landlord
shall be deemed the “Losing Party” and Tenant shall be deemed the
“Prevailing Party.” If the Appraisers (or Appraiser, pursuant to subsection
(5), above) determine that Landlord’s proposed Base Rent Reduction is closer
to the actual Base Rent Reduction, then Tenant shall be deemed the “Losing
Party” and Landlord shall be deemed the “Prevailing Party.” Each party
shall initially pay the fees and expenses of its legal counsel, appointed
appraiser, appraisals, one-half of the fees of the third appraiser, and
one-half the fees of the AAA (if applicable), provided, however, that the
Losing Party shall be obligated to reimburse the Prevailing Party for all
costs of the arbitration paid by the Prevailing Party promptly upon the
completion of the arbitration procedure set forth in this Section (including
fees and expenses of the Prevailing Party’s legal counsel, appointed
appraiser, appraisals, and its one-half share of the fees of the third
appraiser, and the AAA (if applicable)).

Notwithstanding the foregoing, in the event of a total taking of a Demised Property, this Lease
will terminate with respect to such Demised Property; and in connection with any condemnation award
received by Landlord in an amount less than US$100,000 (which amount shall be adjusted annually in
proportion to increases in the CPI), Landlord, in its sole discretion, shall either reduce the Base
Rent (a) in accordance with the foregoing appraisal process or (b) by an amount equal to the
product of (1) the actual condemnation award received by Landlord multiplied by (2) 0.667 percent
(0.667%) (such product, the “Casualty Rent Reduction”), provided, however, that in no event shall
the Casualty Rent Reduction exceed Tenant’s allocated base rent of such Demised Property as set
forth on Tenant’s books and records.

     Section 13.05 Any compensation for a temporary taking shall be payable to Tenant without
participation by Landlord, except to the proportionate extent such temporary taking extends beyond
the end of the Lease Term, and there shall be no abatement of Rent as a result of any temporary
taking affecting any of the Demised Properties.

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ARTICLE XIV

PERFORMANCE OF OBLIGATIONS; FINANCIAL COVENANTS OF

TENANT AND GUARANTOR

     Section 14.01 Performance of Obligations.

          (a) Landlord hereby represents, warrants and covenants to Tenant that Landlord has the right
and lawful authority to enter into this Lease and perform Landlord’s obligations hereunder.

          (b) Tenant hereby represents, warrants and covenants to Landlord that Tenant has the right and
lawful authority to enter into this Lease and perform Tenant’s obligations hereunder.

     Section 14.02 Fixed Charge Coverage Ratio. Tenant shall maintain a “Minimum Fixed
Charge Coverage Ratio” (as hereafter defined) as reasonably determined by Landlord and Tenant. As
used in this Section 14.02, (a) “Other Lease” means that certain Master Land and Building
Lease between [FIGRYANF LLC, a Delaware limited liability company/ FIGRYANH LLC, FIGRYANH-1 LLC,
FIGRYANH-2 LLC, FIGRYANH-3 LLC, FIGRYANH-4 LLC, FIGRYANH-5 LLC, FIGRYANH-6 LLC, FIGRYANH-7 LLC,
FIGRYAN-8 LLC, FIGRYANH-9 LLC, FIGRYANH-10 LLC, FIGRYANH-11 LLC, FIGRYANH-12 LLC, FIGRYANH-13 LLC,
FIGRYANH-14 LLC, FIGRYANH-15 LLC, FIGRYANH-16 LLC, each a Delaware limited liability company] (the
“Other Landlord”) and Tenant, dated of even date herewith; (b) each of the terms “Base
Rent,” and “Demised Properties” collectively refer to such term as defined in this Lease and the
Other Lease; (c) references to “Article XIII,” “Article XXVII,” and “Article XXXVIII” are
references to such Articles in this Lease and the Other Lease, (d) “EBITDAR” means the
aggregate earnings, determined in accordance with generally accepted accounting principles,
consistently applied, of the restaurant operations at all Demised Properties, prior to any
deductions for Base Rent, any rent due under any Prime Leases, amortization, depreciation, federal
and state income taxes, interest expense and general and administrative expense; (e) “FCCR”
means the ratio, as of the last day of each Fiscal Quarter, of the EBITDAR for the trailing twelve
(12) month period to the Base Rent and any rent due under any Prime Leases (excluding any capital
expenses) due for the trailing twelve (12) month period; and (f) “Minimum Fixed Charge Coverage
Ratio” means an FCCR of no less than 1.8:1.0 (subject to adjustment as provided in this
Section). FCCR shall be determined on the basis of the Demised Properties actually owned by
Landlord and Other Landlord on the last day of each Fiscal Quarter, and accordingly any Demised
Properties transferred by Landlord or Other Landlord during the trailing twelve (12) month period
shall be excluded from such calculation. Tenant shall deliver to Landlord a compliance
certificate, in form and substance reasonably acceptable to Landlord, within forty-five (45) days
after the last day of each Fiscal Quarter, demonstrating compliance with the Minimum Fixed Charge
Coverage Ratio covenant set forth above, and shall additionally deliver to Landlord, promptly upon
request of Landlord, such financial information of Tenant as Landlord may reasonably request
supporting the statements contained in any such compliance certificate. Notwithstanding any
provision in this Section 14.02 to the contrary, in the event the number of Demised Properties
become less than 85 (and

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thereafter each time the number of Demised Properties is subsequently reduced) due to Landlord
partially assigning its interest in the Lease or the Other Lease with respect to one or more of the
Demised Properties under Article XXXVIII, then Landlord and Tenant agree that the Minimum Fixed
Charge Coverage Ratio shall be automatically adjusted (increased or decreased) so that spread
between the Minimum Fixed Charge Coverage Ratio and the FCCR shall be the same as was the case on
the first day of the Term under this Lease. For example if on the first day of the Term, the FCCR
is 2.2:1 and the Minimum Fixed Charge Coverage Ratio is 1.8:1, then the test is passed by 22%
(i.e., (2.2-1.8)/1.8). Thereafter, if the number of Demised Properties is reduced below 85, and the
FCCR is 2.0:1, then the new Minimum Fixed Charge Coverage Ratio would be 2.0 x .78 (i.e., 1.00-22%,
the original spread), or 1.56:1; provided, however, that (x) in no event shall the Minimum Fixed
Charge Coverage Ratio be reduced due to any transfers by Landlord or Other Landlord if the Demised
Properties so transferred have, in the aggregate, an FCCR less than the FCCR of the Demised
Properties remaining under the Lease and Other Lease following such transfer; (y) notwithstanding
the foregoing provisions of this Section 14.03, if after any transfer of Demised Properties by
Landlord or Other Landlord, the FCCR of the remaining Demised Properties is at or above 2.4:1,
there shall be no adjustment of the Minimum Fixed Charge Coverage Ratio following such transfer
(although any subsequent transfer may result in an adjustment pursuant to the terms of this Section
14.03, subject however to this clause (y)); and (z) the Minimum Fixed Charge Coverage Ratio shall
not be adjusted for any reason other than due to Landlord partially assigning its interest in the
Lease or the Other Lease with respect to one or more of the Demised Properties under Article
XXXVIII. For the avoidance of doubt, and without limiting clause (z) of the immediately preceding
sentence, the Minimum Fixed Charge Coverage Ratio shall not be adjusted by reason of any removal of
any Demised Properties from the Lease or Other Lease due to a total taking of any Demised Property
as provided in Article XIII, or a termination of the Lease or Other Lease with respect to one or
more Demised Properties pursuant to Article XXVII.

     Section 14.03 Books and Records. Tenant shall keep accurate books and records of
account of all of the Demised Properties. Landlord and its duly authorized representatives shall
have the right to examine, copy and audit Tenant’s records and books of account at all reasonable
times during regular business hours. Tenant shall provide, or cause to be provided, to Landlord,
in addition to any other financial statements required under this Lease, the following financial
statements and information, all of which must be prepared in a form reasonably acceptable to
Landlord:

          (i) on the Commencement Date, a proforma balance sheet of Tenant certified to the best
of Tenant’s knowledge by an officer of Tenant to be true, correct, and complete in all
material respects;

          (ii) promptly and in any event within forty-five (45) days after the Commencement Date,
compiled proforma financial statements of Tenant including a balance sheet and statement of
profits and losses certified by an officer of Tenant to be true, correct, and complete in
all material respects;

          (iii) promptly and in any event within ninety (90) days after the end of each Fiscal
Year (as hereinafter defined), (A) financial statements of Tenant as of the end

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of each such Fiscal Year, including a balance sheet and statement of profits and losses
for such Fiscal Year, which statements shall be duly certified by an officer of Tenant to
fairly represent the financial condition of Tenant, as of the date thereof provided, in no
event however, will such information be provided before any applicable SEC 10K filings by
Guarantor are made (provided further, however that in the event that Guarantor fails to file
its SEC 10K within (90) days after any Fiscal Year, Tenant shall be obligated to deliver to
Landlord (1) on or before the ninetieth (90th) day after the end of such Fiscal
Year financial statements of Tenant regarding the fourth Fiscal Quarter of such Fiscal Year,
including a balance sheet and statement of profits and losses for such Fiscal Quarter and
(2) on the date Guarantor files its SEC 10K, the Annual Financial Statements, which
statements referred to in (1) and (2) shall be duly certified by an officer of Tenant to
fairly represent the financial condition of Tenant, as the date thereof);

          (iv) promptly and in any event within forty-five (45) days after the end of each Fiscal
Quarter, for Fiscal Quarters 1-3, (A) quarterly statements of the financial position of
Tenant, including a balance sheet and statement of profits and losses, such quarterly
statements of financial position to be certified by an officer of Tenant to fairly represent
the financial condition of Tenant as of the date thereof; (B) a compliance certificate from
Tenant, in form and substance reasonably acceptable to Landlord, demonstrating compliance
with the requirements set forth in Section 14.02 and such other financial information of
Tenant or the Demised Properties reasonably requested by Landlord supporting the statements
contained in any such compliance certificate; and (C) such other financial information of
Tenant or the Demised Properties reasonably requested by Landlord in form and substance
reasonably acceptable to Landlord;

          (v) promptly and in any event within thirty (30) days after the end of each Fiscal
Month, profit and loss reports and total sales figures in respect of each Demised Property
for the applicable Fiscal Month and the trailing twelve (12) Fiscal Month period (or
trailing thirteen (13) Fiscal Month period, to the extent a twelve (12) Fiscal Month period
does not cover a full year),

          (vi) any financial statements distributed (A) to Credit Suisse as Administrative Agent
pursuant to that certain Credit Agreement dated as of October 30, 2006 (or any successor
lender in connection with successor financing) and (B) in connection with those Senior
Floating Rate Notes due 2013 and Senior Notes due 2014 issued by Buffets, Inc. (or any
successor bond holder in connection with successor bond financing) within five (5) business
days after such distribution; and

          (vii) such other information with respect to the Demised Properties or Tenant that may
be reasonably requested from time to time by Landlord, within a reasonable time after the
applicable request.

               “Fiscal Year” shall mean a fiscal year from approximately July to June. “Fiscal
Quarter” shall mean approximately July through September, approximately October through
December, approximately January through March, and approximately April through June. The last day
of each Fiscal Year is the Wednesday closest to June 30th. “Fiscal Month” shall
mean

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either (A) a calendar month or (B) a reporting period equal to 1/13 of a year, whichever shall then
be used by Tenant in maintaining its books and records.

          Notwithstanding any provision in this Lease to the contrary, for purposes of
delivery of the financial statements and information required to be delivered by Tenant under this
Lease, Landlord agrees that Tenant’s obligations for the delivery thereof shall be satisfied by a
single delivery of such financial statements and information to Drawbridge Special Opportunities
Fund LP, 1345 Avenues of the Americas, 46th Floor, New York, NY 10105, Attention: Constantine M.
Dakolias, CCO and Glenn P. Cummins, CFO with a copy to Fortress Investment Group, 5221 N. O’Connor
Boulevard, Suite 700, Irving, Texas 75039 (collectively “Drawbridge”) and Drawbridge will
make such financial statements and other information available to the Landlord under this Lease;
provided however, if Landlord is no longer an affiliate of Drawbridge, then this provision shall no
longer apply.

          At Landlord’s option, Landlord may request that Tenant deliver a copy of all financial
information delivered to Landlord pursuant to Subsections 14.03(i) though (vii) to
Landlord’s Lender.

          Tenant acknowledges that Landlord must comply with certain financial audit requirements and
Landlord will suffer damages from Tenant’s failure to deliver any of the financial information
required in Subsections 14.03(i) though (v) (the “Key Financial Statements”) as and
when due. If Tenant fails to deliver any Key Financial Statements as and when due, subject to
Force Majeure, Tenant shall pay Landlord a fee equal to US$500 for each missing Key Financial
Statement per each day that Tenant has failed to deliver any such Key Financial Statements (the
“Financial Statements Default Fee”). The Financial Statements Default Fee (y) shall be
immediately due and payable without notice or demand by Landlord and (z) is in addition to, and not
in lieu of, any other remedy of Landlord under this Lease regarding Tenant’s failure to deliver the
Key Financial Statements. Tenant’s payment of the Financial Statements Default Fee does not cure
any Default or Event of Default caused by the failure to deliver any Key Financial Statement in a
timely manner.

ARTICLE XV

INTENTIONALLY DELETED

ARTICLE XVI

DEFAULT

     Section 16.01 Events Of Default. The occurrence of any of the following shall
constitute an event of default under this Lease (“Event of Default”) on the part of Tenant:

          (a) Nonpayment of Base Rent. Failure to pay any installment of Base Rent hereunder
when payment is due. Notwithstanding the foregoing, Tenant shall have one (1) three

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(3) day grace period for payment of one installment of the Base Rent in any twelve (12) month
period during the Lease Term.

          (b) Nonpayment of Additional Rent. Failure to pay any amount of Additional Rent on or
before the date when due and such failure continuing for five (5) days following delivery to Tenant
by Landlord of written notice specifying such failure.

          (c) Insolvency. If at any time during the Lease Term, (i) proceedings in bankruptcy
shall be instituted (voluntarily or involuntarily) by or against Tenant or Buffets, Inc., a
Minnesota corporation (“Guarantor”) that result in the filing of a voluntary petition or
the entry of an order for relief, or (ii) Tenant or Guarantor shall file, or any creditor or other
person shall file against Tenant or Guarantor, any petition in bankruptcy (i.e., seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief)
under the Bankruptcy Code of the United States of America (or under any other present or future
federal or state statute, law or regulation of similar intent or application), and such filing is
not vacated or withdrawn within sixty (60) days thereafter, or (iii) a trustee or receiver shall be
appointed to take possession of any of the Demised Properties, or of all or substantially all of
the business or assets of Tenant or Guarantor, and such appointment is not vacated or withdrawn and
possession restored to Tenant within sixty (60) days thereafter, or (iv) a general assignment or
arrangement is made by Tenant or Guarantor for the benefit of creditors, or (v) any sheriff,
marshal, constable or other duly-constituted public official takes possession of any Demised
Property, or of all or substantially all of the business or assets of Tenant or Guarantor by
authority of any attachment, execution, or other judicial seizure proceedings, and if such
attachment or other seizure remains undismissed or undischarged for a period of sixty (60) days
after the levy thereof, or (vi) Tenant or Guarantor shall admit in writing Tenant’s or Guarantor’s
inability to pay its debts as they become due; or (vii) Tenant or Guarantor files an answer
admitting or failing timely to contest a material allegation of a petition filed against Tenant or
Guarantor, respectively, in any such proceeding; or (viii) within ninety (90) days after the
commencement of any proceeding against Tenant or Guarantor seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any present or future
statute, law or regulation, such proceeding shall not have been dismissed. In the event that under
applicable law the trustee in bankruptcy or Tenant has the right to affirm this Lease and continue
to perform the obligations of Tenant hereunder, such trustee or Tenant shall, within such time
period as may be permitted by the bankruptcy court having jurisdiction, cure all defaults of Tenant
hereunder outstanding as of the date of the affirmance of this Lease and provide to Landlord such
adequate assurances as may be necessary to ensure Landlord of the continued performance of Tenant’s
obligations under this Lease.

          (d) Misrepresentation. The discovery by Landlord that any representation, warranty or
financial statement given to Landlord by Tenant or Guarantor, or any affiliate of Tenant or
Guarantor, was intentionally materially false or misleading when given, including without
limitation as set forth in any Transaction Document.

          (e) Insurance; Patriot Act. Any breach by Tenant under Article XI or Article XLII,
provided however, any breach by Tenant under Article XI shall not constitute an Event of Default so
long as Tenant cures any such breach within ten (10) days after receipt of written

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notice of such breach from Landlord (provided further however, that any lapse of any of the
insurance policies required under Article XI shall constitute an automatic Event of Default without
any notice or cure right).

          (f) Delivery of Documents. The failure by Tenant to deliver any of the documents
required pursuant to Section 26.01, 28.01 or 38.01 within the time periods required pursuant to
such sections.

          (g) Financial Information; Insurance; Financial Covenants; Property Exclusions; Liens.
Tenant fails in any of its obligations set forth in Section 14.02; or Tenant fails in any of its
obligations set forth in Section 14.03, such failure continuing for a period of ten (10) days after
written notice of such failure is delivered by Landlord to Tenant; or any claim of lien is recorded
against any Demised Property and such claim of lien continues for thirty (30) days without
discharge (by bonding or other means available pursuant to applicable law), satisfaction or
provision for payment being made by or on behalf of Tenant.

          (h) Cross Default With Guaranty. There is any default by Guarantor, after any
applicable notice or cure periods, under the Guaranty.

          (i) Operating a Replaced Property. Tenant or a Tenant Affiliate commences operating a
Replaced Property as a Permitted Restaurant Brand restaurant within two (2) years after Landlord
has agreed to the substitution of such Replaced Property.

          (j) Other Obligations. The failure by Tenant to timely perform any obligation,
agreement or covenant under this Lease, other than those matters specified in Sections 16.01(a)-(i)
above, and such failure continuing for a period of thirty (30) days after written notice of such
failure is delivered to Tenant, or such longer period, up to but not exceeding an additional ninety
(90) days, as is reasonably necessary to remedy such default provided, however, that if Tenant has
continuously and diligently pursued a remedy at all times during such thirty (30) day period and
additional ninety (90) day period, and notwithstanding such efforts by Tenant the applicable
Default has not been cured, and if Tenant prior to the expiration of such additional ninety (90)
day period delivers to Landlord cash or other collateral, or agrees to other undertakings, in each
case reasonably acceptable to Landlord that, in Landlord’s commercially reasonable judgment, fully
mitigate any loss that Landlord has suffered, or is reasonably likely to suffer, as a result of
such Default, then such Default shall be deemed cured by Tenant for all purposes hereunder;
provided, however, that if at any time thereafter Landlord determines in its commercially
reasonable discretion that additional cash, collateral or other undertakings by Tenant are required
in order to fully mitigate any loss that Landlord has suffered, or is reasonably likely to suffer,
as a result of such Default, then Tenant shall deliver such cash or collateral to Landlord, or
agree to such other undertakings, within thirty (30) days after Landlord’s written request therefor
(and any failure to do so shall constitute an immediate Event of Default hereunder), and Landlord
and Tenant agree that Landlord’s actions in accordance with this subsection 16.01(j) shall satisfy
any obligation of Landlord pursuant to applicable law to mitigate its damages following any
Default.

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As used in this Lease, “Default” means any breach or default under the Lease, whether or
not the same is an Event of Default, and also any breach or default under the Lease, that after
notice or lapse of time or both, would constitute an Event of Default if that breach or default
were not cured within any applicable grace or cure period.

     Section 16.02 Remedies Upon Event of Default. If an Event of Default by Tenant occurs
and during the continuance thereof, in addition to any other remedies available to Landlord at law
or in equity or elsewhere hereunder, Landlord shall have the following remedies:

          (a) Termination. Landlord shall have the right, with or without notice or demand,
immediately upon expiration of any applicable grace period specified herein, to terminate this
Lease (or Tenant’s possession to any of the Demised Properties), and at any time thereafter recover
possession of all or any portion of the Demised Properties or any part thereof and expel and remove
therefrom Tenant and any other person occupying the same by any lawful means, and repossess and
enjoy all or any portion of the Demised Properties without prejudice to any of the remedies that
Landlord may have under this Lease. If Landlord elects to terminate the Lease (or to terminate
Tenant’s right of possession), Landlord shall also have the right to reenter the Demised Properties
and take possession of and remove all personal property of Tenant, if any, in such Demised
Properties. In connection with any such repossession Tenant (and any affiliate of Tenant holding a
liquor license, if any, with respect to the Demised Properties) shall cooperate reasonably with
Landlord and any applicable government agency in transferring its liquor license to Landlord, or in
assisting Landlord in obtaining a liquor license, all at no cost or expense to Tenant. If Landlord
elects to terminate this Lease and/or Tenant’s right to possession, or if Tenant’s right to
possession is otherwise terminated by operation of law, Landlord may recover as damages from Tenant
the following: (i) all Rent then due under the Lease through the date of termination; (ii) the
Rent due for the remainder of the Lease Term in excess of the fair market rental value of the
Demised Properties for the remainder of the Lease Term, including without limitation any and all
Additional Rent (each discounted by the discount rate of the Federal Reserve Bank of San Francisco
plus one percent (1%)); (iii) the cost of reletting the Demised Properties, including without
limitation the anticipated period of vacancy until such Demised Properties can be re-let at their
fair market rental values; and (iv) any other costs and expenses that Landlord may reasonably incur
in connection with the Event of Default. Efforts by Landlord to mitigate the damaged caused by the
Event of Default (or Tenant’s Default under this Lease) shall not waive Landlord’s right to recover
damages under the foregoing provisions.

          (b) Continuation after Event of Default. If Landlord does not elect to terminate this
Lease, then this Lease shall continue in effect, and Landlord may enforce all of its rights and
remedies under this Lease, including, without limitation, the right to recover Rent as it becomes
due, and Landlord, without terminating this Lease, may exercise all of the rights and remedies of a
landlord under law, subject to Article XXXII hereof. Landlord shall not be deemed to have
terminated this Lease except by an express statement in writing. Acts of maintenance or
preservation, efforts to relet the Demised Properties, or the appointment of a receiver upon
application of Landlord to protect Landlord’s interest under this Lease shall not constitute an
election to terminate Tenant’s right to possession unless such election is expressly stated in
writing by Landlord. Notwithstanding any such reletting without such termination, Landlord may at
any time thereafter elect to terminate Tenant’s right to possession and this

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Lease. If Landlord elects to relet the Demised Properties for the account of Tenant, the rent
received by Landlord from such reletting shall be applied as follows: first, to the payment of any
and all costs of such reletting (including, without limitation, reasonable attorneys’ fees,
brokers’ fees, alterations and repairs to any of the Demised Properties, and tenant improvement
costs); second, to the payment of any and all indebtedness other than Rent due hereunder from
Tenant to Landlord; third, to the payment of any and all Rent due and unpaid hereunder; and the
balance, if any, shall be held by Landlord and applied in payment of future Rent as it becomes due.
If the rent received from the reletting is less than the sum of the costs of reletting, other
indebtedness due by Tenant, and the Rent due by Tenant, then Tenant shall pay the deficiency to
Landlord promptly upon demand by Landlord. Such deficiency shall be calculated and paid monthly.

          (c) State —Specific Remedy. Landlord may pursue any other remedy now or hereafter
available to Landlord under the laws and judicial decisions of the state in which the applicable
Demised Properties is located in addition to and not as an alternative remedy to those provided
hereunder.

     Section 16.03 Indemnification. Nothing in this Article shall be deemed to affect
Tenant’s obligation to indemnify, defend, protect and hold harmless Landlord and the other Landlord
Parties under this Lease (including, without limitation, under Article X and Article XXXVII), and
such obligation shall survive the termination or expiration of this Lease.

     Section 16.04 Waiver of Notice/ Performance by Landlord. Notwithstanding any
provision herein, (a) if Tenant is required to comply with any governmental requirement, Tenant
shall not be entitled to notice of default from Landlord and right to cure beyond the period within
which such compliance may be required by applicable law or government agency or (b) if in
Landlord’s reasonable determination the continuance of any default by Tenant for the full period of
notice provided for herein will constitute a threat of injury or harm to persons or property,
Landlord may, with or without notice, elect to perform those acts with respect to which Tenant is
in default for the account and at the expense of Tenant. If by reason of such governmental
requirement or default by Tenant, Landlord is compelled or elects to pay any sum of money,
(including without limitation reasonable attorneys’ fees, consultant fees, testing and
investigation fees, expert fees and court costs), such sums so paid by Landlord shall be due to
Landlord from Tenant within thirty (30) days after written demand therefor from Landlord, in
addition to any other amounts to be paid by Tenant under this Lease.

     Section 16.05 Late Fee. In addition to any interest charged to Tenant under Section
16.06, if any payment of Base Rent or Additional Rent is not received by Landlord from Tenant when
such payment is due to Landlord hereunder, such payment shall be deemed delinquent and cause Tenant
to incur a late fee of seven percent (7%) on each such delinquent payment (the “Late Fee”),
due and payable immediately with the delinquent Base Rent or delinquent Additional Rent, as the
case may be.

     Section 16.06 Interest. Tenant hereby acknowledges that late payment by Tenant of
Base Rent, Additional Rent and/or any other sums due by Tenant hereunder will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult
to ascertain. Such costs include, but are not limited to, processing and accounting

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charges and late charges which may be imposed on Landlord by the terms of any mortgage or
trust deed covering the Demised Properties. Accordingly, in addition to any Late Fee due from
Tenant hereunder, any sum due by Tenant under this Lease which is not paid when due shall bear
interest at the lesser of ten percent (10%) per annum of such sums or the maximum rate allowed
under applicable law, from the date such sum becomes due and payable by Tenant hereunder until
paid, unless otherwise expressly provided in this Lease.

     Section 16.07 Tenant’s Subleases. If Landlord elects to terminate this Lease on
account of any Event of Default, then Landlord may: (i) terminate any sublease and any license,
concession, or other consensual arrangement for possession entered into by Tenant and affecting any
of the Demised Properties which is not the subject of a nondisturbance agreement executed by
Landlord; or (ii) choose to succeed to Tenant’s interest in such arrangement. Absent a
nondisturbance agreement between Landlord and such subtenant, no payment by a subtenant with
respect to a sublease shall entitle such subtenant to possession of any Demised Property after
termination of this Lease and Landlord’s election to terminate the sublease by the subtenant. If
Landlord elects to succeed to Tenant’s interest in such arrangement, then Tenant shall, as of the
date of notice given by Landlord to Tenant of such election, have no further right to, or interest
in, any rent or other consideration receivable under that arrangement.

     Section 16.08 Other Effects of Events of Default.

          (a) Upon the occurrence of an Event of Default, Landlord shall have all rights and remedies
hereunder and under applicable law immediately. Except only as may be required by statute which
cannot be waived lawfully, Landlord shall have no obligation to give any notice after an Event of
Default as a condition to Landlord’s pursuit of any right or remedy.

          (b) This Section is in all respects subject to any applicable statute that provides rights in
favor of Tenant that are contrary to this Section. Notwithstanding anything else herein (but
subject to any such applicable statute), Landlord shall have no obligation to accept the attempted
or purported cure of, or to waive, any Event of Default, regardless of tender of delinquent
payments or other performance by Tenant, or any other event or condition whatsoever; and Tenant
shall not have any right to cure any Event of Default, and no right to cure shall be implied.

          (c) Without limiting the foregoing, after the occurrence of any Event of Default (irrespective
of whether or not the same consists of an ongoing condition, a one-time occurrence, or otherwise),
the same shall be deemed to continue at all times thereafter; provided, however, that such Event of
Default shall cease to continue only if Landlord shall accept performance of the defaulted
obligation or shall execute and deliver a written agreement in which Landlord expressly states that
such Event of Default has ceased to continue. Landlord shall not be obligated under any
circumstances whatsoever to accept such performance or execute and deliver any such writing.

          (d) Without limitation, this Section shall govern in any case where reference is made in this
Lease to (i) any “cure” (whether by use of such word or otherwise) of any Event of Default, (ii)
“during an Event of Default” or “the continuance of an Event of Default” (in each

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case, whether by use of such words or otherwise), or (iii) any condition or event which
continues beyond the time when the same becomes an Event of Default.

     Section 16.09 Acceptance of Rent Without Waiving Rights. No payment by Tenant shall
be deemed to be other than on account of the earliest sum due from Tenant hereunder, nor shall any
endorsement or statement by Tenant on any check or any letter accompanying such payment be deemed
an accord and satisfaction of any amount in dispute between Tenant and Landlord or otherwise.
Landlord may accept any and all of Tenant’s payments without waiving any right or remedy under this
Lease, including but not limited to the right to commence and pursue an action to enforce rights
and remedies under a previously served notice of default, without giving Tenant any further notice
or demand.

     Section 16.10 Waiver by Tenant. Tenant hereby waives all claims for damages that may
be caused by Landlord’s lawful reentering and taking possession of the Demised Properties in
accordance with the provisions of this Lease or removing and storing the property of Tenant as
herein provided.

     Section 16.11 Remedies Cumulative. All rights, privileges, elections, and remedies of
Landlord and Tenant are cumulative and not alternative with all other rights and remedies
hereunder, at law or in equity to the fullest extent permitted by law. The exercise of one or more
rights or remedies by Landlord or Tenant shall not impair Landlord’s or Tenant’s rights to exercise
any other right or remedy to the fullest extent permitted by law.

     Section 16.12 Survival. The remedies available to Landlord pursuant to this Article
shall survive expiration or termination of the Lease.

ARTICLE XVII

UNAVOIDABLE DELAYS, FORCE MAJEURE

          If either party shall be prevented or delayed from punctually performing any obligation or
satisfying any condition under this Lease by any condition beyond the control of such party,
exclusive of financial inability of a party (including without limitation any of the following if
beyond the control of (and not caused by) such party (“Force Majeure”): strike, lockout,
labor dispute, civil unrest, inability to obtain labor, materials or reasonable substitutes
thereof, acts of God, present or future governmental restrictions, regulations or control,
insurrection, and sabotage), then the time to perform such obligation or satisfy such condition
shall be extended by the delay caused by such event, but only for a reasonable period of time not
to exceed, in any event, three hundred sixty-five (365) days (the “Force Majeure
Deadline”). Notwithstanding the foregoing, the Force Majeure Deadline shall not apply to the
maintenance or repair of the physical condition of any Demised Property (other than any default
under Article XXXVII hereof) (a “Physical Condition Force Majeure Waiver”) provided that no more
than 5 Demised Properties in the aggregate under this Lease and the Other Lease shall be subject to
a Physical Condition Force Majeure Waiver at any given time. The provisions of this Article shall
in no event operate to delay the Commencement Date or to excuse Tenant from the payment of all Rent
as and when due under this Lease.

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ARTICLE XVIII

NO WAIVER

          The failure of Landlord or Tenant to insist upon strict performance of any of the terms and
conditions hereof shall not be deemed a waiver of any rights or remedies that party or any other
such party may have, and shall not be deemed a waiver of any subsequent breach or default in any of
such terms, covenants or conditions.

ARTICLE XIX

NOTICES

          Whenever it is provided herein that notice, demand, request or other communication shall or
may be given to either of the parties by the other, it shall be in writing and, any law or statute
to the contrary notwithstanding, shall not be effective for any purpose unless same shall be given
or served as follows:

          (a) If given or served by Landlord, (1) by hand delivery to Tenant, (2) by mailing same to
Tenant by registered or certified mail, postage prepaid, return receipt requested, or (3) by
delivery by overnight courier such as Federal Express, all delivered and addressed to Tenant at the
following address:

Fire Mountain Restaurants, LLC

c/o Buffet Holdings, Inc.

1460 Buffet Way

Eagan, Minnesota 55121

Attention: Mike Andrews, CEO

Telephone: (651) 365-2626

Facsimile: (651) 365-2721

with a copy to:

Fire Mountain Restaurants, LLC

c/o Buffet Holdings, Inc.

1460 Buffet Way

Eagan, Minnesota 55121

Attention: H. Thomas Mitchell, Esq.

Telephone: (651) 365-2631

Facsimile: (651) 365-2224

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with a copy to:

Kirkland & Ellis, LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention: Gregory Spitzer, Esq.

Telephone: (312) 861-2115

Facsimile: (312) 660-0274

          (b) If given or served by Tenant, (1) by hand delivery to Landlord, (2) by mailing same to
Landlord by U.S. registered or certified mail, postage prepaid, return receipt requested, or (3) by
delivery by overnight courier such as Federal Express, all delivered and addressed to Landlord at
the following address:

[                                                            ]

c/o Drawbridge Special Opportunities Fund LP

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attn: Constantine M. Dakolias, CCO

          and Glenn P. Cummins, CFO

Telephone: (212) 798-6100

Facsimile: (212) 202-3685

with a copy to:

Fortress Investment Group

5221 N. O’Connor Boulevard, Suite 700

Irving, Texas 75039

Attn: David Pettijohn

Telephone: (972) 532-4340

Facsimile: (972) 532-4343

with a copy to:

Sidley Austin LLP

555 West Fifth Street, Suite 4000

Los Angeles, California 90013-1010

Attn: Marc I. Hayutin, Esq.

Telephone: (213) 896-6018

Facsimile: (213) 896-6600

          (c) All notices, demands, requests or other communications hereunder shall be deemed to have
been given or served: (1) if hand delivered, on the date received (or the date delivery is refused)
by the recipient party; (2) if delivered by registered or certified mail, three (3) days after the
date of posting as marked on the U.S. postage receipt; and (3) if by Federal

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Express or similar overnight courier service, on the date of receipt (or the date delivery is
refused) by the recipient party.

          (d) Either Landlord or Tenant may from time to time change its address for receiving notices
under this Lease by providing written notice to the other party in accordance with this Article
XIX.

ARTICLE XX

ACCESS

          Landlord and its designees shall have the right upon not less than forty-eight hours’ prior
written notice to Tenant (except in the event of an emergency, where no prior notice shall be
required) to enter upon any of the Demised Properties at reasonable hours to inspect such Demised
Properties or, during the period commencing one year prior to the end of the Lease Term, for the
purpose of exhibiting same to prospective tenants and posting “for lease” or similar signage at the
Demised Properties, in Landlord’s discretion. Any such entry and/or inspection by Landlord shall
not unreasonably interfere with Tenant’s ability to conduct its business operations at the Demised
Properties. Tenant may provide an escort for Landlord during any such entry and/or inspection, but
Landlord’s right to such entry and/or inspection shall not be subject to the availability or
presence of any such escort provided by Tenant. Landlord agrees to reasonably cooperate with any
escort provided by Tenant during any inspection of any of the Demised Properties.

ARTICLE XXI

SIGNS

          No sign shall be installed on any of the Demised Properties until all governmental approvals
and permits required therefor are first obtained and all fees pertaining thereto have been paid by
Tenant. Except as set forth in the preceding sentence, Tenant may, at Tenant’s sole cost and
expense, install or erect signs of any height or dimensions and bearing such inscription as Tenant
shall reasonably determine. Tenant may at all times remove such signage, subject to the
requirements of the Lease. Upon the termination of this Lease following an Event of Default or
upon a rejection of this Lease in any bankruptcy, Landlord shall have the right, at its sole
option, to retain and use the signage structures in the future operation of the Demised Properties
without payment of any compensation to Tenant, or to require Tenant to remove such signage
structures at Tenant’s sole cost and expense.

ARTICLE XXII

IMPROVEMENTS AND FIXTURES

     Section 22.01 Any and all portions of the Building, all other improvements on the Real
Property at the Commencement Date and all Building Equipment on the Demised Properties at the
Commencement Date shall be the property of Landlord (excluding the trade fixtures and the

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Restaurant Equipment). In the event that Tenant installs or erects fixtures or improvements
to the Demised Properties after the Commencement Date (excluding the trade fixtures and Restaurant
Equipment), such fixtures or improvements shall at the expiration or earlier termination of the
Lease, become the property of Landlord and remain upon and be surrendered with the Demised
Properties. Notwithstanding the foregoing provisions, Tenant shall be liable for all property
taxes, assessments, and similar charges assessed against or allocable to any fixtures or equipment
at the Demised Properties (irrespective of whether such items are Building Equipment owned by
Landlord or Restaurant Equipment or other personal property of Tenant) and which are attributable
to any period of time during the Lease Term.

     Section 22.02 During the Lease Term, Tenant shall be entitled to use the Building Equipment in
Tenant’s operations at the Demised Properties. Except as otherwise provided in Section 22.04,
Tenant shall keep the Building Equipment in good working order and repair, shall not remove the
Building Equipment from the Demised Properties and shall not permit any lien or other encumbrance
to attach to Building Equipment except any such liens that are being contested by Tenant in good
faith by appropriate proceedings and that have been bonded over by Tenant to the commercially
reasonable satisfaction of Landlord or for which Tenant provides alternative security to the
commercially reasonable satisfaction of Landlord. Tenant shall keep (or cause to be kept) the
Building Equipment insured and shall be responsible for any casualty or other loss to Building
Equipment or occasioned by Building Equipment. Tenant may, from time to time, retire or replace
Building Equipment with new or comparable items of equipment purchased by Tenant, in which event
such replaced equipment shall constitute Building Equipment. All Building Equipment shall be the
property of Landlord, and Tenant shall execute such instruments and documents as Landlord may
reasonably require to evidence such ownership by Landlord.

     Section 22.03

          (a) Without limiting Landlord’s rights or Tenant’s obligations in subsection (b), Tenant shall
deliver to Landlord within thirty (30) days following Tenant’s receipt of Landlord’s written
request (i) to the extent in Tenant’s possession and/or control, a complete then-current listing of
all Restaurant Equipment, which may be in electronic format, to the extent not previously delivered
to Landlord, and (ii) any fixed asset report relating to the Restaurant Equipment in Tenant’s
possession and/or control, to the extent not previously delivered to Landlord; provided that
Landlord shall have the right to deliver such request not more than one time in any 12 month period
during the Lease Term and provided that Tenant’s delivery of such information in (i) and (ii) shall
be without any representation or warranty as to such information’s accuracy or completeness.

          (b) At any time during the occurrence of any Event of Default, and during the occurrence of
any Default caused by the failure of Tenant to pay any amount as and when due from Tenant under the
Lease, and within ninety (90) days before the expiration of the Lease Term, Tenant shall deliver to
Landlord immediately following Tenant’s receipt of Landlord’s written request (i) to the extent in
Tenant’s possession and/or control, a complete then-current listing of all Restaurant Equipment,
which may be in electronic format, to the extent not previously delivered to Landlord, and (ii) any
fixed asset report relating to the Restaurant

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Equipment in Tenant’s possession and/or control, to the extent not previously delivered to
Landlord; provided that Tenant’s delivery of such information in (i) and (ii) shall be without any
representation or warranty as to such information’s accuracy or completeness.

          (c) Without limiting Article XX, at any time during the Lease Term, upon not less than
forty-eight hours’ prior written notice to Tenant, Landlord may enter upon the Demised Property at
reasonable hours to inspect and inventory the Restaurant Equipment provided that (i) such
inspection and inventory shall not unreasonably interfere with Tenant’s ability to conduct its
business operations at the Demised Property, (ii) Landlord shall have the right to such inspection
and inventory not more than one time in any 12 month period during the Lease Term, (iii) at
Tenant’s option, such inspection and inventory shall not be conducted during normal business hours
and Tenant may provide an escort for Landlord during any such inspection and inventory (provided
further that Landlord’s right to such inspection and inventory shall not be subject to the
availability or presence of any such escort), and (iv) Landlord shall promptly pay the costs of any
damage caused by Landlord and/or its agents to any Restaurant Equipment in connection with such
inspection and inventory.

          (d) Without limiting Article XX, at any time during the occurrence of any Event of Default or
any Default in connection with any payment due and payable by Tenant under the Lease and within
ninety (90) days before the expiration of the Lease Term, Landlord may enter (without any notice)
upon the Demised Property to inspect and inventory the Restaurant Equipment; provided that (i) such
inspection and inventory shall not unreasonably interfere with Tenant’s ability to conduct its
business operations at the Demised Property, (ii) at Tenant’s option, such inspection and inventory
shall not be conducted during normal business hours and Tenant may provide an escort for Landlord
during any such inspection and inventory (provided further that Landlord’s right to such inspection
and inventory shall not be subject to the availability or presence of any such escort), and (iii)
Landlord shall promptly pay the costs of any damage caused by Landlord and/or its agents to any
Restaurant Equipment in connection with such inspection and inventory.

          (e) Tenant shall not commit waste with respect to the Restaurant Equipment located in each
Demised Property and shall not remove the Restaurant Equipment from the Demised Properties (except
to the extent it is replaced by equipment of equal or greater quality and utility). Tenant shall
keep the Restaurant Equipment insured and shall be responsible for any casualty or other loss to
Restaurant Equipment or occasioned by Restaurant Equipment. Tenant may, from time to time, retire
or replace Restaurant Equipment with new items of equipment purchased by Tenant, in which event
such replaced equipment shall constitute Restaurant Equipment.

          (f) Tenant shall use commercially reasonable efforts to obtain an option to purchase the
Restaurant Equipment on behalf of Landlord from any lender of the Restaurant Equipment pursuant to
an agreement in form and substance commercially reasonably satisfactory to Landlord. In addition,
Landlord shall execute and deliver a lien waiver agreement in form and substance commercially
reasonably satisfactory to Landlord to any lender of the Restaurant Equipment.

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          (g) Any Restaurant Equipment remaining on the Demised Properties after ten (10) days after the
expiration or earlier termination of the Lease Term shall be deemed abandoned and shall become the
property of Landlord without payment therefor. Notwithstanding the foregoing, following any Event
of Default or expiration of the Lease (including, without limitation, the nonrenewal of the Lease)
and subject to the rights of Tenant’s Lender, Landlord shall have the option to purchase any or all
the Restaurant Equipment for Fair Market Value (hereinafter defined), which option is assignable by
Landlord. Tenant shall deliver the Restaurant Equipment to Landlord unencumbered by any liens.
“Fair Market Value” shall be determined by the following procedure upon expiration of the
Lease:

     (1) Submission of Fair Market Value. Within fifteen (15) days
after the date Landlord delivers notice to Tenant that Landlord will be
exercising its option to purchase the Restaurant Equipment (the “Notice
Date”), each of Landlord and Tenant shall deliver to the other party its
calculation of the Fair Market Value of the Restaurant Equipment.

     (2) Appointment and Qualifications of Appraisers. Within thirty
(30) days after the Notice Date, Landlord and Tenant shall each appoint one
licensed equipment appraiser who has been active over the previous ten-year
(10-year) period in the appraisal of restaurant equipment (each such
appraiser chosen pursuant to this subsection (2), an “Appraiser”).
Each of Landlord and Tenant shall notify the other party, in writing, of its
Appraiser (and the business address thereof) within two (2) business days
after the appointment thereof (collectively, the “Appraiser Appointment
Notices”). Each of Landlord and Tenant agree that any Appraiser may be
(but is not required to be) an appraiser who assisted either party in
determining such party’s calculation of the Fair Market Value of the
Restaurant Equipment pursuant to subsection (1), above.

     (3) Appointment of Third Appraiser. If each party appoints an
Appraiser and notifies the other party in accordance with subsection (2),
above, then the two (2) Appraisers shall, within ten (10) days after
delivery of the later of the two Appraiser Appointment Notices, agree on and
appoint a third Appraiser (whom shall be a licensed real estate appraiser
with all other qualifications for the initial two Appraisers chosen by the
parties as set forth in subsection (2), above) and provide prompt written
notice to Landlord and Tenant of such third Appraiser and the business
address thereof. If the two (2) Appraisers fail to agree on and appoint a
third Appraiser within such ten (10) day period, then either party may elect
to have the third Appraiser selected by the AAA by delivering written notice
thereof to the other party. In such event, the electing party shall
petition the AAA (with a copy to the other party) to so determine the third
Appraiser and the parties shall cooperate reasonably with each other and the
AAA (including, without limitation, by responding promptly to any requests
for information made by the AAA) in connection with such

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determination. The decision of the AAA shall be final and conclusive
as to the identity of the third Appraiser.

     (4) Appraisers’ Decision. Within thirty (30) days after the
appointment of the third Appraiser, each of the three (3) Appraisers shall
decide whether the Fair Market Value of the Restaurant Equipment as proposed
by Landlord or Tenant pursuant to subsection (1), above, is closer to the
Fair Market Value of the Restaurant Equipment as determined by each such
Appraiser. The decision of the majority of the three (3) Appraisers shall
be binding on Landlord and Tenant (subject to subsection (5), below). The
determination of each Appraiser shall be limited to the sole issue of, and
each Appraiser shall have neither the right nor the power to determine any
issue other than, whether the Fair Market Value of the Restaurant Equipment
as proposed by Landlord or Tenant pursuant to subsection (1), above, is
closer to the actual Fair Market Value of the Restaurant Equipment as
determined by each such Appraiser.

     (5) If Only One Appraiser Is Appointed. If either Landlord or
Tenant fails to appoint an Appraiser within thirty (30) days after the
Notice Date or fails to deliver an Appraiser Appointment Notice in
accordance with subsection (2), above, and the other party does appoint an
Appraiser within such thirty (30) day period and delivers an Appraiser
Appointment Notice in accordance with subsection (2), above, then the
Appraiser timely appointed by such other party shall reach a decision
regarding whether the Fair Market Value of the Restaurant Equipment as
proposed by Landlord or Tenant pursuant to subsection (1), above, is closer
to the actual Fair Market Value of the Restaurant Equipment as determined by
each such Appraiser, and notify Landlord and Tenant of that decision within
thirty (30) days after such Appraiser’s appointment. In such event, such
Appraiser’s decision shall be binding on Landlord and Tenant.

     (6) Cost of Arbitration. If the Appraisers (or Appraiser,
pursuant to subsection (5), above) determine that Tenant’s proposed Fair
Market Value of the Restaurant Equipment is closer to the actual Fair Market
Value of the Restaurant Equipment, then Landlord shall be deemed the “Losing
Party” and Tenant shall be deemed the “Prevailing Party.” If the Appraisers
(or Appraiser, pursuant to subsection (5), above) determine that Landlord’s
proposed Fair Market Value of the Restaurant Equipment is closer to the
actual Fair Market Value of the Restaurant Equipment, then Tenant shall be
deemed the “Losing Party” and Landlord shall be deemed the “Prevailing
Party.” Each party shall initially pay the fees and expenses of its legal
counsel, appointed appraiser, appraisals, one-half of the fees of the third
appraiser, and one-half the fees of the AAA (if applicable), provided,
however, that the Losing Party shall be obligated to reimburse the
Prevailing Party for all costs of the arbitration

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paid by the Prevailing Party promptly upon the completion of the
arbitration procedure set forth in this Section (including fees and expenses
of the Prevailing Party’s legal counsel, appointed appraiser, appraisals,
and its one-half share of the fees of the third appraiser, and the AAA (if
applicable)).

          Notwithstanding the foregoing, following the occurrence and during the continuance of an Event
of Default, Fair Market Value shall be reasonably determined by a Qualified Appraiser (as
hereinafter defined) selected by Landlord, of the Restaurant Equipment purchased by Landlord
pursuant to this Section, less the cost, as reasonably determined by Landlord, to remove such
Restaurant Equipment from the Demised Properties, if and to the extent Landlord shall remove such
trade fixtures from the Demised Properties. As used herein, “Qualified Appraiser” shall
mean an independent licensed restaurant equipment appraiser with at least 10 year’s experience in
the business of valuation of restaurant equipment on a national basis.

Notwithstanding anything contained herein to the contrary, the Restaurant Equipment subject to
Landlord’s right to purchase for Fair Market Value shall not include any Restaurant Equipment that
is marked with or contains protected intellectual property owned by or licensed to Tenant in
connection with the operation of a Permitted Restaurant Brand (“Marks”) and where, in Landlord’s
and Tenant’s reasonable determination, removal or covering of such Mark would significantly damage
such Restaurant Equipment. In addition, if any Restaurant Equipment is marked with or contains any
Marks and in Landlord’s and Tenant’s reasonable determination removal or covering of such Mark
would not significantly damage such Restaurant Equipment, Landlord shall provide Tenant a
reasonable opportunity to remove or cover such Marks before Landlord takes possession of such
Restaurant Equipment.

ARTICLE XXIII

END OF TERM

Upon the expiration or earlier termination of the Lease Term, Tenant shall peaceably and quietly
quit and surrender the Demised Properties, and all Alterations which are then part of the Demised
Properties, broom clean and in good order and condition, ordinary wear and tear excepted and except
as provided in Articles XII and XIII. Tenant shall prior to the end of the Lease Term transfer to
Landlord all plans, drawings, other Alteration Information, and technical descriptions of the
Demised Properties, and shall assign to Landlord all assignable permits, licenses, authorizations
and warranties necessary for the operation of the Demised Properties (in each case to the extent
not previously transferred or assigned to Landlord). Upon the expiration or earlier termination of
this Lease Tenant shall have the obligation to remove all Restaurant Equipment, except that Tenant
may elect to abandon any trade fixtures or equipment which is attached or connected to the Demised
Properties. Any such items or other items of Restaurant Equipment or personal property which are
not removed upon the expiration or earlier termination of this Lease shall be deemed abandoned and
may be removed, disposed of or used by Landlord without payment of any compensation to Tenant.
This Article XXIII shall survive the expiration or termination of the Lease.

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ARTICLE XXIV

HOLDING OVER

          If Tenant holds over in possession after the expiration of the Lease Term, then such holding
over shall not be deemed to extend the Lease Term or renew this Lease, but rather the tenancy
thereafter shall continue as a tenancy at sufferance pursuant to the terms and conditions herein
contained, at One Hundred Fifty percent (150%) of the Base Rent otherwise then applicable (in
addition to all Additional Rent); and Tenant shall be responsible for the consequences of any
unauthorized holdover and shall indemnify, defend, protect (with counsel selected by Landlord) and
hold Landlord Parties wholly free and harmless of, from and against any and all damages, losses,
costs, expenses and claims arising therefrom, including reasonable attorneys fees and costs. This
Article shall survive expiration or termination of the Lease.

ARTICLE XXV

TENANT ASSIGNMENT AND SUBLETTING

     Section 25.01

          (a) Except as otherwise explicitly provided in this Article, neither Tenant, nor Tenant’s
successors or assigns, shall assign in whole or in part, by operation of law or otherwise, this
Lease, or sublet the Demised Properties, in whole or in part, or permit the Demised Properties or
any portion of it to be used or occupied by others, or enter into a management contract or other
arrangement whereby the Demised Properties shall be managed or operated by anyone other than the
owner of the Tenant’s leasehold estate, without the prior written consent of Landlord in each
instance, such consent not to be unreasonably withheld or conditioned so long as Landlord has
received all information reasonably requested. Notwithstanding the foregoing, Tenant may assign or
transfer the Lease in its entirety or sublease all or a portion of the Demised Properties, with
prior written notice to Landlord, but without Landlord’s prior written consent, if such assignment,
transfer or sublease is to a Tenant Affiliate (as defined below), in which case neither the Tenant
nor the Guarantor shall be released of its obligations under this Lease, provided, however, no
consent shall be required only so long as such Tenant Affiliate which holds such interest in this
Lease shall remain a Tenant Affiliate. In the event such Tenant Affiliate which holds such
interest in the Lease ceases to be a Tenant Affiliate during the Lease Term, then such cessation
shall be an automatic Event of Default, subject to the terms of this Lease. “Tenant
Affiliate” shall mean any person or entity that directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control with Tenant (for purposes of
this section, the term “control,” “controlled by” or “under common control with” means the power,
direct or indirect, to direct or cause the direction of the management and policies of Tenant,
whether through the ownership of voting stock, by contract, as trustee or executor, or otherwise;
provided however, such terms shall not apply to any ownership interest of any entity directly or
indirectly owning Buffets Holdings, Inc.). Any disposition of an ownership interest in Tenant,
either directly or indirectly, in such a manner that the ultimate beneficial owners of Tenant,
through one or more tiers of ownership, transfer “control” of Tenant, shall be deemed to be an
assignment of this Lease. Notwithstanding the foregoing, the

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following may be made with prior written notice to Landlord, but without Landlord’s prior
written consent: (i) the sale or transfer of all or any portion of the equity ownership interests
of Guarantor (or its parent) or all or substantially all of Guarantor’s (or its parents’) assets,
provided that all of Tenant’s obligations hereunder and Guarantor’s obligations under the Guaranty
shall be expressly assumed by the entity acquiring all or substantially all of the assets of
Guarantor, (ii) an initial public offering (“IPO”) of stock in Guarantor, Buffets Holdings,
Inc. and/or any subsidiary of either of them and (iii) the transfer of shares of stock in any
entity after its IPO. Provided Tenant remains liable for all its obligations under this Lease,
Landlord shall not unreasonably withhold consent to a sublease or an assignment of this Lease for
the purposes permitted herein to an individual, partnership or corporation if (i) such individual,
partnership or corporation has, in the reasonable opinion of Landlord at least five (5) years
experience in managing and operating restaurants, as well as a record of timely payment of
obligations and compliance with applicable laws; (ii) such individual, partnership or corporation
is commercially and financially sound; (iii) the restaurant use meets the standards and criteria
set forth in Article IV, and (iv) in the case of a proposed sublease, the subtenant has delivered
to Landlord and any Landlord’s Lender, upon request, a subordination, non-disturbance and
attornment agreement in form and substance reasonably acceptable to Landlord and any Landlord’s
Lender (to which Tenant shall not be required to be a party to the extent such agreement is also
executed by Landlord’s Lender (provided, however, that Tenant may be required to execute a separate
instrument evidencing its consent to and agreement with the provisions of such agreement)).
Notwithstanding the foregoing, (x) after any such assignment or sublease, Tenant shall remain
liable for all its obligations under this Lease, Guarantor shall remain liable under the Guaranty,
and Tenant shall execute and deliver to Landlord a guaranty in form and substance reasonably
acceptable to both Landlord and Tenant (which shall contain surety and guarantor waivers similar to
those contained in the Guaranty), whereby Tenant explicitly guarantees all of the assignee’s or
subtenant’s obligations under the Lease, and (y) Landlord may condition its consent to any sublease
regarding the Demised Premises upon the sublease containing the following provisions, in form and
substance acceptable to Landlord and Landlord’s Lender (collectively, the “Subordination and
Attornment Provisions”): (i) that the sublease is subordinate in all respects to the Lease;
(ii) that in the event of the cancellation or termination of the Lease for any reason whatsoever or
of the surrender of the Lease by operation of law prior to the expiration date of the sublease,
subtenant shall make full and complete attornment to Landlord under either the terms of the Lease
or the terms of the sublease, in Landlord’s sole and absolute discretion, for the balance of the
term of the sublease; (iii) that subtenant waives the provisions of any law then or thereafter in
effect which may give subtenant any right of election to terminate the sublease or to surrender
possession of the Demised Properties in the event any proceeding is brought by Landlord to
terminate the Lease; and (iv) that all of the foregoing provisions in (i) through (iv) are for the
benefit of both Tenant and Landlord and Landlord is a third party beneficiary thereof.
Notwithstanding the foregoing, Landlord and Tenant agree that upon the request of any subtenant,
Landlord or Landlord’s Lender, Landlord, Tenant and such subtenant will execute and deliver to each
other a separate subordination, attornment and nondisturbance agreement regarding the sublease, in
form and substance reasonably acceptable to all parties thereto.

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          (b) Tenant shall submit current financial statements of any proposed assignee or sublessee
together with Tenant’s request for Landlord’s approval of any proposed assignment or sublease.
Tenant shall reimburse Landlord for all reasonable out-of-pocket costs and expenses actually paid
by Landlord in connection with any requested assignment or sublease; including, but not limited to,
legal expenses in reviewing sublease or assignment documents and in preparing or reviewing
consents.

          (c) If this Lease is assigned or transferred, or if all or any part of the Demised Properties
is sublet or occupied by any party other than Tenant, Landlord may collect rent from the assignee,
transferee, subtenant or occupant, and apply the net amount collected to the Rent reserved in this
Lease, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of any
covenant or condition of this Lease, or the acceptance of the assignee, transferee, subtenant or
occupant as tenant, or a release of Tenant from the performance or further performance by Tenant of
its obligations under this Lease. Without limiting the generality of the forgoing, Tenant
expressly acknowledges and agrees that in the event of any assignment of this Lease, Tenant shall
remain jointly and severally liable with the assignee for all of the obligations under this Lease,
and in all other cases of any transfer of Tenant’s interest under this Lease, Tenant shall remain
primarily liable for such obligations. Subject to the foregoing, the consent by Landlord to an
assignment, transfer, management contract or subletting shall not in any way be construed to
relieve Tenant from obtaining the express written consent of Landlord in each instance to any
subsequent similar action that Tenant may intend to take.

     Section 25.02 Upon any sublease or assignment permitted as provided in this Article XXV,
Tenant shall deliver to Landlord copies of such sublease agreement or assignment in form and
substance reasonably satisfactory to Landlord (including, without limitation, assumption language
reasonably satisfactory to Landlord in any assignment agreement) promptly after the execution
thereof by Tenant. An assignment made with Landlord’s consent or as otherwise permitted hereunder
shall not be effective until Tenant delivers to Landlord an executed counterpart of such assignment
containing an agreement, in recordable form, executed by the assignor and the proposed assignee, in
which the assignee assumes the performance of the obligations of the assignor under this Lease
throughout the Lease Term. In no event shall Tenant be entitled to amend, extend or otherwise
modify any sublease without the prior written consent of Landlord, which Landlord may withhold in
its commercially reasonable discretion.

     Section 25.03 This Lease shall be binding upon, enforceable by, and inure to the benefit of
the parties hereto and their respective heirs, successors, representatives and assigns.

ARTICLE XXVI

FINANCINGS

     Section 26.01 Except as provided herein, without the necessity of any additional document
being executed by Tenant for the purpose of effecting a subordination, this Lease and any and all
subleases and similar arrangements shall be subject and subordinate to all ground leases and the
lien of all mortgages and deeds of trust which now or hereafter affect Landlord’s

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interest in the Demised Properties, and all amendments thereto, all without the necessity of
Tenant’s (or any subtenant’s) executing further instruments to effect subordination. In the event
that any mortgage or deed of trust is foreclosed or a deed in lieu of foreclosure is made for any
reason, Tenant shall, notwithstanding any subordination, attorn to and become the Tenant of the
successor in interest to Landlord at the option of and on terms acceptable to such successor in
interest. So long as no Event of Default exists under this Lease, Tenant’s possession of the
Demised Properties shall not be disturbed as a result of such foreclosure or deed in lieu of
foreclosure. Notwithstanding the foregoing, as of the Commencement Date (or if no mortgages, deeds
of trust or other security instruments encumber Landlord’s interest in any of the Demised
Properties as of the Commencement Date, then at such time as any such instrument does encumber the
Demised Properties after the Commencement Date), Landlord, Landlord’s Lender, and Tenant shall
execute and deliver to each other a subordination, non-disturbance and attornment agreement in the
form attached hereto as Exhibit G (an “SNDA”). The interest in the Demised Properties of any such
future ground lessee or lienholder shall have priority over the interest of Tenant in this Lease
and in the Demised Properties, subject to Landlord, Landlord’s Lender and Tenant entering into a
subordination, non-disturbance and attornment agreement reasonably required by Landlord or
Landlord’s Lender. Tenant shall execute and deliver to Landlord and Landlord’s Lender, and Tenant
shall cause any subtenant to execute and deliver to Landlord and Landlord’s Lender, in each case
within five (5) days after Landlord’s written request therefor, an SNDA or other subordination,
nondisturbance and attornment agreement reasonably required by Landlord or Landlord’s Lender. If
Tenant fails to deliver such SNDA within such 5 day period, then Landlord shall deliver a
subsequent written request of such SNDA (the “SNDA Second Request”) and Tenant shall be
required to deliver such SNDA within five (5) days after the SNDA Second Request.

          Tenant acknowledges that Landlord must comply with Landlord’s Lender’s requirements to deliver
an SNDA and Landlord will suffer damages from Tenant’s failure to deliver the SNDA as and when due.
If Tenant fails to deliver the SNDA as and when due, subject to Force Majeure, Tenant shall pay
Landlord a fee equal to US$500 for each day that Tenant has failed to deliver the SNDA (the
“SNDA Default Fee”). The SNDA Default Fee (y) shall be immediately due and payable without
notice or demand by Landlord and (z) is in addition to, and not in lieu of, any other remedy of
Landlord under this Lease regarding Tenant’s failure to deliver the SNDA. Tenant’s payment of the
SNDA Default Fee does not cure any Default or Event of Default caused by the failure to deliver the
SNDA in a timely manner.

     Section 26.02 Subject to the terms of this Article, Landlord agrees that Tenant shall have the
right to encumber or hypothecate Tenant’s interest in the leasehold estate created by this Lease.
As used in this Article, “Leasehold Mortgage” shall mean any leasehold deed of trust,
mortgage, assignment of leases and rents, assignment, security agreement, or other security
document securing the applicable financing from Tenant’s lender or Tenant Affiliates’ lender
(collectively, “Tenant’s Lender”). Landlord shall not be obligated to subordinate any or
all of Landlord’s right, title or interest in and to the Demised Properties and this Lease to the
lien of any Leasehold Mortgage. A Leasehold Mortgage shall encumber only Tenant’s leasehold
interest in the Demised Properties, and shall not encumber Landlord’s right, title or interest in
the Demised Properties. Landlord shall have no liability whatsoever for the payment of any
obligation secured by any Leasehold Mortgage or any other provisions of such note or the

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Leasehold Mortgage or related obligations. Should there be any conflict between the
provisions of this Lease and of any Leasehold Mortgage, the provisions of this Lease shall control.
No Leasehold Mortgage will be for a term longer than the Original Lease Term for the applicable
Tranche that includes the Demised Property subject to the Leasehold Mortgage or as the Original
Lease Term may be extended for the applicable Tranche that includes the Demised Property subject to
the Leasehold Mortgage in accordance with the terms of this Lease. Either prior to or concurrently
with the recordation of the Leasehold Mortgage, Tenant shall cause a fully conformed copy thereof
and of the financing agreement secured thereby to be delivered to Landlord and Fee Mortgagee,
together with a written notice containing the name and post office address of Tenant’s Lender.
Without limiting anything contained in this Section, upon written request from Tenant, Landlord
agrees to deliver an estoppel certificate in favor of Tenant’s Lender regarding this Lease, in form
and substance reasonably acceptable to Landlord and Tenant’s Lender. Tenant agrees that a
condition precedent to its granting a Leasehold Mortgage to any Tenant’s Lender shall be the
execution and delivery by such Tenant’s Lender to Landlord and Landlord’s Lender of a
subordination, non-disturbance and attornment agreement, in form and substance reasonably
acceptable to Landlord and Fee Mortgagee, which shall provide, without limitation, that upon a
default under the Leasehold Mortgages, Tenant’s Lender may foreclose only on the Lease as an
entirety, applicable to all, but not less than all (even if otherwise possible under applicable
law) of the Demised Properties. If Landlord obtains financing secured by mortgages, deeds of trust
or other security instruments encumbering Landlord’s interest in any of the Demised Properties (the
“Fee Mortgages”) as of the Commencement Date, then Tenant shall not record a Leasehold
Mortgage until after the recordation of the Fee Mortgages. However, if Landlord does not obtain
financing secured by Fee Mortgages as of the Commencement Date, Tenant shall be permitted to record
the Leasehold Mortgages prior to the Fee Mortgages so long as Tenant has otherwise satisfied the
requirements under this Section. A Leasehold Mortgage shall be, and hereafter shall continue at
all times to be, subject to each and all of the covenants, conditions and restrictions set forth in
the Lease, and junior, subject and subordinate, in each and every respect, to all rights and
interests of any Fee Mortgagee (as defined below) now or hereafter affecting any of the Demised
Properties. If Landlord delivers to Tenant a Default notice under this Lease, Landlord shall
notify any Tenant’s Lender (without any liability for failure to provide such notification) who has
given Landlord a prior written request for such notice of such Default by sending a copy of the
Default notice to Tenant’s Lender, and Landlord shall recognize and accept the performance of any
obligation of Tenant hereunder by Tenant’s Lender (provided said performance occurs within the same
cure periods as provided to Tenant under the Lease); provided, however that nothing contained
herein shall obligate Tenant’s Lender to take any such actions. As used herein, “Fee
Mortgagee” means any mortgagee or Landlord’s Lender (and its successors and assigns) under any
Fee Mortgage.

Any act by Tenant or Tenant’s Lender in violation of this Section 26.02 shall be null and void and
of no force or effect. This Section shall survive termination of the Lease.

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ARTICLE XXVII

TENANT’S TERMINATION RIGHTS

          ***[THIS PROVISION WILL BE INCLUDED IN ONLY ONE OF THE MASTER LEASES]***

          Section 27.01 Tenant shall have the right to terminate the Lease with respect to individual
Demised Properties subject to the satisfaction of all of the following (collectively, the
“Termination Conditions”): (a) Tenant shall deliver to Landlord written notice of any
proposed termination of the Lease with respect to any Demised Property not less than one hundred
eighty (180) days prior to the proposed termination date (which notice shall also set forth the
proposed termination date); (b) Tenant shall identify, not less than ninety (90) days prior to the
proposed termination date, a bonafide, willing and able purchaser (other than Tenant or any Tenant
Affiliate) (“Proposed Purchaser”) to acquire (or, if a groundleased Demised Property,
assume the groundlease tenant’s rights in) the applicable Demised Property for a purchase price of
not less than US$2,500,000, (c) Landlord and Proposed Purchaser shall enter into a purchase and
sale agreement reasonably acceptable to Landlord regarding the applicable Demised Property (with a
closing date for the sale (or assignment) that is no earlier than the proposed termination date
described in Tenant’s notice to Landlord described in subsection (a)); and (d) there shall be no
Default or Event of Default continuing at any time prior to the execution and delivery of such
purchase and sale agreement. Following satisfaction of the Termination Conditions, the Lease shall
be terminated with respect to the applicable Demised Property upon consummation of the sale (or
assignment) to the Proposed Purchaser; provided, however, that (x) if Landlord refuses to enter
into a commercially reasonable purchase and sale agreement with the Proposed Purchaser after full
satisfaction of the other Termination Conditions, or the sale (or assignment, as applicable) of the
applicable Demised Property fails to timely close due to a default by Landlord (either, a
“Landlord Rejection”), the Lease shall be deemed terminated with respect to the applicable
Demised Property as of the date of such refusal or default (as applicable); and (y) notwithstanding
any other provision of this Article, Tenant may not terminate the Lease with respect to more than
an aggregate of five (5) Demised Properties under the Lease and may not terminate the Lease with
respect to any Demised Property after the first two (2) Lease Years of the Original Term. Without
limiting the foregoing, if the sale (or assignment, as applicable) of the applicable Demised
Property fails to close due to a default by the Proposed Purchaser under the purchase and sale
agreement, then the Lease shall not be terminated with respect to such Demised Property.

          Section 27.02. Upon the termination of the Lease with respect to any Demised Property
pursuant to this Article, the Base Rent shall be reduced by an amount equal to the product of (a)
the net sales proceeds received by Landlord from the sale of such Demised Property multiplied by
(b) 0.667 percent (0.667%) (such product, the “Termination Rent Reduction”; provided,
however, that upon a Landlord Rejection, the Termination Rent Reduction shall an amount equal to
the product of (x) the purchase price offered by the Proposed Purchaser for the applicable Demised
Property, multiplied by (y) 0.667 percent (0.667%); provided further,

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however, that in no event shall the Termination Rent Reduction exceed Tenant’s allocated base
rent of such Demised Property as set forth on Tenant’s books and records. Landlord and Tenant
agree to enter into any amendment requested by the other party to evidence any such termination of
the Lease regarding the applicable Demised Property and the corresponding Base Rent reduction as
described in this Article. Without limiting Article XXXVI, time is of the essence of the
provisions of this Article XXVII. Notwithstanding any other provision in this Article XXVII, in no
event shall Tenant be permitted to terminate this Lease with respect to any Individual Demised
Property if any proposed sale of such Individual Demised Property and any release of such
Individual Demised Property from the lien of any Fee Mortgagee is reasonably determined by Landlord
and/or Fee Mortgagee to violate any provisions of the federal income tax law relating to
“real estate mortgage investment conduits” (“REMICs”), which appear in Sections 860A
through 860G of the Internal Revenue Code of 1986, as amended from time to time.

ARTICLE XXVIII

CERTIFICATES

     Section 28.01

          (a) Tenant or Landlord, as applicable (the Certifying Party”) shall, without charge,
at any time and from time to time, within five (5) days after requested in writing by the other
party (the “Requesting Party”), deliver a written instrument (the “Estoppel
Certificate”) to the Requesting Party or any other person, firm or corporation specified by the
Requesting Party, duly executed and acknowledged, certifying such information as is reasonably
requested by the Requesting Party, which may include confirmation that:

          (i) This Lease is unmodified and in full force and effect, or if there has been any
modification, that the Lease is in full force and effect as modified and stating any such
modification;

          (ii) Whether or not there are then existing, to the actual knowledge of the executing
officer, any defenses against the enforcement of any of the agreements, terms, covenants or
conditions of this Lease upon the part of the Certifying Party to be performed or complied
with, and, if so, specifying same (including, without limitation, whether the Certifying
Party knows or does not know of any default by the Requesting Party in the Requesting
Party’s performance of all agreements, terms, covenants and conditions to be performed by
the Requesting Party, and if such default does exist, specifying same);

          (iii) The amounts and dates to which the Base Rent and Additional Rent and any and all
other charges due by Tenant hereunder have been paid, the amounts of any and all outstanding
balances of such items, if any, known to the Certifying Party; and

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          (iv) such other accurate statements as may be reasonably requested by the Requesting
Party.

If the Certifying Party fails to deliver such Estoppel Certificate within such 5 day period, then
the Requesting Party shall deliver a subsequent written request of such Estoppel Certificate (the
“Estoppel Certificate Second Request”) and the Certifying Party shall be required to
deliver such Estoppel Certificate within five (5) days after the Estoppel Certificate Second
Request.

          (b) Tenant’s failure to so deliver said Estoppel Certificate shall be deemed conclusive
against Tenant as to the truthfulness of the items stated in Landlord’s request. Delivery of a
completed Estoppel Certificate in substantially the form as set forth on Exhibit B attached hereto
(“Estoppel Certificate”) shall satisfy the requirements of this Section.

          (c) Tenant acknowledges that Landlord must comply with Landlord’s Lender’s requirements to
deliver an Estoppel Certificate and Landlord will suffer damages from Tenant’s failure to deliver
the Estoppel Certificate as and when due. If Tenant fails to deliver the Estoppel Certificate as
and when due, subject to Force Majeure, Tenant shall pay Landlord a fee equal to US$500 for each
day that Tenant has failed to deliver the Estoppel Certificate (the “Estoppel Certificate
Default Fee”). The Estoppel Certificate Default Fee (y) shall be immediately due and payable
without notice or demand by Landlord and (z) is in addition to, and not in lieu of, any other
remedy of Landlord under this Lease regarding Tenant’s failure to deliver the Estoppel Certificate.
Tenant’s payment of the Estoppel Certificate Default Fee does not cure any Default or Event of
Default caused by the failure to deliver the Estoppel Certificate in a timely manner.

ARTICLE XXIX

RELATIONSHIP OF PARTIES

          Nothing contained in this Lease shall be construed to create the relationship of principal and
agent, partnership, joint venture or any other relationship between the parties hereto other than
the relationship of Landlord and Tenant.

ARTICLE XXX

RECORDING

          Neither Landlord nor Tenant shall record this Lease; however, upon the request of either party
hereto, the other party shall join in the execution and recordation of a memorandum of lease (or
other document that serves the same purpose) in a form substantially similar to the form attached
hereto as Exhibit C or a substantially equivalent form complying with state-specific recording
requirements (collectively, the “Memoranda” and each individually a “Memorandum”).
Each Memorandum shall describe the parties, the relevant Demised Property, the term of this Lease,
any special provisions other than those pertaining to Rent and shall incorporate this Lease by
reference. Tenant shall pay all costs charged or collected by the county recorders and other
appropriate government offices to record the Memoranda.

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ARTICLE XXXI

CAPTIONS AND SECTION NUMBERS

          The captions, section numbers, and index appearing in this Lease are inserted only as a matter
of convenience and in no way define, limit, construe or describe the scope or intent of such
sections or articles nor in any way affect this Lease.

ARTICLE XXXII

APPLICABLE LAW; WAIVER OF JURY TRIAL

          This Lease shall be governed by, and construed in accordance with the laws of the State of New
York without regard to conflicts of law principles; provided, however, that any forcible entry and
detainer action or similar proceeding shall be governed by the laws of the state in which the
applicable Real Property is located. If any provision of this Lease or the application thereof to
any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of
this Lease shall not be affected thereby, and each provision of the Lease shall be valid and
enforceable to the fullest extent permitted by the law.

          LANDLORD AND TENANT HEREBY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED
WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK OR WITHIN THE COUNTY AND STATE IN WHICH ANY
DEMISED PROPERTY IS LOCATED AND EACH IRREVOCABLY AGREES THAT (EXCEPT FOR FORCIBLE ENTRY AND
DETAINER ACTIONS OR SIMILAR ACTIONS) ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
LEASE SHALL BE LITIGATED IN SUCH COURTS. TENANT ACCEPTS FOR ITSELF AND IN CONNECTION WITH THE
DEMISED PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY
JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS LEASE.

          EACH OF LANDLORD AND TENANT, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES
AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING (WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE) BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS LEASE.
TENANT ACKNOWLEDGES THAT THE PROVISIONS OF THIS ARTICLE ARE A MATERIAL INDUCEMENT TO LANDLORD’S
ENTERING INTO THE LEASE.

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ARTICLE XXXIII

ENTIRE AGREEMENT 

          This Lease and the Exhibits attached hereto, all of which form a part hereof, set forth all
the covenants, promises, agreements, conditions and understandings between Landlord and Tenant
concerning the Demised Properties, and there are no covenants, promises, agreements, conditions or
understandings heretofore made, either oral or written, between them other than as herein set
forth. No modification, amendment, change or addition to this Lease shall be binding upon Landlord
or Tenant unless reduced to writing and signed by each party.

ARTICLE XXXIV

LIABILITY OF PARTIES

     Section 34.01 The obligations of Landlord under this Lease are not personal obligations of the
individual members, partners, directors, officers, shareholders, agents or employees of Landlord.
Tenant shall look solely to the Demised Properties and the proceeds therefrom for satisfaction of
any liability of Landlord and shall not look to other assets of Landlord nor seek recourse against
the assets of the individual members, partners, directors, officers, shareholders, agents or
employees of Landlord. Whenever Landlord transfers its interest, Landlord shall be automatically
released from future performance subsequently arising under this Lease and from all liabilities and
expenses hereunder.

     Section 34.02 The obligations of Tenant under this Lease are not personal obligations of the
individual members, partners, directors, officers, shareholders, agents or employees of Tenant.
Landlord shall not seek recourse against the assets of the individual members, partners, directors,
officers, shareholders, agents or employees of Tenant, except pursuant to the Guaranty. If more
than one person or entity is named as Tenant hereunder, the obligations under this Lease of all
such persons and entities as Tenant shall be joint and several.

ARTICLE XXXV

ATTORNEYS’ FEES

          If any legal action should be commenced in any court regarding any dispute arising between the
parties hereto, or their successors and assigns, concerning any provision of this Lease or the
rights and duties of any person in relation thereto, then the prevailing party therein shall be
entitled to collect its reasonable expenses, attorneys’ fees and court costs, including the same on
appeal. As used herein, the term “prevailing party” means the party who, in light of the claims,
causes of action, and defenses asserted, is afforded greater relief.

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ARTICLE XXXVI

TIME OF THE ESSENCE; SURVIVAL

          Time is of the essence of every provision of this Lease. Any provision of this Lease
explicitly providing for the performance by Tenant of obligations upon or after the expiration or
termination of this Lease shall survive any such expiration or termination.

ARTICLE XXXVII

ENVIRONMENTAL

     Section 37.01

          (a) For the purpose of this Lease, the following definitions pertaining to environmental
matters shall apply:

     “De Minimis Amounts” means, with respect to any given level of Hazardous Materials,
that level or quantity of Hazardous Materials in any form or combination of forms, the use, storage
or release of which does not constitute a violation of, or require regulation or remediation under,
any Environmental Laws and is customarily employed in the ordinary course of, or associated with,
similar business located in the states in which the relevant Demised Property is located.

     “Environmental Conditions” means the conditions of “Environmental Media” (as defined
below), and the conditions of any part of the Demised Properties, including but not limited to
building materials, which affect or may affect Environmental Media.

     “Environmental Laws” shall mean any federal, state or local law, statute, ordinance,
permit condition or regulation pertaining to occupational health and safety, natural resources or
environmental protection, including, without limitation: (1) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601 et seq. as amended
(“CERCLA”), the Solid Waste Disposal Act, 42 U.S.C. 6901 et seq. as amended
(“RCRA”), the Federal Water Pollution Control Act of 1972, as amended by the Clean Water
Act of 1977, as amended, 33 U.S.C. 1251 et seq.; the Toxic Substances Control Act of 1976, as
amended, 15 U.S.C. 2601 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986,
42 U.S.C. 11001 et seq.; the Clean Air Act of 1966, as amended by the Clean Air Act Amendments of
1990, 42 USC 7401 et seq.; the National Environmental Policy Act of 1970, as amended, 42 USC 4321
et seq.; the Rivers and Harbors Act of 1899, as amended, 33 USC 401 et seq.; the Mine Safety and
Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq. the Endangered Species Act of 1973,
as amended, 16 U.S.C. 1531, et seq.; the Occupational Safety and Health Act of 1970, as amended 29
U.S.C. 651, et seq.; the Safe Drinking Water Act of 1974, as amended, 42 U.S.C. 300(f) et seq.,
the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801 et seq. as amended, and all
regulations, published governmental policies, and administrative or judicial orders promulgated
under or implementing or enforcing said laws; (2) all state or local laws which implement the
foregoing federal laws or which pertain to

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occupational health and safety, natural resources or environmental protection: all as amended
from time to time, and all regulations, published governmental policies, and administrative or
judicial orders promulgated under the foregoing laws that are legally binding and; (3) all federal
and state common law, including but not limited to the common law of public or private nuisance,
trespass, negligence or strict liability, where such common law pertains to occupational health and
safety, natural resources, or environmental protection and all legally binding judicial orders
promulgated under said laws.

     “Environmental Media” means soil, fill material, or other geologic materials at all
depths, groundwater at all depths, surface water including storm water and sewerage, indoor and
outdoor air, and all living organisms, including without limitation all animals and plants, whether
such Environmental Media are located on or off the Demised Properties.

     “Hazardous Materials” means any ignitable, reactive, explosive, corrosive,
carcinogenic, mutagenic, toxic or radioactive material, whether virgin material, secondary
material, by-product, waste or recycled material, defined, regulated or designated as a
contaminant, pollutant, hazardous or toxic substance, material, waste, contaminant or pollutant
under any Environmental Laws presently in effect or as amended or promulgated in the future, and
shall specifically include, without limitation: (a) those materials included within the definitions
of “hazardous substances,” “extremely hazardous substances,” “hazardous materials,” “toxic
substances” “toxic pollutants,” “hazardous air pollutants” “toxic air contaminants,” “solid waste,”
“hazardous waste,” “pollutants,” contaminants” or similar categories under any Environmental Laws;
and (b) specifically including, without limitation, any material, waste or substance which
contains: (i) petroleum or petroleum derivatives byproducts, including crude oil and any fraction
thereof and waste oil; (ii) asbestos; (iii) polychlorinated biphenyls; (iv) formaldehyde; and/or
(v) radon.

     “Release” means any active or passive spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping or disposing into any Environmental
Media. For the purposes of this Lease, “Release” also includes any threatened Release.

     “Remedial Activities” means any investigation, work plan preparation removal, repair,
cleanup, abatement, remediation, monitored natural attenuation, natural resource damage assessment
and restoration, closure, post-closure, detoxification or remedial activity of any kind whatsoever
necessary to address Environmental Conditions.

     “Unreimbursed Costs” means any fees or other costs which are not reimbursed or subject
to reimbursement pursuant to applicable law or regulations, insurance, contractual indemnities or
any other means.

     “Use” means the receipt, handling, generation, storage, treatment, recycling,
disposal, transfer, transportation, introduction, or incorporation into, on, about, under or from
the Demised Properties.

          (b) Tenant acknowledges that Landlord makes no warranties or representations of any kind, or
in any manner or in any form whatsoever, as to the status of

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Environmental Conditions or Hazardous Materials at the Demised Properties. Tenant will
conduct at its own expense any investigations regarding Environmental Conditions of the Demised
Properties in order to satisfy itself as to the absence or existence of Hazardous Materials
contamination of the Demised Properties.

     Section 37.02 From and after the Commencement Date, Tenant shall not be entitled to the Use
of any Hazardous Materials at the Demised Properties other than De Minimis Amounts, unless
performed in compliance in all material respects with all Environmental Laws and any other
applicable local, state and federal statutes, orders, ordinances, rules and regulations. Tenant
shall be prohibited from conducting or allowing the Release of Hazardous Materials onto, on, about,
under or from the Demised Properties, the exception being sewer or other permitted discharges or
Releases or other De Minimis Amounts, in compliance in all material respects with all Environmental
Laws. From and after the date of this Lease, Tenant covenants to, and shall, undertake all
Remedial Activities required by Environmental Laws or otherwise necessary or appropriate to
preserve the value of the Demised Properties or to protect the public health to address any Use or
Release of Hazardous Materials after the date of this Lease, caused by Tenant or its agents,
employees, representatives, invitees, licensees, subtenants, customers or contractors (“Other
Parties”), or otherwise adversely affecting any Demised Property at Tenant’s sole cost and
expense, and shall give prompt written notice of same to Landlord. If any Remedial Activities are
required by Environmental Laws to be performed at any location other than the Demised Properties,
Tenant shall use its best efforts to obtain any required access agreements from third parties.

     Section 37.03 In addition to any other obligation herein, Tenant shall defend, indemnify and
hold Landlord Parties free and harmless from any and all claims, losses, liabilities and other
obligations of any kind whatsoever that may be made against or incurred by Landlord Parties in
connection with (i) the violation of any Environmental Law by Tenant (other than known
environmental problems specifically identified in the Environmental Reports), or (ii) Hazardous
Materials or Environmental Conditions at, on, under, about or from the Demised Properties during
the Lease Term (and in the event of any holding over by Tenant, during any period which Tenant
occupies the relevant Demised Property), including without limitation any and all costs and fees of
attorneys or experts incurred by Landlord in defending against same except to the extent that such
Release is attributable to the gross negligence or willful misconduct of such Landlord Party, as
determined by a final nonappealable judgment (or by a judgment which such Landlord Party elects not
to appeal) by a court of competent jurisdiction. This and any other right of Landlord under this
Lease shall inure to the benefit of Landlord’s successors and assigns, as well as Landlord’s
Lenders and/or Fee Mortgagees and their respective successors and assigns as third party
beneficiaries.

     Section 37.04 Tenant shall promptly inform Landlord in writing of (i) any and all material
enforcement actions or initiation of Remedial Activities (where no Remedial Activities are
currently being conducted) or other governmental or regulatory enforcement or remedial actions
(excluding routine actions such as permit renewals) instituted, completed or threatened pursuant to
any Environmental Laws affecting the Demised Properties; (ii) all claims made or threatened by any
third person against Tenant or the Demised Properties relating in any way whatsoever to Hazardous
Materials or Environmental Conditions (the matters set forth in clauses

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(i) and (ii) are hereinafter referred to as “Environmental Claims”); (iii) Tenant’s
knowledge of any material Release of Hazardous Materials at, on, in, under to or from the Demised
Properties or on, in or under any adjoining property. Tenant shall also supply to Landlord
promptly after Tenant first receives or sends the same, copies of all claims, reports, complaints,
notices, warnings, asserted violations or other communications relating in any way to the matters
described in this Section.

     Section 37.05 In addition to any other obligations herein, Tenant shall be solely responsible
for and shall indemnify and hold harmless all Landlord Parties from and against any and all private
or governmental claims, lawsuits, administrative proceedings, judgments, penalties, fines,
proceedings, loss, damage, cost, expense or liability arising out of or associated with Tenant’s
Use or the presence of Hazardous Materials or Release of Hazardous Materials at, on, under, about
or from the Demised Properties during the Lease Term (and in the event of any holding over by
Tenant, during any period which Tenant occupies the relevant Demised Property) except to the extent
that such Release is attributable to the gross negligence or willful misconduct of such Landlord
Party, as determined by a final nonappealable judgment (or by a judgment which such Landlord Party
elects not to appeal) by a court of competent jurisdiction. Tenant’s indemnity and release
includes, without limitation: (i) such costs associated with Remedial Activities, including all
necessary plans and reports, incurred by the U.S. Environmental Protection Agency, or any other
federal, state or local governmental agency or entity or by any other person, incurred pursuant to
the CERCLA, RCRA, or any other applicable Environmental Laws; (ii) any such oversight charges,
fines, damages or penalties arising from the presence or Release of Hazardous Materials, and any
related Remedial Activities, incurred pursuant to the provisions of CERCLA, RCRA, or any other
applicable Environmental Laws; (iii) any such liability to third parties arising out of the
presence or Release of Hazardous Materials for personal injury, bodily injury, or property damage
arising under any statutory or common law theory, including damages assessed for the maintenance of
a public or private nuisance, the costs of Remedial Activities, or for the carrying on of an
abnormally dangerous activity; (iv) all such direct or indirect compensatory, consequential, or
punitive damages arising out of any claim based on the presence or such Release of Hazardous
Materials or damage or threatened damage to Environmental Conditions; (v) any and all reasonable
costs, fees and expenses of attorneys, consultants and experts incurred or sustained in making any
investigation on account of any claim, in prosecuting or defending any action brought in connection
therewith, in obtaining or seeking to obtain a release therefrom, or in enforcing any of the
agreements herein contained; (vi) Rent during any period of Remedial Activities equal to the Base
Rent then in effect, or if the Lease has terminated, the Base Rent that was in effect on the
Termination Date; and (vii) any action or omission or use of the Demised Properties by any
subtenant. The foregoing indemnity shall apply to Tenant’s Use of Hazardous Materials irrespective
of whether any of Tenant’s activities were or will be undertaken in accordance with Environmental
Laws or other applicable laws, regulations, codes and ordinances. This indemnity is intended to be
operable under 42 U.S.C. 9607(e)(1). Tenant specifically agrees that it shall not sue or seek
contribution from the Landlord Parties or any successors or assigns thereof for any matter for
which Tenant is obligated to provide indemnification under this Section. All reasonable costs and
expenses incurred by Landlord for which Tenant is obligated to indemnify Landlord under

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this Section shall be repaid promptly by Tenant to Landlord. This Section shall survive
termination of the Lease.

ARTICLE XXXVIII

LANDLORD ASSIGNMENT

     Section 38.01 This Lease shall be fully assignable by the Landlord or its successors and/or
assigns, in whole or in part, subject to the terms of Article XXXIV and this Article. In the event
that from time to time Landlord desires to partially assign its interest in the Lease with respect
to one or more of the Demised Properties, then (a) Landlord will determine the Base Rent allocated
to any Demised Properties to be covered by the partial assignment (the “Proposed Allocated Base
Rent Amount”) and Landlord shall inform Tenant in writing of the Proposed Allocated Base Rent
Amount; then Tenant shall reply in writing to Landlord within five (5) business days after delivery
thereof either (i) confirming its acceptance of the Proposed Allocated Base Rent Amount and such
confirmed amount shall be the “Allocated Base Rent Amount” or (ii) rejecting such Proposed
Allocated Base Rent Amounts due to the same directly causing potential capital lease accounting
treatment in a detailed explanation reasonably satisfactory to Landlord and proposing an amount
that is as close as possible to the Proposed Allocated Base Rent Amount without triggering
potential capital lease accounting treatment and such proposed amount shall be the “Allocated Base
Rent Amount,” and if Tenant fails to reply to Landlord within such five business day period, the
Proposed Allocated Base Rent Amount shall be deemed approved and shall be the “Allocated Base Rent
Amount”; (b) Landlord, at its cost and expense, shall prepare an individual lease agreement (or
individual lease agreements, in Landlord’s discretion) in the form attached hereto as Exhibit D
with respect to any such Demised Properties (each, an “Individual Lease Agreement”); (c) upon the
assignment by Landlord, this Lease shall be amended to exclude any such Demised Properties from the
Lease, the Base Rent hereunder shall be reduced by the Allocated Base Rent Amount; and (d) the Base
Rent payable under the Individual Lease Agreement(s) will equal the Allocated Base Rent Amount. In
such event, each party (including Landlord’s assignee), shall execute any such new Individual Lease
Agreement within three (3) business days after Landlord’s delivery thereof. If Tenant fails to
deliver such new Individual Lease Agreement within such 3 business day period, then Landlord shall
deliver a subsequent written request of such new Individual Lease Agreement (the “New
Individual Lease Agreement Second Request”) and Tenant shall be required to deliver such new
Individual Lease Agreement within two (2) business days after the New Individual Lease Agreement
Second Request. Notwithstanding clause (a) above, after the Original Lease Term and during any
Option Period, Landlord shall determine in its sole discretion, the Allocated Base Rent Amount. In
addition, Tenant shall execute and deliver to Landlord, any other instruments and documents
reasonably requested by Landlord in connection with the sale or assignment, including without
limitation a new guaranty (substantially in the form of Exhibit D) of any such Individual Lease
Agreement and a commercially reasonable subordination, non-disturbance and attornment agreement
that may be requested by Landlord’s assignee’s lenders. In addition, Tenant agrees to cooperate
reasonably with Landlord in connection with any such sale or assignment (including, without
limitation, agreeing to change the method of payment of Rent if required by Landlord’s assignee).
From and after the effective date of any such Individual Lease

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Agreement, Landlord will be released from any liability thereafter arising with respect to the
Demised Properties covered thereby. Without limiting the liability of assignee lessor under this
Lease following an assignment by Landlord pursuant to this Section, in no event shall Landlord have
any liability under any Individual Lease Agreement. Without limiting the foregoing, (x) Tenant
agrees that Landlord may agree with any purchaser or assignee of any Demised Property covered by an
Individual Lease Agreement to provide (or have a Landlord’s Affiliate provide) asset management
and/or act as servicer regarding such Demised Property; and (y) Tenant acknowledges that any
Individual Lease Agreement can be a “master lease” agreement covering multiple Demised Properties.

     Section 38.02 Landlord and Tenant agree that this Lease constitutes a true lease and not a
financing or other form of transaction. In furtherance of the foregoing, Landlord and Tenant each
waives any claim or defense based upon the characterization of this Lease as anything other than a
true lease and irrevocably waive any claim or defense which asserts that the Lease is anything
other than a true lease. Landlord and Tenant covenant and agree that they will not assert that
this Lease is anything but a true lease. Landlord and Tenant each stipulate and agree not to
challenge the validity, enforceability or characterization of the Lease of the Demised Properties
as a true lease and further stipulate and agree that nothing contained in this Lease creates or is
intended to create a joint venture, partnership (either de jure or de facto), equitable mortgage,
trust, financing device or arrangement, security interest or the like. Landlord and Tenant each
shall support the intent of the parties that the Lease of the Demised Properties pursuant to this
Lease is a true lease and does not create a joint venture, partnership (either de jure or de
facto), equitable mortgage, trust, financing device or arrangement, security interest or the like,
if, and to the extent that, any challenge occurs. Tenant believes that this Lease will be treated
as an operating lease rather than a capital lease. Landlord will claim all depreciation with
respect to the Demised Properties.

     Section 38.03 Landlord and Tenant agree that this Lease constitutes a single and indivisible
lease as to all of the Demised Properties collectively, and shall not be subject to severance or
division unless and to the extent, pursuant to Section 38.01, Landlord elects to effect a partial
assignment of the Lease. In furtherance of the foregoing, and except as may result from the
amendment of this Lease to eliminate certain properties and reduce Base Rent in conjunction with
the execution of Individual Lease Agreements pursuant to the terms of Section 38.01, Landlord and
Tenant each (i) waive any claim or defense based upon the characterization of this Lease as
anything other than a master lease of all the Demised Properties and irrevocably waive any claim or
defense which asserts that the Lease is anything other than a master lease, (ii) covenant and agree
that it will not assert that this Lease is anything but a unitary, unseverable instrument
pertaining to the lease of all, but not less than all, of the Demised Properties, (iii) stipulate
and agree not to challenge the validity, enforceability or characterization of the lease of the
Demised Properties as a unitary, unseverable instrument pertaining to the lease of all, but not
less than all, of the Demised Properties, and (iv) shall support the intent of the parties that
this Lease is a unitary, unseverable instrument pertaining to the lease of all, but not less than
all, of the Demised Properties, if, and to the extent that, any challenge occurs.

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ARTICLE XXXIX

REPLACEMENTS

     Section 39.01 Property Replacements. [THIS PROVISION WILL NOT BE APPLY TO THE GROUND
LEASE PROPERTIES] If at any time Tenant intends to discontinue the operation of any Permitted
Restaurant Brand restaurant, Tenant may propose to Landlord that Tenant substitute a tract of real
property on which Tenant operates another Permitted Restaurant Brand restaurant (a “Replacement
Property”) for such Demised Property (each, a “Replaced Property”). Tenant shall
submit for Landlord’s review evidence of the fair market value of the proposed Replacement Property
satisfactory to Landlord and any Landlord’s Lender and compliant with Landlord’s Lender’s
regulatory requirements, as well as current survey, current environmental report, records of any
administrative proceedings or environmental claims involving the proposed Replacement Property,
current title report and profit/loss statements, if available, for the previous two (2) years of
the Replacement Property and similar data with respect thereto, as well as evidence of the fair
market value of the proposed Replaced Property satisfactory to Landlord and any Landlord’s Lender
and compliant with Landlord’s Lender’s regulatory requirements, and other information with respect
to the Replaced Property as Landlord and Landlord’s Lender may request. Provided that (a) the
Replacement Property has equivalent or greater fair market value and equivalent or stronger
financial operating history than the Replaced Property, each as determined by Landlord in its
reasonable discretion, (b) the Replacement Property is located within the same geographical area
(and (i) is in a portion of such geographical area with equivalent or better customer demographics
and equivalent or less business competition, and (ii) has equivalent or better traffic flows) as
the Replaced Property, each as determined in Landlord’s sole good faith discretion, (c) the
Replacement Property has no material title or environmental defects, and has no other material
liability substantially greater than the Replaced Property on the date of the applicable
substitution, all in Landlord’s sole good faith discretion, (d) Tenant has satisfied such other
conditions as Landlord or Landlord’s Lenders may impose in their sole discretion, (e) Landlord and
Landlord’s Lenders, in their sole discretion, otherwise approve the substitution and (f) such
substitution does not violate any, and is in compliance with all the provisions of REMICS, which
appear in Sections 860A through 860G of the Internal Revenue Code of 1986, as amended from time to
time, then Landlord, within thirty (30) days after the submission of all reports and other
information required hereunder (such thirty (30) day period is referred to in this Article as the
“Consideration Period”), shall approve the substitution of the Replacement Property for the
Replaced Property. Subject to the foregoing, in the event that Landlord fails to approve the
proposed substitution, Landlord shall deliver to Tenant a written notice within ten (10) days
following the expiration of the Consideration Period, disapproving the proposed substitution and
describing which of Landlord’s and/or Landlord’s Lenders’ conditions have not been satisfied. In
the event of any such disapproval, Tenant shall have an additional thirty (30) day period from and
after the date Landlord’s disapproval notice is delivered to Tenant to submit any additional
information to Landlord regarding satisfaction of the foregoing conditions. In the event all the
foregoing conditions are still not satisfied, then Landlord shall deliver to Tenant a second
written notice within ten (10) days following the expiration of such thirty (30) day period
disapproving the proposed substitution and describing which of said conditions have not been
satisfied. If all

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other conditions set forth above regarding the proposed substitution have been satisfied
except that Landlord believes that the Replacement Property does not have equivalent or greater
fair market value to the Replaced Property, then Tenant may, by written notice delivered to
Landlord within ten (10) days after Landlord delivers to Tenant Landlord’s second written notice of
Landlord’s disapproval of the proposed substitution, invoke the following arbitration procedure to
determine whether the Replacement Property has an equivalent or greater fair market value to the
Replaced Property (the date when such Tenant’s notice invoking the arbitration is delivered to
Landlord is referred to herein as the “Tenant Notice Date”).

               (1) Submission of Proposed Value. Within fifteen (15) days after the Tenant
Notice Date, (a) Landlord shall deliver to Tenant an MAI fair market value appraisal for
each of the Replacement Property and the Replaced Property supporting its assertion that the
fair market value of the Replacement Property is less than the fair market value of the
Replaced Property, and (b) Tenant shall deliver to Landlord an MAI fair market value
appraisal for each of the Replacement Property and the Replaced Property supporting its
assertion that the fair market value of the Replacement Property is equal to or greater than
the fair market value of the Replaced Property.

               (2) Appointment and Qualifications of Appraiser. Within thirty (30) days after
the Tenant Notice Date, Landlord and Tenant shall each appoint one licensed real estate
appraiser who has been active over the previous ten-year (10-year) period in the appraisal
of single tenant restaurants within the county in which the applicable Replacement Property
is located (each such appraiser chosen pursuant to this subsection (2), an
“Appraiser”). Each of Landlord and Tenant shall notify the other party, in writing,
of its Appraiser (and the business address thereof) within two (2) business days after the
appointment thereof (collectively, the “Appraiser Appointment Notices”). Each of
Landlord and Tenant agree that any Appraiser may be (but is not required to be) an appraiser
who prepared one or both of the fair market value appraisals delivered by Landlord and
Tenant pursuant to subsection (1), above.

               (3) Appointment of Third Appraiser. If each party appoints an Appraiser and
notifies the other party in accordance with subsection (2), above, then the two (2)
Appraisers shall, within ten (10) days after delivery of the later of the two Appraiser
Appointment Notices, agree on and appoint a third Appraiser (whom shall be a licensed real
estate appraiser with all other qualifications for the initial two Appraisers chosen by the
parties as set forth in subsection (2), above) and provide prompt written notice to Landlord
and Tenant of such third Appraiser and the business address thereof. If the two (2)
Appraisers fail to agree on and appoint a third Appraiser within such ten (10) day period,
then either party may elect to have the third Appraiser selected by the AAA by delivering
written notice thereof to the other party. In such event, the electing party shall petition
the AAA (with a copy to the other party) to so determine the third Appraiser and the parties
shall cooperate reasonably with each other and the AAA (including, without limitation, by
responding promptly to any requests for information made by the AAA) in connection with such
determination. The decision of the AAA shall be final and conclusive as to the identity of
the third Appraiser.

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               (4) Appraisers’ Decision. Within thirty (30) days after the appointment of the
third Appraiser, the three (3) Appraisers shall decide whether the fair market value of the
Replacement Property is equal to or greater than the fair market value of the Replaced
Property and shall notify Landlord and Tenant in writing of each Appraiser’s decision. The
decision of the majority of the three (3) Appraisers shall be binding on Landlord and Tenant
(subject to subsection (5), below) and if Tenant is the “Prevailing Party” (as defined in
subsection (6), below), then the Replacement Property shall be deemed approved by Landlord.
The determination of each Appraiser shall be limited to the sole issue of, and each
Appraiser shall have neither the right nor the power to determine any issue other than,
whether the fair market value of the Replacement Property is equal to or greater than the
fair market value of the Replaced Property, as determined by such Appraiser.

               (5) If Only One Appraiser Is Appointed. If either Landlord or Tenant fails to
appoint an Appraiser within thirty (30) days after the Tenant Notice Date or fails to
deliver an Appraiser Appointment Notice in accordance with subsection (2), above, and the
other party does appoint an Appraiser within such thirty (30) day period and delivers an
Appraiser Appointment Notice in accordance with subsection (2), above, then the Appraiser
timely appointed by such other party shall reach a decision regarding whether the fair
market value of the Replacement Property is equal to or greater than the fair market value
of the Replaced Property, as determined by such Appraiser, and notify Landlord and Tenant of
that decision within thirty (30) days after such Appraiser’s appointment. In such event,
such Appraiser’s decision shall be binding on Landlord and Tenant.

               (6) Cost of Arbitration. If the Appraisers (or Appraiser, pursuant to
subsection (5), above) determine that the fair market value of the Replacement Property is
equal to or greater than the fair market value of the Replaced Property, then Landlord shall
be deemed the “Losing Party” and Tenant shall be deemed the “Prevailing Party.” If the
Appraisers (or Appraiser, pursuant to subsection (5), above) determine that the fair market
value of the Replacement Property is less than the fair market value of the Replaced
Property, then Tenant shall be deemed the “Losing Party” and Landlord shall be deemed the
“Prevailing Party.” Each party shall initially pay the fees and expenses of its legal
counsel, appointed appraiser, appraisals, one-half of the fees of the third appraiser, and
one-half the fees of the AAA (if applicable), provided, however, that the Losing Party shall
be obligated to reimburse the Prevailing Party for all costs of the arbitration paid by the
Prevailing Party promptly upon the completion of the arbitration procedure set forth in this
Section (including fees and expenses of the Prevailing Party’s legal counsel, appointed
appraiser, appraisals, and its one-half share of the fees of the third appraiser, and the
AAA (if applicable)).

          In the event Landlord agrees to the substitution of the Replacement Property for the Replaced
Property, Tenant shall execute and deliver to Landlord such instruments and documents as Landlord
shall reasonably require in connection therewith, including without limitation a special warranty
or similar deed and an amendment to this Lease, and Landlord shall convey the Replaced Property to
Tenant (or Tenant’s designee) as is, with all faults, without any

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express or implied warranties. Tenant shall pay all expenses incurred by Landlord pursuant to
this Section, including without limitation, Landlord’s, Landlord’s Affiliates and Landlord’s
Lenders’ legal fees and expenses, and the costs of any title policies (owner’s and/or lender’s) on
the Replacement Property, and Tenant shall be responsible for all Rent (including real property
taxes) on the Replaced Property up to the date of transfer. In addition to the foregoing
restrictions, Tenant may not substitute during the entire Lease Term an aggregate of more than ten
percent (10%) of the Demised Properties (rounding up) covered by this Lease as of the Commencement
Date.

     Section 39.02 Economic Replacements. In lieu of Tenant substituting a Replaced
Property with a Replacement Property, Tenant shall have the option of substituting a Replaced
Property with an Economic Replacement (defined below) so long as the Economic Replacement is
reasonably acceptable to Landlord and the following conditions are satisfied:

          (a) Tenant shall give not less than one hundred eighty (180) days prior written notice to
Landlord specifying the date Tenant intends for the substitution to occur (the “Substitution
Date”) and describing in detail the Economic Replacement proposed by Tenant.

          (b) Tenant shall cooperate with Landlord in the event Landlord wishes to effect a tax-deferred
exchange.

          (c) Tenant shall deliver to Landlord on or before the Substitution Date the Economic
Replacement and any and all information and documentation regarding same as may be reasonably
requested by Landlord.

          (d) Tenant shall execute and deliver to Landlord such instruments and documents as Landlord
shall reasonably require in connection with the Economic Replacement.

As used herein, “Economic Replacement” shall mean (i) a sum of money in immediately available funds
equal to the Market Rent of the Replaced Property plus an amount, if any, which together with the
Market Rent of the Replaced Property, shall be sufficient to enable Landlord to purchase, through
means and sources customarily employed and available to Landlord, direct, non-callable obligations
of the United States of America that provide for payments prior, but as close as possible, to all
successive monthly Base Rent payment dates occurring after the Substitution Date and to the end of
the Lease Term, with each such payment being equal to or greater than the amount of the Base Rent
allocated to the Replaced Property for the balance of the Lease Term, (ii) Guaranteed Investment
Certificates issued by a financial institution acceptable to Landlord that provide for payments
prior, but as close as possible, to all successive monthly Base Rent payment dates occurring after
the Substitution Date and to the end of the Lease Term, with each such payment being equal to or
greater than the amount of the Base Rent allocated to the Replaced Property for the balance of the
Lease Term or (iii) any other economic substitution acceptable to Landlord in its sole good faith
discretion.

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ARTICLE XL

GUARANTY

          Guarantor shall guaranty Tenant’s obligations under this Lease pursuant to the Guaranty
Agreement substantially in the form of Exhibit E, executed and delivered to Landlord as of the
Commencement Date (the “Guaranty”).

ARTICLE XLI

LANDLORD’S RIGHTS UNDER LEASE

          Any and all rights of Landlord under this Lease shall inure to the benefit of Landlord’s
successors and assigns, as well as Landlord’s Lenders and/or any Fee Mortgagees and their
respective successors and assigns as third party beneficiaries.

ARTICLE XLII

PATRIOT ACT 

     Section 42.01 Tenant represents and warrants that none of Tenant, or Guarantor, their
respective officers and directors, and their respective direct or indirect owners regardless of the
number of tiers of ownership (each such owner, a “Beneficial Owner”) (a) is a Person (as
defined below) whose property or interest in property is blocked or subject to blocking pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)), (b) engages in any dealings or transactions prohibited by Section 2 of such executive
order, or is otherwise associated with any such person in any manner violative of Section 2, or (c)
is a Person on the list of Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets
Control regulation or executive order. If Tenant shall at any time determine that an officer,
director or Beneficial Owner of Tenant is or has become subject to Executive Order 13224 or is a
Person listed on the list referenced in foregoing clause (c) or subject to the limitations or
prohibitions referenced in such clause, Tenant will take such steps as a result of such
determination as may be required by applicable law. As used in this Article, “Person”
means any individual, corporation, limited liability company, partnership, joint venture, estate,
trust, unincorporated association, or any other entity, any government or any bureau, department or
agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing.

     Section 42.02 Tenant represents and warrants that each of Tenant and Guarantor is in
compliance with (a) the Trading with the Enemy Act, as amended, and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto, and (b) the
Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct
Terrorism (USA Patriot Act of 2001), and each of the officers, directors and Beneficial

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Owners of Tenant and Guarantor is in compliance with such statutes, enabling legislation or
executive orders to the extent applicable to such Persons.

ARTICLE XLIII

LIQUOR PROVISIONS

          Landlord may require Tenant to obtain Commercial General Liability insurance regarding liquor
liability (in amounts and otherwise consistent with the requirements set forth in Article XI) for
any sites that serve liquor or other alcoholic beverages, and in connection with any repossession
of the Demised Properties pursuant to Article XVI, Tenant (on behalf of itself and any affiliate of
Tenant holding a liquor license with respect to the Demised Properties) shall, at no cost and
expense to Tenant, provide reasonable cooperation in transferring any liquor license to Landlord,
or in assisting Landlord in obtaining a liquor license where necessary or advisable.

ARTICLE XLIV

ADDENDA

          The following exhibits and schedule have been agreed to by the parties and attached hereto or
initialed by the parties prior to the execution hereof, it being the intention of the parties that
they shall become a binding part of this Lease as if fully set forth herein.

	 	 	 
	Exhibit A
	 	Location/Address/Legal Descriptions of Real Properties

	Exhibit B
	 	Form of Tenant’s Estoppel Certificate

	Exhibit C
	 	Form of Memorandum of Lease

	Exhibit D
	 	Form of Individual Lease Agreement

	Exhibit E
	 	Form of Individual Lease Guaranty

	Exhibit F
	 	Form of Guaranty

	Exhibit G
	 	Form of SNDA

	Exhibit H
	 	Form of Alabama Broker’s Lien Affidavit

	Schedule 1
	 	Restaurant Equipment

	Schedule 2
	 	Environmental Reports

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ARTICLE XLV

COUNTERPARTS

          This Lease may be executed in counterparts and shall be binding on all the parties hereto as
if one document had been signed. The delivery of an executed copy of this Lease by facsimile
transmission shall have the same force and effect as the delivery of the original, signed copy of
this Lease.

ARTICLE XLVI

STATE SPECIFIC PROVISIONS 

[SUBJECT TO TENANT’S LOCAL COUNSEL’S REVIEW]

     Section 46.01 Missouri. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Missouri govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Missouri:

          (a) THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE
PARTIES.

     Section 46.02 Texas. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Texas govern the interpretation or enforcement of this Lease with respect to any Demised Properties
located in the State of Texas:

          (a) Landlord and Tenant acknowledge and agree that Landlord and Tenant are knowledgeable and
experienced in commercial transactions. Landlord and Tenant acknowledge and agree that each
provision of this Lease for determining Base Rent, Additional Rent and other charges and amounts
payable by Tenant under this Lease (i) constitutes a “method by which the charge is to be computed”
for purposes of Section 93.012 of the Texas Property Code, and (ii) is commercially reasonable and
valid even though such methods may not state a precise mathematical formula for determining such
charges, as to each such charge or amount. ACCORDINGLY, TENANT VOLUNTARILY AND KNOWINGLY WAIVES TO
THE FULL EXTENT PERMITTED BY APPLICABLE LAW ALL RIGHTS AND BENEFITS OF TENANT UNDER SECTION 93.012
OF THE TEXAS PROPERTY CODE.

          (b) The following is hereby added to the end of subsection 3.03(b):

     “Tenant hereby waives any right it may have under Section 41.413 of the
Texas Tax Code to protest the appraised value of all or any portion of the
Demised Properties, and any right it may have under Section 42.015 of the
Texas Tax Code to appeal an order of the appraisal review board

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with respect to all or any portion of the Demised Properties. Tenant
agrees that Landlord shall have the sole right to protest any appraisals of
the Demised Properties. Tenant also hereby waives any right it may have to
receive a copy of any notice received by Landlord of reappraisal of all or
any portion of the Demised Properties, including without limitation any
notice required under Section 41.413(d) of the Texas Tax Code. Tenant
agrees that Landlord shall not be liable to Tenant for any damages for
Landlord’s failure to send to Tenant a copy of any notice of reappraisal
concerning the Demised Properties, irrespective of any obligation under
applicable law of Landlord to provide such notice. Notwithstanding the
foregoing, if Tenant protests, challenges or appeals any valuation for
property tax purposes of all or any portion of the Demised Properties, and
such valuation increases from the value protested, appealed or challenged,
Tenant agrees to indemnify Landlord on an after-tax basis for any property
taxes due as a result of such increase.”

          (c) Article VIII is hereby amended by inserting the words “and the Texas Accessibilities Act,”
after the phrase “all Environmental Laws and the American With Disabilities Act,” in the first
sentence thereof.

          (d) Section 10.02 of this Lease is hereby deleted and replaced with the following:

     “IN ADDITION TO ANY AND ALL OTHER OBLIGATIONS OF TENANT UNDER THIS
LEASE (INCLUDING WITHOUT LIMITATION UNDER ANY INDEMNITY OR SIMILAR PROVISION
SET FORTH HEREIN), TO THE EXTENT PERMITTED BY LAW TENANT HEREBY FULLY AND
FOREVER RELEASES, DISCHARGES, ACQUITS, INDEMNIFIES, PROTECTS, AND AGREES TO
DEFEND (WITH COUNSEL SELECTED BY TENANT AND APPROVED BY LANDLORD (OR
LANDLORD’S LENDERS), SUCH APPROVAL NOT TO BE UNREASONABLY WITHHELD, DELAYED
OR CONDITIONED) AND HOLD ALL LANDLORD PARTIES WHOLLY FREE AND HARMLESS OF,
FROM AND AGAINST ANY AND ALL LOSSES (INCLUDING WITHOUT LIMITATION, SUBJECT
TO THE TERMS OF THIS SECTION, DIMINUTION IN THE VALUE OF THE DEMISED
PROPERTIES, NORMAL WEAR AND TEAR EXCEPTED), CLAIMS, DEMANDS, ACTIONS, CAUSES
OF ACTION, SETTLEMENTS, OBLIGATIONS, LIABILITIES, COSTS, PENALTIES, FINES,
DAMAGES, INJURY, JUDGMENTS, FORFEITURE, OR EXPENSES (INCLUDING WITHOUT
LIMITATION REASONABLE ATTORNEYS’, CONSULTANT, TESTING AND INVESTIGATION AND
EXPERT FEES AND COURT COSTS), WHETHER KNOWN OR UNKNOWN, WHETHER LIQUIDATED
OR UNLIQUIDATED: (A) ARISING OUT OF OR IN ANY WAY RELATED TO OR RESULTING
DIRECTLY OR

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INDIRECTLY FROM: (I) THE USE, OCCUPANCY OR ACTIVITIES OF TENANT, ITS
SUBTENANTS, AGENTS, EMPLOYEES, CONTRACTORS OR INVITEES IN OR ABOUT THE
DEMISED PROPERTIES; (II) ANY FAILURE ON THE PART OF TENANT TO COMPLY WITH
ANY APPLICABLE LAW, CODE OR REGULATION, INCLUDING WITHOUT LIMITATION ALL
ENVIRONMENTAL LAWS; (III) ANY DEFAULT UNDER THIS LEASE OR ANY BREACH OR
DEFAULT BY TENANT UNDER ANY OTHER TRANSACTION DOCUMENT (AS DEFINED BELOW)
(INCLUDING WITHOUT LIMITATION AS A RESULT OF ANY TERMINATION BY LANDLORD,
FOLLOWING AN EVENT OF DEFAULT, OF ANY SUBLEASE, LICENSE, CONCESSION, OR
OTHER CONSENSUAL ARRANGEMENT FOR POSSESSION ENTERED INTO BY TENANT AND
AFFECTING ANY OF THE DEMISED PROPERTIES PURSUANT TO SECTION 16.07); (IV) ANY
OTHER LOSS, INJURY OR DAMAGE DESCRIBED IN SECTION 10.01 ABOVE; (V) IN
CONNECTION WITH MOLD AT ANY DEMISED PROPERTY; (VI) WORK OR LABOR PERFORMED,
MATERIALS OR SUPPLIES FURNISHED TO OR AT THE REQUEST OF TENANT OR IN
CONNECTION WITH OBLIGATIONS INCURRED BY OR PERFORMANCE OF ANY WORK DONE FOR
THE ACCOUNT OF TENANT IN, ON OR ABOUT THE DEMISED PROPERTIES; AND (B)
ARISING OUT OF OR IN ANY WAY RELATED TO OR RESULTING DIRECTLY OR INDIRECTLY
FROM THE PRESENCE OR “RELEASE” (AS DEFINED IN ARTICLE XXXVII) AT, ON, UNDER,
TO OR FROM THE DEMISED PROPERTIES OF HAZARDOUS MATERIALS, EVEN THOUGH CAUSED
IN WHOLE OR IN PART BY THE NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT) OF
LANDLORD PARTIES. ALL OF THE PERSONAL OR ANY OTHER PROPERTY OF TENANT KEPT
OR STORED AT, ON OR ABOUT THE DEMISED PROPERTIES SHALL BE KEPT OR STORED AT
THE SOLE RISK OF TENANT. WITHOUT LIMITING THE FOREGOING, EXCEPT AS PROVIDED
IN ARTICLE XXXV, TENANT SHALL PAY ON DEMAND ALL FEES AND COSTS OF LANDLORD
(INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES AND COSTS) IN CONNECTION
WITH ANY ENFORCEMENT BY LANDLORD OF THE TERMS OF THIS LEASE AND ANY
AMENDMENT TO THIS LEASE REQUESTED BY TENANT. NOTWITHSTANDING THE FOREGOING,
THE INDEMNITY SET FORTH IN THIS SECTION 10.02 SHALL NOT BE APPLICABLE TO ANY
CLAIM AGAINST ANY LANDLORD PARTY TO THE EXTENT, AND ONLY TO THE EXTENT, SUCH
CLAIM IS DIRECTLY ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT
OF ANY LANDLORD PARTY, AS DETERMINED BY A FINAL

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NONAPPEALABLE JUDGMENT (OR BY A JUDGMENT WHICH SUCH LANDLORD PARTY
ELECTS NOT TO APPEAL) BY A COURT OF COMPETENT JURISDICTION. “TRANSACTION
DOCUMENTS” MEANS COLLECTIVELY THIS LEASE, THE GUARANTY, THE PURCHASE AND
SALE AGREEMENT BETWEEN LANDLORD AND TENANT, THE DEEDS EXECUTED BY TENANT IN
FAVOR OF LANDLORD RELATING TO THE DEMISED PROPERTIES AND THE ESTOPPEL
CERTIFICATES EXECUTED BY TENANT IN FAVOR OF LANDLORD RELATING TO THE DEMISED
PROPERTIES, EACH OF WHICH ARE DATED OF EVEN DATE HEREWITH, AND ANY OTHER
AGREEMENTS ENTERED INTO BY AND BETWEEN LANDLORD AND TENANT REGARDING ANY OF
THE FOREGOING OR THE DEMISED PROPERTIES.”

          (e) The last sentence of Section 16.02(a) is hereby amended as follows:

     “If Landlord elects to terminate this Lease or to terminate Tenant’s
right to possession without terminating the Lease, or if Tenant’s right to
possession is otherwise terminated by operation of law, then Landlord may,
to the extent not prohibited under applicable law, recover as damages from
Tenant the following: (i) all Rent then due under the Lease through the
date of termination; (ii) the Rent due for the remainder of the Lease Term
in excess of the fair market rental value of the Demised Properties for the
remainder of the Lease Term, including without limitation any and all
Additional Rent (each discounted by the discount rate of the Federal Reserve
Bank of San Francisco plus one percent (1%)); (iii) the cost of reletting
the Demised Properties, including without limitation the anticipated period
of vacancy until such Demised Properties can be re-let at their fair market
rental values; and (iv) any other costs and expenses that Landlord may
reasonably incur in connection with the Event of Default.”

          (f) The following is hereby added to the end of Section 16.02 as subsections 16.02(c-d):

     “(c) Alter Locks. Landlord may alter the locks and any other
security device or devices which allow Tenant access to the Demised
Properties and/or the building of which the Demised Properties form a part,
and Landlord shall not be required to provide a new key or right of access
to Tenant, and restrict or terminate any right to use parking facilities
associated with such building as well as utility services to the Demised
Properties. This Section is intended to and shall supersede the provisions
of Section 93.002 of the Texas Property Code. TENANT AGREES THAT LANDLORD
SHALL NOT BE LIABLE FOR ANY

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DAMAGES RESULTING TO TENANT FROM SUCH ACTION CAUSED BY NEGLIGENCE OF
LANDLORD.”

     “(d) Perform Acts. Landlord may enter upon the Demised
Properties without being liable for prosecution or any claim of damages
therefor, and do whatever Tenant is obligated to do under the terms of this
Lease; and Tenant agrees to reimburse Landlord on demand for any expenses
including, without limitation, reasonable attorneys’ fees which Landlord may
incur in thus effecting compliance with Tenant’s obligations under this
Lease, together with interest thereon at the maximum rate allowed under
applicable law from the date Landlord incurs the expense in question until
Landlord is reimbursed therefor. TENANT AGREES THAT LANDLORD SHALL NOT BE
LIABLE FOR ANY DAMAGES RESULTING TO TENANT FROM SUCH ACTION, WHETHER CAUSED
BY NEGLIGENCE OF LANDLORD OR OTHERWISE.”

          (g) The following is hereby added to the end of Section 16.06 of this Lease:

     “For purposes of this Lease, “the maximum rate allowed under applicable
law” shall mean the maximum nonusurious interest rate, if any, that at any
time, or from time to time, may be contracted for, taken, reserved, charged,
or received on the indebtedness owed to Landlord under this Lease under the
laws which are presently in effect of the United States of America and the
State of Texas applicable to Landlord and such indebtedness or, to the
extent permitted by law, under such applicable laws of the United States of
America and the State of Texas which may hereafter be in effect and which
allow a higher maximum nonusurious interest rate than applicable laws now
allow. To the extent that Chapter 303 of the Texas Finance Code, as amended
(the “Act”), is relevant to Landlord for the purposes of determining
the maximum rate permitted by law, Landlord elects to determine such
applicable legal rate under the Act pursuant to the “weekly ceiling,”
pursuant to and subject to the terms of the Act, and further subject to any
right Landlord may have subsequently, under applicable law, to change the
method of determining the maximum rate permitted by law.”

          (h) Article XXIV of this Lease is hereby deleted and replaced with the following:

     “If Tenant holds over in possession after the expiration of the Lease
Term, then such holding over shall not be deemed to extend the Lease Term or
renew this Lease, but rather the tenancy thereafter shall continue as a
tenancy at sufferance pursuant to the terms and conditions herein contained,
at One Hundred Fifty percent (150%) of the Base Rent otherwise then
applicable (in addition to all Additional Rent); and Tenant

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shall be responsible for the consequences of any unauthorized holdover
and shall indemnify, defend, protect (with counsel selected by Landlord) and
hold Landlord Parties wholly free and harmless of, from and against any and
all damages, losses, costs, expenses and claims arising therefrom, including
reasonable attorneys fees and costs. TENANT AGREES THAT LANDLORD PARTIES
SHALL NOT BE LIABLE FOR ANY DAMAGES RESULTING TO TENANT FROM SUCH ACTION,
EVEN THOUGH CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF LANDLORD
PARTIES.”

          (i) The following is hereby added to the end of subsection (2) of the definition of
“Environmental Laws” in subsection 37.01(a) of this Lease:

“including without limitation, the Texas Solid Waste Disposal Act, as now or
hereafter amended, Tex. Rev. Civ. Stat. Ann. Articles 4477-7 et seq., the
Texas Water Quality Control Act, as now or hereafter amended, Tex. Water
Code Ann. Sections 26.001 et seq., the Texas Clean Air Act, as now or
hereafter amended, Tex. Rev. Civ. Stat. Ann. Articles 4477-5 et seq., and
all other corresponding or related State of Texas and local statutes,
ordinances and regulations”

          (j) Section 37.03 of this Lease is hereby deleted and replaced with the following:

     “IN ADDITION TO ANY OTHER OBLIGATION HEREIN, TENANT SHALL DEFEND,
INDEMNIFY AND HOLD LANDLORD PARTIES FREE AND HARMLESS FROM ANY AND ALL
CLAIMS, LOSSES, LIABILITIES AND OTHER OBLIGATIONS OF ANY KIND WHATSOEVER
THAT MAY BE MADE AGAINST OR INCURRED BY LANDLORD PARTIES IN CONNECTION WITH
(I) THE VIOLATION OF ANY ENVIRONMENTAL LAW, OR (II) HAZARDOUS MATERIALS OR
ENVIRONMENTAL CONDITIONS AT, ON, UNDER, ABOUT OR FROM THE DEMISED PROPERTIES
DURING THE LEASE TERM (AND IN THE EVENT OF ANY HOLDING OVER BY TENANT,
DURING ANY PERIOD WHICH TENANT OCCUPIES THE RELEVANT DEMISED PROPERTY),
INCLUDING WITHOUT LIMITATION ANY AND ALL COSTS AND FEES OF ATTORNEYS OR
EXPERTS INCURRED BY LANDLORD IN DEFENDING AGAINST SAME EVEN THOUGH CAUSED IN
WHOLE OR IN PART BY THE NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT) OF
LANDLORD PARTIES; PROVIDED, HOWEVER, THAT THE FOREGOING INDEMNITY SHALL NOT
BE APPLICABLE TO ANY LANDLORD PARTY TO THE EXTENT THE APPLICABLE CLAIM IS
DIRECTLY ATTRIBUTED TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY
LANDLORD PARTY, AS DETERMINED

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BY A FINAL NONAPPEALABLE JUDGMENT (OR BY A JUDGMENT WHICH SUCH LANDLORD
PARTY ELECTS NOT TO APPEAL) BY A COURT OF COMPETENT JURISDICTION. THIS AND
ANY OTHER RIGHT OF LANDLORD UNDER THIS LEASE SHALL INURE TO THE BENEFIT OF
LANDLORD’S SUCCESSORS AND ASSIGNS, AS WELL AS LANDLORD’S LENDERS AND/OR FEE
MORTGAGEES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS AS THIRD PARTY
BENEFICIARIES.”

          (k) Section 37.05 of this Lease is hereby deleted and replaced with the following:

     “IN ADDITION TO ANY OTHER OBLIGATIONS HEREIN, TENANT SHALL BE SOLELY
RESPONSIBLE FOR AND SHALL INDEMNIFY AND HOLD HARMLESS ALL LANDLORD PARTIES
FROM AND AGAINST ANY AND ALL PRIVATE OR GOVERNMENTAL CLAIMS, LAWSUITS,
ADMINISTRATIVE PROCEEDINGS, JUDGMENTS, PENALTIES, FINES, PROCEEDINGS, LOSS,
DAMAGE, COST, EXPENSE OR LIABILITY DIRECTLY OR INDIRECTLY ARISING OUT OF OR
ASSOCIATED IN ANY MANNER WHATSOEVER WITH TENANT’S USE OR THE PRESENCE OF
HAZARDOUS MATERIALS OR RELEASE OF HAZARDOUS MATERIALS AT, ON, UNDER, ABOUT
OR FROM THE DEMISED PROPERTIES DURING THE LEASE TERM (AND IN THE EVENT OF
ANY HOLDING OVER BY TENANT, DURING ANY PERIOD WHICH TENANT OCCUPIES THE
RELEVANT DEMISED PROPERTY), EVEN THOUGH CAUSED IN WHOLE OR IN PART BY THE
NEGLIGENCE (WHETHER SOLE, JOINT OR CONCURRENT) OF LANDLORD PARTIES.
TENANT’S INDEMNITY AND RELEASE INCLUDES, WITHOUT LIMITATION: (I) THE COSTS
ASSOCIATED WITH REMEDIAL ACTIVITIES, INCLUDING ALL NECESSARY PLANS AND
REPORTS, INCURRED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY, OR ANY OTHER
FEDERAL, STATE OR LOCAL GOVERNMENTAL AGENCY OR ENTITY OR BY ANY OTHER
PERSON, INCURRED PURSUANT TO THE CERCLA, RCRA, OR ANY OTHER APPLICABLE
ENVIRONMENTAL LAWS; (II) ANY OVERSIGHT CHARGES, FINES, DAMAGES OR PENALTIES
ARISING FROM THE PRESENCE OR RELEASE OF HAZARDOUS MATERIALS, AND ANY RELATED
REMEDIAL ACTIVITIES, INCURRED PURSUANT TO THE PROVISIONS OF CERCLA, RCRA, OR
ANY OTHER APPLICABLE ENVIRONMENTAL LAWS; (III) ANY LIABILITY TO THIRD
PARTIES ARISING OUT OF THE PRESENCE OR RELEASE OF HAZARDOUS MATERIALS FOR
PERSONAL INJURY, BODILY INJURY, OR PROPERTY DAMAGE ARISING UNDER ANY
STATUTORY OR COMMON LAW THEORY, INCLUDING

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DAMAGES ASSESSED FOR THE MAINTENANCE OF A PUBLIC OR PRIVATE NUISANCE,
THE COSTS OF REMEDIAL ACTIVITIES, OR FOR THE CARRYING ON OF AN ABNORMALLY
DANGEROUS ACTIVITY; (IV) ALL DIRECT OR INDIRECT COMPENSATORY,
CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING OUT OF ANY CLAIM BASED ON THE
PRESENCE OR RELEASE OF HAZARDOUS MATERIALS OR DAMAGE OR THREATENED DAMAGE TO
ENVIRONMENTAL CONDITIONS; (V) ANY AND ALL REASONABLE COSTS, FEES AND
EXPENSES OF ATTORNEYS, CONSULTANTS AND EXPERTS INCURRED OR SUSTAINED IN
MAKING ANY INVESTIGATION ON ACCOUNT OF ANY CLAIM, IN PROSECUTING OR
DEFENDING ANY ACTION BROUGHT IN CONNECTION THEREWITH, IN OBTAINING OR
SEEKING TO OBTAIN A RELEASE THEREFROM, OR IN ENFORCING ANY OF THE AGREEMENTS
HEREIN CONTAINED; (VI) RENT DURING ANY PERIOD OF REMEDIAL ACTIVITIES EQUAL
TO THE BASE RENT THEN IN EFFECT, OR IF THE LEASE HAS TERMINATED, THE BASE
RENT THAT WAS IN EFFECT ON THE TERMINATION DATE; AND (VII) ANY ACTION OR
OMISSION OR USE OF THE DEMISED PROPERTIES BY ANY SUBTENANT; PROVIDED,
HOWEVER, THAT THE FOREGOING INDEMNITY SHALL NOT BE APPLICABLE TO ANY
LANDLORD PARTY TO THE EXTENT THE APPLICABLE CLAIM IS DIRECTLY ATTRIBUTED TO
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY LANDLORD PARTY, AS
DETERMINED BY A FINAL NONAPPEALABLE JUDGMENT (OR BY A JUDGMENT WHICH SUCH
LANDLORD PARTY ELECTS NOT TO APPEAL) BY A COURT OF COMPETENT JURISDICTION.
THE FOREGOING INDEMNITY SHALL APPLY TO TENANT’S USE OF HAZARDOUS MATERIALS
IRRESPECTIVE OF WHETHER ANY OF TENANT’S ACTIVITIES WERE OR WILL BE
UNDERTAKEN IN ACCORDANCE WITH ENVIRONMENTAL LAWS OR OTHER APPLICABLE LAWS,
REGULATIONS, CODES AND ORDINANCES. THIS INDEMNITY IS INTENDED TO BE
OPERABLE UNDER 42 U.S. C.? 9607(E)(1). TENANT SPECIFICALLY AGREES THAT IT
SHALL NOT SUE OR SEEK CONTRIBUTION FROM ANY INDEMNITY OR ANY SUCCESSORS OR
ASSIGNS THEREOF IN ANY MATTER RELATING TO ANY HAZARDOUS MATERIAL LIABILITY
EXCEPT AS A RESULT OF THE GROSS NEGLIGENCE OF LANDLORD OR OTHER LANDLORD
PARTIES ON THE DEMISED PROPERTIES. ALL COSTS AND EXPENSES RELATED TO THIS
PARAGRAPH INCURRED BY LANDLORD SHALL BE REPAID PROMPTLY BY TENANT TO
LANDLORD. THIS SECTION SHALL SURVIVE TERMINATION OF THE LEASE.”

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          (l) The following is hereby added to the end of Section 46.03 of this Lease as subsection
46.03(h):

     “(h) TO THE EXTENT ALLOWED BY LAW, THIS SECTION 46.03 SHALL BE
EFFECTIVE AS A WAIVER OF, AND TENANT WAIVES, ANY AND ALL RIGHTS, REMEDIES,
CLAIMS AND DEFENSES TO WHICH TENANT MAY OTHERWISE HAVE BEEN ENTITLED UNDER
ANY SURETYSHIP LAWS OR SIMILAR LAWS IN EFFECT FROM TIME TO TIME INCLUDING,
BUT NOT LIMITED TO, CHAPTER 34 OF THE TEXAS BUSINESS AND COMMERCE CODE, RULE
31 OF THE TEXAS RULES OF CIVIL PROCEDURE, AND SECTION 17.001 OF THE TEXAS
CIVIL PRACTICE & REMEDIES CODE. IN ADDITION, TO THE EXTENT ALLOWED BY LAW,
TENANT WAIVES ALL RIGHTS, REMEDIES, CLAIMS AND DEFENSES UNDER SECTIONS
91.004, 93.002 AND 93.003 OF THE TEXAS PROPERTY CODE AND ANY DEFENSE, RIGHT
OF OFFSET OR OTHER CLAIM WHICH TENANT MAY HAVE AGAINST LANDLORD, WHICH
TENANT MAY HAVE AGAINST LANDLORD, AND ALL RIGHTS OF REDEMPTION, HOMESTEAD,
DOWER, AND OTHER RIGHTS OR EXEMPTIONS OF EVERY KIND, WHETHER UNDER COMMON
LAW OR BY STATUTE. TENANT HEREBY SPECIFICALLY WAIVES ALL RIGHTS WHICH IT
MIGHT OTHERWISE HAVE TO WITHHOLD THE PAYMENT OF RENT. THE IMMEDIATELY
PRECEDING SENTENCE SHALL NOT BE DEEMED TO DENY TENANT THE ABILITY OF
PURSUING ALL RIGHTS GRANTED IT UNDER THIS LEASE OR AT LAW (WITH THE
EXCEPTION OF ANY RIGHT OF TENANT TO OFFSET OR WITHHOLD THE PAYMENT OF RENT,
WHICH IS HEREBY WAIVED TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW);
HOWEVER, AS CONTEMPLATED IN TEXAS RULE OF CIVIL PROCEDURE 174(b), AS AMENDED
FROM TIME TO TIME, AT THE DIRECTION OF LANDLORD, TENANT’S CLAIMS IN THIS
REGARD SHALL BE LITIGATED IN PROCEEDINGS DIFFERENT FROM ANY LITIGATION
INVOLVING RENT CLAIMS OR OTHER CLAIMS BY LANDLORD AGAINST TENANT (I.E., EACH
PARTY MAY PROCEED TO A SEPARATE JUDGMENT WITHOUT CONSOLIDATION, COUNTERCLAIM
OR OFFSET AS TO THE CLAIMS ASSERTED BY THE OTHER PARTY). TO THE EXTENT
ALLOWED BY LAW, TENANT ADDITIONALLY WAIVES THE BENEFIT OF ANY STATUTE OF
LIMITATIONS AFFECTING TENANT’S LIABILITY HEREUNDER.”

          (m) With respect to a property substitution under Articles XII, XIII, XVI or XXXIX under the
Lease, the parties shall timely satisfy the applicable statutory requirements of

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Texas Water Code Chapter 49, Texas Natural Resources Code Section 33.135 and Texas Property
Code Section 5.011, and any other applicable statutory notice that is then in effect.

          (n) Landlord and Tenant agree that the provisions in the Lease for an SNDA Default Fee and an
Estoppel Certificate Default Fee are liquidated damages for the consequences of being imposed, and
that it would be difficult or impossible to ascertain Landlord’s damages for Tenant’s failure to
comply with the applicable provisions in this Lease causing them to be so imposed, and that the
SNDA Default Fee and the Estoppel Certificate Default Fee are a reasonable estimate of the damages
which Landlord would incur and not a penalty.

     Section 46.03 Florida. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Florida govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Florida:

          (a) The following is added to the end of Article VI (c): “Prior to commencement by Tenant of
any work on the Demised Properties, Tenant will record or file a notice of commencement
(“Notice of Commencement”) in the land records of the county in which the Demised
Properties is located identifying Tenant as the party for whom such work is being performed,
stating such other matters as may be required by law and requiring the service of copies of all
notices, liens or claims of lien upon Landlord. The Notice of Commencement shall clearly reflect
that the interest of Tenant in the Premises is that of a leasehold estate. A copy of the Notice of
Commencement will be furnished to and approved by Landlord and its attorneys prior to the recording
or filing.”

          (b) The following is added to the end of Article VI as new subsections (f) and (g):

     “(f) The interest of Landlord in the Demised Properties shall not be
subject in any way to any liens, including any lien rights under Chapter
713, Florida Statutes, for improvements to or other work performed to the
Demised Properties by or on behalf of Tenant. Tenant shall have no power or
authority to create any lien or permit any lien to attach to the present
estate, reversion, or other interest of the Landlord in the Demised
Properties. All mechanics, materialmen, contractors, laborers, artisans,
suppliers, and other parties contracting with Tenant, its representatives or
contractors with respect to the Demised Properties are hereby given notice
that they must look solely to the Tenant to secure payment for any labor,
services or materials furnished or to be furnished to Tenant, or to anyone
holding any of the Demised Properties through or under Tenant during the
term of this Lease. The foregoing provisions are made with express
reference to Section 713.10, Florida Statutes (2005). Tenant shall notify
every contractor making improvements to the Demised Properties that the
interest of the Landlord in the Demised Properties shall not be subject to
liens for improvements to or other work performed with respect to the
Demised Properties by or on behalf of Tenant..

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     “(g) Tenant shall discharge any lien filed against the Demised
Properties, the Building or the Land, or any part thereof, for work done or
materials furnished at Tenant’s request with respect to the Demised
Properties as provided above in subsection (e) of this Article VI. The
failure of Tenant to do so shall be a material default hereunder. If Tenant
fails to keep this covenant, in addition to any other remedies available to
Landlord under this Lease, Tenant agrees to pay Landlord, as Additional
Rent, the sum equal to the amount of the lien thus discharged by Landlord,
plus all costs and expenses, including without limitation attorney’s and
paralegal’s fees and court costs, incurred by Landlord in discharging such
lien.”

          (c) The following is added to Section 16.02 as a new subsection 16.02(c): “Landlord may pursue
any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the
state in which the Land is located.”

          (d) The following is added to the end of Article XVIII: “No statement on a payment check from
Tenant or in a letter accompanying a payment check shall be binding on Landlord. Landlord may,
with or without notice to Tenant, negotiate such check without being bound to the conditions of
such statement.”

          (e) Radon. Pursuant to Florida Statute 404.056(8), Tenant is hereby notified as
follows: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building
in sufficient quantities, may present health risks to persons who are exposed to it over time.
Levels of radon that exceed federal and state guidelines have been found in buildings in Florida.
Additional information regarding radon and radon testing may be obtained from your county health
unit.

     Section 46.04 Louisiana. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Louisiana govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Louisiana:

          (a) Louisiana Terminology. The terms “realty,” “real property” and “real estate”
shall mean immovable property; the term “fee estate” shall mean full ownership; the term “personal
property” shall mean movable property; the term “tangible property” shall mean corporeal property;
the term “intangible property” shall mean incorporeal property; the term “easement” shall mean
servitude; the term “buildings” shall include other constructions; the term “fixtures” shall mean
“component parts;” the phrase “covenant running with the land” and other words of similar import
shall mean a real right or a recorded lease of immovable property; the term “county” shall mean
parish; the term “joint and several” shall mean in solido; the terms “deed in lieu of foreclosure,”
“conveyance in lieu of foreclosure” and words of similar import shall mean a dation en paiement;
the term “tenancy at sufferance” in Article XXIV shall mean a month to month tenancy; the term
“unlawful detainer action” shall mean an eviction proceeding; the term “merger” shall mean
confusion; and the term “common law” shall mean civil law.

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          (b) Waiver of Notice to Vacate. Upon termination of Tenant’s right of occupancy under
the terms of this Lease, Landlord or its agent may immediately institute eviction proceedings in
accordance with Chapter 2 of Title XI of the Louisiana Code of Civil Procedure. Tenant
specifically waives all notices to vacate, including but not limited to the notice to vacate
specified in Louisiana Civil Code of Procedure Article 4701, or any successor provision of law.

          (c) Waiver of Claim for Compensation. Tenant waives any and all claims for payment or
other compensation, whether during the Lease Term or at the termination of the Lease, for the loss
of ownership to Landlord of any property located in or on the Land, including without limitation
(i) any buildings, improvements or other constructions, or (ii) any things incorporated in or
attached so as to become a component part of the immovable property.

          (d) Assumption of Responsibility by Tenant. In accordance with La. R.S. 9:3221,
Tenant hereby assumes full responsibility for the condition of the Demised Properties, all
buildings and improvements now or hereafter located thereon and all component parts thereof.
Accordingly, Landlord shall have no liability for injury caused by any defect therein to Tenant or
anyone on the Demised Properties who derives his or her right to be thereon from Tenant.

          (e) Light and View. This Lease does not entitle Tenant to rights of light or view and
Tenant shall not be entitled to terminate this Lease, reduce the rent or exercise any other right
or remedy by reason of the deprivation thereof.

          (f) ACKNOWLEDGMENT OF WAIVERS OF WARRANTY. BY ITS INITIALING OF THIS SECTION, TENANT
ACKNOWLEDGES THAT THE WAIVERS OF WARRANTY IN THIS LEASE, INCLUDING THE WAIVERS IN ARTICLE V AND
ARTICLE X AND XXXVII, HAVE BEEN BROUGHT TO THE ATTENTION OF TENANT AND ARE GRANTED KNOWINGLY AND
VOLUNTARILY.                     (Tenant’s initials)

Section 46.05 INTENTIONALLY DELETED

     Section 46.06 Georgia. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Georgia govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Georgia:

          (a) The following is hereby added to the end of Article VII (Repairs and Maintenance):
“Tenant hereby expressly waives any rights and defenses that may arise under O.C.G.A. Section
44-7-13 as Tenant has accepted the burden and obligation of maintaining and repairing the entirety
of the Demised Properties.”

          (b) All references herein to “attorneys’ fees” or “attorney’s fees” shall be deemed to refer
to “reasonable attorney’s (attorneys’) fees actually incurred”.

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     Section 46.07 Alabama. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Alabama govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Alabama:

          (a) In addition to the representations in Section 10.03 hereof, Landlord shall provide Tenant
and Tenant shall provide Landlord with a duly executed Broker’s Lien Affidavit in the form attached
hereto as Exhibit H.

          (b) Any and all transfers of or applications for liquor licenses provided for under this Lease
shall be made pursuant to the Alabama Alcoholic Beverage Licensing Code as codified at Alabama Code
§ 28-3A-1, et seq., and the Alabama Alcoholic Beverage Control Board regulations, specifically
Regulation 20-x-5-.10.

          (c) At any time Tenant desires to substitute a portion of the Demised Properties with one or
more Replacement Properties pursuant to Section 39.01, in addition to the requirements of Section
39.01, Tenant shall also provide Landlord with an amended or new Memorandum of Lease covering the
Replacement Property and shall be responsible for all recording costs associated with the recording
of the amended or new Memorandum of Lease.

          (d) Section 16.02(a) is hereby deleted in its entirety and the following substituted therefor:

     (i) Termination. Landlord shall have the right, with or without notice or
demand, immediately upon expiration of any applicable grace period specified herein, to
terminate this Lease (or Tenant’s possession to any of the Demised Properties), and at any
time thereafter recover possession of all or any portion of the Demised Properties or any
part thereof and expel and remove therefrom Tenant and any other person occupying the same
by any lawful means, and repossess and enjoy all or any portion of the Demised Properties
without prejudice to any of the remedies that Landlord may have under this Lease. If
Landlord elects to terminate the Lease (or to terminate Tenant’s right of possession),
Landlord shall also have the right to reenter the Demised Properties and take possession of
and remove all personal property of Tenant, if any, in such Demised Properties. In
connection with any such repossession Tenant (and any affiliate of Tenant holding a liquor
license, if any, with respect to the Demised Properties) shall cooperate reasonably with
Landlord and any applicable government agency in transferring its liquor license, if any, to
Landlord, or in assisting Landlord in obtaining a liquor license, all at no cost or expense
to Tenant. Any and all reasonable costs of Landlord (including, without limitation,
Landlord’s reasonable attorneys’ and consultants’ fees and costs) in obtaining a new liquor
license shall be paid by Tenant, which costs shall be considered Rent under this Lease for
the purposes of calculating damages due to Landlord hereunder. If Landlord elects to
terminate this Lease and/or Tenant’s right to possession, or if Tenant’s right to possession
is otherwise terminated by operation of law, Landlord may recover as damages from Tenant the
following: (i) all Rent then due under the Lease through the date of termination;
plus (ii) the Rent due for the remainder of the Lease Term in excess of the fair
market rental value of the Demised Properties for the remainder of the Lease

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Term, including without limitation any and all Additional Rent (each discounted by the
discount rate of the Federal Reserve Bank of San Francisco plus one percent (1%));
plus (iii) the cost of reletting the Demised Properties, including without
limitation the anticipated period of vacancy until such Demised Properties can be re-let at
their fair market rental values; plus (iv) any other costs and expenses that
Landlord may reasonably incur in connection with the Event of Default; less (x) any
costs avoided by Landlord due to Landlord no longer having to perform under this Lease due
to its termination, and (y) any amounts received by Landlord in Landlord’s attempts to
mitigate its damages.

     Section 46.08 INTENTIONALLY DELETED

     Section 46.09 INTENTIONALLY DELETED

     Section 46.10 Kentucky. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the Commonwealth
of Kentucky govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the Commonwealth of Kentucky:

          (a) The remedies available to Landlord in Section 16.02 of this Lease shall include, but are
not limited to, the rights and remedies set forth in KRS Section 383.010, et. seq., in accordance
with the terms thereof.

     Section 46.11 Oklahoma. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Oklahoma govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Oklahoma:

          (a) Real Property located in the State of Oklahoma shall not include oil, gas, and other
minerals located therein or thereunder.

     Section 46.12 Pennsylvania. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the State of
Pennsylvania govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of Pennsylvania: The following is hereby added to the end of
Section 16.02(c):

          (a) CONFESSION OF JUDGMENT FOR POSSESSION OF ANY DEMISED PREMISES LOCATED IN THE
COMMONWEALTH OF PENNSYLVANIA. TENANT HEREBY EXPRESSLY AUTHORIZES THE PROTHONOTARY, CLERK OR
ANY ATTORNEY OF ANY COURT OF RECORD TO ACCEPT SERVICE OF PROCESS FOR, TO APPEAR FOR, AND TO CONFESS
JUDGMENT AGAINST TENANT AND ALL PERSONS CLAIMING UNDER TENANT IN ANY AND ALL ACTIONS BROUGHT
HEREUNDER BY LANDLORD AGAINST TENANT TO RECOVER POSSESSION OF ANY DEMISED PREMISES LOCATED IN THE
COMMONWEALTH OF PENNSYLVANIA (IN EJECTMENT OR OTHERWISE),

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WITHOUT ANY LIABILITY ON THE PART OF SAID ATTORNEY, FOR WHICH THIS LEASE SHALL BE SUFFICIENT
WARRANT, AND TENANT AGREES THAT UPON THE ENTRY OF SUCH JUDGMENT, A WRIT OF POSSESSION OR OTHER
APPROPRIATE PROCESS MAY ISSUE FORTHWITH (WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER).

          (b) IN ANY SUCH ACTION, LANDLORD SHALL FIRST CAUSE TO BE FILED IN SUCH ACTION AN AFFIDAVIT
MADE BY LANDLORD OR SOMEONE ACTING FOR IT SETTING FORTH FACTS NECESSARY TO AUTHORIZE THE ENTRY OF
JUDGMENT, OF WHICH FACTS SUCH AFFIDAVIT SHALL BE CONCLUSIVE EVIDENCE, AND IF A TRUE COPY OF THIS
LEASE BE FILED IN SUCH ACTION (AND OF THE TRUTH OF THE COPY SUCH AFFIDAVIT SHALL BE SUFFICIENT
EVIDENCE), IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF ATTORNEY, ANY RULE OF
COURT, CUSTOM OR PRACTICE TO THE CONTRARY NOTWITHSTANDING. TENANT AND ALL PERSONS CLAIMING UNDER
TENANT HEREBY RELEASE LANDLORD FROM ANY CLAIMS ARISING FROM ANY ERRORS OR DEFECTS WHATSOEVER IN
ENTERING SUCH ACTION OR JUDGMENT, IN CAUSING SUCH WRIT OF POSSESSION OR OTHER PROCESS TO BE ISSUED
OR IN ANY PROCEEDING THEREON OR CONCERNING THE SAME, AND HEREBY AGREE THAT NO WRIT OF ERROR OR
OBJECTION SHALL BE MADE OR TAKEN THERETO.

          (c) THIS WARRANT OF ATTORNEY SHALL NOT BE EXHAUSTED BY ONE EXERCISE, BUT JUDGMENT MAY BE
CONFESSED FROM TIME TO TIME, AS OFTEN AS OCCASION THEREFOR SHALL EXIST. SUCH POWERS MAY BE
EXERCISED DURING AS WELL AS AFTER THE EXPIRATION OR TERMINATION OF THE LEASE TERM AND DURING AND AT
ANY TIME AFTER ANY EXTENSION OR RENEWAL OF THE LEASE TERM.

          (d) THIS SECTION 16.02(c) SETS FORTH A WARRANT OF ATTORNEY FOR AN ATTORNEY TO CONFESS JUDGMENT
AGAINST TENANT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS JUDGMENT AGAINST TENANT, TENANT,
FOLLOWING CONSULTATION WITH (OR DECISION NOT TO CONSULT WITH) SEPARATE COUNSEL FOR TENANT AND WITH
KNOWLEDGE OF THE LEGAL EFFECT HEREOF, HEREBY KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVES
UNCONDITIONALLY ANY AND ALL RIGHTS TENANT HAS OR MAY HAVE TO PRE-JUDGMENT AND PRE-EXECUTION NOTICE
AND AN OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE UNITED STATES OF
AMERICA, THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE.

          (e) TENANT SPECIFICALLY ACKNOWLEDGES THAT LANDLORD HAS RELIED ON THE WARRANT OF ATTORNEY SET
FORTH IN THIS SECTION 16.2(c) IN ENTERING INTO THIS LEASE WITH TENANT AND THAT THE LANDLORD-TENANT
RELATIONSHIP CREATED HEREBY IS COMMERCIAL IN NATURE.

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LAND AND BUILDING LEASE

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     Section 46.13 Virginia. Without limiting the choice of law provision set forth in
Article XXXII, the following provisions shall apply to the extent that the laws of the Commonwealth
of Virginia govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the Commonwealth of Virginia:

          (a) For purposes of Section 55-2 of the Code of Virginia (1950), as amended, this Lease shall
constitute a Deed of Lease.

     Section 46.14 North Carolina. Without limiting the choice of law provision set forth
in Article XXXII, the following provisions shall apply to the extent that the laws of the State of
North Carolina govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of North Carolina:

          (a) All references herein to “attorney’s fees”, “attorneys’ fees”, and “reasonable attorney’s
(attorneys’) fees” shall be deemed to refer to reasonable attorney’s (attorneys’) fees actually
incurred without reference to the provisions of Section 6-21.2 of the North Carolina General
Statutes.

     Section 46.15 California. Without limiting the choice of law provision set forth
in Article XXXII, the following provisions shall apply to the extent that the laws of the State of
California govern the interpretation or enforcement of this Lease with respect to any Demised
Properties located in the State of California:

          (a) Effect of Waivers. The provisions of Article V are intended to release
Landlord from and against any liability arising from the condition of the Demised Properties. In
furtherance thereof, Tenant hereby waives the benefits of California Civil Code Section 1542, which
provides as follows: “A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the release, which if known by him
or her must have materially affected his or her settlement with the debtor.”

          (b) Eminent Domain. The provisions of this Lease, including those in Article XIII,
constitute an express agreement between Landlord and Tenant that applies in the event there is any
taking of any part of the Demised Property for any public or quasi-public use under any statute or
by right of eminent domain or by purchase in lieu thereof (collectively, “Condemnation”). Tenant
hereby waives all rights it may have under California Code of Civil Procedure Section 1265.130, or
otherwise, to terminate this Lease based on a total or partial Condemnation.

          (c) Damage and Destruction. The provisions of this Lease, including those in
Article XII, constitute an express agreement between Landlord and Tenant that applies in the event
that any Demised Property or any part thereof shall be damaged or destroyed by fire or other
casualty of any kind or nature (“Casualty”). Tenant, therefore, fully waives the provisions of any
statute or regulation, including California Civil Code Sections 1932(2) and 1933(4), relating to
any rights or obligations concerning a Casualty.

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          (d) Notices. When this Lease requires service of a notice, that notice shall
replace rather than supplement any equivalent or similar statutory notice, including any notices
required by California Code of Civil Procedure Section 1161 or any similar or successor statute.
When a statute requires service of a notice in a particular manner, service of that notice (or a
similar notice required by this Lease) in the manner required by Article XIX shall replace and
satisfy the statutory service-of-notice procedures, including those required by California Code of
Civil Procedure Section 1162 or any similar or successor statute.

          (e) Remedies. It is intended that Landlord shall have the remedy described in
California Civil Code Section 1951.4, which provides that, when a tenant has the right to sublet or
assign, the landlord may continue the lease in effect after the tenant’s breach and abandonment and
recover rent as it becomes due. Accordingly, if Landlord does not elect to terminate this Lease on
account of any default by Tenant, Landlord may enforce all of Landlord’s rights and remedies under
this Lease, including the right to recover all rent as it becomes due.

     Section 46.16 Washington. Without limiting the choice of law
provisions set forth in Article XXXII, the following provisions shall apply to the extent that the
laws of the State of Washington govern the interpretation or enforcement of this Lease with respect
to any Demised Premises located in the State of Washington:

     (a) Any and all transfers of or applications for liquor licenses provided for under this Lease
shall be made pursuant to the provisions of The Washington State Liquor Control Act, codified at
RCW Title 66 et seq. and the rules and regulations promulgated by the Washington State
Liquor Control Board.

[SIGNATURES FOLLOW ON NEXT PAGE]

MASTER LAND AND BUILDING LEASE

-92-

 

          IN WITNESS WHEREOF, the parties have executed this Lease to be effective as of the
date first above written.

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	LANDLORD:
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	,	 	 
	 	 	 	 	 	 	 
	 

	 	a	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	First Witness	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Printed Name of First Witness
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Second Witness
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Printed Name of Second Witness
	 	 	 	 	 	 	 	 	 	 

Signature Page

MASTER LAND AND BUILDING LEASE

 

 

THE UNDERSIGNED TENANT ACKNOWLEDGES THAT IT FULLY UNDERSTANDS THE CONFESSION OF JUDGMENT AND
WAIVERS CONTAINED IN SECTION 16.02(c) HEREOF, TO THE EXTENT PROVIDED IN SECTION 46.12 HEREOF, AND
KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY ENTERS INTO THIS LEASE FULLY COMPREHENDING THE
RELINQUISHMENT OF CERTAIN RIGHTS BY VIRTUE OF SUCH CONFESSION OF JUDGMENT AND WAIVERS.

THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

TENANT:

FIRE MOUNTAIN RESTAURANTS, LLC,

a Delaware limited liability company

	 	 	 
	 
	 	 
	 
	 	 
	First Witness

	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	Printed Name of First Witness
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	Second Witness
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	Printed Name of Second Witness
	 	 

	 	 	 	 	 	 	 
	By:	 	RYAN’S RESTAURANT GROUP, INC.	 	 
	 	 	a South Carolina Corporation	 	 
	 	 	its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Signature Page

MASTER LAND AND BUILDING LEASE

 

 

ACKNOWLEDGMENTS

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	)
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	) ss.	 	 
	COUNTY OF

	 	 	 	)	 	 
	 

	 	 	 	 	 	 

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

(NOTARIAL SEAL)

                                                            

Notary Public

My commission expires:

                                        

[ACKNOWLEDGMENTS CONTINUE ON NEXT PAGE]

Acknowledgement

MASTER LAND AND BUILDING LEASE

 

 

ACKNOWLEDGMENTS

	 	 	 	 	 	 	 
	STATE OF

	 	 	 	)
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	) ss.	 	 
	COUNTY OF

	 	 	 	)	 	 
	 

	 	 	 	 	 	 

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

(NOTARIAL SEAL)

                                                            

Notary Public

My commission expires:

                                        

Acknowledgement

MASTER LAND AND BUILDING LEASE

 

 

EXHIBIT A

LOCATION/ADDRESS/LEGAL DESCRIPTION OF REAL PROPERTIES

(see attached)

EXHIBIT A

MASTER LAND AND BUILDING LEASE

 

 

EXHIBIT B

FORM OF TENANT’S ESTOPPEL CERTIFICATE

TENANT’S ESTOPPEL CERTIFICATE

          The undersigned,                                         , whose address is                                                              represents and certifies as follows:

          1. The undersigned is the tenant (“Tenant”) under that certain Master Land and Building Lease
dated                      with                                                              as Landlord ( the “Lease”), covering the properties described therein
(collectively the “Demised Properties”).

          2. The Lease constitutes the only agreement (either written or oral) the undersigned has with
respect to the Demised Properties and any right of occupancy or use thereof.

          3. The Lease is in full force and effect and has not been assigned, subleased, supplemented,
modified or amended except as follows:

 

 

 

 

          4. The undersigned presently occupies the Demised Properties and is paying rent on a current
basis. No rent has been paid by Tenant in advance except for the monthly rental that became due on
                                        .

          5. The monthly rental is the sum of                                          Dollars (US $                     ).

          6. The present Lease term expires on                                          and there are no options to renew except:                                         .

          7. To the undersigned’s actual knowledge, there are no defaults under the Lease by Landlord or
any events which with the passage of time or giving of notice or both will result in any such
default. The undersigned does not presently have (nor with the passage of time or giving of notice
or both will have) any offset, charge, lien, claim, termination right or defense under the Lease.

          8. The undersigned occupies and has accepted possession of all of the Demised Properties
covered by the Lease. All obligations of Landlord under the Lease required to be performed to
date, including any improvements to be constructed by Landlord (or its predecessors or successors)
or the granting of any free rent, rent credit, offset, deductions, building allowance or rent
reduction have been completed to the satisfaction of the undersigned.

EXHIBIT B

MASTER LAND AND BUILDING LEASE

 

 

          9. Landlord has no personal liability under the Lease (recourse against Landlord being limited
to Landlord’s interest in the Demised Properties).

          10. The undersigned is aware that third parties intend to rely upon this Certificate and the
statements set forth herein and that the statements and facts set forth above shall be binding on
the undersigned

          11. The undersigned and the persons executing this Certificate on behalf of the undersigned
have the power and authority to execute and deliver this Certificate.

          12. Tenant has no right of first refusal, or option to purchase, with respect to all or any
portion of any Demised Properties; and

          13. No deposits or prepayments of rent have been made in connection with the Lease, except as
follows:                                         

	 	 	 	 	 	 	 	 	 	 	 
	 	 	“TENANT”
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 		 	 
	 	 	 	 	 	 	 
	 

	 	a	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 

EXHIBIT B

MASTER LAND AND BUILDING LEASE

 

 

EXHIBIT C

FORM OF MEMORANDUM OF LEASE

 

(Above space reserved for recorder and recording information)

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

MEMORANDUM OF LEASE

This Memorandum of Lease is made and entered into as of                     ,      ,       by and between
                    , a                      (“Landlord”), and                     , a                     , whose
address is 1460 Buffet Way, Eagan, Minnesota 55121 (“Tenant”), who agree as follows:

1. Terms and Premises. Pursuant to a certain Master Land and Building Lease (the “Lease”)
dated on or about the date hereof entered into between Landlord and Tenant, Landlord has leased to
Tenant and Tenant has leased from Landlord that certain real property, together with all the
improvements thereon and appurtenances thereunto belonging (the “Premises”), more particularly
described on Exhibit “A” which is attached hereto and incorporated herein, for a term of TWENTY
(20) YEARS from                         ,      , expiring on                         ,      . Tenant has FOUR (4) five-year
options to extend the term of the Lease, all as more particularly set forth in the Lease.

2. Purpose of Memorandum of Lease. This Memorandum of Lease is executed and recorded to
give public notice of the Lease between the parties and all terms and conditions of the Lease are
incorporated by reference into this Memorandum and this Memorandum of Lease does not modify the
provisions of the Lease. If there are any conflicts between the Lease and this Memorandum of
Lease, the provisions of the Lease shall prevail. The rights and obligations set forth herein
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Any initial capitalized term not defined herein shall have the meaning as
set forth in the Lease.

[SIGNATURES AND ACKNOWLEDGMENTS ON NEXT PAGE]

EXHIBIT C

MASTER LAND AND BUILDING LEASE

 

 

	 	 	 	 	 	 	 	 	 
	LANDLORD:  
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	,	 	 	 	 
	 	 	 	 	 	 	 
	a
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed, sealed, and delivered this        
	day of                     ,                      in the presence of:
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	Witness
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Notary Public, County of                     ,
	State of                                         
	 
	 	 	 	 	 	 	 	 
	My commission expires:                                        
	 
	 	 	 	 	 	 	 	 
	(Notary Seal)

	 	 	 	 	 	 	 	 	 
	TENANT:  
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	,	 	 	 	 
	 	 	 	 	 	 	 
	a
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed, sealed, and delivered this        
	day of                     ,                      in the presence of:
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	Witness
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Notary Public, County of                     ,
	State of                                         
	 
	 	 	 	 	 	 	 	 
	My commission expires:                                        
	 
	 	 	 	 	 	 	 	 
	(Notary Seal)

[SIGNATURES CONTINUE ON NEXT PAGE]

EXHIBIT C

MASTER LAND AND BUILDING LEASE

 

 

	 	 	 	 	 	 	 	 	 
	SELLER:  
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	,	 	 	 	 
	 	 	 	 	 	 	 
	a
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed, sealed, and delivered this        
	day of                     ,                      in the presence of:
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	Witness
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Notary Public, County of                     ,
	State of                                         
	 
	 	 	 	 	 	 	 	 
	My commission expires:                                        
	 
	 	 	 	 	 	 	 	 
	(Notary Seal)

 

EXHIBIT C

MASTER LAND AND BUILDING LEASE

 

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

MASTER LAND AND BUILDING LEASE

EXHIBIT C

 

 

EXHIBIT D

FORM OF INDIVIDUAL LEASE AGREEMENT

(See attached)

[FORM TO BE REVIEWED AND AGREED UPON BY LANDLORD AND TENANT]

[Please note the Individual Lease Agreement Form for a transferred Lease including fewer than 10
Demised Properties will be drafted so as to (i) not to contain any financial or reporting covenants
(other than monthly sales reports, quarterly Tenant financials and Guarantor financials), “go dark”
prohibition or continuous use requirements, (ii) limit use only by reference to compliance with
laws, covenants, conditions and restrictions of records, prohibition on strip clubs or other adult
entertainment activities, option or swapmeet venues, carry-out liquor stores, or other uses,
including without limitation, other specially regulated uses often considered deleterious to the
value of commercial real property in otherwise generally desirable locations, (iii) provide that,
with respect to Tenant’s Demised Property substitution rights, if the Replacement Property is in
the same metropolitan area as the Replaced Property and Landlord disputes the replacement value of
the Replacement Property, Tenant may invoke an appraisal arbitration. Also, the Individual Lease
Agreement Form shall not contain any substitution right whereby Tenant can substitute a
Replaced Property with an Economic Replacement.]

MASTER LAND AND BUILDING LEASE

EXHIBIT D

 

 

EXHIBIT E

FORM OF INDIVIDUAL LEASE GUARANTY

(See attached)

[FORM TO BE REVIEWED AND AGREED UPON BY LANDLORD AND TENANT]

[Please note the substantive terms of each individual lease guaranty are to be identical to those
for the primary Master Lease Guaranties (see Exhibit F).]

MASTER LAND AND BUILDING LEASE

EXHIBIT E

 

 

EXHIBIT F

FORM OF GUARANTY

(See attached)

MASTER LAND AND BUILDING LEASE

EXHIBIT F

 

 

EXHIBIT G

FORM OF SNDA 

(See attached)

MASTER LAND AND BUILDING LEASE

EXHIBIT G

 

 

EXHIBIT H

FORM OF ALABAMA BROKER’S LIEN AFFIDAVIT

	 	 	 
	STATE OF ALABAMA  )

	 	 
	 

	 	: 
	                     COUNTY

	 	) 

BROKER’S LIEN AFFIDAVIT

          WHEREAS,                                         , a(n)                     
                     (“Landlord”), and
                                        , a(n)                                          (“Tenant”) are parties to that certain Lease
Agreement dated as of                                         , whereby Landlord has agreed to Lease to Tenant and
Tenant has agreed to lease from Landlord the real property described on Exhibit “A” attached hereto
(the “Property”).

          WHEREAS,                                          has agreed to issue a title insurance policy insuring
the Property provided absolute assurance is given that there are no unpaid real estate commissions.

          NOW, THEREFORE, the undersigned Landlord, being first duly sworn, on oath, represents,
warrants and states as follows:

          There is no unpaid or disputed real estate commission, all compensation due or to become due
under any listing, agency, or other brokerage agreement has been paid or has been waived in writing
by the potential lien claimant, and there has been no written notice received concerning any unpaid
real estate commission which could give rise to a Broker’s Lien under Act #98-160, Regular Session,
1998, Alabama Legislature (Code of Alabama (1975) § 35-11-450 et seq.).

     EXECUTED AND DELIVERED as of the                      day of                     , 200.

	 	 	 
	 

	 	LANDLORD:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	By
	 

	 	 
	 
	 	 
	 

	 	Name
	 

	 	 
	 
	 	 
	 

	 	Its
	 

	 	 

MASTER LAND AND BUILDING LEASE

EXHIBIT H

 

 

	 	 	 
	STATE OF                     

	 	) 
	 

	 	) 
	                     COUNTY

	 	) 

I,                                         , a Notary Public in and for said County and State, hereby certify
that                                         , whose name as                                          of                                         ,
is signed to the foregoing instrument and who is known to me (or satisfactorily proven),
acknowledged before me on this day that, being informed of the contents of the instrument, s/he, as
such officer and with full authority, executed the same voluntarily (on the day the same bears
date) on behalf of such entity for and as the act of said entity.

Given under my hand and official seal on                                         , 200.

	 	 	 
	 

	 	 
	 

	 	Notary Public
	 

	 	My commission expires:                                         

MASTER LAND AND BUILDING LEASE

EXHIBIT H

 

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

MASTER LAND AND BUILDING LEASE

EXHIBIT H

 

 

SCHEDULE 1

RESTAURANT EQUIPMENT

          The term “Restaurant Equipment” shall include without limitation, with respect to each Demised
Property, all of the following, whether now or hereafter owned or acquired by, or in which Tenant
has any interest (whether unattached or attached by bolts and screws and/or by utility
connections): décor items, office equipment, tables, chairs, seating stations, bus stations,
beverage stations, grill areas, host stations, serving stations and equipment, steam tables,
warming tables, stoves, ovens, fryers, ranges, grills, dishwashing equipment, non-built in shelving
and racking, decorative light fixtures, stereo equipment, furniture, trade fixtures (including, but
not limited to, window grills and countertops), remote or movable refrigeration and freezer
systems, signage panels, building lettering, neon signage, food and customer service equipment,
removable equipment, any and all inventory existing within or upon any Demised Property (including,
without limitation, supplies, foods and beverages), and other similar type items of personal
property now owned, acquired, held or used by Tenant in its restaurant operations, and all
additions to, substitutions for and replacements of the foregoing.

          [Reference is hereby made to the last paragraph of Section 22.03 of this Lease relating to
certain limitations on Landlord’s option to purchase the Restaurant Equipment for Fair Market Value
pursuant to Article XXII.]

MASTER LAND AND BUILDING LEASE

SCHEDULE 1

 

 

SCHEDULE 2

ENVIRONMENTAL REPORTS

(See attached)

[LANDLORD TO PROVIDE LIST]

MASTER LAND AND BUILDING LEASE

SCHEDULE 2

 

 

EXHIBIT B

FORM OF LEASE MEMORANDUM

	 	 	 	 
	Recording requested by, and

	 	 	 
	after recording return to:
	 	 	 
	Attn:                                         
	 	 	 
	Buffet Holdings, Inc.
	 	 	 
	1460 Buffet Way
	 	 	 
	Eagan, Minnesota 55121
	 	 	 
	 	 	 	 

MEMORANDUM OF LEASE

     This Memorandum of Lease is made and entered into as of _________, by and between
____________, a ____________(“Landlord”) and ____________, (“Tenant”) who
agree as follows:

     1. Terms and Premises. Pursuant to a certain Land and Building Lease Agreement (the “Lease”)
dated _________ ___, 20___entered into between Landlord and Tenant Landlord leases to Tenant and Tenant
leases from Landlord that certain real property, together with all the improvements thereon and
appurtenances thereunto belonging (the “Premises”), which legal description is attached hereto and
incorporated herein as Exhibit “A,” commonly known as:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 
	 	 	                                        ,                         

for a term of _________, commencing on ______,  __ 20___and expiring on _________.
Tenant has _________options to extend the term of the Lease, plus, provided that each of the
_________options have been exercised, _________options to extend the term of the Lease, all
as more particularly set forth in the Lease.

     2. Tenant has the right to mortgage its interests in the Lease subject to each and all of the
terms, covenants, conditions and restrictions set forth in the Lease and to all rights and
interests of Landlord therein, all as more particularly set forth in the Lease.

THE REMAINDER OF THIS PAGE WAS LEFT BLANK INTENTIONALLY

Exhibit B - Page 1

 

     3. Purpose of Memorandum of Lease. This Memorandum of Lease is prepared for the purpose of
recordation and does not modify the provisions of the Lease. The Lease is incorporated herein by
reference. If there are any conflicts between the Lease and this Memorandum of Lease, the
provisions of the Lease shall prevail. The rights and obligations set forth herein shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns.

	 	 	 
	LANDLORD:

	 	TENANT:
	 
	 	 
	                                                            ,

	 	                                        
	a                                         
	 	 
	 
	 	 

	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 

	 	 	 	 

	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 

	 	 

	 	 	 	 

	 	 	 
	Signed, sealed, and delivered this

	 	Signed, sealed, and delivered this
	                     day of                      in the presence of:

	 	                     day of                      in the presence of:
	 
	 	 
	 
	 	 
	 

Witness

	 	 

Witness
	 
	 	 
	 
	 	 
	 

Witness

	 	 

Witness

Attach a notary acknowledgment for all signatures.

Exhibit B - Page 2

 

EXHIBIT A

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit B - Page 3

 

EXHIBIT C

FORM OF MASTER LEASE SUBORDINATION AGREEMENT

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

	 	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	 	 	 	 
	Attn:

	 	 	 	 
	 

	 	 
	 	 
	Loan No.
	 	 	 	 
	 

	 	 
	 	 

 

SUBORDINATION AGREEMENT; ACKNOWLEDGMENT OF LEASE ASSIGNMENT,

ESTOPPEL, ATTORNMENT AND NON-DISTURBANCE AGREEMENT

(Lease To Deed of Trust)

			
	NOTICE:	 	THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING
SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.

THIS SUBORDINATION AGREEMENT; ACKNOWLEDGMENT OF LEASE ASSIGNMENT, ESTOPPEL, ATTORNMENT AND
NON-DISTURBANCE AGREEMENT (“Agreement”) is made DATE OF DOCUMENTS by and between BORROWER NAME, a
general partnership (“Owner”), NAME OF LESSEE HERE (“Lessee”) and NAME OF LENDER HERE (“Lender”).

R E C I T A L S

	A.	 	Pursuant to the terms and provisions of a lease dated DATE OF LEASE HERE (“Lease”), Owner, as
“Lessor”, granted to Lessee a leasehold estate in and to a portion of the property described
on Exhibit A attached hereto and incorporated herein by this reference (which
property, together with all improvements now or hereafter located on the property, is defined
as the “Property”).
	 
	B.	 	Said Lease contains provisions and terms granting Lessee an option to purchase the Property
(the “Option To Purchase”).

Exhibit C - Page 1

 

	C.	 	Owner has executed, or proposes to execute, a deed of trust with absolute assignment of
leases and rents, security agreement and fixture filing (“Deed of Trust”) securing, among
other things, a promissory note (“Note”) in the principal sum of LOAN AMOUNT AND NO/100THS
DOLLARS ($LOAN AMOUNT NOS.), dated DATE OF DOCUMENTS, in favor of Lender, which Note is
payable with interest and upon the terms and conditions described therein (“Loan”). The Deed
of Trust is to be recorded concurrently herewith.
	 
	D.	 	As a condition to making the Loan secured by the Deed of Trust, Lender requires that the Deed
of Trust be unconditionally and at all times remain a lien on the Property, prior and superior
to all the rights of Lessee under the Lease and the Option To Purchase and that the Lessee
specifically and unconditionally subordinate the Lease and the Option To Purchase to the lien
of the Deed of Trust.
	 
	E.	 	Owner and Lessee have agreed to the subordination, attornment and other agreements herein in
favor of Lender.

NOW THEREFORE, for valuable consideration and to induce Lender to make the Loan, Owner and Lessee
hereby agree for the benefit of Lender as follows:

	1.	 	SUBORDINATION. Owner and Lessee hereby agree that:

	 	1.1	 	Prior Lien. The Deed of Trust securing the Note in favor of Lender,
and any modifications, renewals or extensions thereof, shall unconditionally be and at
all times remain a lien on the Property prior and superior to the Lease and the Option
To Purchase;
	 
	 	1.2	 	Subordination. Lender would not make the Loan without this agreement
to subordinate; and
	 
	 	1.3	 	Whole Agreement. This Agreement shall be the whole agreement and only
agreement with regard to the subordination of the Lease and the Option To Purchase to
the lien of the Deed of Trust and shall supersede and cancel, but only insofar as would
affect the priority between the Deed of Trust and the Lease and the Option To Purchase,
any prior agreements as to such subordination, including, without limitation, those
provisions, if any, contained in the Lease which provide for the subordination of the
Lease and the Option To Purchase to a deed or deeds of trust or to a mortgage or
mortgages.

AND FURTHER, Lessee individually declares, agrees and acknowledges for the benefit of Lender, that:

	 	1.4	 	Use of Proceeds. Lender, in making disbursements pursuant to the Note,
the Deed of Trust or any loan agreements with respect to the Property, is under no
obligation or duty to, nor has Lender represented that it will, see to the application
of such proceeds by the person or persons to whom Lender disburses such proceeds, and
any application or use of such proceeds for purposes other than those provided for in
such agreement or agreements shall not defeat this agreement to subordinate in whole or
in part;

Exhibit C - Page 2

 

	 	1.5	 	Waiver, Relinquishment and Subordination. Lessee intentionally and
unconditionally waives, relinquishes and subordinates all of Lessee’s right, title and
interest in and to the Property to the lien of the Deed of Trust and understands that
in reliance upon, and in consideration of, this waiver, relinquishment and
subordination, specific loans and advances are being and will be made by Lender and, as
part and parcel thereof, specific monetary and other obligations are being and will be
entered into which would not be made or entered into but for said reliance upon this
waiver, relinquishment and subordination.

	2.	 	ASSIGNMENT. Lessee acknowledges and consents to the assignment of the Lease by
Lessor in favor of Lender.
	 
	3.	 	ESTOPPEL. Lessee acknowledges and represents that:

	 	3.1	 	Lease Effective. The Lease has been duly executed and delivered by
Lessee and, subject to the terms and conditions thereof, the Lease is in full force and
effect, the obligations of Lessee thereunder are valid and binding and there have been
no modifications or additions to the Lease, written or oral;
	 
	 	3.2	 	No Default. To the best of Lessee’s knowledge, as of the date hereof:
(i) there exists no breach, default, or event or condition which, with the giving of
notice or the passage of time or both, would constitute a breach or default under the
Lease; and (ii) there are no existing claims, defenses or offsets against rental due or
to become due under the Lease;
	 
	 	3.3	 	Entire Agreement. The Lease constitutes the entire agreement between
Lessor and Lessee with respect to the Property and Lessee claims no rights with respect
to the Property other than as set forth in the Lease; and
	 
	 	3.4	 	No Prepaid Rent. No deposits or prepayments of rent have been made in
connection with the Lease, except as follows: (if none, state “None”)

_____________________.

	4.	 	ADDITIONAL AGREEMENTS. Lessee covenants and agrees that, during all such times as
Lender is the Beneficiary under the Deed of Trust:

	 	4.1	 	Modification, Termination and Cancellation. Lessee will not consent to
any modification, amendment, termination or cancellation of the Lease (in whole or in
part) without Lender’s prior written consent and will not make any payment to Lessor in
consideration of any modification, termination or cancellation of the Lease (in whole
or in part) without Lender’s prior written consent;
	 
	 	4.2	 	Notice of Default. Lessee will notify Lender in writing concurrently
with any notice given to Lessor of any default by Lessor under the Lease, and Lessee
agrees that Lender has the right (but not the obligation) to cure any breach or default
specified in such notice within the time periods set forth below and Lessee will not
declare a default of the Lease, as to Lender, if Lender cures such default within
fifteen (15) days from and after the expiration of the time period provided

Exhibit C - Page 3

 

	 	 	 	in the Lease for the cure thereof by Lessor; provided, however, that
if such default cannot with diligence be cured by Lender with-in such fifteen (15)
day period, the commencement of action by Lender within such fifteen (15) day period
to remedy the same shall be deemed sufficient so long as Lender pursues such cure
with diligence;
	 	4.3	 	No Advance Rents. Lessee will make no payments or prepayments of rent
more than one (1) month in advance of the time when the same become due under the
Lease; and
	 
	 	4.4	 	Assignment of Rents. Upon receipt by Lessee of written notice from
Lender that Lender has elected to terminate the license granted to Lessor to collect
rents, as provided in the Deed of Trust, and directing the payment of rents by Lessee
to Lender, Lessee shall comply with such direction to pay and shall not be required to
determine whether Lessor is in default under the Loan and/or the Deed of Trust.

	5.	 	ATTORNMENT. In the event of a foreclosure under the Deed of Trust, Lessee agrees for
the benefit of Lender (including for this purpose any transferee of Lender or any transferee
of Lessor’s title in and to the Property by Lender’s exercise of the remedy of sale by
foreclosure under the Deed of Trust) as follows:

	 	5.1	 	Payment of Rent. Lessee shall pay to Lender all rental payments
required to be made by Lessee pursuant to the terms of the Lease for the duration of
the term of the Lease;
	 
	 	5.2	 	Continuation of Performance. Lessee shall be bound to Lender in
accordance with all of the provisions of the Lease for the balance of the term thereof,
and Lessee hereby attorns to Lender as its landlord, such attornment to be effective
and self-operative without the execution of any further instrument immediately upon
Lender succeeding to Lessor’s interest in the Lease and giving written notice thereof
to Lessee;
	 
	 	5.3	 	No Offset. Lender shall not be liable for, nor subject to, any offsets
or defenses which Lessee may have by reason of any act or omission of Lessor under the
Lease, nor for the return of any sums which Lessee may have paid to Lessor under the
Lease as and for security deposits, advance rentals or otherwise, except to the extent
that such sums are actually delivered by Lessor to Lender; and
	 
	 	5.4	 	Subsequent Transfer. If Lender, by succeeding to the interest of
Lessor under the Lease, should become obligated to perform the covenants of Lessor
thereunder, then, upon any further transfer of Lessor’s interest by Lender, all of such
obligations shall terminate as to Lender.

	6.	 	NON-DISTURBANCE. In the event of a foreclosure under the Deed of Trust, so long as
there shall then exist no Event of Default on the part of Lessee under the Lease, Lender
agrees for itself and its successors and assigns that the leasehold interest of Lessee under
the Lease shall not be extinguished or terminated by reason of such foreclosure and not

Exhibit C - Page 4

 

	 	 	joined in the foreclosure unless a necessary party, but rather the Lease shall continue in
full force and effect and Lender shall recognize and accept Lessee as tenant under the Lease
subject to the terms and provisions of the Lease except as modified by this Agreement;
provided, however, that Lessee and Lender agree that the following provisions of the Lease
(if any) shall not be binding on Lender: any option to purchase with respect to the
Property and any right of first refusal with respect to the Property.

	7.	 	MISCELLANEOUS.

	 	7.1	 	Heirs, Successors, Assigns and Transferees. The covenants herein shall
be binding upon, and inure to the benefit of, the heirs, successors and assigns of the
parties hereto; and
	 
	 	7.2	 	Notices. All notices or other communications required or permitted to
be given pursuant to the provisions hereof shall be deemed served upon delivery or, if
mailed, upon the first to occur of receipt or the expiration of three (3) days after
deposit in United States Postal Service, certified mail, postage prepaid and addressed
to the address of Lessee or Lender appearing below:

	 	 	 	 	 	 	 	 	 
	"OWNER"	 	 	 	"LENDER"	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BORROWER NAME, a general partnership
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	STREET ADDRESS
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	CITY, STATE ZIP
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Attn:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	Loan No.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 

	 	 	 
	"LESSEE"	 	 
	 
	 	 
	NAME OF LESSEE HERE

	 	 
	LESSEE’S ADDRESS (STACKED) HERE
	 	 

provided, however, any party shall have the right to change its address for notice hereunder
by the giving of written notice thereof to the other party in the manner set forth in this
Agreement; and

	 	7.3	 	Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute and be construed as one and the same instrument; and
	 
	 	7.4	 	Remedies Cumulative. All rights of Lender herein to collect rents on
behalf of Lessor under the Lease are cumulative and shall be in addition to any and all
other rights and remedies provided by law and by other agreements between Lender and
Lessor or others; and

Exhibit C - Page 5

 

	 	7.5	 	Paragraph Headings. Paragraph headings in this Agreement are for
convenience only and are not to be construed as part of this Agreement or in any way
limiting or applying the provisions hereof.

	8.	 	INCORPORATION. Exhibit A and Lease Guarantor’s Consent are attached hereto
and incorporated herein by this reference.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.

			
	NOTICE:	 	THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR
REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES
THAN IMPROVEMENT OF THE LAND.

IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS AGREE-MENT, THE PARTIES CONSULT WITH THEIR
ATTORNEYS WITH RESPECT HERETO.

	 	 	 	 	 
	 	 	“OWNER”

	 
	 	 	 	 
	 	 	BORROWER NAME,
	 	 	a general partnership
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 
	 	 	“LENDER”
	 	 
	 
	 	 	 	 	 	 
	 	 	,
	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	 	 	 
	 	 	 	 	 
Signee’s Name
	 	 	Its:	 	Signee’s Title  
	 
	 	 	 	 	 	 
	 	 	“LESSEE”
	 	 
	 
	 	 	 	 	 	 
	 	 	NAME OF LESSEE HERE	 	 
	 
	 	 	 	 	 	 
	 	 	LESSEE SIGNATURE BLOCK HERE	 	 

Exhibit C - Page 6

 

(ALL SIGNATURES MUST BE ACKNOWLEDGED)

Exhibit C - Page 7

 

LEASE GUARANTOR’S CONSENT

The undersigned (“Lease Guarantor”) consents to the foregoing Subordination Agreement;
Acknowledgment of Lease Assignment, Estoppel, Attornment and Non-Disturbance Agreement and the
transactions contemplated thereby and reaffirms its obligations under the lease guaranty (“Lease
Guaranty”) dated DATE OF LEASE GUARANTY HERE. Lease Guarantor further reaffirms that its
obligations under the Lease Guaranty are separate and distinct from Lessee’s obligations.

	 	 	 
	AGREED:
	 	 
	 
	 	 
	Dated as of: DATE OF DOCUMENTS

	 	“LEASE GUARANTOR”
	 
	 	 
	 

	 	LEASE GUARANTOR BLOCK HERE

Exhibit C - Page 8

 

DESCRIPTION OF PROPERTY

EXHIBIT A to Subordination Agreement; Acknowledgment of Lease Assignment, Estoppel,
Attornment and Non-Disturbance Agreement dated as of DATE OF DOCUMENTS, executed by BORROWER NAME,
a general partnership as “Owner”, NAME OF LESSEE HERE, as “Lessee”, and LENDER NAME, as “Lender”.

All that certain real property located in the County of PROPERTY COUNTY, State of California,
described as follows:

APN

Exhibit C - Page 9

 

STATE OF CALIFORNIA

COUNTY OF                                          SS.

On this ___ day of _________, 20___, before me, _______________
a Notary Public in and for the State of California, personally appeared ________________________________________________________________________________________
_____________________________

personally known to me (or proved on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.

WITNESS my hand and official seal

	 	 	 	 	 
	Signature
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	My commission expires
	 	 	 	 
	 

	 	 

	 	 

Exhibit C - Page 10

 

EXHIBIT D

FORM OF SPECIAL WARRANTY DEED

Recording requested by, and

After recording return to:

Realty Income Corporation

220 West Crest Street

Escondido, CA 92025-1707

Attention:                                         

	 	 	 	 	 	 	 
	STATE OF
	 	 	§	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	§	 	 	 
	 
	 	 	§	 	 	 
	COUNTY OF
	 	 	§	 	 	 
	 

	 	 	 	 	 	 

SPECIAL WARRANTY DEED

KNOW ALL MEN BY THESE PRESENTS:

          THAT,                                         , (“Grantor”), for and in consideration of the sum of TEN DOLLARS
($10) and other good and valuable consideration in hand paid to the undersigned by
                                        , a                                         
 (“Grantee,” whose mailing address is
                                        ), the receipt and sufficiency of such consideration being hereby acknowledged,
has GRANTED, SOLD AND CONVEYED, and by these presents does hereby GRANT, SELL, CONVEY and CONFIRM
unto Grantee that certain real property being more particularly described on Exhibit “A,” attached
hereto and made a part hereof for all purposes, together with all improvements and fixtures
situated thereon (collectively, the “Property”); SUBJECT TO all real estate taxes not yet
delinquent; covenants, conditions, restrictions, easements, rights of way and other matters of
record; applicable laws, ordinances, statutes, orders, requirements and regulations to which the
Property is subject; and all matters disclosed by an accurate survey of the Property.

Exhibit D - Page 1

 

          TO HAVE AND TO HOLD the Property, together with all and singular the rights, hereditaments,
and appurtenances thereto in anywise belonging, unto Grantee, its successors and assigns, and
Grantor hereby agrees to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee, its
successors and assigns, against every person whomsoever lawfully claiming, or claim the same, or
any part thereof, by, through, or under Grantor but not otherwise.

EXECUTED this                      day of                   , 200      .

Witnesses:

 

First Witness

 

Printed Name of First Witness

 

Second Witness

 

Printed Name of Second Witness

	 	 	 	 	 
	GRANTOR:

	 	 	 
	By:  	 
	 	Name:  	 
	 	Title:  	 
	 

	 	 	 	 	 
	Address:     	 
	 	 
	 	Attn:  	 
	 

(ACKNOWLEDGMENT)

	 	 	 	 	 	 	 
	STATE OF
	 	 	§	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	§	 	 	 
	 
	 	 	§	 	 	 
	COUNTY OF
	 	 	§	 	 	 
	 
	 	 	 	 	 	 

          On                    
                     ,
before me personally appeared                                          personally
known to me to be the person who executed the foregoing instrument as the                                                              of
                                        , and acknowledged to me that s/he executed said instrument for the purposes
and consideration therein expressed, and as the act of said corporation.

WITNESS my hand and official seal.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Notary Public	 
	 	 	 
	 

Exhibit D - Page 2

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit D - Page 3

 

EXHIBIT E

FORM OF LEASE ASSIGNMENT

[FORM TO BE REVIEWED AND AGREED UPON BY LANDLORD AND TENANT]

Exhibit E

 

	 	 	 	 	 	 
	Recording requested by, and
	 	 	 	 	 
	after recording return to:
	 	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	 	 

ASSIGNMENT AND ASSUMPTION OF LEASE AND

GROUND LESSOR’S ESTOPPEL

(Unit               )

I. ASSIGNMENT AND ASSUMPTION

     (1) Assignment. FOR AND IN CONSIDERATION of the sum of                      ($      ), cash in
hand paid, and other good and valuable considerations, the receipt and sufficiency of all of which
are hereby acknowledged, the undersigned,                                 , a                     , (“Assignor”), whose
address is                               , does hereby sell, assign, transfer, grant and convey (“Assignment”) to
                    
        , a                                          (“Assignee”), whose address is 
                              , all of
Assignor’s right, title and interest in and to that certain Lease (“Lease”) entered into by and
between                                         , a                                      
 , Assignor and                           , which Lease was
recorded on                  
   ,            in Deed Book             , Page         ,                     
___County Court Clerk’s
Office, and covers all that certain real property (“Premises”) shown outlined in red on the plat
dated                     _, attached hereto and made a part hereof, being a portion of the same property
conveyed to

FORM OF LEASE ASSIGNMENT

 

 

                               by Deed dated                         , recorded in Deed
Book           , Page       ,                    County Court Clerk’s Office.

     (2) Assumption. Assignee accepts said Assignment and assumes all the covenants and
obligations of Assignor under the Lease arising from and after the commencement date of the
Sublease (defined below).

     (3) Indemnification. Assignor indemnifies and holds Assignee harmless from and
against all liabilities, claims, obligations, costs and expenses, including without limitation,
reasonable attorney fees and expenses, which arise out of Assignor’s interest as lessee under the
Lease and relate to the period prior to the commencement date of that certain sublease by and
between Assignee, as sublandlord, and              
                           , a                           
        , as subtenant,
intended to be dated on or about                   ,            (“Sublease”). Subject to the Sublease, Assignee
shall indemnify and hold the Assignor harmless from and against all liabilities, claims,
obligations, costs and expenses, including without limitation, reasonable attorney fees and
expenses, which arise out of Assignee’s interest as lessee under the Lease and relate to the period
from and after the commencement date of the Sublease.

II. GROUND LESSOR’S ESTOPPEL

     (1)                is the sole owner of the Premises and of the lessor’s interest in the Lease.

     (2) The Lease constitutes the only agreement the undersigned has with respect to the lease of
the Premises to Assignor and Assignor’s right of occupancy or use thereof.

     (3) The Lease is in full force and effect and has not been supplemented, modified or amended
except as follows: None

2

 

     (4) The monthly base rental is the sum of $        .

     (5) The present Lease term expires on                     ,       .

     (6) To                                knowledge, there are no defaults under the Lease by Assignor or any
events which with the passage of time or giving of notice or both will result in any such default.

III. GENERAL PROVISIONS

     This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and
their respective successors and assigns. This Assignment shall be governed by and interpreted in
accordance with the laws of the Commonwealth of                     . The effective date of this Assignment
shall be the commencement date of the Sublease. Each of the undersigned and the persons executing
this agreement on behalf of the undersigned have the power and authority to execute and deliver
this agreement.

[Signatures Appear on Following Pages]

3

 

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:
	 

	 	 	 	 	 	 
	 	 	 
	 

	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 
	STATE OF

	 	) 
	 

	 	) :SS
	COUNTY OF

	 	) 

     The foregoing was acknowledged before me this          day of                     _, 20     by
                    
                     as                              of
                                , a                                 , on behalf of the
limited liability company.

	 	 	 
	 

	 	My Commission expires:
	 
	 	 
	 

	 	 
	 

	 	Notary Public
	[Affix Seal]
	 	 

 

 

	 	 	 	 	 	 	 
	 	 	ASSIGNEE:
	 

	 	 	 	 	 	 
	 	 	 
	 

	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 
	STATE OF

	 	) 
	 

	 	) :SS
	COUNTY OF

	 	) 

     The foregoing was acknowledged before me this          day of                     , 20     by
                    
                     as                              of
                              , a                                 , on behalf of the
corporation.

	 	 	 
	 

	 	My Commission expires:
	 
	 	 
	 

	 	 
	 

	 	Notary Public
	[Affix Seal]
	 	 

 

 

	 	 	 	 	 	 	 
	 	 	LESSOR:
	 

	 	 	 	 	 	 
	 	 	 
	 

	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	Address:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Attn:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 
	STATE OF

	 	) 
	 

	 	) :SS
	COUNTY OF

	 	) 

     The foregoing was acknowledged before me this          day of                  , 20     by
                    
                   as                              of
                                  , a                                   , on behalf of the
trust.

	 	 	 
	 

	 	My Commission expires:
	 
	 	 
	 

	 	 
	 

	 	Notary Public
	[Affix Seal]
	 	 
	 
	 	 
	This instrument Prepared by:
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

 

 

ATTACH PLAT

 

 

EXHIBIT E-1

Intentionally Omitted.

Exhibit E-1

 

EXHIBIT F

FORM OF IRC SECTION 1445 CERTIFICATION

(For Compliance with Foreign Investment in Real Property Tax Act, a.k.a. “FIRPTA”)

IRC SECTION 1445 CERTIFICATION

			
	SUBJECT PROPERTY:	 	That certain tract of land (“Land”), situated in                      County, State of
                                        , described by metes and bounds in Exhibit A attached hereto.

			
	SELLER:	 	

			
	PURCHASER:	 	

          To inform Purchaser that the withholding of tax is not required upon the disposition of a U.
S. real property interest by Seller, the undersigned hereby certifies the following:

     1. Seller is not a foreign corporation, foreign partnership, foreign trust or foreign
estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

     2. Seller’s U.S. employer identification number is                                         , and

     3. Seller’s office address is                                                            
                     .

          Seller understands that this certification may be disclosed to the Internal Revenue Service by
Purchaser and that any false statement contained herein could be punished by fine, imprisonment, or
both.

          Under penalties of perjury, I declare that I have examined this certification and to the best
of my knowledge and belief, it is true, correct and complete, and I further declare that I have
authority to sign this document.

[SIGNATURES ON FOLLOWING PAGE]

Exhibit F - Page 1

 

          EXECUTED this                      day of                                        
                     , 2003.

	 	 	 	 	 
	 	SELLER:

                                                       ,
a                 
                                    

	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit F - Page 2

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit F - Page 3

 

EXHIBIT G

FORM OF SOUTH CAROLINA AFFIDAVIT OF VALUE

SOUTH CAROLINA AFFIDAVIT OF VALUE

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF
	 	 	)	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	COUNTY OF
	 	 	)	 	 	 	 	AFFIDAVIT	 	 
	 
	 	 	 	 	 	 	 	 	 	 

PERSONALLY appeared before me the undersigned, who being duly sworn, deposes and says:

1. I have read the information on this affidavit and I understand such information.

2. The property being transferred consists of an approximately             acre tract near                     
in                      [City of; Township; etc.],                   County, bearing                      County Tax Map
Number                      and was transferred by                      to                      on             
        , 2003.

3. Check one of the following: The deed is

	 	(a)                    	 	subject to the deed recording fee as a transfer for consideration paid or to be
paid in money or money’s worth.
	 
	 	(b)                    	 	subject to the deed recording fee as a transfer between a corporation, a
partnership, or other entity and a stockholder, partner, or owner of the entity, or is
a transfer to a trust or as a distribution to a trust beneficiary.
	 
	 	(c)                    	 	exempt from the deed recording fee because (See Information
Section of affidavit):                      (If exempt, please skip items 4-7, and go to item 8 of this affidavit.)
	 
	 	If exempt under exemption #14 as described in the Information section of this affidavit, did
the agent and principal relationship exist at the time of the original sale and was the
purpose of this relationship to purchase the realty? Check Yes o or No o

4. Check one of the following if either item 3(a) or item 3(b) above has been checked (See
Information section of this affidavit):

	 	(a)                    	 	The fee is computed on the consideration paid or to be paid in money or money’s worth in the amount of                                         .
	 
	 	(b)                    	 	The fee is computed on the fair market value of the realty which is                     .
	 
	 	(c)                    	 	The fee is computed on the fair market value of the realty as established for property tax purposes which is                     .

5. Check Yes o or No o to the following: A lien or encumbrance existed on
the land, tenement, or realty before the transfer and remained on the land, tenement, or realty
after the

Exhibit G - Page 1

 

transfer. If “Yes,” the amount of the outstanding balance of this lien or encumbrance is:                                         .

6. The deed recording fee is computed as follows:

	 	 	 	 	 	 
	 	(a)
	 	Place the amount listed in item 4 above here:	 	 
	 	 
	 	 	 	 
	 
	 	(b)
	 	Place the amount listed in item 5 above here:	 	 
	 	 
	 	 	 	 
	 	 
	 	(If no amount is listed, place zero here.)	 	 
	 
	 	(c)
	 	Subtract Line 6(b) from Line 6(a) and place	 	 
	 	 
	 	 	 	 
	 	 
	 	result here:	 	 

7. The deed recording fee due is based on the amount listed on Line 6(c) above and the deed
recording fee due is:                                                             .

8. As required by Code Section 12-24-70, I state that I am a responsible person who was connected
with the transaction as:                                                             .

9. I understand that a person required to furnish this affidavit who willfully furnishes a false or
fraudulent affidavit is guilty of a misdemeanor and, upon conviction, must be fined not more than
one thousand dollars or imprisoned not more than one year, or both.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Responsible Person Connected with the Transaction	 
	 	 	 
	 

SWORN to before me this                     

day of                     , 2003.

 

Notary Public for                                                                               
              

My Commission Expires:                                                                               

	 	 	 	 	 
	 	 	 
	Print or Type Name Here	 
	 	 	 
	 	 	 
	 

Exhibit G - Page 2

 

INFORMATION

Except as provided in this paragraph, the term “value” means “the consideration paid or to be paid
in money or money’s worth for the realty.” Consideration paid or to be paid in money’s worth
includes, but is not limited to, other realty, personal property, stocks, bonds, partnership
interest and other intangible property, the forgiveness or cancellation of a debt, the assumption
of a debt, and the surrendering of any right. The fair market value of the consideration must be
used in calculating the consideration paid in money’s worth. Taxpayers may elect to use the fair
market value of the realty being transferred in determining fair market value of the consideration.
In the case of realty transferred between a corporation, a partnership, or other entity and a
stockholder, partner, or owner of the entity, and in the case of realty transferred to a trust or
as a distribution to a trust beneficiary, “value” means the realty’s fair market value. A
deduction from value is allowed for the amount of any lien or distribution to a trust beneficiary,
“value” means the realty’s fair market value. A deduction from value is allowed for the amount of
any lien or encumbrance existing on the land, tenement, or realty before the transfer and remaining
on the land, tenement, or realty after the transfer. Taxpayers may elect to use the fair market
value for property tax purposes in determining fair market value under the provisions of the law.

Exempted from the fee are deeds:

(1) transferring realty in which the value of the realty, as defined in Code Section 12-24-30, is
equal to or less than one hundred dollars;

(2) transferring realty to the federal government or to a state, its agencies and departments,
and its political subdivisions, including school districts;

(3) that are otherwise exempted under the laws and Constitution of this State or of the United
States;

(4) transferring realty in which no gain or loss is recognized by reason of Section 1041 of the
Internal Revenue Code as defined in Section 12-6-40(A);

(5) transferring realty in order to partition realty as long as no consideration is paid for the
transfer other than the interests in the realty that are being exchanged in order to partition the
realty;

(6) transferring an individual grave space at a cemetery owned by a cemetery company licensed under
Chapter 55 of Title 39;

(7) that constitute a contract for the sale of timber to be cut;

(8) transferring realty to a corporation, a partnership, or a trust in order to become, or as, a
stockholder, partner, or trust beneficiary of the entity provided no consideration is paid for the
transfer other than stock in the corporation, interest in the partnership, beneficiary interest in
the trust, or the increase in value in such stock or interest held by the grantor. However, the
transfer of realty from a corporation, a partnership, or a trust to a stockholder, partner, or
trust beneficiary of the entity is subject to the fee even if the realty is transferred to another
corporation, a partnership, or trust;

(9) transferring realty from a family partnership to a partner or from a family trust to a
beneficiary, provided no consideration is paid for the transfer other than a reduction in the
grantee’s interest in the partnership or trust. A “family partnership” is a partnership whose
partners are all members of the same family. A “family trust” is a trust, in which the
beneficiaries are all members of the same family. The beneficiaries of a family trust may also
include charitable entities. “Family” means the grantor and the grantor’s spouse, parents,
grandparents, sisters, brothers, children, stepchildren, grandchildren, and the spouses and lineal
descendants of any the above. A “charitable entity” means an entity which may receive deductible
contributions under Section 170 of the Internal Revenue Code as defined in Section 12-6-40(A);

(10) transferring realty in a statutory merger or consolidation from a constituent corporation to
the continuing or new corporation;

Exhibit G - Page 3

 

(11) transferring realty in a merger or consolidation from a constituent partnership to the
continuing or new partnership;

(12) that constitute a corrective deed or a quitclaim deed used to confirm title already vested in
the grantee, provided that no consideration of any kind is paid or is to be paid under the
corrective or quitclaim deed;

(13) transferring realty subject to a mortgage to the mortgagee whether by a deed in lieu of
foreclosure executed by the mortgagor or deed executed pursuant to foreclosure proceedings;

(14) transferring realty from an agent to the agent’s principal in which the realty was purchased
with funds of the principal, provided that a notarized document is also filed with the deed that
establishes the fact that the agent and principal relationship existed at the time of the original
purchase as well as for the purpose of purchasing the realty; and

(15) transferring title to facilities for transmitting electricity that is transferred, sold, or
exchanged by electrical utilities, municipalities, electric cooperatives, or political subdivisions
to a limited liability company which is subject to regulation under the Federal Power Act (16
U.S.C. Section 791(a)) and which is formed to operate or take functional control of electric
transmission assets as defined in the Federal Power Act.

Exhibit G - Page 4

 

EXHIBIT H

FORM OF SOUTH CAROLINA SELLER’S AFFIDAVIT

FOR NONRESIDENT SELLER WITHHOLDING

Seller’s Affidavit

Nonresident Seller Withholding

S.C. Code Section 12-8-580 et seq.

THIS IS AN AFFIDAVIT OF FACTS. WHETHER OR NOT THIS AFFIDAVIT IS

SUFFICIENT TO RELIEVE THE BUYER OF THE RESPONSIBILITY TO

WITHHOLD IS GOVERNED BY SC REVENUE ADVISORY BULLETIN #02-6.

PLEASE READ THIS AFFIDAVIT CAREFULLY IN CONJUNCTION

WITH THIS ADVISORY OPINION.

The undersigned on oath, being first duly sworn, hereby certifies as follows:

	1.	 	This affidavit is being given in connection with a sale of real estate pursuant to SC Revenue
Advisory Bulletin #02-6.
	 
	2.	 	I have attached to this affidavit a description of the real property and any tangible
personal property being sold as a part of this sale. The real property is located in the
County of                      and its tax map number(s) is                     .
	 
	3.	 	The undersigned is the seller of the property described in the attached description.
	 
	4.	 	The closing date of this sale is                     .

	 	 	 	 	 
	5.
	 	The Seller’s name is	 	 
	 
	6.
	 	The Seller’s address is	 	 
	 
	 	 	(number, street or rural route)	 
	 
	 
	 	 	(city, state and zip code)	 

	7.	 	The Seller’s social security number or taxpayer identification number is                     .
	 
	8.	 	The undersigned acknowledges his obligation to file a South Carolina income tax return for
the year of sale.
	 
	9.	 	o Resident. The seller is a resident of South Carolina, as that term is defined in
the South Carolina income tax laws (Code Section 12-6-30 et seq.).
	 
	10.	 	o Deemed Resident. Pursuant to Code Section 12-8-580(C) and SC Revenue Advisory
Bulletin #02-6, the seller is deemed to be a resident of South Carolina because:

Exhibit H - Page 1

 

	 	1.a.	 	The seller is a corporation incorporated outside South Carolina, has its
principal place of business in South Carolina, and does no business in its state of
incorporation, or
	 
	 	b.	 	The seller (i) has been in business in South Carolina during the last two
taxable years, including the year of sale, (ii) will continue substantially the same
business in South Carolina after the sale, (iii) is not delinquent with respect to
filing any South Carolina income tax returns, (iv) has filed at least one South
Carolina income tax return, and (v) has a certificate of authority to do business in
South Carolina or is registered to do business in South Carolina and
	 
	 	2.	 	The seller agrees to report the sale on a timely filed South Carolina income
tax return.

	11.	 	o Tax Exempt Organizations. The seller is an organization exempt from income taxes
under Internal Revenue Code Section 501(a) or is an insurance company exempt from South
Carolina taxes on income.
	 
	12.	 	o Gain Amount. The seller affirms pursuant to Code Section 12-8-580(B) that the
amount of gain required to be recognized on this transaction and on which buyer is to make the
requisite withholding will not exceed $.
	 
	13.	 	o Withholding Amount Equals Entire Net Proceeds. If the withholding amount is
limited to the entire net proceeds, any lien, mortgage or credit line advance which was made
within one year prior to the closing was not made in contemplation of the sale. See Question
and Answer 15 in SC Revenue Advisory Bulletin #02-6 for a discussion of loans made in
contemplation of the sale.
	 
	14.	 	Installment Sale.

	 	o	 	The seller will report this sale on the installment method for South Carolina income
tax purposes, and has attached an amortization schedule correctly designating the
principal and interest portions of the payments. If withholding is to be limited to
the gain, the seller has entered the gain amount in item 12.
	 
	 	o	 	The seller elects out of the installment sale method for South Carolina purposes and
will report the entire withholding in one payment. If withholding is to be limited to
the gain, the seller has entered the gain amount in item 12.

	15.  	 	o    	Principal Residence or Involuntary Conversion — Nonrecognition of Gain.
The sale of the property will not be subject to taxes because of Internal Revenue
Code Section 121 (sale of a principal residence) or Internal Revenue Code Section
1033 (involuntary conversions). If the seller fails to comply with Section 1033,
the seller acknowledges an obligation to file an amended South Carolina income tax
return for the year of the sale.

Exhibit H - Page 2

 

	16.	 	Like Kind Exchange.

	 	o	 	In a simultaneous exchange, the entire gain is deferred under Internal Revenue Code Section 1031.
	 
	 	o	 	A gain will be partially recognized. Enter the gain amount in item 12.
	 
	 	o	 	The gain is intended to be deferred under Internal Revenue Code Section 1031 using a
qualified intermediary and the steps required by SC Revenue Advisory Bulletin #02-6 have been completed.

	17.  	 	o    	Employee Relocation.The transaction involves the sale of an employee’s property
which is being sold by an employer or relocation company in connection with the employee’s
transfer. For income tax purposes the sale is treated as a sale by the employer or relocation company.

The undersigned understands that this affidavit may be disclosed to the Department and that any
false statement contained herein could be punished by fine, imprisonment, or both.

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 

[If the person making the affidavit is not the Seller, complete the following:

 

(Affiant’s Social Security Number or Taxpayer Identification Number)

 

(Affiant’s Street Address)

 

(Affiant’s City, State and Zip Code)]

SUBSCRIBED AND SWORN TO

before me this                      day of                          ,       .

 

Notary Public for                                                                               
      

My Commission Expires:                                                                        

Exhibit H - Page 3

 

EXHIBIT A

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit H - Page 4

 

EXHIBIT I

FORM OF ALABAMA BROKER’S LIEN AFFIDAVIT

	 	 	 	 	 	 	 
	STATE OF ALABAMA

	 	 	)	 	 	 
	 

	 	 	:	 	 	 
	                     COUNTY

	 	 	)	 	 	 

BROKER’S LIEN AFFIDAVIT

     WHEREAS,                     , a(n)                     (“Buyer”), and
                    , a(n)                      (“Seller”) are parties to that certain
                     dated as of                     , whereby Seller has agreed to sell and
Buyer has agreed to purchase the real property described on Exhibit “A” attached hereto (the
“Property”).

     WHEREAS,                      has agreed to issue a title insurance policy insuring
the Property provided absolute assurance is given that there are no unpaid real estate commissions.

     NOW, THEREFORE, the undersigned Seller, being first duly sworn, on oath, represents, warrants
and states as follows:

     There is no unpaid or disputed real estate commission, all compensation due or to become due
under any listing, agency, or other brokerage agreement has been paid or has been waived in writing
by the potential lien claimant, and there has been no written notice received concerning any unpaid
real estate commission which could give rise to a Broker’s Lien under Act #98-160, Regular Session,
1998, Alabama Legislature (Code of Alabama (1975) § 35-11-450 et seq.).

     EXECUTED AND DELIVERED as of the       day of                     , 200   .

	 	 	 	 	 
	 	 	SELLER:
	 

	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	By
	 	 
	 

	 	 	 	 
	 

	 	Name
	 	 
	 

	 	 	 	 
	 

	 	Its
	 	 
	 

	 	 	 	 

Exhibit I - Page 1

 

	 	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	                     COUNTY

	 	 	)	 	 	 

     I,                     , a Notary Public in and for said County and State, hereby certify
that                     , whose name as                      of                     ,
is signed to the foregoing instrument and who is known to me (or satisfactorily proven),
acknowledged before me on this day that, being informed of the contents of the instrument, s/he, as
such officer and with full authority, executed the same voluntarily (on the day the same bears
date) on behalf of such entity for and as the act of said entity.

Given under my hand and official seal on                     , 200   .

	 	 	 	 	 
	 	 	 
	 

	 	 
	 	Notary Public
	 
	 	 	 	 
	 

	 	My commission expires:
	 	 
	 

	 	 	 	 

Exhibit I - Page 2

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit I - Page 3

 

EXHIBIT J

FORM OF GEORGIA PURCHASER’S AFFIDAVIT REGARDING

COMMERCIAL REAL ESTATE BROKERS

PURCHASER’S AFFIDAVIT REGARDING

COMMERCIAL REAL ESTATE BROKERS

     Before me, the undersigned officer authorized to administer oaths,
came                     , who, after being duly sworn according to law, deposes and says on oath:

     That s/he is a
                     of                     , a                      (“Affiant”);

     That Affiant is the purchaser of the real property described on Exhibit “A” attached
hereto and made a part hereof (“Property”);

     That Affiant has not entered into any written agreement with any commercial real estate broker
for the payment of a real estate commission or fee relating to the purchase, sale, management,
leasing or other license services related to Commercial Real Estate (as defined in O.C.G.A. Section
44-14-601(3)) with respect to the Property.

     This Affidavit is given to induce a title insurance company to permit a policy or policies of
title insurance to be issued without exception for any possible lien arising from the Commercial
Real Estate Lien Act (O.C.G.A. Sections 44-14-600 et seq.).

	 	 	 
	Sworn to and subscribed before me this    
day of            ,200  .
	 	 
	 
	 	 
	 
	 	 
	 	 	 
	Notary Public

	 	(SEAL)
	 
	 	 
	 

	 	Name:
	 

	 	 
	 
	 	 
	 

	 	Title:
	 

	 	 
	My Commission Expires:
	 	 
	 
	 	 
	

	 	 
	 	 	 
	 
	 	 
	[Affix Seal]
	 	 

Exhibit J - Page 1

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit J - Page 2

 

EXHIBIT K

FORM OF GEORGIA OWNER’S AFFIDAVIT

OWNER’S AFFIDAVIT

     Personally appeared before me, the undersigned, [SELLER REPRESENTATIVE] (“Affiant”), who,
being duly sworn according to law, deposed and says on oath as follows:

	1.	 	That Affiant is an individual.
	 
	2.	 	That Affiant has personal knowledge of the matters sworn to herein.
	 
	3.	 	That Affiant is the [SELLER TITLE] of [SELLER], [SELLER ENTITY] (“Company”).
	 
	4.	 	That the Company is the owner of that tract or parcel of land lying and being in [COUNTY]
County, [STATE], and being more particularly described in Exhibit “A” annexed hereto
and incorporated herein by reference (the “Property”), is in undisputed and peaceful
possession of the Property, and that no other person or entity other than the Company has the
right of possession of the Property, or is in possession of the Property, other than as set
forth on Exhibit “B” annexed hereto and incorporated herein by reference.
	 
	5.	 	That to the best of Affiant’s knowledge and belief, there are no disputes concerning the
location of the lines and corners of the Property.
	 
	6.	 	That to the best of Affiant’s knowledge and belief, there are no bankruptcies or executions
pending against the Company in any court whatsoever that could in any way affect the title to
the Property, or constitute a lien thereon; and there are no surety bonds, loan deeds, deeds
to secure debt, mortgages, easements, liens or encumbrances of any nature whatsoever
unsatisfied against said Property except for current ad valorem taxes and the matters
specifically set forth in Exhibit “B”.
	 
	7.	 	That to the best of Affiant’s knowledge and belief, there are no past due taxes or
assessments of any nature against said Property, and that all charges for water and sewer
service provided to the Property which are currently due have been paid, except as may
specifically be set forth in Exhibit “B”.
	 
	8.	 	That to the best of Affiant’s knowledge and belief, (i) no improvements or repairs to said
Property have been made by or on behalf of the Company during the ninety-five (95) day period
immediately preceding the date hereof which remain unpaid; and (ii) there are no outstanding
bills incurred for labor and materials used in making improvements or repairs on said
Property.
	 
	9.	 	That no brokers, finders or agents have been engaged by the Company, with regard to the sale,
purchase, option or other conveyance of any interest in the Property, and that no notices of
lien for any such services has been received by Affiant, and no commission,

Exhibit K - Page 1

 

fee, payment or other compensation is owed to any broker (as such term is defined in
O.C.G.A. §43-40-1) for any services rendered up to and including the date hereof in
connection with the Property.

     This Affidavit is made to induce [BUYER] to acquire the Property, to induce [TITLE COMPANY] to
issue an owner’s policy of title insurance to said purchaser without exception for the matters
addressed herein, and to induce the attorney certifying title to make his certification without
exception for said matters.

[SIGNATURE PAGE FOLLOWS]

Exhibit K - Page 2

 

	 	 	 
	SWORN to and SUBSCRIBED before me this           day of

[MONTH], 200[YEAR].	 	 
	 	 	 
	 
	 	(SEAL)
	 	 	 
	Notary Public
	 	[SELLER REPRESENTATIVE]
	 	 	 
	My Commission Expires:           	 	 
	 	 	 
	[NOTARIAL SEAL]	 	 

Exhibit K - Page 3

 

EXHIBIT “A”

[INSERT LEGAL DESCRIPTION OF PROPERTY HERE]

Exhibit K - Page 4

 

EXHIBIT “B”

[INSERT LIST OF EXISTING LIENS OR OTHER ENCUMBRANCES TO TITLE HERE]

Exhibit K -
Page 5

 

EXHIBIT L

FORM OF GEORGIA AFFIDAVIT OF SELLER’S RESIDENCE

(See attached)

Exhibit L - Page 1

 

AFFIDAVIT OF SELLER’S RESIDENCE

	 	 	 	 	 
	[NAME OF SELLER]

	 	 
	 	 
	 

	 	 	 	 
	[SELLER’S ADDRESS]

	 	Seller’s Identification Number	 	 
	[SELLER’S ADDRESS]
	 	 	 	 

INSTRUCTIONS

This form is provided to be executed by the seller and furnished to the buyer to establish Georgia
residency, such that withholding from the proceeds of the sale of property are not subject to the
withholding laws of this state. (See O.C.G.A. §48-7-128).

Sellers are not subject to withholding from the proceeds of sale if either they reside in Georgia,
or they are deemed to be a Georgia resident by virtue of the fact that they have filed Georgia tax
returns in the preceding two years, do business or own property in Georgia, intend to file a
Georgia Tax return for the current year, and if a corporation or limited partnership, are
registered to do business in this State.

Buyer is not required to withhold if this affidavit (or one in substantially the same form) is
submitted to the Department in lieu of a withholding tax return.

The seller is to execute this affidavit by placing an initial in the blanket preceding statements
which apply.

Seller is exempt from withholding on the sale of property because:

			
	     	 	Seller is a resident of Georgia.

Seller is not a resident of Georgia, but is deemed a resident for purposes of withholding by virtue
of the following:

(ALL FOUR REQUIREMENTS MUST APPLY)

			
	     	 	Seller is a nonresident who has filed Georgia tax returns for the preceding two years; and

			
	     	 	Seller is an established business in Georgia and will continue substantially the same business in Georgia after the sale OR
the seller has real property in the State at the time of closing of equal or greater value than the withholding tax
liability as measured by the 100% property tax assessment of such remaining property; and

			
	     	 	Seller will report the sale on a Georgia Income Tax return for the current year and file by its due date; and

			
	     	 	If seller is a corporation or limited partnership, seller is registered to do business in Georgia.

Under penalty of perjury, I swear that the above information is to the best of my knowledge and
belief, true, correct and complete.

Exhibit L - Page 2

 

	 	 	 	 	 	 	 
	Sworn to and subscribed before
me this     day of [MONTH],
200[YEAR].	 	[NAME OF SELLER], a           
	 
	 	 	 	 	 	 
	 

	 	 
	 	By:	 	 
	 	 	 	 	 	 	 
	Notary Public

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	My Commission Expires:           

	 	 	 	           [CORPORATE SEAL]	 	 
	[NOTARY SEAL]
	 	 	 	 	 	 

Exhibit L - Page 3

 

EXHIBIT M

FORM OF INDIANA ENVIRONMENTAL DISCLOSURE

FOR TRANSFER OF REAL PROPERTY 

(See attached)

Exhibit M - Page 1

 

Exhibit M - Page 2

 

Exhibit M - Page 3

 

Exhibit M - Page 4

 

Exhibit M - Page 5

 

Exhibit M - Page 6

 

EXHIBIT N

FORM OF INDIANA SALES DISCLOSURE 

(See attached)

Exhibit N - Page 1

 

Exhibit N - Page 2

 

Exhibit N - Page 3

 

EXHIBIT O

FORM OF KANSAS REAL ESTATE VALIDATION QUESTIONNAIRE

(See attached)

Exhibit O - Page 1

 

Exhibit O - Page 2

 

INSTRUCTIONS FOR COMPLETING THE SALES VALIDATION QUESTIONNAIRE

			
	ITEM 1	 	Please check all boxes which pertain.

			
	ITEM 2	 	Check the box which describes the current or most recent use of the property at the time of sale. Check all boxes which
are applicable if the property has multiple uses.

			
	ITEM 3	 	Check yes; if the buyer assumed any long term lease(s) (more than 3 years remaining) at the time of sale.

			
	ITEM 4	 	Check yes; if the purchase price included an operating business, franchise, trade license, patent, trademark, stock,
bonds, technology, and/or goodwill.

			
	ITEM 5	 	Check yes; if any tangible and portable items of property were included in the sale price. If possible, provide a brief
description and your estimate of the total value of all personal property included in the sale price.

			
	ITEM 6	 	Check yes; if the property characteristics have been changed since January 1. Indicate what type of change(s) took
place by marking the appropriate box. Indicate the date the change(s) took place.

			
	ITEM 7	 	Check yes; if any delinquent taxes were assumed by the purchaser and included as part of the sale price. Do not
consider any prorated taxes for the year in which the property was sold that are part of normal escrow closings.

			
	ITEM 8	 	Check the predominate method of financing used to acquire the property. Check “Not Applicable” if no money exchanged
hands or refinancing of an existing loan.

			
	ITEM 9	 	Check yes; if the property was either advertised on the open market, displayed a for sale sign, listed with a real
estate agent or offered by word of mouth.

			
	ITEM 10	 	Check yes; if the buyer owns or controls the property adjoining or adjacent to the property being purchased.

			
	ITEM 11	 	Provide an explanation if you believe the buyer or seller did not act prudently, was not fully informed about the
property or knowledgeable of the local market, poorly advised, did not use good judgement in the negotiations, was
acting under duress, or compelled out of necessity. Use an additional sheet of paper if necessary.

			
	ITEM 12	 	Provide the total sale price and date of sale. The date should be the date that either the deed or the contract for
deed was signed, not the date the deed was recorded.

			
	ITEM 13	 	Please sign the questionnaire and list your phone number. The county appraiser may need to make a follow up phone call
to clarify unusua1 terms or conditions.
 

K.S.A. 79-1437g. Same; penalty for violations. Any person who shall falsify the value of real estate transferred shall
be deemed guilty of a misdemeanor and upon conviction thereof shall be fined not more than $500. (L. 1991, ch. 162,
sec. 7; L. 1992, ch. 159, sec. 3; April 30.)

TRANSFERS OF TITLE THAT DO NOT REQUIRE A SALES VALIDATION QUESTIONNAIRE ARE AS FOLLOWS:

	 	(1)	 	Recorded prior to the effective date of this act, i.e., July 1, 1991;
	 
	 	(2)	 	made solely for the purpose of securing or releasing security for a debt or other
obligation;
	 
	 	(3)	 	made for the purpose of confirming, correcting, modifying or supplementing a deed
previously recorded, and without additional consideration;
	 
	 	(4)	 	by way of gift, donation or contribution stated in the deed or other instruments;
	 
	 	(5)	 	to cemetery lots;
	 
	 	(6)	 	by leases and transfers of severed mineral interests;
	 
	 	(7)	 	to or from a trust, and without consideration;
	 
	 	(8)	 	resulting from a divorce settlement where one party transfers interest in property to
the other;
	 
	 	(9)	 	made solely for the purpose of creating a joint tenancy or tenancy in common;
	 
	 	(10)	 	by way of a sheriff’s deed;
	 
	 	(11)	 	by way of a deed which has been in escrow for longer than five years;
	 
	 	(12)	 	by way of a quit claim deed filed for the purpose of clearing title encumbrances;
	 
	 	(13)	 	when title is transferred to convey right-of-way or pursuant to eminent domain;
	 
	 	(14)	 	made by a guardian, executor, administrator, conservator or trustee of an estate
pursuant to judicial order;
	 
	 	(15)	 	when title is transferred due to repossession; or
	 
	 	(16)	 	made for the purpose of releasing an equitable lien on a previously recorded
affidavit of equitable interest, and without additional consideration.

	 	(b)	 	When a real estate sales validation questionnaire is not required due to
one or more of the exemptions provided in 1-16 above, the exemption shall be clearly
stated on the document being filed.

If you have any questions or need assistance completing this form, please call the country
appraiser’s office.

Exhibit O - Page 3

 

EXHIBIT P

FORM OF CERTIFICATION OF EXEMPTION FROM WITHHOLDING

UPON DISPOSITION OF MARYLAND REAL ESTATE

WITH AFFIDAVIT OF RESIDENCE OR PRINCIPAL RESIDENCE

(See attached)

Exhibt P - Page 1

 

Certification of Exemption from Withholding Upon Disposition of Maryland Real Estate

Affidavit of Residence or Principal Residence

Based on the certification below, Transferor claims exemption from the tax withholding requirements
of § 10-912 of Maryland’s Tax General Article. Section 10-912 states that certain tax payments
must be withheld when a deed or other instrument that affects a change in ownership of real
property is recorded. The requirements of § 10-912 do not apply when a transferor provides a
certification of Maryland residence or certification that the transferred property is the
transferor’s principal residence.

	 	 	 	 	 
	1. Transferor Information
	Name of Transferor:

	 	 
	 	 
	 
	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 
	2. Reason for Exemption
	Resident 

Status

	 	o
	 	I, Transferor, am a resident of the State of Maryland.
	 

	 	o
	 	Transferor is a resident entity under § 10-912(A)(4) of Maryland’s Tax General
Article, I am an agent of Transferor, and I have authority to sign this document on
Transferor’s behalf.
	 
	Principal 

Residence

	 	o
	 	Although I am no longer a resident of the State of Maryland, the Property is my
principal residence as defined in IRC § 121.

Under penalty of perjury, I certify that I have examined this declaration and that, to the
best of my knowledge, it is true, correct, and complete.

	 	 	 
	3a. Individual Transferors
	 
	 	 
	 
	 	 
	 

	 	 
	  Witness

	 	  Name
	 
	 	 
	 

	 	 
	 

	 	  Signature
	 
	 	 

	 	 	 
	3b. Entity Transferors
	 
	 	 
	 
	 	 
	 

	 	 
	  Witness/Attest

	 	Name
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 
	 
	 	 
	 

Exhibt P - Page 2

 

EXHIBIT Q

FORM OF VIRGINIA NONRESIDENT REAL PROPERTY

OWNER REGISTRATION (VIRGINIA FORM R-5)

(See attached)

Exhibit Q - Page 1

 

Exhibit Q - Page 2

 

Exhibit Q - Page 3

 

EXHIBIT R

FORM OF VIRGINIA NONRESIDENTIAL REAL PROPERTY OWNER

SHAREHOLDER/PARTNER SCHEDULE (VIRGINIA FORM R-5P)

(See attached)

Exhibit R - Page 1

 

Commonwealth of Virginia

Department of Taxation

Nonresidential Real Property Owner Shareholder/Partner Schedule

Use this form to register partners, shareholders or beneficiaries.

Corporations must record Federal Employer Identification Number or Virginia

account number.

Exhibit R - Page 2

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