Document:

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                            PARTICIPATION AGREEMENT

                          dated as of October 10, 2000

                                     among

                               O'CHARLEY'S INC.,

                                   as Lessee,

                     FIRST AMERICAN BUSINESS CAPITAL, INC.

                                   as Lessor,

                                 AMSOUTH BANK,
                                   as Agent,

                                      and

                             THE LENDERS SET FORTH

                             AS SIGNATORIES HERETO,

                                 as Noteholders

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                               TABLE OF CONTENTS

Section           Heading                                                   Page
-------           -------                                                   ----

SECTION  1.       DEFINITIONS.................................................1

SECTION  2.       PARTICIPATION IN THE ACQUISITION, CONSTRUCTION, FINANCING
                  AND LEASE OF THE PROPERTIES; ISSUANCE OF NOTES..............1
         2.1.(a)  Loans.......................................................1
         2.2.     Transactions to Occur on the HQ Closing Date................2
         2.3.     Transactions to Occur on Each Restaurant Closing Date.......3
         2.4.     The Notes...................................................4

SECTION  3.       REPRESENTATIONS AND WARRANTIES..............................5
         3.1.     Representations and Warranties of Lessor....................5
         3.2.     Representations and Warranties of Lessee....................7
         3.3.     Opinion Acknowledgment.....................................12

SECTION  4.       CONDITIONS PRECEDENT.......................................12
         4.1.     Conditions Precedent to Closing............................12
         4.3.     Conditions Precedent to Each Restaurant Acquisition........16
         4.4.     Conditions Precedent to Each Restaurant Improvement
                    Advance..................................................20
         4.5.     Conditions Precedent to HQ Closing.........................21
         4.6.     Conditions Precedent to Each HQ Expansion Advance..........24

SECTION  5.       COVENANTS..................................................25
         5.1.     Covenants of Lessee........................................25
         5.2.     Covenants of Lessor........................................31

SECTION  6.       ADVANCES AND LESSOR INVESTMENT.............................32
         6.1.     Terms of Advances and Lessor Investment....................32
         6.2.     Interest and Investment Yield..............................33
         6.3.     Interest and Investment Yield..............................33
         6.4.     Payments...................................................35
         6.5.     Assignments/Participations.................................39

SECTION  7.       INDEMNITY; WALK AWAY EVENT.................................40
         7.1.     General Indemnification and Waiver of Certain Claims.......40

SECTION  8.       LESSEE'S RIGHT OF QUIET ENJOYMENT; NONDISTURBANCE..........47

SECTION  9.       EVENTS OF DEFAULT; REMEDIES................................49
         9.1.     Events of Default..........................................49
         9.2.     Remedies...................................................51

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Section           Heading                                                   Page
-------           -------                                                   ----

SECTION  10.      AGENT......................................................53
         10.1.    Authorization and Action...................................53
         10.2.    Agent Not Liable...........................................53
         10.3.    Rights as Holder...........................................54
         10.4.    Holder Credit Decision.....................................54
         10.5.    Indemnification............................................55
         10.6.    Successor Agent............................................55

SECTION  11.      MISCELLANEOUS..............................................55
         11.1.    Amendments and Waivers.....................................55
         11.2.    Survival...................................................56
         11.3.    Notices....................................................56
         11.4.    Successors and Assigns.....................................57
         11.5.    Business Day...............................................57
         11.6.    GOVERNING LAW..............................................57
         11.7.    Severability...............................................57
         11.8.    Counterparts...............................................57
         11.9.    Headings and Table of Contents.............................57
         11.10.   Tax and Accounting Matters.................................57
         11.11.   Limitations of Liability...................................58
         11.12.   Transaction Costs; Fees....................................58
         11.13.   Operative Documents; Further Assurances....................59
         11.14.   Exculpation................................................59
         11.15.   Waiver of Trial by Jury....................................60
         11.16.   Benefit....................................................60

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                     ATTACHMENTS TO PARTICIPATION AGREEMENT

Appendix A    -   Definitions and Rules of Usage

Schedule 1    -   Noteholders' Addresses and Percentages
Schedule 2    -   Pricing Grid
Schedule 3    -   Form of Construction Budget
Schedule 4    -   States of Incorporation of Subsidiaries
Schedule 5    -   States in which Borrower and Subsidiary are Qualified to
                  Transact Business.
Schedule 6    -   Stock Ownership
Schedule 7    -   Changes in Names, Principal Office etc
Schedule 8    -   Addresses of Offices of Borrower and Subsidiaries
Schedule 9    -   Pending Litigation
Schedule 10   -   Compliance with Laws
Schedule 11   -   Existing Indebtedness
Schedule 12   -   Leased Restaurant Facilities
Schedule 13   -   Existing Investments
Schedule 14   -   Insider Loans
Schedule 15   -   Existing Sale/Leaseback Transaction
Schedule 16   -   Affiliated Transactions

Exhibit A     -   Form of A-Note
Exhibit B     -   Form of B-Note
Exhibit C     -   Freezer Lease

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                            PARTICIPATION AGREEMENT

         This PARTICIPATION AGREEMENT, dated as of October 10, 2000 (this
"AGREEMENT"), among O'CHARLEY'S INC., a Tennessee corporation having an address
at 3038 Sidco Drive, Nashville, Tennessee 37204 ("LESSEE" and "CONSTRUCTION
AGENT"), FIRST AMERICAN BUSINESS CAPITAL, INC., a Tennessee corporation having
an address at AmSouth Center, Nashville, Tennessee 37237 ("LESSOR"), AMSOUTH
BANK, a banking association having an address at AmSouth Center, Nashville,
Tennessee 37237, in its capacity as agent for the Noteholders ("AGENT"), and
the lender parties signatory hereto (the "NOTEHOLDERS").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, the parties hereto desire to enter into this Agreement in
order to undertake certain obligations and to clarify certain of their
obligations pursuant to the Operative Documents.

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained and other good and valuable consideration, receipt of which is
acknowledged, the parties hereto agree as follows:

SECTION 1.        DEFINITIONS

                  Capitalized terms used in this Agreement (including the
foregoing preamble and recitals) and not otherwise defined herein shall have
the respective meanings specified in APPENDIX A hereto unless the context
hereof shall otherwise require. All references to Sections, Schedules and
Exhibits herein are to Sections, Schedules and Exhibits of this Agreement
unless otherwise indicated.

SECTION 2.        PARTICIPATION IN THE ACQUISITION, CONSTRUCTION,
                  FINANCING AND LEASE OF THE PROPERTIES; ISSUANCE
                  OF NOTES

         2.1.(a)  LOANS.

                  (i)      ADVANCES. Subject to the terms and conditions of
         this Agreement, the Noteholders have agreed to make Advances,
         severally and not jointly, to the Lessor in an aggregate principal
         amount of up to $24,250,000 to acquire the HQ Property, construct the
         HQ Expansion and acquire, develop and construct various Restaurant
         Properties, in each case in accordance with the terms of this
         Agreement, the Agency Agreement and the other Operative Documents, and
         to pay other Project Costs, and in consideration of such Advances, the
         Lessor will issue the A-Notes and B-Notes to the Noteholders.

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                  (ii)     COLLATERAL. The notes and the obligations of the
         Lessor under this Agreement and the other Operative Documents shall be
         secured by inter alia, (i) a perfected, first priority mortgage lien
         or deed of trust on each Property, (ii) a perfected, first priority
         assignment of the Lease with respect to each Property, (iii) a
         perfected, first priority assignment of the Lessor's right, title and
         interest in, to and under the Agency Agreement, granted pursuant to
         the Assignment of Documents and (iv) a perfected, first priority
         security interest in all items of personal property owned by the
         Lessor and comprising a portion of each Property.

                  (iii)    GUARANTY. The indebtedness evidenced by the A-Notes
         shall be guaranteed by the Lessee to the extent set forth in the
         A-Note Guaranty.

                  (iv)     LESSOR INVESTMENT. Subject to the terms and
         conditions of this Agreement, on each Advance Date, the Lessor shall
         fund an amount equal to the Lessor Percentage of the total Project
         Costs requested by the Construction Agent in the applicable
         Requisition for such Advance Date (the "LESSOR INVESTMENT") which
         Lessor Investment shall be used to pay a portion of the applicable
         Project Costs simultaneously and pro rata with the Advances by the
         Noteholders.

             (b)  TIME AND PLACE OF CLOSING. The Closing shall commence at
         10:00 a.m. EST on the Closing Date at such place as the parties may
         agree upon in writing.

                  (i)      the Construction Agent and Lessor shall execute and
         deliver the Agency Agreement;

                  (ii)     the Subsidiary Guarantors shall execute and deliver
         the Subsidiary Guaranty;

                  (iii)    Agent, Lessor and the Noteholders shall enter into
         the Intercreditor Agreement;

                  (iv)     Lessor shall create, issue, sell and deliver to the
         Noteholders the A-Notes and the B-Notes in accordance with each
         Noteholder's Commitment Percentage with respect to each such Series;

                  (v)      Lessee shall execute and deliver the A-Note
         Guaranty; and

                  (vi)     Lessor and Lessee shall execute and deliver the
         Lease.

         2.2.     TRANSACTIONS TO OCCUR ON THE HQ CLOSING DATE. Subject to the
satisfaction or waiver of the conditions precedent set forth in SECTION 4.5, on
the HQ Closing Date:

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             (a)  each Noteholder shall make an Advance to, or as directed by,
         Lessor, for each Series held by such Noteholder, in the manner
         provided in SECTION 6 and in an amount equal to the product of (i) the
         applicable Series Percentage, (ii) the HQ Acquisition Costs and (iii)
         such Noteholder's Commitment Percentage with respect to such Series
         but in no event shall the aggregate of all Advances, including all
         Advances not yet funded, but requested in a Requisition, of any
         Noteholder exceed such Noteholder's Maximum Commitment Amount;

             (b)  Lessor shall make an investment (a "LESSOR INVESTMENT") (to
         be contributed as equity and obtained by Lessor from the shareholders
         of Lessor, it being intended that these amounts are in addition to the
         funds advanced by the Noteholders pursuant to SECTION 2.2 (A) above)
         toward the purchase of the HQ Property equal to the product of (i) the
         Lessor Percentage and (ii) the HQ Acquisition Costs;

             (c)  Lessor (i) shall acquire good and marketable fee simple title
         in the HQ Property (excluding, however, the Freezer Improvements,
         which shall not be conveyed to Lessor and shall continue to be owned
         by Lessee notwithstanding anything set forth herein or in any of the
         Operative Documents to the contrary) free and clear of all Liens other
         than Permitted Encumbrances, (ii) by execution and delivery of the HQ
         Mortgage and the UCC-1 Financing Statements provided for therein,
         shall grant to Agent a first priority mortgage lien on and security
         interest in the HQ Property, subject only to the Permitted
         Encumbrances, as security for the repayment of the Notes and Lessor
         Investment, (iii) shall enter into with Lessee a Lease Supplement and
         a Memorandum of Lease with respect to the HQ Property (provided,
         however, that the Freezer Land shall be expressly excluded therefrom,
         it being agreed that the Freezer Land shall be leased separately to
         Lessee pursuant to the Freeze Lease), and (iv) shall execute and
         deliver the Freezer Lease in the form attached hereto as Exhibit C;
         and

             (d)  Lessee (i) shall cause to be conveyed to Lessor good and
         marketable fee simple title in and to the HQ Property, subject only to
         the Permitted Encumbrances, and (ii) shall execute and deliver a Lease
         Supplement and a Memorandum of Lease for the HQ Property and (iii)
         shall execute and deliver the Freezer Lease.

         2.3.     TRANSACTIONS TO OCCUR ON EACH RESTAURANT CLOSING DATE.
Subject to the satisfaction or waiver of the conditions precedent set forth in
SECTION 4.3, on each Restaurant Closing Date:

             (a)  each Noteholder shall make an Advance to, or as directed by,
         Lessor, for each Series held by such Noteholder, in the manner
         provided in SECTION 6 and in an amount equal to the product of (i) the
         applicable Series Percentage (ii) the Restaurant Property Acquisition
         Costs and (iii) such Noteholder's Commitment Percentage with

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         respect to such Series but in no event shall the aggregate of all
         Advances, including, all Advances not yet funded but requested in a
         Requisition, of any Noteholder exceed such Noteholder's Maximum
         Commitment Amount;

             (b)  Lessor shall make a Lessor Investment (to be contributed as
         equity and obtained by Lessor from the shareholders of Lessor, it
         being intended that these amounts are in addition to the funds
         advanced by the Noteholders pursuant to SECTION 2.3(A) above) toward
         the purchase of the applicable Restaurant Property in an amount equal
         to the product of (i) the Lessor Percentage and (ii) the Restaurant
         Property Acquisition Costs; and

             (c)  Lessor (i) shall acquire good and marketable fee simple title
         in the applicable Restaurant Land or shall enter into a ground lease
         in form and substance satisfactory to Agent, pursuant to which Lessor
         shall acquire a valid and subsisting leasehold estate in such
         Restaurant Land, in either case, free and clear of all Liens other
         than Permitted Encumbrances, (ii) by execution and delivery of a
         Mortgage and UCC-1 Financing Statements specified therein with respect
         to such Restaurant Land, shall grant to Agent a first priority
         mortgage lien on and security interest in the Lessor's fee or
         leasehold interest, as the case may be, in the applicable Restaurant
         Land and the improvements located at such Restaurant Land subject only
         to the Permitted Encumbrances, as security for the repayment of the
         Notes and Lessor Investment and (iii) will enter into with Lessee a
         Lease Supplement and a Memorandum of Lease with respect to such
         Restaurant Property;

             (d)  Lessee shall enter into a Lease Supplement and a Memorandum
         of Lease with Lessor with respect to such Restaurant Land, in form and
         substance satisfactory to Agent, pursuant to which Lessee shall
         acquire a valid and subsisting leasehold estate in such Restaurant
         Land.

         2.4.     THE NOTES.

             (a)  Two series of notes (each, a "SERIES") of Notes are hereby
         created which Notes shall be designated as "A-NOTES" and "B-NOTES" and
         collectively referred to as the "NOTES." The A-Notes shall each be
         substantially in the form attached hereto as EXHIBIT A. The B-Notes
         shall each be substantially in the form attached hereto as EXHIBIT B.

             (b)  The Notes shall be dated the date of issuance thereof
         hereunder, shall bear interest on the then outstanding unpaid
         principal amount thereof as provided in SECTION 6.3 until paid in
         full, and shall bear interest on any overdue principal, premium, if
         any, and interest, at the Default Rate.

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         2.5.     THE LESSOR INVESTMENT. All amounts that the Lessor shall be
required to make as a Lessor Investment as provided in the Operative Documents
shall be contributed to Lessor from the shareholders of Lessor as equity and
not from the proceeds of the issuance of the Notes.

         2.6      THE HQ EXPANSION. Anything to the contrary provided herein
notwithstanding, nothing herein or in any of the Operative Documents shall
require Lessee to request that Lessor finance the HQ Expansion under this
Agreement and the other Operative Documents unless Lessee elects to do so in
its sole discretion.

SECTION 3.        REPRESENTATIONS AND WARRANTIES

         3.1.     REPRESENTATIONS AND WARRANTIES OF LESSOR. Lessor represents
and warrants to each other party hereto that:

             (a)  ORGANIZATION. Lessor is a corporation duly organized, validly
         existing and in good standing under the laws of the State of Tennessee
         and has full corporate power and authority to carry on its business as
         now conducted, and has the full power, authority and legal right to
         execute, deliver and perform its obligations hereunder and under the
         other Operative Documents to which it is a party and has full power,
         authority and legal right under the laws of the State of Tennessee to
         execute, deliver and perform its obligations under each of the
         Operative Documents to which it is a party Lessor has not changed its
         name, been the surviving corporation in a merger, acquired any
         business, or changed its jurisdiction of incorporation.

             (b)  AUTHORITY. Lessor has duly authorized, executed and delivered
         this Agreement and each other Operative Documents to which it is a
         party to be delivered on the Closing Date;

             (c)  VALIDITY. This Agreement constitutes, and the Notes, the
         Lease, the Mortgage and each of the other Operative Documents to which
         Lessor is a party, when executed and delivered, will constitute, a
         legal, valid and binding obligation of Lessor, enforceable against it,
         in accordance with their respective terms, subject to laws generally
         affecting the enforcement of creditors' rights;

             (d)  APPROVALS. Neither the execution, delivery and performance by
         Lessor of the Operative Documents to which it is a party, nor the
         consummation by Lessor of any of the transactions contemplated hereby
         or thereby, nor the compliance by Lessor with any of the terms and
         provisions hereof and thereof, (A) requires any approval of its
         stockholders, or any approval or consent of or notice to any trustees
         or holders of any indebtedness or obligations of it, or (B) violates
         its articles of incorporation or by-laws,

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         or contravenes or will contravene any provision of, or constitutes a
         default under, or results in any breach of, or results in the creation
         of any Lien (other than Permitted Encumbrances) upon its property
         under any indenture, mortgage, chattel mortgage, deed of trust,
         conditional sale contract, bank loan or credit agreement, license or
         other agreement or instrument to which it is a party or by which it is
         bound, or contravenes any Applicable Law (with respect to execution
         and delivery) or any Tennessee or any judgment or order applicable to
         or binding on it;

             (e)  TAXES. There are no Taxes payable by Lessor imposed by the
         United States of America, any state or any political subdivision
         thereof in connection with (A) the execution and delivery by Lessor of
         this Agreement, the Notes, the Mortgages or the other Operative
         Documents to which Lessor is a party or (B) the acquisition of its
         interests in the Properties (other than franchise or other taxes based
         on or measured by any fees or compensation received by Lessor for
         services rendered in connection with the transactions contemplated
         hereby) solely because Lessor is a corporation having its principal
         office located in Nashville, Tennessee;

             (f)  NO LITIGATION. There is no litigation, proceeding or action
         pending or, to the best of the knowledge of Lessor, threatened,
         against Lessor before any Governmental Authority which individually or
         in the aggregate, if determined adversely to it, would materially
         adversely affect the ability of Lessor to perform its obligations
         under this Agreement, the Notes or the other Operative Documents to
         which it is a party;

             (g)  CONSENTS. No consent, approval, order or authorization of,
         giving of notice to, or registration with, or taking of any other
         action in respect of, any State of Tennessee or United States
         Governmental Authority is required for the execution and delivery of,
         or the performance by, Lessor of any of the transactions contemplated
         hereby or of any of the transactions contemplated by any of the other
         Operative Documents to which Lessor is a party, other than any such
         consent, approval, order, authorization, registration, notice or
         action as has been duly obtained, given or taken;

             (h)  LESSOR LIENS. (A) From and after the HQ Closing Date, the HQ
         Property and (B) from and after each Restaurant Closing Date, the
         applicable Restaurant Property shall be free of any Lessor Liens
         attributable to Lessor and Lessor agrees that it will promptly cause
         any such Lessor Lien to be duly discharged and removed at its own cost
         and expense and not out of its interest in the Properties. Lessor, at
         its own expense and not out of its interest in the Properties, shall
         indemnify, protect, save and hold harmless Lessee, the Noteholders,
         Agent, and their respective assigns, successors, servants and agents,
         from and against any reduction in the amount payable out of the
         Properties to the Noteholders, or any other loss, liability,
         obligation, damage, penalty, claim, action, suit, disbursement, cost
         or expense of whatsoever kind and nature (including reasonable legal

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         fees and expenses) imposed on, asserted against or incurred by the
         Noteholders, Agent or Lessee as a result of the imposition or
         enforcement of any such Lessor Lien;

             (i)  CHIEF EXECUTIVE OFFICE. The chief executive office (as such
         term is used in Section9-103 and 9-401 of the Uniform Commercial Code)
         and principal place of business of Lessor is located at AmSouth
         Center, 315 Deaderick Street, Nashville, Tennessee 37237; and

             (j)  NO DEFAULT. NoDefault or Event Default has occurred and is
         continuing under this Agreement or any of the other Operative
         Documents to which Lessor is a party.

             (k)  INVESTMENT COMPANY. Lessor is not an "investment company" or
         a company "controlled" by an "investment company" within the meaning
         of the Investment Company Act of 1940, as amended.

             (l)  NO OFFERING. Except as contemplated by the Operative
         Documents, Lessor has not offered (and on the Closing Date and each
         Restaurant Closing Date will not have offered) any interest in the HQ
         Property, any Restaurant Property, the Notes, the Mortgages or the
         Lease, to, or solicited any offer to acquire any of the same from, any
         Person, in violation of Section 5 of the Securities Act, nor has it
         authorized any Person to take any such action, and Lessor has not
         taken (and on the Closing Date and each Restaurant Date shall not have
         taken) any action that would subject any interest in the HQ Property,
         any Restaurant Property, the Notes, or the Lease to the registration
         requirements of Section 5 of the Securities Act.

             (m)  MARGIN REGULATIONS. No proceeds from any Advance will be used
         for any purpose that requires any Noteholder to deliver or obtain any
         certification under, or comply with, any margin requirement or other
         provision of Regulations T, U and X of the Board of Governors of the
         Federal Reserve System.

         3.2.     REPRESENTATIONS AND WARRANTIES OF LESSEE. Lessee represents
and warrants to each other party hereto that:

             (a)  ORGANIZATION. Lessee is a corporation duly organized, validly
         existing and in good standing under the Laws of the State of
         Tennessee. Each of Lessee's Subsidiaries is a corporation or limited
         liability company duly organized, validly existing and in good
         standing under the Laws of its state of incorporation or formation,
         all as set forth in SCHEDULE 4 attached hereto. Lessee and each such
         Subsidiary has the lawful power to own its properties and to engage in
         the business it conducts, and each is duly qualified and in good
         standing as a foreign corporation or limited liability company, as

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         applicable, in the jurisdictions wherein the nature of the business
         transacted by it or property owned by it makes such qualification
         necessary. The states in which Lessee and each Subsidiary are
         qualified to do business are set forth in SCHEDULE 5 attached hereto.
         The percentage of Lessee's ownership of the outstanding stock of each
         Subsidiary is as listed in SCHEDULE 6 attached hereto. Neither Lessee
         nor any Subsidiary has changed its name, been the surviving
         corporation in a merger, acquired any business, or changed its
         principal executive office or jurisdiction of incorporation since
         April 21, 1994, except as set forth in SCHEDULE 7 attached hereto. The
         addresses of all places of business of Lessee and each such Subsidiary
         are as set forth in SCHEDULE 8 attached hereto.

             (b)  NO CONFLICT. Neither Lessee nor any Subsidiary is in material
         default with respect to any of its existing Indebtedness, and the
         making and performance of this Agreement, the Lease and the other
         Operative Documents to which Lessee or such Subsidiary is a party will
         not (immediately, or with the passage of time or the giving of notice,
         or both):

                  (i)      cause Lessee or any Subsidiary to be in material
             default thereunder on account thereof;

                  (ii)     violate the charter or bylaw provisions of Lessee or
              any Subsidiary, or violate any Applicable Laws or result in a
              default under any contract, agreement, or instrument to which
              Lessee or any Subsidiary is a party or by which Lessee or any
              Subsidiary or its property is bound; or

                  (iii)    result in the creation or imposition of any security
              interest in, or Lien (other than liens created pursuant to
              the Operative Documents) upon, any of the assets of Lessee or
              any Subsidiary.

             (c)  DUE AUTHORIZATION. Lessee has the power and authority to
         enter into and perform this Agreement, the Lease and the other
         Operative Documents, as applicable, and to incur the obligations
         herein and therein provided for, and has taken all corporate action
         necessary to authorize the execution, delivery, and performance of
         this Agreement, the Lease and the other Operative Documents to which
         it is a party.

             (d)  VALIDITY. This Agreement, the Lease and the other Operative
         Documents executed as of the date hereof are, and the Lease
         Supplements when delivered will be, valid, binding and enforceable
         against Lessee in accordance with their respective terms, subject to
         laws generally affecting the enforcement of creditors' rights.

             (e)  NO LITIGATION. Except as disclosed in SCHEDULE 9 attached
         hereto, there is no pending or, to Lessee's knowledge, threatened
         order, notice, claim, litigation,

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         proceeding or investigation against or affecting Lessee or any
         Subsidiary, whether or not covered by insurance, that would involve,
         in the aggregate, the payment by Lessee or any Subsidiary of Two
         Hundred Fifty Thousand Dollars ($250,000.00) or more or have a
         material adverse effect on the Lessee, any Subsidiary or any of their
         respective operations if adversely determined. Upon the request by
         Agent, Lessee shall provide Agent with copies of all pleadings and
         other documents filed in any of the matters disclosed in said
         Schedule.

             (f)  FINANCIAL STATEMENTS. The Financial Statements, including any
         schedules and notes pertaining thereto, have been prepared in
         accordance with GAAP, and fully and fairly present in all material
         respects the financial condition of Lessee and its Subsidiaries at the
         dates thereof and the results of operations for the periods covered
         thereby, and there have been no material adverse changes in the
         financial condition or business of Lessee and its Subsidiaries taken
         as a whole from July 9, 2000 to the date hereof.

             (g)  FINANCIALS BRING-DOWN. Lessee and its Subsidiaries have no
         material Indebtedness of any nature, including, but without
         limitation, liabilities for Taxes or any interest or penalties
         relating thereto, except to the extent reflected (in a footnote or
         otherwise) and reserved against in the Financial Statements, or as
         disclosed in or permitted by this Agreement. Lessee does not know, and
         has no knowledge of any basis for the assertion against it or any
         Subsidiary, of any material Indebtedness of any nature not fully
         reflected and reserved against in the Financial Statements.

             (h)  TAXES. Lessee and each of its Subsidiaries have filed all
         federal, state and local tax returns and other reports they are
         required by Applicable Law to file prior to the date hereof and which
         are material to the conduct of their respective businesses, have paid
         or caused to be paid all Taxes that are due and payable prior to the
         date hereof, and have made adequate provision for the payment of such
         Taxes that are accruing but not yet payable. Lessee has no knowledge
         of any deficiency or additional assessment in a materially important
         amount in connection with any Taxes not provided for on its books.

             (i)  COMPLIANCE WITH LAW. Except as otherwise disclosed in
         SCHEDULE 10 attached hereto, or except to the extent that the failure
         to comply would not materially interfere with the conduct of the
         business of Lessee and its Subsidiaries taken as a whole, Lessee and
         its Subsidiaries have complied, in all material respects, with all
         Applicable Law with respect to: (i) any restrictions, specifications,
         or other requirement pertaining to products that Lessee or any
         Subsidiary sells or to the services each performs, (ii) the conduct of
         their respective businesses, (iii) the use, maintenance, and operation
         of the properties owned or leased by them, in the conduct of their
         respective businesses and (iv) health, safety, worker's compensation
         and equal employment opportunity.

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             (j)  ENVIRONMENTAL. Lessee and its Subsidiaries and their
         respective assets and operations are in compliance in all material
         respects with all Environmental Laws, and Lessee and its Subsidiaries
         will comply, in all material respects, with all such Environmental
         Laws and regulations which may be imposed in the future. All
         facilities and properties of Lessee and its Subsidiaries are and will
         be in all material respects, in a clean and healthful condition, free
         of asbestos and of all contamination by Hazardous Materials and other
         potentially harmful chemical or physical conditions, including,
         without limitation, any contamination of the air, soil, groundwater or
         surface waters associated with such facilities and properties. There
         are no storage tanks (whether above or below ground) located in or on
         such facilities and properties. No Hazardous Materials intended for
         use or generated at any such facilities or properties have been or are
         used, stored, treated or disposed of in violation of Applicable Laws
         and regulations. All Hazardous Materials which have been removed,
         released or emitted from any of such facilities or properties were and
         are documented, transported and disposed of in compliance in all
         material respects with all Applicable Laws and regulations; and
         neither Lessee nor any Subsidiary is a defendant in any administrative
         or judicial action alleging liability under the Comprehensive
         Environmental Response, Compensation and Liability Act, as amended
         ("CERCLA"), or any other Environmental Law, nor has Lessee or any
         Subsidiary received a notice that it is a potentially responsible
         party under CERCLA, similar state laws, or any other Environmental
         Law.

             (k)  REPRESENTATIONS. No representation or warranty by Lessee or
         any Subsidiary contained herein or in any certificate, Exhibit or
         Schedule furnished by Lessee or any Subsidiary pursuant to this
         Agreement contains any untrue statement of material fact or omits to
         state a material fact necessary to make such representation or
         warranty not misleading in light of the circumstances under which it
         was made.

             (l)  CONSENTS. Each consent, approval or authorization of, or
         filing, registration or qualification with, any Person required to be
         obtained or effected by Lessee or any Subsidiary in connection with
         the execution and delivery of this Agreement or the other Operative
         Documents to which it is a party or the undertaking or performance of
         any obligation thereunder has been duly obtained or effected.

             (m)  INDEBTEDNESS. All existing Indebtedness of Lessee or any
         Subsidiary (i) for money borrowed or (ii) secured by any security
         agreement, mortgage, or agreement covering the lease of real or
         personal property by Lessee or any Subsidiary as lessee, is described
         on SCHEDULE 11 attached hereto.

             (n)  RESTAURANT LEASES. All lease agreements for restaurant
         facilities operated by Lessee or its Subsidiaries are described on
         SCHEDULE 12 attached hereto.

                                      10
<PAGE>   15

             (o)  ERISA. All Defined Benefit Pension Plans, as defined in the
         Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
         of Lessee and each Subsidiary meet, as of the date hereof, the minimum
         funding standards of Section 302 of ERISA, and no Reportable Event or
         Prohibited Transaction, as such terms are defined in ERISA, has
         occurred with respect to any such plan.

             (p)  TITLE TO ASSETS. Upon consummation of the transactions
         contemplated by this Agreement and the other Operative Documents on
         the Closing Date and each Restaurant Closing Date, Lessor shall hold
         good and marketable fee title to or a valid and subsisting leasehold
         estate in each of the Properties, in either case, free and clear of
         all liens except Permitted Encumbrances. Without limiting the
         immediately preceding sentence, Lessee and each Subsidiary has good
         and marketable fee title or a valid and subsisting leasehold estate,
         as the case may be, as of the date of each of its financial statements
         delivered hereunder, to all of its material assets reflected therein
         free and clear of all Liens except those permitted under the Bank
         Credit Agreement.

             (q)  CHIEF EXECUTIVE OFFICE. The chief executive office (as such
         term is used in Sections 9-103 and 9-401 of the Uniform Commercial
         Code) and principal place of business of Lessee and where Lessee keeps
         its records concerning the HQ Property and where Lessee shall keep its
         records concerning the Restaurant Properties, and the transactions
         contemplated hereby and by the other Operative Documents is located at
         3038 Sidco Drive, Nashville, Tennessee 37204.

             (r)  NO DEFAULT. No Default or Event of Default has occurred and
         is continuing.

             (s)  INVESTMENT COMPANY. Neither Lessee nor any Subsidiary is an
         "investment company" or a company "controlled" by an "investment
         company" within the meaning of the Investment Company Act of 1940, as
         amended.

             (t)  NO OFFERING. Except as contemplated by the Operative
         Documents, Lessee has not offered (and on the Closing Date and each
         Restaurant Closing Date will not have offered) any interest in the HQ
         Property, any Restaurant Property, the Notes, the Mortgages or the
         Lease, to, or solicited any offer to acquire any of the same from, any
         Person, in violation of Section 5 of the Securities Act, nor has it
         authorized any Person to take any such action, and Lessee has not
         taken (and on the Closing Date and each Restaurant Date shall not have
         taken) any action that would subject any interest in the HQ Property,
         any Restaurant Property, the Notes, or the Lease to the registration
         requirements of Section 5 of the Securities Act.

                                      11
<PAGE>   16

             (u)  MARGIN REGULATIONS. No proceeds from any Advance will be used
         for any purpose that requires any Noteholder to deliver or obtain any
         certification under, or comply with, any margin requirement or other
         provision of Regulations G, T, U and X of the Board of Governors of
         the Federal Reserve System.

             (v)  BROKER. Lessee has not retained any broker, finder or
         financial advisor (except that AmSouth Bank has been retained to
         structure, arrange and syndicate the synthetic lease facility
         contemplated by this Agreement pursuant to a separate agreement) in
         connection with the transactions contemplated by the Operative
         Documents, and there is no real estate broker or agent to whom a
         commission is due by Lessor or Lessee as a result of the acquisition
         by Lessor of any interest in (i) the HQ Property or (ii) any
         Restaurant Property, except with respect to any broker identified in a
         written notice by Lessee to Lessor and Agent prior to the applicable
         Restaurant Closing Date to whom Lessee or any of its Subsidiaries has
         agreed to pay a brokerage commission customary in the locale in which
         the applicable Restaurant Property is located, which Lessee shall
         cause to be paid in full upon the applicable Restaurant Closing Date.

             (w)  DUE AUTHORIZATION OF EACH SUBSIDIARY. Each Subsidiary has the
         power and the authority to enter into and perform the Subsidiary
         Guaranty and to insure the obligations therein provided for, and have
         taken all corporate or limited liability company, as applicable,
         action necessary to authorize the execution, delivery and performance
         of the Subsidiary Guaranty.

             (x)  VALIDITY WITH RESPECT TO SUBSIDIARIES. The Subsidiary
         Guaranty, when executed and delivered, will be binding and enforceable
         against each Subsidiary party thereto in accordance with its terms,
         subject to laws generally affecting the enforcement of creditor's
         rights.

         3.3.     OPINION ACKNOWLEDGMENT. Each of the parties hereto, with
respect to such party, expressly consents to the rendering by its counsel of
the applicable opinion referred to in SECTION 4.1 and acknowledges that such
opinion shall be deemed to be rendered at the request and upon the instructions
of such party, each of whom has consulted with and has been advised by its
counsel as to the consequences of such request, instructions and consent.

SECTION 4.        CONDITIONS PRECEDENT

         4.1.     CONDITIONS PRECEDENT TO CLOSING. The obligation of Lessor,
Agent and the Noteholders to enter into the transactions contemplated in
SECTION 2 shall be subject to fulfillment of the following conditions (other
than such conditions that are the responsibility of such party hereunder) on or
before the Closing Date:

                                      12
<PAGE>   17

             (a)  OPERATIVE DOCUMENTS IN FULL FORCE AND EFFECT. The Operative
         Documents described in SECTION 2.1(B) hereof shall have been duly
         authorized, executed and delivered by the parties thereto (except that
         the execution and delivery of the documents referred to above by a
         party hereto shall not be a condition precedent to such party's
         obligations hereunder), shall each be in full force and effect and
         executed counterparts of each shall have been delivered to each such
         party or its counsel.

             (b)  CORPORATE DOCUMENTS. Agent shall have received such documents
         and evidence with respect to Lessee, the Subsidiary Guarantors and
         Lessor, as Agent may reasonably request in order to establish that the
         consummation of the transactions contemplated by this Agreement and
         the other Operative Documents, the taking of all corporate and other
         proceedings in connection therewith and compliance with the conditions
         herein or therein set forth have been duly authorized, including (i)
         certified copies of all documents evidencing the corporate actions, or
         actions by the members, as applicable, of Lessee, the Subsidiary
         Guarantors and Lessor including resolutions of the Board of Directors
         or managing members of each such party, as applicable, in each case,
         duly authorizing the transactions contemplated hereby and the
         execution, delivery and performance by Lessee, the Subsidiary
         Guarantors and Lessor of each Operative Document to which it is a
         party and (ii) certified copies, as applicable, of the by-laws,
         operating agreements, certificates of formation and certificates or
         articles of incorporation of Lessee, the Subsidiary Guarantors and
         Lessor.

             (c)  INCUMBENCY CERTIFICATES. Agent shall have received an
         incumbency certificate dated as of the Closing Date of each of Lessee,
         the Subsidiary Guarantors and Lessor regarding the officers authorized
         to execute and deliver the Operative Documents to which it is a party
         and any other documents and agreements delivered in connection
         therewith.

             (d)  OPINIONS OF COUNSEL. Agent shall have received the favorable
         written opinion from each of (1) Bass, Berry & Sims PLC, counsel for
         Lessee and the Subsidiary Guarantors, (2) Brown, Todd & Heyburn PLLC,
         special counsel for Lessor and (3) such other opinions of counsel as
         Agent or its counsel may reasonably request, each in form and
         substance and addressed to such parties as Agent or its counsel may
         require.

             (e)  REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of Lessor and Lessee set forth in the Operative Documents
         shall be true and correct in all material respects as of the Closing
         Date, and Lessee and Lessor shall each have delivered an Officer's
         Certificate dated as of the Closing Date to such effect as to such
         party's representations and warranties.

                                      13
<PAGE>   18

             (f)  CONSENTS. All approvals or consents relating to Lessor,
         Lessee or the Subsidiary Guarantors required in connection with the
         transactions contemplated by the relevant Operative Documents shall
         have been obtained and be in full force and effect.

             (g)  GOVERNMENTAL ACTIONS. All actions, if any, required to have
         been taken on or prior to the Closing Date shall have been taken by
         any Governmental Authority and all orders, permits, waivers,
         exemptions, authorizations and approvals of such entities required to
         be in effect in connection with the transactions contemplated by this
         Agreement and the other Operative Documents shall have been issued,
         and all such orders, permits, waivers, exemptions, authorizations and
         approvals shall be in full force and effect.

             (h)  NO MATERIAL ADVERSE CHANGE. No Material Adverse Change shall
         have occurred since the execution of this Agreement that shall not
         have been remedied to Agent's and Lessor's satisfaction.

             (i)  OTHER INFORMATION. Lessor and Agent shall have received such
         information and copies of such other documents as either of them may
         reasonably request.

         4.2.     CONDITIONS PRECEDENT TO EACH FUNDING. Without limiting the
conditions precedent set forth elsewhere in this SECTION 4, the obligation of
each of the Noteholders to make any Advance and of the Lessor to make any
Lessor Investment shall be subject to the satisfaction of each of the following
conditions (other than such conditions that are the responsibility of such
party hereunder) on or before the applicable Advance Date:

             (a)  REQUISITION. Agent shall have received, with respect to each
         Eurodollar Advance, no later than three (3) Business Days prior to and
         with respect to each Floating Rate Advance, no later than one (1)
         Business Day prior to the date on which such Advance is to be funded,
         (an "ADVANCE DATE") (i) a requisition (a "REQUISITION") which contains
         (A) the identity of the Property or Properties with respect to which
         such Advance is being requested, (B) the Advance Date, (C) the amount
         of the Advance and Lessor Investment requested, together with
         allocation of the amount to be advanced with respect to each
         applicable Property and the purpose for which such Advance is made and,
         (D) a designation of such Advance as a Floating Rate Advance or a
         Eurodollar Advance, (E) a designation as to whether the Investment
         Yield applicable to the Lessor Investment so requested shall be the
         rate under clause (i) or (ii) of SECTION 6.3(B) hereof, (F) in the
         case of Eurodollar Advance (or in the case of Investment Yield upon
         the requested Lessor Investment being the rate described in SECTION
         6.3(B)(I) hereof), the duration of the initial Eurodollar Interest
         Period for such Eurodollar Advance or Lessor Investment, as
         applicable, (G) a representation and warranty by Construction Agent
         that

                                      14
<PAGE>   19

         all the conditions precedent to such Advance hereunder and under the
         other Operative Documents have been satisfied, (H) the corresponding
         amount of Lessor Investment to be funded on such Advance Date and (I)
         such additional information as Agent may reasonably request with
         respect to such Advance and (ii) an Officer's Certificate dated as of
         such Advance Date to the effect that such party's representations and
         warranties set forth herein and in the other Operative Documents are
         true and correct as of such Advance Date.

             (b)  REPRESENTATIONS AND WARRANTIES. The representations and
         warranties of Lessee and Lessor set forth herein and in the other
         Operative Documents shall be true and correct as of such Advance Date.

             (c)  NO EVENT OF DEFAULT. No Event of Default or Default shall
         have occurred and be continuing.

             (d)  NO THREATENED PROCEEDINGS. No action, suit or proceeding
         shall have been instituted nor, to the knowledge of Lessee or its
         Subsidiaries, shall governmental action be threatened before any court
         or Governmental Authority, nor shall any order, judgment or decree
         have been issued or proposed to be issued by any court or Governmental
         Authority (i) regarding any Property or Lessee's, Lessor's or any
         Noteholder's interest therein, (ii) that questions the validity or
         enforceability of any Operative Document or transactions contemplated
         thereby or (iii) where there is a reasonable probability of a
         determination that would, individually or in the aggregate, result in
         a Material Adverse Change.

             (e)  NO MATERIAL ADVERSE CHANGE. No Material Adverse Change shall
         have occurred since the Closing Date that shall not have been remedied
         to Agent's satisfaction.

             (f)  LEGALITY. The making of such Advance, and the maintenance
         thereof, by any Noteholder shall not be prohibited by any Applicable
         Law (including, without limitation, Regulation G, T, U or X and any
         applicable usury laws) and shall not subject any Noteholder to any Tax
         (other than any amounts paid or payable pursuant to SECTION 6.4(D)),
         penalty, liability or other onerous condition under or pursuant to any
         Applicable Law.

             (g)  MAXIMUM AMOUNT. The aggregate amount of Advances to be made
         with respect to any Series shall not, when added to the aggregate
         amount of Advances already made with respect to such Series, exceed
         the Maximum Series Amount with respect to such Series. The aggregate
         amount invested by the Lessor shall not exceed the Maximum Lessor
         Investment Amount.

                                      15
<PAGE>   20

             (h)  CLOSING FEES. Agent, Lessor and the Noteholders shall have
         either received payment of all fees and expenses pursuant to SECTION
         11.12 from the proceeds of previous Advances and Lessor Investment or
         will receive such payment from the proceeds of the Advances and Lessor
         Investment being requested by the applicable Requisition.

             (i)  PAYMENT OF TAXES, ETC. All taxes, charges, and reasonable and
         documented fees and costs, if any, payable on or prior to the
         applicable Advance Date in connection with the execution, delivery,
         recording, filing and performance through such Advance Date of the
         Operative Documents, or in connection with the issuance and sale of the
         Notes shall have been paid in full unless same will be paid from the
         proceeds of the Advances and Lessor Investment being requested by the
         applicable Requisition.

             (j)  RESTAURANT ADVANCES. With respect to any Restaurant Advance
         the aggregate amount of Restaurant Advances to be made by each
         Noteholder with respect to the Restaurant Land being acquired and the
         Restaurant Improvements being constructed on such Restaurant Land and
         each Series of Notes held by such Noteholder shall not exceed the
         product of (A) the applicable Series Percentage, (B) such Noteholder's
         Commitment Percentage with respect to such Series of Notes and (C) the
         applicable Restaurant Property Maximum Advance Amount.

             (k)  HEADQUARTERS ADVANCES. With respect to HQ Advances, the
         aggregate amount of Advances to be made by such Noteholder with respect
         to the acquisitions of the HQ Property or, HQ Expansion, as the case
         may be, and each Series held by such Noteholder shall not exceed the
         product of (i) the applicable Series Percentage, (ii) such Noteholder's
         Commitment Percentage with respect to such Series and (iii) (A) with
         respect to the Advance to Fund the HQ Closing, the HQ Acquisition Costs
         and (B) with respect to HQ Expansion Advances the HQ Expansion Maximum
         Advance Amount.

             (l)  SINGLE ADVANCE PER MONTH. Except for Advances or Lessor
         Investment pursuant to SECTION 6.2 hereof, no more than one (1) Advance
         and corresponding Lessor Investment shall be made in any calendar
         month, which Advance and Lessor Investment may be used to fund Project
         Costs with respect to multiple Properties.

         4.3.     CONDITIONS PRECEDENT TO EACH RESTAURANT ACQUISITION. The
obligation of each of the Noteholders to make any Advance (a "RESTAURANT
ACQUISITION ADVANCE") and of the Lessor to make a Lessor Investment to acquire
any Restaurant Land in accordance with SECTION 2.3 shall be subject to the
satisfaction of each of the following conditions (other than such conditions
that are the responsibility of such party hereunder) on or before the date of
the closing of such transaction (a "RESTAURANT CLOSING DATE"):

                                      16
<PAGE>   21

             (a)  OPERATIVE DOCUMENTS. The documents and transactions described
         in SECTION 2.3 shall have been duly authorized, executed, delivered
         and consummated with respect to such Restaurant Land, and such
         documents shall each be in full force and effect. Lessor shall have
         received a copy of each of the deliveries made to the Agent pursuant
         to SECTION 4.1 (other than deliveries of Lessor) and each certificate
         or opinion described in such SECTION 4.1 shall be addressed to Lessor
         as well as Agent and the Noteholders.

             (b)  INSURANCE CERTIFICATE. Agent and Lessor shall have received
         an insurance certificate of an independent insurance broker dated on
         or prior to the applicable Restaurant Closing Date evidencing the
         insurance required pursuant to SECTION 9 of the Lease with respect to
         such Restaurant Property.

             (c)  NO VIOLATION OF APPLICABLE LAW. The execution, delivery and
         performance of the documents described in SECTION 4.3(A) with respect
         to such Restaurant Property and the consummation of the transactions
         contemplated thereby shall not violate or conflict with any Applicable
         Law.

             (d)  CLOSING FEES. All reasonable and documented fees, expenses
         and transactions costs payable pursuant to SECTION 11.12 on or prior
         to such Restaurant Closing Date shall have been paid in full, which
         fees, expenses and costs shall be reimbursed from the proceeds of
         Advances and Lessor Investment.

             (e)  CONSENTS. All approvals or consents relating to such
         Restaurant Property required in connection with the transactions
         contemplated by the documents described in SECTION 4.3(A) with respect
         to such Restaurant Property shall have been obtained.

             (f)  GOVERNMENTAL ACTIONS. All actions, if any, required to have
         been taken on or prior to the applicable Restaurant Closing Date shall
         have been taken by any Governmental Authority and all orders, permits,
         waivers, exemptions, authorizations and approvals of such entities
         required to be in effect in connection with the transactions
         contemplated by the documents described in SECTION 4.3(A) with respect
         to such Restaurant Property shall have been issued, and all such
         orders, permits waivers, exemptions, authorizations and approvals
         shall be in full force and effect.

             (g)  TITLE AND TITLE INSURANCE. On the applicable Restaurant
         Closing Date, (i) Lessor shall have received from the Title
         Underwriter its ALTA Form B-1970, revised 1984, an Extended Coverage
         Owner's Policy of Title Insurance (a "RESTAURANT OWNER'S POLICY"),
         insuring that Lessor owns good and marketable fee simple title to, or
         holds a valid and subsisting ground leasehold estate in, the
         applicable Restaurant Land, subject only to the Permitted
         Encumbrances, in an amount equal to the budgeted total

                                      17
<PAGE>   22

         Project Costs for the applicable Restaurant Land and Restaurant
         Improvements (subject to customary pending disbursements provisions),
         together with complete, legible copies of all encumbrances, plats,
         maps and surveys of record and (ii) Agent shall have received from the
         Title Underwriter its ALTA Form B-1970, revised 1984, of extended
         coverage Lender's Policy of Title Insurance (an "RESTAURANT LENDER'S
         POLICY"; together with the Restaurant Owner's Policy, "RESTAURANT
         TITLE POLICIES"), insuring the creation under the applicable Mortgage
         in favor of Agent of a valid first priority Lien against the
         Restaurant Property, subject only to Permitted Encumbrances in an
         amount equal to all amounts to be advanced under the Notes with
         respect to such Restaurant Property, together with complete legible
         copies of all encumbrances and plats of record. The Restaurant Title
         Policies shall have an effective date as of such Restaurant Closing
         Date and shall contain the endorsements reasonably requested by Agent,
         Lessor and/or Lessee. Nothing contained in this SECTION 4.2(G) shall
         be deemed to preclude Lessee from obtaining, at its own cost and
         expense, to the extent available, a leasehold title policy with
         respect to the Restaurant Property from the Title Underwriter or any
         other title insurance company, in form and substance satisfactory to
         Lessee.

             (h)  ENVIRONMENTAL REPORT. A Phase I environmental assessment of
         the applicable Land shall have been conducted by the Environmental
         Consultant, and Agent and Lessor shall have received a copy of the
         Environmental Consultant's report on such environmental assessment,
         the scope of which review and which report, as well as the condition
         of the Land as evidenced by such report, shall disclose no adverse
         environmental condition requiring remediation or potential
         environmental liability and shall otherwise be satisfactory, in form
         and substance, to Agent and Lessor each in their sole discretion. If
         such environmental assessment is not addressed directly to Lessor,
         Agent and the Noteholders, Agent and Lessor shall have received
         letters from the Environmental Consultant stating that Agent, the
         Noteholders and Lessor may rely on such environmental assessment as if
         it was originally addressed to them in all respects.

             (i)  PAYMENT OF TAXES, ETC. All Taxes, charges, and reasonable and
         documented fees and costs, if any, payable on or prior to such
         Restaurant Closing Date in connection with the execution, delivery,
         recording, filing and performance through such Restaurant Closing
         Date, or use and occupancy of such Restaurant Property shall have been
         paid in full or sufficient funds to pay such Taxes, charges, fees and
         costs have been deposited with the Title Underwriter under
         instructions to pay the same, which Taxes, charges, fees and costs
         shall be reimbursed from the proceeds of Advances and Lessor
         Investments.

             (j)  SURVEY. Lessor, the Title Underwriter and Agent shall have
         received an accurate "ALTA/ASCM Land Title Survey" with respect to
         such Restaurant Land meeting the accuracy requirements of a Class "A"
         Survey, as defined by the guidelines of

                                      18
<PAGE>   23

         the ALTA/ASCM and certified by the applicable surveyor to Lessee,
         Lessor, Agent and the Title Underwriter, which survey (1) shall
         include all minimum standard detail requirements for Class "A"
         ALTA/ASCM Land Title Surveys and items 1-13 listed on Table 34
         thereof, except items 5 and 12 regarding topography and governmental
         agency requirements, respectively, (2) a statement that such land does
         not lie within any flood hazard areas designated on the maps entitled
         "Flood Insurance Rate Map," "Flood Hazard Floodway Boundary Map,"
         "Flood Hazard Boundary Map" or "Flood Boundary and Floodway Map"
         published by the Federal Emergency Management Agency or on any Flood
         Hazard Boundary Map published by the U.S. Department of Housing and
         Urban Development, and (3) shall be satisfactory to the Title
         Underwriter.

             (k)  APPRAISAL. With respect to the first three Restaurant
         Properties to be acquired with Advances made pursuant to this
         Agreement (the "Initial Restaurant Properties") Agent and Lessor shall
         have received an appraisal indicating a fair market value of such
         Restaurant Property upon the completion of the related Restaurant
         Improvements of no less than the projected Project Costs for the
         applicable Restaurant Improvements and otherwise in form and substance
         reasonably satisfactory to Agent and Lessor. With respect to
         Restaurant Properties acquired after the Initial Restaurant
         Properties, Lessor and Agent shall have received such appraisals, if
         any, as may be requested by Lessor or Agent in their sole discretion.

             (l)  SEPARATE ASSESSMENT; ZONING. Lessor and Agent shall have
         received evidence reasonably satisfactory to Lessor and Agent that
         such Restaurant Land is (i) separately assessed for real estate tax
         purposes and legally subdivided under local law and (ii) properly
         zoned for the construction and use of such Restaurant Improvements in
         accordance with the terms of the Lease.

             (m)  OTHER INFORMATION. Lessor and Agent shall have received such
         information and copies of such other documents as any of them may
         reasonably request.

             (n)  APPROVED PLANS. Agent shall have received the plans and
         specifications with respect to the Restaurant Improvements; the
         Construction Agent acknowledging hereby that it has delivered to Agent
         prototype plans and specifications for Restaurant Improvements and
         agreeing that it shall promptly notify Agent of any material
         modification to such prototype plans or specifications for the
         construction of any Restaurant Property;

             (o)  APPROVED BUDGET. Agent shall have received the final
         construction budget with respect to the development and improvement of
         such Restaurant Improvements which construction budget shall reflect a
         total construction cost that, when added to the cost of acquisition of
         the applicable Restaurant Property, will not violate the

                                      19
<PAGE>   24

         condition set forth in SECTION 4.2(J); the Construction Agent
         acknowledging hereby that it has delivered to Agent the pro forma
         construction budget for the construction of the prototype Restaurant
         Improvements and agrees that it shall promptly notify Agent of any
         material modifications to such pro forma construction budget;
         provided, however, that in no event shall the sum of all delivered and
         proposed construction budgets, including contingencies exceed the sum
         of the Maximum Series Amounts and the Maximum Lessor Investment.

             (p)  MAXIMUM CONSTRUCTION IN PROGRESS. The aggregate amount of
         actual and projected Project Costs (whether or not already funded) for
         all Restaurant Improvements that have yet to be completed in
         accordance with the Agency Agreement (as set forth in the applicable
         construction budgets) shall at no time exceed $10,000,000.

             (q)  RESTAURANT CLOSING DATE. The applicable Restaurant Closing
         Date shall occur no later than the first anniversary of the first
         Advance under this Agreement.

             (r)  INCUMBENCY CERTIFICATES. Agent and Lessor shall have received
         an incumbency certificate, dated as of such Restaurant Acquisition
         Advance Date, of Lessee regarding the officers authorized to execute
         and deliver the Operative Documents to which it is a party in
         connection with the acquisition or improvement of the applicable
         Property and any other documents and agreements delivered in
         connection therewith.

         4.4.     CONDITIONS PRECEDENT TO EACH RESTAURANT IMPROVEMENT ADVANCE.
The obligation of each of the Noteholders to make any Advance (a "RESTAURANT
IMPROVEMENT ADVANCE") and of Lessor to make a Lessor Investment with respect to
any Project Costs for any Restaurant Improvements shall be subject to the
satisfaction of each of the following conditions:

             (a)  RESTAURANT ACQUISITION. Each of the conditions set forth in
         SECTION 4.3 with respect to the acquisition of the applicable
         Restaurant Land by Lessor in accordance with SECTION 2.3 shall have
         been satisfied and the transactions contemplated by said SECTION 2.3
         shall have been completed. Each of the conditions set forth in SECTION
         4.3 with respect to the applicable Restaurant Property shall continue
         to be satisfied as of the date of the Restaurant Advance Date.

             (b)  USE OF RESTAURANT ADVANCE PROCEEDS. All proceeds of prior
         Restaurant Advances with respect to the applicable Restaurant Property
         expended by or on behalf of the Construction Agent shall have been
         applied solely to Project Costs (and all work and materials related
         thereto shall have been actually performed or purchased, as the case
         may be) for the applicable Restaurant Improvements, and the
         Construction Agent shall certify the same in each Requisition and
         provide such other evidence with respect to the use of such proceeds
         as may be reasonably requested by Agent.

                                      20
<PAGE>   25

             (c)  COMPLIANCE WITH LAW. The applicable Restaurant Property and
         the construction and development thereof shall be in material
         compliance with all Applicable Law.

             (d)  PERMITS. All Permits that are required by Applicable Law (i)
         with respect to the work in place as of the applicable Restaurant
         Advance Date or (ii) that, in accordance with good construction
         practice would be obtained as of the applicable Restaurant Advance
         Date in order to permit Construction Agent to complete the applicable
         Restaurant Improvements on or before the Outside Completion Date shall
         have been obtained, shall be in proper form, in full force and effect
         and not subject to any appeal, consent or further contest or to any
         unsatisfied condition (other than conditions relating to completion in
         the future) that may allow modification or revocation.

             (e)  SUFFICIENT FUNDS. The sum of (i) the amount of the requested
         Restaurant Improvement Advance, (ii) the total amount of Restaurant
         Improvement Advances made by the Noteholders and Lessor Investment
         made by the Lessor with respect to the applicable Restaurant
         Improvements prior to the applicable Restaurant Advance Date, (iii)
         the unadvanced portion of the applicable Restaurant Property Maximum
         Advance Amount and (iv) the unfunded portion of the Lessor Investment
         for the applicable Restaurant Property shall be sufficient, as
         determined by Agent, to complete the applicable Restaurant
         Improvements on or before the Restaurant Property Completion Date
         within the applicable construction budget.

             (f)  CASUALTY. As of the applicable Restaurant Advance Date, no
         Casualty has occurred with respect to the applicable Restaurant
         Property.

             (g)  TIMING. No Restaurant Improvement Advance shall be made later
         than the first anniversary of the applicable Restaurant Acquisition
         Date.

             (h)  HQ ADVANCE. No Restaurant Advance with respect to any
         Restaurant Property shall be made prior to the HQ Closing and funding
         of the corresponding HQ Advance.

         4.5.     CONDITIONS PRECEDENT TO HQ CLOSING. The obligation of Lessee,
Lessor, Agent and the Noteholders to enter into the transactions contemplated
in SECTION 2.2 shall be subject to the conditions contained in SECTION 4.1
hereof and following conditions (other than such conditions that are the
responsibility of such party hereunder) on or before the HQ Closing Date:

             (a)  OPERATIVE DOCUMENTS. The documents and transactions described
         in SECTION 2.2 shall have been duly authorized, executed, delivered
         and consummated with respect to HQ Property, and such documents shall
         each be in full force and effect. Lessor shall have received a copy of
         each of the deliveries

                                      21
<PAGE>   26
             made to the Agent pursuant to SECTION 4.1 (other than deliveries of
             Lessor) and each certificate or opinion described in such SECTION
             4.1 shall be addressed to Lessor as well as Agent and the
             Noteholders.

             (b)  HQ PROPERTY INSURANCE CERTIFICATE. Agent and Lessor shall
         have received an insurance certificate of an independent insurance
         broker dated on or prior to the Closing Date evidencing the insurance
         required pursuant to SECTION 9 of the Lease with respect to the HQ
         Property.

             (c)  TITLE AND TITLE INSURANCE. On the HQ Closing Date, (i) Lessor
         shall have received from the Title Underwriter its ALTA Form B-1970,
         revised 1984, an Extended Coverage Owner's Policy of Title Insurance
         (the "HQ OWNER'S POLICY"), insuring that Lessor owns good and
         marketable fee simple title to the HQ Land, subject only to the
         Permitted Encumbrances, in an amount equal to the HQ Commitment,
         together with complete, legible copies of all encumbrances, plats,
         maps and surveys of record and (ii) Agent shall have received from the
         Title Underwriter its ALTA Form B-1970, revised 1984, of extended
         coverage Lender's Policy of Title Insurance (the "HQ LENDER'S POLICY";
         together with the HQ Owner's Policy, "HQ TITLE POLICIES"), insuring
         the creation under the Mortgage in favor of Agent of a valid first
         priority deed of trust or mortgage against the HQ Land, subject only
         to Permitted Encumbrances in an amount equal to all amounts to be
         advanced under the Notes with respect to the HQ Property, together
         with complete legible copies of all encumbrances and plats of record.
         The HQ Title Policies shall have an effective date as of the HQ
         Closing Date and shall contain the endorsements reasonably requested
         by Agent, Lessor and/or Lessee. Nothing contained in this SECTION
         4.5(C) shall be deemed to preclude Lessee from obtaining, at its own
         cost and expense, to the extent available, a leasehold title policy
         with respect to the HQ Land from the Title Underwriter or any other
         title insurance company, in form and substance satisfactory to Lessee.

             (d)  ENVIRONMENTAL REPORT. A Phase I environmental assessment of
         the HQ Land shall have been conducted by the Environmental Consultant,
         and Agent and Lessor shall have received a copy of the Environmental
         Consultant's report on such environmental assessment, the scope of
         which review and which report, as well as the condition of the HQ Land
         as evidenced by such report, shall disclose no adverse environmental
         conditions requiring remediations or potential environmental liability
         and shall otherwise be satisfactory, in form and substance, to Agent
         and Lessor each in their sole discretion. If such environmental
         assessment is not addressed directly to Lessor, Agent and the
         Noteholders, Agent and Lessor shall have received letters from the
         Environmental Consultant stating that Agent, the Noteholders and
         Lessor may rely on such environmental assessment as if it was
         originally addressed to them in all respects.

                                      22
<PAGE>   27

             (e)  SURVEY. Lessor, the Title Underwriter and Agent shall have
         received an accurate "ALTA/ASCM Land Title Survey" with respect to the
         HQ Land meeting the accuracy requirements of a Class "A" Survey, as
         defined by the guidelines of the ALTA/ASCM and certified by the
         applicable surveyor to Lessee, Lessor, Agent and the Title
         Underwriter, which survey (1) shall include all minimum standard
         detail requirements for Class "A" ALTA/ASCM Land Title Surveys and
         items 1-13 listed on Table 34 thereof, except items 5 and 12 regarding
         topography and governmental agency requirements, respectively, (2) a
         statement that such land does not lie within any flood hazard areas
         designated on the maps entitled "Flood Insurance Rate Map," "Flood
         Hazard Floodway Boundary Map," "Flood Hazard Boundary Map" or "Flood
         Boundary and Floodway Map" published by the Federal Emergency
         Management Agency or on any Flood Hazard Boundary Map published by the
         U.S. Department of Housing and Urban Development, and (3) shall be
         satisfactory to the Title Underwriter.

             (f)  APPRAISAL. Agent and Lessor shall have received an appraisal
         of the HQ Property prepared by the Appraiser, which Appraisal shall
         (i) be prepared in accordance with FIRREA requirements and (ii) shall
         indicate a fair market value of the HQ Property of no less than the HQ
         Acquisition Costs and otherwise in form and substance reasonably
         satisfactory to Agent and Lessor.

             (g)  CONSENTS. All approvals or consents relating to the HQ
         Property required in connection with the transactions contemplated by
         the relevant Operative Documents shall have been obtained and be in
         full force and effect.

             (h)  CASUALTY. As of the HQ Closing Date, no Casualty has occurred
         with respect to the HQ Property.

             (i)  PAYMENT OF TAXES, ETC. All Taxes, charges, and reasonable and
         documented fees and costs, if any, payable on or prior to the HQ
         Closing Date in connection with the execution, delivery, recording,
         filing and performance through such HQ Closing Date, or use and
         occupancy of the HQ Property shall have been paid in full or
         sufficient funds to pay such Taxes, charges, fees and costs have been
         deposited with the Title Underwriter under instructions to pay the
         same, which Taxes, charges, fees and costs shall be reimbursed from
         the proceeds of Advances and Lessor Investment.

             (j)  NO VIOLATION OF APPLICABLE LAW. The execution, delivery and
         performance of the documents described in SECTION 2.2 with respect to
         the HQ Property and the consummation of the transactions contemplated
         thereby shall not violate or conflict with any Applicable Law.

                                      23
<PAGE>   28

             (k)  CLOSING FEES. All reasonable and documented fees, expenses
         and transactions costs payable pursuant to SECTION 11.12 on or prior
         to the HQ Closing Date shall have been paid in full, which fees,
         expenses and costs shall be reimbursed from the proceeds of Advances
         and Lessor Investments.

             (l)  GOVERNMENTAL ACTIONS. All actions, if any, required to have
         been taken on or prior to the HQ Closing Date shall have been taken by
         any Governmental Authority and all orders, permits, waivers,
         exemptions, authorizations and approvals of such entities required to
         be in effect in connection with the transactions contemplated by the
         documents described in SECTION 2.2 with respect to the HQ Property
         shall have been issued, and all such orders, permits waivers,
         exemptions, authorizations and approvals shall be in full force and
         effect.

             (m)  SEPARATE ASSESSMENT; ZONING. Lessor and Agent shall have
         received evidence reasonably satisfactory to Lessor and Agent that the
         HQ Property is (i) separately assessed for real estate tax purposes
         and legally subdivided under local law and (ii) properly zoned for the
         construction and use of the HQ Improvements in accordance with the
         terms of the Lease.

             (n)  INCUMBENCY CERTIFICATES. Agent and Lessor shall have received
         an incumbency certificate, dated as of Closing Date, of Lessee
         regarding the officers authorized to execute and deliver the Operative
         Documents to which it is a party in connection with the acquisition or
         improvement of the applicable Property and any other documents and
         agreements delivered in connection therewith.

         4.6.     CONDITIONS PRECEDENT TO EACH HQ EXPANSION ADVANCE. The
obligation of each of the Noteholders to make any Advance (an "HQ EXPANSION
ADVANCE") and of Lessor to make a Lessor Investment with respect to any HQ
Expansion Costs shall be subject to the satisfaction of each of the following
conditions:

             (a)  Each of the conditions set forth in SECTION 4.5 with respect
         to the acquisition of the HQ Property by Lessor in accordance with
         SECTION 2.2 shall have been satisfied and the transaction contemplated
         by said SECTION 2.2 shall have been completed. Each of the conditions
         set forth in SECTION 4.5 with respect to the HQ Property shall
         continue to be satisfied as of the date of the HQ Expansion Advance
         Date.

             (b)  USE OF HQ EXPANSION ADVANCE PROCEEDS. All proceeds of prior
         HQ Expansion Advances expended by or on behalf of the Construction
         Agent shall have been applied solely to HQ Expansion Costs (and all
         work and materials related thereto shall have been actually performed
         or purchased, as the case may be), and the Construction

                                      24
<PAGE>   29

         Agent shall certify the same in each Requisition and provide such
         other evidence with respect to the use of such proceeds as may be
         reasonably requested by Agent.

             (c)  COMPLIANCE WITH LAW. The HQ Expansion shall be in material
         compliance with all Applicable Law.

             (d)  PERMITS. All Permits that are required by Applicable Law (i)
         with respect to the work in place as of the applicable HQ Expansion
         Advance Date or (ii) that, in accordance with good construction
         practice would be obtained as of the applicable HQ Expansion Advance
         Date in order to permit Construction Agent to complete the HQ
         Expansion on or before the applicable Outside Completion Date shall
         have been obtained, shall be in proper form, in full force and effect
         and not subject to any appeal, consent or further contest or to any
         unsatisfied condition (other than conditions relating to completion in
         the future) that may allow modification or revocation.

             (e)  SUFFICIENT FUNDS. The sum of (i) the amount of the requested
         HQ Expansion Advance and corresponding Lessor Investment, (ii) the
         total amount of HQ Expansion Advances made by the Noteholders and
         Lessor Investment made by the Lessor with respect to the HQ Expansion
         prior to the applicable HQ Expansion Advance Date, (iii) the
         unadvanced portion of the applicable HQ Expansion Maximum Advance
         Amount and (iv) the unfunded Lessor Investment to be contributed by
         Lessor for the applicable HQ Expansion Costs shall be sufficient, as
         determined by Agent, to complete the HQ Expansion on or before the
         applicable Outside Completion Date within the construction budget
         therefor.

             (f)  APPRAISAL. At Lessee's expense, Lessor and Agent shall have
         received a letter update from the Appraiser, which letter shall update
         the appraisal delivered with respect to the HQ Property prior to the
         HQ Closing pursuant to SECTION 4.5(F) hereof to account for the fair
         market value of the HQ Expansion.

             (g)  TIMING. No HQ Expansion Advance shall be made after the third
         anniversary of the Closing Date.

SECTION 5.        COVENANTS

         5.1.     COVENANTS OF LESSEE. (a) NOTICE OF DEFAULTS. Lessee shall
deliver to each other party hereto, promptly upon a Responsible Officer of
Lessee becoming aware of the existence thereof, notice specifying any condition
that constitutes a Default, an Event of Default or a Casualty.

                                      25
<PAGE>   30

         (b)      FURTHER ASSURANCES. Lessee shall cause to be promptly and
duly taken, executed, acknowledged, delivered and recorded all such further
acts, documents and assurances as Lessor or Agent from time to time may
reasonably request in order to carry out more effectively the intent and
purposes of this Agreement, the Operative Documents and the transactions
contemplated hereby and thereby.

         (c)      CHIEF EXECUTIVE OFFICE. Lessee shall notify each other party
hereto promptly after any change in its chief executive office and place of
business, jurisdiction of incorporation or the office where it keeps its
records concerning its accounts relating to the transactions contemplated by
this Agreement.

         (d)      ASSIGNMENT OF LEASE. In order to secure the Notes, Lessor has
assigned all of its right, title and interest to and in the Lease and
Construction Agency Agreement to Agent. Lessee hereby consents to such
assignment.

         (e)      ADDITIONAL AFFIRMATIVE COVENANTS.

                  (i)      Lessee will furnish Agent:

                           (A)      within forty-five (45) days after the close
                  of each quarter-annual accounting period in each fiscal year
                  of Lessee, on a consolidated basis: (1) quarterly 10-Q
                  financial statements and (2) an income statement, statement
                  of cash flows and a balance sheet of Lessee for such
                  quarter-annual period. All financial statements shall be in
                  reasonable detail, subject to year-end audit adjustments, and
                  certified by Lessee's chief executive officer or chief
                  financial officer to have been prepared in accordance with
                  GAAP, except for any inconsistencies explained in such
                  certificate;

                           (B)      within ninety (90) days after the close of
                  each fiscal year of Lessee, on a consolidated basis: (1)
                  annual audited financial statements of Lessee as of the end
                  of such fiscal year, all in reasonable detail, including all
                  supporting schedules, notes and comments, and (2) an annual
                  forecast prepared by Lessee including a balance sheet, income
                  statement and statement of cash flows, to be in form and to
                  contain reasonable detail satisfactory to Lessor and Agent.
                  The annual statements shall be audited by an independent
                  certified public accountant selected by Lessee and reasonably
                  acceptable to Lessor and Agent and certified by such
                  accountants to have been prepared in accordance with GAAP,
                  except for any inconsistencies explained in such certificate.
                  Lessor and Agent shall have the right, from time to time, to
                  discuss Lessee's affairs directly with Lessee's independent
                  certified public accountants after notice to Lessee and
                  opportunity of Lessee to be present at any such discussions.
                  So long as no Default or Event of

                                      26
<PAGE>   31

                  Default has occurred and is continuing, Lessor and Agent
                  agree to coordinate discussions with Lessee's accountants so
                  as to minimize the additional expense incurred;

                           (C)      contemporaneously with each quarter-annual
                  and fiscal year-end financial report required by the
                  foregoing paragraphs (A) and (B), a certificate of the chief
                  executive officer, chief financial officer or
                  secretary/treasurer of Lessee (in his or her corporate
                  capacity) stating that: (1) such officer has individually
                  reviewed the provisions of this Agreement and the other
                  Operative Documents and is knowledgeable of the activities of
                  Lessee and its Subsidiaries during such year or
                  quarter-annual period, as the case may be, and (2) to the
                  best of such officer's knowledge, Lessee has observed and
                  performed, in all material respects, each undertaking
                  contained in this Agreement and the other Operative Documents
                  and no Default has occurred that is continuing, or if a
                  Default has so occurred and is continuing, specifying any
                  such Default of which he or she may have knowledge. Such
                  certificate shall further set forth the calculations of the
                  financial ratios and covenants set forth in SECTION
                  5.1(E)(II), including, without limitation, any antecedent
                  calculations and the source of any information that was used
                  in such calculations;

                           (D)      promptly after the sending or making
                  available or filing of the same, copies of all reports, proxy
                  statements, annual reports, and financial statements that
                  Lessee sends or makes available to its stockholders generally
                  and all registration statements and reports that Lessee files
                  with the Securities and Exchange Commission or any successor
                  Person; and

                           (E)      immediately upon receipt of the same by
                  Lessee or any Subsidiary, copies of all management letters
                  and any other reports which are submitted to Lessee or any of
                  its Subsidiaries by its independent accountants in connection
                  with any annual or interim audit of the Records of Lessee or
                  its Subsidiaries by such accountants.

         Agent shall promptly forward to the Noteholders and Lessor copies of
         all items delivered to Agent under this SECTION 5.1(E)(I).

                  (ii)     Lessee will maintain:

                           (A)      a Fixed Charge Coverage Ratio of greater
                  than 2.25 to 1, calculated quarterly on a rolling four (4)
                  quarter basis;

                                      27
<PAGE>   32

                           (B)      an Adjusted Debt to Capitalization Ratio of
                  less than or equal to 59% at all times;

                           (C)      a Funded Debt to EBITDA Ratio of less than
                  2.5 to 1, calculated quarterly, with EBITDA computed on a
                  rolling four (4) quarter basis; and

                           (D)      an Adjusted Funded Debt to EBITDAR Ratio of
                  less than 3.25 to 1, calculated quarterly with EBITDAR
                  computed on a rolling four (4) quarter basis.

         All financial covenants shall be tested on a consolidated basis and
         calculated in accordance with GAAP.

                  (iii)    Lessee and its Subsidiaries will, when requested to
         do so, make available any of their Records for inspection by duly
         authorized representatives of Agent or Lessor and will furnish Agent
         any information regarding their business affairs and financial
         condition within a reasonable time after written request therefor.
         Notwithstanding the foregoing, so long as no Default has occurred that
         is continuing, inspections of Lessee's Records shall be limited to
         once per calendar year and any costs incurred in connection with such
         inspection shall be borne by the Noteholders and Lessor.

                  (iv)     Lessee and its Subsidiaries will give immediate
         notice to Agent of: (A) any litigation or proceeding in which any of
         them is a party if an adverse decision herein would require them to
         pay more than Five Hundred Thousand Dollars ($500,000.00),
         individually or in the aggregate, or deliver assets the value of which
         exceeds such sum (if such claim is not fully covered by insurance
         subject to approved deductibles); (B) the institution of any other
         suit or proceeding involving any of them that might materially and
         adversely affect their operations, financial condition, property, or
         business operations considered on a consolidated basis and (c) any
         litigation or proceeding that involves a Property or the validity or
         enforceability of any Operative Document.

             (f)  NEGATIVE COVENANTS.

                  (i)      Neither Lessee nor any Subsidiary will change its
         name or voluntarily enter into any merger, consolidation, or
         reorganization in which Lessee or such Subsidiary is not the surviving
         entity.

                  (ii)     [INTENTIONALLY DELETED]

                                      28
<PAGE>   33

                  (iii)    Neither Lessee nor any Subsidiary will become
         liable, directly or indirectly, as guarantor or otherwise, for any
         obligation of any other Person, except, provided no Default or Event
         of Default exists or would result from Lessee or any Subsidiary
         incurring liability for the following liabilities: (A) the endorsement
         of commercial paper for deposit or collection in the ordinary course
         of business, (B) the Indebtedness described in SCHEDULE 11 attached
         hereto, (C) Equipment leases and purchase money financing for
         Equipment entered into in the ordinary course of business, (D)
         obligations to vendors and other trade payables incurred in the
         ordinary course of business which are paid in accordance with the
         customary terms provided to Lessee (or such obligations or trade
         payables which are being contested in good faith for which adequate
         security has been reserved in a manner satisfactory to Agent), (E)
         Indebtedness incurred to finance any eal Property not subject to this
         Agreement and (F) other Indebtedness incurred in the ordinary course
         of business, which, including the Indebtedness described under SECTION
         5.1(F)(IV)(G), does not, at any time, exceed $15,000,000.00 in the
         aggregate, provided the documents or instruments evidencing such
         Indebtedness contain terms and conditions consented to by Agent, which
         consent shall not be unreasonably withheld.

                  (iv)     Neither Lessee nor any Subsidiary will incur,
         create, assume, or permit to exist any Indebtedness except: (A) the
         loans made under the Bank Credit Agreement; (B) the Indebtedness
         described in SCHEDULE 11 attached hereto; and, provided no Default or
         Event of Default exists or would result from Lessee or any Subsidiary
         incurring the following Indebtedness, (C) Equipment leases, and
         purchase money financing for Equipment entered into in the ordinary
         course of business; (D) obligations to vendors and other trade
         payables incurred in the ordinary course of business which are paid in
         accordance with the customary terms provided to Lessee (or such
         obligations or trade payables which are being contested in good faith
         for which adequate security has been reserved in a manner satisfactory
         to Agent); (E) contingent Indebtedness permitted by SECTION
         5.1(F)(III); (F) Indebtedness incurred to finance any Real Property
         not subject to this Agreement and (G) other Indebtedness incurred in
         the ordinary course of business, which, including the Indebtedness
         described in SECTION 5.1(F)(III)(F) does not exceed $15,000,000.00 in
         the aggregate, provided the documents or instruments evidencing such
         Indebtedness contain terms and conditions consented to by Agent, which
         consent shall not be unreasonably withheld.

                  (v)      Except for the existing matters disclosed in on
         SCHEDULE 13 attached hereto, neither Lessee nor any Subsidiary will
         make any investment in or make any loan in the nature of any
         investment to any Person, without the prior written consent of Agent,
         which consent shall not be unreasonably withheld.

                                      29
<PAGE>   34

                  (vi)     Except as described in on SCHEDULE 14 attached
         hereto, neither Lessee nor any Subsidiary will make any loan or
         advance to any officer, shareholder, director or employee of Lessee or
         any Subsidiary, except for temporary advances in the ordinary course
         of business.

                  (vii)    Neither Lessee nor any Subsidiary will prepay any
         Subordinated Indebtedness, except in accordance with its terms.

                  (viii)   Neither Lessee nor any Subsidiary will enter into
         any sale-leaseback transaction except: (A) the transactions described
         in SCHEDULE 15 attached hereto; (B) such sale-leaseback transactions
         as shall be consented to by Agent, which consent shall not be
         unreasonably withheld, provided the proceeds of any such
         sale-leaseback transaction are applied to outstanding Indebtedness of
         Lessee; and (C) the transactions contemplated hereby and by the other
         Operative Documents.

                  (ix)     Neither Lessee nor any Subsidiary will acquire any
         stock in, or all or substantially all of the assets of, any Person,
         without the prior written consent of Agent, which consent shall not be
         unreasonably withheld.

                  (x)      Neither Lessee nor any Subsidiary will furnish
         Agent, Lessor or any Noteholder any certificate or other document that
         will contain any untrue statement of material fact or that will omit
         to state a material fact necessary to make it not misleading in light
         of the circumstances under which it was furnished.

                  (xi)     Neither Lessee nor any Subsidiary will directly or
         indirectly apply any part of the proceeds of the Advances to the
         purchasing or carrying of any "margin stock" within the meaning of
         Regulation U of the Board of Governors of the Federal Reserve System,
         or any regulation, interpretations or ruling thereunder.

                  (xii)    Except as described in SCHEDULE 16 attached hereto,
         Lessee will not, and will not permit any of its Subsidiaries to,
         directly or indirectly, enter into or permit to exist any transaction
         (including without limitation the purchase, sale, lease or exchange of
         any property or the rendering of any service) with any Affiliate
         (other than any Subsidiary which is wholly owned by Lessee) on terms
         that are less favorable to Lessee or its Subsidiaries than those that
         would be obtainable at the time from any Person who is not an
         Affiliate.

                  (xiii)   Neither Lessee nor any Subsidiary will materially
         alter its current business operations, or engage in a new business
         venture which is not reasonably compatible with Lessee's current
         business operations.

                                      30
<PAGE>   35

                  (xiv)    Lessee will not permit a change in Lessee's senior
         management, except to the extent an individual member of senior
         management is replaced with an individual with substantially
         equivalent expertise with the consent of Agent, which consent shall
         not be unreasonably withheld. For purposes of this Agreement, senior
         management shall mean Gregory L. Burns and Steve Hislop.

                  (xv)     Lessee will not declare or pay cash dividends or
         other similar distributions without the prior written consent of
         Agent.

                  (xvi)    Lessee will not purchase, redeem or retire in excess
         of $10,000,000 of Lessee's outstanding capital stock without the prior
         written consent of Agent (with the consent of the Requisite Holders).

         5.2.     COVENANTS OF LESSOR. (a) NO LESSOR LIENS. Lessor hereby
unconditionally agrees with and for the benefit of the other parties to this
Agreement that Lessor will not directly or indirectly create, incur, assume or
suffer to exist any Lessor Liens attributable to it on or against any Property
arising out of any act or omission of or claim against Lessor, and Lessor
agrees that it will, at its own cost and expense, promptly take such action as
may be necessary to duly discharge and satisfy in full any such Lessor Lien.
Lessor hereby indemnifies and holds harmless each other party hereto from and
against any loss, cost or expense (including reasonable legal fees and
expenses) which may be suffered or incurred by any of them as the result of the
failure of Lessor to discharge and satisfy any such Lessor Lien.

         (b)      CHIEF EXECUTIVE OFFICE. The Lessor shall notify each other
party hereto promptly after any change in its chief executive office and place
of business or jurisdiction of incorporation or the office where it keeps its
records concerning its accounts relating to the transactions contemplated by
this Agreement and the other Operative Documents.

         (c)      FURTHER ASSURANCES. The Lessor shall cause to be promptly and
duly taken, executed, acknowledged, delivered and recorded all such further
acts, documents and assurances as any Lessee or Agent from time to time may
reasonably request in order to carry out more effectively the intent and
purposes of this Agreement and the other Operative Documents and the
transactions contemplated hereby and thereby, including, without limitation,
amendments or continuation of any UCC-1 Financing Statements.

         (d)      FACILITY FEE. The Lessor shall pay to the Agent for the
account of the Holders a Facility Fee (the "FACILITY FEE") for the period from
and including the Closing Date to the Maturity Date in an amount per annum
equal to the applicable percentage set forth on SCHEDULE 2 times the Maximum
Series Amount for the A-Notes and B-Notes, such Facility Fee to be payable
quarterly in arrears in accordance with the provisions of SCHEDULE 2. From and
after the end of the Construction Period for each Property, the portion of the
Facility Fee payable

                                      31
<PAGE>   36

on Advances made with respect to such Property shall be paid by the Lessee as
Additional Rent under the Lease. The remainder of the Facility Fee shall be
funded by Advances and Lessor Investment until the Commitment Expiration Date,
after which time such portion of the Facility Fee shall be paid by the Lessee
to the Lessor as Additional Rent under the Lease.

SECTION 6.        ADVANCES AND LESSOR INVESTMENT

         6.1.     TERMS OF ADVANCES AND LESSOR INVESTMENT. (a) RESTAURANT
ADVANCES. Subject to the conditions precedent set forth in SECTIONS 4.1, 4.2,
4.3 AND 4.4 (i) each Noteholder shall fund a portion of each Restaurant Advance
equal to the product of (A) the applicable Series Percentage, (B) the Project
Costs requested to be funded by the applicable Requisition and (C) such
Noteholder's Commitment Percentage with respect to such Series and (ii) Lessor
shall make a Lessor Investment on the applicable Advance Date in an amount
equal to the product of (A) the Lessor Percentage and (B) the Project Costs to
be funded pursuant to the applicable Requisition.

         (b)      HQ ADVANCES. Subject to the conditions precedent set forth in
SECTIONS 4.1, 4.2, 4.5 and 4.6 (i) each Noteholder shall fund a portion of each
Advance with respect to the HQ Property (i.e., both the HQ Expansion Advances
and Advances with respect to HQ Acquisition Costs) equal to the product of (A)
the applicable Series Percentage, (B) the Project Costs requested to be funded
pursuant to the applicable Requisition and (C) such Noteholder's Commitment
Percentage with respect to such Series and (ii) Lessor shall make a Lessor
Investment on the applicable Advance Date in an amount equal to the product of
(A) the Lessor Percentage and (B) the Project Costs requested to be funded
pursuant to the applicable Requisition.

         (c)      ADVANCE DATE. Unless Agent receives notice from a Noteholder
prior to any Advance Date that such Noteholder will not make available to Agent
the Advance to be made by it on such Advance Date, Agent may assume that such
Noteholder has made its portion of the applicable Advance, and Agent may, in
reliance upon such assumption, may advance such portion on such Advance Date.
If and to the extent that such Noteholder fails to make such amount available
to Agent, such Noteholder and Lessor severally agree to repay to Agent promptly
on demand such amount together with interest thereon, for each day from the
date such amount is made available to Lessor until the date such amount is
repaid to Agent at (A) in the case of Lessor, the interest rate applicable at
the time to such Advance and (B) in the case of such Noteholder, the Federal
Funds Rate until the third Business Day after demand by Agent to such
Noteholder for such repayment and thereafter at the rate applicable at the time
to such Advance, as the case may be. If such Noteholder shall repay to Agent
such corresponding amount, such amount so repaid shall constitute the portion
such Noteholder's Advance for purposes hereof and Lessor shall thereupon be
excused from making the repayment described in the preceding sentence.

                                      32
<PAGE>   37

         (d)      OBLIGATIONS SECURED. All obligations of the Noteholders
hereunder shall be several, but not joint. The failure of any Noteholder to
make any Advance required hereunder shall not relieve any other Noteholder of
its obligation, if any, hereunder to advance its portion of such Advance, but
no Noteholder shall be responsible for the failure of any other Noteholder to
advance its portion of such Advance.

         (e)      NOTICE. Agent will give prompt notice of each Requisition to
the Noteholders and Lessor. Such notice by Agent shall specify the amount of
the Advance to be made by each Noteholder.

         6.2      CONSTRUCTION PERIOD. Anything to the contrary provided in
SECTION 6.1 notwithstanding, on each date during any Construction Period with
respect to a Property that is two (2) Business days prior to any Payment Date,
unless otherwise requested by Lessee at least three (3) Business Days prior to
such Payment Date (a) the Construction Agent shall be deemed to have requested
a Floating Rate Advance with respect to such Property in an amount equal to the
aggregate amount on interest due on such Payment Date under the Notes on the
principal amount of all Advances made with respect to such Property and (b) the
Construction Agent shall be deemed to have requested that the Lessor make a
Lessor Investment in an amount equal to the Investment Yield accrued and unpaid
as of such Payment Date on Lessor Investment made with respect to such Property
solely for the purpose of paying such accrued Investment Yield.

         6.3      INTEREST AND INVESTMENT YIELD. (a) Interest shall be charged
to and paid by Lessor to the Noteholders on each Advance and Investment Yield
shall be calculated and paid to Lessor on its Lessor Investment as follows:

                  (i)      For each Floating Rate Advance, at a floating rate
         per annum equal to the Prime Rate minus the Applicable Floating Rate
         Margin, said rate to change contemporaneously with any change in the
         Prime Rate.

                  (ii)     For a Eurodollar Advance, at a rate per annum equal
         to the LIBOR Rate plus the Applicable LIBOR Margin in accordance with
         SCHEDULE 2.

         (b)      The Investment Yield for all unreturned Lessor Investment
shall be a rate per annum equal to either (i) the LIBOR Rate plus the
Applicable LIBOR Margin or (ii) the Prime Rate plus the Applicable Floating
Rate Margin, which rate shall be selected by Lessee pursuant to the applicable
Requisition or pursuant to SECTION 6.3 (F) hereof.

         (c)      If and so long as any Noteholders or the Lessor shall be
required under regulations of the Board of Governors of the Federal Reserve
System to maintain reserves with respect to liabilities or assets consisting of
or including Eurodollar Liabilities, the Noteholders shall be entitled to
additional interest on the unpaid principal amount of each Eurodollar

                                      33
<PAGE>   38

Advance and the Lessor shall be entitled to additional yield on each Lessor
Investment, from the date of such Advance or Lessor Investment, as the case may
be, until such principal amount is paid in full, at an interest rate per annum
equal at all times to the remainder obtained by subtracting (i) the LIBOR Rate
plus the Applicable LIBOR Margin for the Eurodollar Interest Period from (ii)
the rate obtained by dividing the LIBOR Rate plus the Applicable LIBOR Margin
by a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for
such Eurodollar Interest Period, payable on each date on which interest is
payable. Such additional interest shall be determined by each Noteholder or
Lessor, which shall so notify Lessor thereof.

         (d)      The interest for Advances and Investment Yield shall be
computed on the basis of a 360-day year, counting the actual number of days
elapsed, and shall be due and payable without notice (i) quarterly in arrears
on the first day of each consecutive quarter commencing on the first day of the
first calendar quarter occurring after the initial Advance Date in the case of
Floating Rate Advances and Investment Yield calculated with reference to the
Prime Rate, and (ii) at the end of the applicable Eurodollar Interest Period
for each Eurodollar Advance or Investment Yield calculated with reference to
the LIBOR Rate.

         (e)      Notwithstanding the foregoing, upon the occurrence and
continuation of an Event of Default, interest (and Investment Yield) shall be
charged at the Default Rate regardless of whether the Noteholders have elected
to exercise any other available remedies, including without limitation
acceleration of the maturity of the outstanding principal of the Notes. All
such interest shall be paid at the time of and as a condition precedent to the
curing of any such default to the extent any right to cure is given.

         (f)      CONVERSION. Lessee shall have the right at any time, on prior
irrevocable written or telefaxed notice to Agent (a "CONVERSION NOTICE"), to
convert any Floating Rate Advance into a Eurodollar Advance, to convert any
Eurodollar Advance into a Floating Rate Advance, to change the basis of
calculation of Investment Yield from the LIBOR Rate to the Prime Rate and vice
versa, or to continue any Eurodollar Advance or Investment Yield for a
subsequent Eurodollar Interest Period (specifying in each case the Eurodollar
Interest Period to be applicable thereto), subject in each case to the
following:

                  (i)      the Conversion Notice to convert an Advance to a
         Eurodollar Advance, to convert or continue the basis for calculation
         of Investment Yield at the LIBOR Rate or to continue any Eurodollar
         Advance, must be received by Agent not later than 1:00 p.m., Nashville
         time, three (3) Business Days prior to the requested conversion date;

                  (ii)     no Eurodollar Advance shall be converted or prepaid
         (or the basis for calculation of Investment Yield changed from the
         LIBOR Rate) at any time other than at the end of the Eurodollar
         Interest Period applicable thereto;

                                      34
<PAGE>   39

                  (iii)    each conversion of an Advance (or Lessor Investment,
         as applicable) shall be effected by applying the proceeds of the new
         Eurodollar or Floating Rate Advance (or Lessor investment, as
         applicable), as the case may be, to the Advance (or Lessor investment,
         as applicable) (or portion thereof) being converted; and

                  (iv)     the number of non-coterminous Interest Periods with
         respect to Eurodollar Advances outstanding at any one time shall not
         exceed four (4) and the Lessee shall be deemed to have elected an
         Interest Period for any Investment Yield calculated as set forth in
         SECTION 6.3 (B) (I) corresponding to the Interest Period elected for
         the Eurodollar Advance funded on the same Advance Date as the
         applicable Lessor Investment.

Each Conversion Notice shall be irrevocable and shall specify (i) the identity
and principal amount of the particular Advance (or Lessor Investment, as
applicable) that Lessee requests to be converted or continued, (ii) if such
Conversion Notice requests conversion, the date of conversion (which shall be a
Business Day) and (iii) if an Advance is to be converted to a Eurodollar
Advance, or a Eurodollar Advance is to be continued, or if the basis for
calculation of Investment Yield shall be changed or continued to the LIBOR
Rate, the Eurodollar Interest Period with respect thereto. In the event that
Lessee shall fail to give notice to continue any Eurodollar Advance (or Lessor
Investment, as applicable) for a subsequent period, such Advance (or Lessor
Investment, as applicable) (unless repaid) shall automatically be converted
into a Floating Rate Advance. If Lessee shall fail to specify in the
Requisition the type of borrowing, or, in the case of a Eurodollar Advance (or
Lessor Investment, as applicable), the applicable Eurodollar Interest Period,
Lessee will be deemed to have requested a Floating Rate Advance. If Agent
reasonably believes that any failure by Lessee to specify the type of borrowing
or the applicable Eurodollar Interest Period shall have resulted from failure
of communications equipment or clerical error, then prior to funding any such
borrowing, Agent shall use reasonable efforts to obtain confirmation from
Lessee of the contents of such Conversion Notice; however, in the absence of
confirmation by Lessee that specifies the type of borrowing and the applicable
Eurodollar Interest Period, Lessee will be deemed to have requested a Floating
Rate Advance (or calculations of Investment Yield base upon the Prime Rate).
Notwithstanding anything to the contrary contained above, if an Event of
Default shall have occurred and be continuing, no Eurodollar Advance may be
continued, no Floating Rate Advance may be converted into a Eurodollar Advance
and all Investment Yield shall be calculated as set forth in SECTION 6.3
(A)(II).

         6.4      ILLEGALITY; TAXES; OTHER COSTS. (a) Notwithstanding anything
set forth herein or in any of the Operative Documents to the contrary, if, at
any time, the interest rate payable under the Notes, the Investment Yield or
any other amounts payable under the Operative Documents shall be deemed by any
competent court of law, governmental agency or tribunal to exceed the maximum
rate of interest, yield or other applicable amount permitted by any Applicable
Law, for such time as such interest rate, yield or other applicable change
would be deemed excessive,

                                      35
<PAGE>   40

its application shall be suspended and there shall be charged instead the
maximum rate of interest yield or other applicable change permissible under
Applicable Law.

         (b)      In the event, and on such occasion, that on the date of
commencement of any Eurodollar Interest Period for a Eurodollar Advance or
Lessor Investment, any Noteholder or the Lessor shall have reasonably
determined:

                  (i)      that dollar deposits in the amount of the requested
         principal amount of such Eurodollar Advance or Lessor Investment are
         not generally available to first-class banks in the London Interbank
         Market;

                  (ii)     that the rate at which such dollar deposits are
         being offered will not adequately and fairly reflect the cost to such
         Noteholder or Lessor of making or maintaining such Eurodollar Advance
         or Lessor Investment during such Eurodollar Interest Period; or

                  (iii)    that reasonable means do not exist for ascertaining
         the LIBOR Rate generally, such Noteholder or the Lessor, as the case
         may be, shall, as soon as practicable thereafter, given written or
         telephonic notice of such determination to Lessee. In the event of any
         such determination, (A) any request by Lessee for a Eurodollar Advance
         pursuant to SECTION 6.1 shall, until the circumstances giving rise to
         such notice no longer exist, be deemed to be a request for a Floating
         Rate Advance and (B) until the circumstances giving rise to such
         notice no longer exist, the Investment Yield shall be a rate per annum
         equal to the Prime Rate plus the Applicable Floating Rate Margin. Each
         determination by the Noteholders or Lessor hereunder shall be
         conclusive absent manifest error.

         (c)      Notwithstanding any other provision herein, if after the date
of this Agreement any change in Applicable Law or in the interpretation or
administration thereof by any Governmental Authority charged with the
interpretation or administration thereof (whether or not having the force of
law) shall change the basis of taxation of payments to a Noteholder under any
Eurodollar Advance made by a Noteholder or to the Lessor with respect to Lessor
Investment or any other fees or amounts payable hereunder (other than taxes
imposed on the overall net income of a Noteholder or the Lessor by the country
in which a Noteholder or the Lessor is located, or by the jurisdiction in which
a Noteholder or the Lessor has its principal office, or by any political
subdivision or taxing authority therein), or shall impose, modify, or deem
applicable any reserve requirement, special deposit, insurance charge
(including FDIC insurance on Eurodollar deposits) or similar requirements
against assets of, deposits with or for the account of, or credit extended by,
such Noteholder or the Lessor or shall impose on such Noteholder or the Lessor
or the London Interbank Market any other condition affecting this Agreement or
Eurodollar Advances made by such Noteholder or Lessor Investment made by the

                                      36
<PAGE>   41

Lessor, and the result of any of the foregoing shall be to increase the cost to
the Noteholder of making or maintaining its Eurodollar Advance or the cost to
the Lessor of making or maintaining its Lessor Investment or to reduce the
amount of any sum received or receivable by such Noteholder for any of its
Eurodollar Advances hereunder (whether of principal, interest or otherwise) or
the amount of any sum received or receivable by the Lessor for its Lessor
Investment hereunder by an amount reasonably deemed by the Noteholder or the
Lessor, as the case may be, to be material, then Lessor will pay to such
Noteholder and Lessee shall reimburse Lessor as Additional Rent under the Lease
or Lessee shall pay to Lessor, as Additional Rent under the Lease, as
applicable, such additional amount or amounts as will reasonably compensate
such Noteholder or the Lessor for such additional costs.

         (d)      If either:

                  (i)      the introduction of, or any change in, or in the
         interpretation of, any United States or foreign law, rule or
         regulation; or

                  (ii)     compliance with any directive, guidelines or request
         from any central bank or other United States or foreign Governmental
         Authority (whether or not having the force of law) promulgated or made
         after the date hereof (but excluding, however, any law, rule,
         regulation, interpretation, directive, guideline or request
         contemplated by or resulting from the report dated July 1988, entitled
         "International Convergence of Capital Measurement and Capital
         Standards" issued by the Basic Committee on Banking Regulations and
         Supervisory Practices), affects or would affect the amount of capital
         required or expected to be maintained by any Noteholder (or any
         lending office of any Noteholder), Lessor (or any lending office of
         Lessor) or any corporation directly or indirectly owning or
         controlling any Noteholder or Lessor (or any lending office of any
         Noteholder or Lessor) based upon the existence of this Agreement or
         its Advances, and such Noteholder or Lessor shall have determined that
         such introduction, change or compliance has or would have the effect
         of reducing the rate of return on such Noteholder's or Lessor's
         capital or on the capital of such owning or controlling corporation as
         a consequence of its obligations hereunder (including its commitment
         to make additional Advances or Lessor Investment hereunder) to a level
         below that which such Noteholder or Lessor or such owning or
         controlling corporation could have achieved but for such introduction,
         change or compliance (after taking into account that such Noteholder's
         or Lessor's policies or the policies of such owning or controlling
         corporation, as the case may be, regarding capital adequacy) by an
         amount deemed by such Noteholder or Lessor (in its sole discretion) to
         be material, then Lessor will pay to such Noteholder (and Lessee will
         reimburse Lessor as Additional Rent under the Lease) or Lessee will
         pay to Lessor such additional amount or amounts as will compensate the
         Noteholder or Lessor for such reduction attributable to making,
         funding and maintaining its Advances or Lessor Investment hereunder.

                                      37
<PAGE>   42

         (e)      A certificate of any Noteholder or Lessor setting forth such
amount or amounts as shall be necessary to compensate such Noteholder or Lessor
(or its participating banks or other entities pursuant to this Agreement), as
specified in paragraph (i) or (ii) of SECTION 6.4(D), as the case may be, shall
be delivered to Lessee and shall be conclusive absent manifest error; provided,
however, that Lessee shall be responsible for compliance herewith and the
payment of increased costs only to the extent:

                  (1)      any change in Applicable Law giving rise to
         increased costs occurs after the date of this Agreement and such
         change is generally applicable to financial institutions similarly
         situated to the Noteholders and Lessor; and

                  (2)      such costs arise or accrue after the day that is one
         hundred eighty (180) Business Days after the date on which such
         Noteholder or Lessor provides Lessee with written notice specifying
         the change or event giving rise to such increased costs.

Subject to the foregoing, Lessee shall pay the affected Noteholder or Lessor
the amount shown as due on any such certificate within ten (10) days after its
receipt of such certificate.

         (f)      The protections of SECTIONS 6.4 shall be available to the
Noteholders and Lessor regardless of any possible contention of invalidity or
inapplicability of Applicable Law.

         (g)      Notwithstanding anything to the contrary herein contained, if
any change in any law or regulation or in interpretation thereof by any
Governmental Authority charged with the administration or interpretation
thereof shall make it unlawful for any Noteholder to make or maintain any
Eurodollar Advance or to give effect to its obligations to make Eurodollar
Advances or for Lessor to collect Investment Yield based upon the LIBOR Rate as
contemplated hereby, then, by written notice to Lessee, such Noteholder or
Lessor, as applicable, may:

                  (i)      declare that Eurodollar Advances will not thereafter
         be made by such Noteholder hereunder, whereupon Lessee shall be
         prohibited from requesting Eurodollar Advances from the Noteholders
         hereunder unless such declaration is subsequently withdrawn; and/or

                  (ii)     require, in the case of Noteholders that all
         outstanding Eurodollar Advances made by it be converted to Floating
         Rate Advances, in which event (a) all such Eurodollar Advances shall
         be automatically converted to Floating Rate Advances as of the
         effective date of such notice as provided in paragraph (B) below, and
         (b) all payments and prepayments of principal that would otherwise
         have been applied to repay the converted Eurodollar Advances shall
         instead be applied to repay the Floating Rate Advances resulting from
         the conversion of such Eurodollar Advances and, in the case of

                                      38
<PAGE>   43

         Lessor that all Investment Yield be therefore calculated at an annual
         rate equal to the Applicable Prime Rate plus the Applicable Floating
         Rate Margin.

For purposes of this SECTION 6.4(g), a notice to Lessee by any Noteholder or
Lessor pursuant to clause (i) above shall be effective, if lawful, on the last
day of the then current Eurodollar Interest Period; in all other cases, such
notice shall be effective on the date of receipt by Lessee.

         6.5.     PAYMENTS. (a) Agent shall send Lessor and Lessee statements
of all amounts due under the Notes and of the Investment Yield for the
applicable period, which statements shall be considered correct and
conclusively binding unless Lessee notifies Agent to the contrary within ten
(10) days of its receipt of any statement which it deems to be incorrect. All
sums payable to the Noteholders and Lessor hereunder shall be paid directly to
Agent for the account of each Noteholder or Lessor, as appropriate in
immediately available funds prior to 12:00 noon, Nashville time, on the date
when such sums are due and payable. Any amounts received by Agent prior to
12:00 noon Nashville time on any Business Day shall be deemed to have been
received by all Noteholders or Lessor, as appropriate, on such Business Day,
and any amounts received by Agent after such time shall be deemed to have been
received by all Noteholders or Lessor, as appropriate, on the next Business
Day.

         (b)      Subject to ARTICLE 4 of the Intercreditor Agreement, each
payment made to Agent on the Notes or for other sums or fees due hereunder or
under any other Operative Document for the account of the Noteholders shall be
properly remitted by Agent to each Noteholder, pro rata in accordance with the
outstanding unpaid principal amount of the Notes held by each Noteholder, no
later than 2:00 p.m., Nashville time, on the date on which Agent receives such
payment.

         6.6.     ASSIGNMENTS/PARTICIPATIONS. (a) Each Noteholder may, with the
prior written consent of Lessee (which may not be unreasonably withheld) and
Agent, assign to one or more assignees all or a portion (but not less than
$2,500,000 without the consent of Agent in its sole discretion) of its
interests, rights and obligations under this Agreement and the other Operative
Documents (including, without limitation, all or a portion of the Advances at
the time owing to it and the Notes held by it); provided, however, that (a)
each such assignment shall be of a constant, and not a varying, percentage of
the applicable Noteholder's interest in each Series of Notes and of all the
assigning Noteholder's rights and obligations under this Agreement and the
other Operative Documents, and (b) the parties to each such assignment shall
execute and deliver to Agent, for its acceptance, an Assignment and Acceptance,
together with any Note or Notes subject to such assignment. Upon such
execution, delivery and acceptance, from and after the effective date specified
in each Assignment and Acceptance, which effective date shall be at least five
Business Days after the execution thereof, (i) the assignee thereunder shall be
a party hereto and, to the extent provided in such Assignment and Acceptance,
have the rights and obligations of a Noteholder hereunder and under the Other
Operative Documents, and (ii) the

                                      39
<PAGE>   44

assigning Noteholder thereunder shall, to the extent provided in such
assignment, be released from its obligations under this Agreement.
Notwithstanding the foregoing, each Noteholder may assign its interest under
this Agreement and the other Operative Documents without the consent of any
other party (but in compliance with such reasonable documentation requirements
as Agent may impose) to (A) to any institutional Affiliate of such Noteholder
or (B) to the Federal Reserve Bank or any branch thereof as collateral in the
ordinary course of business.

         (b)      Notwithstanding any other provision of this Agreement, Lessee
agrees that any Noteholder may at any time enter into participation agreements
with one or more participants whereby such Noteholder will allocate certain
percentages of its interests in the Notes and its rights and obligations
hereunder and under the other Operative Documents to such participants. Lessee
acknowledges that, for the convenience of all parties, this Agreement and the
other Operative Documents has been entered into with the Noteholders only and
that Lessee's obligations hereunder are undertaken for the benefit of, and as
an inducement to, any such participant as well as the Noteholders; provided
that such participating Noteholders shall not become "Noteholders" hereunder,
or be entitled to exercise directly any of the rights or remedies of the
Noteholders hereunder.

SECTION 7.        INDEMNITY; WALK AWAY EVENT

         7.1.     GENERAL INDEMNIFICATION AND WAIVER OF CERTAIN CLAIMS. (a)
CLAIMS DEFINED. For the purposes of this SECTION 7.1, "CLAIMS" shall mean any
and all costs, expenses, liabilities, obligations, losses, damages, penalties,
actions or suits or claims of whatsoever kind or nature (whether or not on the
basis of negligence, strict or absolute liability or liability in tort) which
may be imposed on, incurred by, suffered by, or asserted against an Indemnified
Person, as defined herein, or any Property and, except as otherwise expressly
provided in this SECTION 7.1, shall include, but not be limited to, all
reasonable and documented out-of-pocket costs, disbursements and expenses
(including reasonable and documented legal fees and expenses) paid or incurred
by an Indemnified Person in connection therewith or related thereto.

         (b)      INDEMNIFIED PERSON DEFINED. For the purposes of this SECTION
7.1, "INDEMNIFIED PERSON" means Agent, the Noteholders, Lessor and each of
their respective Affiliates and affiliated directors, officers, employees,
successors and permitted assigns, agents and servants (such directors,
officers, employees, successors and permitted assigns, agents and servants
being referred to herein collectively as the "RELATED INDEMNITEE GROUP").

         (c)      CLAIMS INDEMNIFIED. Lessee agrees, whether or not any of the
transactions contemplated hereby or by any other Operative Document shall be
consummated, to assume liability for, and to indemnify, protect, defend, save
and keep harmless each Indemnified Person, from and against any and all Claims
that may be imposed on, incurred by, or asserted against, any Indemnified
Person, whether or not such Indemnified Person shall also be

                                      40
<PAGE>   45

indemnified as to any such Claim by any other person and whether or not such
Claim arises or accrues prior to the date hereof, arising out of, in any way
relating to, resulting from, or in connection with, in each case, directly or
indirectly, any one or more of the following:

                  (i)      (A) the ownership, lease, operation, possession,
         occupancy, modification, improvement, abandonment, use, non-use,
         maintenance, sublease, substitution, control, repair, storage,
         alteration, transfer or other application or disposition, return,
         overhaul, testing, servicing, replacement or registration of any
         Property (including, without limitation, injury to, or death of any
         person or property damage or any other thing occurring on or resulting
         from activities on or with respect to the Properties or any part
         thereof); (B) any Environmental Activity, Default or Event of Default;
         and (C) any protest or contest by Lessee pursuant to SECTION 8 of the
         Lease;

                  (ii)     the construction, financing, refinancing, design,
         purchase or condition of any Property (including, without limitation,
         latent and other defects, whether or not discoverable, and any claim
         for patent, trademark or copyright infringement);

                  (iii)    any act or omission (whether negligent or otherwise)
         or any breach of or failure to perform or observe, or any other
         non-compliance with, any covenant, condition or agreement to be
         performed by, or other obligation of Lessee (including in its capacity
         as Construction Agent) or any Subsidiary under any of the Operative
         Documents or any other agreement to which it is a party; or the
         falsity of any representation or warranty of Lessee (including in its
         capacity as Construction Agent) or any Subsidiary in any of the
         Operative Documents or in any document or certificate delivered in
         connection therewith;

                  (iv)     any failure of (A) any Ground Lease or the Lease to
         create a valid and subsisting leasehold estate in the applicable
         Property, (B) any deed to vest a valid and subsisting fee simple title
         to the applicable Property in Lessor or (C) any Mortgage to constitute
         valid and perfected first priority liens on, and security interests
         in, the applicable Property in favor of Agent, in each case, subject
         only to the Permitted Encumbrances; and

                  (v)      any violation of law, rule, regulation or order by
         Lessee or any sublessee or any of their respective directors,
         officers, employees, agent or servants.

         (d)      TAX INDEMNITY. (i) Lessee shall pay and assume liability for,
and does hereby agree to indemnify, protect and defend the Property and each
Indemnified Person, and hold them harmless against, all Impositions.

                                      41
<PAGE>   46

                  (ii)     Lessee shall pay or cause to be paid all Impositions
         directly to the taxing authorities where feasible and otherwise to the
         Indemnified Person, as appropriate, and Lessee shall at its own
         expense, upon such Indemnified Person's reasonable request, furnish to
         such Indemnified Person copies of official receipts or other
         satisfactory proof evidencing such payment.

                  (iii)    In the case of Impositions for which no contest is
         conducted pursuant to Section 8 of the Lease and which Lessee pays
         directly to the taxing authorities, Lessee shall pay such Impositions
         prior to the latest time permitted by the relevant taxing authority
         for timely payment. In the case of Impositions for which Lessee
         reimburses a Indemnified Person, Lessee shall do so within twenty (20)
         days after receipt by Lessee of demand by such Indemnified Person
         describing in reasonable detail the nature of the Imposition and the
         basis for the demand (including the computation of the amount
         payable), but in no event shall Lessee be required to pay such
         reimbursement prior to thirty (30) days before the latest time
         permitted by the relevant taxing authority for timely payment. In the
         case of Impositions for which a contest is conducted pursuant to
         Section 8 of the Lease, Lessee shall pay such Impositions or reimburse
         such Indemnified Person for such Impositions, to the extent not
         previously paid or reimbursed, prior to the latest time permitted by
         the relevant taxing authority for timely payment after conclusion of
         all contests under Section 8 of the Lease.

                  (iv)     At Lessee's request, the amount of any
         indemnification payment by Lessee pursuant to subsection (i) shall be
         verified and certified by an independent public accounting firm
         mutually acceptable to Lessee and the Indemnified Person. The fees and
         expenses of such independent public accounting firm shall be paid by
         Lessee unless such verification shall result in an adjustment in
         Lessee's favor of 10% or more of the payment as computed by such
         Indemnified Person, in which case such fee shall be paid by such
         Indemnified Person.

                  (v)      Lessee shall be responsible for preparing and filing
         any real and personal property or ad valorem tax returns in respect of
         the Property. In case any other report or tax return shall be required
         to be made with respect to any obligations of Lessee under or arising
         out of subsection (i) and of which Lessee has knowledge, Lessee, at
         its sole cost and expense, shall notify the relevant Indemnified
         Person of such requirement and (except if such Indemnified Person
         notifies Lessee that such Person intends to file such report or
         return) (A) to the extent required or permitted by and consistent with
         applicable law, make and file in its own name such return, statement
         or report; and (B) in the case of any other such return, statement or
         report required to be made in the name of such Indemnified Person,
         advise such Indemnified Person of such fact and prepare such return,
         statement or report for filing by such Indemnified Person or, where
         such return, statement or report shall be required to reflect items in
         addition to any obligations of

                                      42
<PAGE>   47

         Lessee under or arising out of subsection (i), provide such
         Indemnified Person at Lessee's expense with information sufficient to
         permit such return, statement or report to be properly made with
         respect to any obligations of Lessee under or arising out of
         subsection (i). Such Indemnified Person shall, upon Lessee's request
         and at Lessee's expense, provide any data maintained by such
         Indemnified Person (and not otherwise within the control of Lessee)
         with respect to the Property which Lessee may reasonably require to
         prepare any required tax returns or reports;

                  (vi)     If a written claim is made against any Indemnified
         Person or if any proceeding shall be commenced against such
         Indemnified Person (including a written notice of such proceeding),
         for any Impositions, such Indemnified Person shall promptly notify
         Lessee in writing and shall not take action with respect to such claim
         or proceeding without the consent of Lessee for thirty (30) days after
         the receipt of such notice by Lessee; provided, that, in the case of
         any such claim or proceeding, if action shall be required by law or
         regulation to be taken prior to the end of such 30-day period, such
         Indemnified Person shall, in such notice to Lessee, inform Lessee, and
         no action shall be taken with respect to such claim or proceeding
         without the consent of Lessee before the end of such shorter period;
         provided, further, that the failure of such Indemnified Person to give
         the notices referred to this sentence shall not diminish Lessee's
         obligation hereunder except to the extent such failure precludes
         Lessee from contesting all or part of such claim.

         (e)      For purposes of the indemnification provided in this SECTION
7.1, the term "PROPERTY" shall include both the HQ Property and Restaurant
Properties as well as any property considered as proposed for inclusion as a
Restaurant Property, whether or not actually included.

         (f)      LESSEE'S CLAIMS EXCLUDED. The following are excluded from the
agreement to indemnify under this SECTION 7.1:

                  (i)      Claims to the extent such claims are attributable to
         acts or events occurring with respect to any Property after the last
         to occur of (x) the earlier to occur of the termination of the Lease
         or the expiration of the Term, (y) the return of such applicable
         Property to Lessor in accordance with the Lease and (z) the release of
         the lien of the applicable Mortgage on such Property;

                  (ii)     Claims related to any Lessor Liens;

                  (iii)    with respect to an Indemnified Person, Claims to the
         extent attributable to the gross negligence, willful misconduct,
         misrepresentation or breach of covenant under the Operative Documents
         of such Indemnified Person; or

                                      43
<PAGE>   48

                  (iv)     consequential damages.

         (g)      INSURED CLAIMS. In the case of any Claim indemnified by
Lessee hereunder which is covered by a policy of insurance maintained by Lessee
pursuant to SECTION 9 of the Lease or otherwise, each Indemnified Person agrees
to provide reasonable cooperation to the insurers in the exercise of their
rights to investigate, defend or compromise such Claim as may be required to
retain the benefits of such insurance with respect to such Claim.

         (h)      CONSTRUCTION PERIOD. Anything to the contrary provided in
this Agreement or the other Operative Documents notwithstanding, during any
Construction Period with respect to a Property (and for purposes of the
application of this Section during the Construction Period relating to the HQ
Expansion, the term "Property" shall refer only to the Improvements
constituting the HQ Expansion),(i) the Lessee shall not be obligated under any
of the Operative Documents to indemnify (A) any Person other than the Lessor
with respect to Claims arising with respect to such Property; (B) any Person
with respect to any costs arising from third-party damage claims relating to
such Property, other than (1) those Claims caused by or resulting from the
actions or failure to act by Construction Agent or any of its agents,
employees, consultants, contractors or subcontractors (or anyone else under the
control of Construction Agent or such Persons) while the Lessee or Construction
Agent is in possession or control of such Property, and (2) those Claims
imposed, incurred or asserted (x) pursuant to SECTION 7.1(L), (y) as a result
of a breach of the representations and warranties made by the Lessee pursuant
to SECTION 3.2(J) or (2) a violation by the Construction Agent of the covenants
contained in Section 4 of the Agency Agreement and (ii) Lessor shall, subject
to SECTION 11.14 hereof, assume liability for, and indemnify, protect, defend,
save and keep harmless each other Indemnified Person from and against all
claims that may be imposed on, incurred by, or asserted against, any such
Indemnified Person, arising out of, in any way relating to, resulting from, or
in connection with, in each case, directly or indirectly, any one or more of
the matters set forth in SECTION 7.1 (C) to the extent such Claim arises with
respect to a Property during the Construction Period for such Property, which
indemnity shall be subject to the limitations set forth in SECTION 7.1(F) and
shall otherwise be governed by the provisions of SECTION 7.1.

         (i)      CLAIMS PROCEDURE. An Indemnified Person shall promptly notify
Lessee of any Claim as to which indemnification is sought; provided, however,
that the failure to give such notice shall not release Lessee from any of its
obligations under this SECTION 7.1 except to the extent (and only to such
extent) that such delay shall result in actual prejudice to Lessee. Subject to
the rights of insurers under policies of insurance maintained by Lessee and
subject to the proviso below, Lessee shall have the right in each case, at
Lessee's sole expense, to investigate, and the right in its sole discretion to
defend or compromise, any Claim which if adversely determined

                                      44
<PAGE>   49

would give rise to a payment by Lessee under this SECTION 7.1 and the
Indemnified Person shall cooperate with all reasonable requests of each Lessee
in connection therewith; provided that (i) no right to defend or compromise
such Claim shall exist if an Event of Default shall have occurred and be
continuing, (ii) Lessee shall keep each Indemnified Person which is the subject
of such proceeding fully apprised of the status of such proceeding and shall
provide such Indemnified Person with all material information with respect to
such proceeding as such Indemnified Person shall reasonably request, (iii) such
proceeding will not involve any

                                      45
<PAGE>   50

material danger of the sale, forfeiture or loss of, or the creation of any Lien
(other than a Permitted Exception or a Lien which is adequately bonded to the
satisfaction of such Indemnified Person) on, any Property, (iv) in the good
faith opinion of such Indemnified Person, upon written advice from its counsel
(the reasonable and documented fees and expenses of such counsel in connection
with the rendering of such advice being at the cost and expense of Lessee),
there exists no actual or potential conflict of interest such that it is
advisable for such Indemnified Person to retain control of such proceeding or
(v) such claim or liability involves no reasonable possibility of criminal
sanctions or liability to such Indemnified Person. In the circumstances
described in clauses (i) through (v) above, the Indemnified Person shall, after
delivery of written notice to Lessee (which notice shall specify in reasonable
detail the Indemnified Party's basis for claiming that any circumstance in
clauses (i) through (v) above applies), be entitled to control and assume
responsibility for the defense of such claim or liability at the expense of
Lessee; provided, however, that Lessee shall have the right to participate in
such contest, including, without limitation, the right, to the extent permitted
by law, to attend private party, governmental or judicial conferences
concerning such Claim and the right to review all submissions to any private
party, governmental or other authority. In addition, at its own expense (or at
the expense of Lessee in the event the circumstances described in clauses (i)
through (v) above shall apply and Lessee shall continue to control the defense
of such claim or liability), any Indemnified Person may participate in any
proceeding controlled by Lessee. Lessee may in any event participate in all
such proceedings at its own cost; provided that where Lessee or the insurers
under a policy of insurance maintained by Lessee undertake the defense of an
Indemnified Person with respect to a Claim, no additional legal fees or
expenses of such Indemnified Person in connection with the defense of such
Claim shall be indemnified hereunder unless such fees or expenses were incurred
at the request of Lessee or such insurers or the circumstances described in
clauses (i) through (v) above shall apply. Nothing contained in this SECTION
7.1(I) shall be deemed to require an Indemnified Person to contest any Claim or
to assume responsibility for or control of any judicial proceeding with respect
thereto.

         (j)      CONFLICTING PROVISIONS. The general indemnification
provisions of this SECTION 7.1 are not intended to waive or supersede any
specific provisions of, or any rights or remedies of Lessee under the Lease,
the Agency Agreement, this Agreement or any other Operative Document to the
extent such provisions apply to any Claim. Without limiting any other
obligation of Lessee under any of the Operative Documents, the general
indemnification provisions of this SECTION 7.1 do not constitute a guaranty by
Lessee that the principal of, interest on or any amounts payable with respect
to the Notes will be paid.

         (k)      SURVIVAL. The representations, warranties, indemnities,
agreements and rights provided for in SECTION 7.1, and Lessee's obligations
under any and all provisions thereof, shall survive the delivery of the
Properties and the expiration or other termination of this Participation
Agreement and the other Operative Documents.

                                      46
<PAGE>   51

         (l)      Subject to SECTION 7.1(D), Lessee acknowledges and agrees
that its obligations under this SECTION 7.1 are intended to include and extend
to any and all liabilities, sums paid in settlement of claims, obligations,
charges, actions, Liens, taxes, damages (including punitive damages, penalties,
fines, court costs, administrative service fees, response and remediation
costs, stabilization costs, encapsulation costs, treatment, storage or disposal
costs), imposed upon or incurred by or asserted at any time against any
Indemnified Party (whether or not indemnified against by any other party)
arising directly or indirectly out of: (i) the treatment, storage, disposal,
generation, use, transport, movement, presence, release, threatened release,
spill, installation, sale, emission, injection, leaching, dumping, escaping or
seeping of any Hazardous Materials or material containing or alleged to contain
Hazardous Materials at or from the Property or any part thereof; (ii) the
violation or alleged violation of any Environmental Laws relating to or in
connection with the Property or any part thereof or any acts or omissions
thereon or relating thereto; (iii) all other federal, state and local
Applicable Laws designed to protect the environment or persons or property
therein, whether now existing or hereinafter enacted, promulgated or issued by
any federal, state, county, municipal or other Governmental Authority; and (iv)
Lessee's failure to comply with its obligations under SECTION 3.2 of the Lease.

         7.2      WALK AWAY EVENT. If a Walk-Away Event shall have occurred,
and no Default or Event of Default has occurred and is continuing, Lessee shall
have the right to terminate the Lease, the Agency Agreement and the other
Operative Agreements (in each case, with respect only to the Property affected
by such Walk Away Event) by notice to the Lessor and Agent and, upon
termination and satisfaction of the other requirements under Section 23.1 of
the Lease, Lessee shall have no financial or other obligations under any of the
Operative Agreements with respect to the affected Property except (i) specific
obligations of Lessee under the Operative Agreement that accrued prior to
termination of Lease, (ii) obligations of Lessee arising out of any event,
condition, act, or circumstance, or breach which is subject to the
indemnification provisions of SECTION 7.1 of this Agreement and which exists or
occurs prior to termination of the Lease, and (iii) provisions of the Operative
Agreement which are expressly stated to continue after termination.

SECTION 8.        LESSEE'S RIGHT OF QUIET ENJOYMENT; NONDISTURBANCE

         Each party to this Agreement acknowledges notice of, and consents in
all respects to, the terms of the Lease and expressly, severally and, as to its
own actions only, agrees that, so long as no Lease Event of Default has
occurred and is continuing under the Lease and such Lease has not been
terminated as a result of such Lease Event of Default, it shall not take or
cause to be taken any action contrary to Lessee's rights under the Lease,
including, without limitation, the right to possession, use and quiet enjoyment
by Lessee or any permitted sublessee.

                                      47
<PAGE>   52

                  (i)      The Lease and all of Lessee's rights thereunder are
         and shall be at all times and in all respects subject and subordinate
         to the liens of the Mortgages and to all Advances now or hereafter
         made under or secured by the Mortgages applicable thereto and all
         renewals, modifications, consolidations, replacements, substitutions,
         additions and extensions of the Mortgages.

                  (ii)     Provided no Lease Event of Default shall have
         occurred and be continuing as of the date Agent commences a
         foreclosure action, (A) Lessee shall not be named as a party in any
         action or proceeding to enforce any Mortgage, unless such joinder
         shall be required under applicable law, and in which case Agent shall
         not seek affirmative relief from such Lessee in such action or
         proceeding, nor shall the Lease be cut off or terminated nor Lessee's
         possession thereunder be disturbed in any such action or proceeding,
         and (B) subject to the provisions of clause (iv) below, Agent will
         recognize the Lease and Lessee's rights thereunder.

                  (iii)    Upon any foreclosure of any Mortgage or other
         acquisition of the Property encumbered thereby, Lessee shall attorn to
         Agent or any other party acquiring said property or so succeeding to
         Lessor's rights (collectively, a "SUCCESSOR OWNER") and shall
         recognize the Successor Owner as its landlord under the Lease and
         Lessee shall promptly execute and deliver any instrument that the
         Successor Owner may reasonably request in writing to evidence further
         said attornment.

                  (iv)     Upon such attornment or other acquisition of said
         Property, the Lease shall continue as a direct lease between the
         Successor Owner and such Lessee upon all terms, covenants and
         conditions thereof as are then applicable except that the Successor
         Owner shall not be (A) liable for any previous act or omission of
         Lessor, individually, under the Lease, (B) subject to any offsets,
         defenses, claims or counterclaims that Lessee may have against Lessor
         individually or (C) bound by any amendment, modification, extension,
         expansion, termination, cancellation or surrender of such Lease unless
         approved in writing by Agent.

                  (v)      The attornment provided for in clause (iii) above
         shall inure to the benefit of Agent or any Successor Owner, shall be
         self-operative, and no further instrument shall be required to give
         effect to the attornment. Lessee, however, upon demand of Agent or any
         Successor Owner, as the case may be, agrees to execute, from time to
         time, instruments in confirmation thereof, reasonably satisfactory to
         Agent or any such Successor Owner, acknowledging such attornment and
         setting forth the terms and conditions of its tenancy. Nothing
         contained in this Section shall be construed to impair any right
         otherwise exercisable by Agent or any such Successor Owner.

                                      48
<PAGE>   53

SECTION 9.        EVENTS OF DEFAULT; REMEDIES

         9.1.     EVENTS OF DEFAULT. If any of the following events shall occur
and be continuing, it shall constitute an "EVENT OF DEFAULT" hereunder:

                  (a)      NON-PAYMENT OF PRINCIPAL AND STATED AMOUNT. The
         principal amount of any Note is not paid when due; or

                  (b)      NON-PAYMENT OF INTEREST. Any interest payable under
         the Notes or any other amount payable under SECTION 6.3 is not paid
         when due; or

                  (c)      NON-PAYMENT OF COSTS. Lessor fails to pay when due
         any sums payable by it hereunder or under any other Operative Document
         including, without limitation, Breakage Costs, Taxes and/or any other
         amounts payable under SECTION 6.4, and such failure continues for
         thirty (30) days or such other period of grace provided for herein; or

                  (d)      NON-PAYMENT OF FEES. Lessor fails to pay when due
         any fee payable under SECTION 11.12 or any other amount payable by it
         hereunder and such failure continues for thirty (30) days or such
         other period of grace provided for herein; or

                  (e)      REPRESENTATIONS AND WARRANTIES. Any representation
         or warranty made by Lessee or any Subsidiary Guarantor under or in
         connection with any Operative Document proves to have been incorrect
         in any material respect when made or repeated and either (i) such
         representation or warranty cannot be remedied or (ii) such
         representation or warranty continues to be incorrect in any material
         respect for thirty (30) days (or for such longer period as is
         reasonably necessary to remedy the same so long as Lessee diligently
         pursues the same) after either (A) such incorrectness is acknowledged
         in writing by Lessee or (B) written notice thereof is given to Lessee
         or such Subsidiary Guarantor, as the case may be, by Agent or any
         Noteholder; or

                  (f)      FINANCIAL, LIEN AND DEBT COVENANTS. Lessee fails to
         perform or observe any term, covenant or agreement set forth in
         SECTION 5.1(F); or

                  (g)      COVENANTS. Lessee or any Subsidiary Guarantor fails
         to perform or observe any term, covenant or agreement contained in
         this Agreement or any other Operative Document (other than (i) those
         specifically referred to in subsections (A), (B), (C) (D), (E) and (F)
         of this SECTION 9.1 or (ii) those for which a specified grace or cure
         period is provided under the applicable Operative Document) and such
         failure (1) is not capable of cure or (2) continues for ninety (90)
         days (or for such longer period as is reasonably necessary to remedy
         the same so long as Lessee diligently pursues the same) after either
         (i) it is acknowledged in writing by Lessee or (ii) written notice
         thereof is given to Lessee by Agent; or

                                      49
<PAGE>   54

                  (h)      DEBT. Lessee or any of its Subsidiaries shall
         default in any other Indebtedness for borrowed money, directly or
         indirectly, whether matured or unmatured, which is in excess of
         $2,500,000.

                  (i)      LESSEE BANKRUPTCY. Lessee or any Subsidiary
         Guarantor is generally not paying its debts as they become due or
         admits in writing its inability to pay its debts generally or makes a
         general assignment for the benefit of creditors; or any proceeding is
         instituted by or against any such Person seeking an order for relief
         under the United States Bankruptcy Code or seeking liquidation,
         winding up, reorganization, arrangement, adjustment, protection,
         relief, or composition of it or its debts or the appointment of a
         receiver, trustee, custodian or other similar official for it or for
         any substantial part of its property under any law relating to
         bankruptcy, insolvency, liquidation or reorganization or relief of
         debtors and either (i) any such relief in any such proceeding is
         sought or consented to by it or an order for any such relief is
         entered against it, or (ii) any such proceeding instituted against it
         remains undismissed and unstayed for a period of 60 days; or any such
         party takes any corporate action to authorize any of the actions set
         forth above; or

                  (j)      JUDGMENTS. Lessee or any of its Subsidiaries shall
         (i) suffer a final judgment (which is not covered by insurance subject
         to approved deductibles) requiring payment of money (including costs
         and expenses) aggregating in excess of $500,000, which judgment is not
         discharged within a period of thirty (30) days unless, pending further
         proceedings, execution has been effectively stayed pending appeal, to
         the satisfaction of Agent, or (ii) suffer a final judgment or
         judgments (which are not covered by insurance subject to approved
         deductibles), requiring payment of money (including costs and
         expenses) in an aggregate amount in excess of $2,000,000; or

                  (k)      LITIGATION. Lessee or any of its Subsidiaries shall
         pay, in satisfaction of any final nonappealable judgment or in
         connection with the settlement or compromise of litigation against
         Lessee or such Subsidiary (excluding payment of approved deductibles,
         or insurance proceeds paid, in connection with a judgment or
         settlement of litigation which is covered by insurance, or in
         connection with an appeal bond or other security required in
         connection with the appeal of a final judgment against Lessee or such
         Subsidiary) in an aggregate amount in excess of $750,000 in any fiscal
         year; or

                  (l)      GUARANTY. Any provision of the Subsidiary Guaranty
         after delivery thereof for any reason ceases to be valid and binding
         on each Subsidiary Guarantor, or any Subsidiary Guarantor shall
         repudiate or purport to revoke the Subsidiary Guaranty; or

                  (m)      LEASE EVENT OF DEFAULT. A "Lease Event of Default"
         shall occur under the Lease;

                                      50
<PAGE>   55

                  (n)      BANK CREDIT AGREEMENT DEFAULT. An "EVENT OF DEFAULT"
         shall occur under the Bank Credit Agreement;

                  (o)      LESSOR BANKRUPTCY. Lessor is generally not paying
         its debts as they become due or admits in writing its inability to pay
         its debts generally or makes a general assignment for the benefit of
         creditors; or any proceeding is instituted by or against Lessor
         seeking an order for relief under the United States Bankruptcy Code or
         seeking liquidation, winding up, reorganization, arrangement,
         adjustment, protection, relief, or composition of it or its debts or
         the appointment of a receiver, trustee, custodian or other similar
         official for it or for any substantial part of its property under any
         law relating to bankruptcy, insolvency, liquidation or reorganization
         or relief of debtors and either any such relief in any such proceeding
         is sought or consented to by it or an order for any such relief is
         entered against it, or any such proceeding instituted against it
         remains undismissed and unstayed for a period of 60 days; or Lessor
         takes any corporate action to authorize any of the actions set forth
         above; or

                  (p)      LESSOR JUDGMENTS. Lessor shall (i) suffer a final
         judgment (which is not covered by insurance subject to approved
         deductibles) requiring payment of money (including costs and expenses)
         aggregating in excess of $500,000 which judgment is not discharged
         within a period of thirty (30) days unless, pending further
         proceedings, execution has been effectively stayed pending appeal, to
         the satisfaction of Agent, or (ii) suffer a final judgment or
         judgments (which are not covered by insurance subject to approved
         deductibles), requiring payment of money (including costs and
         expenses) in an aggregate amount in excess of $2,000,000; or

                  (q)      AGENCY AGREEMENT DEFAULT. An Agency Agreement Event
         of Default shall occur under the Agency Agreement.

         9.2.     REMEDIES. (a) If an Event of Default has occurred and is
continuing, each of Lessor and/or Agent (who, for such purpose, is hereby
granted a power of attorney which, being coupled with an interest, is
irrevocable) shall at the written direction or may, with the consent of the
Requisite Holders (i) declare, by written notice to Lessor and Lessee (A) the
entire accrued and unpaid amount of interest on and the principal amount of the
Notes (if not then due and payable) to be due and payable immediately and (B)
the obligation of each Holder to make Advances to be terminated; provided,
however, that if an order for relief under the United States Bankruptcy Code is
entered at the request or upon the consent of Lessee or involuntarily against
Lessee, (Y) then the entire accrued and unpaid amount of interest on and the
principal amount of the Notes shall automatically be and become due and payable
immediately, without request, demand, presentment, protest or notice,
notwithstanding anything contained in the Notes or any Operative Document to
the contrary and (Z) the obligation of Lessor to make Lessor Investment and
each Noteholder to make Advances shall automatically be terminated and (ii)
shall, subject to SECTION 8, exercise any of the rights or remedies granted to
it under the Lease or any of the

                                      51
<PAGE>   56

other Operative Documents, in addition to any rights or remedies of such
parties set forth in this Agreement or any other Operative Document.

         (b)      The foregoing notwithstanding, to the extent that any Event
of Default described in clauses (A), (B), (C), (D), (O) or (P) of SECTION 9.1
is not the result of a Lease Event of Default or other failure of Lessee to pay
amounts required pursuant to the Operative Documents, then the rights and
remedies of Agent and Holders with respect to such Event of Default shall be
limited to such rights and remedies as Agent and Holders may have under the
Operative Documents and Applicable Law against Lessor, and neither Agent nor
the Holders shall be entitled to exercise any right or remedy against Lessee or
Lessee's interest in any property solely by reason of such Event of Default.

         (c)      If an Event of Default has occurred and is continuing or in
the event that any party hereto (other than Lessee) has failed to observe or
perform any covenant or agreement contained in any Operative Document (and such
failure shall not have been remedied), or if any representation or warranty of
such party set forth in any Operative Document shall prove to be incorrect in
any material respect as of the time when the same shall have been made, then
each of the other parties hereto may take all steps necessary or advisable to
protect and enforce its rights hereunder, whether by action, suit or proceeding
at law or in equity, for the specific performance of any covenant, condition or
agreement contained herein, or in aid of the execution of any power herein
granted, or for the enforcement of any other appropriate legal or equitable
remedy or otherwise as such party shall deem necessary or advisable.

         (d)      No right or remedy hereunder or under any other Operative
Document shall be exclusive of any other right, power or remedy, but shall be
cumulative and in addition to any other right or remedy hereunder or now or
hereafter existing by law or in equity, and the exercise by a party hereto of
any one or more of such rights, power or remedies shall not preclude the
simultaneous or further exercise of any or all of such other rights, powers or
remedies. Any failure to insist upon the strict performance of any provision
hereof or to exercise any option, right, power or remedy contained herein shall
not constitute a waiver or relinquishment thereof for the future. Each of
Lessor, Agent and the Holders shall be entitled to injunctive relief in case of
the violation or attempted or threatened violation of any of the provisions
hereof by any other party hereto, a decree compelling performance of any of the
provisions hereof or any other remedy allowed by Applicable Law or in equity.

         (e)      To the extent that any Default or Event of Default shall have
been fully and completely cured prior to the exercise of any remedies by
Lessor, Agent or any Holders under this Agreement, the other Operative
Documents or Applicable Law, such Default or Event of Default shall cease to be
a "Default" or "Event of Default" for all purposes under the Operative
Documents, including, without limitation, for purposes of exercise of remedies
or denial or conditioning of rights of Lessee.

                                      52
<PAGE>   57

SECTION 10.       AGENT

         10.1.    AUTHORIZATION AND ACTION. Each Holder and Lessor hereby
appoints and authorizes Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement or any other Operative Document as
are delegated to Agent or Lessor or both by the terms hereof or thereof,
together with such powers as are reasonably incidental thereto. Lessee
acknowledges and consents to the rights of Agent pursuant to the immediately
preceding sentence. As to any matters not expressly provided for by this
Agreement or any other Operative Document, Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Requisite Holders, and such
instructions shall be binding upon all Holders; provided, however, that Agent
shall not be required to take any action which exposes Agent to personal
liability (unless the Lessor and the Noteholders agree to indemnify the Agent
for such costs) or which is contrary to this Agreement or any other Operative
Document or Applicable Law. Agent shall not be liable to any Holder if, in
accordance with the terms of this Agreement or any other Operative Document, it
takes or omits to take any action pursuant to the instructions of the Requisite
Holders. Agent agrees to give to each Holder prompt notice of each notice given
to it by Lessee pursuant to the terms of this Agreement or any other Operative
Document. Agent agrees to perform and discharge the duties and powers delegated
to it under this Agreement and the other Operative Documents in accordance with
the terms hereof and thereof.

         10.2.    AGENT NOT LIABLE. (a) Except as otherwise expressly provided
in the Operative Documents neither Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken
by it or any of them under or in connection with this Agreement or any other
Operative Document, except for its or their own gross negligence or willful
misconduct. Without limiting the generality of the foregoing, Agent (i) may
treat the payee of any Note as the Holder thereof until Agent receives written
notice of the assignment or transfer thereof signed by such payee and including
the agreement of the assignee or transferee to be bound hereby as it would have
been if it had been an original Holder party hereto, in form satisfactory to
Agent; (ii) may consult with legal counsel (including counsel for Lessee),
independent public accountants and other experts selected by it and shall not
be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (iii) makes
no warranty or representation to any Holder and shall not be responsible to any
Holder for any statements, warranties or representations (whether written or
oral) made in or in connection with this Agreement or any other Operative
Document; (iv) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement or any other Operative Document on the part of Lessee or to inspect
the property (including the books and records) of Lessee; (v) shall not be
responsible to any Holder for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other Operative Document or any

                                      53
<PAGE>   58

other instrument or document furnished pursuant to any Operative Document or
for the creation, validity, enforceability, sufficiency, value, perfection or
priority of any Lien purported to be granted to Agent, whether pursuant to any
Mortgage or otherwise; and (vi) shall incur no liability under or in respect of
this Agreement by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telecopier) believed by it in good faith
to be genuine and signed or sent by the proper party or parties.

         (b)      In exercising rights and performing obligations on behalf of
Lessor pursuant to the authority granted in this SECTION 10, elsewhere in this
Agreement or the other Operative Documents, Agent shall be directly liable to
the other parties to the Operative Documents to the same extent that Lessor
would have been liable had it exercised such rights or performed such
obligations directly and Agent shall also be protected and exculpated to the
same extent as Lessor would be protected and exculpated in exercising such
rights and performing such rights directly. Anything to the contrary provided
in this Agreement or the other Operative Documents notwithstanding, in no event
shall Lessor be liable as a result of any action or omission of Agent taken
pursuant to the authority of Agent to act on behalf of Lessor granted in this
SECTION 10 or elsewhere in this Agreement or the other Operative Documents.

         10.3.    RIGHTS AS HOLDER. With respect to its commitment and the
Notes held by it or any of its Affiliates and all other rights, claims and
interests accorded it or such Affiliate as Holder, such Holder shall have the
same rights and powers under this Agreement as any other Holder and may
exercise the same as though it were not Agent; and the term "Holder" or
"Holders" shall include Agent and any Affiliate of Agent in its individual
capacity. Agent and its Affiliates may accept deposits from, lend money to, act
as trustee under indentures of, and generally engage in any kind of business
with, Lessee, any of its Subsidiaries and any Person who may do business with
or own securities of Lessee or any such Subsidiary, all as if Agent were not
Agent and without any duty to account therefor to the Holders. Any Holder and
its respective Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, and generally engage in any kind of business with,
Lessee, any of its Subsidiaries and any Person who may do business with or own
securities of Lessee or any such Subsidiary, all as if such Holder were not a
Holder hereunder and without any duty to account therefor to the other Holders.

         10.4.    HOLDER CREDIT DECISION. Each Holder acknowledges that it has,
independently and without reliance upon Agent or any other Holder and based on
the financial statements referred to in SECTION 5.1(E)(I) delivered through the
Closing Date and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Holder also acknowledges that it will, independently and
without reliance upon Agent or any other Holder and based on such documents and
information as it deems appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement.

                                      54
<PAGE>   59

         10.5.    INDEMNIFICATION. The Holders and Lessor agree to indemnify
Agent (to the extent not reimbursed by Lessee) ratably according to their
respective Series Percentages from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against Agent in any way relating to or arising
out of this Agreement or the other Operative Documents or any action taken or
omitted by Agent under this Agreement or the other Operative Documents;
provided that no Holder shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from Agent's gross negligence or willful
misconduct. Without limiting the foregoing, each Holder agrees to reimburse
Agent promptly upon demand for its ratable share of any reasonable
out-of-pocket expenses (including reasonable fees and expenses of counsel)
incurred by Agent in connection with the preparation, execution, delivery,
modification, amendment, protection or enforcement (whether through
negotiations, by legal proceedings, in bankruptcy or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement or the
other Operative Documents, to the extent that Agent is not reimbursed for such
expenses by Lessor.

         10.6.    SUCCESSOR AGENT. Agent may resign at any time by giving
written notice thereof to the Holders and Lessee and may be removed at any time
with or without cause by the Requisite Holders. Upon any such resignation or
removal, the Requisite Holders shall, subject to the written consent of Lessee,
which consent shall not be unreasonably withheld or delayed, have the right to
appoint a successor Agent. If no successor Agent shall have been so appointed
by the Requisite Holders, and shall have accepted such appointment, within 30
days after the retiring Agent's giving of notice of resignation or the
Requisite Holders' removal of the retiring Agent, then the retiring Agent may,
on behalf of the Holders, appoint a successor Agent, which shall be a
commercial bank organized under the laws of the United States of America or of
any State and having total assets of at least $20,000,000,000. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations under this Agreement.
After any retiring Agent's resignation or removal hereunder as Agent, the
provisions of this SECTION 10 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

SECTION 11.       MISCELLANEOUS

         11.1.    AMENDMENTS AND WAIVERS. No amendment or waiver of any
provision of this Agreement or any other Operative Document, nor consent to any
departure by Lessee therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Requisite Holders (unless Agent is
expressly authorized hereunder or under any Operative Document to act without
joinder of the Requisite Holders, in which case Agent may take such action),
and,

                                      55
<PAGE>   60

with respect to amendments only, Lessee and Lessor, and then, with respect to
waivers and consents, such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided that
no amendment, waiver or consent shall, unless in writing and signed by all of
the Holders, do any of the following: (a) increase the amount of Advances
required to be made by any Holder or subject the Holders to any additional
obligations, (b) reduce the Prime Rate, Applicable Floating Rate Margin, LIBOR
Rate, Applicable LIBOR Margin, or Facility Fees, or any fees or other amounts
payable hereunder or under any other Operative Document, (c) take action which
requires the signing of all the Holders pursuant to the terms of this Agreement
or under any other Operative Document, (d) affect the allocation of funds
pursuant to the Intercreditor Agreement, (e) postpone any date fixed for any
payment of principal or stated amount of, or interest on the Notes or any fees
or other amounts payable under any Operative Document, (f) postpone or reduce
the payment obligations of the Subsidiary Guarantors under the Guaranty, (g)
release any of the Liens created pursuant to the Operative Documents or permit
the disposition of any Property, other than as expressly provided in the
Operative Documents, (h) release, waive, or modify in a manner adverse to any
Holder, the obligations of the Subsidiary Guarantors under the Guaranty, (i)
modify the priority of any Lien or except as expressly permitted by the
Operative Documents, allow any Person to have an interest in the collateral
created pursuant to the Operative Documents; (j) amend this SECTION 11.1 or (k)
amend the definition of Requisite Holders; provided further that (1) no
amendment, waiver or consent shall, unless in writing and signed by Agent in
addition to the Holders required above to take such action, affect the rights
or duties of Agent under this Agreement or any of the Operative Documents; and
(2) no amendment, waiver or consent shall, unless in writing and signed by
Lessor in addition to the Holders required above to take such action, affect
the rights or duties of Lessor under this Agreement or any of the Operative
Documents.

         11.2.    SURVIVAL. All warranties, representations, indemnities and
covenants made by any party hereto, herein or in any certificate or other
instrument delivered by any such party or on the behalf of any such party under
this Agreement shall be considered to have been relied upon by each other party
hereto and shall survive the consummation of the transactions contemplated
hereby on the Closing Date and each Restaurant Closing Date, regardless of any
investigation made by any such party or on behalf of any such party.

         11.3.    NOTICES. Unless otherwise specifically provided in any
Operative Document, all notices, consents, directions, approvals, instructions,
requests and other communications given to any party hereto under any Operative
Document shall be in writing to such party at the address set forth in
SCHEDULE 1 or at such other address as such party shall designate by notice to
each of the other parties hereto and may be personally delivered (including
delivery by private courier services) or by telecopy (with a copy of such
notice sent by private courier service for overnight delivery or by registered
or certified mail), to the party entitled thereto, and shall be deemed to be
duly given or made when delivered by hand unless such day is not a Business
Day, in which

                                      56
<PAGE>   61

case such delivery shall be deemed to be made as of the next succeeding
Business Day or in the case of telecopy (with a copy of such notice sent by
private courier service for overnight delivery or by registered or certified
mail), when sent, so long as it was received during normal business hours of
the receiving party on a Business Day and otherwise such delivery shall be
deemed to be made as of the next succeeding Business Day.

         11.4.    SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and shall inure to the benefit of, and shall be enforceable by, the parties
hereto and their respective successors and assigns as permitted by and in
accordance with the terms hereof, including, without limitation, each
successive holder of any Note. Except as expressly provided herein or in the
other Operative Documents, no party hereto may assign their interests herein
without the written consent of the parties hereto.

         11.5.    BUSINESS DAY. Notwithstanding anything hereto or in any other
Operative Document to the contrary, if the date on which any payment is to be
made or the last date for performance of any act or the exercising of any right
pursuant to this Agreement or any other Operative Document is not a Business
Day, then such payment may be made or act performed or right exercised on the
next succeeding Business Day with the same force and effect as if made on the
nominal date provided in the applicable Operative Document, except that
interest and Distributions shall accrue and be payable for the period after
such nominal date.

         11.6.    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TENNESSEE.

         11.7.    SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

         11.8.    COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each executed counterpart constituting an original but all
together only one Agreement.

         11.9.    HEADINGS AND TABLE OF CONTENTS. The headings of the sections
of this Agreement and the Table of Contents are inserted for purposes of
convenience only and shall not be construed to affect the meaning or
construction of any of the provisions hereof.

         11.10.   TAX AND ACCOUNTING MATTERS. Lessee acknowledges that none of
any Holder, Agent, Lessor or any Affiliate of any thereof is making any
representation, nor is it required to make any disclosure, now or in the
future, with respect to the parties' tax or accounting treatment

                                      57
<PAGE>   62

of any Property or the financing thereof, nor is any Holder, Agent, Lessor, or
any Affiliate of any thereof responsible, nor will it be responsible in the
future, for tax and accounting advice with respect to any Property or the
financing thereof, and Lessee has had or will have the benefit of the advice of
its own independent tax and accounting advisors with respect to such matters.

         11.11.   LIMITATIONS OF LIABILITY. None of Agent, Lessor or any Holder
shall have any obligation or duty to Lessee, or to others with respect to the
transactions contemplated hereby, except those obligations or duties of such
party expressly set forth in this Agreement and the other Operative Documents
to be undertaken in such party's individual capacity, and none of Agent, Lessor
or any Holder shall be liable for performance by any other party hereto of such
other party's obligations or duties hereunder. Without limitation of the
generality of the foregoing, but subject to the provisions of SECTION 10.2(B),
under no circumstances whatsoever shall Agent or any Holder be liable to Lessee
for any action or inaction on the part of Lessor in connection with the
transactions contemplated herein, whether or not such action or inaction is
caused by willful misconduct or gross negligence of Lessor unless such action
or inaction is at the direction of Agent or any Holder, as the case may be, and
such direction is expressly permitted hereby.

         11.12.   TRANSACTION COSTS; FEES. Anything to the contrary provided
herein notwithstanding, the initial Advance and corresponding Lessor Investment
hereunder shall include funds necessary for the payment of all reasonable and
documented fees, expenses, disbursements and out-of-pocket costs incurred by
Lessor, Agent and the Noteholders on or before the initial Advance Date in
connection with the preparation, execution and delivery of any Operative
Document, or any other agreement, arrangement, document or paper relating to
the transactions contemplated hereby or any amendment or supplement thereto or
any waivers or enforcement thereof (collectively "Transaction Costs"),
including, but not limited to:

                  (a)      the reasonable and documented fees, expenses and
         disbursements of each of Agent, Lessor, Lessor's counsel, and special
         counsel and local counsel to Agent and up to $2,500 of the reasonable
         and documented fees, expenses and disbursements of each Noteholder for
         services rendered to such parties in connection with such
         transactions;

                  (b)      all reasonable and documented fees and expenses in
         connection with any appraisal, environmental report, survey or
         inspection of any Property, or any printing and other document
         reproduction and distribution expenses, stamp or other similar Taxes,
         fees or excises, including interest and penalties, and all filing fees
         and Taxes in connection with the recording or filing of instruments
         and financing statements in connection with the transactions described
         in this Agreement;

                  (c)      the reasonable and documented out-of-pocket expenses
         of Lessor and Agent in connection with the placement of the Notes;

                                      58
<PAGE>   63

                  (d)      the reasonable and documented fees, expenses and
         disbursements of each of the Noteholders, including the reasonable and
         documented fees and disbursements of their respective counsel, in
         connection with the enforcement of any rights of the Noteholders under
         any of the Operative Documents; and

                  (e)      any and all fees payable under the separate fee
         letter between Lessee and Agent entered into on or prior to the
         Closing Date. Any Transaction Costs paid or incurred after the initial
         Advance Date shall be paid from the proceeds of subsequent Advances
         and Lessor Investment hereunder or, if no further Advances or Lessor
         Investment are available, paid by Lessor and reimbursed by Lessee to
         Lessor as Additional Rent under the Lease. If for any reason the
         transactions contemplated by this Agreement fail to close, such
         Transaction Costs shall be paid by Lessee and Lessee shall indemnify
         and hold harmless Lessor, the Agent and each Noteholder from and
         against any such Transaction Costs.

         11.13.   OPERATIVE DOCUMENTS; FURTHER ASSURANCES. Each of the parties
hereto does hereby covenant and agree to perform and be governed and restricted
by the Operative Documents to which it is a party and, subject to the terms and
conditions thereof, to take or cause to be taken, all actions and to do, or
cause to be done, all things necessary, proper or advisable in connection
therewith. Lessee, Lessor, Agent and the Holders will, at the expense of
Lessee, execute and deliver such further instruments and do such further acts
as may be necessary or proper to carry out more effectively the purposes of the
Operative Documents and the transactions contemplated thereby. Lessee, Lessor,
Agent and the Holders may at any time, subject to the conditions and
restrictions contained in the Operative Documents, enter into supplements which
shall form a part hereof, when required or permitted by any of the provisions
of the Operative Documents or to cure any ambiguity, or to cure, correct or
supplement any defective or inconsistent provision contained herein or in any
other Operative Document.

         11.14.   EXCULPATION. The Agent shall not be entitled to, and shall
not enforce, the liability and obligation of the Lessor to perform and observe
the obligations contained in this Agreement, the Notes or in any of the other
Operative Documents by any action or proceeding wherein a money judgment or
personal liability shall be sought against the Lessors, any partners,
shareholders or members (or other constituent party(ies)), principals
(disclosed or undisclosed) of the Lessor (the "EXCULPATED PARTIES"), except
that the Agent may bring an appropriate action or proceeding to enable the
Agent to enforce and realize upon the Noteholders' interests under this
Agreement, the Note, or the other Operative Documents; provided, however, that,
except as specifically provided herein, any judgment in any such action or
proceeding shall be enforceable against the Lessor only to the extent of the
collateral given or granted to the Noteholders in connection with this
Agreement, and the Agent agrees that it shall not sue for, seek or demand any
deficiency judgment against any of the Exculpated Parties in any such action or
proceeding under, or by reason of, or in connection with this Agreement, the
Note, or any of the other

                                      59
<PAGE>   64

Operative Documents. The provisions of this paragraph shall not, however,
constitute a waiver, release or impairment of any obligation evidenced or
secured by this Agreement, the Notes or any of the other Operative Document.
Notwithstanding the foregoing provisions of this SECTION 11.14, the Lessor
shall and hereby agrees to be personably liable for any loss, damage, cost,
expense, liability, claim or other obligation incurred by the Agent (including
reasonable attorneys' fees and costs reasonably incurred) arising out of or in
connection with fraud or intentional misrepresentation by the Lessor in
connection with the transactions contemplated by the Operative Documents.

         11.15.   WAIVER OF TRIAL BY JURY. IN ANY ACTION OR PROCEEDING UNDER OR
RELATED TO THIS AGREEMENT, THE OPERATIVE DOCUMENTS OR ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION WITH THE FOREGOING, LESSEE, AGENT, LESSOR AND EACH
HOLDER HEREBY AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY, IRRESPECTIVE OF WHICH PARTY COMMENCES SUCH ACTION
OR PROCEEDING.

         11.16.   BENEFIT. The parties hereto and their permitted successors
and assigns shall be bound hereby and entitled to the benefits hereof.

                                     * * *

                        [SIGNATURES BEGIN ON NEXT PAGE]

                                      60
<PAGE>   65

         IN WITNESS WHEREOF, the parties hereto have caused this Participation
Agreement to be executed and delivered, all as of the date first above written.

                                       LESSEE AND CONSTRUCTION AGENT:

                                       O'CHARLEY'S INC.

                                       By: /s/ A. Chad Fitzhugh
                                           ------------------------------------
                                           Name: A. Chad Fitzhugh
                                           Title: Treasurer

                                       LESSOR:

                                       FIRST AMERICAN BUSINESS CAPITAL, INC.

                                       By: /s/ Mary Buckner
                                           ------------------------------------
                                           Name: Mary Buckner
                                           Title: Senior Vice President

                                       AGENT:

                                       AMSOUTH BANK, as Agent

                                       By: /s/ Kenneth L. Dobbins
                                           ------------------------------------
                                           Name: Kenneth L. Dobbins
                                           Title: Senior Vice President

                                      61
<PAGE>   66

                                       [NOTEHOLDERS]

                                       BANK OF AMERICA, N.A.

                                       /s/ William H. Diehl
                                       ----------------------------------------
                                       By: William H. Diehl
                                       Title: Senior Vice President

                                       FIRSTAR BANK, N.A.

                                       /s/ Eric Hartman
                                       -----------------------------
                                       By: Eric Hartman
                                       Title: Assistant Vice President

                                       AMSOUTH BANK

                                       /s/ Kenneth L. Dobbins
                                       -----------------------------
                                       By: Kenneth L. Dobbins
                                       Title: Senior Vice President

                                       FIRST UNION NATIONAL BANK

                                       /s/ Mary J. Amatore
                                       ------------------------------
                                       By: Mary J. Amatore
                                       Title: Vice President

                                       SUNTRUST BANK

                                       /s/ Vipul Patel
                                       ------------------------------
                                       By: Vipul Patel
                                       Title: Vice President<PAGE>   1
                                                                   EXHIBIT 10.14

                                      LEASE

                                 by and between

                     FIRST AMERICAN BUSINESS CAPITAL, INC.,
                                    as Lessor

                                       and

                                O'CHARLEY'S INC.,
                                    as Lessee

                          Dated as of October 10, 2000

THIS LEASE IS SUBJECT TO A SECURITY INTEREST IN FAVOR OF AMSOUTH BANK, AS AGENT
(THE "AGENT"), UNDER A PARTICIPATION AGREEMENT, OF EVEN DATE HEREWITH, AMONG
O'CHARLEY'S INC., AS LESSEE, FIRST AMERICAN BUSINESS CAPITAL, INC., AS LESSOR,
THE AGENT AND THE NOTEHOLDERS PARTY THERETO, AS THE SAME MAY BE AMENDED OR
SUPPLEMENTED FROM TIME TO TIME. THIS LEASE HAS BEEN EXECUTED IN SEVERAL
COUNTERPARTS. TO THE EXTENT, IF ANY, THAT THIS LEASE CONSTITUTES CHATTEL PAPER
(AS SUCH TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE OF THE STATE OF
TENNESSEE), NO SECURITY INTEREST IN THIS LEASE MAY BE CREATED THROUGH THE
TRANSFER OR POSSESSION OF ANY COUNTERPART OTHER THAN THE ORIGINAL COUNTERPART
CONTAINING THE RECEIPT THEREFOR EXECUTED BY THE AGENT ON THE SIGNATURE PAGE
HEREOF.

<PAGE>   2

                                      INDEX

<TABLE>
<CAPTION>
                                                                                   PAGE
<S>                                                                                <C>
                                Table of Contents

SECTION 1. TERM.......................................................................2

1.1               Term................................................................2

SECTION 2. RENT; NET LEASE............................................................2

2.1               Rent................................................................2

2.2               Net Lease; Nonterminability.........................................3

SECTION 3. USE AND OPERATION..........................................................5

3.1               Use.................................................................5

3.2               Environmental Activity..............................................5

SECTION 4. IMPOSITIONS; UTILITIES AND MAINTENANCE CONTRACTS...........................7

4.1               Impositions.........................................................7

4.2               Utilities; Maintenance Contracts....................................8

4.3               Survival............................................................8

SECTION 5. REPRESENTATIONS AND WARRANTIES; CONDITION OF EACH PROPERTY; DISCLAIMER.....8

SECTION 6. REPAIRS; ENCROACHMENTS.....................................................9

6.1               Maintenance and Repair..............................................9

6.2               Obstruction of Access; Encroachments...............................10

SECTION 7. COMPLIANCE WITH APPLICABLE LAWS...........................................11

SECTION 8. CONTEST RIGHTS............................................................11

8.1               Lessee's Right to Contest..........................................11

8.2               Lessor's Joinder Rights............................................12
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                                                                                  <C>
SECTION 9. INSURANCE.................................................................13

9.1               Insurance Policies.................................................13

9.2               Additional Policy Requirements.....................................15

SECTION 10. DAMAGE, DESTRUCTION AND CONDEMNATION.....................................16

10.1              Definition of Casualty.............................................16

10.2              Assignment of Casualty Proceeds....................................17

10.3              Termination Notice; Lessor Termination Notice......................17

10.4              Casualty Other Than a Substantial Casualty.........................17

10.5              Continuing Obligations Under Lease.................................20

10.6              Event of Default...................................................20

SECTION 11. LESSOR MAY PERFORM LESSEE'S OBLIGATIONS..................................20

SECTION 12. DEFAULT OF LESSEE........................................................21

12.1              Lease Event of Default Defined.....................................21

12.2              Remedies...........................................................22

12.3              WAIVER OF TRIAL BY JURY............................................25

12.4              Remedies Cumulative................................................26

12.5              No Subsequent Waiver...............................................26

12.6              Mortgage...........................................................26

SECTION 13. ASSIGNMENT, SUBLETTING AND MORTGAGING....................................28

13.1              Assignment.........................................................28

13.2              Subletting.........................................................28

13.3              Consent; Effect of Assignment or Subletting........................29

SECTION 14. ACCESS TO PROPERTY.......................................................29

SECTION 15. ALTERATIONS..............................................................30

15.1              Approval...........................................................30

15.2              Conditions.........................................................30
</TABLE>

                                       ii
<PAGE>   4

<TABLE>
<S>                                                                                  <C>
SECTION 16. LIENS; ZONING............................................................32

16.1              Liens..............................................................32

16.2              Zoning.............................................................33

SECTION 17. SUBORDINATION AND ATTORNMENT.............................................33

17.1              Subordination and Attornment.......................................33

17.2              Provisions Self-Operative..........................................33

SECTION 18. QUIET ENJOYMENT..........................................................34

SECTION 19. ESTOPPEL CERTIFICATE.....................................................34

SECTION 20. BROKERAGE................................................................34

SECTION 21. NOTICES..................................................................35

SECTION 22. ENTIRE AGREEMENT; NO WAIVER..............................................35

22.1              Entire Agreement...................................................35

22.2              No Waiver..........................................................35

SECTION 23. END OF TERM..............................................................35

23.1              Surrender..........................................................35

23.2              Survival...........................................................37

SECTION 24. SIGNS....................................................................37

SECTION 25. CONVEYANCE BY LESSOR.....................................................37

SECTION 26. NO MERGER................................................................37

SECTION 27. MISCELLANEOUS............................................................37

27.1              Section Headings...................................................37

27.2              Successors and Assigns.............................................38

27.3              Amendment..........................................................38

27.4              Invalidity.........................................................38

27.5              Construction.......................................................38
</TABLE>

                                      iii
<PAGE>   5
<TABLE>
<S>                                                                                  <C>
27.6              Counterparts.......................................................38

27.7              Limitations on Amounts Payable.....................................38

SECTION 28. SUBMISSION TO JURISDICTION; GOVERNING LAW................................39

SECTION 29. PERFORMANCE REQUIRED OF LESSOR...........................................39

SECTION 30. OPERATING LEASE..........................................................39

SECTION 31. OFFER TO PURCHASE........................................................39

31.1              Delivery by Lessee.................................................39

31.2              Acceptance by Lessor...............................................40

SECTION 32. PROCEDURE UPON PURCHASE..................................................40

32.1              Acquisition Date...................................................40

32.2              Obligations Surviving Termination..................................41

SECTION 33. LESSEE'S OPTIONS UPON EXPIRATION.........................................41

33.1              Lessee's Options...................................................41

33.2              Lessor Right to Sell...............................................43

33.3              Extended Term......................................................43

33.4              Deemed Election....................................................44

SECTION 34. LIMITATION OF LESSOR LIABILITY...........................................44

34.1              Incorporation of Provisions of Participation Agreement.............44

SECTION 35. SPECIAL PROVISIONS FOR HQ PROPERTY.......................................44

35.1              HQ Expansion.......................................................44

35.2              HQ Expansion Lease.................................................44
</TABLE>

Exhibit A         Intentionally omitted
Exhibit B         Form of Lease Supplement
Schedule 1        Intentionally Omitted
Schedule 2        Termination Value
Schedule 3        List of Brokers

                                       iv
<PAGE>   6

     This LEASE, dated as of October __, 2000, by and between FIRST AMERICAN
BUSINESS CAPITAL, INC., a Tennessee corporation (together with its successors
and assigns, "LESSOR"), having an address at c/o AmSouth Bank, AmSouth Center,
Nashville, Tennessee 37237, and O'CHARLEY'S INC., a Tennessee corporation
("LESSEE"), having an address at 3038 Sidco Drive, Nashville, Tennessee 37204.

                               W I T N E S S E T H:
                               -------------------

     WHEREAS, Lessor and Lessee, among others, have entered into a Participation
Agreement, of even date herewith (the "PARTICIPATION AGREEMENT"), pursuant to
which, among other things, Lessor may acquire and develop the Restaurant
Properties from time to time and may acquire the HQ Property.

     WHEREAS, Lessor and O'Charley's Inc. (in such capacity, "CONSTRUCTION
AGENT") have entered into an Agency Agreement, of even date herewith (the
"AGENCY AGREEMENT") providing for various rights and obligations of Lessor and
Construction Agent with respect to the development and Improvement of the HQ
Expansion and the Restaurant Properties.

     WHEREAS, Lessee desires to lease the Land and the Improvements (as
hereinafter defined) from Lessor and Lessor is willing to lease the Land and the
Improvements to Lessee on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the rents to be paid by Lessee and of
the covenants and agreements hereinafter contained to be observed, performed and
complied with by Lessor and Lessee and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Lessor hereby
demises and leases to Lessee, and Lessee hereby hires and takes from Lessor, for
the term and subject to the terms, provisions and conditions hereinafter
specified, each Property that is hereafter made subject to the Lease by the
execution and delivery of a Lease Supplement with respect thereto in accordance
with the terms hereof and of the Participation Agreement (collectively, the
"PREMISES"). Each Lease Supplement shall be substantially in the form attached
hereto as EXHIBIT B. Upon the satisfaction of the other requirements set forth
in the Participation Agreement, Lessor shall execute such Lease Supplement and
deliver it to the Lessee. Upon Substantial Completion of the HQ Expansion or any
Restaurant Improvements, Lessee will deliver to Lessor a certificate
establishing that Substantial Completion has occurred with respect to such HQ
Expansion or Restaurant Improvements, as applicable. Each Lease Supplement shall
have an Effective Date of the date of execution by the Lessor of such Lease
Supplement. Execution and delivery by the Lessee of a Lease Supplement shall
constitute (i) acknowledgment by the Lessee that the Property specified in such
Lease Supplement has been delivered to the Lessee in good condition and has been
accepted for lease hereunder by the Lessee as of the Effective Date of such
Lease Supplement, (ii) acknowledgment by the Lessee that the Property specified
in such Lease Supplement is subject to all of the covenants, terms and
conditions of this Lease, and (iii) certification by the Lessee that the
representations and warranties contained in SECTION 5 of this Lease are true and
correct in all material respects on and as of the Effective Date of such Lease
Supplement as though made on and as of such date and that there exists on such
date no Event of Default. Execution and delivery by the Lessor of a Lease
Supplement shall constitute acknowledgment by

<PAGE>   7

the Lessor that the Property specified in such Lease Supplement is subject to
all of the covenants, terms and conditions of this Lease. All capitalized terms
used herein but not defined herein shall have the meanings ascribed to them in
the Participation Agreement and APPENDIX A attached thereto.

SECTION 1. TERM

     1.1 TERM.

     Each Property is leased for a period (the "PRIMARY TERM") which shall
commence on the applicable Effective Date (as applicable, the "COMMENCEMENT
DATE") and shall end on the date immediately preceding the fifth (5th)
anniversary of the date hereof (the "EXPIRATION DATE") or such earlier date as
this Lease shall be terminated pursuant to any provision hereof; provided,
however, that this Lease may be extended for the First Extended Term and the
Second Extended Term pursuant to SECTION 33.3 hereof (the Primary Term, the
First Extended Term, if any, and the Second Extended Term, if any, collectively,
the "TERM").

     Upon Substantial Completion of any Property, Lessee will deliver to Lessor
a certificate establishing that Substantial Completion has occurred with respect
to such Property.

SECTION 2. RENT; NET LEASE

     2.1 RENT.

     (a) During the Term of this Lease, Lessee shall pay basic rent ("BASIC
RENT") in uneven installments payable in arrears on each Payment Date during
such Term, in each case, in an amount equal to (i) the aggregate amount of
interest payable (as described in SECTION 6.3 of the Participation Agreement) on
each Advance for which payment is due on such Payment Date plus the Investment
Yield payable (as described in section 6.3 of the Participation Agreement) on
the Lessor Investment accrued and unpaid to such Payment Date less (ii) the
Basic Rent payable on such date under the Freezer Lease; provided, however, that
Basic Rent shall not include interest payable on Advances or Investment Yield
payable on Lessor Investment made with respect to any Restaurant Property or the
HQ Expansion during the Construction Period for the applicable property. All
Basic Rent shall be paid by Lessee directly to Agent on behalf of Lessor, not
later than 12:00 noon. (Nashville, TN time) on each Payment Date in Dollars
received by Agent, at such address as Agent shall designate in a notice to
Lessee. If any Payment Date falls on a day that is not a Business Day, Basic
Rent shall be due and payable on the next succeeding Business Day and such
extension of time shall be included in the computation of interest or fees. If,
however, such extension would cause payment of interest or principal of
Eurodollar Rate Obligations to be made in the next following calendar month,
such payment shall be made on the next preceding Business Day.

     (b) All amounts that Lessee is required to pay or discharge pursuant to
this Lease in addition to Basic Rent (including, without limitation, amounts
payable as the Termination Value, any amounts payable pursuant to SECTION 11
hereof or as liquidated damages pursuant to SECTION 12.2(A)(IV) hereof, and any
Breakage Costs), together with Facility Fees, every fine, penalty, overdue
interest and cost which may be added for nonpayment or late payment thereof, and
all other amounts, liabilities and obligations of whatsoever nature relating

                                       2
<PAGE>   8

to any Property, including, without limitation, those arising under any
easements, restrictions, or other similar agreements affecting any Property or
any adjoining property thereto, and all interest and penalties that may accrue
thereon in the event of Lessee's failure to pay such amounts when due, and all
actual damages, reasonable and documented costs and expenses (including but not
limited to reasonable and documented attorneys' fees and disbursements) which
Lessor may incur by reason of any default of Lessee or failure on Lessee's part
to comply with the terms of this Lease shall constitute additional rent
hereunder (all of the foregoing, "ADDITIONAL RENT"). Lessee covenants (A) to pay
the Basic Rent and the Additional Rent and (B) to observe, perform and comply
with, and to suffer and permit no material violation of, the terms, covenants
and conditions of this Lease. Lessee further covenants to pay to the Lessor as
Additional Rent when due all amounts payable by Lessor under SECTION 6.4 of the
Participation Agreement. In the event of any failure by Lessee to pay or
discharge any such Additional Rent, Lessor, except as may be otherwise provided
herein, shall have all rights, powers and remedies provided for herein or by
Applicable Law or otherwise in the case of nonpayment of Basic Rent. Lessee may
pay Additional Rent in respect of amounts due to third parties directly to the
Persons entitled thereto and such payment, if it fully discharges the claim of
such third party, shall fully discharge Lessee's obligations with respect to
such particular item of Additional Rent. Lessee also covenants to pay to Agent
(for the benefit of Lessor) on demand as Additional Rent, interest at the
Default Rate on (i) all overdue installments of Basic Rent from the due date
thereof until paid in full, (ii) all overdue amounts of Additional Rent, arising
out of obligations which Lessor shall have paid on behalf of Lessee pursuant to
SECTION 11 hereof from the date of such payment by Lessor until paid in full and
(iii) each other sum required to be paid by Lessee hereunder which is overdue.

     (c) Without otherwise limiting the obligations of Lessee under this Lease
with respect to the payment of Additional Rent, Lessee shall pay as Additional
Rent, as and when due under the Operative Documents, (i) all amounts payable by
the Lessor under the Operative Documents in connection with the issuance of the
Notes, the acquisition of the HQ Property, if applicable, and the financing and
acquisition of the Restaurant Properties and the transactions contemplated by
the Operative Documents (to the extent such amounts are not financed with
Advances or the Lessor Investment), including, without limitation, the fees,
costs and expenses payable pursuant to SECTION 11.12 of the Participation
Agreement and (ii) all amounts that Lessor is required to pay pursuant to any
Ground Lease.

     2.2 NET LEASE; NONTERMINABILITY.

     (a) This Lease is a "net lease" and Lessee shall pay (i) all Basic Rent and
(ii) any Additional Rent payable to the Lessor without notice, demand,
counterclaim, set-off, deduction, or defense, and without abatement, suspension,
deferment, diminution or reduction, free from any charges, assessments,
impositions, expenses or deductions of any and every kind or nature whatsoever,
including, without limitation, (1) any right Lessee may have against Lessor, any
contractor or any other Person for any reason (whether in connection with this
transaction or any other transaction), (2) any breach, default or
misrepresentation by Lessor or any other Person under this Lease or any other
Operative Document or (3) any invalidity or unenforceability in whole or in part
of this Lease, or any other Operative Document, or any other infirmity herein or
therein, or any lack of power of authority of any party to this Lease or any
other Operative Document. All costs, expenses and obligations of every kind and
nature

                                       3
<PAGE>   9

whatsoever relating to any Property and the appurtenances thereto and the
use and occupancy thereof by Lessee or anyone claiming by, through or under
Lessee as Lessee hereunder which may arise or become due during or with respect
to the period constituting the Term hereof shall be paid by Lessee, and Lessee
shall indemnify Lessor against any of the foregoing as provided in the
Participation Agreement; provided, however, that Lessee shall be entitled to
dispute or raise defenses or counterclaims with respect to its obligation to pay
any Additional Rent directly due to any party other than the Agent, the Lessor
or any present or future Holder so long as such dispute is conducted in
accordance with SECTION 8 of this Lease and Lessee shall not be deemed to be in
Default under this Lease during the pendency of such protest or contest. Lessee
assumes, during the Term of this Lease, the sole responsibility for the
condition (physical or environmental), use, operation, maintenance, subletting
and management of any Property, and Lessee shall indemnify Lessor with respect
to the foregoing as provided in the Participation Agreement, and Lessor shall
have no responsibility in respect thereof and shall have no liability for damage
to the property of Lessee or any sublessee of Lessee on any account or for any
reason whatsoever, except as specifically provided in the Participation
Agreement. Without limiting the generality of the foregoing, during the Term of
this Lease, Lessee shall perform all of the obligations of the sublessor under
any subleases permitted pursuant to SECTION 13.2 hereof affecting all or any
part of any Property which Lessee may hereafter enter into as sublessor to the
extent that Lessee's failure to perform such obligations would result in the
occurrence of a Default or Event of Default under this Lease.

     (b) Except as otherwise expressly provided in SECTIONS 10.3 and 12.1
hereof, this Lease shall not terminate as to any Property, nor shall Lessee have
any right to terminate this Lease as to any Property, nor shall Lessee be
entitled to any abatement or reduction of rent hereunder, nor shall Lessee have
the right to be released or discharged from any obligations or liabilities
hereunder for any reason, including, without limitation, any damage to or
destruction of all or part of any Property; any restriction, deprivation
(including eviction) or prevention of, or any interference with, any use or the
occupancy of any Property (whether due to any defect in or failure of Lessor's
title to such Property, any Lessor Lien or otherwise); any condemnation,
requisition or other taking or sale of the use, occupancy or title to any
Property; any environmental condition affecting any Property, any defect or
deficiency in the Improvements, any action, omission or breach on the part of
Lessor under this Lease or under any other agreement between Lessor and Lessee;
the inadequacy or failure of the description of the Property to demise and let
to Lessee the property intended to be leased hereby; the impossibility or
illegality of performance by Lessor or Lessee or both; any action of any court,
administrative agency or other governmental authority; any environmental
condition affecting any Property; or any other cause, whether similar or
dissimilar to the foregoing, any present or future law notwithstanding.

     (c) Lessee will remain obligated under this Lease in accordance with its
terms, and will not take any action to terminate, rescind or avoid this Lease
for any reason, notwithstanding any bankruptcy, insolvency, reorganization,
liquidation, dissolution or other proceeding affecting Lessor, or any assignee
of Lessor, or any action with respect to this Lease which may be taken by any
receiver, trustee or liquidator, or any assignee of Lessor or by any court in
any such proceeding. Lessee waives all rights at any time conferred by statute
or otherwise to quit, terminate or surrender this Lease or any Property (except
as otherwise expressly provided with respect to condemnation or casualty in
SECTION 10 or the exercise of

                                       4
<PAGE>   10

Lessee's option to purchase any Property pursuant to SECTION 31), or to any
abatement or deferment of any Basic Rent, Additional Rent or other sum payable
by Lessee hereunder, or for damage, loss or expense suffered by Lessee on
account of any cause referred to in this SECTION 2 or otherwise. Nothing
provided in this Section, however, shall be deemed to be a waiver by Lessee of
its rights to receive or apply Casualty Proceeds in accordance with the terms of
this Lease.

     (d) Anything to the contrary provided herein notwithstanding, upon the
occurrence of a Walk Away Event with respect to any Property, this Lease may be
terminated in accordance with the provisions of Section 7.2 of the Participation
Agreement with respect to the affected Property.

SECTION 3. USE AND OPERATION

     3.1 USE.

     Subject to the provisions of this SECTION 3, each Property shall be used
and occupied by Lessee and any sublessees of Lessee permitted under this Lease
only for purposes permitted by Applicable Laws, any certificate(s) of occupancy
affecting such Property and the terms of any Permitted Encumbrances. Lessee
shall not use, occupy, maintain or operate any Property, nor suffer or permit
any Property or any part thereof to be used, occupied, maintained or operated,
nor bring into or keep at any Property, nor suffer or permit anything to be
brought into or kept therein, which would in any way (i) violate any material
term, covenant or condition of the Operative Documents, (ii) violate any
restrictive covenant, operating covenant, encumbrance or easement now or
hereafter affecting such Property, (iii) materially adversely affect the value
of such Property as a multi-purpose headquarters facility (including offices,
food processing area, freezer, commissary and parking area) or restaurant, as
the case may be, (iv) make void or voidable any insurance policy then in force
with respect to such Property or make any such insurance unobtainable, (v) cause
material physical damage to such Property or any part thereof, or (vi)
constitute a public or private nuisance. Without limiting the generality of the
foregoing, Lessee shall obtain and maintain in full force and effect throughout
the Term any and all certificates of occupancy, permits and licenses required by
Applicable Laws as and when so required.

     3.2 ENVIRONMENTAL ACTIVITY.

     (a) For purposes of this Lease, the term "ENVIRONMENTAL ACTIVITY" means any
storage, existence, release, threatened release, seepage, generation, abatement,
removal, disposal, handling or transportation from, under, into or on each
Property of any matter that contains substances defined in or regulated under
any Applicable Law relating to the environment, health, safety or Hazardous
Materials, including, without limitation, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, 42 U.S.C. ss.ss. 9601 et
seq.; the Resource Conservation and Recovery Act, 42 U.S.C. ss.ss. 6901 et seq.;
the Hazardous Materials Transportation Act, 49 U.S.C. ss.ss. 1801 et seq.; the
Clean Water Act, 33 U.S.C. ss.ss. 1251 et seq.; the Toxic Substances Control
Act, 15 U.S.C. ss.ss. 2601 et seq.; the Clean Air Act, 42 U.S.C. ss.ss. 7401 et
seq.; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. ss.ss.
136 et seq.; and the Occupational Safety and Health Act, 29 U.S.C. ss.ss. 651 et
seq.; and

                                       5
<PAGE>   11

the term "COMPARABLE BUILDINGS" means nongovernmental, noninstitutionally owned
buildings or family restaurants, as the case may be, similar in age, use, nature
and character and having comparable facilities to the Improvements, located in
the same area as the applicable Property.

     (b) Lessee shall, and shall require all employees, contractors,
subcontractors, representatives, affiliates, consultants, occupants and any and
all other Persons to, (i) comply in all material respects with all Applicable
Laws relating to any Environmental Activity at any Property, and (ii) conduct
any Environmental Activity in, on or, directly or indirectly, related to or in
connection with any Property or any part thereof in a manner consistent with
prudent industry practice and in a manner which does not pose a significant risk
to human health or the environment. Lessee's obligations hereunder with respect
to Hazardous Materials and Environmental Activities are intended to bind Lessee
with respect to matters and conditions in, on, under, beneath, with respect to,
affecting, related to, in connection with or involving any Property or any part
thereof, and unless covered by the preceding clause, Lessee's obligations
hereunder shall not be construed to extend to matters and conditions with
respect to any other properties or assets of Lessee.

     (c) Lessee shall promptly forward to Lessor and Agent copies of any
material notices, orders, complaints, summons, or any other notifications
received by Lessee relating to alleged violations of any Applicable Law and
potentially adversely affecting any Property, or any part thereof, or potential
adverse actions in any way involving environmental, health, or safety matters
affecting the Property or any part thereof; provided that any of the foregoing
matters need only be forwarded to Lessor if they could reasonably be expected to
result in obligations or liabilities in excess of the lesser of $25,000 or 10%
of the Termination Value for the applicable property.

     (d) If, at any time, (i) the condition, operation or use of any Property or
any part thereof could reasonably be expected to result in cleanup obligations
or corrective action, or in liability under any Applicable Law, in excess of the
lesser of $25,000 or 10% of the Termination Value for the applicable Property;
(ii) there are Hazardous Materials located at, in, on, under or from any
Property for which cleanup or corrective action could reasonably be expected to
cost in excess of the lesser of $25,000 or 10% of the Termination Value for the
applicable property is required under any Environmental Law; or (iii) because of
any spill or release of Hazardous Material with respect to any Property, cleanup
of or corrective action could reasonably be expected to cost in excess of the
lesser of $25,000 or 10% of the Termination Value for the applicable Property
with respect to such Hazardous Material is authorized under CERCLA or any
similar state or local law or may be necessary to prevent or eliminate a
significant risk to human health or the environment, then Lessee shall, as soon
as practicable but in no event later than ten days after discovering such
condition, operation or use, notify Lessor and Agent. Irrespective of whether
Lessee is required to give notice pursuant to the preceding sentence, Lessee
shall immediately initiate, at its sole cost and expense, such actions as are
reasonably necessary to comply in all material respects with all Applicable Laws
affecting any Property and to alleviate any significant risk to human health or
the environment relating to any Property. Once Lessee commences such actions,
Lessee will thereafter diligently and expeditiously proceed to comply in all
material respects and in a timely manner with all Applicable Laws affecting any
Property and to eliminate any significant risk to human health or the
environment relating to any Property.

                                       6
<PAGE>   12

SECTION 4. IMPOSITIONS; UTILITIES AND MAINTENANCE CONTRACTS

     4.1 IMPOSITIONS.

     (a) Lessee shall pay all taxes (including, but not limited to, any gross
receipts, sales, real estate taxes, use and occupancy taxes, general intangibles
taxes and personal property taxes (tangible and intangible), stamp taxes and all
voluntary payments that may be paid or payable by Lessee in lieu thereof),
assessments (special or otherwise), transit taxes, county taxes, excises,
levies, imposts, duties, vault and other license, rent and permit fees and other
municipal and governmental impositions, charges and withholdings, general and
special, ordinary and extraordinary, unforeseen and of any kind and nature
whatsoever, together with any penalty, fine, addition to tax and interest
thereon (herein sometimes collectively referred to as "IMPOSITIONS" and any of
the same as an "IMPOSITION"), which at any time during the Term may be assessed,
levied, confirmed, charged, laid, imposed upon, or become due and payable out of
or in respect of, or become a Lien on (i) any Property or any part thereof, (ii)
any appurtenance to any Property, (iii) the construction, financing, ownership,
operation, use, condition, maintenance, repair, leasing, or subleasing of the
Improvements or any portion thereof, (iv) any personal property located at any
Property, (v) any rent or other income received by Lessee from subtenants,
licensees or other users or occupants of any Property or any part thereof, (vi)
any occupancy, use or possession of any Property or any part thereof, or any
streets, sidewalks, alleys or vaults, or any part thereof, adjoining any
Property, or any activity conducted thereon or sales or rentals therefrom, (vii)
the payment of the principal of or interest or premium on, or other amounts with
respect to, the Notes, or (viii) otherwise with respect to the Operative
Documents or the transactions contemplated thereby. Such payments shall be made
by Lessee directly to the applicable authority and before any fine, penalty,
interest, cost or imposition shall become due or be imposed by operation of law.
Lessee shall furnish to Lessor and Agent, promptly but in any case within ten
(10) Business Days after written request by either Lessor or Agent, proof of the
payment of any Imposition which is payable by Lessee and, upon written demand of
either Lessor or Agent, proof of the filing of all returns and other materials
required in connection therewith.

     (b) If, under Applicable Laws, any Imposition payable by Lessee hereunder
may be paid in installments, Lessee may pay the same in installments and in such
event shall pay each such installment as may become due before the date when
such installment would become delinquent or any fine, penalty, further interest
or cost may be added thereto. To the extent that the same may be permitted by
Applicable Laws, Lessee shall have the right to apply for the conversion of any
Imposition to make the same payable in annual installments over a period of
years, and upon such conversion, Lessee shall be obligated to pay and discharge
said periodic installments as required by this SECTION; provided, however, that
in the event Lessee elects to surrender the Premises upon the expiration of the
Term in accordance with SECTION 33.1(A) hereof, an amount equal to all unpaid
installments shall be immediately due and payable by the Lessee on the
Expiration Date.

     (c) Nothing in this Lease shall require Lessee to pay any local, state,
federal or foreign income taxes assessed against Lessor, any Noteholder, local,
state or federal capital levy, gross receipts (other than in the nature of a
rent, sales or occupancy tax), estate, succession or inheritance taxes imposed
on Lessor, any Noteholder or corporation franchise taxes,

                                       7
<PAGE>   13

unincorporated business taxes or excise taxes (to the extent arising from the
nature of the business of the applicable Person or such Person's corporate
privileges) imposed on Lessor or any Noteholder; provided, however, that if any
time during the Term the methods of taxation prevailing on the date hereof shall
be altered so as to cause the whole or any part of the taxes, assessments,
levies, or charges now or hereafter levied, assessed, or imposed on real estate
and the improvements thereon to be levied, assessed and imposed wholly or
partially as a capital levy or otherwise on the rents received therefrom, or if
any tax, corporation franchise tax levy or unincorporated business tax levy
(including, but not limited to, any state or federal levy) or charge or any part
thereof shall be specifically measured by or based in whole or in part upon the
Premises (or any portion thereof) and any improvements thereon (including, but
not limited to, the acquisition, leasing, use or value thereof) and shall be
imposed upon Lessor in substitution for and/or in addition to any such taxes,
assessments, levies or charges levied, assessed or imposed upon real estate,
then all such taxes, assessments, levies, or charges, or the part thereof so
measured or based shall be deemed to be and shall be included within the term
"Impositions", and Lessee shall pay and discharge same as herein provided in
respect of the payment of Impositions.

     (d) The certificate, advice or bill of the appropriate official designated
by law of payment or non-payment of an Imposition shall be prima facie evidence
that such Imposition is paid or due and unpaid, as the case may be, at the time
of the making or issuance of such certificate, advice or bill.

     4.2 UTILITIES; MAINTENANCE CONTRACTS.

     Lessee shall pay, or cause to be paid, all charges for gas, electricity,
light, heat, water, sewerage, and power, for protective and security services,
for telephone and other communication services, and for all other public or
private utility services, which shall be used, rendered or supplied upon or in
connection with the Property, or any part thereof, at any time during the Term,
and Lessee will do all things required for the maintenance and continuance of
all such services as are necessary for the proper maintenance and operation of
each Property.

     4.3 SURVIVAL.

     The obligations of Lessee pursuant to this SECTION 4 accruing during the
Term shall survive the expiration or termination of this Lease.

SECTION 5. REPRESENTATIONS AND WARRANTIES; CONDITION OF EACH PROPERTY;
           DISCLAIMER

     Notwithstanding anything in this Lease to the contrary, Lessee acknowledges
that Lessee is fully familiar with and has examined each Property, the physical
condition thereof and the leases and occupancies, if any, affecting each
Property. Lessee accepts each Property in its existing condition and state of
repair, and is leasing the same in "as is" condition. Lessee agrees that no
representations, statements, or warranties, express or implied, have been made
by or on behalf of Lessor, any broker, advisor or any other person in respect of
any Property, the rights of any parties in possession, the status of title
thereof, the physical condition thereof, the zoning or other laws, regulations,
rules, orders and other Applicable Laws, Impositions, or the use that may

                                       8
<PAGE>   14

be made of any Property (or any portion thereof), that Lessee has relied on no
such representations, statements or warranties, and that Lessor shall in no
event whatsoever be liable for any latent or patent defects in any Property.
Lessee assumes all risks resulting from, and shall promptly correct, any defects
(patent or latent) in any Property or from any failure of the same to comply
with any Applicable Law or the uses or purposes for which the same may be
occupied. LESSEE IS IN FULL POSSESSION OF EACH PROPERTY. LESSOR HAS NOT MADE AN
INSPECTION OF ANY PROPERTY (OR ANY PORTION THEREOF) OR OF ANY FIXTURE OR OTHER
ITEM CONSTITUTING A PORTION THEREOF, AND LESSOR MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED OR OTHERWISE, WITH RESPECT TO THE SAME OR THE
LOCATION, USE, DESCRIPTION, DESIGN, MERCHANTABILITY, FITNESS FOR USE FOR ANY
PARTICULAR PURPOSE, CONDITION, OR DURABILITY THEREOF, OR AS TO THE QUALITY OF
THE MATERIAL OR WORKMANSHIP THEREIN, OR AS TO LESSOR'S TITLE THERETO OR
OWNERSHIP THEREOF OR OTHERWISE, IT BEING AGREED THAT ALL RISKS INCIDENT THERETO
ARE TO BE BORNE BY LESSEE. IN THE EVENT OF ANY DEFECT OR DEFICIENCY OF ANY
NATURE IN ANY PROPERTY OR ANY FIXTURE OR OTHER ITEM CONSTITUTING A PORTION
THEREOF, WHETHER PATENT OR LATENT, LESSOR SHALL NOT HAVE ANY RESPONSIBILITY OR
LIABILITY WITH RESPECT THERETO, NOR SHALL LESSOR BE REQUIRED TO FURNISH ANY
FACILITIES OR SERVICES OR MAKE ANY REPAIRS OR STRUCTURAL CHANGES OR ALTERATIONS
IN OR TO ANY PROPERTY. THE PROVISIONS OF THIS SECTION 5 HAVE BEEN NEGOTIATED AND
ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY
LESSOR, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY OR ANY FIXTURE OR OTHER
ITEM CONSTITUTING A PORTION THEREOF, WHETHER ARISING PURSUANT TO THE UNIFORM
COMMERCIAL CODE OR ANOTHER LAW NOW OR HEREAFTER IN EFFECT OR OTHERWISE.

SECTION 6. REPAIRS; ENCROACHMENTS

     6.1 MAINTENANCE AND REPAIR.

     Throughout the Term, Lessee shall at its sole risk, cost and expense take
good care of the Premises and of any buildings, structures, facilities,
improvements, landscaping, grounds and appurtenances constituting a part
thereof, and keep the same and all parts thereof, including, without limitation,
the roof, foundations and appurtenances thereto and any parking facilities,
access roads or landscaping located on the Land, together with any and all
Alterations, in good and safe order and condition, in accordance with the
practices of prudent owners of similar properties in the area in which each
Property is located and at least equal to the maintenance standards of Lessee or
its Affiliates with respect to similar properties owned or operated by Lessee or
its Affiliates, suffering no waste or injury, and shall, at Lessee's sole risk,
cost and expense, make all changes and repairs, restorations and replacements
(collectively, "REPAIRS"), interior and exterior, structural and non-structural,
ordinary and extraordinary, foreseen and unforeseen, in and to each Property or
any part thereof, or any buildings, structures, facilities, improvements and
appurtenances and whether or not arising from any defect in the construction of
the Improvements (including, but not limited to, the roof, foundations and

                                       9
<PAGE>   15

appurtenances thereto and any parking facilities, access roads and landscaping
located on the Land) and equipment and personal property in and upon each
Property or any part thereof, including, without limitation, vaults, sidewalks,
curbs, water, sewer and gas connections, meters, pipes and mains, and all other
fixtures and equipment now or hereafter belonging to each Property or any part
thereof, which Repairs may be required to maintain each Property in good
mechanical condition and repair, ordinary wear and tear excepted, in accordance
with prudent industry practice, or which may be required pursuant to any
Applicable Law or insurance requirement under SECTION 9 hereof. Lessee shall, in
accordance with the standards set forth in this SECTION 6, repair or replace
each item constituting the Improvements that shall have become worn out in whole
or in part; provided, however, that the fair market value of the Property shall
not be lessened thereby and that such replacements shall be of a type currently
used in the industry for the same purpose. All materials and equipment used or
installed in connection with such repairs, restorations and replacements shall
be at least equivalent in standard, quality and usefulness to the standard,
quality and usefulness of the original materials and equipment.

     6.2 OBSTRUCTION OF ACCESS; ENCROACHMENTS.

     Lessee shall not obstruct or grant its permission to any third party to
obstruct the streets, sidewalks, curb cuts or alleys adjoining or providing
access to any Property, shall keep the sidewalks and curbs adjoining each
Property and the curb cuts, access roads and parking facilities on the Land
clean and free of snow and ice, obstructions and rubbish and shall provide
adequate cleaning, lighting and security with respect to any parking facilities
on the Land. In the event that all or any part of the Improvements shall
encroach upon any property or right-of-way adjoining or adjacent to the Land or
any part thereof, or shall violate any agreements or conditions affecting the
Land or each Property or any part thereof, or shall obstruct any easement or
right-of-way to which the Land or any Property or any part thereof may be
subject (except easements or rights-of-way granted to or arising in favor of
Lessor), then Lessee shall, at its sole cost and expense, either (i) contest
such matter pursuant to SECTION 8 hereof, (ii) obtain valid and effective
permits for or consents to such encroachments and/or violations (without any
liability to Lessor, the Agent or the Holders of the Notes for which such
parties are not indemnified) or waivers or settlements of all claims,
liabilities and damages resulting therefrom, or (iii) make such changes,
including alteration or removal, to the Improvements and take such other action
as shall be reasonably necessary to rectify such encroachments, violations,
hindrances, obstructions or impairments, subject to the Lessor's consent if and
to the extent required by SECTION 15 hereof. Lessor shall not be required to
construct any improvements on any Property, or to furnish any services or
facilities or to make any repairs, restorations, replacements or alterations in
or to any Property, or to maintain or inspect any Property in any way. Any
inspection which Lessor may make of any Property shall be solely for the purpose
of advising Lessor of the condition thereof and Lessee's compliance with the
terms, covenants and conditions of this Lease and shall not limit or otherwise
alter the respective rights and obligations of Lessor and Lessee hereunder or be
deemed to constitute an approval by Lessor of the condition of such Property,
Lessee's performance of its obligations hereunder or any other matter. LESSEE
HEREBY ASSUMES THE FULL AND SOLE RESPONSIBILITY FOR THE CONDITION, OPERATION,
REPAIR, REPLACEMENT AND MAINTENANCE OF THE PREMISES IN ACCORDANCE WITH THE
TERMS, COVENANTS AND CONDITIONS SET FORTH IN THIS LEASE IRRESPECTIVE OF ITS
RIGHT UNDER ANY APPLICABLE LAWS TO MAKE THE SAME AT THE EXPENSE OF LESSOR.

                                       10
<PAGE>   16

SECTION 7. COMPLIANCE WITH APPLICABLE LAWS

     Lessee shall, throughout the Term at Lessee's sole cost and expense,
promptly comply with and cause each Property to comply in all material respects
with all Applicable Laws, including, without limitation:

          (a) the requirements of every applicable statute, code, law, rule,
     ordinance, regulation, order, policy or directive, now or hereafter made by
     any federal, state, municipal or other public body, department, bureau,
     office or authority, and any judicial or administrative interpretation
     thereof, whether present or future, foreseen or unforeseen, ordinary or
     extraordinary, whether or not the same are presently within the
     contemplation of Lessor or Lessee, or whether the same require structural
     or extraordinary repairs, alterations or additions, and irrespective of the
     cost thereof, which may be applicable from time to time to (i) any Property
     or any part thereof, including, but not limited to, the foundations of any
     building or improvements constituting a part of any Property or any
     appurtenances thereto; (ii) the use or occupation of any Property,
     including, but not limited to, any demolition, construction, alteration,
     structural change or addition of, in or to any Improvements at any time
     upon, connected with, appurtenant to or constituting a part of any
     Property; (iii) any Environmental Activity; (iv) the removal of any
     encroachment; (v) any vault, sidewalk or other space in, under or over any
     street adjoining any Property; and (vi) any agreement, contract, easement,
     encumbrance, covenant or restriction affecting any Property or any part
     thereof; and

          (b) any applicable regulation, rule or order of any Board of Fire
     Underwriters, Fire Insurance Rating Organization, or other body having
     similar functions, or of any liability or fire insurance company insuring
     any Property, whether present or future, foreseen or unforeseen, ordinary
     or extraordinary, whether or not the same are presently within the
     contemplation of Lessor or Lessee, whether the same require structural or
     extraordinary repairs, alterations or additions, and irrespective of the
     cost thereof, which may be applicable from time to time and whether or not
     compliance is required on account of any particular use to which any
     Property or any part thereof may be put.

SECTION 8. CONTEST RIGHTS

     8.1 LESSEE'S RIGHT TO CONTEST.

     Notwithstanding anything to the contrary provided in this Lease, Lessee
shall have the right to protest or contest in good faith (i) the amount,
validity or applicability of any Imposition, (ii) any charge for the services
described in SECTION 4.2 hereof, (iii) the validity or applicability of any
Applicable Law or (iv) the validity or applicability of any Lien; provided that
and so long as (a) the same is done by Lessee upon prior notice to Lessor and
Agent, in good faith, by proper proceedings and in accordance with Applicable
Laws, at Lessee's sole cost and expense and with due diligence and continuity so
as to resolve such protest or contest as promptly as reasonably possible under
the circumstances, (b) no Property nor any part thereof is or will be in
material danger of being forfeited or lost by reason of such protest or contest,
(c) in the case of any contested Lien, such Lien shall be bonded or otherwise
removed from record within the time period set forth in SECTION 16.1 hereof,
(d) if the amount of such Imposition

                                       11
<PAGE>   17

(together with any potential interest or penalties), Lien or charge or the cost
of complying with such Applicable Law exceeds 5% of the total Project Costs for
any Restaurant Property or 5% of the total Acquisition Costs for the HQ
Property, if applicable, Lessee shall deposit with Lessor, or otherwise provide
Lessor with, security in an amount and in form and substance reasonably
satisfactory to Lessor and Agent for application to the amount of any unpaid
Imposition or other charge or the cost of curing any violation of Applicable
Laws being contested, or discharging or satisfying any Lien, as the case may be,
and to secure Lessor and the Noteholders against any loss or damage arising out
of such protest or contest or the deferral of Lessee's performance or
compliance, (e) in any event, each such protest or contest shall be concluded
and any and all actions necessary to comply with Applicable Laws or to discharge
any Lien shall be taken and any contested amounts (together with any penalties,
interest and costs in connection therewith) shall be paid prior to the date any
Property or any part thereof is listed for an in rem action with respect to the
noncompliance with any Applicable Law, the foreclosure of any Lien or the
nonpayment of such Imposition or other charge, as the case may be, or any writ
or order is issued under which any Property or any part thereof may be sold,
forfeited or lost by reason of such noncompliance, foreclosure or nonpayment,
(f) such protest or contest shall not subject Lessor or any Noteholder to
prosecution for a criminal offense or a claim for civil liability and (g) no
Lease Event of Default (as defined in SECTION 12.1) shall have occurred and be
continuing. Pending the determination of any such protest or contest in
accordance with the immediately preceding sentence, Lessee shall not be
obligated to comply with any legal requirement being so contested or to pay the
Imposition or other charge which is being protested or contested if such
noncompliance or non-payment is permitted under Applicable Laws and does not
result in a material risk of the discontinuance of any service that is necessary
for the proper maintenance and operation of any Property, as the case may be.
Upon written request by Lessor or Agent, Lessee shall provide Lessor and Agent
with copies of any applications, petitions or other pleadings filed in
connection with any protest or contest pursuant to this SECTION. If required by
Applicable Laws, Lessee may conduct any protest or contest permitted by this
SECTION indirectly by causing Lessor to do so, provided the same is at the sole
cost and expense of Lessee and that Lessor is notified of Lessee's desire so to
commence such protest or contest at least fifteen (15) Business Days prior to
the date upon which Lessee intends to initiate such protest or contest. So long
as Lessee shall be prosecuting any contest or protest in accordance with the
terms of this SECTION 8.1, Lessee shall not be deemed to be in Default under
this Lease by reason of Lessee's failure to perform the obligation being
contested or protested. Lessor shall cooperate with Lessee in connection with
any such protest or contest, provided (i) all reasonable and documented
out-of-pocket expenses and costs incurred by Lessor in connection therewith
shall be borne by Lessee and (ii) Lessor shall not be required to execute any
document which would (A) materially adversely affect the fair market value or
utility of any Property or (B) subject Lessor, Agent or any Noteholder to any
liability unless, in the circumstances described in clause (B) above, the
applicable Person is indemnified pursuant to and in accordance with SECTION 7 of
the Participation Agreement.

     8.2 LESSOR'S JOINDER RIGHTS.

     Lessor may, at its sole cost and expense, join with Lessee in making any
application, petition or other pleading, retain co-counsel, attend hearings,
present evidence and arguments, and generally participate in the conduct of any
protest or contest under this SECTION 8 and in connection therewith, Lessee
shall notify Lessor of such contest or protest and, upon

                                       12
<PAGE>   18

written request by Lessor, shall make available to Lessor, at Lessor's cost and
expense, any non-privileged material in Lessee's possession relating to the
Premises and any other facts Lessor may reasonably require in connection
therewith. Lessee shall not settle or compromise any contest or protest in which
Lessor may participate pursuant to this SECTION without the prior consent of
Lessor, which shall not be unreasonably withheld, unless the terms of such
settlement (a) expressly provide for the full and unconditional release of the
Lessor from any Claims relating to such protested or contested matter and (b)
will not result in a material adverse effect on the value, useful life or
continued use of any Property for any purposes intended.

SECTION 9. INSURANCE

     9.1 INSURANCE POLICIES.

     Lessee shall, at its sole cost and expense, obtain and maintain (or cause
other parties, such as contractors, to obtain and maintain) the following
insurance policies:

          (c) during the Term hereof, insurance on the Improvements against loss
     or damage by fire and by the risks or causes covered by the broadest form
     of "all risks" or comparable broad form coverage, including coverage for
     damage caused by earthquakes (excluding any Properties located in
     California) and so-called boiler and machinery risks, in amounts at all
     times sufficient to prevent Lessor or Lessee from becoming a co-insurer
     under the terms of the applicable policies, but in any event in an amount
     not less than 100% of the then Full Insurable Value (as hereinafter
     defined) of the Improvements, as evidenced by an appropriate replacement
     cost or stated amount endorsement to the insurance policy;

          (d) during the Term hereof, insurance on the Improvements against loss
     or damage caused by earthquakes and/or earth movement (excluding any
     Properties located in California) in an amount as determined by a qualified
     insurance broker consultant acceptable to Lessor and Lessee;

          (e) flood insurance on the Improvements (excluding any Properties
     located in Zone A) from the date hereof in an amount at least equal to the
     maximum limit of coverage available for the Improvements under the National
     Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973,
     as the same may have been or may hereafter be amended or modified (and any
     successor act thereto) if the Improvements are located in an area
     identified by the U.S. Secretary of Housing and Urban Development as an
     area having flood hazards and in which flood insurance has been made
     available under the aforesaid legislation;

          (f) during the Term hereof, commercial general liability insurance
     written on an occurrence form insuring the Lessee as named insured and
     naming Lessor, Agent and the Noteholders as additional insureds and the
     Lessor as loss payee, against any liability for (i) (A) bodily injury,
     death, property damage (1) occurring on or about the Property or (2)
     relating to the ownership, use or operation of any automobile or other
     vehicle used by any Lessee or Construction Agent in connection with any
     Property and (ii) breach of contract, with limits of liability not less
     than $50,000,000 combined single limit;

                                       13
<PAGE>   19

          (g) during the Term hereof, worker's compensation insurance and
     employer's liability insurance in statutory limits, or otherwise in
     compliance with statutory requirements with respect thereto, covering all
     persons with respect to whom death, bodily injury or sickness claims could
     be asserted against Lessee under any worker's compensation law, employer's
     liability law or similar laws of the state in which each Property is
     located that may, at any time or from time to time, be enacted;

          (h) during the performance of any Alterations, broad form Builder's
     All-Risk insurance in such amounts as Lessor and Agent shall reasonably
     request;

          (i) during the Term hereof, business interruption insurance in amounts
     sufficient to compensate Lessee for the loss of income during a period of
     not less than twelve (12) months, such amount of coverage being adjusted
     annually to reflect the income payable during the succeeding twelve (12)
     month period; and

          (j) such other insurance on the Improvements and in such amounts as
     may from time to time be reasonably required by Lessor and Agent against
     other insurable hazards which at the time are commonly insured against in
     Comparable Buildings.

     The term "FULL INSURABLE VALUE" shall mean the actual replacement cost of
the Improvements (exclusive of the cost of noninsurable portions thereof, such
as excavation, foundations and footings). Any policies of insurance of the
character described in clauses (a), (b) and (d) above shall expressly provide
that any losses thereunder shall be adjusted with Lessor (or the Agent on behalf
of the Lessor) and Lessee. All losses payable under the policies of insurance
described in the preceding sentence shall be payable to Lessee and the loss
payees jointly subject to the terms of this Lease.

     Builder's Risk Insurance shall be "All Risk" or the equivalent coverage
including theft, will insure all buildings, machinery, equipment, materials,
supplies, temporary structures and all other property of any nature on-site,
off-site, and while in transit which is to be used in fabrication, erection,
installation and completion of the project, and remain in effect until the
entire project has been completed and accepted by Lessor. Such Insurance shall
be provided on a replacement cost value basis and include foundations, other
underground property, tenant improvements and personal property when required
herein. If tenant Improvements and personal property are not included in the
above they may be insured separately by Lessor provided coverage is acceptable
to Agent. Builder's Risk insurance shall be on a non-reporting, completed value
form, and covering: soft costs (to the extent not self-insured by Lessee in a
manner reasonably acceptable to Agent), debris removal expense including removal
of pollutants, resulting loss and damage to property due to faulty or defective
workmanship or materials and/or error in design or specification, loss while the
property is in the care, custody, and control of others to whom the property may
be entrusted. The policy shall provide that the Lessor can complete and occupy
the premises without further written consent from the insurer. The policy shall
cover loss of income, resulting from delay in occupancy and use of the premises
due to loss. Such insurance shall also cover continuing expenses not directly
involved in the direct cost of construction/renovation, including expense
incurred upon money borrowed to finance construction or repair, continuing
interest on mortgage loans, advertising, promotion, realty taxes and other
assessments, the cost to the insured of additional commissions incurred

                                       14
<PAGE>   20

upon renegotiating leases, and other expenses incurred as the result of property
loss or destruction by the insured peril. This coverage shall not contain any
monthly limitation.

     9.2 ADDITIONAL POLICY REQUIREMENTS.

     (a) The "all risk" property insurance required to be obtained by Lessee
under this SECTION 9 shall be primary and not be concurrent in form or
contributing with any other coverage which Lessee or Lessor may carry. Such
insurance shall be issued by insurance companies legally qualified to issue such
insurance in the jurisdiction in which each Property is located and of
recognized reputability rated A-XI or better (or the then equivalent of such
rating) by Best's Insurance Reports (or any successor publication of comparable
standing), BBB or better by Standard & Poor's Rating Group and Ba3 by Moody's
Investors Service, Inc. Such insurance shall be provided pursuant to forms of
insurance policies reasonably satisfactory to Lessor. Neither the issuance of
any insurance policy required under this Lease, nor the minimum limits specified
herein with respect to Lessee's insurance coverage, shall be deemed to limit or
restrict in any way Lessee's liability arising under this Lease. The dollar
amounts set forth in SECTION 9.1(D) shall be increased from time to time during
the term upon request by Lessor to the extent such increase is consistent with
commercial general liability insurance then customarily required by landlords of
Comparable Buildings. With respect to the insurance required by SECTIONS 9.1(A)
and (D) that is provided by means of an insurance policy covering each Property
and other properties owned or occupied by Lessee on or before the date upon
which such insurance is required, Lessee shall deliver to Lessor (i) an original
certificate evidencing such insurance, (ii) an original endorsement to such
policy naming Lessor as loss payee or additional insured, as the case may be,
and (iii) a summary of those provisions of such policy applicable to each
Property certified by the issuer. With respect to each other insurance policy
required to be obtained by Lessee under this SECTION 9, on or before the date on
which such insurance coverage is required by SECTION 9.1, Lessee shall deliver
to Lessor satisfactory evidence of such insurance. Prior to the expiration of
any required policy Lessee shall provide to Lessor satisfactory evidence of
renewal or replacement of such insurance policy. Each insurance policy required
to be carried hereunder by or on behalf of Lessee shall (A) provide (and any
certificate evidencing the existence of each such insurance policy shall
certify) (i) that such insurance policy shall not be cancelled or modified
unless Lessor shall have received thirty (30) days' prior written notice of such
cancellation or modification, (ii) that any loss payable thereunder shall be
payable notwithstanding any act, omission or negligence of Lessee which might,
absent such agreement, result in a forfeiture of all or any portion of such
insurance payment, (iii) that the interests of the Lessor, Agent and the Holders
from time to time of the Notes shall be insured regardless of any breach or
violation by the Lessee of any representations, warranties, conditions or
declarations contained in such policy and (B) contain such deductibles and
retentions as shall be commercially available and reasonably acceptable to
Agent.

     (b) If Lessee shall fail to pay any or all of the premiums due under any of
the foregoing policies or to deliver evidence of such policies as required by
this SECTION, Lessor, at its option, may (but shall not be obligated to)
procure, deliver and deposit the same or pay the premiums therefor, and the
amounts paid by Lessor shall constitute Additional Rent hereunder and shall be
repaid to Lessor by Lessee promptly, but in any case within ten (10) Business
Days, after rendition of a bill therefor by Lessor. No such payment by Lessor
shall be deemed a waiver

                                       15

<PAGE>   21

of any default by Lessee hereunder nor shall it affect any other right or remedy
of Lessor by reason of such default.

     (c) Lessee shall not violate or permit any occupant of any Property, or any
part thereof, to violate any of the material conditions or provisions of any
such policy, and Lessee shall perform and satisfy the requirements of the
insurers writing such policies.

     (d) Upon written request by Lessor, Lessee shall furnish proof, reasonably
satisfactory to Lessor, of the payment (whether in full or by periodic payment)
of the premiums for all insurance policies at any time required to be effected
and maintained under this Lease.

     (e) The insurance required to be provided by Lessee pursuant to this
SECTION 9 shall be primary and non-contributory as evidenced by the certificates
of insurance required to be delivered by Lessee pursuant to this SECTION 9.

     (f) No approval by Lessor of any insurer shall be construed to be a
representation, certification or warranty of its solvency and no approval by
Lessor as to the amount, type or form of any insurance shall be construed to be
a representation, certification or warranty of its sufficiency.

     (g) Lessee shall cause each insurer to include in each of Lessee's
insurance policies insuring against loss, damage or destruction of property by
fire or other insured casualty (each a "CASUALTY POLICY") and in the insurance
policy required by SECTION 9.1(D) a waiver of the insurer's right of subrogation
against Lessor, Agent, the Noteholders and their respective employees,
representatives, agents and contractors and against any additional insureds, or,
if such waiver shall be unobtainable (i) an express agreement that such policy
shall not be invalidated if Lessee waives or has waived before the casualty the
right of recovery against any party responsible for a covered casualty or (ii)
any other form of permission for the release of such responsible party.

SECTION 10. DAMAGE, DESTRUCTION AND CONDEMNATION

     10.1 DEFINITION OF CASUALTY.

     If during the Term, any Property or any part thereof shall be destroyed or
damaged in whole or in part by any cause whatsoever and the cost of restoring
such Property exceeds five percent (5%) of the Project Costs for such Property
or shall be taken for any public or quasi-public use, under any statute, or by
right of eminent domain and either the cost to restore such Property or the
resulting diminution in the fair market value of such Property exceeds five
percent (5%) of the fair market value of such Property as of the applicable
Acquisition Date (as set forth in the applicable Appraisal) (any of the
foregoing, a "CASUALTY"), Lessee shall give Lessor prompt notice of such
Casualty. For purposes of this SECTION, the term "SUBSTANTIAL CASUALTY" shall
mean a Casualty the extent of which is such that (i) the Property, in the good
faith opinion of Lessee, is rendered unsuitable for restoration or continued use
or (ii) the nature of such Casualty is such that (A) in the judgment of the
Independent Engineer, the Property cannot be restored with reasonable diligence
in a time period ending no later than the earlier to occur of (1) six (6) months
after the date of such Casualty and (2) six (6) months prior to the Expiration
Date or (B) the cost of the Restoration, as determined by the Independent

                                       16
<PAGE>   22

Engineer, would exceed an amount equal to twenty five percent (25%) of the fair
market value of the Property.

     10.2 ASSIGNMENT OF CASUALTY PROCEEDS.

     Lessee hereby irrevocably assigns to Lessor any award or compensation or
insurance payment or other proceeds to which Lessee may become entitled by
reason of its interest in the Premises or any part thereof being affected by a
Casualty (collectively, "CASUALTY PROCEEDS"). Notwithstanding the foregoing, any
Casualty Proceeds shall be available to Lessee for restoration of the applicable
Property in accordance with the terms of this Lease unless this Lease is
terminated as to such Property as a result of a Substantial Casualty pursuant to
SECTION 10.3 hereof, in which event, such Casualty Proceeds shall either be
assigned to Lessee or applied toward the Lessee's obligation to pay the amounts
payable pursuant to SECTION 10.3.

     10.3 TERMINATION NOTICE; LESSOR TERMINATION NOTICE.

     If a Substantial Casualty occurs, then this Lease (as to the affected
Property, but not as to any of the other Properties) shall terminate as of the
date set forth in a notice delivered by Lessee to Lessor and Agent not later
than thirty (30) days after the date of such Substantial Casualty (the
"TERMINATION NOTICE"), which date shall be the Payment Date first occurring at
least thirty (30) days after the occurrence of any such Substantial Casualty.
Lessee shall continue to pay Basic Rent with respect to the Advances made for
the terminated Property from and including the date of such Casualty to and
including the applicable termination date (the "TERMINATION DATE"), which Basic
Rent for such Advances shall be apportioned as of the Termination Date in the
event such Termination Date does not occur on a Payment Date. On the Termination
Date, Lessee shall pay, or cause to be paid, to Lessor the Termination Value for
the applicable Property and, without duplication, all unpaid and accrued Basic
Rent, any Additional Rent, Closing Costs and other sums then due and payable
hereunder relating to the applicable Property up to and including such
Termination Date, including any Breakage Costs. Upon payment of such amounts by
Lessee to Lessor, Lessor shall convey the applicable Property to Lessee
(including any and all rights of Lessor to any Casualty Proceeds not received
prior to the Termination Date) or its designee without representation, recourse
or warranty except (1) that the such Property free and clear of any Lessor Liens
(except as consented to in writing or created or caused by the Lessee and except
as to any interest created by Lessor upon the exercise of any right hereunder
upon any Lease Event of Default or upon the delivery of a Termination Notice)
and (2) Lessor shall provide customary representations with respect to its valid
existence and authority to execute and deliver such deed. Upon such conveyance,
this Lease shall terminate as to the affected Property and be of no further
force or effect except with respect to those provisions which expressly survive
such termination.

     10.4 CASUALTY OTHER THAN A SUBSTANTIAL CASUALTY.

     (a) If there shall occur a Casualty which is not a Substantial Casualty,
this Lease shall continue in full force and effect without any reduction or
abatement in Basic Rent hereunder and Lessee shall promptly (i) file all
required documents and applications with its insurers, and make such claims with
its insurers, as shall be necessary or advisable, (ii) take such steps as shall
be necessary or advisable to preserve the undamaged portion of the Improvements

                                       17
<PAGE>   23

and (iii) at its own risk, cost and expense, and whether or not the Casualty
Proceeds, if any, shall be sufficient for the purpose, promptly restore, repair,
replace or rebuild the same to its value, condition and character immediately
prior to such damage or destruction. Such restoration, repair, replacement or
rebuilding shall be commenced and prosecuted to completion with due diligence
and in a workmanlike manner. Lessor shall in no event be called upon to repair,
replace, restore or rebuild any portion of the Improvements, nor to pay any of
the costs or expenses thereof. All work shall be performed under the supervision
of an architect or engineer selected by Lessee and approved by Lessor, which
approval shall not unreasonably be withheld or delayed. Such work shall not be
undertaken until (1) complete and detailed plans and specifications have been
approved in writing by Lessor, which approval shall not be withheld or delayed;
provided that (x) the capacity and useful life of the Improvements, shall not,
after such restoration, be less than the capacity and useful life prior to such
Casualty; (y) the fair market value of the affected Property shall not, after
such restoration, be less than its fair market value prior to such Casualty in
Lessor's reasonable judgment; and (z) if the estimated cost to complete such
restoration exceeds the amount of the Casualty Proceeds, Lessor is, in its sole
judgment, satisfied that Lessee shall have sufficient funds available to pay
such excess, and (2) Lessee shall have obtained any necessary permits and
approvals from all governmental departments, bureaus and agencies having
jurisdiction. Lessor shall cooperate with Lessee as necessary in obtaining such
permits and approvals; provided that Lessee shall reimburse Lessor for any
reasonable and documented costs and expenses incurred in connection with such
cooperation.

     (b) Notwithstanding anything to the contrary contained in this Lease, in
the case of a Casualty which is not a Substantial Casualty, Casualty Proceeds
shall be made available only as provided in this SECTION for the payment of the
cost of the aforesaid restoration, repair, replacement or rebuilding, including
the cost of temporary repairs or for the protection of property pending the
completion of permanent restoration, repair, replacement or rebuilding (all of
which temporary repairs, protection of property and permanent restoration,
repair, replacement or rebuilding are hereinafter collectively referred to as
the "RESTORATION").

     (c) Provided no Lease Event of Default shall have occurred and be
continuing if the Casualty Proceeds resulting from any Casualty which is not a
Substantial Casualty are less than 5% of the Project Costs or Acquisition Costs
for such Property, as the case may be, such Casualty Proceeds shall be paid
directly to Lessee (or remitted by the Lessor to Lessee as promptly as
practicable after the receipt thereof by Lessor) for application to the costs of
the Restoration upon satisfaction of the requirements for the commencement of
Restoration work set forth in SECTION 10.4(A). If such Casualty Proceeds are 5%
of the Project Costs or Acquisition Costs for such Property or more, such
Casualty Proceeds, less the actual, reasonable and documented cost, fees and
expenses, if any, incurred in connection with adjustment of the loss, shall be
deposited or invested in an account or vehicle (the "DEPOSITORY") selected by
Lessor and consented to by Lessee, which consent shall not be unreasonably
withheld or delayed. Any Casualty Proceeds received by Lessee which, under the
provisions of this Lease, are required to be placed with the Depository shall be
held by Lessee in trust for Lessor pending its deposit with the Depository. The
Depository shall be, and hereby is, authorized to invest any Casualty Proceeds
received by it in any Permitted Cash Investment. During any period that the
Depository is holding any Casualty Proceeds pursuant to this Lease, Lessee shall
bear the risk of loss with respect to such funds. So long as the Restoration is
being performed by Lessee with reasonable due diligence and in good faith and no
Event of Default shall have occurred and be

                                       18
<PAGE>   24

continuing, the amount deposited with the Depository shall be paid out from time
to time as such Restoration progresses upon the written request of Lessee, which
request shall be accompanied by the following:

          (i) A certificate signed by an independent architect reasonably
     acceptable to Agent, construction consultant, construction manager,
     engineer or other professional then in the business of providing
     certifications of matters of the nature described in CLAUSES (1) and (2) of
     this SECTION 10.4(C)(I) (or, if an architect or engineer is not required
     under SECTION 10.4(A), a certificate signed by a duly authorized officer of
     Lessee) dated not more than fifteen (15) days prior to such request,
     stating that:

               (1) such certifying party has inspected the Improvements and the
          Restoration has been completed to the extent set forth in the request
          by Lessee in accordance with Applicable Laws and the approved plans
          for such Restoration; and

               (2) the cost, as reasonably estimated by such certifying party,
          of the Restoration to be completed subsequent to the date of such
          certificate does not exceed the amount of Casualty Proceeds then held
          by the Depository.

          (ii) A certificate signed by a duly authorized officer of Lessee dated
     not more than fifteen (15) days prior to such request (A) stating that the
     sum then requested either has been paid by Lessee or is justly due to
     contractors, subcontractors, materialmen, engineers, architects or other
     persons who have rendered services or furnished materials for the
     Restoration, (B) restating the representations and warranties of Lessee set
     forth in the Participation Agreement, (C) certifying that no Lease Default
     or Lease Event of Default has occurred and is continuing and giving a brief
     description of such services and materials and the several amounts so paid
     or due to each of said persons in respect thereof, and no part of such
     expenditures has been or is being made the basis in any previous or then
     pending request for the withdrawal of Casualty Proceeds or has been made
     out of the Casualty Proceeds received by Lessee, and the sum then requested
     does not exceed the value of the services and materials described in the
     certificate; and except for the amount, if any, stated pursuant to SECTION
     10.4(C)(I)(1) in such certificate to be due for services or materials and
     any amount being contested by Lessee in accordance with SECTION 8.1 hereof,
     there is no outstanding indebtedness which is then due for labor, wages,
     materials, supplies or services in connection with the Restoration and
     which, if unpaid, might become the basis of a vendor's, mechanic's,
     laborer's or materialmen's statutory or similar lien upon the Restoration
     or upon such Property, or any part thereof, or upon Lessee's leasehold
     interest therein.

     (d) Anything herein contained to the contrary notwithstanding, it shall be
the duty of Lessee at the time of the deposit of the Casualty Proceeds as
aforesaid, and from time to time thereafter upon written request (but not more
often than monthly) until the Restoration shall have been completed and paid
for, to furnish Lessor and the Depository with additional and adequate evidence
of the fact that, at all times, the sum of the undisbursed portion of the
Casualty Proceeds so deposited and the amounts theretofore expended by Lessee in
respect of the costs of Restoration from sources other than Casualty Proceeds
are sufficient to pay for the

                                       19
<PAGE>   25

Restoration in its entirety. If at any time (1) either (x) Lessee does not
furnish such evidence to Lessor in a timely manner or (y) the certificate
required by SECTION 10.4(C)(I) does not include the certification required by
SECTION 10.4(C)(I)(2) and (2) the Casualty Proceeds available for the
Restoration, shall in the reasonable estimation of Lessor, be insufficient to
pay the entire cost of the Restoration, Lessee shall be required to pay from its
own funds the costs of the Restoration, and shall not be entitled to receive or
use the funds on deposit with the Depository, until the amount on deposit with
the Depository is sufficient, in the reasonable estimation of Lessor, to pay the
remaining cost of the Restoration.

     (e) Upon compliance with the foregoing provisions of this SECTION, the
Depository shall pay, to Lessee or the persons named in the certificate referred
to in SECTION 10.4(C)(II) hereof, from such Casualty Proceeds, the respective
amounts stated therein to have been paid by Lessee or to be due to such persons,
as the case may be.

     (f) If the amount of any Casualty Proceeds (including any interest or
earnings thereon) shall exceed the entire cost of the Restoration, such excess,
upon completion of the Restoration and the payment of the entire cost thereof,
shall, subject to SECTION 10.6 hereof, be paid to and retained by Lessee.

     10.5 CONTINUING OBLIGATIONS UNDER LEASE.

     Notwithstanding any rights now or hereafter conferred upon Lessee by
Applicable Laws to quit or surrender this Lease or any Property, or any part
thereof, or to any suspension, diminution, abatement or reduction of any rent on
account of any destruction of or damage to such Property, or any part thereof,
no such destruction or damage, however caused, shall (i) relieve Lessee from its
liability to pay the full Basic Rent and Additional Rent payable under this
Lease, (ii) relieve Lessee from any of its other obligations under this Lease,
or (iii) permit Lessee to quit or surrender this Lease or any Property.

     10.6 EVENT OF DEFAULT.

     If a Lease Event of Default shall have occurred and be continuing, any
Casualty Proceeds payable to or for the account of, or to be retained by, Lessee
pursuant to this SECTION 10 shall be paid to Lessor as security for the
obligations of Lessee under this Lease, and, at such time thereafter as either
no such Lease Event of Default shall be continuing or Lessee shall have validly
exercised its option to purchase the Premises pursuant to SECTION 31, such
Casualty Proceeds shall be paid promptly to Lessee, or applied to the purchase
price payable by Lessee or transferred to the Depository, as applicable.

SECTION 11. LESSOR MAY PERFORM LESSEE'S OBLIGATIONS

     If Lessee shall fail to observe, perform or comply with any term, covenant
or condition contained herein to be observed, performed or complied with on
Lessee's part, including, without limitation, any obligation to pay any
Imposition required by SECTION 4 hereof or any other amount required to be paid
by Lessee to any third party pursuant to the terms hereof Lessor, without being
under any obligation to do so and without thereby waiving such failure, may (i)
upon expiration of the applicable grace period with respect to such default
provided in SECTION 12 hereof, or (ii) in the case of any failure resulting in
imminent threat to human health

                                       20
<PAGE>   26

or any Property or a reasonable likelihood of criminal liability on the part of
any Indemnified Person, upon such prior notice as shall be reasonable under the
circumstances, perform the same (and shall have access to each Property, if
necessary, to do so), including, without limitation, the making of repairs
necessary to cure such failure for the account and at the expense of Lessee. If
Lessor should incur any cost or expense whatsoever, including, without
limitation, reasonable attorneys' fees and disbursements, in (A) performing any
of Lessee's obligations in accordance with the provisions of this SECTION 11,
(B) instituting or prosecuting any action or proceeding in connection with
Lessor's performance of any of Lessee's obligations in accordance with the
provisions of this SECTION 11 or (C) defending any action or proceeding
instituted by reason of any default of Lessee, Lessee shall reimburse Lessor, on
demand, for the amount of such expense together with interest thereon from the
date of such payment or expenditure by Lessor to the date of reimbursement at a
rate equal to the Default Rate as Additional Rent. No such payment or
expenditure by Lessor shall be deemed a waiver of any default by Lessee
hereunder nor shall it affect any other right or remedy of Lessor by reason of
such default.

SECTION 12. DEFAULT OF LESSEE

     12.1 LEASE EVENT OF DEFAULT DEFINED.

     This Lease and the term and estate hereby granted are subject to the
limitation that if any one or more of the following events (each, a "LEASE EVENT
OF DEFAULT") shall occur:

     (a) Lessee shall fail to pay when due any Termination Value; or

     (b) Lessee shall fail to pay any installment of Basic Rent when due; or

     (c) Lessee shall fail to pay when due any Additional Rent (other than
Termination Value), Closing Costs and other sums then due and payable hereunder
relating to the Premises, including Breakage Costs, and such failure shall
continue thirty (30) days after notice by Lessor to Lessee of such default; or

     (d) Lessee shall fail to maintain insurance in accordance with the
requirements of SECTION 9 of this Lease; or

     (e) Lessee shall fail to observe, perform or comply with any term, covenant
or condition of this Lease on Lessee's part to be observed, performed or
complied with (other than the covenants described in SUBSECTIONS (A) through (D)
of this SECTION 12.1) and (1) such failure shall not be capable of cure or (2)
Lessee shall fail to remedy such default within ninety (90) days (or such longer
period as is reasonably necessary to remedy the same so long as Lessee
diligently pursues the same, but in no event longer than an additional one
hundred eighty (180) days) after the earlier of (x) the date on which a
Responsible Officer of Lessee becomes aware of such failure and (y) notice by
Lessor to Lessee of such default; or

     (f) an Event of Default under the Participation Agreement other than an
Event of Default described under SUBSECTION 9.1(O) of the Participation
Agreement or an Event of Default described under subsection 9.1(A), (B), (C),
(D) or (P) of the Participation Agreement that is not caused by a Lease Event of
Default; or

                                       21
<PAGE>   27

     (g) the Property or any portion thereof shall become subject to any Lien
(other than a Lessor Lien) not expressly permitted by the terms of the Operative
Documents and such Lien is not removed by Lessee (by bonding or otherwise)
within sixty (60) days after Lessee receives notice or a Responsible Officer of
Lessee obtains actual knowledge of the existence of such Lien; or

     (h) Lessee is generally not paying its debts as they become due or admits
in writing its inability to pay its debts generally or makes a general
assignment for the benefit of creditors; or any proceeding is instituted by or
against Lessee seeking an order for relief under the United States Bankruptcy
Code or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts or the
appointment of a receiver, trustee, custodian or other similar official for it
or for any substantial part of its property under any law relating to
bankruptcy, insolvency, liquidation or reorganization or relief of debtors and
either (A) any such relief in any such proceeding is sought or consented to by
it or an order for any such relief is entered against it, or (B) any such
proceeding instituted against it remains undismissed and unstayed for a period
of sixty (60) days; or Lessee takes any corporate action to authorize any of the
actions set forth above in this SECTION 12.01(H); or

     (i) Lessee shall assign, mortgage, hypothecate, sublet or otherwise
transfer or encumber this Lease or any portion of the Premises other than in
accordance with the provisions of SECTION 13 hereof; or

     (j) Lessee has elected not to purchase the Premises pursuant to SECTION
33.1 hereof and as of thirty (30) Business Days prior to the Expiration Date
either (i) any Restoration of the Property is then continuing or (ii) a
temporary condemnation affecting any material portion of the Property has
occurred and is reasonably likely to continue beyond the Expiration Date,

and any of said events is continuing, Lessor, at its option, may (but shall not
be obligated to) terminate this Lease and the term and estate hereby granted
upon notice to Lessee, and, in the event such notice is given, this Lease and
the term and estate hereby granted shall terminate upon the giving of such
notice with the same effect as if that day were the Expiration Date, and Lessee
shall then quit and surrender the Premises to Lessor but Lessee shall remain
liable as herein set forth.

     12.2 REMEDIES.

     (a) If a Lease Event of Default shall have occurred and shall have
continued to the date of Lessor's demand pursuant to SECTION 12.2(A)(IV)
(whether or not this Lease and the Term shall have been terminated as provided
in this SECTION), or if this Lease and the Term shall be terminated as provided
in this SECTION, then, in any of said events:

          (i) Lessor may take all steps to protect and enforce the rights of the
     Lessor or obligations of Lessee hereunder, whether by action, suit or
     proceeding at law or in equity (for the specific performance of any
     covenant, condition or agreement contained in this Lease, or in and for the
     execution of any power herein granted or for any foreclosure, or

                                       22
<PAGE>   28

     the enforcement or any other appropriate legal or equitable remedy) or
     otherwise as the Lessor shall deem necessary or advisable;

          (ii) Lessee shall pay to Lessor all Basic Rent and Additional Rent to
     the date upon which this Lease and the Term shall have terminated or to the
     date of re-entry upon the Premises by Lessor, as the case may be;

          (iii) Lessor shall be entitled to retain all monies, if any, paid by
     Lessee to Lessor pursuant to the Lease, whether as Basic Rent, Additional
     Rent or otherwise, but such monies shall be credited by Lessor against any
     Basic Rent or Additional Rent due at the time of the occurrence of the
     Lease Event of Default or the time of any termination or re-entry or, at
     Lessor's option, against any damages payable by Lessee;

          (iv) Lessee shall be liable for and shall pay to Lessor on demand by
     Lessor, as liquidated damages (Lessee and Lessor acknowledging hereby that
     it would be impractical or extremely difficult to fix actual damages to
     Lessor by reason of a Lease Event of Default) and as consideration for the
     transfer of Lessor's interest in the Premises, an amount equal to the
     Termination Value for the Premises, together with all Basic Rent,
     Additional Rent, Closing Costs and other sums then due and payable
     hereunder relating to the Property up to and including the date of such
     payment, including any Breakage Costs, if any.

     Upon receipt by Lessor of all sums due hereunder, in immediately available
     United States currency, Lessor shall transfer to Lessee, without
     representations, recourse or warranty other than customary representations
     with respect to its valid existence and authority to execute and deliver
     the deeds of conveyance (but free of any Lessor Liens), its interest (1) in
     the Premises, (2) to the extent the same are assignable (and following or
     as a result of such assignment Lessor is released from any continuing
     obligations thereunder), in and to any construction contracts and permits,
     other than any rights of Lessor to any indemnities thereunder and (3) all
     rights and entitlements to any of the foregoing or held in connection
     therewith, and, upon such transfer, this Lease and the obligations of the
     parties hereto (other than those rights and obligations which expressly
     survive such termination) shall thereupon immediately cease and terminate.

          (v) Lessor's agents and representatives may immediately re-enter the
     Premises or any part thereof, either by summary proceedings or by any other
     applicable action or proceeding, or by force or otherwise (without being
     liable to indictment, prosecution or damages therefor), and may repossess
     the Premises and dispossess Lessee and any other persons and entities from
     the Premises or dispossess some and not others or dispossess none and
     remove any and all of Lessee or its property and effects from the Premises
     and in no event shall re-entry be deemed an acceptance of surrender of this
     Lease or an election by Lessor of any particular remedy or of a claim for
     damages against Lessee. Upon any such re-entry, Lessor, at its option, may
     relet the whole or any part or parts of the Premises from time to time, for
     the account of Lessee, to such tenant or tenants, for such term or terms
     ending before, on or after the scheduled expiration of the Term, at such
     rental or rentals and upon such other conditions, which may include
     concessions and free rent periods, as Lessor, in its sole discretion, may
     determine. Lessor shall not be required to accept any tenant offered by
     Lessee or to observe any instruction

                                       23
<PAGE>   29

     given by Lessee about such reletting. Lessor shall have no obligation to
     relet the Premises or any part thereof and shall in no event be liable for
     refusal or failure to relet the Premises or any part thereof, or, in the
     event of any such reletting, for refusal or failure to collect any rent due
     upon any such reletting, and no such refusal or failure shall operate to
     relieve Lessee of any liability under this Lease or otherwise to affect any
     such liability. Lessor, at Lessor's option, may make such Alterations and
     other physical changes in and to the Property as Lessor, in its sole
     discretion, considers advisable or necessary in connection with any such
     reletting or proposed reletting without relieving Lessee of any liability
     under this Lease or otherwise affecting any such liability, provided that
     Lessee shall not be liable for the cost of any such Alterations or other
     physical changes unless Lessee is otherwise liable therefor under the other
     terms, covenants and conditions contained in this Lease. In no event shall
     any one or more of the following actions by Lessor constitute a termination
     of this Lease: (A) maintenance and preservation of the Premises; (B)
     efforts to relet the Premises; (C) appointment of a receiver in order to
     protect Lessor Trustee's interest hereunder; (D) consent to any subletting
     of the Premises or assignment of this Lease by Lessee, whether pursuant to
     provisions hereof concerning subletting and assignments or otherwise; or
     (E) any other action by Lessor's agents intended to mitigate the adverse
     effects from any breach of this Lease by Lessee or otherwise permitted by
     law;

          (vi) Subject to SECTION 13.2(C) hereof, Lessor shall be entitled to
     terminate any and all subleases, licenses, concessions or other consensual
     arrangements for possession entered into by Lessee and affecting the
     Premises or may, in Lessor's sole discretion, succeed to Lessee's interest
     in such subleases, licenses, concessions or arrangements. In the event of
     Lessor's election to succeed to Lessee's interest in any such subleases,
     licenses, concessions or arrangements, Lessee shall, as of the date of
     notice by Lessor of such election, have no further right or interest in the
     rent or other consideration receivable thereunder; and

          (vii) In addition to the other sums that Lessor shall be entitled to
     recover under this SECTION, Lessor shall be entitled to prove and recover
     from Lessee as damages an amount equal to the cost of performing all
     obligations on Lessee's part to be performed under this Lease during the
     Term which obligations have not been previously discharged by Lessee,
     including, without limitation, the cost of placing the Premises in the
     condition in which Lessee has agreed to surrender it to Lessor on the
     expiration or termination of this Lease.

     (b) In the event of any breach or threatened breach by Lessee or any person
or entity claiming through or under Lessee of any of the terms, covenants or
conditions contained in this Lease, Lessor shall be entitled to enjoin such
breach or threatened breach and shall have the right to invoke any right and
remedy allowed at law or in equity or by statute or otherwise as if re-entry,
summary proceedings or other specific remedies were not provided for in this
Lease.

     (c) Lessee, on its own behalf and on behalf of all persons and entities
claiming through or under Lessee, including, but not limited to, all creditors,
does hereby irrevocably waive any and all rights and privileges, so far as is
permitted by law, which Lessee and all such persons and entities might otherwise
have under any Applicable Laws, to (i) the

                                       24
<PAGE>   30

service of any notice of intention to re-enter or to institute legal proceedings
to that end, (ii) redeem the Premises, (iii) re-enter or repossess the Premises,
or (iv) restore the operation of this Lease after Lessee shall have been
dispossessed by a judgment or by warrant of any court or judge, or after any
re-entry by Lessor, or after any expiration or termination of this Lease and the
Term, whether such dispossession, re-entry, expiration or termination shall be
by operation of law or pursuant to the provisions of this Lease. The words
"re-enter," "re-entry" and "re-entered" as used in this Lease shall not be
deemed to be restricted to their technical legal meanings.

     (d) In the event suit shall be brought by Lessor because of the breach of
any term, covenant or condition herein contained on the part of Lessee to be
observed, performed or complied with, then, if Lessor is awarded any affirmative
relief in such suit, Lessor may recover from Lessee all expenses incurred in
connection therewith, including, without limitation, reasonable attorneys' fees
and disbursements.

     (e) To the extent that any Lease Event of Default shall have been fully and
completely cured prior to the exercise of any remedies by Lessor under this
Lease or by Agent or any Holders under any of the other Operative Documents or
Applicable Law, such Lease Event of Default shall cease to be an "Event of
Default" for all purposes under the Operative Documents, including, without
limitation, for purposes of the exercise of remedies or the denial or
conditioning of the rights of Lessee hereunder.

     (f) Notwithstanding anything set forth herein to the contrary, upon the
occurrence of any Lease Event of Default, Lessee may demand, by notice in
writing to Lessor, that Lessor pursue its remedies under SECTION 12.2(iv) hereof
first, in which event Lessor shall indeed pursue its remedies under said SECTION
12.2(IV) for a reasonable time before exercising any of its other remedies under
this SECTION 12.2.

     12.3 WAIVER OF TRIAL BY JURY.

     LESSOR AND LESSEE SHALL AND HEREBY DO IRREVOCABLY WAIVE TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM, BY CONSOLIDATION OF ACTIONS OR
OTHERWISE, BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN ANY
MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE OR THE
INTERPRETATION THEREOF, THE RELATIONSHIP OF LESSOR AND LESSEE, LESSEE'S USE OR
OCCUPANCY OF THE PREMISES, ANY CLAIM OF INJURY OR DAMAGE, AND ANY EMERGENCY
STATUTORY OR ANY OTHER STATUTORY REMEDY. LESSEE SHALL NOT INTERPOSE ANY
COUNTERCLAIM OR COUNTERCLAIMS, BY CONSOLIDATION OF ACTIONS OR OTHERWISE, OR
RAISE THE EQUITABLE DEFENSE OF RECOUPMENT OR SETOFF IN A SUMMARY PROCEEDING OR
IN ANY ACTION BASED ON NON-PAYMENT BY LESSEE OF BASIC RENT OR ADDITIONAL RENT,
UNLESS THE FAILURE TO INTERPOSE SUCH COUNTERCLAIM OR COUNTERCLAIMS IN SUCH
PROCEEDINGS OR ACTION WOULD CONSTITUTE A WAIVER OF SUCH COUNTERCLAIM OR
COUNTERCLAIMS OR WOULD MATERIALLY PREJUDICE LESSEE'S RIGHT TO PURSUE SUCH
COUNTERCLAIM OR COUNTERCLAIMS IN A SEPARATE ACTION OR PROCEEDING. NOTHING
CONTAINED IN THE

                                       25

<PAGE>   31

IMMEDIATELY PRECEDING SENTENCE SHALL BE DEEMED TO PROHIBIT LESSEE FROM PURSUING
ANY CLAIM THAT LESSEE MAY HAVE AGAINST LESSOR IN A SEPARATE SUIT OR PROCEEDING,
PROVIDED THAT LESSEE SHALL NOT MAKE ANY MOTION TO CONSOLIDATE SUCH SEPARATE SUIT
OR PROCEEDING WITH ANY SUMMARY PROCEEDING OR OTHER ACTION DESCRIBED IN THE
IMMEDIATELY PRECEDING SENTENCE. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE
TERMINATION OF THIS LEASE.

     12.4 REMEDIES CUMULATIVE.

     The rights and remedies created hereby are cumulative, and no reference to
nor exercise of any specific right or remedy by Lessor shall prejudice or
preclude Lessor from exercising or invoking any other remedy in respect thereof,
whether allowed at law or in equity or expressly provided for herein or the
other Operative Documents.

     12.5 NO SUBSEQUENT WAIVER.

     No waiver by Lessor or Lessee of the breach of any covenant, agreement,
obligation or condition of this Lease shall be construed to be a waiver of any
future breach of the same or any other covenant, agreement, obligation or
condition hereof.

     12.6 MORTGAGE.

     (a) Lessor and Lessee intend that the Lessee shall treat this Lease, for
accounting purposes, as an operating lease and as a financing for tax purposes.
If, however, a court of competent jurisdiction determines that the transaction
represented by this Lease and the other Operative Documents will be treated as a
financing transaction, then in such event it is the intention of the parties
hereto (i) that this Lease be treated as a mortgage and security agreement or
other similar instrument (the "CONSTRUCTIVE MORTGAGE") from Lessee, as grantor,
to Lessor, as grantee ("MORTGAGEE") for the benefit of Lessor and the Holders,
encumbering the Property and securing the B-Notes and Lessor Investment in the
aggregate and that the Lessee, as grantor, hereby (A) grants, bargains and sells
to the Mortgagee for the benefit of the Lessor and the Holders, the Premises,
and the Constructive Mortgage shall constitute a first and paramount Lien on the
Premises, and (B) grants a security interest to Lessor in the Premises for the
benefit of the Holders, (ii) that Lessor for the benefit of itself and of the
Holders shall have, as a result of such determination, all of the rights, powers
and remedies of a mortgagee and/or secured party available under Applicable Law
to take possession of and sell (whether by foreclosure, power of sale or
otherwise) the Premises, (iii) that the effective date of the Constructive
Mortgage shall be the effective date of this Lease, (iv) that the recording of
an instrument referencing this provision shall be deemed to be the recording of
the Constructive Mortgage, (v) that the obligations secured by the Constructive
Mortgage shall be the secured obligations; provided, however, that the maximum
amount secured by such Constructive Mortgage shall be equal to the principal
amount of the B-Notes issued with respect to the Property plus accrued and
unpaid interest and any costs and expenses reimbursable by Lessee pursuant
hereto; and (vi) Lessee shall pay any and all recordation or similar taxes due,
if any, at the time a Construction Mortgage shall be determined to exist.

                                       26
<PAGE>   32

     (b) If this Lease shall hereafter be treated as the Constructive Mortgage
as provided in SECTION 12.6(A) above, then the following provisions shall apply
in respect of the Lessor's enforcement of its rights under such Constructive
Mortgage: (i) upon request by the Requisite Holders (determined in this case,
only, as if no A-Notes were then outstanding), mortgagee shall proceed to sell
the Premises and any and every part thereof, at public venue, to the highest
bidder, at the customary time and place in the county where each Property is
located, and at the time, place, and under the terms designated in said notice
of sale for cash, first giving the public notice and notice to the Lessee
required by Applicable Law of the time, terms and place of sale, and of the
property to be sold; and upon such sale shall execute and deliver a deed of
conveyance of each Property sold to the purchaser or purchasers thereof, and any
statement or recital of fact in such deed in relation to the nonpayment of money
hereby secured to be paid, existence of the indebtedness so secured, notice of
advertisement, sale, receipt of money, and the happening of any of the events
whereby any successor Lessor became successor as herein provided, shall be prima
facie evidence of the truth of such statement or recital; and Lessor shall
receive the proceeds of such sale, out of which Lessor shall pay, first the
reasonable and documented costs and expenses of executing this trust, including
reasonable and documented attorneys' fees and compensation to Lessor for his or
her services, and next to the applicable Holders or their endorsees or
assignees, upon the usual vouchers therefor, all monies paid pursuant to or
under any provisions set forth herein or in the Operative Documents; and next
all monies due and owing as to the secured obligations then due and unpaid (with
interest at the Default Rate on any overdue amounts) up to the time of such
payment, and if not enough therefor, then apply what remains; and next to all
other unpaid sums secured hereby in such order as Lessor may elect; and the
balance of such proceeds, if any, shall be paid to Lessee or such other Person
or Persons legally entitled thereto; and Lessor covenants faithfully to perform
the trust herein created; (ii) until a sale shall be held hereunder, Lessor
hereby lets the Premises to the Lessee, upon the following terms and conditions,
to-wit: the Lessee, and every and all persons claiming or possessing the
Premises, and any part thereof, by, through, or under it, shall or will pay rent
therefor during said term at the rate of one cent per month, payable monthly
upon demand, and shall and will surrender peaceable possession of the Premises,
and any and every part thereof, to Lessor, its successors, assignees, or
purchasers thereof, without notice or demand therefor, upon the occurrence of
said sale; (iii) upon any sale or sales made hereunder, whether made under the
power of sale herein granted or under or by virtue of judicial proceedings or of
a judgment or decree of foreclosure and sale, Lessor and any Holder of a B-Note
may bid for and acquire the Premises or any part thereof and, in lieu of paying
cash therefor, may make settlement for the purchase price by crediting upon the
secured obligations the net sales price after deducting therefrom the reasonable
and documented expenses of sale and the cost of the action and any other sums
which the Lessor is authorized to deduct under this Lease, and, in such event,
this Lease and the Operative Documents evidencing the secured obligations may be
presented to the persons or person conducting the sale in order that the amount
so used or applied may be credited upon the secured obligations as having been
paid; and (iv) Lessor shall have the option to proceed with foreclosure in
satisfaction of any part of the secured obligations without declaring the whole
of the secured obligations as immediately due and payable, and such foreclosure
may be made subject to the part of the secured obligations not due and payable,
and it is agreed that such foreclosure, if so made, shall not in any manner
affect the part of the secured obligations, but as to such part this Lease, as
treated as the Constructive Mortgage, as well as the other Operative Documents,
shall remain in full force and effect just as

                                       27
<PAGE>   33

though no foreclosure had been made. Several foreclosures may be made without
exhausting the right of foreclosure for any part of the secured obligations not
due and payable, it being the purpose to provide for a foreclosure and sale of
the security for any due and payable portion of the secured obligations without
exhausting the power of foreclosure and power to sell the Premises for any other
part of the secured obligations.

SECTION 13. ASSIGNMENT, SUBLETTING AND MORTGAGING

     13.1 ASSIGNMENT.

     (a) Neither this Lease nor the leasehold created hereby shall be assigned,
mortgaged, hypothecated or otherwise transferred or encumbered by Lessee, by
operation of law or otherwise without the prior written consent of Lessor, which
consent may be withheld by Lessor in its sole discretion; provided that Lessee
may assign the Lease to any Affiliate of Lessee. Any attempted assignment,
mortgage, hypothecation or other transfer or encumbrance or subletting in
violation of this SECTION shall be null and void and without effect and shall
not affect any of Lessor's rights or remedies hereunder.

     (b) For purposes of this SECTION 13, the following events shall be deemed
an assignment of this Lease: (i) the issuance of equity interests in Lessee
(whether stock or partnership interest or otherwise) to any person or group of
related persons, in a single transaction or a series of related transactions,
such that, following such issuance, such person or group shall have Control of
Lessee; or (ii) a transfer of Control of Lessee in a single transaction or a
series of related transactions, except that the transfer of the outstanding
capital stock of Lessee (by persons or parties other than "insiders" within the
meaning of the Securities Exchange Act of 1934, as amended) through the
"over-the-counter" market or any recognized national securities exchange shall
not be included in the determination of whether Control has been transferred.

     13.2 SUBLETTING.

     (a) Lessee shall not sublease any portion of the Premises without Lessor's
prior consent, which consent may be withheld by Lessor in its sole discretion;
provided, however, that Lessee may sublet any portion of the premises to an
Affiliate of Lessee. The term of any such sublease (including any renewal or
extension options contained in such sublease) must end no later than one day
prior to the expiration of the Term. Lessee shall deliver a conformed copy of
any proposed sublease to the Lessor and Agent within thirty (30) days after the
effective date of such sublease.

     (b) Each sublease entered into by Lessee shall provide that, from and after
the termination of this Lease or re-entry by Lessor or other succession by
Lessor to Lessee's estate in the Premises, subtenant shall waive any right to
surrender possession or to terminate the sublease and, at Lessor's election,
shall be bound to Lessor for the balance of the term of the sublease and shall
attorn to and recognize Lessor, as its landlord, under all of the then executory
terms of the sublease, except that Lessor shall not (i) be liable for any
previous act, omission or negligence of Lessee under the sublease, (ii) be
subject to any counterclaim, defense or offset not expressly provided for in the
sublease theretofore accruing to subtenant against Lessee, or (iii) be obligated

                                       28

<PAGE>   34

to perform any repairs or work in any Property. Subtenant shall execute and
deliver such instruments as Lessor may reasonably request to evidence and
confirm such attornment.

     (c) Each sublease (i) shall provide that it is, and at all times shall
remain, subject and subordinate to this Lease, to all of the provisions,
covenants, agreements, terms and conditions hereof and to any matters to which
this Lease is subject and subordinate and (ii) shall include an agreement by the
subtenant, enforceable directly by Lessor, to confirm such subordination in
writing at the request of Lessor. At Lessee's request, Lessor shall execute and
deliver a non-disturbance agreement in form and substance reasonably acceptable
to Lessor, provided that Lessor and the Requisite Holders, in their sole
discretion, each determine that the terms of such sublease and the nature,
creditworthiness and character of the proposed subtenant are such that Lessor
would, in the absence of this Lease, enter into a direct lease with such
subtenant for such premises and on such terms.

     13.3 CONSENT; EFFECT OF ASSIGNMENT OR SUBLETTING.

     (a) The consent by Lessor to an assignment or to a subletting (if
applicable) shall not relieve Lessee from obtaining the express consent of
Lessor to any further assignment or subletting (if applicable).

     (b) Nothing contained herein or in any consent that may be granted by
Lessor to any assignment or subletting (if applicable) shall be construed to
modify, waive, impair or affect any of the provisions, covenants, agreements,
terms or conditions of this Lease or to relieve Lessee of any liability or
obligation imposed upon it hereunder, notwithstanding any assignment of its
interest hereunder or any subletting of all or any portion of the Premises.

     (c) If this Lease be assigned, or if the Premises or any part thereof be
sublet or occupied by any person or entity other than Lessee, whether or not in
accordance with the terms, covenants and conditions contained in this Lease,
Lessor may, after the occurrence of any Lease Event of Default, collect rent
from the assignee, subtenant or occupant, and apply the net amount collected to
the rent herein reserved, but no assignment, subletting, occupancy or collection
shall be deemed a waiver of the provisions hereof (including, without
limitation, a waiver of any violation of the provisions of this SECTION 13), the
acceptance of the assignee, subtenant or occupant as tenant, or a release of
Lessee from the further performance by Lessee of any of the terms, covenants or
conditions on the part of Lessee herein contained.

SECTION 14. ACCESS TO PROPERTY

     Lessee shall permit inspections of each Property by Lessor and Agent, their
respective agents and representatives, and by or on behalf of any existing and
prospective mortgagees of any Property, prospective purchasers of any Property
and any existing or prospective lessor under any underlying lease of any
Property (collectively referred to herein as the "INVITEES"), at any time during
the Term and at Lessee's sole cost and expense if a Lease Event of Default shall
occur and be continuing, and shall permit the Invitees and their respective
agents and representatives access to (i) ascertain the condition of each
Property or whether Lessee is observing, performing and complying with Lessee's
obligations hereunder, or (ii) make such repairs required hereunder if permitted
pursuant to SECTION 11 hereof. Except for access

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<PAGE>   35

during periods when Lessor or Agent has reason to believe that conditions at any
Property are such that there is an imminent threat to human health or such
Property or a reasonable likelihood such conditions could result in criminal
liability on the part of any Indemnified Person, the rights of access contained
in this Lease shall be exercisable at reasonable times, at reasonable hours and,
in all cases, on reasonable prior notice. Unless and until Lessee shall have
exercised its option to purchase the Premises pursuant to SECTION 31, during the
one (1) year period immediately preceding the scheduled expiration of the Term,
Lessee shall permit inspection of the Premises at reasonable times, at
reasonable hours, upon reasonable notice and for reasonable periods by or on
behalf of prospective tenants. The provisions contained in this SECTION 14 are
not intended to create or increase, and are not to be construed as creating or
increasing, any obligations on Lessor's part hereunder.

SECTION 15. ALTERATIONS

     15.1 APPROVAL.

     Lessee shall not make or allow any alterations, additional installations,
substitutions, improvements and decorations (collectively referred to herein as
"ALTERATIONS") in, on or to any Property without the prior approval of Lessor if
such Alteration or Alterations would adversely affect the value, utility or
useful life of the Improvements. All Alterations undertaken by Lessee shall be
performed at Lessee's sole cost and expense and Lessor shall have no obligation
hereunder to reimburse Lessee for any portion of the costs thereof.

     15.2 CONDITIONS.

     (a) Lessee's rights to make Alterations to any Property shall be further
subject to the following terms, covenants and conditions:

          (i) All Alterations (excluding, however, Alterations that are solely
     comprised of partitions, floor covering, fixtures or other personal
     property which can be removed from the applicable Property pursuant to
     SECTION 23 hereof ("REMOVABLE PROPERTY")) shall be of a standard and
     quality at least equal to the standard and quality of the Improvements as
     of the date of this Lease.

          (ii) At all times all bills for supplies, materials, labor and
     services in connection with the Alterations shall have been paid, provided
     for (by hold-back or another method reasonably acceptable to Lessor) or
     bonded (by a surety company bond issued by a company and in form, substance
     and amount reasonably acceptable to Lessor), and no vendor's, mechanic's,
     laborer's or materialmen's statutory or similar lien upon the Premises, or
     any portion thereof, shall have been filed based upon such supplies,
     materials, labor or services unless Lessee is contesting such lien in
     accordance with SECTION 8 hereof.

          (iii) The Alterations will not result in a violation of any
     certificate of occupancy applicable to the affected Property or any part
     thereof or result in, or require, any change in any such certificate of
     occupancy so that any portion of the Improvements may not be used for the
     uses thereof permitted in SECTION 3 hereof.

                                       30
<PAGE>   36

          (iv) In performing the work involved in making the Alterations, Lessee
     shall be bound by and observe all of the terms, conditions and covenants
     contained in this SECTION 15.

          (v) Before proceeding with any Alteration the cost of which exceeds
     $200,000, Lessee shall submit to Lessor a reasonably detailed description
     of the work to be done and a certification that such Alteration will not
     materially adversely affect the value, utility or useful life of the
     applicable Property. Lessee shall not be permitted to install and make part
     of any Property any materials, fixtures or articles which are subject to
     Liens, conditional sales contracts, chattel mortgages or security interests
     (as such term is defined in the Uniform Commercial Code as in effect in the
     State in which such Property is located.

          (vi) Lessee shall maintain a complete set of "as built" structural,
     mechanical and similar plans and specifications with respect to any
     Alterations which would customarily be reflected on "as built" plans in
     accordance with good construction practice and shall promptly deliver a
     copy thereof to Lessor as soon as is practicable after Lessor's request.
     The obligations of Lessee under this SECTION 15.2(A)(VI) shall survive the
     expiration or termination of this Lease.

     (b) All Alterations shall at all times comply with all Applicable Laws.
Lessee, at its expense, shall (i) obtain (and Lessor shall cooperate with
Lessee, at Lessee's cost, in so obtaining) all necessary governmental permits
and certificate for the commencement and prosecution of the Alterations and for
final approval thereof upon completion, (ii) deliver copies thereof to Lessor,
and (iii) cause the Alterations to be performed in material compliance therewith
and in material compliance with all applicable requirements of the Operative
Documents, and in a good and first-class workmanlike manner, using materials and
equipment at least equal in quality and standard to the Initial Improvements
(except with respect to Alterations affecting only Removable Property).

     (c) Subject to SECTION 8 hereof, Lessee, at its expense, and with diligence
and dispatch, shall procure the cancellation or discharge of all notices of
violation arising from or otherwise connected with Alterations which shall be
issued by public authority having or asserting jurisdiction.

     (d) For the purposes of this Lease, the term "FIXTURES" means all fixtures,
equipment, betterments, personal property, Alterations and appurtenances
attached to or built into any Property at the Commencement Date or during the
Term, or necessary for the operation of such Property in a manner consistent
with Comparable Buildings, whether or not at the expense of Lessee. The Fixtures
shall be deemed to include all electric, plumbing, heating, sprinkling, security
systems, fixtures, outlets, venetian blinds, partitions, gates, doors, vaults,
paneling, molding, shelving, radiator enclosures, cork, rubber, carpeting,
linoleum and composition floors, ventilating, silencing, air conditioning and
cooling equipment, and all fixtures, equipment, improvements and appurtenances
of a similar nature or purpose. All Fixtures shall be and remain a part of the
related Property and shall be deemed the property of Lessor as of the date such
Fixtures are completed, or as of the date such Fixtures are attached to

                                       31
<PAGE>   37

or built into a Property, and shall not be removed by Lessee, except as
expressly provided in SECTION 23 hereof.

     (e) If, during the last six (6) months of the Term, Lessee shall have
removed all or substantially all of its property from any Property, unless
Lessor shall have theretofore exercised its right to purchase such Property
pursuant to SECTION 33 hereof, Lessor may thereafter enter and alter, renovate
and redecorate such Property, without elimination, diminution or abatement of
Basic Rent or Additional Rent or incurring liability to Lessee for any
compensation. Lessor shall give Lessee at least fifteen (15) Business Days'
notice prior to commencing any such alteration, renovation or redecoration. From
and after the date that Lessor commences any such alteration, renovation or
redecoration of such Property, Lessee shall no longer be obligated to observe,
perform or comply with any term, covenant or condition hereof on Lessee's part
to be observed, performed or complied with hereunder (other than Lessee's
obligation to pay Basic Rent and Additional Rent) to the extent that such
obligations arise or accrue after the date that Lessor commences any such
alteration, renovation or redecoration of such Property. Unless Lessor shall
have given Lessee the aforesaid notice, Lessor shall not be entitled to exercise
its right under this SECTION 15.2(E). Without limiting the generality of the
foregoing, no entry on any Property by Lessor pursuant to SECTION 11 or 12
hereof shall be deemed to be an exercise by Lessor of its right under this
SECTION 15.2(E).

SECTION 16. LIENS; ZONING

     16.1 LIENS.

     (a) Lessee shall not, without the prior written consent of Lessor, create,
place or permit to be created or placed or allow to remain, and, subject to
SECTION 8.1, shall take such action, by bonding, deposit or payment, to remove
or satisfy of record within sixty (60) days of the placing thereof, any Lien,
voluntary or involuntary against or covering any Property, whether or not
subordinate to this Lease, other than (i) Permitted Encumbrances, (ii) Lessor
Liens and (iii) inchoate mechanics' or materialmen's liens in respect of amounts
not yet due and payable.

     (b) Notice is hereby given that Lessor shall not be liable for any
services, labor, supplies or materials furnished or to be furnished to Lessee
upon credit, and that no vendor's, mechanic's, laborer's or materialman's
statutory or similar lien for any such services, labor, supplies or materials
shall attach to or affect the reversionary or other estate or interest of Lessor
in and to any Property. Whenever and as often as any vendor's, mechanic's,
laborer's or materialmen's statutory or similar lien shall have been filed
against any Property based upon any act or interest of Lessee or of anyone
claiming through Lessee, or if any conditional bill of sale or chattel mortgage
shall have been filed for or affecting any materials, supplies, machinery or
fixtures used in the construction, repair or operation thereof or annexed
thereto by Lessee or its successors in interest, Lessee shall forthwith take
such action, by bonding, deposit or payments, as will remove or satisfy the
lien, conditional bill of sale or chattel mortgage of record.

     (c) Lessor shall not, without the prior written consent of Lessor, create,
place or permit to be created or placed or allow to remain, any Lessor Liens
voluntary or involuntary against or covering any Property.

                                       32

<PAGE>   38

     16.2 ZONING.

     Lessee will not, without the consent of Lessor, which consent Lessor may
withhold in its sole and absolute discretion, (i) initiate or support any zoning
reclassification of any Property or any part thereof, seek any variance under
existing zoning ordinances applicable to any Property or any part thereof or use
or permit the use of any Property or any part thereof in a manner which would
result in such use becoming a non-conforming use under applicable zoning
ordinances, (ii) impose any restrictive covenants or encumbrances upon any
Property or any part thereof, execute or file any subdivision plat affecting the
Premises or any part thereof or consent to the annexation of any Property or any
part thereof to any municipality or (iii) permit or suffer any Property or any
part thereof to be used by the public or any person or entity in such manner as
might make possible a claim of adverse usage or possession or of any implied
dedication or easement.

SECTION 17. SUBORDINATION AND ATTORNMENT

     17.1 SUBORDINATION AND ATTORNMENT.

     (a) Subject to SECTIONS 17.1(B) and (C), this Lease and all rights of
Lessee hereunder are and shall be subject and subordinate in all respects to the
lien of the Mortgage.

     (b) The subordination of this Lease to the lien of the Mortgage in
accordance with SECTION 17.1(A) is subject to SECTION 8 of the Participation
Agreement.

     (c) Lessor hereby notifies Lessee that this Lease may not be cancelled or
surrendered, or modified or amended so as to reduce the Basic Rent or any
Additional Rent, shorten the Term, or adversely affect in any other respect to
any material extent the rights of Lessor hereunder without the prior consent of
Agent and each Holder in each instance, except that said consent shall not be
required to the institution or prosecution of any action or proceedings against
Lessee by reason of a default on the part of Lessee under the terms of this
Lease.

     (d) The attornment provided for in SECTION 8 of the Participation Agreement
shall apply notwithstanding that, as a matter of law, this Lease may terminate
upon the foreclosure of the Mortgage, shall be self-operative and no further
instrument shall be required to give effect to such provisions. Lessee, however,
upon demand of Agent or receipt of an agreement from Agent confirming the
applicable non-disturbance provisions of this SECTION agrees to execute, from
time to time, agreements in confirmation thereof, reasonably satisfactory to
Agent and Lessee, acknowledging such attornment and setting forth the terms and
conditions of its tenancy. Nothing contained in this SECTION shall be construed
to impair any right otherwise exercisable by Agent or Lessee.

     17.2 PROVISIONS SELF-OPERATIVE.

     The provisions of this SECTION 17 for the subordination of this Lease and
the conditions of such subordination shall be self-operative and no further
instrument of subordination shall be required. In confirmation of such
subordination, Lessee shall promptly execute and deliver at its own cost and
expense any instrument reasonably acceptable to Lessee,

                                       33
<PAGE>   39

in recordable form if required, that Lessor, Agent or any of their respective
successors in interest may reasonably request to evidence such subordination.

SECTION 18. QUIET ENJOYMENT

     If and so long as the Lessee shall pay the Basic Rent and any Additional
Rent reserved by this Lease, and shall perform, observe and comply with all the
terms, covenants and conditions herein contained or set forth in the other
Operative Documents on the part of Lessee to be performed, observed and complied
with, Lessee shall quietly enjoy the Premises free from any disturbance by
Lessor or any person or entity claiming through or under Lessor, subject,
however, to the terms of this Lease. This SECTION shall not be deemed to
constitute a warranty by Lessor of title to the Property.

SECTION 19. ESTOPPEL CERTIFICATE

     Lessor and Lessee agree at any time and from time to time upon ten (10)
days' prior notice from the requesting party, to execute, acknowledge and
deliver to the requesting party and to such other persons and entities as such
requesting party may designate, a statement certifying (i) that this Lease is
unmodified and in full force and effect, or if there have been modifications,
that the Lease is in full force and effect as modified and stating the
modifications, (ii) the date to which the Basic Rent has been paid, (iii) that
all Additional Rent that is due and payable on or before such date has been paid
in full, (iv) that to the best of the certifying party's knowledge, the
requesting party is not in default in observing, performing or complying with
any term, covenant or condition contained in this Lease on such party's part to
be observed, performed or complied with or, if the certifying party has
knowledge of any such default, specifying each such default, (v) that the
certifying party has not made and does not have any claim against the requesting
party under this Lease or, if so, the nature and the dollar amount, if any, of
such claim, (vi) that there do not exist any offsets, defenses or counterclaims
against enforcement of any of the terms, covenants or conditions of this Lease
to be observed, performed or complied with on the part of the requesting party,
or, if so, specifying the same and the dollar amount thereof and (vii) in the
case of a request by Lessor, such further information with respect to this Lease
or the Premises as Lessor may reasonably request, it being intended that any
such statement delivered pursuant to this SECTION shall be binding on the
certifying party and may be relied upon by the requesting party and any designee
of the requesting party, including, without limitation, any prospective
purchaser of the Premises, any mortgagee or prospective mortgagee of the
Premises, or any lessor or prospective lessor under any underlying lease of the
Premises or any assignee or prospective assignee of any such mortgagee or
lessor.

SECTION 20. BROKERAGE

     Lessee represents and warrants that neither Lessee nor any employee,
representative or agent of Lessee has dealt with any broker in connection with
the lease of the Premises to Lessee except as set forth on SCHEDULE 3 attached
hereto. Lessee shall indemnify and hold harmless Lessor from and against any and
all Claims resulting from any claim that may be made against Lessor or the
Premises by any party named on SCHEDULE 3 attached hereto or as a result of a
breach by Lessee of its representation and warranty contained in this SECTION.

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<PAGE>   40

Lessor shall have no liability for any compensation, commission or other fee
arising out of any sublease by Lessee. This provision shall survive the
expiration or any termination of this Lease.

SECTION 21. NOTICES

     All notices and other communications provided for under this Lease shall be
in writing and shall be delivered in the manner provided in the Participation
Agreement.

SECTION 22. ENTIRE AGREEMENT; NO WAIVER

     22.1 ENTIRE AGREEMENT.

     This Lease, along with the other Operative Documents, contains all the
covenants, representations, warranties and conditions made by or between the
parties hereto and any and all other prior agreements and understandings
(whether oral, written or otherwise) are superseded by this Lease.

     22.2 NO WAIVER.

     The receipt of rent by Lessor, with knowledge of any breach of this Lease
by Lessee or of any default on the part of Lessee in the observance, performance
or compliance with any of the terms, covenants or conditions of this Lease,
shall not be deemed to be a waiver of any of the terms, covenants or conditions
of this Lease. No failure on the part of Lessor to enforce any term, covenant or
condition herein contained, nor any waiver of any right thereunder by Lessor,
unless in writing, shall discharge or invalidate such term, covenant or
condition, or affect the right of Lessor to enforce the same in the event of any
subsequent breach or default. The receipt by Lessor of any rent or any other sum
of money or any other consideration hereunder paid by or on behalf of Lessee
after the expiration or termination, in any manner, of this Lease, or after the
giving by Lessor of any notice hereunder to effect such termination, shall not
reinstate, continue or extend the Term or destroy or in any manner impair the
efficacy of any such notice of termination as may have been given hereunder by
Lessor to Lessee prior to the receipt of any such sum of money or other
consideration, unless so agreed to in writing and signed by Lessor. Neither
acceptance of the keys nor any other act or thing done by Lessor or any
employee, agent or representative of Lessor during the Term shall be deemed to
be an acceptance of a surrender of the Premises, excepting only an agreement in
writing signed by Lessor accepting or agreeing to accept such a surrender.

SECTION 23. END OF TERM

     23.1 SURRENDER.

     (a) If Lessee shall make an election pursuant to SECTION 33.1(A)(II) and
satisfies the conditions precedent set forth herein to such election then Lessee
shall, on or before the last day of the Term or on the sooner termination of
this Lease, peaceably and quietly leave, surrender and yield up unto Lessor all
and singular the Property, in good condition, reasonable wear and tear excepted,
free of tenancies, broom-clean, including, without limitation, all Fixtures,
excluding, however, (i) all movable furniture, movable personal property,
movable trade fixtures and movable equipment which were not purchased or
installed partially or entirely

                                       35
<PAGE>   41

with the proceeds of Advances or at the expense of Lessor and (ii) all fixtures
and personal property which (A) were not financed partially or entirely with the
proceeds from Advances and Lessor Investment and are not necessary for the
operation of the Property consistent with the standards of Comparable Buildings
and (B) can be removed without causing damage to the remaining portion of the
Premises or, although their removal would cause damage to the remaining portion
of the Premises, are removed by Lessee only upon Lessee's repairing the
remaining portion of the Premises to the reasonable satisfaction of Lessor. All
property removable pursuant to the provisions of this SECTION 23 which shall not
be removed by Lessee on or before the date when Lessee shall vacate and
surrender the Premises shall be conclusively deemed abandoned by Lessee and
Lessor shall have no liability to Lessee as a result of Lessor's handling,
removal, storage or disposal of the same. Lessee shall reimburse Lessor, on
demand, for any costs incurred by Lessor in connection with such handling,
removal, storage or disposal. If the Premises are not surrendered at the end of
the Term, Lessee shall make good to Lessor any actual damage which Lessor shall
suffer by reason thereof.

     (b) If the expiration or termination of this Lease shall result in the
creation of any obligation of Lessor or Lessee under Applicable Laws to (i) make
any filings, submissions or applications to any governmental or
quasi-governmental agency in connection with any Environmental Activity at the
affected Property, (ii) undertake any studies, inspections, assessments or tests
with respect to the potential presence of Hazardous Materials at such Property,
(iii) obtain any approvals of any such governmental or quasi-governmental agency
of the cessation of Lessee's occupancy or operations at such Property, (iv)
undertake any remediation, cleanup or removal action with respect to any
Hazardous Materials at, on or under such Property, or (v) take any other action
(including, without limitation, the provision of financial assurances for the
performance of any of the aforementioned obligations) with respect to any
Environmental Activity or to the presence or alleged presence of Hazardous
Materials on, at or under the Property, any and all such obligations shall be
performed by Lessee in compliance with all Applicable Law.

     (c) In the event that Lessee remains in possession of any Property after
the expiration or earlier termination of this Lease, and without Lessor's
consent, Lessee shall be deemed to be occupying the Property as a tenant at
sufferance. Any such occupancy by Lessee shall be subject to all the terms,
covenants and conditions of this Lease insofar as the same are applicable to
such a tenancy except Lessee shall pay on the first day of each month of the
holdover period an amount equal to the higher of (i) 150% of one-twelfth of the
sum of Basic Rent and Additional Rent payable by Lessee during the last year of
the Term and (ii) the fair market rental value of such Property at such time, as
estimated by a consultant retained by Lessor. The provisions of this SECTION
23.1(C) shall not be deemed to grant to Lessee the right to, or otherwise be
deemed to, extend the Term beyond the expiration or earlier termination of this
Lease. Neither the payment by Lessee to Lessor nor the acceptance by Lessor from
Lessee of any amount in payment for Lessee's occupancy of such Property beyond
the expiration or earlier termination of this Lease shall (A) be deemed to
convert Lessee's occupancy into any interest other than a tenancy at sufferance,
(B) revoke or otherwise impair the validity of any notice to quit or ejectment
notice or proceeding that Lessor may have served or commenced or (C) prohibit or
otherwise impair Lessor's right to immediately obtain an order of ejectment
against Lessee. Lessee irrevocably waives the benefit of any and all Applicable
Laws that grant to Lessee any rights inconsistent with the provisions of this
SECTION 23.1(C).

                                       36
<PAGE>   42

     23.2 SURVIVAL.

     The provisions of this SECTION 23 shall survive the expiration or earlier
termination of this Lease.

SECTION 24. SIGNS

     Lessee may, during the Term, upon obtaining any and all necessary permits
from governmental authorities, and subject to the provisions of this Lease,
including, but not limited to, SECTION 15 hereof, paint or erect and maintain,
at its cost and expense, signs of such dimensions and materials as it may
reasonably deem appropriate in or about the Premises, provided that the same are
consistent with the maintenance of each Property in accordance with prudent
industry practice and in a manner consistent with that of other similar
properties owned or operated by Lessee or its Affiliates. Lessee shall, at its
sole cost and expense, remove any and all such signs prior to the expiration or
sooner termination of the Term.

SECTION 25. CONVEYANCE BY LESSOR

     The term "LESSOR" as used in this Lease means only the owner for the time
being of the Premises or of the lessee's interest under any underlying lease (as
the case may be), so that, in the event of any transfer of said interest in
accordance with this SECTION, the transferor shall be and hereby is entirely
freed and relieved of all covenants and obligations of Lessor hereunder, except
any such obligations accrued prior to the date of transfer, and it shall be
deemed and construed, without further agreement between the parties or between
the parties and the transferee of the Premises or of the lessee's interest under
any underlying lease (as the case may be), that such transferee has assumed and
agreed to carry out any and all covenants and obligations of Lessor hereunder
accruing from and after the date of such transfer, subject to the release of
such transferee from the obligations of Lessor hereunder upon any further
transfer of the interest of Lessor. Lessor may freely transfer its interest in
the Premises and this Lease to any successor Lessor at any time, subject to
Lessee's rights under this Lease.

SECTION 26. NO MERGER

     There shall be no merger of this Lease or of the leasehold estate hereby
created with any other interest or estate in the Premises by reason of the fact
that the same person acquires or holds, directly, this Lease or the leasehold
estate hereby created or any interest herein or in such leasehold estate as well
as any other interest or estate in the Premises.

SECTION 27. MISCELLANEOUS

     27.1 SECTION HEADINGS.

     The Section headings in this Lease are inserted only as a matter of
convenience in reference and are not to be given any effect whatsoever in
construing any provision of this Lease.

                                       37
<PAGE>   43

     27.2 SUCCESSORS AND ASSIGNS.

     The covenants and agreements contained in this Lease shall apply to, inure
to the benefit of, and be binding upon the parties hereto and upon their
respective successors and assigns, except as expressly otherwise herein
provided.

     27.3 AMENDMENT.

     No waiver or consent under this Lease nor any amendment, modification or
other change in the terms, covenants or conditions hereof shall be effective
unless the same shall be in writing and signed by the party against whom
enforcement of such waiver, consent, amendment, modification or change is sought
and such waiver, consent, amendment, modification or other change is granted or
entered into in accordance with the terms of SECTION 11.1 of the Participation
Agreement.

     27.4 INVALIDITY.

     If any term, covenant or condition of this Lease or any portion of any
term, covenant or condition hereof or the application thereof to any person,
entity or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term, covenant or condition
or portion thereof to persons, entities and circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, and
each term, covenant and condition of this Lease and each portion thereof shall
be valid and be enforced to the fullest extent permitted by law.

     27.5 CONSTRUCTION.

     This Lease shall not be construed more strictly against one party than
against the other merely by virtue of the fact that it may have been prepared by
counsel for one of the parties, it being recognized that both Lessor and Lessee
have contributed substantially and materially to the preparation of this Lease.

     27.6 COUNTERPARTS.

     This Lease may be executed in counterparts, each of which shall be deemed
to be an original, but all of which together shall constitute one and the same
instrument.

     27.7 LIMITATIONS ON AMOUNTS PAYABLE.

     Notwithstanding anything to the contrary contained in this Lease or any of
the other Operative Documents, the amounts which the Lessee is obligated to pay
pursuant to this Lease and the other Operative Documents, and the amounts which
Lessor, Agent and the Noteholders are entitled to receive pursuant to this Lease
and other Operative Documents, are subject to limitations pursuant to SECTION
11.14 of the Participation Agreement.

                                       38
<PAGE>   44

SECTION 28. SUBMISSION TO JURISDICTION; GOVERNING LAW

     With respect to each Property, this Lease shall be governed by the law of
the State in which such Property is located. Without limiting the right of
Lessor or Lessee to bring any suit, proceeding or other legal process against
the other arising under this Lease or from the commercial relationship between
Lessor and Lessee relating to this transaction (an "ACTION") in the courts of
other jurisdictions, Lessor and Lessee each hereby irrevocably (a) submits now
and in the future to the jurisdiction of the courts of competent jurisdiction in
the State in which the Property giving rise to such dispute is located, (b)
agrees that any Action may be heard in any such court, (c) waives the defense of
an inconvenient forum to the maintenance of any Action in any such court and (d)
agrees to be subject to suit, service and legal process of such courts in
connection with any Action.

SECTION 29. PERFORMANCE REQUIRED OF LESSOR

     If, under Applicable Laws, Lessor is required to make any payment or
perform any obligation which is the responsibility of Lessee under the other
terms, covenants and conditions of this Lease, Lessor shall pay or perform the
same on Lessee's behalf, at Lessee's sole expense, provided that (i) Lessee
shall request that Lessor pay or perform the same on Lessee's behalf not less
than fifteen (15) Business Days prior to the date on which such payment or
performance is required, (ii) a reasonable time, but in any case not less than
five (5) Business Days, prior to the date on which such payment or performance
is required, Lessee shall deposit with Lessor, in immediately available funds,
all amounts that are required for such payment or performance and (iii) Lessee
shall reimburse Lessor for any and all reasonable and documented costs and
expenses paid or incurred by Lessor in connection with such payment or
performance promptly, but in any case within five (5) Business Days, after
rendition of a bill therefor by Lessor, as Additional Rent. The provisions of
this SECTION 29 shall not be deemed to modify, limit or otherwise alter the
obligation of Lessee to perform, observe and comply with the obligations imposed
upon Lessee by the other terms, covenants and conditions of this Lease.

SECTION 30. OPERATING LEASE

     The Lessor and Lessee hereby declare that it is their mutual intent that
for accounting purposes this Lease be treated as an operating lease and not an
instrument or evidence of indebtedness, and that the relationship between Lessor
and Lessee under this Lease shall be that of lessor and lessee only. Title to
and ownership of each Property shall at all times remain in Lessor and at no
time become vested in Lessee except in accordance with an express provision of
this Lease. Lessee does not hereby acquire any right, equity, title or interest
in or to the Premises except pursuant to the terms hereof. Lessor covenants that
it will not take any tax position inconsistent with the treatment of this Lease
as a Financing, and it is indeed the intent of the parties hereto that this
Lease be treated as a financing for tax purposes.

SECTION 31. OFFER TO PURCHASE

     31.1 DELIVERY BY LESSEE.

     (a) At any time during the Term so long as (i) this Lease shall not have
been terminated, (ii) Lessee shall not have previously exercised its options
pursuant to SECTION 33.1

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<PAGE>   45

hereof and (iii) Lessee shall simultaneously exercise its option to purchase the
Land demised under the Freezer Lease in accordance with the terms of the Freezer
Lease, Lessee may (unless otherwise required to do so, in which case it shall)
deliver to Lessor notice offering to purchase all but not less than all of the
Premises upon and subject to the applicable Lease terms (an "OFFER TO
PURCHASE").

     (b) Any Offer to Purchase delivered or deemed to be delivered by Lessee
hereunder (including, without limitation, under SECTIONS 10, 31 and 33 hereof)
shall, notwithstanding anything to the contrary set forth therein, be
irrevocable and unconditional and shall set forth the Termination Value (as
defined in SCHEDULE 2 attached hereto) to be paid by Lessee. Any such Offer to
Purchase may specify a designee of Lessee to which the Premises shall be
transferred; provided, however, that Lessee shall remain obligated for the
payment of the Termination Value for the Premises and other sums then due and
payable hereunder relating to the Premises up to and including such Acquisition
Date and all other obligations of Lessee hereunder and under the other Operative
Documents regardless of any such designation and any transfer of the Premises to
such designee.

     31.2 ACCEPTANCE BY LESSOR.

     Lessor shall be deemed to have accepted such Offer to Purchase the Premises
on the date Lessor receives the same, notwithstanding any action of Lessor to
the contrary at such time. The procedure for the purchase of the Premises and
the purchase price therefor shall be governed by SECTION 32 hereof.

SECTION 32. PROCEDURE UPON PURCHASE

     32.1 ACQUISITION DATE.

     The date of the closing of the Lessee's purchase of the Premises (the
"ACQUISITION DATE") shall be (i) on the Expiration Date pursuant to SECTION 33
hereof or (ii) if Lessee shall deliver (or shall be deemed to have delivered) an
Offer to Purchase pursuant (x) to SECTION 10 hereof, on the date provided in
SECTION 10.3 hereof (i.e., the Termination Date) or (y) to SECTION 31 hereof, on
the next Payment Date occurring at least five (5) days after Lessee's delivery
of such Offer to Purchase. On the Acquisition Date, Lessee shall pay to Lessor
an amount equal to the Termination Value for the Premises, together with all
Basic Rent, any Additional Rent, Breakage Costs, Closing Costs, transfer and
recordation taxes and other sums then due and payable hereunder relating to the
Premises up to and including the Acquisition Date, and, upon receipt of such
payment, Lessor shall convey, or cause to be conveyed, the Premises (or, in the
case of Casualty, the remaining portion thereof or assign the rights to any
unpaid Casualty Proceeds) to Lessee or its designee by an appropriate recordable
deed, containing no representation or warranty (expressed or implied) except (1)
that the Premises are free and clear of any Lessor Liens (except as consented to
in writing or created or caused by the Lessee and except as to any interest
created by Lessor upon the exercise of any right hereunder upon any Lease Event
of Default or upon the delivery of a Termination Notice) and (2) Lessor shall
provide customary representations with respect to its valid existence and
authority to execute and deliver such deed.

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<PAGE>   46

     32.2 OBLIGATIONS SURVIVING TERMINATION.

     Upon the completion of any purchase of the Premises pursuant to this
SECTION 32, but not prior thereto, this Lease shall terminate except with
respect to obligations and liabilities of the Lessee actual or contingent which
have arisen with respect to the Premises on or prior to such date of purchase,
and except as elsewhere expressly provided herein. Such termination
notwithstanding, (a) all indemnification obligations of Lessee set forth in this
Lease or in the other Operative Documents shall continue in full force and
effect and (b) Lessee and Lessor shall cooperate in all reasonable respects and
shall execute such additional agreements or documents as shall be necessary to
effect such sale of the Premises to Lessee, in each case, at Lessee's sole cost
and expense.

SECTION 33. LESSEE'S OPTIONS UPON EXPIRATION

     33.1 LESSEE'S OPTIONS.

     (a) In addition to its rights under SECTIONS 10 and 31 hereof, Lessee shall
elect either (i) by notice given not less than twelve (12) months prior to the
Expiration Date to purchase all, but not less than all, of the Premises on the
Expiration Date in accordance with the procedures set forth in SECTION 32
hereof; (ii) subject to the satisfaction of the conditions set forth in SECTION
33.1(B) below, by notice given not less than twelve (12) months prior to the
Expiration Date, to surrender the Premises as of the Expiration Date and pay
Lessor on the Expiration Date, in addition to any Basic Rent, Additional Rent
and any other amounts then due and payable to the Lessor hereunder a residual
guaranty payment for each Property included within the Premises in an amount
equal to the aggregate principal amount of the A-Note Advances made with respect
to such Property then outstanding (collectively, the "RESIDUAL GUARANTY
AMOUNT"); or (iii) subject to the conditions set forth in SECTION 33.3 hereof,
by notice given not less than twelve (12) months prior to the Expiration Date,
to request an extension of the Lease for the Extended Term with respect to all,
but not less than all, of the Premises; or (iv) by notice given not less than
twelve (12) months prior to the Expiration Date, sell the Premises on behalf of
Lessor.

     (b) Any election by Lessee to surrender the Premises pursuant to SECTION
33.1(A)(II) hereof shall be subject to the satisfaction by Lessee of the
following conditions precedent:

          (i) Lessor and Agent shall have received at least thirty (30) but not
     more than sixty (60) days prior to the Expiration Date, at the sole cost
     and expense of Lessee, an environmental audit performed by the
     Environmental Consultant of the Premises, together with a copy of the
     Environmental Consultant's report on its audit, the scope of which audit
     and report, and condition of each Property as evidenced by such report
     shall be satisfactory, in form and substance (irrespective of each
     Property's compliance with any and all Applicable Laws), to Agent, Lessor
     and the Holders of the B-Notes, in each case in their sole discretion;

          (ii) Lessor and Agent shall have received at least thirty (30) but not
     more than sixty (60) days prior to the Expiration Date, at the sole cost
     and expense of Lessee, a

                                       41
<PAGE>   47

     report of the Appraiser and/or the Independent Engineer, satisfactory in
     form and substance to Lessor, Agent and the Holders of the B-Notes, in each
     case in their sole discretion, to the effect that the Premises have been
     maintained in accordance with the terms and conditions of this Lease and
     that the Premises meet or exceeds the original design specifications and
     are capable of operating as a multi-purpose facility (including offices,
     food processing area, commissary and parking area), or as a restaurant, as
     applicable with the original design capacity or occupancy and with respect
     to the Restaurant Properties, with the useful life contemplated by and in
     accordance with the Approved Plans and applicable zoning laws;

          (iii) Lessee shall have arranged for an ALTA form of extended coverage
     owner's title insurance policy, or a commitment therefor, issued by the
     Title Underwriter, marked "premium paid" (the "EXPIRATION TITLE POLICY") in
     an aggregate amount equal to the total Project Costs of the Premises and in
     form and substance satisfactory to the Holders of the B-Notes and Counsel
     to Lessor, to be delivered to the Holders of the B-Notes and Counsel to
     Lessor, together with copies of all documents relating to title exceptions
     referred to therein, showing record title in Lessor. The Expiration Title
     Policy shall insure that Lessor has a good and marketable fee title to each
     Property, subject only to Permitted Encumbrances, and shall contain such
     endorsements as any purchaser or its counsel may request;

          (iv) Lessee may and, if directed to do so by Lessor or Agent Lessee
     shall, remove or cause the removal, of, at Lessee's sole expense, any
     inventory, fixtures, machinery, equipment or other property belonging to
     Lessee or third parties in compliance with SECTION 23 hereof;

          (v) if directed to do so by Lessor, Lessee shall execute and deliver
     any and all further agreements and documents as may, in the reasonable
     opinion of Lessor, be necessary to confirm the termination and expiration
     of this Lease and to acknowledge that Lessee, from the date of termination
     and expiration, ceases to have any interest in the Premises; provided such
     further agreements or documents do not increase in any material respect
     Lessee's obligations from those set forth in this Lease;

          (vi) each Property shall have all required Permits and be in
     conformity with all Applicable Laws; provided, however, that in the event
     that Applicable Law requires that any work be conducted or other action
     taken with respect to the Property but permits compliance to be effected
     over a period extending beyond the Expiration Date, Lessee shall
     nonetheless complete such compliance prior to surrender of the Premises;
     and

     (c) Any election by Lessee to sell the Premises on behalf of Lessor
pursuant to SECTION 33.1(A)(IV) shall be in accordance with the following:

          (i) the sale of the Premises shall be arranged as soon as practicable
     upon notice to Lessor of Lessee's election and the consummation of such
     sale shall occur on the date on which this Lease expires;

                                       42
<PAGE>   48

          (ii) all proceeds realized from the sale of the Premises shall be for
     the account of Lessor; provided, however, that Lessor shall remit to Lessee
     any net proceeds in excess of the then applicable Termination Value;

          (iii) All out-of-pocket costs and expenses incurred in connection with
     the marketing and sale of the Premises shall be paid from the proceeds of
     such sale provided, however, that no portion of such proceeds shall be used
     to reimburse Lessee for any costs or expenses other than out-of-pocket
     costs and expenses paid to third parties that are not Affiliates of Lessee.

          (iv) this Lease shall remain in effect until the consummation of the
     sale of the Premises;

          (v) Lessee shall be obligated to pay to Lessor the difference between
     the sales proceeds and the Termination Value, if the Termination Value is
     greater than the net sales proceeds, up to (but not exceeding) the Residual
     Guaranty Amount or, in the event that Lessee uses its best efforts to sell
     the Properties but no bona fide bids are received the Lessee shall pay to
     the Lessor the Residual Guaranty Amount and surrender the Properties to
     Lessor; and

          (vi) the Properties shall be in good condition, reasonable wear and
     tear excepted and shall conform to all regulatory requirements imposed by
     any governmental body and be in compliance with any additional return
     standards set forth in SECTION 23.1 of this Lease.

          (d) anything to the contrary provided herein notwithstanding Lessor
     shall have the right to refuse any sale of the Properties if the net
     proceeds of such sale will not be equal to or greater than the difference
     between the aggregate Termination Value for the Properties and the Residual
     Guaranty Amount.

     33.2 LESSOR RIGHT TO SELL.

     Upon Lessee's election to surrender the premises pursuant to and in
compliance with SECTION 33.1 hereof, Lessor shall have the sole and exclusive
right to sell or dispose of the Premises and, as of the Expiration Date, Lessee
shall have no further claim thereto. The proceeds of any sale or disposition of
the Premises pursuant to this SECTION 33 (a "QUALIFIED SALE") shall be applied
by the Lessor as follows: first, to pay all Closing Costs in connection with the
Qualified Sale; and second, as provided in the Intercreditor Agreement.

     33.3 EXTENDED TERM.

     Lessee shall have the right, exercisable by giving notice to Lessor at
least fourteen (14) months prior to the Expiration Date, to request that the
Lessor extend this Lease for an additional term (the "FIRST EXTENDED TERM") for
one period of five (5) years from the Expiration Date. Lessee shall also have
the right, exercisable by giving notice to Lessor at least fourteen (14) months
prior to the expiration of the First Extended Term to request that the Lessor
extend this Lease for an additional term (the "SECOND EXTENDED TERM") for one
period of five (5) years from the expiration of the First Extended Term. The
Lessor, the Agent, the

                                       43
<PAGE>   49

Noteholders may agree to extend this Lease pursuant to a request given under
this SECTION 33.3, each in its sole discretion, and upon the mutual agreement of
Lessor, Lessee, Agent and such Noteholder as to the term of the extension, the
amounts and dates of payment of Basic Rent for each additional term, and upon
Lessee undertaking to enter into all amendments and supplements to the Operative
Documents and such other agreements as the Lessor in its sole discretion
determines to be necessary and appropriate in connection therewith. Within
forty-five (45) days of receipt of Lessee's request to extend this Lease
pursuant to this SECTION 33.3, Lessor shall give notice to the Lessee as to
whether or not such an extension has been granted. In the event that Lessor or
any Noteholder does not agree to extend this Lease or any such Person has not
responded by the date that is twelve (12) months prior to the Expiration Date
and Lessee has not otherwise elected to return the Premises in accordance with
SECTION 33.1(II) hereof, Lessee shall be deemed to have made an election
pursuant to SECTION 33.1(A)(I) hereof.

     33.4 DEEMED ELECTION.

     If Lessee or any assignee thereof (to the extent permitted under the
Participation Agreement) under any provision comparable to this SECTION 33
contained in any lease with Lessor then in effect is unable to satisfy one or
more of the conditions set forth in SECTION 33.1(B) hereof, or such comparable
provision, as the case may be, or fails to elect either (i), (ii) or (iii) under
SECTION 33.1(A) hereof, or such comparable provision, as the case may be, Lessee
shall be deemed to have elected to proceed under SECTION 33.1(A)(I) hereof, in
which case Lessee shall purchase the Premises pursuant and in accordance with
said SECTION 33.1(A)(I).

SECTION 34. LIMITATION OF LESSOR LIABILITY

     34.1 INCORPORATION OF PROVISIONS OF PARTICIPATION AGREEMENT.

     The provisions of SECTION 11.11 of the Participation Agreement with respect
to the liability of Lessor are incorporated herein by reference as if fully set
forth herein.

SECTION 35. SPECIAL PROVISIONS FOR HQ PROPERTY

     35.1 HQ EXPANSION.

     In the event that Lessee elects to conduct the HQ Expansion with respect to
the HQ Property, Lessee will provide not less than 30 days' prior notice to
Lessor of such election; provided, however, that Lessee shall not undertake the
HQ Expansion if the projected Final Completion of the HQ Expansion would occur
later than the Commitment Expiration Date for the HQ Property. The provisions of
SECTION 15 hereof notwithstanding, Lessee shall have the right to effect the HQ
Expansion subject to the terms and conditions of this SECTION 35.

     35.2 HQ EXPANSION LEASE.

     Prior to the commencement of construction of the HQ Expansion, Lessee shall
(i) execute and deliver to Lessor a revised Lease Supplement with respect to the
HQ Property and (ii) otherwise satisfy the conditions set forth in SECTION 4.5
of the Participation Agreement with respect to HQ Expansion Advances. The
revised Lease Supplement for the HQ Property shall

                                       44
<PAGE>   50

establish a Substantial Completion Date and Final Completion Date for the HQ
Expansion. From and after the execution by Lessor of such revised Lease
Supplement until the end of the Construction Period for the HQ Expansion, the
Improvements comprising HQ Expansion (the "HQ EXPANSION PROPERTY") and the
remainder of the HQ Property shall constitute separate Properties for purposes
of this Lease and the other Operative Documents. For example, the limitations
set forth in the Participation Agreement on the liability of Lessee and
Construction Agent shall apply to the HQ Expansion Property during the
Construction Period therefor but not to the remainder of the HQ Property and the
Basic Rent attributable to the HQ Expansion Property shall not commence until
the end of the Construction Period for the HQ Expansion Property.

                           [SIGNATURES ON NEXT PAGE.]

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<PAGE>   51

     IN WITNESS WHEREOF, the parties hereto have duly executed this Lease as of
the day and year first above written.

                                       FIRST AMERICAN BUSINESS CAPITAL, INC.

                                       By: /s/ Mary Buckner
                                          ----------------------------------
                                       Name: Mary Buckner
                                       Title: Senior Vice President

                                       O'CHARLEY'S INC.

                                       By: /s/ A. Chad Fitzhugh
                                          ----------------------------------
                                       Name: A. Chad Fitzhugh
                                       Title: Treasurer

                                       46
<PAGE>   52

                                   SCHEDULE 2

                                Termination Value

     The Termination Value for the entire Premises at any time shall be an
amount equal to the sum of all unpaid principal at such time under the Notes
issued pursuant to the Participation Agreement with respect to the Premises plus
the amount of any unpaid Lessor Investment, less the purchase price paid by
Lessee to Lessor for the purchase of the Freezer Land, if applicable, in
connection with the exercise of Lessee's option to purchase such Land pursuant
to the Freezer Lease.

     For purposes of a Casualty under SECTION 10 of the Lease, the Termination
Value for any particular Property at any time shall be equal to the aggregate
principal amount of all Advances under the Participation Agreement in connection
with the acquisition and improvement of the applicable Property plus the Lessor
Investment that has been invested in connection with to such Property, less the
purchase price, if any, paid with respect to the purchase of the Freezer Land.

                                       50

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