Document:

exv10w18

Exhibit 10.18

MODIFICATION OF PROMISSORY NOTE AND LOAN AGREEMENT

THIS MODIFICATION OF PROMISSORY NOTE AND LOAN AGREEMENT is made and entered into on November

28, 2007 by and between SUMMIT HOTEL PROPERTIES, LLC, a South Dakota limited liability company

(“Borrower”), and ING LIFE
INSURANCE AND ANNUITY COMPANY, a Connecticut corporation (“Lender”).

WITNESSETH:

          WHEREAS, Lender made a loan (the “Loan”) to Borrower evidenced by that certain Promissory Note
dated June 15, 2006 made by Borrower to the order of Lender in the original principal amount of
$36,600,800.00 (the “Note”); and

          WHEREAS, to further evidence the Loan Borrower and Lender entered into that certain Loan
Agreement dated June 15, 2006, as modified by First Modification of Loan Agreement dated April 24,
2007 (collectively, the “Loan Agreement”);

          WHEREAS, Borrower and Lender desire to amend the Note and the Loan Agreement as hereinafter
set forth;

          NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein
contained and TEN AND NO/100 DOLLARS ($10.00), and other good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, Borrower and Lender, intending
to be legally bound, agree that the Note and the Loan Agreement are modified as follows:

     1. The Note is hereby modified as follows. Notwithstanding anything in the Note to the
contrary, from and after the date hereof the Note shall be repaid by Borrower to Lender as follows:

          (a) On December 1, 2007, a payment of $262,912.81 shall be due and payable, which shall be
applied first to accrued and unpaid interest and the remainder to the outstanding principal amount
of the Note; and

          (b) Thereafter, payments of principal and interest shall be made in successive monthly
installments commencing on January 1, 2008, and continuing on the first day of each and every
calendar month thereafter up to and including July 1, 2012, all but the final installment thereof
to be in the amount of Two Hundred Forty-Three Thousand Three Hundred Twenty-Eight and 52/100
Dollars ($243,328.52), and the final installment payable on July 1, 2012, to be in the full amount
of outstanding principal of this Note, interest and all other sums remaining unpaid hereunder and
under the Mortgage (as in the Note).

     2. The Loan Agreement is hereby modified to delete the chart appearing in Section 3.07(i) in
its entirety and insert in its place the following:

[MODIFICATION OF PROMISSORY NOTE

AND LOAN AGREEMENT]

ING No. 27924

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	PRINCIPAL	 	 	ALLOCATION	 	 	RELEASE	 
	 	 	PROPERTY	 	ALLOCATION	 	 	PERCENTAGE	 	 	FACTOR	 
	(1)	 	Comfort Inn
	 	$	3,170,287.75	 	 	 	9.7544673746941500	%	 	 	110	%
	 	 	2120 Burnham Road

Fort Smith, Arkansas
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(2)	 	Hampton Inn
	 	$	5,390,417.41	 	 	 	16.5854505946194000	%	 	 	120	%
	 	 	8219 West Jefferson Blvd.

Fort Wayne, Indiana
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(3)	 	Courtyard by Marriott
	 	$	5,464,102.75	 	 	 	16.8121685721773000	%	 	 	125	%
	 	 	4559 North Reserve St.

Missoula, Montana
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(4)	 	Comfort Inn
	 	$	2,244,914.73	 	 	 	6.9072429032856400	%	 	 	110	%
	 	 	4545 North Reserve St.

Missoula, Montana
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(5)	 	Hawthorn Suites
	 	$	5,366,493.60	 	 	 	16.5118408616461000	%	 	 	120	%
	 	 	975 North Lakeview Pkwy.

Vernon Hills, Illinois
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(6)	 	Hampton Inn
	 	$	5,610,516.47	 	 	 	17.2626601379741000	%	 	 	125	%
	 	 	9231 East Arapahoe Rd.

Greenwood Village, Colorado
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(7)	 	Comfort Suites
	 	$	2,770,281.62	 	 	 	8.5237126393800300	%	 	 	120	%
	 	 	10680 South Automall Dr.

Sandy, Utah
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(8)	 	Fairfield Inn
	 	$	2,483,865.76	 	 	 	7.6424569162232900	%	 	 	125	%
	 	 	2697 Lake Vista Drive

Lewisville, Texas
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL PRINCIPAL OUTSTANDING	 	$	32,500,880.10	 	 	 	100.000	%	 	 	 	 

	3.	 	Except as expressly modified hereby, the Note and Loan Agreement shall
remain in full force and effect, Borrower and Lender hereby ratifying
and affirming the same.

[SIGNATURES BEGIN ON FOLLOWING PAGE]

[MODIFICATION OF PROMISSORY NOTE

AND LOAN AGREEMENT]

ING No. 27924

2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Modification to be executed as of the
day and year first above-written.

	 	 	 	 	 
	 	BORROWER:

SUMMIT HOTEL PROPERTIES, LLC, 

a South Dakota limited liability company

 	 
	 	By:  	/s/ Christopher D. Bills
 	 
	 	 	Christopher D. Bills,  	 
	 	 	Chief Financial Officer 	 
	 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

[MODIFICATION OF PROMISSORY NOTE

AND LOAN AGREEMENT]

ING No. 27924

3

 

[SIGNATURES CONTINUED FROM PRECEDING PAGE]

	 	 	 	 	 
	 	LENDER:	 
	 	 	 
	 	ING LIFE INSURANCE AND ANNUITY COMPANY, 

a Georgia corporation

 	 
	 	By:  	ING Investment Management LLC, as Authorized Agent
 	 
	 

					
	 	
 	 
	 	By:  	/s/ Daniel M. Siegenthaler
 	 
	 	 	Name:  	Daniel M. Siegenthaler 	 
	 	 	Title:  	Vice President 	 
	 

[MODIFICATION OF PROMISSORY NOTE

AND LOAN AGREEMENT]

ING No. 27924

4exv10w19

Exhibit 10.19

LOAN AGREEMENT

     THIS LOAN AGREEMENT (this “Agreement”) is made as of April 30, 2007 (the “Closing Date”), by
and between GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Lender”), and SUMMIT
HOTEL PROPERTIES, LLC, a South Dakota limited liability company (“Borrower”).

AGREEMENT:

     In consideration of the mutual covenants and provisions of this Agreement, the parties agree
as follows:

     1. Definitions. The following terms shall have the following meanings for all purposes of this
Agreement:

     “ADA” means the Americans with Disabilities Act of 1990, as such act may be amended from time
to time.

     “Affiliate” means any Person that directly or indirectly controls, is under common control
with, or is controlled by any other Person. For purposes of this definition, “controls”, “under
common control with” and “controlled by” mean the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of such Person, whether through
ownership of voting securities or otherwise.

     “Amended and Restated Note” means the amended and restated note to be executed by Borrower in
the form attached to this Agreement as Exhibit B. The Amended and Restated Note shall amend and
restate the Note in its entirety and shall be executed by Borrower as of the date of the Final
Disbursement.

     “Anti-Money Laundering Laws” means all applicable laws, regulations and government guidance on
the prevention and detection of money laundering, including 18 U.S.C. § § 1956 and 1957, and the
BSA.

     “Applicable Regulations” means all applicable statutes, regulations, rules, ordinances, codes,
licenses, permits, orders and approvals of each Governmental Authority having jurisdiction over the
Premises, including, without limitation, all health, building, fire, safety and other codes,
ordinances and requirements, all applicable standards of the National Board of Fire Underwriters
and the ADA and all policies or rules of common law, in each case, as amended, and any judicial or
administrative interpretation thereof, including any judicial order, consent, decree or judgment
applicable to any of the Borrower Parties.

     “Architect’s Agreement” has the meaning set forth in the Disbursement Agreement.

     “Borrower’s Architect” has the meaning set forth in the Disbursement Agreement.

     “Borrower Parties” means, collectively, Borrower and any guarantors of the Loan (including, in
each case, any predecessors-in-interest).

     “BSA” means the Bank Secrecy Act (31 U.S.C. § § 5311 et. seq.), and its implementing
regulations, Title 31 Part 103 of the U.S. Code of Federal Regulations.

GECC Contract No. 31919

GECC Property No. 8004-6599

Denver, Colorado

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     “Budget” has the meaning set forth in the Disbursement Agreement.

     “Business Day” means any day on which Lender is open for business other than a Saturday,
Sunday or a legal holiday, ending at 5:00 P.M. Phoenix, Arizona time.

     “Change of Control” means a change in control of any of the Borrower Parties, including,
without limitation, a change in control resulting from direct or indirect transfers of voting stock
or partnership, membership or other ownership interests, whether in one or a series of
transactions. For purposes of this definition, “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of any of
the Borrower Parties, as applicable, and a Change of Control will occur if any of the following
occur: (a) any merger or consolidation by any of the Borrower Parties, as applicable, with or into
any other entity; or (b) if any “Person” as defined in Section 3(a)(9) of the Securities and
Exchange Act of 1934, as amended (the “Exchange Act”), and as used in Section 13(d) and 14(d)
thereof, including a “group” as defined in Section 13(d) of the Exchange Act, who, subsequent to
the Closing, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), of
securities of any of the Borrower Parties, as applicable, representing 50% or more of the combined
voting power of Borrower’s then outstanding securities (other than indirectly as a result of the
redemption by any of the Borrower Parties, as applicable, of its securities).

     Notwithstanding the foregoing, the following shall not be deemed a Change of Control, so long
as The Summit Group, Inc. remains the Company Manager of the Borrower and retains at least 45% of
the Sharing Ratios and Kerry W. Boekelheide retains voting control of The Summit Group, Inc.: (i) a
transfer of an aggregate of 49% or less of Class A Membership Interests or Class A-1 Membership
Interests in Borrower; (ii) a transfer of an aggregate of 49% or less of Class B Membership
Interests in Borrower; (iii) a transfer of an aggregate of 49% or less of Class C Membership
Interests in Borrower; or (iv) a transfer of an aggregate of 49% or less of ownership interests in
The Summit Group, Inc. Also notwithstanding the foregoing, transfers of ownership or beneficial
interests in The Summit Group, Inc. to a trust for the benefit of family members for estate or tax
planning purposes shall not be a Change of Control so long as Kerry W. Boekelheide retains voting
control of The Summit Group, Inc. and exercises control, directly or indirectly, over the
operations and business of The Summit Group, Inc. Initially capitalized terms used in this
paragraph which are not defined herein shall have the definitions as set forth in the Third Amended
and Restated Operating Agreement for Summit Hotel Properties, LLC dated July 25, 2005.

     “Closing” means the disbursement of the Loan Amount by Title Company as contemplated by this
Agreement.

     “Code” means Title 11 of the United States Code, 11 U.S.C. Sec. 101 et seq., as amended.

     “Completion Date” has the meaning set forth in the Disbursement Agreement.

     “Contract Documents” has the meaning set forth in the Disbursement Agreement.

     “Debt Service Coverage Ratio” has the meaning set forth in Section 6.J.

     “Default Rate” has the meaning set forth in the Note.

     “Development Documents” has the meaning set forth in the Disbursement Agreement.

     “Disbursement Agreement” means the Disbursement Agreement dated as of the date hereof executed
by Borrower and Lender.

     “Disbursements” has the meaning set forth in the Disbursement Agreement.

     “Entity” means any entity that is not a natural person.

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GECC Property No. 8004-6599

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     “Environmental Indemnity Agreement” means the environmental indemnity agreement dated as of
the date of this Agreement executed by Borrower for the benefit of the Indemnified Parties and such
other parties as are identified in such agreement with respect to the Premises, as the same may be
amended from time to time.

     “Event of Default” has the meaning set forth in Section 9.

     “Fee” means an underwriting, site assessment, valuation, construction, processing and
commitment fee equal to 0.75% of the Loan Amount.

     “Final Disbursement” has the meaning set forth in the Disbursement Agreement.

     “Final Disbursement Date” means the date of the Final Disbursement.

     “Franchise Agreement” means the franchise, license or area development agreements with
Franchisor for the conduct of business at the Premises as a Permitted Concept, together with all
amendments, modifications and supplements thereto.

     “Franchisor” means Marriott International, Inc., a Delaware corporation, and its successors.

     “GAAP” means generally accepted accounting principles consistently applied.

     “General Contract” has the meaning set forth in the Disbursement Agreement.

     “General Contractor” has the meaning set forth in the Disbursement Agreement.

     “Governmental Authority” means any governmental authority, agency, department, commission,
bureau, board, instrumentality, court or quasi-governmental authority having jurisdiction or
supervisory or regulatory authority over the Premises or any of the Borrower Parties.

     “Improvements” means the improvements to be constructed upon the Land as contemplated by the
Disbursement Agreement.

     “Indemnified Parties” means Lender, the trustees under the Mortgage, if applicable, and any
person or entity who is or will have been involved in the origination of the Loan, any person or
entity who is or will have been involved in the servicing of the Loan, any person or entity in
whose name the encumbrance created by the Mortgage is or will have been recorded, persons and
entities who may hold or acquire or will have held a full or partial interest in the Loan
(including, but not limited to, investors or prospective investors in any Securitization,
Participation or Transfer, as well as custodians, trustees and other fiduciaries who hold or have
held a full or partial interest in the Loan for the benefits of third parties), as well as the
respective directors, officers, shareholders, partners, members, employees, lenders, agents,
servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants,
successors and assigns of any and all of the foregoing (including, but not limited to, any other
person or entity who holds or acquires or will have held a participation or other full or partial
interest in the Loan or the Premises, whether during the term of the Loan or as a part of or
following a foreclosure of the Loan and including, but not limited to, any successors by merger,
consolidation or acquisition of all or a substantial portion of Lender’s assets and business).

     “Indemnity Agreements” means all indemnity agreements executed for the benefit of any of the
Borrower Parties or any prior owner, lessee or occupant of the Premises in connection with
Hazardous Materials, including, without limitation, the right to receive payments under such
indemnity agreements.

     “Initial Equity Contribution” has the meaning set forth in the Disbursement Agreement.

GECC Contract No. 31919

GECC Property No. 8004-6599

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     “Initial Loan Amount” means that portion of the Loan to be advanced to Borrower at the
Closing.

     “Land” means the parcels of real estate legally described on Exhibit A attached hereto, and
all rights, privileges and appurtenances associated therewith.

     “Lender Entities” means, collectively, Lender (including any predecessor-in-interest to
Lender) and any Affiliate of Lender (including any Affiliate of any predecessor-in-interest to
Lender).

     “Loan” means the loan for the Premises described in Section 2.

     “Loan Amount” means $9,500,000.00.

     “Loan Documents” means, collectively, this Agreement, the Note, the Mortgage, the Disbursement
Agreement, the Environmental Indemnity Agreement, the UCC-1 Financing Statements, the Authorization
Regarding Information form previously delivered on behalf of the Borrower Parties to Lender and all
other documents, instruments and agreements executed in connection therewith or contemplated
thereby, as the same may be amended from time to time.

     “Loan Pool” means: (a) in the context of a Securitization, any pool or group of loans that are
a part of such Securitization; (b) in the context of a Transfer, all loans which are sold,
transferred or assigned to the same transferee; and (c) in the context of a Participation, all
loans as to which participating interests are granted to the same participant.

     “Management Agreement” means that certain Management Agreement dated February 11, 2004 entered
into between Borrower and Manager, as amended by that First Amendment to Management Agreement dated
April 24, 2006, which Management Agreement relates to the Premises in addition to other hotel
properties.

     “Manager” means The Summit Group, Inc.

     “Material Adverse Effect” means a material adverse effect on (a) the Premises, including,
without limitation, the operation of the Premises as a Permitted Concept, or (b) Borrower’s ability
to perform its obligations under the Loan Documents.

     “Mortgage” means the deed of trust, deed to secure debt or mortgage dated as of the date of
this Agreement executed by Borrower for the benefit of Lender with respect to the Premises, as the
same may be amended from time to time.

     “Note” means the promissory note dated as of the date of this Agreement executed by Borrower
in favor of Lender evidencing the Loan, as such Note shall be amended and restated by the Amended
and Restated Note and as the Note may be otherwise amended, restated or substituted from time to
time. All references in the Loan Documents to the Note which are applicable to the period of time
from and after the execution and delivery of the Amended and Restated Note shall mean the Amended
and Restated Note.

     “Obligations” has the meaning set forth in the Mortgage.

     “OFAC Laws and Regulations” means Executive Order 13224 issued by the President of the United
States of America, the Terrorism Sanctions Regulations (Title 31 Part 595 of the U.S. Code of
Federal Regulations), the Terrorism List Governments Sanctions Regulations (Title 31 Part 596 of
the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations
(Title 31 Part 597 of the U.S. Code of Federal Regulations), and the Cuban Assets Control
Regulations (Title 31 Part 515 of the U.S. Code of Federal Regulations), and all other present and
future federal, state and local laws, ordinances, regulations, policies, lists (including, without
limitation, the Specially Designated

GECC Contract No. 31919

GECC Property No. 8004-6599

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Nationals and Blocked Persons List) and any other requirements of any Governmental Authority
(including, without limitation, the United States Department of the Treasury Office of Foreign
Assets Control) addressing, relating to, or attempting to eliminate, terrorist acts and acts of
war, each as hereafter supplemented, amended or modified from time to time, and the present and
future rules, regulations and guidance documents promulgated under any of the foregoing, or under
similar laws, ordinances, regulations, policies or requirements of other states or localities.

     “Other Agreements” means, collectively, all agreements and instruments between, among or by
(a) any of the Borrower Parties or any Affiliate of any of the Borrower Parties (including any
Affiliate of any predecessor-in-interest to any of the Borrower Parties), and, or for the benefit
of, (b) any of the Lender Entities, including, without limitation, promissory notes and guaranties;
provided, however, the term “Other Agreements” shall not include the agreements and instruments
defined as the Loan Documents.

     “Participation” means one or more grants by Lender or any of the other Lender Entities to a
third party of a participating interest in notes evidencing obligations to repay secured or
unsecured loans owned by Lender or any of the other Lender Entities or any or all servicing rights
with respect thereto.

     “Permitted Concept” means a hotel and SpringHill Suites.

     “Permitted Exceptions” means those recorded easements, restrictions, liens and encumbrances
set forth as exceptions in the title insurance policy issued by Title Company to Lender and
approved by Lender in its sole discretion in connection with the closing of the Loan.

     “Person” means any individual, corporation, partnership, limited liability company, trust,
unincorporated organization, Governmental Authority or any other form of entity.

     “Personal Property” has the meaning set forth in the Mortgage.

     “Premises” means, collectively, the Land and the Improvements (as such terms are defined in
the Mortgage).

     “Restoration” has the meaning set forth in the Mortgage.

     “Schedule of Values” has the meaning set forth in the Disbursement Agreement.

     “Securitization” means one or more sales, dispositions, transfers or assignments by Lender or
any of the other Lender Entities to a special purpose corporation, trust or other entity identified
by Lender or any of the other Lender Entities of notes evidencing obligations to repay secured or
unsecured loans owned by Lender or any of the other Lender Entities (and, to the extent applicable,
the subsequent sale, transfer or assignment of such notes to another special purpose corporation,
trust or other entity identified by Lender or any of the other Lender Entities), and the issuance
of bonds, certificates, notes or other instruments evidencing interests in pools of such loans,
whether in connection with a permanent asset securitization or a sale of loans in anticipation of a
permanent asset securitization. Each Securitization shall be undertaken in accordance with all
requirements which may be imposed by the investors or the rating agencies involved in each such
sale, disposition, transfer or assignment or which may be imposed by applicable securities, tax or
other laws or regulations.

     “Site and Utility Plans” means the site and utility plans prepared by Borrower’s Architect
which shall be drawn to the same scale as the ALTA survey described in Section 4.B and depict the
Improvements (including all utilities) as they are to be constructed pursuant to the Contract
Documents and all other items that would be depicted in the “As Built Survey” of the Premises to be
delivered to Lender pursuant to the Disbursement Agreement.

     “Title Company” means Lawyers Title Insurance Corporation.

GECC Contract No. 31919

GECC Property No. 8004-6599

Denver, Colorado

5

 

     “Transfer” means one or more sales, transfers or assignments by Lender or any of the other
Lender Entities to a third party of notes evidencing obligations to repay secured or unsecured
loans owned by Lender or any of the other Lender Entities or any or all servicing rights with
respect thereto.

     “UCC-1 Financing Statements” means such UCC-1 Financing Statements as Lender shall file with
respect to the transactions contemplated by this Agreement.

     “UCC” has the meaning set forth in the Mortgage.

     “U.S. Publicly-Traded Entity” is an Entity whose securities are listed on a national
securities exchange or quoted on an automated quotation system in the U.S. or a wholly-owned
subsidiary of such an Entity.

     2. Transaction. On the terms and subject to the conditions set forth in the Loan Documents,
Lender shall make the Loan. The Loan will be evidenced by the Note and secured by the Mortgage.
Borrower shall construct the Improvements on the Land in accordance with the terms and conditions
of the Disbursement Agreement and Lender shall make Disbursements pursuant to the terms and
conditions of the Disbursement Agreement to fund the costs of such construction. The funding of the
Initial Loan Amount shall occur simultaneously with the Closing. Borrower shall repay the
outstanding principal amount of the Loan together with interest thereon in the manner and in
accordance with the terms and conditions of the Note and the other Loan Documents. At the time of
the Final Disbursement, the Note shall be amended and restated by the Amended and Restated Note.
The Amended and Restated Note will mature on the first day of the month immediately following the
month in which the tenth anniversary of the Final Disbursement Date occurs. The Loan made pursuant
to this Agreement, the construction by Borrower of the Improvements pursuant to the Disbursement
Agreement and the granting of the security interest in the Premises pursuant to the Mortgage are
not severable and shall be considered a single integrated transaction.

     3. Escrow Agent; Closing Costs. Borrower and Lender hereby employ Title Company to act as
escrow agent in connection with the transactions described in this Agreement. Borrower and Lender
will deliver to Title Company all documents, pay to Title Company all sums and do or cause to be
done all other things necessary or required by this Agreement, in the reasonable judgment of Title
Company, to enable Title Company to comply herewith and to enable any title insurance policy
provided for herein to be issued. Title Company shall not cause the transaction to close unless and
until it has received written instructions from Lender and Borrower to do so. Title Company is
authorized to pay, from any funds held by it for Lender’s or Borrower’s respective credit all
amounts necessary to procure the delivery of such documents and to pay, on behalf of Lender and
Borrower, all charges and obligations payable by them, respectively. Borrower will pay all charges
payable by it to Title Company. Title Company is authorized, in the event any conflicting demand is
made upon it concerning these instructions or the escrow, at its election, to hold any documents or
funds deposited hereunder until an action shall be brought in a court of competent jurisdiction to
determine the rights of Borrower and Lender or to interplead such documents or funds in an action
brought in any such court. Deposit by Title Company of such documents and funds, after deducting
therefrom its charges and its expenses and attorneys’ fees incurred in connection with any such
court action, shall relieve Title Company of all further liability and responsibility for such
documents and funds. Title Company’s receipt of this Agreement and opening of an escrow pursuant to
this Agreement shall be deemed to constitute conclusive evidence of Title Company’s agreement to be
bound by the terms and conditions of this Agreement pertaining to Title Company. Disbursement of
any funds shall be made by check, certified check or wire transfer, as directed by Borrower and
Lender. Title Company shall be under no obligation to disburse any funds represented by check or
draft, and no check or draft shall be payment to Title Company in compliance with any of the
requirements hereof, until it is advised by the bank in which such check or draft is deposited that
such check or draft has been honored. Title Company is authorized to act upon any statement
furnished by the holder or payee, or a collection agent for the holder or payee, of any lien on or
charge or

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assessment in connection with the Premises, concerning the amount of such charge or assessment or
the amount secured by such lien, without liability or responsibility for the accuracy of such
statement. The employment of Title Company as escrow agent shall not affect any rights of
subrogation under the terms of any title insurance policy issued pursuant to the provisions
thereof. Notwithstanding the foregoing, the terms and conditions of this Agreement shall not limit
or affect Title Company’s liability or obligations under the Disbursement Agreement.

     4. Closing Conditions. The obligation of Lender to consummate the transaction contemplated by
this Agreement is subject to the fulfillment or waiver of each of the following conditions:

     A. Title Insurance Commitments. Lender shall have received for the Premises a preliminary
title report and irrevocable commitment to insure title in the amount of the Loan, by means of a
mortgagee’s, ALTA extended coverage policy of title insurance (or its equivalent, in the event such
form is not issued in the jurisdiction where the Premises is located) issued by Title Company
showing Borrower vested with good and marketable fee title in the real property comprising such
Premises, committing to insure Lender’s first priority lien upon and security interest in such real
property subject only to Permitted Exceptions, and containing such endorsements as Lender may
reasonably require.

     B. Survey. Lender shall have received (1) a current ALTA survey of the Premises or its
equivalent, the form and substance of which shall be satisfactory to Lender in its reasonable
discretion and (2) the Site and Utility Plans. Lender shall have obtained a flood certificate
indicating that the location of the Premises is not within the 100-year flood plain or identified
as a special flood hazard area as defined by the Federal Emergency Management Agency, or if the
Premises is in such a flood plain or special flood hazard area, Borrower shall have provided Lender
with evidence of flood insurance maintained on the Premises in an amount and on terms and
conditions reasonably satisfactory to Lender.

     C. Environmental. Lender shall have completed such environmental due diligence of the Premises
as it deems necessary or advisable in its sole discretion, and Lender shall have approved the
environmental condition of the Premises in its sole discretion.

     D. Compliance With Representations, Warranties and Covenants. All of the representations and
warranties set forth in Section 5 shall be true, correct and complete as of the Closing Date, and
Borrower shall be in compliance with each of the covenants set forth in Section 6 as of the Closing
Date. No event shall have occurred or condition shall exist or information shall have been
disclosed by Borrower or discovered by Lender which has had or would be reasonably likely to have a
Material Adverse Effect on the Premises, any of the Borrower Parties or Lender’s willingness to
consummate the transaction contemplated by this Agreement, as determined by Lender in its sole and
absolute discretion.

     E. Proof of Insurance. Borrower shall have delivered to Lender certificates of insurance and
copies of insurance policies showing that all insurance required by the Loan Documents and
providing coverage and limits satisfactory to Lender are in full force and effect.

     F. Legal Opinions. Borrower shall have delivered to Lender such legal opinions as Lender may
reasonably require all in form and substance reasonably satisfactory to Lender and its counsel.

     G. Fee and Closing Costs. Borrower shall have paid the Fee to Lender and shall have paid all
costs of the transactions described in this Agreement, including, without limitation, the cost of
title insurance premiums and all endorsements required by Lender, survey charges, UCC and
litigation search charges, the attorneys’ fees of Borrower, reasonable attorneys’ fees and expenses
of Lender, the cost of the environmental due diligence undertaken pursuant to Section 4.C, Lender’s
site inspection costs and fees, stamp taxes, mortgage taxes, transfer fees, escrow, filing and
recording fees and UCC filing and recording fees (including preparation, filing and recording fees
for UCC continuation statements). Borrower shall have also paid all real and personal property and
other applicable taxes and assessments and other charges relating to the Premises which are due and
payable on or prior to the Closing Date as well as taxes and assessments due and payable subsequent
to the Closing Date but which Title

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Company requires to be paid at Closing as a condition to the issuance of the title insurance policy
described in Section 4.A.

     H. Franchise Agreement. Lender shall have received a certificate (the “Franchisor
Certificate”) from Franchisor in form and substance acceptable to Lender which provides that the
Premises has been approved by Franchisor. If the Franchise Agreement has been entered into prior to
the Closing, the Franchisor Certificate shall also provide that the Franchise Agreement is valid,
binding and in full force and effect, with a term (inclusive of existing renewal options) which
will expire after the scheduled maturity date of the Note, and no events have occurred which could
constitute a default under the Loan Documents, and, to the extent Franchisor has a right of first
refusal in the Franchise Agreement that extends to the sale, transfer or conveyance of the
Premises, Franchisor waives all such rights of first refusal set forth in the Franchise Agreement
as to Lender and its successors and assigns.

     I. Development Documents; Borrower’s Architect Certification. (1) Lender, in its sole and
absolute discretion, shall have approved the Contract Documents, the Budget, the Schedule of
Values, the Architect’s Agreement, the General Contract, the Borrower’s Architect and the General
Contractor; Borrower shall have caused the General Contractor to deliver a list to Lender and Title
Company, certified by the General Contractor, of (a) all materialmen, laborers, subcontractors,
suppliers and any other parties (collectively, the “Vendors”) who may claim statutory or common law
liens as a result of furnishing material or labor to the Premises or any portion thereof or
interest therein, (b) the work or materials the Vendors will perform or supply, and (c) the cost of
such work or materials; and Borrower shall have executed or delivered, as applicable, all
Development Documents, including, without limitation, a consent of the General Contractor to the
collateral assignment of the General Contract (the “Consent of General Contractor”), all in form
and substance acceptable to Lender.

     (2) Borrower’s Architect shall have delivered to Lender a certification in form and substance
satisfactory to Lender certifying that the plans and specifications for the Improvements are in
compliance with all applicable building and zoning codes, ordinances and requirements.

     J. Management Agreement. The Management Agreement shall be in full force and effect. Lender
shall have approved the Management Agreement in its sole discretion and Manager and Borrower shall
have delivered to Lender such subordination agreements, collateral assignments of management
agreement and consents to collateral assignment of management agreement as Lender may require in
its sole discretion.

     K. Closing Documents. At or prior to the Closing Date, Lender or the Borrower Parties, as may
be appropriate, shall have executed and delivered or shall have caused to be executed and delivered
to Lender, or as Lender may otherwise direct, the Loan Documents and such other documents, payments
(including, without limitation, the Initial Equity Contribution), instruments and certificates, as
Lender may require in form acceptable to Lender.

     Upon fulfillment or waiver of all of the above conditions, Lender shall deposit funds
necessary to close this transaction with the Title Company and this transaction shall close in
accordance with the terms and conditions of this Agreement.

     5. Representations and Warranties of Borrower. The representations and warranties of Borrower
contained in this Section are being made by Borrower as of the Closing Date to induce Lender to
enter into this Agreement and consummate the transactions contemplated herein and shall survive the
Closing. Borrower represents and warrants to Lender as follows:

     A. Financial Information. (1) Borrower has delivered to Lender certain financial statements
and other information concerning the Borrower Parties in connection with the transaction described
in this Agreement (collectively, the “Financial Information”). The Financial Information is true,
correct and complete in all material respects; there have been no amendments to the Financial
Information since the

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date such Financial Information was prepared or delivered to Lender. Borrower understands that
Lender is relying upon the Financial Information and Borrower represents that such reliance is
reasonable. All annual financial statements included in the Financial Information were prepared in
accordance with GAAP and fairly present as of the date of such financial statements the financial
condition of each individual or entity to which they pertain. No change has occurred with respect
to the financial condition of any of the Borrower Parties or the Premises as reflected in the
Financial Information, which has not been disclosed in writing to Lender or has had, or could
reasonably be expected to result in, a Material Adverse Effect.

     (2) Borrower has delivered to Lender the Contract Documents. The Contract Documents have been
approved by the Borrower Parties and the General Contractor and will enable the Improvements to be
constructed for the use of the Premises as a Permitted Concept.

     B. Organization and Authority. Each of the Borrower Parties (other than individuals), as
applicable, is duly organized or formed, validly existing and in good standing under the laws of
its state of incorporation or formation. Borrower is qualified as a foreign corporation,
partnership or limited liability company, as applicable, to do business in each state where the
Premises is located, and each of the Borrower Parties is qualified as a foreign corporation,
partnership or limited liability company, as applicable, to do business in any other jurisdiction
where the failure to be qualified would reasonably be expected to result in a Material Adverse
Effect. All necessary action has been taken to authorize the execution, delivery and performance by
the Borrower Parties of this Agreement and the other Loan Documents. The person(s) who have
executed this Agreement on behalf of Borrower are duly authorized so to do. Borrower is not a
“foreign corporation”, “foreign partnership”, “foreign trust”, “foreign estate” or “foreign person”
(as those terms are defined by the Internal Revenue Code of 1986, as amended). Borrower’s U.S.
Federal Tax Identification number, Organization Identification number and principal place of
business are correctly set forth on the signature page of this Agreement. None of the Borrower
Parties, and no individual or entity owning directly or indirectly any interest in any of the
Borrower Parties, is an individual or entity whose property or interests are subject to being
blocked under any of the OFAC Laws and Regulations or is otherwise in violation of any of the OFAC
Laws and Regulations; provided, however, the representation contained in this sentence shall not
apply to any Person to the extent such Person’s interest is in or through a U.S. Publicly-Traded
Entity.

     C. Enforceability of Documents. Upon execution by the Borrower Parties, this Agreement and the
other Loan Documents shall constitute the legal, valid and binding obligations of the Borrower
Parties, respectively, enforceable against the Borrower Parties in accordance with their respective
terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
liquidation, reorganization and other laws affecting the rights of creditors generally and general
principles of equity.

     D. Litigation. There are no suits, actions, proceedings or investigations pending, or to the
best of its knowledge, threatened against or involving the Borrower Parties or the Premises before
any arbitrator or Governmental Authority, except for such suits, actions, proceedings or
investigations which, individually or in the aggregate, have not had, and would not reasonably be
expected to result in, a Material Adverse Effect.

     E. Absence of Breaches or Defaults. The Borrower Parties are not, and the authorization,
execution, delivery and performance of this Agreement and the other Loan Documents will not result,
in any breach or default under any other document, instrument or agreement to which any of the
Borrower Parties is a party or by which any of the Borrower Parties, the Premises or any of the
property of any of the Borrower Parties is subject or bound, except for such breaches or defaults
which, individually or in the aggregate, have not had, and would not reasonably be expected to
result in, a Material Adverse Effect. The authorization, execution, delivery and performance of
this Agreement and the other Loan Documents will not violate any applicable law, statute,
regulation, rule, ordinance, code, rule or order. The Premises is not subject to any right of first
refusal, right of first offer or option to purchase or lease granted to a third party.

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     F. Utilities. All utility services and easements necessary for the construction of the
Improvements and the operation thereof as a Permitted Concept are available at the boundaries of
the Land, including water supply, storm and sanitary sewer facilities, gas, electric and telephone
facilities.

     G. Zoning; Compliance With Laws. The Premises is in compliance with all applicable zoning
requirements, and the use of the Premises as a Permitted Concept does not constitute a
nonconforming use under applicable zoning requirements. The Borrower Parties and the Premises are
in compliance with all Applicable Regulations except for such noncompliance which has not had, and
would not reasonably be expected to result in, a Material Adverse Effect.

     H. Area Development; Wetlands. No condemnation or eminent domain proceedings affecting the
Premises have been commenced or, to the best of Borrower’s knowledge, are contemplated. Neither the
Premises, nor to the best of Borrower’s knowledge, the real property bordering the Premises, are
designated by any Governmental Authority as a wetlands.

     I. Licenses and Permits; Access. All required licenses and permits, both governmental and
private, to begin construction of the Improvements are in full force and effect, except for such
licenses and permits the failure of which to obtain has not had, and would not reasonably be
expected to result in, a Material Adverse Effect. Adequate rights of access to public roads and
ways are available to the Premises for unrestricted ingress and egress and otherwise to permit
utilization of the Premises for their intended purposes, and all such public roads and ways have
been completed and dedicated to public use.

     J. Environmental. The representations and warranties of Borrower set forth in Section 2 of the
Environmental Indemnity Agreement, together with the corresponding definitions, are incorporated by
reference into this Agreement as if stated in full in this Agreement.

     K. Title to Premises; First Priority Lien. Fee title to the real property comprising the
Premises is vested in Borrower, free and clear of all liens, encumbrances, charges and security
interests of any nature whatsoever, except the Permitted Exceptions. Borrower is owner of all
Personal Property, free and clear of all liens, encumbrances, charges and security interests of any
nature whatsoever, and no Affiliate of Borrower owns any of the Personal Property. Upon Closing,
Lender shall have a first priority lien upon and security interest in the Premises pursuant to the
Mortgage and the UCC-1 Financing Statements.

     L. No Mechanics’ Liens. There are no delinquent accounts payable or mechanics’ liens in favor
of any materialman, laborer, or any other person or entity in connection with labor or materials
furnished to or performed on any portion of the Premises; and no work has been performed or is in
progress nor have materials been supplied to the Premises or agreements entered into for work to be
performed or materials to be supplied to the Premises prior to the date hereof, which will be
delinquent on or before the Closing Date.

     M. Franchisor Provisions. The Premises have been approved by Franchisor and Franchisor has
either entered into a franchise, license or area development agreement with Borrower with respect
to the Premises or has agreed to enter into such agreement with Borrower upon the completion of the
construction of the Improvements. If such franchise, license or area development agreement has been
entered into prior to the date of this Agreement: (1) Borrower has delivered to Lender a true,
correct and complete copy of the Franchise Agreement; (2) the Franchise Agreement is the only
agreement in effect with Franchisor with respect to the Premises; (3) the Franchise Agreement is in
full force and effect and constitutes the legal, valid and binding obligations of the parties to
the Franchise Agreement, enforceable in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, liquidation, reorganization and other laws
affecting the rights of creditors generally and general principles of equity; (4) none of the
Borrower Parties has assigned, transferred, mortgaged, hypothecated or otherwise encumbered the
Franchise Agreement or any rights thereunder or any interest

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therein, and none of the Borrower Parties has received any notice that Franchisor has made any
assignment, pledge or hypothecation of all or any part of its rights or interest in the Franchise
Agreement; (5) no notice of default from Franchisor has been received under the Franchise Agreement
which has not been cured and no notice of default to Franchisor has been given under the Franchise
Agreement which has not been cured; (6) no event has occurred and no condition exists which, with
the giving of notice or the lapse of time or both, would constitute a default under the Franchise
Agreement; and (7) the Franchise Agreement has a term (inclusive of existing renewal options) which
will expire after the scheduled maturity date of the Amended and Restated Note.

     N. Money Laundering. (1) Borrower has taken all reasonable measures, in accordance with all
applicable Anti-Money Laundering Laws, with respect to each holder of a direct or indirect interest
in the Borrower Parties, to assure that funds invested by such holders in the Borrower Parties are
derived from legal sources; provided, however, none of the foregoing shall apply to any Person to
the extent that such Person’s interest is in or through a U.S. Publicly-Traded Entity.

     (2) To Borrower’s knowledge after making due inquiry, neither any of the Borrower Parties nor
any holder of a direct or indirect interest in the Borrower Parties (a) is under investigation by
any Governmental Authority for, or has been charged with, or convicted of, any violation of any
Anti-Money Laundering Laws, or drug trafficking, terrorist-related activities or other money
laundering predicated crimes or a violation of the BSA, (b) has been assessed civil penalties under
these or related laws, or (c) has had any of its funds seized or forfeited in an action under these
or related laws; provided, however, none of the foregoing shall apply to any Person to the extent
that such Person’s interest is in or through a U.S. Publicly-Traded Entity.

     (3) Borrower has taken reasonable steps, consistent with industry practice for comparable
organizations and in any event as required by law, to ensure that the Borrower Parties are and
shall be in compliance with all (a) Anti-Money Laundering Laws and (b) OFAC Laws and Regulations.

     O. Management Agreement. Borrower has delivered to Lender a true, correct and complete copy of
the Management Agreement. The Management Agreement is the only agreement in effect with Manager
with respect to the Premises. The Management Agreement is in full force and effect and constitutes
the legal, valid and binding obligations of the parties to the Management Agreement, enforceable in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, liquidation, reorganization and other laws affecting the rights of creditors generally
and general principles of equity. As it relates to the Premises, Borrower has not assigned,
transferred, mortgaged, hypothecated or otherwise encumbered the Management Agreement or any rights
thereunder or any interest therein, and Borrower has not received any notice that Manager has made
any assignment, pledge or hypothecation of all or any part of its rights or interest in the
Management Agreement. No notice of default from Manager has been received under the Management
Agreement that has not been cured and no notice of default to Manager has been given under the
Management Agreement which has not been cured. No event has occurred and no condition exists which,
with the giving of notice or the lapse of time or both, would constitute a default under the
Management Agreement.

     6. Covenants. Borrower covenants to Lender from and after the Closing Date and until all of
the Obligations are satisfied in full, as follows:

     A. Payment of the Note. Borrower shall punctually pay, or cause to be paid, the principal,
interest and all other sums to become due in respect of the Note and the other Loan Documents in
accordance with the Note and the other Loan Documents. Borrower shall authorize Lender to establish
arrangements whereby all scheduled payments made in respect of the Obligations are transferred by
Automated Clearing House Debit initiated by Lender directly from an account at a U.S. bank in the
name of Borrower to such account as Lender may designate or as Lender may otherwise designate.

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     B. Title. Borrower shall maintain good and marketable fee simple title to the real property
comprising the Premises, and title to the Personal Property and the remainder of the Premises, free
and clear of all liens, encumbrances, charges and other exceptions to title, except the Permitted
Exceptions or except as permitted by the Loan Documents. Lender shall have valid first liens upon
and security interests in the Premises, including the Personal Property, pursuant to the Mortgage
and the UCC-1 Financing Statements.

     C. Organization and Status of Borrower; Preservation of Existence. Each of the Borrower
Parties (other than individuals), as applicable, shall be validly existing and in good standing
under the laws of its state of incorporation or formation. Borrower shall be qualified as a foreign
corporation, partnership or limited liability company to do business in each state where the
Premises is located, and each of the Borrower Parties shall be qualified as a foreign corporation,
partnership or limited liability company in any other jurisdiction where the failure to be
qualified would reasonably be expected to result in a Material Adverse Effect. Borrower shall
preserve its current form of organization and shall not change its legal name, its state of
formation, nor, in one transaction or a series of related transactions, merge with or into, or
consolidate with, any other entity without providing, in each case, Lender with 30 days’ prior
written notice and obtaining Lender’s prior written consent (to the extent such consent is required
under Section 7 of this Agreement). In addition, Borrower shall require, and shall take reasonable
measures to comply with the requirement, that no individual or entity owning directly or indirectly
any interest in any of the Borrower Parties is an individual or entity whose property or interests
are subject to being blocked under any of the OFAC Laws and Regulations or is otherwise in
violation of any of the OFAC Laws and Regulations; provided, however, the covenant contained in
this sentence shall not apply to any Person to the extent that such Person’s interest is in or
through a U.S. Publicly-Traded Entity.

     D. Licenses and Permits. From and after the Completion Date, all required licenses and
permits, both governmental and private, to use and operate the Premises as a Permitted Concept
shall be maintained in full force and effect.

     E. Compliance With Laws Generally. The use and occupation of the Premises, and the condition
thereof, including, without limitation, any Restoration, shall comply with all Applicable
Regulations now or hereafter in effect, including, without limitation, the OFAC Laws and
Regulations and Anti-Money Laundering Laws. In addition, the Borrower Parties shall comply with all
Applicable Regulations now or hereafter in effect. Without limiting the generality of the other
provisions of this Section, Borrower shall comply with the ADA, and all regulations promulgated
thereunder, as it affects the Premises.

     F. Compliance With Environmental Provisions. The covenants, obligations and agreements of
Borrower set forth in Sections 3 through 7 of the Environmental Indemnity Agreement, together with
the corresponding definitions, are incorporated by reference into this Agreement as if stated in
full in this Agreement.

     G. Financial Statements. From and after the Completion Date, within 45 days after the end of
each fiscal quarter and within 120 days after the end of each fiscal year of Borrower, Borrower
shall deliver to Lender (1) complete financial statements of the Borrower Parties including a
balance sheet, profit and loss statement, statement of cash flows and all other related schedules
for the fiscal period then ended; (2) income statements for the business at the Premises; (3)
standard hotel data of rooms sold and rooms available, as well as gross revenue breakdown of room
revenue from other revenue, so that occupancy ADR and RevPar Statistics can be calculated; and (4)
such other financial information as Lender may reasonably request in order to establish compliance
with the financial covenants in the Loan Documents, including, without limitation, Section 6.J of
this Agreement. All such annual financial statements shall be prepared in accordance with GAAP from
period to period, and shall be certified to be accurate and complete by Borrower (or the Treasurer
or other appropriate officer of Borrower). In the event the property and business at the Premises
is ordinarily consolidated with other business for

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financial statement purposes, such financial statements shall be prepared on a consolidated basis
showing separately the sales, profits and losses, assets and liabilities pertaining to the Premises
with the basis for allocation of overhead of other charges being clearly set forth. The financial
statements delivered to Lender need not be audited, but Borrower shall deliver to Lender copies of
any audited financial statements of Borrower which may be prepared, as soon as they are available.
Borrower shall also cause to be delivered to Lender copies of any financial statements required to
be delivered to Borrower by any tenants of the Premises.

     H. Lost Note. Borrower shall, if the Note is mutilated, destroyed, lost or stolen (a “Lost
Note”), promptly deliver to Lender, upon receipt from Lender of an affidavit and indemnity in a
form reasonably acceptable to Lender and Borrower stipulating that the Note has been mutilated,
destroyed, lost or stolen, in substitution therefor, a new promissory note containing the same
terms and conditions as the Lost Note with a notation thereon of the unpaid principal and accrued
and unpaid interest. Borrower shall provide fifteen (15) days’ prior notice to Lender before making
any payments to third parties in connection with the Lost Note.

     I. Inspections. Borrower shall, during normal business hours (or at any time in the event of
an emergency) and at reasonable intervals, (1) provide Lender and Lender’s officers, employees,
agents, advisors, attorneys, accountants, architects, and engineers with access to the Premises,
all drawings, plans, and specifications for the Premises in possession of any of the Borrower
Parties, all engineering reports relating to the Premises in the possession of any of the Borrower
Parties, the files, correspondence and documents relating to the Premises, and the financial books
and records, including lists of delinquencies, relating to the ownership, operation, and
maintenance of the Premises (including, without limitation, any of the foregoing information stored
in any computer files), (2) allow such persons to make such inspections, tests, copies, and
verifications as Lender considers necessary, and (3) if Borrower is in breach of the Debt Service
Coverage Ratio requirement set forth in the following subsection J, pay expenses reasonably
incurred by Lender from time to time in conducting such inspections, tests, copies and
verifications upon demand (such amounts to bear interest at the Default Rate if not paid upon
demand until paid).

     J. Debt Service Coverage Ratio. From and after the Completion Date, Borrower shall maintain a
Debt Service Coverage Ratio of at least 1.25:1 before distribution payouts and 1.0:1 after
distribution payouts, as determined as of Borrower’s fiscal year end. For purposes of this Section,
the term “Debt Service Coverage Ratio” shall mean with respect to the twelve month period of time
immediately preceding the date of determination, the ratio calculated for such period of time, each
as determined in accordance with GAAP, of (1) earnings before Interest Expense, income taxes,
Depreciation and Amortization, plus or minus other non-recurring renovation/remodel expenses funded
with the proceeds of a loan or other non-operating sources to (2) principal and interest payments
on the aggregate first mortgage term debt.

     For purposes of this Section, the following terms shall be defined as set forth below:

     “Depreciation and Amortization” shall mean the depreciation and amortization accruing during
any period of determination with respect to Borrower and the other Borrower Parties, collectively,
as determined in accordance with GAAP.

     “Interest Expense” shall mean for any period of determination, the sum of all interest accrued
or which should be accrued in respect of all Debt of Borrower and the other Borrower Parties,
collectively, as determined in accordance with GAAP.

     K. Affiliate Transactions. Unless otherwise approved by Lender, all transactions between
Borrower and any of its Affiliates shall be on terms substantially as advantageous to Borrower as
those which could be obtained by Borrower in a comparable arm’s length transaction with a
non-Affiliate of Borrower.

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GECC Property No. 8004-6599

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     L. Compliance Certificates. Within 90 days after the end of each fiscal year of Borrower,
Borrower shall deliver a compliance certificate to Lender in a form to be provided by Lender in
order to establish that Borrower is in compliance in all material respects with all of its
obligations, duties and covenants under the Loan Documents.

     M. Franchise Agreement. From and after the Completion Date, the Franchise Agreement shall be
maintained in full force and effect. No event shall occur nor shall any condition exist which, with
the giving of notice or the lapse of time or both, would constitute a breach or default under the
Franchise Agreement. Borrower shall give prompt notice to Lender of any claim of default by or to
the franchisee under the Franchise Agreement and shall provide Lender with a copy of any default
notice given or received by the franchisee under the Franchise Agreement and any information
submitted or referenced in support of such claim of default. Borrower shall also give prompt notice
to Lender of any extensions or renewals of the Franchise Agreement and the expiration or
termination of the Franchise Agreement.

     N. Use of Disbursements. Borrower will use the Disbursements solely to construct the
Improvements, and it will not require and will not avail itself of any other extension of credit
for such purpose without Lender’s prior written consent.

     O. Contract Documents. Following approval by Lender, the Contract Documents, including,
without limitation, the location of the Improvements depicted on the Site and Utility Plans, will
not be changed or altered in any respect without Lender’s prior written consent except as allowed
in the Disbursement Agreement.

     P. OFAC Laws and Regulations. Borrower shall immediately notify Lender in writing if any
individual or entity owning directly or indirectly any interest in any of the Borrower Parties or
any director, officer, member, manager or partner of any of such holders is an individual or entity
whose property or interests are subject to being blocked under any of the OFAC Laws and Regulations
or is otherwise in violation of any of the OFAC Laws and Regulations, or is under investigation by
any governmental entity for, or has been charged with, or convicted of, drug trafficking,
terrorist-related activities or any violation of Anti-Money Laundering Laws, has been assessed
civil penalties under these or related laws, or has had funds seized or forfeited in an action
under these or related laws; provided, however, the covenant contained in this sentence shall not
apply to any Person to the extent that such Person’s interest is in or through a U.S.
Publicly-Traded Entity.

     Q. Management Agreement. The Management Agreement shall be maintained in full force and
effect. No event shall occur nor shall any condition exist which, with the giving of notice or the
lapse of time or both, would constitute a breach or default under the Management Agreement.
Borrower shall give prompt notice to Lender of any claim of default by or to the Manager under the
Management Agreement and shall provide Lender with a copy of any default notice given or received
by the Manager under the Management Agreement and any information submitted or referenced in
support of such claim of default. Borrower shall also give prompt notice to Lender of the
expiration or termination of the Management Agreement.

     7. Prohibition on Change of Control and Pledge. A. Without limiting the terms and conditions
of Section 3.09 of the Mortgage, Borrower agrees that, from and after the Closing Date and until
all of the Obligations are satisfied in full, without the prior written consent of Lender: (1) no
Change of Control shall occur; and (2) no interest in any of the Borrower Parties shall be pledged,
encumbered, hypothecated or assigned as collateral for any obligation of any of the Borrower
Parties (each, a “Pledge”). In addition, no interest in any of the Borrower Parties, or in any
individual or person owning directly or indirectly any interest in any of the Borrower Parties,
shall be transferred, assigned or conveyed to any individual or person whose property or interests
are subject to being blocked under any of the OFAC Laws and Regulations or who is in violation of
any of the OFAC Laws and Regulations, and any such transfer, assignment or conveyance shall not be
effective until the transferee has provided written certification to Borrower and Lender that (x)
the transferee or any person who owns directly or

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indirectly any interest in transferee, is not an individual or entity whose property or interests
are subject to being blocked under any of the OFAC Laws and Regulations or is otherwise in
violation of the OFAC Laws and Regulations, and (y) the transferee has taken reasonable measures to
assure than any individual or entity who owns directly or indirectly any interest in transferee, is
not an individual or entity whose property or interests are subject to being blocked under any of
the OFAC Laws and Regulations or is otherwise in violation of the OFAC Laws and Regulations;
provided, however, the covenant contained in this sentence shall not apply to any Person to the
extent that such Person’s interest is in or through a U.S. Publicly-Traded Entity.

     B. Lender’s consent to a Change of Control or Pledge shall be subject to the satisfaction of
such conditions as Lender shall determine in its sole discretion, including, without limitation,
(1) the execution and delivery of such modifications to the terms of the Loan Documents as Lender
shall request, (2) the proposed Change of Control or Pledge having been approved by each of the
rating agencies which have issued ratings in connection with any Securitization of the Loan as well
as any other rating agency selected by Lender, and (3) the proposed transferee having agreed to
comply with all of the terms and conditions of the Loan Documents (including any modifications
requested by Lender pursuant to clause (1) above). In addition, any such consent shall be
conditioned upon payment by Borrower to Lender of (a) a fee equal to one percent (1%) of the then
outstanding principal balance of the Note and (b) all out-of-pocket costs and expenses incurred by
Lender in connection with such consent, including, without limitation, reasonable attorneys’ fees.
Lender shall not be required to demonstrate any actual impairment of its security or any increased
risk of default hereunder in order to declare the Obligations immediately due and payable upon a
Change of Control or Pledge in violation of this Section. The provisions of this Section shall
apply to every Change of Control or Pledge regardless of whether voluntary or not, or whether or
not Lender has consented to any previous Change of Control or Pledge.

     8. Transaction Characterization. A. It is the intent of the parties hereto that this Agreement
and the other Loan Documents are a contract to extend a financial accommodation (as such term is
used in the Code) for the benefit of Borrower and that the Loan Documents evidence one unitary,
unseverable transaction pertaining to the Premises.

     B. It is the intent of the parties hereto that the business relationship created by the Loan
Documents is solely that of creditor and debtor and has been entered into by both parties in
reliance upon the economic and legal bargains contained in the Loan Documents. None of the
agreements contained in the Loan Documents is intended, nor shall the same be deemed or construed,
to create a partnership (either de jure or de facto) between Borrower and Lender, to make them
joint venturers, to make Borrower an agent, legal representative, partner, subsidiary or employee
of Lender, nor to make Lender in any way responsible for the debts, obligations or losses of
Borrower.

     9. Default and Remedies. A. Each of the following shall be deemed an event of default by
Borrower (each, an “Event of Default”):

     (1) If any representation or warranty of any of the Borrower Parties set forth in any of the
Loan Documents is false in any material respect when made, or if any of the Borrower Parties
renders any statement or account which is false in any material respect.

     (2) If any principal, interest or other monetary sum due under the Note, the Mortgage or any
other Loan Document is not paid within five days after the date when due; provided, however,
notwithstanding the occurrence of such an Event of Default, Lender shall not be entitled to
exercise its rights and remedies set forth below unless and until Lender shall have given Borrower
written notice thereof and a period of five days from the delivery of such notice shall have
elapsed without such Event of Default being cured.

     (3) If Borrower fails to observe or perform any of the other covenants, conditions, or
obligations of this Agreement; provided, however, if any such failure does not involve the payment
of any

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monetary sum, is not willful or intentional, does not place any rights or interest in collateral of
Lender in immediate jeopardy, and is within the reasonable power of Borrower to promptly cure after
receipt of notice thereof, all as determined by Lender in its reasonable discretion, then such
failure shall not constitute an Event of Default hereunder, unless otherwise expressly provided
herein, unless and until Lender shall have given Borrower notice thereof and a period of 30 days
shall have elapsed, during which period Borrower may correct or cure such failure, upon failure of
which an Event of Default shall be deemed to have occurred hereunder without further notice or
demand of any kind being required. If such failure cannot reasonably be cured within such 30-day
period, as determined by Lender in its reasonable discretion, and Borrower is diligently pursuing a
cure of such failure, then Borrower shall have a reasonable period to cure such failure beyond such
30-day period, which shall not exceed 90 days after receiving notice of the failure from Lender. If
Borrower shall fail to correct or cure such failure within such 90-day period, an Event of Default
shall be deemed to have occurred hereunder without further notice or demand of any kind being
required.

     (4) If any of the Borrower Parties becomes insolvent within the meaning of the Code, files or
notifies Lender that it intends to file a petition under the Code, initiates a proceeding under any
similar law or statute relating to bankruptcy, insolvency, reorganization, winding up or adjustment
of debts (collectively, an “Action”), becomes the subject of either a petition under the Code or an
Action, or is not generally paying its debts as the same become due. Notwithstanding the foregoing,
the filing of an involuntary bankruptcy proceeding against any of the Borrower Parties shall not be
an Event of Default herein provided that such case or proceeding is dismissed with prejudice within
60 days of the filing thereof.

     (5) If there is an “Event of Default” or a breach or default, after the passage of all
applicable notice and cure or grace periods, under any of the Other Agreements, or any other Loan
Document.

     (6) If a final, nonappealable judgment is rendered by a court against any of the Borrower
Parties which (a) has a Material Adverse Effect on the operation of the Premises as a Permitted
Concept, or (b) is in an amount greater than $100,000.00 and not covered by insurance, and, in
either case, is not discharged or provision made for such discharge within 60 days from the date of
entry of such judgment.

     (7) If there is a breach or default, after the passage of all applicable notice and cure or
grace periods, under the Franchise Agreement, or if the Franchise Agreement terminates or expires
prior to the payment in full of the Note in accordance with its terms and a substitute agreement
for the terminated or expired agreement is not entered into with Franchisor prior to such
expiration or termination, which substitute agreement shall be in form and substance reasonably
satisfactory to Lender and shall expire after the scheduled maturity date of the Note.

     (8) If there is a breach or default, after the passage of all applicable notice and cure or
grace periods, under the Management Agreement, or if the Management Agreement terminates or expires
prior to the payment in full of the Note in accordance with its terms and a substitute agreement
for the terminated or expired agreement is not entered into with Manager prior to such expiration
or termination, which substitute agreement shall be in form and substance reasonably satisfactory
to Lender and shall expire after the scheduled maturity date of the Note.

     B. Upon the occurrence and during the continuance of an Event of Default, subject to the
limitations set forth in subsection A, Lender may declare all or any part of the obligations of
Borrower under the Note, this Agreement and any other Loan Document to be due and payable, and the
same shall thereupon become due and payable without any presentment, demand, protest or notice of
any kind except as otherwise expressly provided herein, and Borrower hereby waives notice of intent
to accelerate the obligations secured by the Mortgage and notice of acceleration. Thereafter,
Lender may exercise, at its option, concurrently, successively or in any combination, all remedies
available at law or in equity, including without limitation any one or more of the remedies
available under the Note, the Mortgage or any other Loan Document. Neither the acceptance of this
Agreement nor its enforcement shall prejudice

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or in any manner affect Lender’s right to realize upon or enforce any other security now or
hereafter held by Lender, it being agreed that Lender shall be entitled to enforce this Agreement
and any other security now or hereafter held by Lender in such order and manner as it may in its
absolute discretion determine. No remedy herein conferred upon or reserved to Lender is intended to
be exclusive of any other remedy given hereunder or now or hereafter existing at law or in equity
or by statute. Every power or remedy given by any of the Loan Documents to Lender, or to which
Lender may be otherwise entitled, may be exercised, concurrently or independently, from time to
time and as often as may be deemed expedient by Lender.

     10. Indemnity; Release. A. Initially capitalized terms in this Section that are not otherwise
defined in this Agreement shall have the meanings set forth in the Environmental Indemnity
Agreement. Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and
hold harmless each of the Indemnified Parties for, from and against any and all claims, suits,
liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations,
debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, charges, fees,
expenses, judgments, awards, amounts paid in settlement and damages of whatever kind or nature
(including, without limitation, attorneys’ fees, court costs and other costs of defense)
(collectively, “Losses”) (excluding Losses suffered by an Indemnified Party directly arising out of
such Indemnified Party’s gross negligence or willful misconduct; provided, however, that the term
“gross negligence” shall not include gross negligence imputed as a matter of law to any of the
Indemnified Parties solely by reason of Borrower’s interest in the Premises or Borrower’s failure
to act in respect of matters which are or were the obligation of Borrower under the Loan Documents
and the Development Documents), and costs of Remediation (whether or not performed voluntarily),
engineers’ fees, environmental consultants’ fees, and costs of investigation (including but not
limited to sampling, testing, and analysis of soil, water, air, building materials and other
materials and substances whether solid, liquid or gas) imposed upon or incurred by or asserted
against any Indemnified Parties, and directly or indirectly arising out of or in any way relating
to any one or more of the following: (1) any presence of any Hazardous Materials in, on, above, or
under the Premises introduced to the Premises prior to or during the ownership of the Premises by
Borrower; (2) any past, present or Threatened Release in, on, above, under or from the Premises
regarding Hazardous Materials introduced to the Premises prior to or during the ownership of the
Premises by Borrower; (3) any activity by Borrower, any person or entity affiliated with Borrower
or any tenant or other user of the Premises in connection with any actual, proposed or threatened
use, treatment, storage, holding, existence, disposition or other Release, generation, production,
manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or
transportation to or from the Premises of any Hazardous Materials at any time located in, under, on
or above the Premises; (4) any activity by Borrower, any person or entity affiliated with Borrower
or any tenant or other user of the Premises in connection with any actual or proposed Remediation
of any Hazardous Materials at any time located in, under, on or above the Premises, whether or not
such Remediation is voluntary or pursuant to court or administrative order, including but not
limited to any removal, remedial or corrective action; (5) any past, present or threatened
non-compliance or violations of any Environmental Laws (or permits issued pursuant to any
Environmental Law) in connection with the Premises or operations thereon, regarding Hazardous
Materials introduced to the Premises prior to or during the ownership of the Premises by Borrower,
including but not limited to any failure by Borrower, any person or entity affiliated with Borrower
or any tenant or other user of the Premises to comply with any order of any Governmental Authority
in connection with any Environmental Laws; (6) the imposition, recording or filing or the
threatened imposition, recording or filing of any Environmental Lien encumbering the Premises
regarding Hazardous Materials introduced to the Premises prior to or during the ownership of the
Premises by Borrower; (7) any administrative processes or proceedings or judicial proceedings in
any way connected with any matter addressed in this Agreement; (8) any past, present or threatened
injury to, destruction of or loss of natural resources in any way connected with the Premises
regarding Hazardous Materials introduced to the Premises prior to or during the ownership of the
Premises by Borrower, including but not limited to costs to investigate and assess such injury,
destruction or loss; (9) any acts of Borrower, any person or entity affiliated with Borrower or any
tenant or other user of the Premises in arranging for disposal or treatment, or arranging with a
transporter for transport for disposal or treatment, of Hazardous Materials

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owned or possessed by Borrower, any person or entity affiliated with Borrower or any tenant or
other user, at any facility or incineration vessel owned or operated by another person or entity
and containing such or similar Hazardous Materials; (10) any acts of Borrower, any person or entity
affiliated with Borrower or any tenant or other user of the Premises, in accepting any Hazardous
Materials for transport to disposal or treatment facilities, incineration vessels or sites selected
by Borrower, any person or entity affiliated with Borrower or any tenant or other user of the
Premises, from which there is a Release, or a Threatened Release of any Hazardous Materials which
causes the incurrence of costs for Remediation; (11) any personal injury, wrongful death, or
property damage arising under any statutory or common law or tort law theory regarding Hazardous
Materials introduced to the Premises prior to or during the ownership of the Premises by Borrower,
including but not limited to damages assessed for the maintenance of a private or public nuisance
or for the conducting of an abnormally dangerous activity on or near the Premises; (12) any
disclosures of information, financial or otherwise, (x) made by (i) Lender or Lender’s employees,
officers, agents and designees to Franchisor or any third party as contemplated by Section 11.R of
this Agreement, or (ii) any employee, officer, agent or representative of Franchisor to Lender or
any other Indemnified Party, or (y) obtained from any credit reporting agency with respect to
Borrower, any guarantor of the Loan, any Affiliate of Borrower, any of the other Borrower Parties
or any operator or lessee of the Premises; or (13) any misrepresentation or inaccuracy in any
representation or warranty by Borrower or material breach or failure to perform by Borrower of any
covenants or other obligations pursuant to this Agreement. Notwithstanding the above, Borrower
shall not be liable for the acts of tenants or other users occurring after the Borrower no longer
owns the Premises.

     B. Excluding losses suffered by Lender directly arising out of Lender’s gross negligence or
willful misconduct; provided, however, that the term “gross negligence” shall not include gross
negligence imputed as a matter of law to Lender solely by reason of Borrower’s interest in the
Premises or Borrower’s failure to act in respect of matters which are or were the obligation of
Borrower under the Loan Documents, Borrower fully and completely releases, waives and covenants not
to assert any claims, liabilities, actions, defenses, challenges, contests or other opposition
against Lender, however characterized, known or unknown, foreseen or unforeseen, now existing or
arising in the future, relating to this Agreement and any Hazardous Materials, Releases or
Remediation on, at or affecting the Premises.

     11. Miscellaneous Provisions.

     A. Notices. All notices, consents, approvals or other instruments required or permitted to be
given by either party pursuant to this Agreement or any of the other Loan Documents shall be in
writing and given by (i) hand delivery, (ii) facsimile, (iii) express overnight delivery service or
(iv) certified or registered mail, return receipt requested, and shall be deemed to have been
delivered upon (a) receipt, if hand delivered, (b) transmission, if delivered by facsimile, (c) the
next Business Day, if delivered by express overnight delivery service, or (d) the third Business
Day following the day of deposit of such notice with the United States Postal Service, if sent by
certified or registered mail, return receipt requested. Notices shall be provided to the parties
and addresses (or facsimile numbers, as applicable) specified below. If to Borrower: Summit Hotel
Properties, LLC, 2701 S. Minnesota Avenue, Suite 6, Sioux Falls, South Dakota 57105, Attention:
Hulyn Farr, Telephone: (605) 361-9566, Telecopy: (605) 362-9388; and if to Lender: General Electric
Capital Corporation, 8377 East Hartford Drive, Suite 200 Scottsdale, Arizona 85255, Attention:
Collateral Management, Telephone: 480-585-4500, Telecopy: 480-585-2225.

     B. Real Estate Commission. Lender and Borrower represent and warrant to each other that they
have dealt with no real estate or mortgage broker, agent, finder or other intermediary in
connection with the transactions contemplated by this Agreement or the other Loan Documents. Lender
and Borrower shall indemnify and hold each other harmless from and against any costs, claims or
expenses, including attorneys’ fees, arising out of the breach of their respective representations
and warranties contained within this Section.

     C. Waiver and Amendment; Document Review. (1) No provisions of this Agreement or the other
Loan Documents shall be deemed waived or amended except by a written instrument

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unambiguously setting forth the matter waived or amended and signed by the party against which
enforcement of such waiver or amendment is sought. Waiver of any matter shall not be deemed a
waiver of the same or any other matter on any future occasion.

     (2) In the event Borrower makes any request upon Lender requiring Lender or Lender’s attorneys
to review or prepare (or cause to be reviewed or prepared) any documents, plans, specifications or
other submissions in connection with or arising out of this Agreement or any of the other Loan
Documents, then Borrower shall (a) reimburse Lender promptly upon Lender’s demand for all
out-of-pocket costs and expenses incurred by Lender in connection with such review or preparation,
including, without limitation, reasonable attorneys’ fees, and (b) pay Lender a reasonable
processing and review fee.

     D. Captions. Captions are used throughout this Agreement and the other Loan Documents for
convenience of reference only and shall not be considered in any manner in the construction or
interpretation hereof.

     E. Lender’s Liability. Notwithstanding anything to the contrary provided in this Agreement or
the other Loan Documents, it is specifically understood and agreed, such agreement being a primary
consideration for the execution of this Agreement and the other Loan Documents by Lender, that (1)
there shall be absolutely no personal liability on the part of any shareholder, director, officer
or employee of Lender, with respect to any of the terms, covenants and conditions of this Agreement
or the other Loan Documents, (2) Borrower waives all claims, demands and causes of action against
Lender’s officers, directors, employees and agents in the event of any breach by Lender of any of
the terms, covenants and conditions of this Agreement or the other Loan Documents to be performed
by Lender and (3) Borrower shall look solely to the assets of Lender for the satisfaction of each
and every remedy of Borrower in the event of any breach by Lender of any of the terms, covenants
and conditions of this Agreement or the other Loan Documents to be performed by Lender, such
exculpation of liability to be absolute and without any exception whatsoever.

     F. Severability. The provisions of this Agreement and the other Loan Documents shall be deemed
severable. If any part of this Agreement or the other Loan Documents shall be held invalid, illegal
or unenforceable, the remainder shall remain in full force and effect, and such invalid, illegal or
unenforceable provision shall be reformed by such court so as to give maximum legal effect to the
intention of the parties as expressed therein.

     G. Construction Generally. This Agreement and the other Loan Documents have been entered into
by parties who are experienced in sophisticated and complex matters similar to the transaction
contemplated by this Agreement and the other Loan Documents and are entered into by both parties in
reliance upon the economic and legal bargains contained therein and shall be interpreted and
construed in a fair and impartial manner without regard to such factors as the party which prepared
the instrument, the relative bargaining powers of the parties or the domicile of any party.
Borrower and Lender were each represented by legal counsel competent in advising them of their
obligations and liabilities hereunder.

     H. Further Assurances. Borrower will, at its sole cost and expense, do, execute, acknowledge
and deliver or cause to be done, executed, acknowledged and delivered all such further acts,
documents, conveyances, notes, mortgages, deeds of trust, assignments, security agreements,
financing statements and assurances as Lender shall from time to time reasonably require or deem
advisable to carry into effect the purposes of this Agreement and the other Loan Documents, to
perfect any lien or security interest granted in any of the Loan Documents and for the better
assuring and confirming of all of Lender’s rights, powers and remedies under the Loan Documents.

     I. Attorneys’ Fees. In the event of any judicial or other adversarial proceeding between the
parties concerning this Agreement or the other Loan Documents, the prevailing party shall be
entitled to

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recover its reasonable attorneys’ fees and other costs in addition to any other relief to which it
may be entitled.

     J. Entire Agreement. This Agreement and the other Loan Documents, together with any other
certificates, instruments or agreements to be delivered in connection therewith, constitute the
entire agreement between the parties with respect to the subject matter hereof, and there are no
other representations, warranties or agreements, written or oral, between Borrower and Lender with
respect to the subject matter of this Agreement and the other Loan Documents. Notwithstanding
anything in this Agreement and the other Loan Documents to the contrary, with respect to the
Premises, upon the execution and delivery of this Agreement by Borrower and Lender, any bid
proposals or loan commitments with respect to the transactions contemplated by this Agreement shall
be deemed null and void and of no further force and effect and the terms and conditions of this
Agreement shall control notwithstanding that such terms and conditions may be inconsistent with or
vary from those set forth in such bid proposals or loan commitments.

     K. Forum Selection; Jurisdiction; Venue; Choice of Law. Borrower acknowledges that this
Agreement and the other Loan Documents were substantially negotiated in the State of Arizona, this
Agreement and the other Loan Documents were executed by Lender in the State of Arizona and
delivered by Borrower in the State of Arizona, all payments under the Note will be delivered in the
State of Arizona and there are substantial contacts between the parties and the transactions
contemplated herein and the State of Arizona. For purposes of any action or proceeding arising out
of this Agreement or any of the other Loan Documents, the parties hereto hereby expressly submit to
the jurisdiction of all federal and state courts located in the State of Arizona and Borrower
consents that it may be served with any process or paper by registered mail or by personal service
within or without the State of Arizona in accordance with applicable law. Furthermore, Borrower
waives and agrees not to assert in any such action, suit or proceeding that it is not personally
subject to the jurisdiction of such courts, that the action, suit or proceeding is brought in an
inconvenient forum or that venue of the action, suit or proceeding is improper. It is the intent of
the parties hereto that all provisions of this Agreement and the Note shall be governed by and
construed under the laws of the State of Arizona, without giving effect to its principles of
conflicts of law. To the extent that a court of competent jurisdiction finds Arizona law
inapplicable with respect to any provisions of this Agreement or the Note, then, as to those
provisions only, the laws of the state where the Premises is located shall be deemed to apply.
Nothing in this Section shall limit or restrict the right of Lender to commence any proceeding in
the federal or state courts located in the state in which the Premises is located to the extent
Lender deems such proceeding necessary or advisable to exercise remedies available under this
Agreement or the other Loan Documents.

     L. Counterparts. This Agreement and the other Loan Documents may be executed in one or more
counterparts, each of which shall be deemed an original.

     M. Assignments by Lender; Binding Effect. Lender may assign in whole or in part its rights
under this Agreement, including, without limitation, in connection with any Transfer, Participation
or Securitization. Upon any unconditional assignment of Lender’s entire right and interest,
including all Lender’s duties and obligations, hereunder, Lender shall automatically be relieved,
from and after the date of such assignment, of liability for the performance of any obligation of
Lender contained herein. This Agreement and the other Loan Documents shall be binding upon and
inure to the benefit of Borrower and Lender and their respective successors and permitted assigns,
including, without limitation, any United States trustee, any debtor in possession or any trustee
appointed from a private panel.

     N. Survival. Except for the conditions of Closing set forth in Section 4, which shall be
satisfied or waived as of the Closing Date, all representations, warranties, agreements,
obligations and indemnities of Borrower and Lender set forth in this Agreement and the other Loan
Documents shall survive the Closing.

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     O. Waiver of Jury Trial and Punitive, Consequential, Special and Indirect Damages. BORROWER
AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR ITS SUCCESSORS WITH
RESPECT TO ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, ANY OF THE OTHER LOAN
DOCUMENTS OR ANY DOCUMENT CONTEMPLATED HEREIN OR RELATED HERETO. THIS WAIVER BY THE PARTIES HERETO
OF ANY RIGHT EITHER MAY HAVE TO A TRIAL BY JURY HAS BEEN NEGOTIATED AND IS AN ESSENTIAL ASPECT OF
THEIR BARGAIN. FURTHERMORE, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT EITHER MAY HAVE TO SEEK PUNITIVE, CONSEQUENTIAL, SPECIAL AND INDIRECT DAMAGES FROM
THE OTHER AND ANY OF THE OTHER’S AFFILIATES, OFFICERS, DIRECTORS OR EMPLOYEES OR ANY OF THEIR
SUCCESSORS WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM BROUGHT BY EITHER PARTY AGAINST THE OTHER OR ANY OF THE OTHER’S AFFILIATES, OFFICERS,
DIRECTORS OR EMPLOYEES OR ANY OF THEIR SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS OR ANY DOCUMENT CONTEMPLATED HEREIN
OR RELATED HERETO. THE WAIVER BY BORROWER AND LENDER OF ANY RIGHT THEY MAY HAVE TO SEEK PUNITIVE,
CONSEQUENTIAL, SPECIAL AND INDIRECT DAMAGES HAS BEEN NEGOTIATED BY THE PARTIES HERETO AND IS AN
ESSENTIAL ASPECT OF THEIR BARGAIN.

     P. Transfers, Participations and Securitizations. (1) A material inducement to Lender’s
willingness to complete the transactions contemplated by the Loan Documents is Borrower’s agreement
that Lender may, at any time, complete a Transfer, Participation or Securitization with respect to
the Note, Mortgage or any of the other Loan Documents or any or all servicing rights with respect
thereto.

     (2) Borrower agrees to cooperate in good faith with Lender in connection with any such
Transfer, Participation or Securitization of the Note, Mortgage or any of the other Loan Documents,
or any or all servicing rights with respect thereto, including, without limitation (a) providing
such documents, financial and other data, and other information and materials (the “Disclosures”)
which would typically be required with respect to the Borrower Parties and the Manager by a
purchaser, transferee, assignee, servicer, participant, investor or rating agency involved with
respect to such Transfer, Participation or Securitization, as applicable; provided, however, the
Borrower Parties, and the Manager shall not be required to make Disclosures of any confidential
information or any information which has not previously been made public unless required by
applicable federal or state securities laws; and (b) amending the terms of the transactions
evidenced by the Loan Documents to the extent necessary so as to satisfy the requirements of
purchasers, transferees, assignees, servicers, participants, investors or selected rating agencies
involved in any such Transfer, Participation or Securitization, so long as such amendments would
not have a Material Adverse Effect upon the Borrower Parties or the transactions contemplated
hereunder. Lender shall be responsible for preparing at its expense any documents evidencing the
amendments referred to in the preceding subitem (b).

     (3) Borrower consents to Lender providing the Disclosures, as well as any other information
which Lender may now have or hereafter acquire with respect to the Premises or Manager or the
financial condition of the Borrower Parties to each purchaser, transferee, assignee, servicer,
participant, investor or rating agency involved with respect to each Transfer, Participation or
Securitization, as applicable. Lender and Borrower (and their respective Affiliates) shall each pay
their own attorneys’ fees and other out-of-pocket expenses incurred in connection with the
performance of their respective obligations under this Section.

     (4) Notwithstanding anything to the contrary contained in this Agreement or the other Loan
Documents: (a) an Event of Default or a breach or default, after the passage of all applicable
notice and cure or grace periods, under any Loan Document or Other Agreement which relates to a
loan or

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sale/leaseback transaction which has not been the subject of a Securitization, Participation or
Transfer shall not constitute an Event of Default or a breach or default, as applicable, under any
Loan Document or Other Agreement which relates to a loan which has been the subject of a
Securitization, Participation or Transfer; (b) an Event of Default or a breach or default, after
the passage of all applicable notice and cure or grace periods, under any Loan Document or Other
Agreement which relates to a loan which is included in any Loan Pool shall not constitute an Event
of Default or a breach or default, as applicable, under any Loan Document or Other Agreement which
relates to a loan which is included in any other Loan Pool; (c) the Loan Documents and Other
Agreement corresponding to the loans in any Loan Pool shall not secure the obligations of any of
the Borrower Parties contained in any Loan Document or Other Agreement which does not correspond to
a loan in such Loan Pool; and (d) the Loan Documents and Other Agreement which do not correspond to
a loan in any Loan Pool shall not secure the obligations of any of the Borrower Parties contained
in any Loan Document or Other Agreement which does correspond to a loan in such Loan Pool.

     Q. Estoppel Certificate. At any time, and from time to time, each party agrees, promptly and
in no event later than fifteen (15) days after a request from the other party, to execute,
acknowledge and deliver to the other party a certificate in the form supplied by the other party,
certifying: (a) to its knowledge, whether there are then any existing defaults by it or the other
party in the performance of their respective obligations under this Agreement or any of the other
Loan Documents, and, if there are any such defaults, specifying the nature and extent thereof; (b)
that no notice of default has been given or received by it under this Agreement or any of the other
Loan Documents which has not been cured, except as to defaults specified in the certificate; (c)
the capacity of the person executing such certificate, and that such person is duly authorized to
execute the same on behalf of it; and (d) any other information reasonably requested by the other
party in connection with this Agreement and the other Loan Documents.

     R. Borrower authorizes its banks, creditors, suppliers, customers, and Franchisor to disclose
and release to Lender and its representatives any and all information they may request from time to
time regarding (a) any depository, loan or other credit account of Borrower; (b) the status of the
Franchise Agreement; (c) the affairs and financial condition of Borrower, any other Borrower Party,
or any operator or lessee of the Premises; and (d) the business operations at the Premises,
including unit level and entity level operating results. Borrower also authorizes Lender and its
representatives to obtain personal and business credit reports and asset reports with respect to
Borrower and the other Borrower Parties and to answer questions about its credit experience with
Borrower and the other Borrower Parties. All of the information which Lender or its representatives
obtain from time to time in accordance with this Section, together with any and all other
information which Lender or its representatives now possess or in the future may acquire with
respect to Borrower, any of the other Borrower Parties, the Collateral, or the business operations
at the Premises, is referred to collectively as the “Borrower Information.” Borrower authorizes
Lender to disclose the Borrower Information to (i) Lender’s Affiliates and professional advisors
and consultants; (ii) Franchisor, upon written request by Franchisor; and (iii) any proposed
transferee, purchaser, assignee, servicer, participant, investor, or ratings agency, with respect
to any proposed Lender Transfer or sale of any of the Collateral. Borrower also authorizes to
distribute to, or publish for the use by, any third-parties for statistical analysis purposes the
unit-level or corporate level operating results for the Premises and Borrower prepared by Lender
from financial statements obtained from Borrower; provided, however, that such results shall not be
identified as relating to Borrower or any of the other Borrower Parties.

GECC Contract No. 31919

GECC Property No. 8004-6599

Denver, Colorado

22

 

     IN WITNESS WHEREOF, Borrower and Lender have entered into this Agreement as of the date first
above written.

	 	 	 	 	 	 	 

	 	 	LENDER:
	 
	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Kelly A. Hallford
 

	 	 
	 

	 	 	 	Printed Name: Kelly A. Hallford	 	 
	 

	 	 	 	Its: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	SUMMIT HOTEL PROPERTIES, LLC,
	 	 	a South Dakota limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kerry W. Boekelheide
 

	 	 
	 

	 	 	 	Printed Name: Kerry W. Boekelheide	 	 
	 

	 	 	 	Its: Chief Executive Officer	 	 

GECC Contract No. 31919

GECC Property No. 8004-6599

Denver, Colorado

23

 

	 	 	 	 	 	 	 

	STATE OF ARIZONA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF MARICOPA

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on April 27, 2007 by Kelly A.
Hallford, Authorized Signatory of General Electric Capital Corporation, a Delaware
corporation, on behalf of the corporation.

	 	 	 

	/s/ Debbie L. Mitchell
 

	 	 
	Notary Public
	 	 

My Commission Expires:

11/4/2007

	 	 	 	 	 	 	 

	STATE OF SOUTH DAKOTA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF MINNEHAHA

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on April 25, 2007 by Kerry W.
Boekelheide, CEO of Summit Hotel Properties, LLC, a South Dakota limited liability
company, on behalf of the limited liability company.

	 	 	 

	/s/ Jennifer L. Larsen
 

	 	 
	Notary Public
	 	 

My Commission Expires:

8/20/10

GECC Contract No. 31919

GECC Property No. 8004-6599

Denver, Colorado

24

 

EXHIBIT A

DESCRIPTION OF PREMISES

Lot 1, Block 1, Denver International Business Center Filing No. 6, according to the recorded plat
thereof, City and County of Denver, State of Colorado.

GECC Contract No. 31919

GECC Property No. 8004-6599

Denver, Colorado

25

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