Document:

EX-10.1 Long Term Incentive Plan

 

Exhibit 10.1

CSX 2007—2009 Long Term Incentive Plan

Effective Date and Term

The CSX 2007—2009 Long Term Incentive Plan (the “2007—2009 LTIP” or the “Plan”), effective May 1,
2007 (the “Effective Date”), is the vehicle pursuant to which CSX Corporation (“CSX”) awards
Performance Grants, as described in Section 8 of the CSX Omnibus Incentive Plan. The 2007—2009
LTIP Cycle (the “2007—2009 Cycle” or “Cycle”) commences on the Effective Date and ends December
25, 2009.

Purpose and Objective

The purpose of the 2007—2009 LTIP is to reward eligible employees for their contribution to the
attainment of a lower Operating Ratio which is intended to result in CSX share price appreciation.
Performance Grants are issued based on an employee’s job position, accountability, and the
potential to impact CSX’s financial results.

The Plan seeks to motivate and reward employees through the issuance of Performance Grants pursuant
to which payouts (sometimes referred to as the “Performance Awards”) are made based on CSX’s 2009
Operating Ratio (“Operating Ratio”). Performance Awards will be in the form of CSX common stock.

Eligibility and Participation

Active employees of CSX or a participating affiliate (the Company or collectively, the “Companies”)
in salary Band 06 and above as of the Effective Date shall participate in the 2007—2009 LTIP
(“Participants”) and shall receive Performance Grants in accordance with the dollar value schedule
approved by the Compensation Committee of CSX’s Board of Directors (the “Compensation Committee”).
The CSX Compensation and Benefits Department calculates the Performance Grants granted to each
salary band level (“Bands”). The Performance Grant schedule will be maintained in the office of the
Plan Administrator.

Employees hired or promoted into Band 06 and above after the Effective Date and before the end of
the 2007—2009 Cycle will receive a pro rata allocation of Performance Grants based on their
participation (and status as full time or part-time). Participants who are moved to a higher or
lower Band during the Cycle will receive a pro rata reallocation of Performance Grants pertaining
to each applicable Band based upon the number of months of participation in each Band relative to
the number of months in the Cycle. The same pro rata method will be used for employees who
transfer between union and non-union employment. For purposes of the pro rata calculation,
participation begins on the 1st day of the month following the date the Participant was
hired, promoted, demoted, or transferred. Notwithstanding the preceding sentence, any Participant
who is hired at or promoted to a salary level making such Participant a “covered employee” under
Internal Revenue Code Section 162(m) must have had a period of service of at least 3 months to
qualify for a Performance Grant at that level. In such cases, the pro rata calculation shall be
made as of the date of hire or promotion.

Plan Design 

General

Under the 2007—2009 LTIP, the Compensation Committee approves the value of incentive
compensation granted to each Band. The number of Performance Grants

 

 

granted to each Band is calculated by the Compensation and Benefits Department using the
fair market value of CSX stock on May 1, 2007.

Operating Ratio

Operating Ratio is the single performance measure (but E-Team Participants have additional
measures). Operating Ratio is defined as annual surface transportation operating expenses
divided by surface transportation revenue of CSX’s rail and intermodal businesses.
Operating Ratio is calculated excluding nonrecurring items disclosed in the financial
statements. Using this measure to determine payout levels reinforces the correlation
between an improving Operating Ratio and an increasing stock price. Efforts to improve the
Operating Ratio aligns CSX’s business objectives in a line-of-sight way that allows
individuals to equate personal actions to desired performance outcomes. Each Plan
Participant should be motivated to grow revenue, reduce expense, improve service, increase
productivity, improve safety, and increase asset utilization and rationalization.

As the price of oil has a significant impact on the Operating Ratio but not necessarily
Operating Income because of CSX’s ability to pass a portion of the cost of oil on to
customers, the Operating Ratio targets vary based on the average cost of oil per barrel
outside the “collar” for 2009. The chart in Exhibit A reflects the Operating Ratio targets
and related Performance Awards at various WTI/Barrel prices of oil and provides a payout
example.

Performance Awards 

As shown in the Performance Measure Table in Exhibit A, Performance Awards are paid out as a
percentage of a Participant’s Performance Grant units based upon the applicable CSX 2009 Operating
Ratio discussed above.

All Performance Awards will be paid in CSX stock, except that fractional shares will be paid in
cash.

Terms of Performance Award

Performance Awards will be paid only to Participants who are actively employed by the
Companies on the date of payout for the 2007—2009 LTIP. Except as provided below, all
other Participants whose employment terminates prior to the payout date shall forfeit any
and all Performance Grants and thus receive no Performance Award. All Performance Awards
will be payable no later than the March 15 following the end of the Cycle.

A Participant, whose employment terminates due to death, disability, or retirement, shall
be eligible to receive a pro rata Award under the LTIP if the Participant would have
received a Payment Award had there been no death, disability, or retirement. In the case
of death, such Performance Awards shall be made to the Participant’s estate, or as
otherwise directed by law. If a Participant is due to receive a pro rata Performance
Award under this paragraph but prior to payment engages in any prohibited conduct involving
moral turpitude discussed further below or violates the conditions stated in (i) through
(v) of the Claw Back Provision contained herein, all Performance Grants shall be forfeited.

Participants whose hours are reduced so that they are no longer full time active employees
during the 2007—2009 Cycle, as a result of a phased retirement or similar program at the
request of or with the consent of CSX, shall be entitled to a pro rata

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Performance Award to the date of such change and a pro rata reduced Performance Award for
the remaining portion of such 2007—2009 Cycle they work based on their reduced hours.
For purposes of this provision, an employee who retires under the CSX Pension Plan or the
Special Retirement Plan for CSX Corporation and Affiliated Companies is considered retired.

A Participant who commits an act involving moral turpitude that adversely affects the
reputation or business of the Companies shall forfeit any Performance Grant. Examples of
acts of moral turpitude include dishonesty or fraud involving the Companies, their
employees, vendors or customers and violations of CSX’s Code of Ethics.

Taxation of Performance Awards

Performance Awards will be paid in shares of CSX common stock. The value received by the
Participant is taxable income, so CSX is required to withhold income taxes at the
prescribed rates for both supplemental income and employment taxes at the time the
Performance Awards are paid. Thus, CSX will withhold the minimum number of shares equal in
value to such required amount and no additional amount (shares) will be withheld.
Fractional shares will be paid in cash. The following is an example of the withholding
calculation:

Example:

	 	•	 	Assume the Performance Award earned is 300 shares.
	 
	 	•	 	Assume the stock price at payout is $50.00.
	 
	 	•	 	Assume the aggregate income tax withholding rate and payroll tax is 32%.

	 	 	 	 	 	 	 	 	 
	Gross Performance Award
	 	300 shares	 	$	15,000	 
	Stock Withholding
	 	96 shares	 	$	4,800	 
	Net Performance Award
	 	204 shares	 	$	10,200	 

Participants in the CSX Executive Deferred Compensation Plan may defer receipt of
Performance Awards.

No Performance Award is considered earned under the Plan until the Compensation Committee
approves the payout.

Plan Administration

The Senior Vice President — Human Resources and Labor Relations of CSX shall be the Plan
Administrator and shall interpret and construe the provisions of the Plan subject to the terms of
the CSX Omnibus Incentive Plan and the Compensation Committee’s authority and responsibility under
the CSX Omnibus Incentive Plan and Section 162(m) of the Internal Revenue Code of 1986.

Plan Amendments and Termination

Consistent with Section 162(m) of the Internal Revenue Code, the Compensation Committee reserves
the right to terminate, adjust, amend, or suspend the Plan at any time and at its sole discretion.

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Claw Back Provision

The Claw Back Provision discussed herein applies only to Participants in Band 10 and above
(including retirees from Band 10 and above).

If such Participant receives a Performance Award, the following terms and conditions shall apply
for the subsequent two-year period from the payout (whether or not such Participant continues to be
employed by the Company).

Such Participants, shall

	 	(i)	 	not, without written Company consent, work for a Class I railroad in a
capacity similar to the function performed over the 5 years prior to termination; or
for a customer or supplier for whom the Participant has had direct work responsibility
in the prior 12 months in a capacity similar to the functions performed over the 5
years prior to termination;
	 
	 	(ii)	 	not, without written Company consent, solicit employees to work for a
competitor in a capacity similar to such solicited employee’s capacity;
	 
	 	(iii)	 	not, without written Company consent, solicit the Companies’ customers on
behalf of a competitor;
	 
	 	(iv)	 	not, without written Company consent, act in a manner adversarial or in any
way contrary to the best interests of the Company; (for example, testifying as an
expert witness or becoming associated with a union or law firm that takes positions
adverse to the Companies);
	 
	 	(v)	 	provide the Company with information or documentation showing compliance with
conditions (i), (ii), (iii), and (iv) stated above, if requested by the Plan
Administrator.

If a Participant breaches any of the conditions set forth above in this Claw Back Provision, the
Participant shall repay to the Company an amount equal to value of the Performance Award. The
value of the Performance Award is measured by the amount reported as taxable compensation for
federal income tax purposes. Any amount due hereunder shall be paid by the Participant within
thirty (30) days of notice by the Company to the Participant that the Participant has breached a
condition stated above.

In the event of Company accounting irregularities discovered within 2 years after receipt of
Performance Awards, which requires the Company to materially restate its financial statements, the
Participant shall repay all amounts in excess of the proper Award as determined under the restated
financial statements.

By accepting a Performance Award, the Participant authorizes the Company to withhold, to the extent
permitted by law, the amount it may otherwise owe to the Participant in any other capacity
whatsoever. In cases where all or part of the Performance Award is deferred under the CSX Executive
Deferred Compensation Plan, breach of these conditions shall result in an immediate forfeiture of
the portion deferred—including any earnings thereon from the date of deferral.

The Claw Back provision shall not survive any change in control event as defined in the CSX Omnibus
Incentive Plan ocurring during the Cycle.

Consideration for Noncompete Agreement

In consideration for eligibility under this 2007—2009 LTIP, Employees in Band 10 and above also
must enter into the Noncompete Agreement that was enclosed with the Plan materials sent to
Participants at the time of eligibility for the Plan. Eligibility in the 2007—2009 LTIP for
Employees in Band 10 and above is conditioned upon entering into such Noncompete Agreement.

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Miscellaneous

The adoption of the 2007—2009 LTIP does not imply any commitment to continue the Plan or any other
long term incentive compensation plan for any succeeding year or period. Neither the Plan, nor any
Performance Grant or Performance Award made under the Plan shall create any employment contract or
relationship between the Companies and any Participant.

CSX Executive Team

The additional financial performance measure of cumulative Operating Income1 shall apply
to the CSX Executive Team (“E-Team”). The table in Exhibit B “Additional E-Team Financial Measure
of Operating Income” sets forth adjustments to the payout otherwise determined in accordance with
Exhibit A “Performance Measure: 2009 Operating Ratio”. The Compensation Committee, in its
discretion, may also reduce any payout otherwise earned by an E-Team Participant by up to 30% based
upon certain of CSX’s strategic initiatives set forth in Exhibit B.

Except as provided above, the 2007—2009 LTIP will be administered for E-Team Participants in the
same manner as for other Plan Participants.

 

			
	1	 	Operating Income equals the cumulative (i.e.,
2007-2009) surface transportation revenue of CSX’s rail and intermodal
businesses, minus their surface transportation operating expenses. Examples of
non surface transportation income and expenses include interest income and
expense, income tax expense, and income from real estate and resort operations.
For purposes of this definition, Operating Income excludes nonrecurring revenue
or expense items disclosed in the CSX financial statements for the Cycle.

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Exhibit A

Exhibit A contains specific quantitative or qualitative performance-related factors considered
by the Compensation Committee of the Board of Directors, or other factors or criteria involving
confidential trade secrets or confidential commercial or financial information, the disclosure of
which would result in competitive harm for CSX.

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Exhibit B

Exhibit B contains specific quantitative or qualitative performance-related factors considered
by the Compensation Committee of the Board of Directors, or other factors or criteria involving
confidential trade secrets or confidential commercial or financial information, the disclosure of
which would result in competitive harm for CSX.

7EX-10.1

 

Exhibit 10.1

LEASE AGREEMENT

     THIS LEASE AGREEMENT (the “Lease”) dated as of the 1st day of January, 2007, to be
effective as of the Commencement Date hereinafter set forth, is made and entered into by and
between NOBLEGENE DEVELOPMENT, LLC, a Tennessee limited liability company (the “Landlord”), and
BIOMIMETIC THERAPEUTICS, INC., a Delaware corporation (the “Tenant”).

     WHEREAS, Landlord has leased to the Tenant certain premises in the Building (as defined
hereinafter) as more particularly described in that certain Lease Agreement dated April 22, 2004,
between Landlord and Tenant (the “First Lease”);

     WHEREAS, Landlord and Tenant had amended the First Lease on July 22, 2005 (the “First
Amendment to First Lease”) to include additional space;

     WHEREAS; BioMimetic Pharmaceuticals, Inc. has changed its name to BioMimetic Therapeutics,
Inc.;

     WHEREAS, Tenant desires to lease the entire Building from Landlord in accordance with the
terms and conditions stated herein;

     WHEREAS; Landlord and Tenant hereby agree that this Lease shall replace in its entirety the
First Lease and the First Amendment to First Lease, and that the First Lease, as amended, shall be
terminated as of the Commencement Date of this Lease.

NOW THEREFOR; IT IS AGREED BY AND AMONG THE

PARTIES AS FOLLOWS:

ARTICLE 1.

LEASED PREMISES; TERM; COMMENCEMENT DATE

     1.1 Leased Premises and Common Areas. Upon and subject to the terms and conditions
hereinafter set forth, Landlord hereby leases, demises and lets to Tenant, and Tenant hereby
leases, rents and hires from Landlord, the following described property:

          (a) The Building, which contains the Rentable Square Feet (hereinafter defined) and which
sometimes hereinafter is referred to as the “Leased Premises” or the “Building”; and

          (b) a non-exclusive right in common with all other tenants and occupants of CSLSC, if any, to
use the Common Areas (as hereinafter defined) subject to the terms and conditions hereinafter set
forth. The Leased Premises and the Common Areas are sometimes hereinafter referred to collectively
as the “Facility.”

Page 1 of 38

 

     1.2 Term; Commencement Date; Certain Conditions.

          (a) The initial term of the Lease (the “Initial Term”) shall be for a period commencing at
12:01 a.m. on the 1st day of January, 2007 (the “Commencement Date”). This Lease shall remain in
effect for a period of Ten (10) calendar years, expiring at midnight on the date that is Ten (10)
calendar years from the Commencement Date. Tenant shall have the right to extend the term of this
Lease for a period of five (5) years (“First Extension Term”) by written notice to Landlord, no
later than January 1, 2016. The Base Rent for the first year of the First Extension Term shall be
the amount of the non-discounted, annual base rent paid by Tenant in the tenth year of the Initial
Term plus any increase as provided for in Section 3.2 of the Lease and escalating each year
thereafter as provided in Article 3. Additional Rent shall be paid as provided for in Article 4.
Thereafter, Tenant shall have the right to extend the term for an additional five (5) years
(“Second Extension Term”), upon twelve (12) months written notice to Landlord. The Base Rent for
the first year of the Second Extension Term shall be the amount of the non-discounted annual base
rent paid by Tenant in the fifth year of the First Extension Term plus any increase as provided for
in Section 3.2 and escalating each year thereafter as provided in Article 3. Additional
Rent shall be paid as provided for in Article 4. Upon the expiration of the Initial Term and all
Extension Terms (the “Term Expiration Date”), this Lease shall terminate as to the Facility.

          (b) For purposes of this Lease, “Lease Year” shall mean a period of twelve (12) successive
calendar months commencing on the Commencement Date and on the same date in each successive year
during the term of this Lease. The terms “Term of this Lease”, “Lease Term”, or “Term”, when
hereinafter used in this Lease, shall mean and include the Initial Term of this Lease, as the same
may be shortened by any early termination of this Lease, and, to the extent this Lease may be
extended or renewed, any Extension Term of this Lease.

ARTICLE 2.

GLOSSARY OF

     2.1 Definitions. For all purposes of this Lease, except as otherwise expressly provided or
unless the context otherwise requires, (i) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the singular, (ii) all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with
generally accepted accounting principles at the time applicable, consistently applied, (iii) all
references in this Lease to designated “Articles”, “Sections” and other subdivisions are to the
designated Articles, Sections and other subdivisions of this Lease and (iv) the words “herein”,
“hereof”, “hereinafter” and “hereunder” and other words of similar import refer to this Lease as a
whole and not to any particular Article, Section or other subdivision:

“Additional Rent” has the meaning set forth in Section 4.1.

“Award” means all compensation, sums or anything of value awarded, paid or received on a total or
partial Condemnation.

Page 2 of 38

 

“Building” means the entire building known as Building A of the CSLSC located at 389-A Nichol Mill
Lane, Franklin Tennessee.

“Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which national banks in the City of Nashville, Tennessee, are closed.

“Charge” has the meaning set forth in Article 11.

“CSLSC” shall mean the Cool Springs Life Sciences Center which consists of the Land, the Leased
Premises which are located on the Land, and all other buildings and other improvements now existing
or which shall exist at any time in the future upon such Land. (See Exhibit A.)

“CSLSC Total Square Footage” shall mean the total rentable square footage of all buildings,
including the Building now existing or which shall exist at any time in the future upon the Land,
for which Landlord is receiving rent.

“Commencement Date” has the meaning set forth in Section 1.2.

“Common Areas” shall mean the areas of the CSLSC that are designed for use in common by all tenants
of the CSLSC and their respective employees, agents, customers, invitees and others, and includes,
by way of illustration and not limitation, (i) entrances and exits, hallways and stairwells,
elevators, and restrooms for any improvement on the Land (unless such improvement is leased and/or
occupied in its entirety by a single tenant and/or occupant, in which case such areas shall not be
considered part of the Common Areas), (ii) sidewalks, driveways, parking areas, and landscaped
areas, and (iii) other areas as may be designated by Landlord as part of the Common Areas of the
CSLSC, all of which shall be subject to such nondiscriminatory rules and regulations as may be
adopted from time to time by Landlord.

“Condemnation” means the exercise of any governmental power of condemnation or eminent domain,
whether by legal proceedings or otherwise, by a Condemnor or the transfer of all or any part of the
Facility as a result thereof.

“Condemnor” means any public or quasi-public authority, or private corporation or individual,
having the power of Condemnation or on whose behalf the power of Condemnation is exercised.

“Event of Default” has the meaning set forth in Section 15.1.

“Facility” has the meaning set forth in Section 1.1(b).

“GAAP” means generally accepted accounting principles consistently applied.

“Hazardous Substance” means any hazardous or toxic substance, material, or waste which is or
becomes regulated by any local governmental authority, the State of Tennessee or the United States
Government, including, without limitation, (i) any substance, chemical or waste that is or shall be
listed or defined as hazardous, toxic or dangerous under Hazardous Materials Law, (ii) any other
chemical, material or substance, exposure to which is prohibited, limited or regulated

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by any federal, state or local governmental authority pursuant to any environmental, health and
safety or similar law code, ordinance, rule, regulation, order or decree and which may or could
pose a hazard to the health and safety of occupants or users of the Facility or any part thereof,
any adjoining property or cause damage to the environment, (iii) any petroleum products, (iv) PCBs,
(v) leaded paint, and (vi) asbestos.

“Hazardous Materials Law” shall include the Comprehensive Environmental Response, Compensation and
Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq., the Resource Conservation and Recovery Act
(“RCRA”), 42 U.S.C. § 6901 et seq., the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et
seq., the Clean Air Act, 42 U.S.C. § 7401 et seq., the Hazardous Materials Transportation Act, 49
U.S.C. § 1801 et seq, the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., and the Safe
Drinking Water Act, 42 U.S.C. § 300f through 300j26, as such Acts have been or are hereafter
amended from time to time; any so called superfund or super lien law; and any other federal, state
and local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to
or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste,
substance or material as now or any time hereafter in effect.

“Impositions” means, collectively, all taxes, payments in lieu of taxes, assessments and
governmental charges relating to the Leased Premises and/or the Common Areas as applicable,
including all ad valorem, real or personality, sales and use, gross receipts, privilege, rent or
similar taxes, assessments (including all assessments for public improvements or benefits), water,
sewer or other rents and charges, excises, tax levies, fees (including license, permit, inspection,
authorization and similar fees), and all other governmental charges, in each case whether general
or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of
the Leased Premises and/or the Common Areas as applicable (including all interest and penalties
thereon due to any failure in payment by Tenant), applicable to periods of time within the Term of
this Lease which at any time during or in respect of the Term hereof may be lawfully assessed or
imposed on or in respect of, or be a lien upon, (a) the Facility or any part thereof or any estate,
right, title or interest therein, or (b) any occupancy, operation, use or possession of, sales
from, or activity conducted on, or in connection with, the Facility or use of the Facility or any
part thereof, provided that nothing contained in this Lease shall be construed to require Tenant to
pay (1) any tax based on net income (whether denominated as a franchise or capital stock or other
tax) imposed on Landlord, (2) any transfer or net revenue tax of Landlord, and (3) any tax imposed
with respect to the sale, exchange or other disposition by Landlord of any portion of the Leased
Premises or the proceeds thereof.

“Initial Term” has the meaning set forth in Section 1.2.

“Insurance Requirements” means all terms of any insurance policy required by this Lease and all
requirements of the issuer of any such policy.

“Land” means the approximate 9.81 acres upon which the CSLSC is located.

“Landlord” means Noblegene Development, LLC, a Tennessee limited liability company, its successors
and permitted assigns.

Page 4 of 38

 

“Lease” means this Lease Agreement.

“Lease Year” has the meaning set forth in Section 1.2(b).

“Leased Premises” has the meaning set forth in Section 1.1(a).

“Legal Requirements” means all federal, state, county, municipal and other governmental statutes,
laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions affecting the
Leased Premises and/or the Facility, as applicable.

“Operating Costs” has the meaning set forth in Article 4.

“Overdue Rate” means, as of any date, a rate per annum equal to the Prime Rate as of such date,
plus three (3) percent, but in no event greater than the maximum interest rate then permitted under
applicable law.

“Payment Date” means any due date for the payment of the installments of Rent under this Lease.

“Primary Intended Use” has the meaning set forth in Section 6.1.

“Rent” has the cumulative meaning as set forth in Sections 3.1 and 3.2 and also
includes Additional Rent as defined in Section 4.1.

“Rentable Square Feet” means Thirty-Two Thousand (32,000) Square Feet of space rentable within the
Building and rented by Tenant herein.

“Replacement Property” has the meaning set forth in Section 8.1(e).

“Security Deposit” has the meaning given it in Section 4.6.

“Taking” means a taking during the Term hereof of all or part of the Leased Premises, or any
interest therein or right accruing thereto or use thereof, as the result of, or in settlement of
any Condemnation or other eminent domain proceeding affecting the Leased Premises, whether or not
the same shall actually have commenced.

“Tenant” means BioMimetic Therapeutics, Inc., a Delaware corporation, its successors and permitted
assigns.

“Tenant Rent Credit” has the meaning set forth in Section 9.3.

“Tenant Improvement Work” has the meaning set forth in Section 9.4.

“Tenant’s Personal Property” means all machinery, equipment, furniture, furnishings, computers,
signage, trade fixtures or other personal property and consumable inventory and

Page 5 of 38

 

supplies of Tenant used or useful in the operation of the Leased Premises for its Primary Intended
Use, together with all replacements and substitutions therefor.

“Unavoidable Delay” means delays due to strikes, picket lines, boycotts, lockouts, power failure,
acts of God, governmental acts or restrictions, war (whether or not declared), enemy action,
revolution, terrorism, riots, insurrections, civil commotion, fires, floods, freezes, accidents,
unavoidable casualty, inability to obtain materials or labor, scarcity or rationing of gasoline or
other fuel or vital products or personnel, or other causes reasonably beyond the control of the
party responsible for performing an obligation hereunder, provided that lack of funds shall not be
deemed a cause beyond the control of either party hereto.

“Unsuitable for Its Primary Intended Use” or “Unsuitable for Its Primary Intended Uses,” as used
anywhere in this Lease, shall mean that, by reason of damage or destruction, prohibition of use by
any governmental entity, or a partial Taking, in the good faith judgment of Landlord, reasonably
exercised, the Leased Premises cannot be operated on a commercially practicable basis for its
Primary Intended Use, taking into account, among other relevant factors, such as available parking,
the amount of square footage and the estimated revenue affected by such damage, destruction,
prohibition, or partial Taking.

ARTICLE 3.

RENT

     3.1 Base Rent. Tenant shall pay to Landlord, without notice or demand, in lawful money of the
United States of America, at Landlord’s address set forth herein or at such other place or to such
other person, firm or corporation as Landlord, from time to time, may designate in writing, Base
Rent for each Lease Year during the Term of this Lease in an annual amount equal to $18.21
multiplied by the Thirty-Two Thousand (32,000) rentable square feet within the Leased Premises, and
such amount shall be adjusted from time to time under the terms of this Lease. The annual Base
Rent, which for the first Lease Year shall be Five-Hundred Eighty-Two Thousand, Seven-Hundred
and Twenty and 00/100 Dollars ($582,720.00), shall be due and payable in twelve (12) equal
monthly installments in the amount of Forty-Eight Thousand, Five-Hundred and Sixty and 00/100
Dollars ($48,560.00) each, payable in advance, beginning on the Commencement Date and
continuing on the first day of each successive calendar month thereafter during the Term of this
Lease. If any payment of Rent owing by Tenant to Landlord after the Commencement Date shall not be
paid within five (5) days of the date when due, such unpaid amount shall be considered delinquent,
and shall (i) be assessed a late fee in the amount of five percent (5%) of the unpaid amount, and
(ii) bear interest at the Overdue Rate from the date such Rent payment was due to the date of
actual payment.

     3.2 Adjustments to Base Rent. Landlord and Tenant agree that Base Rent payable under this
Lease in accordance with Section 3.1 shall be subject to adjustment as set forth in this
Section 3.2. Beginning with the second Lease Year, Base Rent shall be adjusted to reflect
changes year to year in the Consumer Price Index (“CPI”) as set forth below. The basis for
computing the CPI adjustment shall be the unadjusted Consumer Price Index for all Urban Consumers -
all Items (1982-84=100) published by the Bureau of Labor Statistics of the United States Department
of Labor (the “Index"). The Index for the third calendar month preceding the

Page 6 of 38

 

beginning of the second Lease Year shall be the “Base Index Number.” The Index for the same
month in the year of the applicable Adjustment Date shall be the “Current Index Number.” On each
anniversary of the Commencement Date during the Term of this Lease (each such date an “Adjustment
Date"), Base Rent shall be adjusted as follows (a) by an increase of three percent (3%) of the then
current Base Rent or (b) if larger, by adjustment to reflect the increase in the CPI over the
preceding Lease Year, not to exceed five percent (5%). If Base Rent is to be increased pursuant to
clause (b), the new Base Rent shall be the product obtained by multiplying the Base Rent then in
effect (the “Initial Base Rent”) by a fraction the numerator of which is equal to the Current Index
Number and the denominator of which is equal to the Base Index Number. If the Index is not in
existence at the time of such determination, the parties shall use an equivalent price index as is
published by a comparable governmental agency in lieu of the Index or a mutually acceptable similar
price index as published by a non-governmental agency.

     3.3 Triple Net Lease. This is a triple net lease, except as expressly modified by the terms
and conditions of this Lease. With the exception of those items in Section 4.5 of this
Lease, the Rent shall be paid absolutely net to Landlord, so that this Lease shall yield to
Landlord the full amount of the installments of Base Rent and the payments of Additional Rent, as
hereinafter defined, throughout the entire Term. The covenant to pay Rent as set forth in this
Lease is independent of the covenants of Landlord hereunder. Tenant shall have no right of offset,
deduction, abatement, recoupment or charge under this Lease and shall pay all Rent as and when due
without any deduction whatsoever.

ARTICLE 4.

COSTS PAID BY TENANT

     4.1 Additional Rent; In addition to the Base Rent as set forth in Article 3 herein, Tenant
shall pay Landlord “Additional Rent,” which term shall be defined to include, but not be limited
to, the following:

          (a) All Operating Costs (as defined in Section 4.4) associated exclusively with Leased
Premises;

          (b) Tenant’s Proportionate Share (as defined in Section 4.2) of Operating Costs for
the CSLSC, the Land and the Common Areas, and which are not exclusively associated with a specific
building within the CSLSC;

          (c) any sum owed for separately metered utilities, if any, including, without limitation,
electricity, gas and telephone and data services;

          (d) to the extent paid by Landlord, all charges for insurance coverage required to be
maintained pursuant to Article 12 hereof during the Term of this Lease; and

          (e) any other sums owed by Tenant pursuant to the terms of this Lease or otherwise arising in
connection with Tenant’s occupancy of the Leased Premises.

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     Any other operating costs or expenses related to Tenant’s use and occupancy of the Leased
Premises that are paid directly by Tenant shall not be included in Additional Rent and
Landlord/Building Management shall not be responsible for any such services or other obligations,
of any kind whatsoever, related to these items.

     If Landlord subdivides and legally partitions the parcel of Land associated with planned
building B of the CSLSC, Tenant’s Proportionate Share of Operating Costs shall not include any
taxes or site maintenance for that subdivided and legally partitioned unimproved parcel of the Land
until such time improvements commence for the development and construction of building B.

     For purposes of this Lease, Base Rent and Additional Rent shall hereinafter be collectively
referred to as “Rent.”

     4.2 Proportionate Share. “Tenant’s Proportionate Share” shall mean the Rentable Square
Footage divided by the CSLSC Total Square Footage.

     As and when the Building shall become part of or shall include a complex or group of buildings
or structures collectively owned, leased or managed by or on behalf of Landlord or any of its
affiliates, Landlord may allocate among the buildings within the complex or group of buildings
those categories of Operating Costs which relate to any facilities which are for the common use or
benefit of the complex or group of buildings, among such buildings in accordance with sound
accounting and management principles and Section 4.1(b). Such common use or benefit
facilities shall include, but shall not necessarily be limited to, parking facilities and
driveways, sidewalks, connecting bridges and corridors, and other public areas that are not part of
a particular building within the complex or group, all of which are maintained for the common
benefit and use of buildings within the complex or group.

     4.3 Payment of Additional Rent. Tenant shall be responsible for and shall pay the Additional
Rent for all calendar years during the term of this Lease.

          (a) Prior to the beginning of each calendar year during the Term (or within thirty days of the
execution of this Lease for 2007), Landlord shall furnish Tenant with a statement of Landlord’s
good-faith estimate of the Additional Rent for such calendar year. By the first day of each month
thereafter during such calendar year, in addition to Base Rent due hereunder at such time, Tenant
shall pay a monthly installment equal to 1/12th of the Additional Rent as estimated and set forth
in such statement, if any, for such calendar year. If Landlord fails to deliver such statement
prior to January 1 of the applicable year, Tenant shall pay 1/12th of the Additional Rent for the
prior year, if any, until such statement is received. If Landlord furnishes Tenant such a
statement, to the extent the new estimate is greater than or less than the estimates paid to date
for such calendar year, a lump sum payment or credit shall be made in the next monthly payment to
adjust for such differential and, thereafter, Tenant shall pay 1/12th of the Additional Rent as set
forth in the new estimate.

          (b) Within thirty (30) days after the end of each calendar year during the Term, Landlord
shall furnish to Tenant a statement of actual Additional Rent for the previous

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calendar year (provided Landlord’s right to collect the Additional Rent shall not be affected
if Landlord fails to deliver such statement within such thirty (30) day period). Such statement of
actual Additional Rent shall include a detailed itemized monthly summary of Additional Rent charges
incurred during each month in sufficient detail to enable Tenant to understand to what each charge
relates. A lump sum payment (which payment shall be considered a payment of rent for all purposes)
will be made by Tenant, within thirty (30) days of the delivery of that statement, equal to the
excess, if any, of the actual amount of the Additional Rent over all amounts paid by Tenant
hereunder with respect to the Additional Rent for the preceding calendar year. If the amount of the
Additional Rent is less than the estimated amounts paid by Tenant hereunder with respect to the
Additional Rent for such calendar year, Landlord shall apply the difference (the “Overage”) to the
next accruing installment of Rent due hereunder or, if necessary, subsequently accruing
installments of Rent until the entire Overage amount is credited; provided that if the term of this
Lease has expired at the time Landlord’s Statement is delivered, Landlord shall refund the amount
of any Overage within 30 days of the issuance of Landlord’s Statement.

          (c) In the event the amount of Additional Rent for the final calendar year of the Term is not
calculated and submitted until after the expiration of the Term, then Tenant’s obligation to pay
the same and Landlord’s obligation to refund any Overage shall survive the expiration or
termination of this Lease. Accordingly, in addition to other remedies available to Landlord
hereunder and provided that Landlord provides Tenant with the statement of actual Additional Rent
within sixty (60) days of the expiration of the Term, Landlord shall have the right to continue to
hold without interest Tenant’s Security Deposit, if any, following expiration of the Term until the
Additional Rent has been paid in full, unless an alternative security (letter of credit or
otherwise) is furnished to the satisfaction of Landlord. The Additional Rent for the calendar years
in which the Term commences and ends, if any, shall be prorated on the basis of the number of days
of the Term within each such calendar year.

          (d) Notwithstanding Sections 4.3(a) — (c), Landlord may alternatively elect to invoice Tenant
on a monthly basis for all actual Additional Rent as the expenses are incurred. Tenant shall pay
such invoices within thirty (30) days of receipt thereof.

          (e) Landlord shall maintain, and shall ensure that any Management Company maintains, complete
and accurate records sufficient to enable accurate calculation of Additional Rent due under this
Lease. Once a calendar year, Tenant shall have the right to select a certified public accountant
reasonably acceptable to Landlord to inspect, on not less than fifteen (15) business days prior
written notice and during regular business hours, the records of Landlord and/or any Management
Company necessary to verify the Additional Rent payments due pursuant to this Lease. Such
accountant must execute a nondisclosure agreement reasonably satisfactory to Landlord prior to any
access to records. The entire cost for such inspection shall be borne by Tenant unless there is a
discrepancy of greater than, or equal to, ten percent (10%) in Landlord’s favor, in which case
Landlord shall bear Tenant’s external auditors costs for the inspection. Records shall be preserved
by Landlord and any Management Company for seven (7) years for inspection by Tenant.

     4.4 Operating Costs Defined. “Operating Costs” shall mean all amounts paid or payable, whether
by Landlord or by others on behalf of Landlord, arising out of the ownership,

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management, maintenance, operation, repair, replacement and administration of the CSLSC,
including, without limitation:

          (a) the cost of all real estate, personal property and other ad valorem taxes, payments in
lieu of taxes and any other levies, charges, impact fees and local improvement rates and
assessments whatsoever assessed or charged against the CSLSC and the land upon which the Building
is located, the equipment and improvements contained therein or thereon, or on or in any part
thereof, by any lawful taxing authority (collectively, “Taxes”), including all costs associated
with the appeal of any assessment of Taxes;

          (b) the cost of insurance obtained by Landlord, including, but not limited to, casualty
insurance, liability insurance, rent interruption insurance, and any deductible amount applicable
to any claim made by Landlord under any such insurance;

          (c) the cost of security, landscaping, window cleaning, garbage removal, trash removal and all
of the services provided to Tenant and other tenants of the Building by Landlord (other than any
services which are separately billed to Tenant or any other tenants);

          (d) the cost of heating, ventilating and air conditioning, all gas, water, sewer, electricity
and any other utilities used in the maintenance, operation, use and occupancy and administration of
the CSLSC;

          (e) salaries, wages and other amounts paid or payable for all personnel involved in the
management, repair, maintenance, operation, leasing, security, supervision or cleaning of the CSLSC
including fringe benefits, unemployment and workmen’s compensation insurance premiums, pension plan
contributions and other employment costs, as well as the cost of engaging independent contractors
to perform any of the foregoing services;

          (f) auditing, accounting, legal fees and costs associated with the CSLSC;

          (g) the cost of repairing, replacing, operating and maintaining the CSLSC;

          (h) the cost of the rental of any equipment and signs (not including Tenant’s signage);

          (i) all management and administrative costs and fees;

          (j) capital expenditures for improvements and/or equipment which are required by law and/or
which are designed to result in a labor or cost savings, in which case the capital expenditures
shall be amortized over the useful life of the improvements or equipment as determined by Landlord,
not exceeding ten (10) years and shall be included on an annual basis in Operating Costs; provided,
however, the amount of such amortization included in Operating Costs during any lease year shall
not exceed the amount by which Operating Costs were reduced during such lease year as a result of
the installation of such capital investment items;

Page 10 of 38

 

          (k) costs incurred by Landlord to conduct any environmental tests required by municipal,
county, state or federal law, including administrative agencies, or by Landlord;

          (l) without duplication of any of the foregoing, if the Building is subject to the condominium
form of ownership, all condominium assessments, fees and charges levied against or attributable to
the condominium units in the Building; and

          (m) all other expenses, costs and disbursements of every kind and nature which Landlord shall
pay or become obligated to pay in respect to or in connection with the CSLSC.

     4.5 Notwithstanding any provision contained herein, in no event shall the following be
included in the definition of “Operating Costs:”

     (a) Initial costs of the Building and capital repairs, except as otherwise listed in
subparagraph 4.4(j) above;

     (b) Debt service;

     (c) Ground lease rental;

     (d) Costs reimbursed by insurance proceeds, condemnation awards, warranties and services
contracts or Tenant;

     (e) Salaries of officers, executives or partners of Landlord above the level of Building
Manager;

     (f) Non-cash items (depreciation), except as otherwise listed in subparagraph 4.4(j) above;

     (g) Capital items of any kind or nature, except as otherwise listed in subparagraph 4.4(j)
above;

     (h) Landlord’s late payment fees and tax penalties;

     (i) Landlord’s bad debt or rent loss;

     (j) In-house legal or accounting fees; (excludes all third party entities)

     (k) Landlord’s general corporate overhead; (excludes all third party entities)

     (l) Voluntary contributions; or (unless otherwise approved by tenant)

     (m) Any costs associated with hazardous or toxic substances on the Building or Land for which
Landlord is responsible for under Article 6.

     Operating Costs shall not include the cost of any work or service provided to any tenant of
the CSLSC that is in addition to that which Landlord is obligated or permitted to provide to Tenant
under the provisions of this Lease or the comparable provisions of the other tenant leases of the
CSLSC.

     4.6 Security Deposit. Tenant has deposited with Landlord the sum of Ten Thousand and No/100
Dollars ($10,000.00) (the “Security Deposit”) as security for the full and faithful

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performance by Tenant of all of Tenant’s obligations hereunder. Tenant grants to Landlord a
security interest in such Security Deposit to secure Tenant’s obligations under this Lease. No
interest shall be paid upon the Security Deposit nor shall Landlord be required to maintain the
deposit in a segregated account, unless required by applicable law in which event Landlord will
comply with such legal requirement. The Security Deposit shall not be construed as prepaid rent. In
the event that Tenant shall default in the full and faithful performance of any of the terms
hereof, then Landlord may, without notice, either retain the Security Deposit as liquidated
damages, or Landlord may retain the same and apply it toward any damages sustained by Landlord,
including but not limited to actual, consequential or other direct or indirect damages sustained by
the Landlord by reason of the default of Tenant, including but not limited to any past due rent. In
the event of bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily
instituted by or against Tenant, the Security Deposit shall be deemed to be applied in the
following order: to damages, obligations and other charges, including any damages sustained by
Landlord, other than unpaid rent, due to Landlord for all periods prior to the filing of such
proceedings; to accrued and unpaid rent prior to the filing of such proceeding; and thereafter to
actual damages, obligations, other charges and damages sustained by Landlord and rent due the
Landlord for all periods subsequent to such filing. In the event of a sale of the Leased Premises
or all or any portion of the Building, Landlord shall have the right to transfer the Security
Deposit to the buyer, and Landlord shall thereupon be relieved of all obligations to return the
Security Deposit to Tenant, and Tenant agrees to look solely to the buyer for the return of the
Security Deposit. If Tenant fully and faithfully complies with all of the terms hereof, the
Security Deposit or any balance thereof shall be returned to Tenant within sixty (60) days after
expiration of this Lease, including any renewal thereof.

ARTICLE 5.

OWNERSHIP OF FACILITY AND TENANT’S

PERSONAL PROPERTY

     5.1 Ownership of the Facility. Tenant acknowledges that the Facility is the property of
Landlord, and that Tenant has only the right to the possession and use of the Facility upon and
subject to the terms and conditions of this Lease.

     5.2 Tenant’s Personal Property. Tenant may, at its expense, install, affix or assemble or
place in the Leased Premises any items of the Tenant’s Personal Property, and may remove, replace
or substitute for the same, from time to time, in the ordinary course of Tenant’s business. Tenant
shall provide and maintain, during the entire Term, all such Tenant’s Personal Property as shall be
necessary in order to operate its business or the business of its subtenants in compliance with all
applicable Legal Requirements and Insurance Requirements and otherwise in accordance with customary
practice in the industry for the Primary Intended Use.

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ARTICLE 6.

USE OF LEASED PREMISES

     6.1 Use of the Leased Premises.

          (a) After the Commencement Date and during the entire Term, Tenant shall use the Leased
Premises or cause the Leased Premises to be used as offices, light manufacturing and laboratory
space for its own use and for such other uses as may be reasonably necessary in connection with or
incidental to such purposes and uses (together, the “Primary Intended Use”). Landlord shall not
prohibit Tenant from using part of the Leased Premises as a vivarium; however, under no
circumstances shall a vivarium be considered as part of the Primary Intended Use. Tenant shall not
use the Leased Premises or any portion thereof for any other use without the prior written consent
of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed.

          (b) Tenant covenants and agrees that during the Term of this Lease it will continuously use
and operate the Leased Premises in accordance with its Primary Intended Use.

          (c) Tenant shall not commit or suffer to be committed any waste on the Leased Premises, nor
shall Tenant cause or permit any nuisance thereon.

          (d) Tenant shall neither suffer nor permit the Leased Premises or any portion thereof, to be
used in such a manner as (i) might reasonably tend to impair Landlord’s title thereto or to any
portion thereof, or (ii) may reasonably result in a claim or claims of adverse usage or adverse
possession by the public, as such, or of implied dedication of the Leased Premises or any portion
thereof.

     6.2 Environmental Matters — Tenant Responsibilities. Except in compliance with all Hazardous
Materials Laws, Tenant will not store or dispose of nor permit any subtenant, licensee, occupant or
operator to store or dispose of any Hazardous Substances, the removal of which is required or the
maintenance of which is prohibited or penalized by any Hazardous Substances Law, on the Facility.
Tenant will not cause, allow or permit the release or discharge of any Hazardous Substances from
the Facility, and will not directly or indirectly transport or arrange for the transportation of
any Hazardous Substances from the Facility, or permit or suffer any subtenant, licensee, occupant
or operator of the Facility to do so, except in strict compliance with applicable Hazardous
Materials Laws. Tenant covenants and agrees to maintain the Leased Premises at all times free of
any Hazardous Substances, except in compliance with all Hazardous Materials Laws, and to handle and
dispose of all “red bag” or other bio-hazardous wastes in accordance with applicable Hazardous
Materials Laws.

     Tenant hereby agrees: (i) to promptly transmit and to cause any of its subtenants, licensees,
occupants or operators, if any, to transmit to Landlord copies of any citations, orders, notices or
other material governmental communications received by Tenant or any such subtenant, licensee,
occupant or operator, if any, with respect thereto, (ii) to observe and comply and to cause any of
its subtenants, occupants or operators to comply with any and all Hazardous Materials Laws or any
other statutes, laws, ordinances, rules and regulations, licensing

Page 13 of 38

 

requirements or conditions relating to the use, maintenance, storage, release, discharge and
disposal of any Hazardous Substances used, maintained, kept or stored on the Leased Premises by
Tenant or such subtenant, licensee occupant or operator, if any, and to observe and comply with all
orders or directives from any official, court or agency of competent jurisdiction relating to the
use or maintenance or requiring the removal, treatment, containment or other disposition of any
such, Hazardous Substances, and (iii) to pay or otherwise dispose (or cause any of its subtenants,
licensees, occupants or operators) of any fine, charge or Imposition related thereto which, if
unpaid, would constitute a lien on the Facility. Any cost, expense, loss or damage incurred or
suffered by Landlord and directly attributable to the failure of Tenant strictly to observe and
perform the foregoing requirements (including, without limitation, reasonable attorneys’ fees and
expenses), shall be reimbursed to Landlord promptly upon demand and, until paid, shall bear
interest at the Overdue Rate.

     In addition to the foregoing covenants, Tenant further covenants and agrees that it shall
perform all necessary work or cause any of its subtenants, licensees, occupants or operators, if
any, of the Leased Premises to perform all necessary work to clean up and properly remediate any
and all Hazardous Substances which then may be present in, on or about the Leased Premises and/or
Common Areas (if caused by Tenant) upon vacating the Leased Premises. All such clean up and
remediation shall be done in strict compliance with Hazardous Material Laws and Tenant shall vacate
the Leased Premises leaving it in such condition as to be in compliance with all Legal Requirements
and applicable Hazardous Material Laws in all respects.

     Tenant will protect, indemnify and save harmless Landlord, its principals, officers,
directors, agents and employees from and against all liabilities, obligations, claims, damages,
penalties, costs and expenses (including, without limitation, reasonable attorneys fees and
expenses) which may be imposed upon or incurred by or asserted against any of them by reason of any
failure on the part of Tenant to perform or comply with any of the terms of this Section 6.

     6.3 Environmental Matters — Landlord Responsibilities. Landlord shall require all
contractors, subcontractors, laborers, materialmen or vendors which Landlord retains to provide
services within the CSLSC to comply with all Hazardous Materials Laws. Landlord shall also include
provisions substantially similar to Section 6.2 in all CSLSC leases to other tenants.

Except in compliance with all Hazardous Materials Laws, Landlord will not store or dispose of nor
permit any tenant, licensee, occupant or operator to store or dispose of any Hazardous Substances,
the removal of which is required or the maintenance of which is prohibited or penalized by any
Hazardous Substances Law, on the CSLSC. Landlord will not cause, allow or permit the release or
discharge of any Hazardous Substances from the CSLSC, except in strict compliance with applicable
Hazardous Materials Laws. Landlord will protect, indemnify and save harmless Tenant, its
principals, officers, directors, agents and employees from and against all liabilities,
obligations, claims, damages, penalties, costs and expenses arising from any gross negligence on
the part of the Landlord to perform or comply with any of the terms of this section 6.3

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ARTICLE 7.

LEGAL AND INSURANCE REQUIREMENTS

     7.1 Compliance with Legal and Insurance Requirements. Tenant, at its expense, will and will
cause subtenants, licensees, occupants and operators, if any, promptly (a) to comply with all Legal
Requirements and Insurance Requirements in respect of the use, operation, maintenance, repair and
restoration of the Leased Premises, whether or not compliance therewith shall require structural
change in any of the Leased Premises or interfere with the use and enjoyment of the Leased
Premises, and (b) to procure, maintain and comply with all licenses, permits and other
authorizations required for (i) any use of the Leased Premises then being made, including but not
limited to the Primary Intended Use and for (ii) the proper erection, installation, operation and
maintenance of the Leased Premises or any part thereof, and any improvements, additions or
alterations thereto.

     7.2 Legal Requirement Covenants. Tenant covenants and agrees that the Leased Premises shall
not be used for any unlawful business, use or purpose or for any business, use or purpose that is
in violation of any laws, ordinances, orders, regulations, codes or zoning classifications of any
governmental authority having jurisdiction over the Leased Premises. Tenant shall, directly or
indirectly with the cooperation of Landlord, but at Tenant’s sole cost and expense, acquire and
maintain all licenses, certificates, permits and other authorizations and approvals needed to
operate the Leased Premises in its customary manner for the Primary Intended Use and any other use
conducted on the Leased Premises as may be permitted from time to time hereunder. Tenant further
covenants and agrees that Tenant’s use of the Leased Premises and Tenant’s maintenance, alteration,
and operation of the same, and all parts thereof, shall at all times conform to all applicable
Legal Requirements in all respects. Tenant will protect, indemnify and save harmless Landlord, its
principals, officers, directors, agents and employees from and against all liabilities,
obligations, claims, damages, penalties, costs and expenses (including, without limitation,
reasonable attorneys fees and expenses) which may be imposed upon or incurred by or asserted
against any of them by reason of any failure on the part of Tenant to perform or comply with any of
the terms of this Article 7.

ARTICLE 8.

MAINTENANCE AND REPAIR

     8.1 Maintenance and Repair.

          (a) At all times during the Term of this Lease, Tenant, at its expense, will keep the Leased
Premises and fixtures therein in good working order and repair, normal wear and tear excepted
(whether or not the need for such repairs occurs as a result of Tenant’s use, the elements, or
normal wear and tear or age) and, except as otherwise provided in Articles 13 and 14 hereof, with
reasonable promptness, will make all necessary and appropriate repairs thereto of every kind and
nature, ordinary or extraordinary, foreseen or unforeseen. Landlord shall be responsible for
repairs related to the structural integrity of the shell, foundation and/or roof of the Building.

Page 15 of 38

 

          (b) Except for those items which arise as a result of or are caused by the negligent acts or
omissions or willful misconduct of Landlord, its agents, contractors or employees, whether prior to
or during the Term of this Lease, Landlord shall not be required to build or rebuild any
improvements on the Leased Premises or to make any repairs, replacements, alterations,
restorations, or renewals of any nature or description to the Leased Premises during the Term of
this Lease, unless expressly required herein.

          (c) Nothing contained in this Lease and no action or inaction by Landlord shall be construed
as constituting the consent or request of Landlord, expressed or implied, to any contractor,
subcontractor, laborer, materialman or vendor to or for the performance of any particular labor or
services or the furnishing of any particular materials or other property for the construction,
alteration, addition, repair or demolition of or to the Leased Premises or any part thereof, or
giving Tenant any right, power or permission to contract for or permit the performance of any labor
or services or the finishing of any materials or other property in such fashion as would permit the
making of any claim against Landlord in respect thereof or to make any agreement that may create,
or in any way be the basis for, any right, title, interest, lien, claim or other encumbrance upon
the estate of Landlord in the Leased Premises, Common Areas or any portion thereof.

          (d) Tenant will, upon the expiration or prior termination of this Lease, vacate and surrender
the Leased Premises to Landlord, and solely at Landlord’s discretion: (i) in the same physical
condition in which the Leased Premises was originally received from Landlord on the Commencement
Date, except for ordinary wear and tear; or (ii) in good condition suitable for the commercial use
which is the same as or similar to the Tenant’s Primary Intended Use as defined herein; unless
otherwise agreed upon in writing by and between the parties. Tenant will additionally, upon the
expiration or prior termination of this Lease, provide Landlord with a written certification that:
(1) the Leased Premises are free of any Hazardous Materials (including any radioactive or
biohazardous materials) that Tenant causes to be present, (2) Tenant has removed any containers or
equipment specifically used for storage or handling of Hazardous Materials, and (3) the Leased
Premises are environmentally suitable for commercial use as a rental property for general
commercial, office or business use. Tenant shall not be responsible for any (i) damage caused by
the negligence or willful acts of Landlord, or (ii) damage or destruction described in Article 13
or resulting from a Taking described in Article 14 which Tenant is not required by the terms of
Article 13 or 14 of this Lease to repair or restore.

          (e) Tenant may, with Landlord’s prior written consent, from time to time during the Term of
this Lease, replace with other operational equipment or parts or property (the “Replacement
Property”) any of the equipment or other personal property of Landlord, if any, that is a part of
the Leased Premises. The Replacement Property shall (1) be in good operating condition, (2) have a
then value and useful life at least equal to the value and estimated useful life of property so
replaced, and (3) be suitable for a use which is the same or similar to that of the Replaced
Property. All Replacement Property will be the property of Landlord.

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ARTICLE 9.

ALTERATIONS AND ADDITIONS

     9.1 Construction of Capital Additions to the Leased Premises. Schedule 9.1 sets forth
the capital additions to the Building heretofore made by Tenant, the date such capital additions
were completed and the amount expended by Tenant in making such capital additions. Tenant shall
supplement Schedule 9.1 from time to time as additional capital additions to the Building
are made pursuant to this Article 9, and any such supplement shall be incorporated herein by
reference and shall be deemed to be a part of this Lease as if fully set forth herein. Tenant
shall not make or permit to be made any additional capital additions to the Leased Premises, unless
and until Tenant shall have caused plans and specifications therefor to have been prepared, at
Tenant’s expense, by a licensed architect and shall have obtained Landlord’s written approval both
prior to commencement of construction and upon completion thereof, which approvals shall not be
unreasonably withheld, conditioned or delayed. Landlord shall, with reasonable promptness, advise
Tenant of its approval or disapproval of the proposed capital addition. If Tenant’s proposed
capital addition is not approved, then Landlord shall specify such alternative conditions, if any,
upon which Landlord might approve such capital addition. Tenant shall cause the work on any
capital additions permitted to be made hereunder to be performed, at its expense, promptly and in a
workmanlike manner by a licensed general contractor and in compliance with all applicable Legal
Requirements, Insurance Requirements and the standards set forth in this Lease. Unless otherwise
specifically agreed in writing by Landlord, any capital additions permitted to be made to the
Leased Premises hereunder shall be at the sole cost and expense of Tenant. Each and every such
capital addition shall become a part of the Leased Premises subject to the terms, conditions,
covenants and agreements of this Lease. All materials which are scrapped or removed in connection
with the making of every such capital addition shall be removed from the Leased Premises at
Tenant’s expense and shall be disposed of by Tenant in accordance with all applicable laws,
including all Hazardous Materials Laws.

     9.2 Remodeling and Non-Capital Additions. Subject to the limitations regarding capital
additions set forth in Section 9.1 above, Tenant shall have the right to make any and all
nonstructural, cosmetic additions, modifications or improvements to the Leased Premises which do
not modify the Building or require approval from any governmental agency, from time to time, as may
reasonably be necessary for its uses and purposes and to permit the Tenant to comply fully with its
obligations set forth in this Lease; provided that such action will be undertaken expeditiously, in
a workmanlike manner and will not significantly alter the character or purpose or detract from the
value or operating efficiency of the Leased Premises or adversely affect the ability of the Tenant
to comply with the provisions of this Lease. All such additions, modifications and improvements
shall be included as part of the Leased Premises subject to the terms, conditions, covenants and
agreements of this Lease.

Page 17 of 38

 

     9.3 Tenant Rent Credit. In consideration of Tenant’s execution of this Lease, Landlord shall
provide Tenant with a credit to be applied against Rent in the amount of One-Hundred and Sixty
Thousand and No/100 Dollars ($160,000.00) (which is equal to Five and No/100 Dollars ($5.00)
multiplied by the Rentable Square Feet) (the “Tenant Rent Credit”). Tenant may
apply the Tenant Rent Credit, or any portion thereof remaining, after the fourth year of this
lease, by giving Landlord written notice of its intent to do so sixty (60) days before the date on
which Rent is due under this Lease.

     9.4 Tenant Improvement Work. Tenant shall contract for and pay the cost of any and all
improvements to the Leased Premises related to Tenant’s use thereof (the “Tenant Improvement
Work”). Throughout the process of preparing the plans for the Tenant Improvement Work and
obtaining any necessary governmental permits and approvals, each party shall act diligently and in
good faith and shall cooperate with the other and with governmental agencies in whatever manner may
be reasonably required. Tenant acknowledges and agrees that Landlord reserves the right, without
Tenant’s consent and without liability to Tenant, to make any modifications, changes or omissions
to the plans required by any governmental or quasi-governmental authority or utility. Tenant
acknowledges that interior finishes such as brick, wood, wood grain, carpeting, paint, cabinets,
cultured marble, tile, mica, and the like, are subject to shading and gradation and may vary from
samples, models or color charts, and from piece to piece, and Landlord will not be liable for such
variation.

     9.5 Change Orders and Extras. Any change orders or extras desired by Tenant and not included
or shown in the original plans approved by Landlord must be further agreed to by Landlord in
writing. Tenant will pay the cost of any change or extra at such time as Tenant is instructed by
Landlord to pay same.

     9.6 Tenant Capital Additions. Upon the consent of Tenant, other tenants of the CSLSC may
utilize any capital addition listed in Schedule 9.1. Landlord shall provide Tenant written
notice thereof setting forth which capital addition would be utilized and the anticipated extent of
such usage. Tenant’s consent thereof shall not be unreasonably withheld provided there is adequate
capacity to accommodate such other tenant. During the Initial Term of this Lease, Tenant shall be
compensated for such use in the form of payment by Landlord directly or the tenant(s) utilizing the
capital addition. The payment shall be based upon the extent of said use and upon the then
remaining unamortized portion of the improvement, and shall be agreed upon prior to Tenant
providing its consent to allowing the access to the capital addition.

ARTICLE 10.

NO LIENS

     Subject to the provisions of Article 11 relating to permitted contests, Tenant will not
directly or indirectly create or suffer to exist and will promptly discharge at its expense any
lien, encumbrance, attachment, title retention agreement or claim upon the Leased Premises or any
attachment, levy, claim or encumbrance in respect of the Rent, not including, however, (a) this
Lease, (b) the matters, if any, set forth in Schedule 10 attached hereto [intentionally
blank], (c) restrictions, liens and other encumbrances which are consented to in writing by
Landlord, (d) leases to other tenants in the Building and subleases permitted by Article 20, (e)
liens for

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Impositions or for sums resulting from noncompliance with Legal Requirements so long as (1) the
same are not yet payable or are payable without the addition of any fine or penalty or (2) such
liens are in the process of being contested as permitted by Article 11, and (f) liens of mechanics,
laborers, materialmen, suppliers or vendors for sums either disputed or not yet due, provided that
(1) the payment of such sums shall not be postponed for more than sixty (60) days after the
completion of the action (including any appeal from any judgment rendered therein) giving rise to
such lien and suitable reserves or bonds or other appropriate protections as shall be required by
law or generally accepted accounting principles shall have been made therefor or (2) any such liens
are in the process of being contested as permitted by Article 11.

ARTICLE 11.

PERMITTED CONTESTS

     Tenant, after ten (10) days’ prior written notice to Landlord, on its own or on Landlord’s
behalf (or in Landlord’s name), but at Tenant’s expense, may contest, protest or appeal by
appropriate legal or administrative proceedings conducted in good faith and with due diligence, the
amount, determination, validity, assessment, imposition or application, in whole or in part, of any
Imposition, Legal Requirement, Insurance Requirement, lien, attachment, levy, encumbrance, charge
or claim (collectively “Charge”) which is required to be paid, discharged, observed or complied
with by Tenant under this Lease; provided that (a) in the case of an unpaid Charge, the
commencement and continuation of such proceedings or the posting of a bond as may be permitted by
applicable law shall suspend the collection thereof from Landlord and from the Leased Premises; (b)
neither the Leased Premises nor any Rent therefrom nor any part thereof or interest therein would
be in any immediate danger of being sold, forfeited, attached or lost; (c) Landlord would not be in
any immediate danger of civil or criminal liability for failure to comply therewith pending the
outcome of such proceedings; (d) in the case of an Insurance Requirement, the coverage required by
Article 12 shall be maintained; and (e) if such contest be finally resolved against Landlord or
Tenant, Tenant shall promptly pay any amount required to be paid, including without limitation
interest and penalties accrued thereon, or otherwise comply with the applicable Charge. Landlord,
at Tenant’s expense, shall execute and deliver to Tenant such authorizations and other documents as
may reasonably be required in any such action and, if reasonably requested by Tenant or if Landlord
so desires and then at its own expense, Landlord shall join as a party therein. Landlord will
cooperate fully and in good faith with Tenant in such contest and shall do all things reasonably
requested by Tenant in connection with any such action. Tenant shall indemnify and save Landlord
harmless against any liability, cost or expense of any kind that may be imposed upon Landlord in
connection with any such action and any damages resulting therefrom.

ARTICLE 12.

INSURANCE

     12.1 Tenant’s Insurance. Tenant shall keep in full force and effect throughout the Lease Term
a policy or policies of commercial property insurance, issued on an “all risks” basis insuring the
full replacement cost of its furniture, equipment, supplies and all other personal property owned,
leased, held or possessed by it and located upon the Building, and the capital additions and tenant
improvements made to the Leased Premises by Tenant (with a replacement

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cost endorsement sufficient to prevent Tenant from becoming a co-insurer). Tenant shall also
procure at its expense and maintain throughout the Lease Term a policy or policies of commercial
general liability insurance, and workers’ compensation insurance as required by applicable law,
including but not limited to, insurance for assumed or contractual liability under this Lease, all
written on an occurrence basis and insuring Tenant, Landlord, any mortgagee, and any other person
with an insurable interest designated by Landlord, against any and all liability for injury to or
death of a person or persons and for damage to property occasioned by or arising out of any
occurrence on the Building, or arising out of the condition, use or occupancy of the Building, or
in any way occasioned by or arising out of the activities of Tenant, its agents, contractors,
employees, guests or licensees in the Building, or other portions of the Building or the CSLSC.
The limits of such liability policies shall be in combined single limits for both damage to
property and personal injury and in amounts not less than Three Million Dollars ($3,000,000.00) for
each occurrence. Such liability insurance shall, in addition, extend to any liability of Tenant
arising out of the indemnities provided for in this Lease. Tenant shall also require any
contractor performing work on the Building for Tenant to carry and maintain, at no expense to
Landlord, non-deductible commercial general liability insurance, including but not limited to,
contractor’s liability coverage, contractual liability coverage, completed operations coverage,
broad form property damage endorsement and contractor’s protection liability coverage in such
amounts and with such companies as Landlord shall approve. All insurance policies procured and
maintained by Tenant pursuant to this Section 12.1 shall name Landlord and any additional
parties designated by Landlord as additional insured, shall be carried with companies licensed to
do business in the State of Tennessee reasonably satisfactory to Landlord, and shall be
non-cancelable and not subject to material change except after thirty (30) days’ written notice to
Landlord. Such policies or duly executed certificates of insurance with respect thereto,
accompanied by proof of payment of the premium therefor, shall be delivered to Landlord prior to
the Commencement Date, and renewals of such policies shall be delivered to Landlord at least thirty
(30) days prior to the expiration of each respective policy term.

     12.2 Landlord’s Insurance. During the Term, Landlord agrees to maintain (a) “all risk” full
replacement cost property insurance on the Building, exclusive of improvements made by Tenant in
excess of the initial Tenant Improvements, in an amount sufficient to prevent Landlord from being
deemed a co-insurer of the risks insured under the policy, which shall include customary rent loss
insurance covering loss of rents for a period of at least one year, and which shall include, as and
to the extent customarily included by prudent owners of comparable first class office buildings in
Brentwood, Tennessee, boiler and machinery and electrical apparatus coverage; and (b) commercial
general liability insurance, including but not limited to, insurance assumed or contractual
liability under this Lease, in an amount not less than Three Million and No/100 Dollars
($3,000,000.00) combined single limit per occurrence (which may be a combination of primary and
umbrella coverage’s). Landlord shall furnish to Tenant certificates or other evidence of insurance
from the insurer, or, if not available from the insurer, then from the insurance agent, evidencing
such coverage at the time this Lease is executed and, at Tenant’s request, within thirty (30) days
after any policy is renewed, replaced or changed.

     12.3 Waiver of Subrogation. Landlord and Tenant shall each have included in all policies of
commercial property insurance, business interruption, rent loss and other insurance respectively
obtained by them covering the Building, the Building and any contents therein, a

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waiver by the insurer of all right of subrogation against the other party hereto in connection
with any loss or damage thereby insured against. Any additional premium for such waiver shall be
paid by the primary insured. To the full extent permitted by law, Landlord and Tenant each waives
all right of recovery against the other for, and agrees to release the other from liability for,
loss or damage to the extent such loss or damage is actually covered by valid and collectible
insurance in effect at the time of such loss or damage or would be covered by the insurance
required to be maintained under this Lease by the party seeking recovery.

     12.4 Form of Insurance. All of the policies of insurance referred to in this Lease shall be
written by companies reasonably acceptable to Landlord, which acceptance shall not be unreasonably
withheld, conditioned or delayed, and authorized to do insurance business in the State of Tennessee
and shall name the Landlord as loss payee or an additional insured, as the case may be. Tenant
will, upon request by Landlord; provide Landlord with certificates of insurance evidencing the
policies required hereby. Each insurer mentioned in this Article 12 shall agree, by endorsement on
the policy or policies issued by it, or by independent instrument furnished to Landlord, that it
will give to Landlord thirty (30) days’ written notice before the policy or policies, in question
shall be allowed to expire or canceled.

     12.5 Changes in Limits. In the event that Landlord shall, at anytime, reasonably and in good
faith believe the limits of the personal injury, property damage or general public liability
insurance then carried to be insufficient, the parties shall endeavor to agree on the proper and
reasonable limits for such insurance to be carried and such insurance shall thereafter be carried
within the new limits until further change pursuant to the provisions of this Section. If the
parties shall be unable to agree thereon, the proper and reasonable limits for such insurance shall
be determined by an impartial third party selected by the parties, who is experienced in the
commercial insurance industry. Such re-determination, whether made by the parties or arbitration,
shall be made no more frequently than every two (2) years

     12.6 Blanket Policy. Notwithstanding anything to the contrary contained in this Article 12
Tenant’s obligations to carry the insurance provided for herein may be brought within the coverage
of a so-called blanket policy or policies of insurance carried and maintained by Tenant; provided
that the coverage afforded Landlord will not be reduced or diminished or otherwise be different
from that which would exist under separate policies or policies issued by insurance companies
meeting all other requirements of this Lease.

ARTICLE 13.

CASUALTY LOSS

     13.1 Disposition of Insurance Proceeds. All proceeds payable by reason of any loss or damage
to the Leased Premises, or any portion thereof, and insured under any policy of insurance required
by Article 12 of this Lease (exclusive, however, of any proceeds of insurance covering Tenant’s
equipment used in its business or other business related personal property and exclusive of
proceeds from business interruption insurance), shall be paid to Landlord, free from any claim or
right of Tenant, and shall be used solely and made available for reconstruction or repair, as the
case may be, of any damage to or destruction of the Leased Premises, or any portion thereof, and
shall be paid out from time to time for the reasonable cost of such

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reconstruction or repair in accordance with this Article 13. Any excess proceeds of insurance
remaining after the completion of the restoration or reconstruction of the Leased Premises shall be
the property of Landlord free and clear, with Tenant being entitled to its pro-rata share of such
excess, upon completion of any such repair and restoration, except as otherwise specifically
provided below in this Article 13. In the event Landlord is not required to repair and restore the
Leased Premises as a result of the termination of this Lease, then all such insurance proceeds
shall be retained by and shall belong to Landlord, free from any claim or right of Tenant, except
however, Tenant shall be entitled to receive a portion of such proceeds equal to the unamortized
costs of the capital additions which were paid directly by Tenant, based upon the Term of the Lease
as stated herein, and the remaining portion of the Lease, had the Lease not been terminated. All
salvage resulting from any risk covered by insurance shall belong to Tenant.

     13.2 Reconstruction in the Event of Damage or Destruction Covered by Insurance.

          (a) If during the Lease Term, the Leased Premises are totally or partially damaged or
destroyed from a risk covered by the types of insurance described in Article 12 and the Leased
Premises is thereby rendered Unsuitable for its Primary Intended Use, Landlord shall, to the extent
that insurance proceeds have been made available therefor, within ninety (90) days of the
occurrence (but only if the necessary insurance proceeds have been received by Landlord), commence
the restoration process for the Leased Premises so damaged or destroyed to substantially the same
(or better) condition as their condition immediately prior to such damage or destruction, and
diligently prosecute the same to completion; provided, however, nothing in this Lease shall be
construed to require Landlord to expend in connection with the repair or reconstruction of the
Leased Premises an amount greater than the actual insurance proceeds made available to Landlord.
Such damage or destruction shall not terminate this Lease. Only an agreement in writing between
Tenant and Landlord to terminate this Lease and/or Landlord’s inability to obtain all necessary
government approvals, within a reasonable time, including building permits, licenses, and/or
conditional use permits after diligent efforts to do so, shall terminate this Lease. Landlord
shall give Tenant written notice thereof, and this Lease shall terminate as of the later of (a) the
first day of the calendar month following the date of delivery of the notice to Tenant or (b)
fifteen (15) Business Days after the date of delivery of the notice to Tenant. Tenant may elect, at
any time subsequent to such damage or destruction, upon Landlord’s prior written consent which
shall not be unreasonably withheld, to commence such restoration at Tenant’s own expense, and shall
diligently prosecute the same to completion. If Tenant elects to undertake the restoration of the
Leased Premises so damaged or destroyed it shall restore the Leased Premises to substantially the
same (or better) condition as the condition immediately prior to such damage or destruction. Tenant
shall have the right to be reimbursed from the insurance proceeds, for its external expenses (i.e.,
exclusive of general overhead such as salaries for its employees) related to such restoration.

          (b) If during the Lease Term, the Leased Premises is totally or partially destroyed from a
risk covered by the types of insurance described in Article 12, but the Leased Premises is not
thereby rendered Unsuitable for its Primary Intended Use, within ninety (90) days of the occurrence
(if the necessary funds have been received by Landlord), Landlord shall commence the restoration
process to restore the Leased Premises so damaged or destroyed to

Page 22 of 38

 

substantially the same condition as existed immediately before the damage or destruction and
diligently prosecute the same to completion. Such damage or destruction shall not terminate this
Lease. Tenant may elect, at any time subsequent to such damage or destruction, upon Landlord’s
prior written consent which shall not be unreasonably withheld, to commence such restoration at
Tenant’s own expense, and shall diligently prosecute the same to completion. If Tenant elects to
undertake the restoration of the Leased Premises so damaged or destroyed it shall restore the
Leased Premises to substantially the same (or better) condition as the condition immediately prior
to such damage or destruction. Tenant shall have the right to be reimbursed from the insurance
proceeds, for its external expenses related to such restoration.

     13.3 Tenant’s Personal Property. All insurance proceeds payable by reason of any loss of or
damage to any of Tenant’s Personal Property shall be paid and belong to Tenant. Landlord shall
have no obligation to replace any of Tenant’s Personal Property.

     13.4 Restoration of Improvements and Additions. If Landlord is required to restore the Leased
Premises as provided in Section 13.2 above, Landlord shall also restore all capital
additions made by Tenant, but only to the extent that insurance proceeds are made available to
Landlord therefor.

     13.5 Option for Abatement of Rent. In the event that this Lease is not terminated pursuant to
this Article 13, then this Lease shall remain in full force and effect during the period of
restoration and construction and Tenant’s obligation to make payments of Rent and to pay all other
charges required by this Lease shall remain unabated, unless the Tenant has in force on the date of
such damage or destruction rent or rental value insurance in which event the Rent payable hereunder
shall be abated to the extent, and for such period, which Rent is being paid to Landlord on behalf
of Tenant by the insurer. If this Lease shall terminate pursuant to this Article 13, then Rent and
all other charges required by this Lease shall be abated and apportioned as of the date of such
damage or destruction.

     13.6 Standard of Work. All work commenced by Landlord under this Article 13 to repair or
restore the Leased Premises shall be diligently prosecuted to completion in a good and workmanlike
manner, using as near as practical the same materials as in the original construction of the Leased
Premises requiring repair or restoration.

ARTICLE 14.

CONDEMNATION

     14.1 Parties’ Rights and Obligations. If during the Term there is any Taking of all or any
part of the Leased Premises or any interest in this Lease by Condemnation, the rights and
obligations of the parties shall be determined by this Article 14.

     14.2 Total Taking. If there is a Taking of all of the Leased Premises by Condemnation, this
Lease shall terminate on the date of Taking, and the Rent and all additional charges paid or
payable hereunder shall be apportioned and paid to the date of Taking.

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     14.3 Partial Taking. If title to the fee of less than the whole of the Leased Premises shall
be so taken or condemned, which nevertheless renders the Leased Premises Unsuitable for Its Primary
Intended Use, Tenant and Landlord shall each have the option, exercisable by written notice to the
other, at any time within thirty (30) days after the taking of possession by, or the date of
vesting of title in, such Condemnor, whichever first occurs, to terminate this Lease as of the
Taking. Upon such date so determined, if such notice has been given, this Lease shall thereupon
cease and terminate as to such Leased Premises. All Rent and other charges paid or payable by
Tenant hereunder shall be apportioned as of the date the Lease shall have been so terminated. If
there is a Taking of a portion of the Leased Premises by Condemnation such that the Leased Premises
is not thereby rendered Unsuitable for Its Primary Intended Use, the Landlord at its sole
discretion may (a) terminate this Lease, or (b) have this Lease remain in effect and Landlord shall
restore the untaken portion of the Building shell in which the Leased Premises are located so that
such Leased Premises shall constitute a complete architectural unit of the same general character
and condition (as nearly as may be possible under the circumstances) as the Leased Premises
existing immediately prior to such Condemnation or Taking. Landlord shall commence the restoration
process for the Leased Premises within ninety (90) days of the partial Taking, if the necessary
funds have been received by the Landlord, and shall diligently prosecute the restoration to
completion. Tenant may elect, at any time subsequent to such Condemnation or Taking, upon
Landlord’s prior written consent which shall not be unreasonably withheld, to commence such
restoration at Tenant’s own expense, and shall diligently prosecute the same to completion. If
Tenant elects to undertake the restoration of the Leased Premises so Condemned or Taken, it shall
restore the untaken portion of the Building shell in which the Leased Premises are located so that
such Leased Premises shall constitute a complete architectural unit of the same general character
and condition (as nearly as may be possible under the circumstances) as the Leased Premises
existing immediately prior to such Condemnation or Taking. Tenant shall have the right to be
reimbursed from the Award for such Condemnation or Taking, for its external expenses related to
such restoration.

     14.4 Award Distribution. The entire Award for any Taking, whether total or partial, shall
belong to and be paid to Landlord, except that, if this Lease is terminated hereinunder, Tenant
shall be entitled to receive a portion of such proceeds equal to the unamortized costs of the
capital additions which were paid directly by Tenant, based upon the Term of the Lease as stated
herein, and the remaining portion of the Lease, had the Lease not been terminated, and Tenant shall
be entitled to any portion of the Awards as provided in Section 14.3.

     If the Leased Premises are restored, Landlord agrees that the necessary portion of the Award
shall be used for such restoration. In any proceeding for any Taking for all or any part of the
Leased Premises, Tenant shall have the right at Tenant’s cost and expense, to prove damages and
receive an Award for damages to or Condemnation of its movable trade fixtures and personal property
and for any moving and relocation expenses, or make a separate claim with the Condemnor for the
same. Landlord and Tenant agree to cooperate with the other in the event of any Taking of all or
any portion of the Leased Premises, so that each may receive the maximum Award, if any, to which
they are respectively entitled under applicable law.

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ARTICLE 15.

DEFAULT

     15.1 Events of Default. The occurrence of any one or more of the following events shall
constitute an event of default (individually, an “Event of Default” and, collectively, “Events of
Default”) hereunder:

          (a) if Tenant shall fail to make a payment of the Rent payable by Tenant under this Lease when
the same becomes due and payable and each such failure continues for a period of five (5) Business
Days after written notice from Landlord to Tenant, , or

          (b) if Tenant shall fail to observe or perform any other term, covenant or condition of this
Lease on its part to be performed, and such failure is not cured by Tenant within a period of
thirty (30) days after written notice thereof from Landlord, unless such failure cannot with due
diligence be cured within a period of thirty (30) days, in which case such failure shall not be
deemed to continue if Tenant proceeds promptly and with due diligence to cure the failure and
diligently completes the curing thereof (as soon as reasonably possible), or

          (c) if Tenant shall:

               (i) admit in writing its or inability to pay debts generally as they become due,

               (ii) file a petition in bankruptcy or a petition to take advantage of any insolvency law,

               (iii) make an assignment for the benefit of its creditors,

               (iv) consent to the appointment of a receiver of itself or of the whole or any substantial
part of its property, or

               (v) file a petition or answer seeking reorganization or arrangement under the Federal
bankruptcy laws or any other applicable law or statute of the United States of America or any state
thereof, or

          (d) If Tenant shall be finally liquidated or dissolved, or shall begin proceedings towards
such liquidation or dissolution, or shall have filed against it a petition or other proceeding to
cause it to be liquidated or dissolved and such proceeding is not dismissed within thirty (30) days
thereafter.

     15.2 Remedies. If an Event of Default shall have occurred and be continuing past any
applicable grace period, Landlord shall have the right, at its election, then or at any time
thereafter, to pursue any one or more of the following remedies, in addition to any and all
remedies which may be permitted by law or by other provisions of this Lease, without further notice
or demand, except as hereinafter provided:

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          (a) Without any notice or demand whatsoever, Landlord may take any one or more actions
permissible at law to ensure performance by Tenant of Tenant’s covenants and obligations under this
Lease. In this regard, it is agreed that if Tenant abandons or vacates the Leased Premises,
Landlord may enter upon and take possession of such Leased Premises in order to protect it from
deterioration and continue to demand from Tenant the monthly rentals and other charges provided in
this Lease. Landlord shall use reasonable efforts to relet but shall have no absolute obligation to
relet. If Landlord does, at its sole discretion, elect to relet the Leased Premises, such action by
Landlord shall not be deemed as an acceptance of Tenant’s surrender of the Leased Premises unless
Landlord expressly notifies Tenant of such acceptance in writing pursuant to subsection (b) of this
Section 15.2, Tenant hereby acknowledging that Landlord shall otherwise be reletting as
Tenant’s agent. It is further agreed in this regard that in the event of any Event of Default
described in Section 15.1, Landlord shall have the right to enter upon the Leased Premises
and do whatever Tenant is obligated to do under the terms of this Lease; and Tenant agrees to
reimburse Landlord on demand for any reasonable expenses which Landlord may incur in thus effecting
compliance with Tenant’s obligations under this Lease, and further agrees that Landlord shall not
be liable for any damages resulting to the Tenant from such action provided that Landlord is not
negligent.

          (b) Landlord may terminate this Lease by written notice to Tenant, in which event Tenant shall
immediately surrender the Leased Premises to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which Landlord may have for possession or arrearage in Rent
(including any interest at the Overdue Rate which may have accrued thereon), enter upon and take
possession of the Leased Premises, expel or remove Tenant and any other person who may be occupying
the Leased Premises or any part thereof, and, at Landlord’s option, relet or operate the Leased
Premises. In addition, Tenant agrees to pay to Landlord on demand the amount of all loss and damage
which Landlord may suffer by reason of any termination effected pursuant to this subsection (b).

          (c) The rights and remedies of Landlord hereunder are cumulative, and pursuit of any of the
above remedies shall not preclude pursuit of any other of the above remedies, any other remedies
prescribed in other sections of this Lease, or any other remedies provided by law or equity.
Forbearance by Landlord to enforce one or more of the remedies herein provided upon an Event of
Default shall not be deemed or construed to constitute a waiver of such Event of Default.

     15.3 Additional Expenses. In addition to all payments required under this Lease, Tenant shall
compensate Landlord for all reasonable expenses incurred by Landlord in repossessing the Leased
Premises and all reasonable expenses incurred by Landlord in reletting (including without
limitation attorney fees, repairs, remodeling, replacements, advertisements and brokerage fees).

     15.4 Application of Funds. All payments otherwise payable to Tenant, if any, which are
received by Landlord under any of the provisions of this Lease during the existence or continuance
of any Event of Default shall be applied to Tenant’s obligations in the order which Landlord may
reasonably determine or as may be prescribed by the laws of the State of Tennessee.

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     15.5 Attorneys’ Fees and Expenses. In the event it becomes necessary for Landlord to employ
an attorney to collect the Rent or any other sums due or payable to Landlord hereunder, Tenant
shall pay and reimburse Landlord for the reasonable attorney’s fees, costs and expenses, including
court costs, incurred by Landlord in connection therewith. With regard to any other disputes
hereunder or efforts to otherwise enforce the terms and provisions of this Lease or preserve,
protect or defend the a party’s rights, interests or remedies hereunder, Landlord and Tenant agree
that the prevailing party will pay and reimburse the other party, on demand therefor, the
reasonable attorneys fees, costs and expenses, including court costs, incurred by the prevailing
party in connection therewith.

ARTICLE 16.

LANDLORD’S RIGHT TO CURE

     If Tenant shall fail to make any payment, or to perform any act required to be made or
performed under this Lease and to cure the same within the relevant time periods provided in
Section 15.1, Landlord, without waiving or releasing any obligation or Event of Default,
may (but shall be under no obligation to) make such payment or perform such act for the account and
at the expense of Tenant, and may, to the extent permitted by law, enter upon the Leased Premises
for such purpose and take all such action thereon as, in Landlord’s opinion, may be necessary or
appropriate therefor. No such entry shall be deemed an eviction of Tenant. All sums so paid by
Landlord, together with interest thereon (to the extent permitted by law) at the Overdue Rate from
the date on which such sums or expenses are paid or incurred by Landlord, and all costs and
expenses (including reasonable attorneys’ fees and expenses, in each case, to the extent permitted
by law) so incurred shall be paid by Tenant to Landlord on demand. The obligations of Tenant and
rights of Landlord contained in this Article shall survive the expiration or earlier termination of
this Lease.

ARTICLE 17.

HOLDING OVER

     If Tenant shall for any reason remain in possession of the Leased Premises after the
expiration of the Term or any earlier termination of the Term hereof, such possession shall be as a
tenancy at will, during which time Base Rent shall be increased to two (2) times the Base Rent in
effect at the time of the holdover and Tenant shall be obligated to continue to perform and observe
all of the terms, covenants and conditions of this Lease and to continue its occupancy and use of
the Leased Premises. Nothing contained herein shall constitute the consent, express or implied, of
Landlord to the holding over of Tenant after the expiration or earlier termination of this Lease or
a waiver of Landlord’s right of re-entry or any other right or remedy hereunder.

ARTICLE 18.

UNAVOIDABLE DELAY

     In the event that either Landlord or Tenant shall be delayed, hindered in, or prevented from
the performance of any act required hereunder by reason of Unavoidable Delay, then the performance
of such act shall be excused for the period of the delay; provided however, that the

Page 27 of 38

 

party so delayed, hindered or prevented shall use its reasonable best efforts to remedy with all
reasonable dispatch the Unavoidable Delay so delaying, hindering or preventing the party from
performance to the extent such party is reasonably or practically able to do so, except that such
party shall in no event be required to settle strikes, lock-outs or other disputes or disturbances
by acceding to the demands of the opposing party or parties when such course is, in the judgment of
such party, unfavorable to such party.

ARTICLE 19.

INDEMNIFICATION

     Notwithstanding the existence of any insurance provided for in Article 12, and without regard
to the policy limits of any such insurance, Tenant will, except for the negligence or willful
misconduct of Landlord or its agents or employees, protect, indemnify, save harmless and defend
Landlord, its agents and employees, from and against any and all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including reasonable attorneys’ fees and
expenses) imposed upon, suffered or incurred by, or asserted against Landlord by reason of, or
arising out of or related to: (a) any accident, injury to or death of persons or loss to property
occurring on or about the Leased Premises during the Lease Term or arising out of or related to the
use and operation of the Leased Premises by Tenant or any business conducted thereon or therefrom
by Tenant during the Lease Term, (b) any use, operation, permitted sublease or assignment, misuse,
non-use, condition, maintenance or repair of the Leased Premises by Tenant during the Lease Term,
(c) any Impositions (which are the obligations of Tenant to pay pursuant to the applicable
provisions of this Lease), (d) any failure on the part of Tenant to perform or comply with any of
the terms of this Lease, (e) the non-performance by Tenant during the Lease Term of any of the
terms and provisions of any and all existing and future subleases of the Leased Premises to be
performed by Tenant as landlord thereunder, and (f) the nonperformance of any contractual
obligation, express or implied, assumed or undertaken by Tenant or any party in privity with Tenant
with respect to the Leased Premises or any business or other activity carried on by Tenant with
respect to the Leased Premises during the Term hereof.

     Notwithstanding the existence of any insurance provided for in Article 12, and without regard
to the policy limits of any such insurance, Landlord will, except for the negligence or willful
misconduct of Tenant or its agents or employees, protect, indemnify, save harmless and defend
Tenant, its agents and employees, from and against any and all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including reasonable attorneys’ fees, and
expenses) imposed upon, suffered or incurred by, or asserted against Tenant by reason of, or
arising out of or related to: (a) any accident, injury to or death of persons or loss to property
occurring on or about the Facility, exclusive of the Leased Premises, during the Lease Term or
arising out of or related to the use and operation of the Facility by Landlord, exclusive of the
Leased Premises during the Lease Term, (b) any use, operation, condition, maintenance or repair of
the Facility exclusive of the Leased Premises by Tenant during the Lease Term, (c) any Impositions
(which are the obligations of Landlord to pay pursuant to the applicable provisions of this Lease),
(d) any failure on the part of Landlord to perform or comply with any of the terms of this Lease,
and (f) the nonperformance of any contractual obligation, express or implied, assumed or undertaken
by Landlord or any party in privity with Landlord with respect to the Facility exclusive of the
Leased Premises.

Page 28 of 38

 

ARTICLE 20.

ASSIGNMENT AND SUBLETTING

     20.1 Assignment and Subletting.

          (a) Landlord may sell, transfer, convey, assign or otherwise dispose of the Leased Premises or
any part thereof, or all or any part of its right, title or interest as Landlord under this Lease,
without the prior written consent of Tenant, provided that no such sale, transfer, conveyance,
assignment or disposition shall be deemed to release or discharge the Leased Premises or any part
thereof from the terms and conditions of this Lease, all of which shall continue in full force and
effect with respect thereto, and further provided that such transferee or assignee agrees in
writing to perform and be bound by all of the terms, covenants and conditions of this Lease with
respect to the Leased Premises or part thereof, or right, title or interest as Landlord hereunder,
so transferred or assigned by Landlord, and such transferee or assignee agrees in writing to
release and hold harmless the then current Landlord, which is currently Noblegene Development, LLC
from any liability or obligation hereunder. Without limiting the forgoing, the transferee or
assignee shall expressly agree in writing that it will honor and be bound by the obligations set
forth in the last sentence of Section 4.6 to return to the Tenant after expiration of this
Lease the Security Deposit or any remaining balance thereof which it shall have received from the
prior owner of the Leased Premises if the Tenant has fully and faithfully complied with all the
terms of this Lease. Any assignee or transferee of the Landlord, upon written request, will provide
Tenant with a subordination nondisturbance agreement or letter providing commercially subordination
and nondisturbance provisions as may be reasonably acceptable to Landlord and Tenant.

          (b) Tenant may not assign all or any part of its rights, title or interest under this Lease,
nor sublet all or any part of the Leased Premises, without the prior written consent of Landlord.
If, after the proposed sublease, Tenant still maintains a presence within the CSLSC, and provided
that Tenant remains liable to Landlord for all terms and conditions of this Lease including without
limitation the payment of Rent to Landlord for the space covered by the proposed sublease,
Landlord’s consent thereto shall not be unreasonably withheld.

          (c) Any attempted transfer, conveyance, assignment or subletting, whether by Landlord or by
Tenant, which is not specifically permitted by this Lease or otherwise approved in accordance with
this Section 20.1 shall be null and void and of no force and effect whatsoever; provided,
however, that Landlord may collect Rent and other charges from the assignee, subtenant or other
occupant and apply the amounts collected to the Rent and other charges herein reserved, but no such
collection shall be deemed to be a waiver of Landlord’s right to enforce the requirements of this
Section 20.1 or a release of Tenant from the performance of any of its covenants and
agreements under this Lease.

     20.2 Subordination. Tenant shall insert in each sublease permitted under Section 20.1
provisions to the effect that (a) such sublease is subject and subordinate to all of the terms and
provisions of this Lease and to the rights of Landlord hereunder.

Page 29 of 38

 

     20.3 Current Subleases. Notwithstanding the restrictions on Tenant’s right to sublease
included in this Article 20, Landlord hereby approves and/or ratifies Tenant’s current subleases
with William Works and Williamson County.

ARTICLE 21.

INSPECTION

     Tenant shall permit Landlord and its authorized representatives, upon prior written notice
(except in the case of emergency), to inspect the Leased Premises during usual business hours
subject to any security, health, safety or confidentiality requirements of Tenant, any governmental
agency, any Insurance Requirements relating to the Leased Premises, or imposed by law or applicable
regulations.

ARTICLE 22.

QUIET ENJOYMENT

     Landlord covenants and agrees that, so long as no Event of Default has occurred and is
continuing, Tenant shall peaceably and quietly have, hold, possess and enjoy the Leased Premises
for the Term hereof, free of any hindrance, claim, disturbance or other action by Landlord or any
other person or entity, subject to the tenant leases and except for any Taking of the Leased
Premises by Condemnation, and that Landlord will, at the request of Tenant, defend the Tenant’s
enjoyment and possession of the Leased Premises against all parties or permit the Tenant, in its
own name and at its own expense, or to the extent lawful, in the Landlord’s name, to defend such
enjoyment and possession.

ARTICLE 23.

NOTICES

     All notices, demands, requests, consents, approvals and other communications hereunder shall
be in writing and delivered by (i) by certified U.S. Mail, return receipt requested, postage
prepaid, return receipt requested as follows:

	 	 	 	 	 	 	 
	(a)

	 	If to Tenant:
	 	(b)
	 	If to Landlord:
	 

	 	BioMimetic Therapeutics, Inc.
	 	 	 	Noblegene Development, LLC
	 

	 	389-A Nichol Mill Lane
	 	 	 	3057 Trotters Lane
	 

	 	Franklin TN 37067
	 	 	 	Franklin, TN 37067
	 

	 	Attn: Jim Monsor
	 	 	 	Attn: John N. Weckesser
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	 	 	With a copy to:
	 

	 	BioMimetic Therapeutics, Inc.
	 	 	 	Charles K. Wray
	 

	 	389-A Nichol Mill Lane
	 	 	 	Bass, Berry & Sims PLC
	 

	 	Franklin, TN 37067
	 	 	 	315 Deaderick Street, Suite 2700
	 

	 	Attn.: General Counsel
	 	 	 	Nashville, TN 37238

Page 30 of 38

 

or to such other address as either party may hereafter designate in writing via certified U.S.
mail, return receipt requested, and shall be effective upon receipt.

ARTICLE 24.

TENANT’S RIGHT OF FIRST OFFER

     24.1 Right of First Offer. Provided that an Event of Default has not occurred and
continuing, if during the term of this Lease and any extensions thereof Landlord desires to sell
all or any part of the Building or any interest therein (“Offered Property”), Landlord shall give
a notice (the “First Offer Notice") to Tenant. The First Offer Notice shall specify the price and
terms of sale or transfer of interest including, without limitation, the description of the
Offered Property, the type of deed or interest to be delivered, the exceptions to which the
Offered Property will be subject, whether or not title insurance will be provided, and the
allocation of responsibility for sales and documentary taxes and other closing costs. The First
Offer Notice shall constitute an offer by Landlord to sell or transfer its interest in the Offered
Property to Tenant on the price and terms and conditions set forth in such notice.

     24.2 Tenant Acceptance/Rejection. Tenant shall, within fifteen (15) days after the giving of
the First Offer Notice (“Offer Period”), give Landlord written notice of either: (1) Tenant’s
desire to accept such offer (the “Acceptance Notice"), or (2) a counter offer setting forth the
price and terms of sale or transfer that would be acceptable to Tenant (“Counter Offer”). In the
event that Tenant shall not give Landlord the Acceptance Notice or Counter Offer within the Offer
Period, and subject to Tenant’s right to tender a Firm Offer in accordance with Section 24.3, for
a period of Twelve (12) months following the Offer Period (“12-Month Sale Period”) Landlord may
sell the Offered Property to any party at any price that Landlord deems appropriate, and nothing
herein shall require Landlord to sell the Offered Property at the price included in the First
Offer Notice. In the event that Tenant gives Landlord one or more Counter Offers within the Offer
Period that are rejected by Landlord, for a period of six (6) months following the Offer Period
(“6-Month Sale Period”), if Landlord elects to sell or transfer the Offered Property at a price
that is less than Tenant’s highest Counter Offer price or on terms more favorable to the acquirer
than the terms included in Tenant’s highest Counter Offer, Landlord shall provide Tenant with
written notice of its intent to do so (“Revised Offer Notice”), and Tenant may elect to acquire
the Offered Property on the proposed new terms in the Revised Offer Notice by providing Landlord
with a written Acceptance Notice within five (5) business days of Tenant’s receipt of the Revised
Offer Notice. Notwithstanding the foregoing provisions, if prior to the expiration of the
applicable 6-Month Sale Period or 12-Month Sale Period Landlord has not entered into a definitive
agreement for the sale or transfer of the Offered Property, any subsequent transaction shall be
subject to Tenant’s Right of First Offer set for the Section 24.1.

     24.3 During any pending 12-Month Sale Period Tenant may tender a firm offer to purchase the
previously Offered Property (“Firm Offer”). If Landlord rejects Tenant’s Firm Offer, Landlord
must provide Tenant written notice of its rejection thereof within five (5) business days of
Landlord’s receipt of the Firm Offer. Upon the date of such written notice of rejection the then
pending 12-Month Sale Period shall terminate and a new 6-Month Sale Period shall begin. If
Landlord subsequently elects during the new 6-Month Sale Period to sell

Page 31 of 38

 

or transfer the Offered Property at a price that is less than Tenant’s Firm Offer price or on
terms more favorable to the acquirer than the terms included in Tenant’s Firm Offer, Landlord
shall provide Tenant with a written Revised Offer Notice, and Tenant may elect to acquire the
Offered Property on the proposed new terms in the Revised Offer Notice by providing Landlord with
a written Acceptance Notice within five (5) business days of Tenant’s receipt of the Revised Offer
Notice.

     24.4 Purchase Agreement. In the event that Tenant gives Landlord an Acceptance Notice or
Landlord accepts a Counter Offer or Firm Offer, then within thirty (30) days thereof, the parties
shall enter into binding letter of intent regarding the transfer of the Offered Property on the
terms stated in the First Offer Notice, Revised Offer Notice, Counter Offer, or Firm Offer and
subject to standard contingencies such as financing and an inspection as may be required. Within
ninety (90) days of the Acceptance Notice the Landlord and Tenant shall enter into a definitive
agreement for the transfer of the Offered Property on the terms stated in the First Offer Notice,
Revised Offer Notice, Counter Offer or Firm Offer, and upon such other terms and conditions to
which the parties agree.

     24.5 Recordation of Right. Tenant shall have the right to record a Memorandum of Tenant’s
Right of First Offer in the official records of Williamson County, Franklin, TN provided that
Landlord reviews and approves the Memorandum of Tenant’s Right of First Offer prior to recordation.

ARTICLE 25.

MOST FAVORED NATIONS CLAUSE

[Intentionally Deleted]

ARTICLE 26.

MISCELLANEOUS

     26.1 No Waiver. No failure by Landlord or Tenant to insist upon the strict performance of any
term hereof or to exercise any right, power or remedy consequent upon an Event of Default, and no
acceptance of full or partial payment of Rent during the continuance of any such Event of Default,
shall constitute a waiver of any such Event of Default or any such term. To the extent permitted by
law, no waiver of any Event of Default shall affect or alter this Lease, which shall continue in
full force and effect with respect to any other then existing or subsequent breach.

     26.2 Remedies Cumulative. To the extent permitted by law, each legal, equitable or
contractual right, power and remedy of Landlord or Tenant now or hereafter provided, either in this
Lease or by statute or otherwise, shall be cumulative and concurrent and shall be in addition to
every other right, power and remedy and the exercise or beginning of the exercise by Landlord or
Tenant of any one or more of such rights, powers and remedies shall not preclude the simultaneous
or subsequent exercise by Landlord or Tenant of any or all of such other rights, powers and
remedies.

Page 32 of 38

 

     26.3 Surrender. No surrender to Landlord of this Lease or of the Leased Premises or any part
thereof or of any interest therein, shall be valid or effective, unless agreed to and accepted in
writing by Landlord and no act by Landlord or any representative or agent of Landlord, other than
such a written acceptance by Landlord, shall constitute an acceptance of any such surrender.

     26.4 No Merger of Title. There shall be no merger of this Lease or of the leasehold estate
created hereby by reason of the fact that the same person, firm, corporation or other entity may
acquire, own or hold, directly or indirectly, this Lease or the leasehold estate created hereby or
any interest in this Lease or such leasehold estate and the fee estate in the Leased Premises.

     26.5 Transfers by Landlord. If Landlord shall convey the Leased Premises in accordance with
the terms hereof other than as security for a debt, the grantee or transferee of the Leased
Premises shall expressly assume all obligations of Landlord hereunder arising or accruing from and
after the date of such conveyance or transfer, and Landlord shall thereupon be released from all
future liabilities and obligations of Landlord under this Lease arising or accruing from and after
the date of such conveyance or other transfer and all such future liabilities and obligations shall
thereupon be binding upon the new owner.

     26.6 General. Anything contained in this Lease to the contrary notwithstanding, all claims
against, and liabilities of, Tenant and Landlord against the other arising out of or relating to
this Lease and arising prior to any date of expiration or termination of this Lease shall survive
such expiration or termination. If any term or provision of this Lease or any application thereof
shall be invalid or unenforceable, the remainder of this Lease and any other application of such
term or provision shall not be affected thereby. If any late charges provided for in any provision
of this Lease are based upon a rate in excess of the maximum rate permitted by applicable law, the
parties agree that such charges shall be fixed at the maximum permissible rate. Neither this Lease
nor any provision hereof may be changed, waived, discharged or terminated, except by an instrument
in writing signed by Landlord and Tenant. All the terms and provisions of this Lease shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. The headings in this Lease are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof. This Lease may be executed in one or more counterparts, each
of which shall be an original but, when taken together, shall constitute but one document.

     26.7 Memorandum of Lease. Landlord and Tenant shall, promptly upon the request of either,
enter into a short form memorandum of this Lease in form suitable for recording under the laws of
the state in which the Leased Premises is located in which reference to this Lease shall be made.

     26.8 Choice of Law and Venue. This Lease shall be governed by and constructed in accordance
with the laws of the State of Tennessee. Venue shall be in Williamson County, Tennessee.

     26.9 Successors. The term “Landlord” shall mean only the owner or owners at the time in
question of fee title in the Leased Premises. All rights and obligations of Landlord and

Page 33 of 38

 

Tenant under this Lease shall extend to and bind the respective heirs, executors,
administrators and the permitted successors, subtenants and assignees of the parties.

     26.10 Saturdays, Sundays and Holidays. If the date on which any payment or performance to be
made, observed or performed under this Lease falls on a Saturday, Sunday or national bank holiday
or bank holiday under the laws of the State of Tennessee, the date when such payment or performance
is due shall be automatically extended to the next succeeding Business Day.

     26.11 No Partnership. Nothing contained in this Lease shall be deemed or construed to create
the relationship of principal or agent, a partnership or joint venture between Landlord and Tenant
or to cause either party to be responsible in any way for the debts or obligations of the other or
any other party, it being the intention of the parties that the only relationship hereunder is that
of Landlord and Tenant.

     26.12 No Third Parties. This Lease is solely for the benefit of the Landlord and the Tenant
and their respective successors and permitted assigns. Nothing contained in this Lease, express or
implied, is intended to or shall confer upon or create in any person or entity, other than the
Landlord and the Tenant, their respective successors and permitted assigns, any rights or remedies
under or by reason of this Lease, and no other person or entity shall be deemed to be a beneficiary
of the terms, conditions, covenants and agreements contained and set forth in this Lease.

     26.13 Real Estate Fees. Each party hereby represents and warrants to the other that they have
incurred no claims for brokerage commissions, finder’s fees or any other real estate fees in
connection with this Lease, and each party agrees to indemnify and hold the other party harmless
from all liabilities arising from any such claims, including, but not limited to, attorney’s fees,
for any claims for real estate fees on the initial or any extended term of this Lease or for any
other of Tenant’s leases in the CSLSC. Landlord hereby discloses to Tenant that The Stanton Group,
Inc, may receive compensation associated with this Lease, but said compensation, if any shall be
under separate agreement with and at Landlord’s sole cost and expense. Any real estate
representation on behalf of Tenant shall be at Tenant’s sole cost and expense for this Lease, any
extensions thereof or any other of Tenant’s leases in the CSLCS or other property owned by
Landlord.

Page 34 of 38

 

     26.14 Arm’s Length Transaction. The Parties hereby assert and agree that this Lease is an
Arm’s Length transaction. Both parties have been advised to and have sought legal representation
in this matter.

     IN WITNESS WHEREOF, the parties have caused this Lease to be executed by their respective
officers thereunto duly authorized as of the date first written above.

	 	 	 	 	 	 	 
	LANDLORD
	 	TENANT
	
NOBLEGENE DEVELOPMENT, LLC
	 	BIOMIMETIC
THERAPEUTICS, INC.
	BY: /s/	 	
John N. Weckesser
 

John N Weckesser

Title: Managing Member
	 	BY: /s/
	 	Larry Bullock
 

Larry Bullock

Title: Chief Financial Officer

Page 35 of 38

 

SCHEDULE 9.1

	 	 	 	 	 	 	 	 	 
	 	 	Date	 	 	Amount	 
	Capital Addition	 	Completed	 	 	Expended	 
	130 KVA Uninterrupted Power Supply (UPS)
	 	July, 2005	 	$	130,980.00	 
	UPS Switch Gear and Disconnect Switch
	 	July, 2005	 	$	1,500.00	 
	Total
	 	 	 	 	 	$	132,480.00	 

Page 36 of 38

 

SCHEDULE 10

INTENTIONALLY LEFT BLANK

 

 

[BioMimetic Therapuetics, Inc. Letterhead]

May 1, 2007

John N. Weckesser

Noblegene Development, LLC

3057 Trotters Lane

Franklin, TN 37067

     Re: April 2007 Lease for Cool Springs Life Science Center Building A

Dear Mr. Weckesser:

     I am writing to confirm the agreement between BioMimetic Therapeutics, Inc. and Noblegene
Development, LLC regarding Noblegene’s obligations to BioMimetic pursuant to Section 6.3 of the
Lease for Building A of the Cool Springs Life Science Center dated May 1, 2007 (“Lease”). In
particular, BioMimetic hereby agrees to waive all of its rights under the second paragraph of
Section 6.3 of the Lease (including its rights to indemnification by Noblegene), except to the
extent Noblegene currently has knowledge of “Hazardous Substances” (as defined in the Lease) within
the Cool Springs Life Science Center for which BioMimetic did not cause to be present on the
property. This waiver shall be nontransferable and shall apply only to Noblegene.

     Please countersign this letter, if you agree that this accurately reflects the understanding
between the parties regarding this matter.

Sincerely,

/s/ Larry Bullock

Larry Bullock

Chief Financial Officer

AGREED:

Noblegene Development, LLC

By: /s/ John Weckesser

       John Weckesser

       President

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