Document:

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LOAN AGREEMENT

     THIS LOAN AGREEMENT (this “Agreement”) is made as of August 15, 2007 (the “Closing Date”), by
and between GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Lender”), and SUMMIT
HOTEL PROPERTIES, LLC, a South Dakota limited liability company (“Borrower”).

AGREEMENT:

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

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

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

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

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

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

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

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

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

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

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

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

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

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

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

     “Fee” means an underwriting, site assessment, valuation, construction, processing and
commitment fee equal to 0.65% of the Loan Amount.

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

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

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

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

     “GAAP” means generally accepted accounting principles consistently applied.

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

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

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

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

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

     “Loan Amount” means $11,300,000.00.

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

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

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

     “Manager” means The Summit Group, Inc.

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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     “OFAC Laws and Regulations” means Executive Order 13224 issued by the President of the United
States of America, the Terrorism Sanctions Regulations (Title 31 Part 595 of the U.S. Code of
Federal Regulations), the Terrorism List Governments Sanctions Regulations (Title 31 Part 596 of
the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations
(Title 31 Part 597 of the U.S. Code of Federal Regulations), and the Cuban Assets Control
Regulations (Title 31 Part 515 of the U.S. Code of Federal Regulations), and all other present and
future federal, state and local laws, ordinances, regulations, policies, lists (including, without limitation, the
Specially Designated Nationals and Blocked Persons List) and any other requirements of any
Governmental Authority (including, without limitation, the United States Department of the Treasury
Office of Foreign Assets Control) addressing, relating to, or attempting to eliminate, terrorist
acts and acts of war, each as hereafter supplemented, amended or modified from time to time, and
the present and future rules, regulations and guidance documents promulgated under any of the
foregoing, or under similar laws, ordinances, regulations, policies or requirements of other states
or localities.

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

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

     “Permitted Concept” means a hotel and Cambria Suites.

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

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

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

     “Title Company” means Lawyers Title Insurance Corporation.

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

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

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

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

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

     3.       Escrow Agent; Closing Costs. Borrower and Lender hereby employ Title Company to act as
escrow agent in connection with the transactions described in this Agreement. Borrower and Lender
will deliver to Title Company all documents, pay to Title Company all sums and do or cause to be
done all other things necessary or required by this Agreement, in the reasonable judgment of Title
Company, to enable Title Company to comply herewith and to enable any title insurance policy
provided for herein to be issued. Title Company shall not cause the transaction to close unless
and until it has received written instructions from Lender and Borrower to do so. Title Company is
authorized to pay, from any funds held by it for Lender’s or Borrower’s respective credit all
amounts necessary to procure the delivery of such documents and to pay, on behalf of Lender and
Borrower, all charges and obligations payable by them, respectively. Borrower will pay all charges
payable by it to Title Company. Title Company is authorized, in the event any conflicting demand
is made upon it concerning these instructions or the escrow, at its election, to hold any documents
or funds deposited hereunder until an action shall be brought in a court of competent jurisdiction
to determine the rights of Borrower and Lender or to interplead such documents or funds in an
action brought in any such court. Deposit by Title Company of such documents and funds, after
deducting therefrom its charges and its expenses and attorneys’ fees incurred in connection with
any such court action, shall relieve Title Company of all further liability and responsibility for
such documents and funds. Title Company’s receipt of this Agreement and opening of

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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an escrow
pursuant to this Agreement shall be deemed to constitute conclusive evidence of Title Company’s
agreement to be bound by the terms and conditions of this Agreement pertaining to Title Company.
Disbursement of any funds shall be made by check, certified check or wire transfer, as directed by
Borrower and Lender. Title Company shall be under no obligation to disburse any funds represented
by check or draft, and no check or draft shall be payment to Title Company in compliance with any
of the requirements hereof, until it is advised by the bank in which such check or draft is
deposited that such check or draft has been honored. Title Company is authorized to act upon any
statement furnished by the holder or payee, or a collection agent for the holder or payee, of any
lien on or charge or assessment in connection with the Premises, concerning the amount of such
charge or assessment or the amount secured by such lien, without liability or responsibility for
the accuracy of such statement. The employment of Title Company as escrow agent shall not affect
any rights of subrogation under the terms of any title insurance policy issued pursuant to the provisions thereof.
Notwithstanding the foregoing, the terms and conditions of this Agreement shall not limit or affect
Title Company’s liability or obligations under the Disbursement Agreement.

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

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

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

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

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

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

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

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GECC Property No. 8004-8031

Baton Rouge, Louisiana

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     G.       Fee and Closing Costs. Borrower shall have paid the Fee to Lender and shall have paid all
costs of the transactions described in this Agreement, including, without limitation, the cost of
title insurance premiums and all endorsements required by Lender, survey charges, UCC and
litigation search charges, the attorneys’ fees of Borrower, reasonable attorneys’ fees (not to
exceed $7,500.00) and expenses of Lender, the cost of the environmental due diligence undertaken
pursuant to Section 4.C, Lender’s site inspection costs and fees, stamp taxes, mortgage taxes,
transfer fees, escrow, filing and recording fees and UCC filing and recording fees (including
preparation, filing and recording fees for UCC continuation statements). Borrower shall have also
paid all real and personal property and other applicable taxes and assessments and other charges
relating to the Premises which are due and payable on or prior to the Closing Date as well as taxes
and assessments due and payable subsequent to the Closing Date but which Title Company requires to
be paid at Closing as a condition to the issuance of the title insurance policy described in
Section 4.A.

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

     A.       Financial Information. (1) Borrower has delivered to Lender certain financial statements
and other information concerning the Borrower Parties in connection with the transaction described
in this Agreement (collectively, the “Financial Information”). The Financial Information is true,
correct and complete in all material respects; there have been no amendments to the Financial
Information since the date such Financial Information was prepared or delivered to Lender.
Borrower understands that Lender is relying upon the Financial Information and Borrower represents
that such reliance is reasonable. All annual financial statements included in the Financial
Information were prepared in accordance with GAAP and fairly present as of the date of such
financial statements the financial condition of each individual or
entity to which they pertain. No change has occurred with respect to the financial condition
of any of the Borrower Parties or the Premises as reflected in the Financial Information, which has
not been disclosed in writing to Lender or has had, or could reasonably be expected to result in, a
Material Adverse Effect.

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

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

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

     D.       Litigation. There are no suits, actions, proceedings or investigations pending, or to the
best of its knowledge, threatened against or involving the Borrower Parties or the Premises before
any arbitrator or Governmental Authority, except for such suits, actions, proceedings or
investigations which,

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GECC Property No. 8004-8031

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individually or in the aggregate, have not had, and would not reasonably be
expected to result in, a Material Adverse Effect.

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

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

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

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

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

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

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

     L.       No Mechanics’ Liens. Except as set forth on Exhibit C attached hereto, there are no
delinquent accounts payable or mechanics’ liens in favor of any materialman, laborer, or any other
person or entity in connection with labor or materials furnished to or performed on any portion of
the Premises; and no work has been performed or is in progress nor have materials been supplied to
the Premises or

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GECC Property No. 8004-8031

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agreements entered into for work to be performed or materials to be supplied to the
Premises prior to the date hereof, which will be delinquent on or before the Closing Date.

     M.       Franchisor Provisions. The Premises have been approved by Franchisor and Franchisor has
either entered into a franchise, license or area development agreement with Borrower with respect
to the Premises or has agreed to enter into such agreement with Borrower upon the completion of the
construction of the Improvements. If such franchise, license or area development agreement has
been entered into prior to the date of this Agreement: (1) Borrower has delivered to Lender a true,
correct and complete copy of the Franchise Agreement; (2) the Franchise Agreement is the only
agreement in effect with Franchisor with respect to the Premises; (3) the Franchise Agreement is in
full force and effect and constitutes the legal, valid and binding obligations of the parties to
the Franchise Agreement, enforceable in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, liquidation, reorganization and other laws
affecting the rights of creditors generally and general principles of equity; (4) none of the
Borrower Parties has assigned, transferred, mortgaged, hypothecated or otherwise encumbered the
Franchise Agreement or any rights thereunder or any interest therein, and none of the Borrower
Parties has received any notice that Franchisor has made any assignment, pledge or hypothecation of
all or any part of its rights or interest in the Franchise Agreement; (5) no notice of default from
Franchisor has been received under the Franchise Agreement which has not been cured and no notice
of default to Franchisor has been given under the Franchise Agreement which has not been cured; (6)
no event has occurred and no condition exists which, with the giving of notice or the lapse of time
or both, would constitute a default under the Franchise Agreement; and (7) the Franchise Agreement
has a term (inclusive of existing renewal options) which will expire after the scheduled maturity
date of the Amended and Restated Note.

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

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

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

     O.       Management Agreement. Borrower has delivered to Lender a true, correct and complete copy
of the Management Agreement. The Management Agreement is the only agreement in effect with Manager
with respect to the Premises. The Management Agreement is in full force and effect and constitutes
the legal, valid and binding obligations of the parties to the Management Agreement, enforceable in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, liquidation, reorganization and other laws affecting the rights of creditors generally
and general principles of equity. As it relates to the Premises, Borrower has not assigned,
transferred, mortgaged, hypothecated or otherwise encumbered the Management Agreement or any rights
thereunder or any interest therein, and Borrower has not received any notice that Manager has made
any assignment, pledge or hypothecation of all or any part of its rights or interest in the

GECC Contract No. 32775

GECC Property No. 8004-8031

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Management Agreement. No notice of default from Manager has been received under the Management
Agreement that has not been cured and no notice of default to Manager has been given under the
Management Agreement which has not been cured. No event has occurred and no condition exists
which, with the giving of notice or the lapse of time or both, would constitute a default under the
Management Agreement.

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

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

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

     G.       Financial Statements. From and after the Completion Date, within 45 days after the end of
each fiscal quarter and within 120 days after the end of each fiscal year of Borrower, Borrower
shall deliver to Lender (1) complete financial statements of the Borrower Parties including a
balance sheet, profit and loss statement, statement of cash flows and all other related schedules
for the fiscal period then ended; (2) income statements for the business at the Premises; (3)
standard hotel data of rooms sold and rooms available, as well as gross revenue breakdown of room
revenue from other revenue, so that occupancy ADR and RevPar Statistics can be calculated; and (4)
such other financial information as Lender may reasonably request in order to establish compliance
with the financial covenants in the Loan Documents, including, without limitation, Section 6.J of
this Agreement. All such annual financial statements shall be prepared in accordance with GAAP
from period to period, and shall be certified to be accurate and complete by Borrower (or the
Treasurer or other appropriate officer of Borrower). In the event the property and business at the
Premises is ordinarily consolidated with other business for financial statement purposes, such
financial statements shall be prepared on a consolidated basis showing separately the sales,
profits and losses, assets and liabilities pertaining to the Premises with the basis for allocation
of overhead of other charges being clearly set forth. The financial statements delivered to Lender
need not be audited, but Borrower shall deliver to Lender copies of any audited financial
statements of Borrower which may be prepared, as soon as they are available. Borrower shall also
cause to be delivered to Lender copies of any financial statements required to be delivered to
Borrower by any tenants of the Premises.

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

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

     J.       Debt Service Coverage Ratio. From and after the Completion Date, Borrower shall maintain a
Debt Service Coverage Ratio of at least 1.25:1 before distribution payouts and 1.0:1 after
distribution payouts, as determined as of Borrower’s fiscal year end. For purposes of this
Section, the term “Debt Service Coverage Ratio” shall mean with respect to the twelve month period
of time immediately preceding the date of determination, the ratio calculated for such period of
time, each as determined in accordance with GAAP, of (1) earnings before Interest Expense, income
taxes,

GECC Contract No. 32775

GECC Property No. 8004-8031

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Depreciation and Amortization, plus or minus other non-recurring renovation/remodel expenses
funded with the proceeds of a loan or other non-operating sources to (2) principal and interest
payments on the aggregate first mortgage term debt.

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

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

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

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

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

     7.       Prohibition on Change of Control and Pledge. A. Without limiting the terms and conditions
of Section 3.09 of the Mortgage, Borrower agrees that, from and after the Closing Date and until
all of the Obligations are satisfied in full, without the prior written consent of Lender: (1) no
Change of Control shall occur; and (2) no interest in any of the Borrower Parties shall be pledged,
encumbered, hypothecated or assigned as collateral for any obligation of any of the Borrower
Parties (each, a “Pledge”). In addition, no interest in any of the Borrower Parties, or in any
individual or person owning directly or indirectly any interest in any of the Borrower Parties,
shall be transferred, assigned or conveyed to any individual or person whose property or interests
are subject to being blocked under any of the OFAC Laws and Regulations or who is in violation of
any of the OFAC Laws and Regulations, and any such transfer, assignment or conveyance shall not be
effective until the transferee has provided written certification to Borrower and Lender that (x)
the transferee or any person who owns directly or indirectly any interest in transferee, is not an
individual or entity whose property or interests are subject to being blocked under any of the OFAC
Laws and Regulations or is otherwise in violation of the OFAC Laws and Regulations, and (y) the
transferee has taken reasonable measures to assure than any individual or entity who owns directly
or indirectly any interest in transferee, is not an individual or entity whose property or
interests are subject to being blocked under any of the OFAC Laws and Regulations or is otherwise
in violation of the OFAC Laws and Regulations; provided, however, the covenant contained in this
sentence shall not apply to any Person to the extent that such Person’s interest is in or through a
U.S. Publicly-Traded Entity.

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

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

     B.       It is the intent of the parties hereto that the business relationship created by the Loan
Documents is solely that of creditor and debtor and has been entered into by both parties in
reliance upon the economic and legal bargains contained in the Loan Documents. None of the
agreements contained

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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in the Loan Documents is intended, nor shall the same be deemed or construed,
to create a partnership (either de jure or de facto) between Borrower and Lender, to make them
joint venturers, to make Borrower an agent, legal representative, partner, subsidiary or employee
of Lender, nor to make Lender in any way responsible for the debts, obligations or losses of
Borrower.

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

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

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

     B.       Upon the occurrence and during the continuance of an Event of Default, subject to the
limitations set forth in subsection A, Lender may declare all or any part of the obligations of
Borrower under the Note, this Agreement and any other Loan Document to be due and payable, and the
same shall thereupon become due and payable without any presentment, demand, protest or notice of
any kind except as otherwise expressly provided herein, and Borrower hereby waives notice of intent
to accelerate the obligations secured by the Mortgage and notice of acceleration. Thereafter,
Lender may exercise, at its option, concurrently, successively or in any combination, all remedies
available at law or in equity, including without limitation any one or more of the remedies
available under the Note, the Mortgage or any other Loan Document. Neither the acceptance of this
Agreement nor its enforcement shall prejudice or in any manner affect Lender’s right to realize
upon or enforce any other security now or hereafter held by Lender, it being agreed that Lender
shall be entitled to enforce this Agreement and any other security now or hereafter held by Lender
in such order and manner as it may in its absolute discretion determine. No remedy herein
conferred upon or reserved to Lender is intended to be exclusive of any other remedy given
hereunder or now or hereafter existing at law or in equity or by statute. Every power or remedy
given by any of the Loan Documents to Lender, or to which Lender may be otherwise entitled, may be
exercised, concurrently or independently, from time to time and as often as may be deemed expedient
by Lender.

     10.       Indemnity; Release. A. Initially capitalized terms in this Section that are not otherwise
defined in this Agreement shall have the meanings set forth in the Environmental Indemnity
Agreement. Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and
hold harmless each of the Indemnified Parties for, from and against any and all claims, suits,
liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations,
debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, charges, fees,
expenses, judgments, awards, amounts paid in settlement and damages of whatever kind or nature
(including, without limitation, attorneys’ fees, court costs and other costs of defense)
(collectively, “Losses”) (excluding Losses suffered by an Indemnified Party directly arising out of
such Indemnified Party’s gross negligence or willful misconduct; provided, however, that the term
“gross negligence” shall not include gross negligence imputed as a matter of law to any of the
Indemnified Parties solely by reason of Borrower’s interest in the Premises or Borrower’s failure to act in respect of matters which are or were the obligation
of Borrower under the Loan Documents and the Development Documents), and costs of Remediation
(whether or not performed voluntarily), engineers’ fees, environmental consultants’ fees, and costs
of investigation (including but not limited to sampling, testing, and analysis of soil, water, air,
building materials and other materials and substances whether solid, liquid or gas) imposed upon or
incurred by or asserted against any Indemnified Parties, and directly or indirectly arising out of
or in any way relating to any one or more of the following: (1) any presence of any Hazardous
Materials in, on, above, or under the Premises introduced to the Premises prior to or during the
ownership of the Premises by Borrower; (2) any past, present or Threatened Release in, on, above,
under or from the Premises regarding Hazardous Materials introduced to the Premises prior to or
during the ownership of the Premises by Borrower; (3) any activity

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

17

 

by Borrower, any person or
entity affiliated with Borrower or any tenant or other user of the Premises in connection with any
actual, proposed or threatened use, treatment, storage, holding, existence, disposition or other
Release, generation, production, manufacturing, processing, refining, control, management,
abatement, removal, handling, transfer or transportation to or from the Premises of any Hazardous
Materials at any time located in, under, on or above the Premises; (4) any activity by Borrower,
any person or entity affiliated with Borrower or any tenant or other user of the Premises in
connection with any actual or proposed Remediation of any Hazardous Materials at any time located
in, under, on or above the Premises, whether or not such Remediation is voluntary or pursuant to
court or administrative order, including but not limited to any removal, remedial or corrective
action; (5) any past, present or threatened non-compliance or violations of any Environmental Laws
(or permits issued pursuant to any Environmental Law) in connection with the Premises or operations
thereon, regarding Hazardous Materials introduced to the Premises prior to or during the ownership
of the Premises by Borrower, including but not limited to any failure by Borrower, any person or
entity affiliated with Borrower or any tenant or other user of the Premises to comply with any
order of any Governmental Authority in connection with any Environmental Laws; (6) the imposition,
recording or filing or the threatened imposition, recording or filing of any Environmental Lien
encumbering the Premises regarding Hazardous Materials introduced to the Premises prior to or
during the ownership of the Premises by Borrower; (7) any administrative processes or proceedings
or judicial proceedings in any way connected with any matter addressed in this Agreement; (8) any
past, present or threatened injury to, destruction of or loss of natural resources in any way
connected with the Premises regarding Hazardous Materials introduced to the Premises prior to or
during the ownership of the Premises by Borrower, including but not limited to costs to investigate
and assess such injury, destruction or loss; (9) any acts of Borrower, any person or entity
affiliated with Borrower or any tenant or other user of the Premises in arranging for disposal or
treatment, or arranging with a transporter for transport for disposal or treatment, of Hazardous
Materials owned or possessed by Borrower, any person or entity affiliated with Borrower or any
tenant or other user, at any facility or incineration vessel owned or operated by another person or
entity and containing such or similar Hazardous Materials; (10) any acts of Borrower, any person or
entity affiliated with Borrower or any tenant or other user of the Premises, in accepting any
Hazardous Materials for transport to disposal or treatment facilities, incineration vessels or
sites selected by Borrower, any person or entity affiliated with Borrower or any tenant or other
user of the Premises, from which there is a Release, or a Threatened Release of any Hazardous
Materials which causes the incurrence of costs for Remediation; (11) any personal injury, wrongful
death, or property damage arising under any statutory or common law or tort law theory regarding
Hazardous Materials introduced to the Premises prior to or during the ownership of the Premises by
Borrower, including but not limited to damages assessed for the maintenance of a private or public
nuisance or for the conducting of an abnormally dangerous activity on or near the Premises; (12)
any disclosures of information, financial or otherwise, (x) made by (i) Lender or Lender’s
employees, officers, agents and designees to Franchisor or any third party as contemplated by
Section 11.R of this Agreement, or (ii) any employee, officer, agent or representative of
Franchisor to Lender or any other Indemnified Par
ty, or (y) obtained from any credit reporting
agency with respect to Borrower, any guarantor of the Loan, any Affiliate of Borrower, any of the
other Borrower Parties or any operator or lessee of the Premises; or (13) any misrepresentation or
inaccuracy in any representation or warranty by Borrower or material breach or failure to perform
by Borrower of any covenants or other obligations pursuant to this Agreement. Notwithstanding the
above, Borrower shall not be liable for the acts of tenants or other users occurring after the
Borrower no longer owns the Premises.

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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     11.       Miscellaneous Provisions.

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

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

     C.       Waiver and Amendment; Document Review. (1) No provisions of this Agreement or the other
Loan Documents shall be deemed waived or amended except by a written instrument unambiguously
setting forth the matter waived or amended and signed by the party against which enforcement of
such waiver or amendment is sought. Waiver of any matter shall not be deemed a waiver of the same
or any other matter on any future occasion.

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

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

     I.       Attorneys’ Fees. In the event of any judicial or other adversarial proceeding between the
parties concerning this Agreement or the other Loan Documents, the prevailing party shall be
entitled to recover its reasonable attorneys’ fees and other costs in addition to any other relief
to which it may be entitled.

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

     K.       Forum Selection; Jurisdiction; Venue; Choice of Law. Borrower acknowledges that this
Agreement and the other Loan Documents were substantially negotiated in the State of Arizona, this
Agreement and the other Loan Documents were executed by Lender in the State of Arizona and
delivered by Borrower in the State of Arizona, all payments under the Note will be delivered in the
State of Arizona and there are substantial contacts between the parties and the transactions
contemplated herein and the State of Arizona. For purposes of any action or proceeding arising out
of this Agreement or any of the other Loan Documents, the parties hereto hereby expressly submit to
the jurisdiction of all federal and state courts located in the State of Arizona and Borrower
consents that it may be served with any process or paper by registered mail or by personal service
within or without the State of Arizona in accordance with applicable law. Furthermore, Borrower
waives and agrees not to assert in any such action, suit or proceeding that it is not personally subject to the jurisdiction of such
courts, that the action, suit or proceeding is brought in an inconvenient forum or that venue of
the action, suit or proceeding is improper. It is the intent of the parties hereto that all
provisions of this Agreement and the Note shall be

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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governed by and construed under the laws of the
State of Arizona, without giving effect to its principles of conflicts of law. To the extent that
a court of competent jurisdiction finds Arizona law inapplicable with respect to any provisions of
this Agreement or the Note, then, as to those provisions only, the laws of the state where the
Premises is located shall be deemed to apply. Nothing in this Section shall limit or restrict the
right of Lender to commence any proceeding in the federal or state courts located in the state in
which the Premises is located to the extent Lender deems such proceeding necessary or advisable to
exercise remedies available under this Agreement or the other Loan Documents.

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

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

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

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

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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

	 	 	 	 	 
	 	LENDER:

GENERAL ELECTRIC CAPITAL CORPORATION, 

a Delaware corporation

 	 
	 	By    /s/ Kelly A. Hallford
 	 
	 	Name:  	Printed Kelly A. Hallford 	 
	 	Its: Authorized Signatory 	 
	 

	 	 	 	 	 
	 	BORROWER:

SUMMIT HOTEL PROPERTIES, LLC, 

a South Dakota limited liability company

 	 
	 	By:  	/s/ Christopher D. Bills
 	 
	 	 	Name:  	Printed Christopher D. Bills 	 
	 	 	Its: Chief Financial Officer 	 
	 

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

24

 

	 	 	 	 	 	 	 
	STATE OF ARIZONA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF ________________________

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on                               ,
2007 by                               ,                                of General Electric
Capital Corporation, a Delaware corporation, on behalf of the corporation.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 
	 

My Commission Expires:

___________________________________

	 	 	 	 	 	 	 
	STATE OF ARIZONA

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS.
	COUNTY OF MARICOPA

	 	 	)	 	 	 

     The foregoing instrument was acknowledged before me on August 13, 2007 by Christopher D.
Bills, Chief Financial Officer of Summit Hotel Properties, LLC, a South Dakota limited liability
company, on behalf of the limited liability company.

	 	 	 	 	 
	 	 	 
	 	                                                       /s/ Jennifer L. Curry
 	 
	 	Notary Public 	 
	 	 	 
	 

My Commission Expires:

3/24/2011

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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EXHIBIT A

DESCRIPTION OF PREMISES

A certain tract of land situated in the Parish of East Baton Rouge, State of Louisiana, designated
according to a map by Baton Rouge Land Surveying, Inc., dated December 11, 2000 entitled “Map
Showing Survey and Resubdivision of Tract E-1-A, a portion of the Former Aldrich Estate into Tract
E-1-A-1 & E-1-A-2 located in Section 94, Township 7 South, Range 1 East, GLD, East Baton Rouge
Parish, Louisiana for Parkland Investments, Inc.” as Tract E-1-A-1, recorded as Original 722,
Bundle 11183 in the official records of the Clerk and Recorder of East Baton Rouge Parish, LA.

Tax ID #018-2116-4

GECC Contract No. 32775

GECC Property No. 8004-8031

Baton Rouge, Louisiana

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EXHIBIT B

Form of Amended and Restated Note

[attached]

 

 

Exhibit C

(Disclosures per Section 5L)

NoneEX-10.1 LEASE AGREEMENT DATED AUGUST 17, 2007

 

EXHIBIT 10.1

LEASE AGREEMENT

     THIS LEASE AGREEMENT (the “Lease”) dated as of the 17th day of August, 2007, to be
effective on the date last executed below, under the terms and conditions 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”).

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) Thirty-Thousand (30,000) square feet of rentable space (as determined under applicable
BOMA standards) in the area designated on Exhibit A hereto (herein the “Leased Premises”) in the
office building being constructed or to be constructed by Landlord and known as “Building C” of the
Cool Springs Life Sciences Center (herein “CSLSC”) located at 389-C Nichol Mill Lane (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.”

     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 earlier of (a) the date in which the Tenant Improvement Work (hereinafter
defined) commences; or (b) the date in which the Building Shell has reached Substantial Completion
(the “Commencement Date”). Anticipated start date for the Tenant Improvement Work is on or about
March 1, 2008, but the actual start date for the Tenant Improvement Work shall be mutually agreed
upon by the parties, in writing. 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. The “Substantial Completion” of the Building shall mean that either (1) the
Landlord’s architect shall have delivered its Certificate of Substantial Completion for the
Building Shell in which the Leased Premises are located (herein the “Building Shell”), or (ii) the
Landlord shall have obtained a Certificate of Occupancy or the local equivalent for the Building
Shell from the appropriate City and/or County authorities. Substantial Completion of the Building
shall occur no more than six (6) months after the construction of Tenant Improvement Work within
the Building has begun or Tenant will be

Page 1of 37

 

entitled to a fifty percent (50%) reduction in the Base
Rent for each month or portion thereof beyond such six (6) months until the Substantial Completion
of the Building Shell. Tenant shall have the right to extend the term of this Lease for a period
of five (5) years (“First Extension Term”) upon written notice to Landlord, no later than 12 months
prior to the Term Expiration Date of the Initial Term. 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 year prior to the First Extension Term, plus any increase as provided for in Section
3.3 of the Lease and escalating each year thereafter as provided for 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 written notice to
Landlord, no later than 12 months prior to the Term Expiration Date of the First Extension Term.
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 3.3 and escalating each year thereafter as provided
for 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, including any and all extensions of any kind,
whatsoever, allowed for by this Lease, this Lease shall terminate as to the Facility (the “Term
Expiration Date”).

     (b) In accordance with the provisions of Section 1.2 (a) of this Lease, Landlord shall notify
Tenant in writing of the exact date of the Commencement Date once the Commencement Date has been
determined.

     (c) If condemnation, in whole or in part, or any threat of condemnation or similar taking
occurs or if a casualty of any type occurs respecting the Facilities or any part thereof prior to
the Commencement Date, Landlord may, either (a) cancel this Lease, in which event this Lease shall
become null and void, and the parties hereto shall be released of all obligations to each other,
except for any obligations which, by their terms, expressly survive, or (b) rebuild the Leased
Premises, or any portion thereof, in which event this Lease shall remain in full force and effect.
Under no circumstances prior to the Commencement Date shall Tenant have any interest in insurance
or condemnation proceeds payable as a result of either a condemnation or other taking or as a
result of casualty.

     (d) The parties hereto hereby acknowledge and agree that the Landlord’s obligations and those
of its successors and assigns under this Lease, where applicable, are conditioned on and subject
to (a) Landlord’s securing all necessary or desirable regulatory, subdivision, zoning or other
permits or approvals for the construction, operation and use of the Building for the purposes to
which Landlord desires, all as Landlord may determine in its discretion; (b) the Landlord’s
obtaining of financing for construction and/or permanent ownership of the Building; and (c) the
construction of the Building and the Common Areas, all as Landlord may determine in its discretion.
In the event that the foregoing conditions are not satisfied or the Landlord determines that it is
or will be unable to fulfill any of the foregoing conditions, then Landlord may terminate this
Lease immediately by delivering in writing notice thereof to the Tenant.

     (e) Tenant understands Landlord cannot guarantee completion of the Building by any certain
date. Tenant acknowledges and agrees that (a) Landlord will not be liable for any delays in
completion of the Tenant Improvements; (b) Landlord will not have to make for or provide

Page 2 of 37

 

Tenant
with any alternative accommodations or compensate for Tenant’s costs as a result of any delays; and
(c) any delays will not permit Tenant to cancel or amend this Lease or otherwise diminish any of
Tenant’s obligations under this Lease. Tenant acknowledges and agrees that the granting of any
limited right of possession or access by Landlord to Tenant prior to the Commencement Date shall
not constitute a waiver by Landlord of any of Landlord’s rights or Tenant’s obligations under this
Lease.

     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, and, to the
extent this Lease may be extended or renewed, any Renewal Term or Extension Term of this Lease.
Nothing in this Lease shall be interpreted or construed to permit Tenant to shorten the Term of
this Lease, other than as specifically provided for in Section 13 and Section 14.

ARTICLE 2

GLOSSARY OF TERMS

     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.

“BOMA” means the Building Owners’ and Managers’ Association. References to area measurements which
refer to BOMA shall mean and refer to the BOMA publication “Standard Method for Measuring Floor
Area in Office Buildings,” ANSL’BOMA Z65.1.

“Building” means the entire building known as Building C of the CSLSC located at 389-C 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.

Page 3 of 37

 

“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.

“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. Common Areas shall not include any area or rentable space
that cannot be leased or accessed by other tenants of the Facility due to the layout, design or use
of Leased Premises by Tenant.

“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.

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

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

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

“Fast-Track Grant” shall mean the Fast-Track Grant received from the State of Tennessee related to
Building C.

“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 by any
federal, state or local governmental authority pursuant to any environmental, health and

Page 4 of 37

 

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 5 of 37

 

“Large Tenant” shall have the meaning set forth in Article 25.

“Lease” means this Lease Agreement.

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

“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
Facility.

“Officer’s Certificate” means a certificate of Tenant signed by the Chief Executive Officer or
another officer authorized to so sign by the Board of Directors, or any other person whose power
and authority to act has been authorized by delegation in writing by any of the persons holding the
foregoing offices.

“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.

“Percentage of Leased Space” shall have the meaning set forth in Section 3.2.

“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 3.3 and also
includes Additional Rent as defined in Section 4.1.

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

“Rentable Square Footage” shall mean the 30,000 square feet of space rentable within the Building
C and rented by Tenant herein.

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

“Substantial Completion” has the meaning given it in Section 1.2(a).

“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.

Page 6 of 37

 

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

“Tenant Improvement Allowance” 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 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
$25.00 multiplied by the Thirty-Thousand (30,000) 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 Seven-Hundred and Fifty Thousand and
00/100 Dollars ($750,000.00), shall be due and payable in twelve (12) equal monthly
installments in the amount of Sixty-Two Thousand, Five-Hundred and 00/100 Dollars ($62,500.00)
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

Page 7 of 37

 

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 Rent Reduction. The Base Rent set forth in Section 3.1 shall be reduced on a
monthly basis as the occupancy of the Building increases as defined in this Section 3.2
below. The occupancy of the Building shall be calculated by taking the number of square feet in
the Building upon which rent is being received each month by Landlord, divided by the total number
of rentable square feet in the Building (x 100), which shall yield the “Percentage of Leased
Space.” This rent reduction shall be calculated on a monthly basis, and adjusted quarterly. The
rent reduction under this Section 3.2 shall be as follows:

          (a) When the Percentage of Leased Space of the Building is sixty-seven percent (67%) or more,
the Base Rent shall be reduced by a total of Two Dollars and 00/100 ($2.00) per square foot;

          (b) When the Percentage of Leased Space of the Building is eighty-three percent (83%) or more,
the Base Rent shall be reduced by a total of Three dollars and 00/100 ($3.00) per square foot; and

          (c) When the Percentage of Leased Space of the Building is ninety-five percent (95%) or
greater, the Base Rent shall be reduced by a total of Four Dollars ($4.00) per square foot.

     3.3 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 adjustments as set forth in this
Section 3.3. 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 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.

     3.4 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

Page 8 of 37

 

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.

     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.

Page 9 of 37

 

     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, 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 to 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 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

Page 10 of 37

 

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, 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);

Page 11 of 37

 

          (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;

          (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;

Page 12 of 37

 

     (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. Simultaneously with Tenant’s execution of this Lease, Tenant shall
deliver the Security Deposit of Three-Hundred and Seventy-Five Thousand and No/100 Dollars
($375,000.00) to Landlord. The Security Deposit shall secure the performance of all of Tenant’s
obligations and liabilities under this Lease, and shall be in addition to any and all remedies
which may be permitted by law or by other provisions of this Lease. To the maximum extent
permitted under applicable laws, Landlord may commingle the Security Deposit with its other funds.
No interest shall be earned, paid, payable or owing to Tenant with respect to the Security Deposit,
and Landlord may retain all interest and other amounts generated thereby. Landlord may, from time
to time and without prejudicing any other remedy available under this Lease, at law or in equity,
apply the Security Deposit to: (i) pay any past due Rent; (ii) reimburse Landlord for any damages,
injuries, expenses or liabilities that it suffers or incurs as a result of Tenant’s default under
this Lease; or (iii) cover the cost of curing any Event of Default. Following any application of
the Security Deposit by Landlord, Tenant shall pay to Landlord, upon demand, the amount of the
Security Deposit so applied in order to restore the Security Deposit to its original amount.
Although the Security Deposit shall be deemed the property of Landlord, if Tenant fully and
faithfully complies with all of the terms hereof, any remaining balance of the same shall be
reduced by One-Hundred and Eighty-Seven Thousand, Five-Hundred and No/100 dollars ($187,500.00)
upon the earlier of either (a) Landlord obtaining permanent financing for the Building, or (b) at
the end of the 2nd Lease Year, payable to Tenant within thirty (30) days of Tenant’s written
request to Landlord following the expiration of the 2nd Lease Year or the Landlord
obtaining permanent financing on the Building. Although the Security Deposit shall be deemed the
property of Landlord, any remaining balance of the same

Page 13 of 37

 

shall be returned to Tenant within sixty
(60) days after the later of the termination of this Lease, or the date all of Tenant’s obligations
and liabilities under this Lease are satisfied. Landlord shall assign the Security Deposit to any
person or entity that acquires Landlord’s interest in the Leased Premises, whereupon Landlord shall
have no further liability or responsibility for its return to Tenant.

     4.7 Performance Guarantee. BMTI shall guarantee satisfying its obligations under the
“Fast-Track Grant” and this Lease.

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.

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”). 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

Page 14 of 37

 

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 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.

Page 15 of 37

 

     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.

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,

Page 16 of 37

 

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 8 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.

          (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

Page 17 of 37

 

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 radio active 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.

ARTICLE 9

ALTERATIONS AND ADDITIONS

     9.1 Construction of Capital Additions to the Leased Premises. Schedule 9.1
[intentionally blank] 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 therefore 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 and 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.

Page 18 of 37

 

     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.

     9.3 Tenant Improvement Allowance. Landlord shall provide Tenant with a Tenant Improvement
Allowance in the amount of Two-Million, Five-Hundred Thousand and No/100 Dollars ($2,500,000.00)
(the “Tenant Improvement Allowance”) to reimburse Tenant for construction costs associated with
Tenant Improvement Work (hereinafter defined) in preparing the Leased Premises for Tenant’s use.
Landlord shall pay the full amount of the Tenant Improvement Allowance to Tenant within thirty (30)
days of the earlier of: (a) two years after the date the Tenant obtains a Certificate of Occupancy
for the Leased Premises; or (b) upon the Landlord obtaining a permanent mortgage on the Building.
In order to ensure a consistent and attractive appearance of the Building, Landlord may provide
window treatments that Tenant shall use in the Leased Premises, but the costs for said window
treatments shall be paid from the Tenant Improvement Allowance.

     9.4 Tenant Improvement Work; Excess Costs.

     Tenant and Landlord shall cooperate in developing plans for Tenant Improvement Work. All
Tenant Improvement Work shall be designed, performed and/or constructed by architects, engineers,
contractors, tradesmen and/or other appropriate persons or entities, who are mutually selected and
approved in writing by Tenant and Landlord. Any and all Tenant Improvement Work must be approved,
in writing, by Landlord prior to construction and upon completion of the Tenant Improvement Work.
Such approval shall not be unreasonably withheld, conditioned, or delayed. Any dispute with
respect to Tenant Improvement Work shall be conclusively resolved by an architect/engineer mutually
agreed upon between the parties.

     Tenant shall 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. The date which Tenant
shall be permitted to begin its Tenant Improvement Work shall be mutually agreed upon between the
parties in writing.

     All costs and expenses of the Tenant Improvement Work, including without limitation any costs
and expenses of the Tenant Improvement Work that exceed or are not covered by the

Page 19 of 37

 

Tenant
Improvement Allowance (“Excess Costs”) shall be the responsibility of and shall be paid by Tenant.

     9.5 Change Orders and Extras. Any change orders or extras desired by Tenant and not included
or shown in the original Building plans approved by Landlord must be further agreed to by Landlord
in writing.

     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 [intentionally blank].
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.

     9.7 Interference with Construction. Prior to the Commencement Date, Tenant shall not place
any personal property in the Leased Premises or enter into or upon the Leased Premises (except to
inspect the same where accompanied by a representative of Landlord) or interfere with the progress
of construction or with workmen, and Tenant shall not permit such entry or interference by others.
Landlord will not be liable for any injury resulting from Tenant’s breach of this paragraph.

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 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.

Page 20 of 37

 

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 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

Page 21 of 37

 

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 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

Page 22 of 37

 

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 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

Page 23 of 37

 

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 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.

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     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.

     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

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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 proceeds 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.

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

Page 26 of 37

 

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:

          (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

Page 27 of 37

 

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.

     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.

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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 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.

Page 29 of 37

 

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 (e) 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 30 of 37

 

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 a proposed sublease, Tenant still maintains a significant presence within the CSLSC (at
least 20,000 square feet), 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.
Otherwise Landlord’s consent may be granted or denied solely at Landlord’s discretion.

          (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.

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     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.

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
	 	 	 	389-A Nichol Mill Lane
	 

	 	Franklin TN 37067
	 	 	 	Franklin, TN 37067
	 

	 	Attn: Jim Monsor
	 	 	 	Attn: John N. Weckesser
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	 	 	With a copy to:
	 

	 	389-A Nichol Mill Lane
	 	 	 	Charles K. Wray
	 

	 	Franklin, TN 37067
	 	 	 	Bass, Berry & Sims PLC
	 

	 	Attn.: General Counsel
	 	 	 	315 Deaderick Street, Suite 2700
	 

	 	 	 	 	 	Nashville, TN 37238

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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 or

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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

     Landlord acknowledges that Tenant is a critical tenant of Building C of the CSLSC.
Accordingly, Landlord covenants to Tenant that Tenant is receiving, and will for the period of the
Tenant’s Initial Term of this Lease receive, subject to the provisions hereof, the most favorable
monetary lease terms of any Large Tenant in Building C. A “Large Tenant” shall include any tenant
that leases at least five thousand (5,000) square feet within building C. Landlord therefore
agrees that if Landlord leases any other space in Building C on monetary terms more favorable to
such Large Tenant than the terms of this Lease are to Tenant, based upon the lease rate (including
rent reductions contained in Section 3.2 herein if they have already occured) and other
financial incentives, then Tenant shall be entitled to enter into a written modification of this
Lease with Landlord in order to modify Tenant’s Lease to make it comparable to that of the Large
Tenant with the more favorable monetary lease provisions. The building and/or asset manager for
Building C shall determine whether a Large Tenant’s lease is more favorable monetarily than this
Lease. If parties fail to agree on building managers/asset manger’s determination, an independent
mutually agreed upon accounting firm will be used to make the final assessment. Any modification
to the lease rate hereunder pursuant to this provision shall be limited to the amount of square
footage included in the Large Tenant’s more favorable lease. To determine a lease having a
variable lease rate over its term is more favorable than Tenant’s lease rate, the parties shall
compare the average lease rate over the term of such lease to the Base Rent set forth in section
3.1 and as adjusted in section 3.2. This provision applies only as long as BMTI leases more
rentable square feet within Building C than any other tenant.

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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.

     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,

Page 35 of 37

 

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 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

Page 36 of 37

 

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 the brokerage of 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.

     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 last executed below.

	 	 	 	 	 	 	 
	LANDLORD
	 	TENANT
	 
	 	 	 	 	 	 
	NOBLEGENE
	 	BIOMIMETIC
	DEVELOPMENT, LLC
	 	THERAPEUTICS, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ John N. Weckesser
	 	By:
	 	/s/ Larry Bullock
	 

	 	 
	 	 	 	 
	 

	 	John N Weckesser
	 	 	 	Larry Bullock
	 

	 	Principal
	 	 	 	Chief Financial Officer
	 
	 	 	 	 	 	 
	Date:

	 	 August 17, 2007
	 	Date:
	 	 August 17, 2007
	 

	 	 
	 	 	 	 

Page 37 of 37

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