Exhibit 10.3

Old Gettysburg Associates II
4720 Old Gettysburg Road
Mechanicsburg, PA 17055

Second Addendum to Lease Agreement

THIS SECOND AMENDMENT (this “Second Amendment”) is made as of the 26th day of
February 2002, by and between OLD GETTYSBURG ASSOCIATES II, a Pennsylvania
limited partnership (“Landlord”) and SELECT MEDICAL CORPORATION, a Delaware
corporation (“Tenant”).

BACKGROUND:

  A.   Landlord and Tenant are parties to certain Office Lease Agreement dated
May 15, 2001 (the “Lease”), as amended February 2002, pursuant to which Landlord
originally leased to Tenant, and Tenant leased from Landlord, approximately
7,214 Rentable square feet of space, and then was reduce to 2,631 RSF, in the
building located at 4720 Old Gettysburg Road, Mechanicsburg, Pennsylvania. All
capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in the Lease.     B.   Tenant now desire to lease additional space.    
    NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, and intending to be legally bound hereby, Landlord and Tenant
agree as follows:         Effective on April 1, 2002, the following terms
contained in the Basic Lease Information shall be amended as follows:

  1.   Tenant agrees to lease an additional 3,206 RSF on the fourth floor.    
2.   Total area of the premises will be amended to 5,837 RSF.     3.   Tenant’s
Proportionate Share will be 14%.     4.   The current monthly rental rate will
be $4,862.43 for the additional space or $18.20/RSF.     5.   Total monthly
rental rate for the total 5,837 RSF will be $8,852.78 or a total Initial Annual
Base Rental of $106,233.40     6.   Tenant shall take the space AS-IS.

      All other terms and conditions contained in the Lease and not amended
hereby remain in full force and effect.

 

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      IN WITNESS WHEREOF, Landlord and Tenant have caused this Second Amendment
to be duly executed as of February 26, 2002.

                              Landlord:
Old Gettysburg Associates II
A Pennsylvania limited partnership                         Witness:   /s/ Laura
J. Martin   By:   /s/ Michael E. Salerno   Date: 3/5/02      

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                  Michael E. Salerno
Agent for Owner                                   Tenant:
Select Medical Corporation
A Delaware Corporation
                        Attest:   /s/ Michael E. Tarvin   By:   /s/ Scott A.
Romberger   Date: 2/26/02      

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            Michael E. Tarvin
Secretary       Scott A. Romberger
Vice President    

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