Exhibit
10.1(a)


 


CREDIT
AGREEMENT


 


between


 


TRILLIUM
HEALTHCARE GROUP, LLC, Fairway healthcare properties, llc, trillium healthcare consulting, llc, iane properties i, llc, iane properties
ii, llc and GREENSIDE HEALTHCARE PROPERTIES, LLC, each as
a Corporate Guarantor,


 


the
parties listed on annex a attached hereto, as Borrowers


 


and


 


such
other Persons joined hereto as a Borrower from time to time,


 


as
Borrowers,


 


with


 


GEMINO
HEALTHCARE FINANCE, LLC,


 


as
Lender


 


Dated
as of May 9, 2019


 






    	 



     


    

 





TABLE
OF CONTENTS





 


	 	Page
	 	 
	ARTICLE
    1 DEFINITIONS, ACCOUNTING TERMS AND PRINCIPLES OF CONSTRUCTION	1
	 	 
	1.01	Terms
    Defined	1
	1.02	Accounting
    Terms	1
	1.03	UCC	2
	1.04	Construction	2
	1.05	Time
    References	2
	1.06	Schedules
    and Exhibits	2
	 	 	 
	ARTICLE
    2 THE LOANS	3
	 	 
	2.01	Credit
    Facility – Description	3
	2.02	Funding
    Procedures	3
	2.03	Interest
    and Fees	4
	2.04	Additional
    Interest Provisions	5
	2.05	Payments	5
	2.06	Use
    of Proceeds	6
	2.07	Lockboxes
    and Collections	6
	2.08	Application
    of Proceeds of Collateral	7
	2.09	Fees	8
	 	 	 
	ARTICLE
    3 COLLATERAL	8
	 	 
	3.01	Description	8
	3.02	Extent
    of Security Interests	9
	3.03	Lien
    Documents	9
	3.04	Other
    Actions	9
	3.05	Searches	9
	3.06	Good
    Standing Certificates	10
	3.07	[Intentionally
    Omitted	10
	3.08	Power
    of Attorney	10
	3.09	[Intentionally
    Omitted	10
	3.10	Limited
    License	10
	3.11	Credit
    Balances; Additional Collateral	10
	3.12	Reference
    to Other Loan Documents	10
	3.13	Guaranty
    Agreement	10
	 	 	
	ARTICLE
    4 CLOSING AND CONDITIONS PRECEDENT TO ADVANCES	11
	 	 
	4.01	Resolutions,
    Opinions and Other Documents	11
	4.02	Additional
    Preconditions to Revolving Loans	12
	4.03	Closing	13
	4.04	Non-Waiver
    of Rights	13
	 	 	 
	ARTICLE
    5 REPRESENTATIONS AND WARRANTIES	13
	 	 
	5.01	Organization
    and Validity	13
	5.02	Places
    of Business	14
	5.03	Healthcare
    Matters	14
	5.04	Pending
    Litigation	16
	5.05	Medicaid
    and Medicare Cost Reporting	16



  



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	5.06	Title
    to Collateral	16
	5.07	Governmental
    Consent	16
	5.08	Taxes	17
	5.09	Financial
    Statements	17
	5.10	Full
    Disclosure	17
	5.11	Guarantees,
    Contracts, etc	17
	5.12	Compliance
    with Laws	18
	5.13	Other
    Associations	18
	5.14	Environmental
    Matters	18
	5.15	Equity
    Interests	18
	5.16	Lockboxes	19
	5.17	Borrowing
    Base Certificates	19
	5.18	Security
    Interest	19
	5.19	Accounts	19
	5.20	ERISA	19
	5.21	Representations
    and Warranties for each Revolving Loan	19
	5.22	Interrelatedness
    of Borrower	21
	5.23	Commercial
    Tort Claims	21
	5.24	Letter-of-Credit
    Rights	21
	5.25	Intellectual
    Property	21
	5.26	Solvency	21
	5.27	Schedules	21
	 	 	 
	ARTICLE
    6 AFFIRMATIVE COVENANTS	22
	 	 
	6.01	Payment
    of Taxes and Claims	22
	6.02	Maintenance
    of Insurance, Financial Records and Existence	22
	6.03	Business
    Conducted	22
	6.04	Litigation	22
	6.05	Taxes	23
	6.06	Financial
    Covenants	23
	6.07	Financial
    and Business Information	23
	6.08	Officer’s
    Certificate	24
	6.09	Inspection	24
	6.10	Tax
    Returns and Reports	24
	6.11	Material
    Adverse Developments	25
	6.12	Places
    of Business	25
	6.13	Notice
    of Action	25
	6.14	Verification
    of Information	25
	6.15	Accounts
    Receivables Monitoring System	25
	6.16	Commercial
    Tort Claim	25
	6.17	Compliance
    with Laws	25
	6.18	Collateral
    Reporting	26
	6.19	Collateral	26
	6.20	Intellectual
    Property	26
	6.21	Deposit
    Account Control Agreements; Bank Accounts	26
	6.22	Right
    of First Refusal	27
	6.23	Change
    in Management	27
	6.24	Redirect
    Payments; Invoices	27
	6.25	Post-Closing
    Obligations	27
	 	 	 
	ARTICLE
    7 NEGATIVE COVENANTS	28
	 	 
	7.01	Merger,
    Consolidation, Dissolution, Liquidation or Amendments	28
	7.02	Liens
    and Encumbrances	28
	7.03	Negative
    Pledge	29



  



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	7.04	Transactions
    with Affiliates or Subsidiaries	29
	7.05	Guarantees	29
	7.06	Investments	29
	7.07	Loans
    to Other Persons	39
	7.08	Subordinated
    Debt Payments	30
	7.09	Distributions	30
	7.10	No
    Change in Business	30
	7.11	Indebtedness	30
	7.12	Management
    Agreement	31
	7.13	Limitations
    on Corporate Guarantor	31
	7.14	Fiscal
    Year; Jurisdiction of Organization	31
	7.15	IRS
    Form 8821	31
	7.16	Payroll
    Accounts	31
	 	 	 
	ARTICLE
    8 DEFAULT	31
	 	 
	8.01	Events
    of Default	31
	8.02	Cure	35
	8.03	Rights
    and Remedies on Default	35
	8.04	[Reserved]	36
	8.05	Nature
    of Remedies	36
	8.06	Set-Off	36
	8.07	Application
    of Proceeds	36
	 	 	 
	ARTICLE
    9 MISCELLANEOUS	37
	 	 
	9.01	GOVERNING
    LAW	37
	9.02	Integrated
    Agreement	37
	9.03	Waiver
    and Indemnity	37
	9.04	Time	38
	9.05	Expenses
    of Lender	38
	9.06	Confidentiality	38
	9.07	Notices	38
	9.08	Brokerage	39
	9.09	Headings	39
	9.10	Survival	39
	9.11	Successors
    and Assigns	39
	9.12	Duplicate
    Originals	39
	9.13	Modification	39
	9.14	Signatories	39
	9.15	Third
    Parties	39
	9.16	Waivers	39
	9.17	CONSENT
    TO JURISDICTION	40
	9.18	WAIVER
    OF JURY TRIAL	40
	9.19	Publication	40
	9.20	Discharge
    of Taxes, Borrower’s Obligations, Etc	40
	9.21	Injunctive
    Relief	41
	9.22	Assignment
    or Syndication by Lender	41
	9.23	Severability	41
	9.24	Authority	41
	9.25	Usury
    Limit	41
	9.26	Termination	41
	 	 	 
	ARTICLE
    10 SPECIAL INTER-BORROWER PROVISIONS	42
	 	 
	10.01	Certain
    Borrower Acknowledgments and Agreements	42
	10.02	Maximum
    Amount of Joint and Several Liability	42
	10.03	Authorization
    of Borrower Representative by Borrower	42
	10.04	Joint
    and Several Liability	43
	 	 	 
	ARTICLE
    11 GUARANTY	43
	 	 
	11.01	The
    Guaranty	43
	11.02	Obligations
    Unconditional	44
	11.03	Reinstatement	44
	11.04	Waivers	45
	11.05	Remedies	45
	11.06	Contribution
    by Guarantors	46
	11.07	Guarantee
    of Payment; Continuing Guarantee	46
	11.08	Subordination
    of Other Obligations	46



 






    	iii



     


    

 


LIST
OF ANNEXES, EXHIBITS AND SCHEDULES


 


	Annex
    I	Definitions
	 	 
	Exhibit
    2.01(b)	Form
    of Revolving Note
	Exhibit
    2.02(a)	Form
    of Loan Request
	Exhibit
    4.01(a)	Closing
    Checklist
	Exhibit
    4.01(d)	Form
    of Opinion of Counsel
	Exhibit
    4.02(c)	Form
    of Notice Letter Re: Commercial Obligors
	Exhibit
    4.02(d)	Form
    of Notice Letter Re: Government Obligors
	Exhibit
    6.08	Form
    of Officer’s Certificate


 


	Schedule
    1.01 – Ineligible Obligors and Concentration Limits
	Schedule
    5.01 – Borrower’s State of Qualification
	Schedule
    5.02 – Jurisdiction of Organization/Chief Executive Office/Other Locations of Collateral/Places of Business/Other Names
	Schedule
    5.03 – Provider Identification Numbers
	Schedule
    5.03(c) – Licensed Beds
	Schedule
    5.04 – Pending Litigation
	Schedule
    5.06 – Permitted Liens
	Schedule
    5.09 – Fiscal Year End/Organization Number/Tax I.D. Numbers
	Schedule
    5.11 – Existing Guaranties, Investments, Indebtedness and Borrowings
	Schedule
    5.13 – Other Associations
	Schedule
    5.14 – Environmental Matters
	Schedule
    5.15 – Organizational Structure
	Schedule
    5.23 – Commercial Tort Claims
	Schedule
    5.24 – Letter-of-Credit Rights
	Schedule
    5.25 – Intellectual Property
	Schedule
    7.06 – Investments
	Schedule
    7.12 – Indebtedness


 






    	i



     


    

 






CREDIT
AGREEMENT


 


THIS
CREDIT AGREEMENT (“Agreement”) is dated this 9th day of May, 2019, by and among Trillium Healthcare Group, LLC,
Fairway Healthcare Properties, LLC, Trillium Healthcare Consulting, LLC, Iane Properties I, LLC, Iane Properties II, LLC and Greenside
Healthcare Properties, LLC, each a Florida limited liability company, each as a Corporate Guarantor, each of the parties listed on Annex
A attached hereto (together with such other Persons joined hereto as Borrower from time to time, individually and collectively, “Borrower”)
and Gemino Healthcare Finance, LLC, a Delaware limited liability company, as lender (“Lender”).


 


RECITALS


 


WHEREAS,
Borrower has requested that Lender make available to Borrower, on a joint and several basis, a Credit Facility in the maximum amount
of $10,000,000 which will be secured by a first priority perfected security interest in certain Collateral of Borrower, including the
Accounts of Borrower; and


 


WHEREAS,
Lender is willing to make the Credit Facility available to Borrower pursuant to the terms and provisions hereinafter set forth; and


 


WHEREAS,
the parties desire to set forth the terms and conditions of their relationship in writing.


 


NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:


 


Article
1



DEFINITIONS, ACCOUNTING TERMS AND

PRINCIPLES OF CONSTRUCTION


 


1.01
Terms Defined. As used in this Agreement, those terms set forth in Annex I shall have the respective meanings set forth therein.


 


1.02
Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP; provided, that
if Borrower notifies Lender that Borrower requests an amendment to any provision hereof to eliminate the effect of any changes in accounting
principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board
of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions) (an “Accounting
Change”) occurring after the Closing Date or in the application thereof on the operation of such provision (or if Lender notifies
Borrower that Lender requests an amendment to any provision hereof for such purpose), regardless of whether any such notice is given
before or after such Accounting Change or in the application thereof, then Lender and Borrower agree that they will negotiate in good
faith amendments to the provisions of this Agreement that are directly affected by such Accounting Change with the intent of having the
respective positions of Lender and Borrower after such Accounting Change conform as nearly as possible to their respective positions
as of the date of this Agreement and, until any such amendments have been agreed upon and agreed to by Lender, the provisions in this
Agreement shall be calculated as if no such Accounting Change had occurred. When used herein, the term “financial statements”
shall include the notes and schedules thereto. Whenever the term “Borrower” is used in respect of a financial covenant or
a related definition, it shall be understood to mean Borrower on a consolidated basis, unless the context clearly requires otherwise.
Notwithstanding anything to the contrary contained herein, (a) all financial statements delivered hereunder shall be prepared, and all
financial covenants contained herein shall be calculated, without giving effect to any election under the Statement of Financial Accounting
Standards No. 159 (or any similar accounting principle) permitting a Person to value its financial liabilities or Indebtedness at the
fair value thereof, and (b) the term “unqualified opinion” as used herein to refer to opinions or reports provided by accountants
shall mean an opinion or report that is (i) unqualified, and (ii) does not include any explanation, supplemental comment, or other comment
concerning the ability of the applicable Person to continue as a going concern or concerning the scope of the audit. For the purposes
hereof, “fiscal quarter” shall mean each quarterly accounting period during any fiscal year; provided, that, all references
to the fiscal quarter ending March 31, June 30, September 30 or December 31 shall mean the first, second, third or fourth fiscal quarter
of the applicable fiscal year, respectively, irrespective of the actual date on which such fiscal quarter may end.


 




    	 



     


    

 





1.03
UCC. Any terms used in this Agreement that are defined in the UCC shall be construed and defined as set forth in the UCC unless
otherwise defined herein; provided, that to the extent that the UCC is used to define any term herein and such term is defined differently
in different Articles of the UCC, the definition of such term contained in Article 9 of the UCC shall govern.


 


1.04
Construction. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural
include the singular, references to the singular include the plural, the terms “includes” and “including” are
not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.”
The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement
or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular
provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references
herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement,
instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions,
joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes,
extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). The words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties. Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations
shall mean (a) the payment or repayment in full in immediately available funds of (i) the principal amount of, and interest accrued and
unpaid with respect to, all outstanding Loans, together with the payment of any premium applicable to the repayment of the Loans, (ii)
all expenses that have accrued and are unpaid regardless of whether demand has been made therefor, (iii) all fees or charges that have
accrued hereunder or under any other Loan Document and are unpaid, (b) the receipt by Lender of cash collateral in order to secure any
contingent Obligations for which a claim or demand for payment has been made on or prior to such time or in respect of matters or circumstances
known to Lender at such time that are reasonably expected to result in any loss, cost, damage, or expense (including attorneys’
fees and legal expenses), such cash collateral to be in such amount as Lender reasonably determines is appropriate to secure such contingent
Obligations, (c) the payment or repayment in full in immediately available funds of all other outstanding Obligations other than unasserted
contingent indemnification Obligations, and (d) the termination of all of the commitments of Lender. Any reference herein to any Person
shall be construed to include such Person’s successors and assigns. Any requirement of a writing contained herein or in any other
Loan Document shall be satisfied by the transmission of information that is inscribed on a tangible medium or that is stored in an electronic
or other medium and is retrievable in perceivable form.


 


1.05
Time References. Unless the context of this Agreement or any other Loan Document clearly requires otherwise, all references to
time of day refer to Eastern standard time or Eastern daylight saving time, as in effect in the Commonwealth of Pennsylvania on such
day. For purposes of the computation of a period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to and including”;
provided that, with respect to a computation of fees or interest payable to Lender, such period shall in any event consist of at least
one full day.


 


1.06
Schedules and Exhibits. All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein by reference.


 




    	2



     


    

 


Article
2


 


THE
LOANS


 


2.01
Credit Facility – Description.


 


(a)
Subject to the terms and conditions of this Agreement, Lender hereby establishes for benefit of Borrower a credit facility (“Credit
Facility”) which shall include Advances which may be extended by Lender to or for the benefit of Borrower from time to time
hereunder in the form of revolving loans (“Revolving Loans”) consisting of a line of credit facility which shall be
made available to Borrower on the Closing Date in an aggregate principal amount equal to the Revolving Loan Commitment. The aggregate
outstanding amount of all Advances shall not, at any time, exceed the Revolving Loan Commitment; and the aggregate outstanding amount
of all Revolving Loans shall not, at any time, exceed the Borrowing Base. In no event shall the initial principal amount of any Revolving
Loan be less than $25,000.00. Subject to such limitation, the outstanding balance of all Revolving Loans may fluctuate from time to time,
to be reduced by repayments made by Borrower, to be increased by future Revolving Loans which may be made by Lender. If the aggregate
outstanding amount of all Revolving Loans exceeds the Borrowing Base, or if the aggregate outstanding amount of all Advances (whether
in the form of Revolving Loans or otherwise), exceeds the Revolving Loan Commitment, Borrower shall immediately repay such excess in
full pursuant to Section 2.05(b) hereof. Lender has the right at any time, and from time to time, to set aside reasonable reserves against
the Borrowing Base in such amounts as it may deem appropriate. The Obligations of Borrower under the Credit Facility and this Agreement
are joint and several and shall at all times be absolute and unconditional.


 


(b)
At Closing, Borrower shall execute and deliver a promissory note to Lender in the principal amount of the Revolving Loan Commitment (as
may be amended, modified or replaced from time to time, the “Revolving Note”). The Revolving Note shall evidence Borrower’s
joint and several, absolute and unconditional obligation to repay Lender for all Revolving Loans made by Lender under the Credit Facility,
with interest as herein and therein provided. Each and every Revolving Loan under the Credit Facility shall be deemed evidenced by the
Revolving Note, which is deemed incorporated herein by reference and made a part hereof. The Revolving Note shall be substantially in
the form set forth in Exhibit 2.01(b) attached hereto and made a part hereof.


 


(c)
[Intentionally Omitted.]


 


(d)
The initial term of the Credit Facility (the “Initial Term”) shall expire on May 9, 2022. All Revolving Loans shall
be repaid on or before the earlier of the last day of the Initial Term or upon termination of the Credit Facility or termination of this
Agreement (the “Maturity Date”). After the Maturity Date no further Revolving Loans shall be available from Lender.


 


(e)
From time to time, upon not less than three (3) Business Days’ notice to Borrower, Lender may adjust the Advance Rate in order
to reflect, in Lender’s reasonable judgment, the aggregate amount or percentage of the Collections with respect to the Accounts.


 


2.02
Funding Procedures.


 


(a)
Subject to the terms and conditions of this Agreement and so long as no Default or Event of Default shall have occurred and remain outstanding,
Lender will make Revolving Loans to Borrower upon request. Lender shall provide Borrower with a report regarding the Borrowing Base then
in effect (a “Borrowing Base Certificate”) on a specified Business Day of each week (such day to be mutually agreeable
to Borrower and Lender (such date shall be referred to herein as the “Settlement Date,” whether or not Borrower has
requested a Revolving Loan to be made on such date)). If Borrower does not request a Revolving Loan on any Settlement Date, Borrower
Representative shall cause the Borrowing Base Certificate to be executed by a duly Authorized Officer and return such duly executed Borrowing
Base Certificate to Lender that same day. Borrower may request a Revolving Loan on any Settlement Date or any other day of the week (such
day on which a Revolving Loan is requested to be made is referred to herein as the “Funding Date”). Upon request by
Borrower of a Revolving Loan on any Funding Date, which such request shall be received by Lender no later than 2:00 P.M. on such Funding
Date, Lender shall prepare a Borrowing Base Certificate and a written request for such Revolving Loan substantially in the form of Exhibit
2.02(a) hereto (a “Loan Request”) and forward such Loan Request to Borrower Representative for execution. Subject
to the terms and conditions of this Agreement, if the executed Borrowing Base Certificate and Loan Request are received by Lender before
4:00 P.M. on any Funding Date, Lender will advance on such Funding Date (or the next Business Day if the executed Borrowing Base Certificate
and Loan Request are received by Lender after 4:00 P.M.) to Borrower a Revolving Loan in the amount equal to the lesser of (i) the amount
of the Revolving Loan requested by Borrower in the Loan Request, or (ii) the Borrowing Base Excess as of such date. Any Advances made
by Lender hereunder shall be treated for all purposes as, and shall accrue interest at the same rate applicable to, Revolving Loans.


 




    	3



     


    

 


(b)
The Borrowing Base Certificate and the Loan Request may be delivered via facsimile or digitally scanned and delivered by internet electronic
mail, and Borrower acknowledges that Lender may rely on Borrower’s signature by facsimile or by scanned image, which shall be legally
binding upon Borrower.


 


(c)
Whether or not Borrower has requested a Revolving Loan to be made on such date, Lender may at any time charge against the Borrowing Base
an amount equal to all fees, Expenses, principal, interest or other amounts as and when due and payable to Lender hereunder, and such
charge shall be deemed to be a Revolving Loan and an Advance hereunder.


 


(d)


 


(i)
Not later than 5:00 P.M. on the tenth (10th) day after the preceding month-end (the “Download Date”), Borrower will
deliver to Lender a system-generated month end data file associated with the Accounts, which shall include, without limitation, the information
(including changes in the Obligor reimbursement rates and changes in Federal or state laws or regulations affecting payment for medical
services) required by Lender to enable Lender to process and value the outstanding Accounts of Borrower, as well as bill and collect
such Accounts following an Event of Default (“Accounts Detail File”). Upon completion of the processing of the data
with respect to such Accounts, Lender or its agent will prepare and deliver to Borrower Representative a Borrowing Base Certificate by
no later than 12:00 P.M. on the next Settlement Date, provided, however, if the Accounts Detail File is received less than
one (1) Business Day prior to the Settlement Date, the Borrowing Base will not be updated until the next Settlement Date.


 


(ii)
No later than 5:00 P.M. (Eastern time) on the tenth (10th) day after the preceding month end, Borrower will deliver to Lender
an A/R Reconciliation by Posting Date (as generated by Borrower’s Point Click Care accounts receivable system) report for such
preceding month.


 


(iii)
No later than 5:00 P.M. ten (10) Business Days after the preceding month end Borrower will deliver to Lender a system-generated monthly
cash posting file for such preceding month.


 


(e)
Lender’s determination of the Estimated Net Value of the Eligible Accounts and other amounts to be determined or calculated under
this Agreement shall, in the absence of manifest error, be binding and conclusive.


 


2.03
Interest and Fees.


 


(a)
Each Revolving Loan shall bear interest on the outstanding principal amount thereof from the date made until such Revolving Loan is paid
in full, at a rate per annum equal to the LIBOR Rate plus four and ninety-five one-hundredths of one percent (4.95%) (together, the “Interest
Rate”). The Interest Rate on all amounts outstanding under the Credit Facility shall be adjusted daily based on any changes
in the LIBOR Rate.


 


(b)
Upon the occurrence and during the continuance of an Event of Default, as determined by Lender, the rate of interest applicable to each
Revolving Loan then outstanding shall be the Default Rate. The Default Rate shall apply from the date of the Event of Default until the
date such Event of Default is cured or waived, and interest accruing at the Default Rate shall be payable upon demand. If at any time
the outstanding balance of the Revolving Loans is less than Two Million and No/100 Dollars ($2,000,000.00) (during each such period such
minimum amount being referred to as the “Minimum Balance”), Borrower shall pay interest at a rate per annum equal
to the Interest Rate times the Minimum Balance until such time at the outstanding balance on the Revolving Loans exceeds the Minimum
Balance (the “Minimum Use Fee”).


 


(c)
Should the Credit Facility be terminated for any reason prior to the last day of the Initial Term, in addition to repayment of all Obligations
then outstanding and termination of Lender’s commitment hereunder, Borrower shall unconditionally be obligated to pay at the time
of such termination, a fee (the “Termination Fee”) in an amount equal to the following percentage of the Revolving
Loan Commitment: three percent (3%), if such early termination occurs on or prior to the first annual anniversary of the date of this
Agreement; two percent (2%) if such early termination occurs after the first annual anniversary date of this Agreement but on or prior
to the second annual anniversary of the date of this Agreement; and one percent (1%) if such early termination occurs after the second
annual anniversary of the date of this Agreement but prior to the thirtieth (30th) day before the last day of the Initial
Term.


 




    	4



     


    

 


Borrower
acknowledges that the Termination Fee is an estimate of Lender’s damages in the event of early termination and is not a penalty.
In the event of termination of the Credit Facility, all of the Obligations shall be immediately due and payable upon the termination
date stated in any notice of termination. All undertakings, agreements, covenants, warranties and representations of Borrower contained
in the Loan Documents which by their terms specifically survive termination shall survive any such termination, and Lender shall retain
its security interests in the Collateral and all of its rights and remedies under the Loan Documents notwithstanding such termination
until Borrower has paid the Obligations to Lender, in full, in immediately available funds, together with the applicable Termination
Fee, if any. Notwithstanding the payment in full of the Obligations, Lender shall not be required to terminate its security interests
in the Collateral unless, with respect to any loss or damage Lender may incur as a result of dishonored checks or other items of payment
received by Lender from Borrower or any Obligor and applied to the Obligations, Lender shall, at its option, (i) have received a written
agreement executed by Borrower and by any Person whose loans or other advances to Borrower are used in whole or in part to satisfy the
Obligations, indemnifying Lender from any such loss or damage; or (ii) have retained such monetary reserves and security interests on
the Collateral for such period of time as Lender, in its reasonable discretion, may deem necessary to protect Lender from any such loss
or damage.


 


(d)
Borrower shall unconditionally pay to Lender a fee (the “Unused Line Fee”) equal to three quarters of one percent
(0.75%) per annum of the unused portion of the Credit Facility, which fee shall be calculated and payable monthly, in arrears. The unused
portion of the Credit Facility shall be the difference between (i) the Revolving Loan Commitment and (ii) the greater of (x) the average
daily outstanding balance of the Revolving Loans during each month (or portion thereof, as applicable), and (y) the Minimum Balance which
fees shall be calculated and payable monthly, in arrears.


 


(e)
Borrower shall pay Lender a collateral monitoring fee (“Collateral Monitoring Fee”) equal to one percent (1.00%) per
annum of the average Borrowing Base during the prior month (or portion thereof, as applicable).


 


2.04
Additional Interest Provisions.


 


(a)
Calculation of Interest. Interest on the Revolving Loans shall be based on a year of three hundred sixty (360) days and charged pro
rata for the actual number of days elapsed.


 


(b)
Continuation of Interest Charges. All contractual rates of interest chargeable on outstanding Revolving Loans shall continue to
accrue and be paid even after default, maturity, acceleration, termination of the Credit Facility, judgment, bankruptcy or insolvency
proceedings of any kind or the happening of any event or occurrence similar or dissimilar.


 


(c)
Applicable Interest Limitations. In no contingency or event whatsoever shall the aggregate of all amounts deemed interest hereunder
and charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any law which a court of competent
jurisdiction shall, in a final determination, deem applicable hereto. In the event that such court determines Lender has charged or received
interest hereunder in excess of the highest applicable rate, Lender shall, in its sole discretion, apply and set off such excess interest
received by Lender against other Obligations due or to become due and such rate shall automatically be reduced to the maximum rate permitted
by such law.


 


2.05
Payments.


 


(a)
All accrued interest on the Revolving Loans shall be due and payable monthly on the first calendar day of each month. Any accrued Minimum
Use Fees, Unused Line Fees and Collateral Monitoring Fees for each calendar month shall be due and payable monthly on the first calendar
day of the following calendar month.


 




    	5



     


    

 


(b)
If at any time the aggregate principal amount of all Revolving Loans outstanding exceeds the Borrowing Base then in effect (including
as a result of the portion of the Borrowing Base attributable to the Omega Tenants exceeding the amount permitted pursuant to the proviso
in the definition of “Borrowing Base”) or the aggregate of all Advances exceeds the Revolving Loan Commitment, in each case,
Borrower shall immediately make such principal prepayments of the Revolving Loans (subject to the terms of Section 2.03(c)) as is necessary
to eliminate such excess.


 


(c)
The entire principal balance of all of the outstanding Advances, together with all unpaid accrued interest thereon and the Termination
Fee, if any, and any unpaid Unused Line Fees, Minimum Use Fees and Collateral Monitoring Fees shall be due and payable on the Maturity
Date.


 


(d)
[Intentionally Omitted.]


 


(e)
[Intentionally Omitted.]


 


(f)
Except as specifically permitted by Section 7.01(a) hereof, if Borrower sells any of the Collateral other than in the ordinary course
of Borrower’s business and consistent with past practice or if any of the Collateral is lost or destroyed or taken by condemnation,
Borrower shall pay to Lender a sum equal to one hundred percent (100%) of the net proceeds (including insurance proceeds) received by
Borrower or such Corporate Guarantor, as applicable, from such sale, loss or destruction unless otherwise agreed to by Lender, as and
when received by Borrower or such Corporate Guarantor, as applicable, as a mandatory prepayment of the outstanding Revolving Loans, until
all Obligations are paid and satisfied in full.


 


(g)
All payments and prepayments shall then be applied first to Expenses, then Unused Line Fees, then to unpaid interest, and thereafter
to the principal of the Revolving Loans and to other amounts due Lender. Except as otherwise provided herein, all payments of principal,
interest, fees or other amounts payable by Borrower hereunder shall be remitted to Lender in immediately available funds not later than
11:00 A.M. on the day due. Whenever any payment is stated as due on a calendar day which is not a Business Day, the maturity of such
payment shall be extended to the next succeeding Business Day and interest shall continue to accrue during such extension. In addition,
and notwithstanding anything to the contrary contained in this Agreement, each Borrower hereby authorizes Lender to charge interest,
principal, fees and all other amounts due to Lender hereunder as and when due against the Borrowing Base with respect to any such payments
due and payable under the Revolving Loans, and each such charge shall be deemed to be a Revolving Loan and an Advance hereunder, as of
the date on which such payment is due.


 


2.06
Use of Proceeds. The extensions of credit under and proceeds of the Credit Facility shall be used (i) to repay existing Indebtedness
of Borrower and (ii) for working capital and general business purposes.


 


2.07
Lockboxes and Collections.


 


(a)
Borrower will enter into Depository Agreements in respect of the Government Lockbox and Commercial Lockbox in such form and with the
Lockbox Bank or such other bank as is acceptable to Lender. Borrower shall instruct the Lockbox Bank maintaining the Government Lockbox
that all collections sent to the Government Lockbox shall be deposited into a bank account at the Lockbox Bank. Borrower shall instruct
the Lockbox Bank maintaining the Commercial Lockbox that all Collections sent to the Commercial Lockbox shall be deposited into a bank
account at the Lockbox Bank in the name of Lender. Borrower shall also instruct the Lockbox Bank as described further in the Depository
Agreements to initiate or accept initiation by Lender of a daily transfer of all available funds to an account of Lender to be designated
by Lender (the “Collection Account”).


 


(b)
Borrower will cause all Collections with respect to all of the Accounts, other than Government Accounts, to be sent directly to the Commercial
Lockbox, and will cause all Collections with respect to all of the Government Accounts to be sent directly to the Government Lockbox
(which may be effectuated by electronic transfer directly to the Government Lockbox). In the event that Borrower receives any Collections
that should have been sent to the Commercial Lockbox or the Government Lockbox, Borrower will, promptly upon receipt and in any event
within one (1) Business Day of receipt, forward such Collections directly to the Commercial Lockbox or Government Lockbox, as applicable,
in the form received, and if requested by Lender, shall promptly notify Lender of such event. Until so forwarded, such Collections not
generated from Government Accounts shall be held in trust for the benefit of Lender.


 




    	6



     


    

 


(c)
Borrower shall not withdraw any amounts from the accounts into which the Collections remitted to the Commercial Lockbox are deposited,
nor shall Borrower change the procedures under the agreements governing the Commercial Lockbox and related accounts.


 


(d)
Borrower will cooperate with Lender in the identification and reconciliation on a monthly basis of all amounts received in the Commercial
Lockbox and the Government Lockbox. If more than ten percent (10%) of the Collections since the prior month end is not identified or
reconciled to the satisfaction of Lender within ten (10) Business Days of receipt, Lender shall not be obligated to make further Revolving
Loans until such unidentified or unreconciled Collections are identified or reconciled to the reasonable satisfaction of Lender, as the
case may be. In addition, if any such amount cannot be identified or reconciled to the satisfaction of Lender within the time period
specified above, Lender may utilize its own staff or, if it deems necessary, engage an outside auditor, in either case at Borrower’s
expense (which, in the case of Lender’s own staff, shall be in accordance with Lender’s then-prevailing customary charges
(plus expenses), to make such examination and report as may be necessary to identify and reconcile such amount.


 


(e)
Borrower will not send to or deposit in the Commercial Lockbox or the Government Lockbox any funds other than payments made with respect
to Accounts.


 


(f)
Prior to the occurrence of an Event of Default, on each Settlement Date, Lender shall cause all Collections deposited and/or transferred
to the Collection Account since the last Settlement Date to be disbursed in the following order of priority:


 


(i)
to Lender, any costs and Expenses of Lender required to be paid or reimbursed by Borrower under this Agreement or under any of the other
Loan Documents;


 


(ii)
to Lender, in the amount of any Borrowing Base Deficiency, if any, to be applied against the Obligations;


 


(iii)
subject to Section 2.03(c), to Lender, the amount of any prepayment of principal of which Borrower has given at least two (2) Business
Days’ prior notice to Lender; and


 


(iv)
to Lender, to be applied to any Advances outstanding under the Revolving Loans.


 


In
addition, on each Settlement Date, so long as no Event of Default shall have occurred and remain outstanding, Lender shall disburse to
Borrower the amount, if any, by which the collected balance in the Collection Account exceeds the aggregate outstanding principal amount
of the Advances and all interest and other amounts that will be payable on or before the next Settlement Date.


 


2.08
Application of Proceeds of Collateral.


 


(a)
Unless this Agreement expressly provides otherwise, so long as no Event of Default shall have occurred and remain outstanding, Lender
agrees to apply all Collections as set forth in Section 2.07(f) hereof.


 


(b)
If an Event of Default shall have occurred and remain outstanding, Lender may apply Collections, any other proceeds of Collateral and
all other payments received by Lender to the payment of the Obligations in such manner and in such order as Lender may elect in its sole
discretion.


 


(c)
Transfer of Funds from Blocked Accounts. During a Cash Control Period, Lender shall have the right, at Lender’s election
in its sole discretion, to require that funds on deposit in a Blocked Account be transferred on each Business Day as directed by Lender
pursuant to the terms of the applicable Deposit Account Control Agreement, and Borrower agrees to take all actions required by Lender
or by any bank at which any Blocked Account is maintained in order to effectuate the transfer of funds in this manner. No checks, drafts
or other instruments received by Lender shall constitute final payment to Lender unless and until such instruments have actually been
collected. Following the termination of any Cash Control Period, Lender agrees to take all actions required by Borrower to rescind or
nullify any automatic transfers of funds deposited into any Blocked Account and to give Borrower control over the Blocked Accounts and
all funds deposited therein, subject to the terms of a Deposit Account Control Agreement.


 




    	7



     


    

 


2.09
Fees. As of the Closing, Lender has fully earned, (a) and Borrower shall have paid to Lender a non-refundable commitment fee (the
“Commitment Fee”) equal to Seventy Five Thousand and No/100 Dollars ($75,000) which shall be paid in three equal payments
of Twenty Five Thousand and No/100 Dollars ($25,000) with the first of such payments being made on the first annual anniversary of the
Closing Date and the next two such payments shall be paid on each of the next two annual anniversaries of the Closing Date; provided
that any remaining unpaid portion of the Commitment Fee outstanding on the Maturity Date shall be due and owing on the Maturity Date
and (b) a good-faith deposit for closing costs in the amount of Thirty Eight Thousand and No/100 Dollars ($38,000) and a deposit for
diligence fees in the amount of Twenty Five Thousand and No/100 Dollars ($25,000), each of which such deposits in this subsection (b)
shall be credited against the Expenses for which Borrower is responsible pursuant to Section 9.05 hereof.


 


Article
3


 


COLLATERAL


 


3.01
Description. To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory
prepayment or otherwise, of the Obligations, Each Loan Party hereby grants to Lender a continuing security interest in, and a right to
set off against, any and all right, title and interest of such Loan Party in and to all of the following, whether now owned or existing
or owned, acquired, or arising hereafter (collectively, the “Collateral”):


 


(a)
all Accounts; (b) all cash and currency; (c) all Chattel Paper; (d) those certain Commercial Tort Claims set forth on Schedule 5.23
hereto; (e) all Deposit Accounts; (f) all Documents; (g) all Equipment; (h) all Fixtures; (i) all General Intangibles; (j) all Instruments;
(k) all Inventory; (l) all Investment Property; (m) all Letter-of-Credit Rights; (n) all Goods; (o) all oil, gas or other minerals before
extraction; (p) all pledged equity; (q) all other Property and assets owned by such Loan Party; and (r) all collections, Accessions,
receipts and all Proceeds of any and all of the foregoing.


 


All
capitalized terms in this Section 3.01 shall have the meanings set forth in the Uniform Commercial Code unless otherwise defined herein.


 


Notwithstanding
anything to the contrary contained herein, the security interests granted under this Agreement shall not extend to (a) any Property that
is the subject of a Lien securing purchase money Indebtedness permitted under this Agreement pursuant to documents that prohibit such
Loan Party from granting any other Liens in such Property, (b) more than sixty-five percent (65%) of the Equity Interests of any entity
organized under the laws of any jurisdiction outside of the United States, and (c) any lease, license or other contract of such Loan
Party if the grant of a security interest in such lease, license or contract in the manner contemplated by this Agreement is prohibited
by the terms of such lease, license or contract or by Applicable Law and would result in the termination of such lease, license or contract
or give the other parties thereto the right to terminate, accelerate or otherwise adversely alter such Loan Party’s rights, titles
and interests thereunder (including upon the giving of notice or the lapse of time or both); provided that (i) any such limitation
described in the foregoing clause (a) on the security interests granted hereunder shall apply only to the extent that any such prohibition
could not be rendered ineffective pursuant to the UCC or any other Applicable Law (including Debtor Relief Laws) or principles of equity
and (ii) in the event of the termination or elimination of any such prohibition or the requirement for any consent contained in such
lease, license or contract or in any Applicable Law, to the extent sufficient to permit any such item to become Collateral hereunder,
or upon the granting of any such consent, or waiving or terminating any requirement for such consent, a security interest in such lease,
license or contract shall be automatically and simultaneously granted hereunder and shall be included as Collateral hereunder.


 




    	8



    	 



    

 


Each
Loan Party and Lender hereby acknowledge and agree that the security interest created hereby in the Collateral (i) constitutes continuing
collateral security for all of the Obligations, whether now existing or hereafter arising and (ii) is not to be construed as an assignment
of any copyrights, copyright licenses, patents, patent licenses, trademarks or trademark licenses.


 


3.02
Extent of Security Interests. The security interest granted in Section 3.01 hereof shall extend and attach to all Collateral which
is presently in existence or hereafter acquired and which is owned by Borrower or in which Borrower has any interest, whether held by
Borrower or by others for Borrower’s account, and wherever located.


 


3.03
Lien Documents. At Closing and thereafter as Lender deems necessary, Borrower shall execute (if required) and deliver to Lender,
or shall have executed (if required) and delivered (all in form and substance reasonably satisfactory to Lender):


 


(a)
Financing Statements. Financing statements pursuant to the UCC, which Lender may file in the jurisdiction in which Borrower is
organized and in any other jurisdiction that Lender deems appropriate; and


 


(b)
Other Agreements. Any other agreements, documents, instruments and writings, including security agreements, deposit account control
agreements, deeds of trust or mortgages with respect to any real property owned by Borrower, and assignment agreements, reasonably required
by Lender to evidence, perfect or protect Lender’s Liens and security interest in the Collateral or as Lender may reasonably request
from time to time, including a waiver agreement from each landlord with respect to any real property leased by Borrower, in form and
substance satisfactory to Lender.


 


3.04
Other Actions.


 


(a)
In addition to the foregoing, Borrower shall do anything further that may be lawfully and reasonably required by Lender to perfect its
security interests and to effectuate the intentions and objectives of this Agreement, including, but not limited to, the execution (if
required) and delivery of continuation statements, amendments to financing statements, security agreements, contracts and any other documents
required hereunder. At Lender’s request, Borrower shall also immediately deliver (with execution by Borrower of all necessary documents
or forms to reflect Lender’s security interest therein) to Lender all items for which Lender must or may receive possession to
obtain a perfected security interest.


 


(b)
Lender is hereby authorized to file financing statements naming Borrower as debtor, in accordance with the Uniform Commercial Code, and
if necessary, to the extent applicable, to otherwise file financing statements without Borrower’s signature if permitted by law.
Borrower hereby authorizes Lender to file all financing statements and amendments to financing statements describing the Collateral in
any filing office as Lender, in its sole discretion may determine, Borrower agrees to comply with the requirements of all federal and
state laws and requests of Lender in order for Lender to have and maintain a valid and perfected first priority security interest in
the Collateral including executing and causing any other Person to execute such documents as Lender may require to obtain Control (as
defined in the UCC) over all Deposit Accounts, Electronic Chattel Paper, Letter-of-Credit Rights and Investment Property (each as defined
in the UCC).


 


3.05
Searches. Lender shall, prior to or at Closing, and thereafter as Lender may reasonably determine from time to time, at Borrower’s
expense, obtain the following searches (the results of which are to be consistent with the warranties made by Borrower in this Agreement):


 


(a)
UCC Searches. With respect to Borrower, UCC searches with the Secretary of State and local filing office of its jurisdiction of
organization and local filing office of each state where Borrower maintains its chief executive office and/or a place of business or
assets;


 


(b)
Judgments, Etc. Judgment, federal tax Lien and corporate tax Lien searches against Borrower, in all applicable filing offices
of each state searched under Section 3.05(a) hereof.


 




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3.06
Good Standing Certificates. Borrower shall, prior to or at Closing and at Borrower’s expense, obtain and deliver to Lender
good standing or equivalent certificates showing Borrower to be in good standing in its state of incorporation or organization and authorized
to transact business as a foreign corporation or entity in each other state or foreign country in which it is doing business for which
Borrower’s failure to be so qualified could reasonably be expected to cause a Material Adverse Effect.


 


3.07
[Intentionally Omitted.]


 


3.08
Power of Attorney. Each of the officers of Lender is hereby irrevocably made, constituted and appointed the true and lawful attorney
for Borrower (without requiring any of them to act as such) with full power of substitution to do the following (such power to be deemed
coupled with an interest): (a) solely upon the occurrence and during the continuance of an Event of Default, endorse the name of Borrower
upon any and all checks, drafts, money orders and other instruments for the payment of monies that are payable to Borrower and constitute
collections on the Collateral; (b) execute in the name of Borrower any financing statements, schedules, assignments, instruments, documents
and statements that Borrower is obligated to give Lender hereunder or that is necessary to perfect Lender’s security interest or
Lien in the Collateral; (c) solely upon the occurrence and during the continuance of an Event of Default, verify the validity, amount
or any other matter relating to the Collateral by mail, telephone, facsimile, pdf or otherwise; and (d) solely upon the occurrence and
during the continuance of an Event of Default, do such other and further acts and deeds in the name of Borrower that Lender may reasonably
deem necessary or desirable to enforce its right with respect to any Collateral.


 


3.09
[Intentionally Omitted.]


 


3.10
Limited License. Regardless of whether Lender’s security interests in any of the General Intangibles (as defined in the
UCC) has attached or is perfected, Borrower hereby irrevocably grants to Lender a royalty-free, non-exclusive license to use Borrower’s
trademarks, copyrights, patents and other proprietary and Intellectual Property rights, in connection with the advertisement for sale,
and the sale or other disposition of, any Collateral by, or on behalf of, Lender in accordance with the provisions of this Agreement.


 


3.11
Credit Balances; Additional Collateral.


 


(a)
The rights and security interests granted to Lender hereunder shall continue in full force and effect, notwithstanding the fact that
the Revolving Loans may from time to time be temporarily in a credit position, until the termination of this Agreement and the full and
final payment and satisfaction of the Obligations. Any reserves or balances to the credit of Borrower, and any other Property of Borrower
in the possession of Lender, may be held by Lender and applied in whole or partial satisfaction of such Obligations which are then due
and payable in accordance with the terms of this Agreement. The Liens and security interests granted to Lender herein and any other Lien
or security interest which Lender may have in any other assets of Borrower secure payment and performance of all present and future Obligations.


 


(b)
Notwithstanding Lender’s security interests in the Collateral, to the extent that the Obligations are now or hereafter secured
by any assets or Property other than the Collateral, or by the guaranty, endorsement, assets or property of any other Person, Lender
shall have the right in its sole discretion to determine which rights, security, Liens, security interests or remedies Lender shall at
any time pursue, foreclose upon, relinquish, subordinate, modify or take any other action with respect to, without in any way modifying
or affecting any of such rights, security, Liens, security interests or remedies, or any of Lenders’ rights under this Agreement.


 


3.12
Reference to Other Loan Documents. Reference is hereby made to the other Loan Documents for additional representations, covenants
and other agreements of Borrower regarding the Collateral covered by such Loan Documents.


 


3.13
Guaranty Agreement. Borrower shall cause each Guaranty Agreement to be executed and delivered to Lender in form and substance
satisfactory to Lender, pursuant to which each Guarantor shall, among other things, guarantee the payment of all Obligations hereunder.


 




    	10



    	 



    

 


Article
4


 


CLOSING
AND CONDITIONS PRECEDENT TO ADVANCES


 


Closing
under this Agreement and the making of each Revolving Loan are subject to the following conditions precedent (all documents to be in
form and substance satisfactory to Lender and Lender’s counsel):


 


4.01
Resolutions, Opinions and Other Documents. Prior to the Closing, Borrower shall have delivered to Lender the following:


 


(a)
each of the agreements, opinions, reports, approvals, consents, certificates and other documents set forth on the Closing Checklist attached
hereto as Exhibit 4.01(a) in each case in form and substance satisfactory to Lender in its sole discretion (with such number of
originals or copies as required by Lender) executed by each of the Loan Parties party thereto and other required Persons, as applicable;


 


(b)
certified copies of (i) resolutions of Borrower’s board of director(s), or manager(s), as applicable, authorizing the execution
of the Loan Documents and each other document to which it is a party, required to be delivered by any Section hereof and (ii) Borrower’s
Organizational Documents;


 


(c)
incumbency certificates identifying all Authorized Officers of Borrower, with specimen signatures;


 


(d)
a written opinion of Borrower’s independent counsel addressed to Lender in the form attached hereto as Exhibit 4.01(d),
which shall include, without limitation, an opinion that Lender has a perfected security interest in the Collateral;


 


(e)
payment by Borrower of all Expenses associated with the Credit Facility incurred to the Closing Date and the Commitment Fee;


 


(f)
UCC, judgment, federal and state tax Lien searches pursuant to Section 3.05 hereof, which searches shall verify that Lender will have
a first priority security interest in the Collateral, subject to Permitted Liens;


 


(g)
an initial borrowing base certificate dated the Closing Date evidencing Borrower’s maximum borrowing availability under the Borrowing
Base as of the Closing Date;


 


(h)
to the extent applicable, payoff letters and releases from all Persons having a security interest or other interest in the Collateral
(excluding Permitted Liens), together with all UCC-3 terminations or partial releases necessary to terminate such Persons’ interests
in the Collateral;


 


(i)
certification by Borrower and each Corporate Guarantor that all past-due payroll and unemployment taxes have been paid in full and that
Borrower and such Guarantor remain current on such taxes;


 


(j)
copies of each of the accreditations, licenses, permits and certifications related to the representations in Section 5.03 hereof, and
all Contracts requested by Lender;


 


(k)
monthly and year-to-date consolidated and consolidating financial statements for the most recent month end prior to Closing (at least
fifteen (15) days prior to Closing or such shorter period as Lender may determine);


 


(l)
satisfactory background checks on the senior management of Borrower;


 


(m)
fully executed collateral access agreements in form and substance satisfactory to Lender with respect to the location of Borrower’s
chief executive office and each other location at which any books and records of Borrower may be kept;


 




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(n)
recently dated financial statements of each Individual Guarantor;


 


(o)
evidence satisfactory to Lender that the Required Insurance is in full force and effect and that Lender has been named as a lender’s
loss payee or additional insured, as applicable, with respect to such Required Insurance in a manner satisfactory to Lender;


 


(p)
all UCC financing statements and similar documents required to be filed in order to create in favor of Lender a first priority and exclusive
(except for Permitted Liens) perfected security interest in the Collateral (to the extent that such a security interest may be perfected
by a filing under the UCC or Applicable Law), shall have been (or will be simultaneous with the Closing) properly filed in each office
in each jurisdiction required;


 


(q)
all information necessary for Lender to issue wire transfer instructions on behalf of Borrower for the initial and subsequent Revolving
Loans and/or Advances, including disbursement authorizations in form acceptable to Lender;


 


(r)
a certificate dated the Closing Date and signed by an Authorized Officer of Borrower certifying that all of the conditions specified
in this Section 4.01 and Section 4.02 hereof have been fulfilled and that there has not occurred any material adverse change in the operations
and conditions (financial or otherwise) of Borrower since December 31, 2018; and


 


(s)
all other documents, information and reports required or requested to be executed and/or delivered by Borrower under any provision of
this Agreement or any of the Loan Documents.


 


4.02
Additional Preconditions to Revolving Loans. Lender’s obligation to make the initial Revolving Loan and each subsequent
Revolving Loan shall be subject to the satisfaction of each of the following conditions:


 


(a)
After giving effect to each such Revolving Loan, (i) the aggregate principal amount of all Revolving Loans outstanding shall not exceed
the Borrowing Base then in effect and the aggregate amount of all Advances shall not exceed the Revolving Loan Commitment and (ii) the
ENV of all Eligible Accounts shall not exceed any of the Concentration Limits.


 


(b)
All representations and warranties of Borrower shall be deemed reaffirmed as of the making of such Revolving Loan and shall be true both
before and after giving effect to such Revolving Loan, and no Default or Event of Default shall have occurred and remain outstanding,
Borrower shall be in compliance with this Agreement and the other Loan Documents, and Borrower shall have certified such matters to Lender.


 


(c)
Borrower shall have signed and delivered to Lender notices, in the form of Exhibit 4.02(c), directing the Obligors (other than
Obligors with respect to Government Accounts) to make payment to the Commercial Lockbox.


 


(d)
Borrower shall have signed and delivered to Lender notices, in the form of Exhibit 4.02(d) (or such other notice that Lender may
require), directing the Obligors with respect to Government Accounts to make payment to the Government Lockbox.


 


(e)
Borrower shall have taken all actions necessary to permit Lender’s accounts receivable monitoring system to interpret the files
(including the Accounts Detail File) provided by Borrower to Lender with respect to all of the Eligible Accounts.


 


(f)
The lockbox arrangements required by Section 2.07 hereof shall be in effect, and the amounts received in the lockboxes shall have been
identified or reconciled to Lender’s satisfaction, as required by Section 2.07(d) hereof.


 


(g)
Borrower shall have taken such other actions, including the delivery of documents and opinions, as Lender may reasonably request.


 




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(h)
No Default or Event of Default hereunder shall have occurred and remain outstanding.


 


(i)
Borrower shall have performed and complied with all agreements, covenants and conditions contained herein including the provisions of
Articles 6 and 7 hereof, which are required to be performed or complied with by Borrower before or at the Closing Date and as of the
date of the making of each Advance.


 


4.03
Closing. Subject to the conditions of this Article 4, the Credit Facility shall be made available on the date (the “Closing
Date”) this Agreement is executed and all of the conditions contained in Sections 4.01 and 4.02 hereof are completed (the “Closing”).


 


4.04
Non-Waiver of Rights. By completing the Closing hereunder, or by making Advances hereunder, Lender does not thereby waive a breach
of any warranty, representation or covenant made by Borrower hereunder or under any agreement, document, or instrument delivered to Lender
or otherwise referred to herein, and any claims and rights of Lender resulting from any breach or misrepresentation by Borrower are specifically
reserved by Lender.


 


Article
5


 


REPRESENTATIONS
AND WARRANTIES


 


To
induce Lender to complete the Closing and make the Revolving Loans under the Credit Facility to Borrower, Borrower warrants and represents
to Lender that:


 


5.01
Organization and Validity.


 


(a)
Borrower is duly organized as either a partnership, corporation or limited liability company and is validly existing under the laws of
its state of organization, incorporation or formation, is duly qualified, validly existing and, to the extent applicable, in good standing
and has lawful power and authority to engage in the business it conducts in each state and other jurisdiction in which the nature and
extent of its business requires qualification, except where the failure to so qualify could not reasonably be expected to cause a Material
Adverse Effect. A list of all states and other jurisdictions in which Borrower is qualified to do business is attached hereto as Schedule
5.01 and made a part hereof.


 


(b)
The making and performance of this Agreement and the other Loan Documents, and each document required by any Section hereof, will not
(i) violate any law, government rule, regulation, order, judgment or award applicable to Borrower or its Property, (ii) violate any provision
of Borrower’s Organizational Documents, or (iii) violate or result in a default (immediately, with the passage of time or with
the giving of notice) under any contract, agreement or instrument to which Borrower is a party, or by which Borrower is bound. Borrower
is not in violation of, and has not knowingly caused any other Person to violate any term of, any agreement or instrument to which it
or such other Person is a party or by which it may be bound or of its Organizational Documents or minutes, which violation could reasonably
be expected to cause a Material Adverse Effect.


 


(c)
Borrower has all requisite power and authority to enter into and perform this Agreement and the other Loan Documents and to incur the
Obligations herein provided for, and has taken all proper and necessary action to authorize the execution, delivery and performance of
this Agreement and the other Loan Documents.


 


(d)
This Agreement and each other Loan Document required to be executed and delivered by Borrower hereunder, when delivered, will be valid
and binding upon each Borrower party thereto and enforceable in accordance with their respective terms.


 


(e)
The Guaranty Agreement is valid and binding upon Guarantor and enforceable in accordance with its terms.


 




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5.02
Places of Business. Borrower’s jurisdiction of organization is set forth in Schedule 5.02 hereto, and (a) Borrower’s
chief executive office, (b) all other places of business of each Borrower and (c) each Healthcare Facility and any other locations of
any Collateral are located at the corresponding addresses set forth on Schedule 5.02 hereto. Except as disclosed on Schedule 5.02 hereto:
(x) Borrower has not been organized in any other jurisdiction nor changed any such location in the last five (5) years, (y) Borrower
has not changed its name in the last five (5) years, and (z) during such period Borrower has not used, nor does Borrower now use, any
fictitious or trade name.


 


5.03
Healthcare Matters.


 


(a)
Operation of Facilities. Borrower owns or leases facilities sufficient to permit it to provide health care services and (i) maintains
Medicare and Medicaid provider status and is the holder of the provider identification numbers identified on Schedule 5.03 hereto, all
of which are current and valid and Borrower has not allowed, permitted, authorized or caused any other Person to use any such provider
identification number, and (ii) has obtained all material Permits necessary for Borrower to own its assets, to carry on its business,
to execute, deliver and perform the Loan Documents, and to receive payments from the Obligors and, if organized as a not-for-profit entity,
has and maintains its status, if any, as an organization exempt from federal taxation under Section 501(c)(3) of the Code. Borrower has
not been notified by any such governmental authority or other Person during the immediately preceding 24-month period that such party
has rescinded, limited or not renewed, or intends to rescind, limit or not renew, any such license or approval.


 


(b)
Healthcare Permits. Borrower has (i) each Permit and other rights from, and has made all declarations and filings with, all applicable
Governmental Authorities, all self-regulatory authorities and all courts and other tribunals necessary to engage in the ownership and
operation of the Healthcare Facilities, and (ii) no knowledge that any Governmental Authority is considering limiting, suspending or
revoking any such Permit. All such Permits are valid and in full force and effect, and Borrower is in material compliance with the terms
and conditions of all such Permits.


 


(c)
Specific Licensing. Each Healthcare Facility is duly licensed to the extent required by the Applicable Laws of the state in which
the Healthcare Facility is located to the extent such Healthcare Facility is required to be licensed under such Healthcare Laws. The
licensed bed or unit capacity of each Healthcare Facility is shown on Schedule 5.03(c) hereto. Borrower has not granted to any third
party the right to reduce the number of licensed beds or units in the Healthcare Facilities or the right to apply for approval to move
any and all of the licensed beds or units in the Healthcare Facilities to any other location and there are no proceedings or contemplated
to reduce the number of licensed beds in the Healthcare Facilities.


 


(d)
Participation Agreements/Provider Status/Cost Reports.


 


(i)
Borrower has the requisite participation agreement or provider number or other Permit to bill the respective Medicaid program in the
state or states in which Borrower operates (to the extent Borrower participates in the Medicare or Medicaid program in such state or
states) and all other Third Party Payor Programs (including Medicare) which have historically accounted for any portion of the revenues
of such Healthcare Facility.


 


(ii)
There is no investigation, audit, claim review or other action pending or, to the knowledge of Borrower, threatened which could result
in a revocation, suspension, termination, probation, restriction, limitation or non-renewal of any participation agreements with Third
Party Payors with respect to the business of Borrower (collectively, “Participation Agreements”) or provider number
or other Permit or result in Borrower’s exclusion from any Third Party Payor Program, nor has Borrower received any notice from
any Third Party Payor Program that it intends not to renew any Participation Agreement or provider agreement or other Permit related
to any Healthcare Facility, nor has Borrower made any decision not to renew any Participation Agreement or provider agreement or other
Permit, nor is there any action pending or threatened to impose material intermediate or alternative sanctions with respect to any Healthcare
Facility.


 


(iii)
Borrower, and, to the knowledge of Borrower, its contractors, have properly and legally billed all intermediaries and Third Party Payors
for services rendered with respect to the Healthcare Facilities and have maintained their records to reflect such billing practices.
No funds relating to Borrower are now, or, to the knowledge of Borrower, will be, withheld by any Third Party Payor.


 




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(iv)
All Medicare, Medicaid and private insurance cost reports and financial reports required to be submitted by Borrower, if any, are and
will be materially accurate and complete and have not been and will not be misleading in any material respects. No cost reports for the
Healthcare Facilities remain “open” or unsettled. There are no current, pending or outstanding Medicare, Medicaid or Third
Party Payor Program reimbursement audits or appeals pending with respect to the Healthcare Facilities or Borrower.


 


(e)
No Violation of Healthcare Laws.


 


(i)
None of the Healthcare Facilities or Borrower is in material violation of any Healthcare Laws.


 


(ii)
Borrower is HIPAA Compliant. Neither Borrower nor any Healthcare Facility has received during the previous three (3) years any notice
of allegation or investigation regarding any HIPAA Breach, as that term is defined in the law, or breach of similar state privacy law.
Neither Borrower nor any Healthcare Facility has experienced during the previous three (3) years any HIPAA Breach requiring notification
to the affected individual or the Secretary of the Department of Health and Human Services.


 


(iii)
No Healthcare Facility has received a statement of deficiencies or survey violation of a “Level A” (or equivalent) or worse
(with respect to assisted living facilities), or a tag level of “G” or higher with respect to any skilled nursing facility,
within the past three (3) years for which a plan of correction has not been filed with and accepted by the applicable Governmental Authority.
No Healthcare Facility is currently subject to any plan of correction that has not been accepted by or is currently the subject of a
review by the applicable Governmental Authority. Borrower has not received notice of any charges of patient abuse.


 


(f)
Healthcare Proceedings. Neither Borrower nor any Healthcare Facility is subject to any Healthcare Proceeding, suit or, to Borrower’s
knowledge, investigation by any federal, state or local government or quasi-governmental body, agency, board or authority or any other
administrative or investigative body (including the Office of the Inspector General of the United States Department of Health and Human
Services): (i) which may result in the imposition of a fine, an alternative, interim or final sanction, or a lower reimbursement rate
for services rendered to eligible patients which has not been provided for on their respective financial statements, or which could reasonably
be expected to have a Material Adverse Effect on Borrower or the operation of any individual Healthcare Facility; (ii) which could result
in the revocation, transfer, surrender, suspension or other impairment of the operating certificate provider agreement or Permits of
any Healthcare Facility; (iii) which pertains to any state or federal Medicare or Medicaid cost reports or claims filed by Borrower (including,
but not limited to, any reimbursement audits), or any disallowance by any commission, board or agency in connection with any audit of
such cost reports; or (iv) which pertains to or requests any voluntary disclosure pertaining to a potential overpayment matter involving
the submission of claims to such payor by Borrower.


 


(g)
Fraud and Abuse.


 


(i)
Borrower has not, and to its knowledge has not been alleged to have, and no Person with an “ownership interest” or “indirect
ownership interest” (as each such phrase is defined at 42 C.F.R. 420.20), officer, manager, employee or agent of Borrower has,
engaged in any of the following: (A) knowingly and willfully making or causing to be made a false statement or representation of a material
fact in any application for any benefit or payment under any Government Reimbursement Program; (B) knowingly and willfully making or
causing to be made any false statement or representation of a material fact for use in determining rights to any benefit or payment under
any Government Reimbursement Program; (C) failing to disclose knowledge by a claimant of the occurrence of any event affecting the initial
or continued right to any benefit or payment under any Government Reimbursement Program on its own behalf or on behalf of another, with
intent to secure such benefit or payment fraudulently; (D) knowingly and willfully soliciting or receiving any remuneration (including
any kickback, bribe or rebate), directly or indirectly, overtly or covertly, in cash or in kind or offering to pay such remuneration
(1) in return for referring an individual to a Person for the furnishing or arranging for the furnishing of any item or service for which
payment may be made in whole or in part by any Government Reimbursement Program, or (2) in return for purchasing, leasing or ordering
or arranging for or recommending the purchasing, leasing or ordering of any good, facility, service or item for which payment may be
made in whole or in part by any Government Reimbursement Program; (E) presenting or causing to be presented a claim for reimbursement
for services that is for an item or services that was known or should have been known to be (1) not provided as claimed, or (2) false
or fraudulent; or (F) knowingly and willfully making or causing to be made or inducing or seeking to induce the making of any false statement
or representation (or omitting to state a fact required to be stated therein or necessary to make the statements contained therein not
misleading) of a material fact with respect to (1) a facility in order that the facility may qualify for certification under any Government
Reimbursement Program, or (2) information required to be provided under 42 U.S.C. § 1320a-3.


 




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(ii)
Borrower has not been, and to its knowledge has not been alleged to be, and no Person with an “ownership interest” or “indirect
ownership interest” (as each such phase is defined at 42 C.F.R. 420.20), officer, manager, employee or agent of Borrower has: (A)
had a civil monetary penalty assessed against him or her pursuant to 42 U.S.C. § 1320a-7a or is the subject of a proceeding seeking
to assess such penalty; (B) been excluded from participation in a Federal Health Care Program (as that term is defined in 42 U.S.C. §
1320a-7b) or is the subject of a proceeding seeking to assess such penalty, or has been “suspended”, excluded or “debarred”
from any Government Reimbursement Program or from selling products to the U.S. government or its agencies pursuant to the Federal Acquisition
Regulation, relating to debarment and suspension applicable to Federal government agencies generally (48 C.F.R. Subpart 8.4), or other
Applicable Laws or regulations; (C) been convicted (as that term is defined in 42 C.F.R. § 1001.2) of any of those offenses described
in 42 U.S.C. § 1320a-7b or 18 U.S.C. § § 669, 1035, 1347, 1518 or is the subject of a proceeding seeking to assess such
penalty; (D) been involved or named in a U.S. Attorney complaint made or any other action taken pursuant to the False Claims Act under
31 U.S.C. § § 3729-3731 or qui tam action brought pursuant to 31 U.S.C. § 3729 et seq.; (E) been made a party to
any other action by any Governmental Authority that may result in suspension, exclusion, or debarment from any Government Reimbursement
Program or that may prohibit it from selling products to any governmental or other purchaser pursuant to any law; or (F) been or become
subject to any Federal, state, local governmental or private payor civil or criminal investigations or inquiries, proceedings, validation
review, program integrity review or statement of charges involving and/or related to its compliance with Healthcare Laws or involving
or threatening its participation in Medicare, Medicaid or other Third Party Payor Programs or its billing practices with respect thereto.


 


5.04
Pending Litigation. Other than as set forth on Schedule 5.04 hereto, there are no judgments or judicial or administrative orders,
proceedings or investigations (civil or criminal) pending, or to the knowledge of Borrower, threatened, against Borrower in any court
or before any Governmental Authority or arbitration board or tribunal which, if adversely determined, would reasonably be expected to
cause a Material Adverse Effect. No Member or executive officer of Borrower has been indicted or convicted in connection with or is engaging
in any criminal conduct, or is currently subject to any lawsuit or proceeding or under investigation in connection with any racketeering
or other similar criminal conduct or activity.


 


5.05
Medicaid and Medicare Cost Reporting. The Medicaid and Medicare cost reports of each facility and of the home office of Borrower
for all cost reporting periods have been submitted when and as required to (a) as to Medicaid, the state agency, or other CMS-designated
agent or agent of such state agency, charged with such responsibility or (b) as to Medicare, the Medicare intermediary or other CMS-designated
agent charged with such responsibility. No cost report indicates and no audit has resulted in any determination that Borrower was overpaid
for Medicaid and Medicare by Fifty Thousand and No/100 Dollars ($50,000.00) or more in any of the most recent three (3) fiscal years
covered by such audit.


 


5.06
Title to Collateral. Borrower has good and marketable title to all the Collateral it respectively purports to own, free from co-owners,
Liens, claims and encumbrances, except those of Lender and those listed on Schedule 5.06 hereto and permitted by Section 7.02 (the “Permitted
Liens”). The possession and use of the Collateral does not and will not infringe, misappropriate or otherwise violate the Intellectual
Property rights of any other Person.


 


5.07
Governmental Consent. Neither the nature of Borrower or of Borrower’s business or Property, nor any relationship between
Borrower and any other Person, nor any circumstance affecting Borrower in connection with the execution, issuance and/or delivery of
this Agreement or the Revolving Note, is such as to require a consent, approval or authorization of, or filing, registration or qualification
with, any Governmental Authority on the part of Borrower in connection with the execution and delivery of this Agreement or the issuance
or delivery of the Revolving Note or the other Loan Documents, except for filings relating to the perfection of Lender’s security
interest in the Collateral and any other filings or notices required hereunder that have been made or given.


 




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5.08
Taxes. All tax returns required to have been filed by Borrower in any jurisdiction have in fact been filed, and all Taxes, assessments,
fees and other governmental charges upon Borrower or upon any of its Property, income or franchises, which are shown to be due and payable
on such returns, have been paid, except for those Taxes being contested in good faith with due diligence by appropriate proceedings and
for which appropriate reserves have been maintained under GAAP. Borrower is not aware of any proposed additional tax assessment or tax
to be assessed against or applicable to Borrower that could reasonably be expected to cause a Material Adverse Effect.


 


5.09
Financial Statements.


 


(a)
Parent’s annual audited consolidated and consolidating balance sheet as of December 31, 2017, accompanied by reports thereon from
Parent’s independent certified public accountants, and the annually internally-prepared consolidated balance sheet as of December
31, 2018 and the related income statements and statements of cash flows as of such dates (complete copies of which have been delivered
to Lender), have been prepared in accordance with GAAP and present fairly, accurately and completely the financial position of Parent
as of such dates and the results of its operations for such periods.


 


(b)
Since the date of the last annual audited consolidated and consolidating balance sheet, accompanied by reports thereon from Parent’s
independent certified public accountants and related income statements and statements of cash flows, there has been no event or circumstance
that has had or could reasonably be expected to have a Material Adverse Effect. All financial statements of Parent (on a consolidated
basis) previously furnished to Lender present fairly, in all material respects, the financial condition of (on a consolidated basis)
as of the date of such financial statements.


 


(c)
The fiscal year for Borrower and Corporate Guarantor currently ends on the date set forth on Schedule 5.09 hereto. Borrower’s
and Corporate Guarantor’s Federal tax identification numbers and organization numbers are as set forth on Schedule 5.09
hereto.


 


5.10
Full Disclosure. Neither the financial statements referred to in Section 5.09 hereof, nor this Agreement or related agreements
and documents or any written statement furnished by Borrower to Lender in connection with the negotiation of the Credit Facility and
contained in any financial statements or documents relating to Borrower, contain any untrue statement of a material fact or omit a material
fact necessary to make the statements contained therein or herein not misleading.


 


5.11
Guarantees, Contracts, etc.


 


(a)
Borrower does not own or hold partnership interests or equity or long-term debt investments in, nor does it have any outstanding advances
to, or serve as guarantor, surety or accommodation maker for the obligations of, or have any outstanding borrowings from, any Person
except as described in Schedule 5.11 hereto.


 


(b)
Borrower is not a party to any contract or agreement, or subject to any charter or other entity restriction, which could reasonably be
expected to cause a Material Adverse Effect.


 


(c)
Except as otherwise specifically provided in this Agreement, Borrower has not agreed or consented to cause or permit any of the Collateral
whether now owned or hereafter acquired to be subject in the future (upon the happening of a contingency or otherwise) to a Lien or encumbrance
not permitted by this Agreement.


 




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5.12
Compliance with Laws.


 


(a)
Borrower is not in violation of, and has not received written notice that it is in violation of, nor has Borrower knowingly caused any
Person to violate, any applicable statute, regulation or ordinance of the United States of America, or of any state, city, town, municipality
or county or of any other jurisdiction, or of any agency, or department thereof (including environmental laws and regulations), which
could reasonably be expected to cause a Material Adverse Effect.


 


(b)
Borrower is current with all reports and documents required to be filed with any state or federal securities commission (if any) or similar
agency and is in full compliance with all applicable rules and regulations of such commissions, except where such failure to so file
or comply could not reasonably be expected to cause a Material Adverse Effect.


 


5.13
Other Associations. Borrower is not engaged in, nor does Borrower have an interest in, any joint venture or partnership with any
other Person nor has any Subsidiaries or Affiliates, except as described on Schedule 5.13 hereto.


 


5.14
Environmental Matters. Except as disclosed on Schedule 5.14 hereto, Borrower has no knowledge:


 


(a)
of violations of any Environmental Laws on any of the real property on which Borrower maintains operations or has its Personal property,
or on which any Collateral is located;


 


(b)
of any claims or actions pending or threatened, or claims or actions in the past during Borrower’s period of ownership, against
Borrower or any of such real property by any governmental entity or agency or by any other Person or entity relating to Hazardous Substances
or pursuant to any Environmental Laws;


 


(c)
of the presence of any Hazardous Substances on any of such real property;


 


(d)
of any such real property ever having been used by Borrower or, to the best of Borrower’s knowledge, any other Person, to refine,
produce, store, handle, transfer, process, transport or dispose of Hazardous Substances other than in full compliance with Environmental
Laws;


 


(e)
of storage tanks (including petroleum or heating oil storage tanks), underground or above ground, present on or under any of such real
property, or that have been on or under any such real property but removed therefrom;


 


(f)
of any on-site spills, releases, discharges, disposal or storage of Hazardous Substances that have occurred or are presently occurring
on any of such real property; or


 


(g)
of any spills, releases, discharges, disposal or storage of Hazardous Substances that have occurred or are presently occurring on any
other real property as a result of the conduct, action or activities of Borrower.


 


5.15
Equity Interests. The authorized and outstanding Equity Interests of Borrower are as set forth on Schedule 5.15 hereto. All of
the Equity Interests of Borrower have been duly and validly authorized and issued and are fully paid and non-assessable and have been
sold and delivered to the holders thereof in compliance with, or under valid exemption from, all federal and state laws and the rules
and regulations of all regulatory bodies thereof governing the sale and delivery of securities. Except for the rights and obligations
set forth in Schedule 5.15 hereto, there are no subscriptions, warrants, options, calls, commitments, rights or agreements by which Borrower
or any of the Members of Borrower is bound relating to the issuance, transfer, voting or redemption of its Equity Interests or any preemptive
rights held by any Person with respect to the Equity Interests of Borrower. Except as set forth in Schedule 5.15 hereto, Borrower has
not issued any securities convertible into or exchangeable for its Equity Interests or any options, warrants or other rights to acquire
such Equity Interests or securities convertible into or exchangeable for such Equity Interests.


 




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5.16
Lockboxes. The Government Lockbox and the Commercial Lockbox are the only lockbox accounts maintained by Borrower, and each Obligor
of an Eligible Account has been (or will be immediately after Closing) directed by the notice attached as Exhibit 4.02(c) to this Agreement,
and is required to, remit all payments with respect to such Account for deposit in the Commercial Lockbox (other than the Obligors of
Government Accounts which have been (or will be immediately after Closing) directed by the notice attached as Exhibit 4.02(d) (or such
other notice that Lender may require), to this Agreement to remit all payments with respect to such Accounts for deposit in the Government
Lockbox).


 


5.17
Borrowing Base Certificates. Each Borrowing Base Certificate signed by Borrower, on behalf of Borrower, contains an accurate summary
of all Eligible Accounts of Borrower contained in the Borrowing Base as of its date.


 


5.18
Security Interest. Borrower represents and warrants to Lender that except for the Permitted Liens, (a) upon the filing of UCC
financing statements covering the Collateral in all required jurisdictions, this Agreement creates a valid, perfected, first priority
and exclusive security interest in all Collateral of Borrower as to which perfection may be achieved by filing, (b) Lender’s security
interests in the Collateral constitute, and will at all times constitute, first priority and exclusive Liens on the Collateral, and (c)
Borrower is, or will be at the time additional Collateral is acquired by Borrower, the absolute owner of such additional Collateral with
full right to pledge, sell, transfer and create a security interest therein, free and clear of any and all claims or Liens other than
Permitted Liens.


 


5.19
Accounts.


 


(a)
Borrower has not done anything to interfere with the collection of the Accounts, and Borrower has not amended or waived the terms or
conditions of any Account or any related Contract in any material adverse manner or in any manner not consistent with the ordinary course
of Borrower’s business and consistent with past practices unless any such amendment or waiver is promptly and accurately reflected
in the immediately following Account Detail File delivered to Lender pursuant to the terms of this Agreement.


 


(b)
Borrower has made all payments to Obligors necessary to prevent any Obligor from offsetting any earlier overpayment to Borrower against
any amounts such Obligor owes on an Account.


 


5.20
ERISA. Borrower and all other members of its Controlled Group have fulfilled their obligations under the minimum funding standards
of, and are in compliance in all material respects with, ERISA and the Code to the extent applicable to them and, other than a liability
for premiums under Section 4007 of ERISA, have not incurred any liability to the PBGC or a Plan under Title IV of ERISA. Borrower and
its Subsidiaries and/or Affiliates have no contingent liabilities with respect to any post-retirement benefits under a welfare plan,
as defined in Section 3(1) of ERISA, other than liability for continuation coverage described in Article 6 of Title 1 of ERISA.


 


5.21
Representations and Warranties for each Revolving Loan. As of each date that Borrower shall request any Revolving Loan, Borrower
shall be deemed to make, with respect to each Eligible Account included in the Borrowing Base, each of the following representations
and warranties:


 


(a)
Such Account satisfies each of the conditions of an Eligible Account.


 


(b)
All information relating to such Account that has been delivered to Lender is true, complete and correct in all material respects. With
respect to each such Account that has been billed, Borrower has delivered to the Obligor all requested supporting claim documents, and
all information set forth in the bill and supporting claim documents is true, complete and correct in all material respects.


 


(c)
Other than Permitted Liens, there is no Lien or adverse claim in favor of any third party, nor any filing against Borrower, as debtor,
covering or purporting to cover any interest in such Account.


 


(d)
Such Account is (i) payable in an amount not less than its Estimated Net Value by the Obligor identified by Borrower as being obligated
to do so, and is recognized as such by the Obligor, (ii) the legally enforceable obligation of such Obligor, and (iii) an account or
general intangible within the meaning of the UCC, or is a right to payment under a policy of insurance or proceeds thereof, and is not
evidenced by any instrument or chattel paper. There is no payor other than the Obligor identified by Borrower as the payor primarily
liable on such Account (other than patient co-pays and deductibles).


 




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(e)
No such Account (i) requires the approval of any third Person for such Account to be pledged as Collateral to Lender hereunder, (ii)
is subject to any legal action, proceeding or investigation (pending or threatened), dispute, set-off, counterclaim, defense, abatement,
suspension, deferment, deductible, reduction or termination by the Obligor, or (iii) is past the statutory limit for collection applicable
to the Obligor.


 


(f)
Borrower does not have any guaranty of, letter of credit support for, or collateral security for such Account, other than any such guaranty,
letter of credit or collateral security as has been pledged as Collateral to Lender.


 


(g)
The services constituting the basis of such Account (i) to the best of Borrower’s knowledge were medically necessary for the patient
and (ii) at the time such services were rendered, were fully covered (subject to co-pays and deductibles) by the insurance policy or
Contract obligating the applicable Obligor to make payment with respect to such Account (and Borrower has verified such determination),
and (iii) were provided to the patient in the ordinary course of Borrower’s business.


 


(h)
The fees and charges charged for the services constituting the basis for such Account were when rendered and are (i) currently consistent
with the usual, customary and reasonable fees charged by Borrower or (ii) pursuant to negotiated fee contracts, or imposed fee schedules,
with or by the applicable Obligors.


 


(i)
The Obligor with respect to such Account is located in the United States and is (i) a party which, in the ordinary course of its business
or activities agrees to pay for healthcare services received by individuals, including commercial insurance companies and non-profit
insurance companies issuing health or other types of insurance, employers or unions, self-insured healthcare organizations, preferred
provider organizations, and health insured, prepaid maintenance organizations, (ii) a state, an agency or instrumentality of a state
or a political subdivision of a state, or (iii) the United States or an agency or instrumentality of the United States.


 


(j)
The insurance policy or Contract obligating an Obligor to make payment (i) does not prohibit the transfer of such payment obligation
from the patient to Borrower and (ii) is and was in full force and effect and applicable to the patient at the time the services constituting
the basis for such Account were performed.


 


(k)
The representations and warranties made by Borrower in the Loan Documents and all financial or other information delivered to Lender
with respect to Borrower and such Account do not contain any untrue statement of material fact or omit to state a material fact necessary
to make the statement made not misleading.


 


(l)
If requested by Lender, a copy of each related Contract, if any, to which Borrower is a party has been delivered to Lender unless Borrower
shall have, prior to the related Funding Date, certified in an Officer’s Certificate that such delivery is prohibited by the terms
of the Contract or by law, and the circumstances of such prohibition.


 


(m)
If such Account has not been billed, the services giving rise to such Account have been properly recorded in Borrower’s accounting
system.


 


(n)
Other than with respect to an Account that is Medicaid Pending, such Account was (or if unbilled, will be) in any event billed no later
than thirty (30) days after the date the services or goods giving rise to such Account were rendered as provided, as applicable, and
each bill contains an express direction requiring the Obligor to remit payments to either the Government Lockbox or Commercial Lockbox,
as applicable.


 




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(o)
Such Account has an Estimated Net Value which, when added to the Estimated Net Value of all other Accounts owing by the same Obligor
and which constitute Eligible Accounts hereunder, does not exceed any applicable Concentration Limit.


 


(p)
Neither such Account nor the related Contract contravenes any laws, rules or regulations applicable thereto (including laws, rules and
regulations relating to usury, consumer protection, truth-in-lending, fair credit billing, fair credit reporting, equal credit opportunity,
fair debt collection practices and privacy), and no party to such related Contract is in violation of any such law, rule or regulation
in connection with such Contract.


 


(q)
As of the applicable Funding Date, to Borrower’s knowledge, no Obligor on such Account is bankrupt, insolvent, or is unable to
make payment of its obligations when due, and no other fact exists which would cause Borrower reasonably to expect that the amount billed
to the related Obligor for such Account will not be paid in full when due.


 


(r)
The ENV of all Eligible Accounts shall not exceed any of the Concentration Limits.


 


5.22
Interrelatedness of Borrower. The business operations of Borrower are interrelated and complement one another, and such companies
have a common business purpose, with intercompany bookkeeping and accounting adjustments used to separate their respective Properties,
liabilities and transactions. To permit their uninterrupted and continuous operation, such companies now require and will from time to
time hereafter require funds for general business purposes. The proceeds of Advances under the Credit Facility will directly or indirectly
benefit Borrower hereunder severally and jointly, regardless of whether Borrower requests or receives part or all of the proceeds of
such Revolving Loan.


 


5.23
Commercial Tort Claims. Borrower has no Commercial Tort Claims against any third parties, except as shown on Schedule 5.23 hereto
and except those acquired after the Closing Date in which Lender has been granted a security interest in accordance with Section 6.16
hereof.


 


5.24
Letter-of-Credit Rights. Borrower has no letter-of-credit rights (as defined in the UCC) except as shown on Schedule 5.24 hereto
and except those acquired after the Closing Date and disclosed to Lender in accordance with Section 6.19(a) hereof.


 


5.25
Intellectual Property. Except as shown on Schedule 5.25 hereto and made part hereof and except those acquired after the Closing
Date and disclosed to Lender in accordance with Section 6.19(b), (a) Borrower does not require any copyrights, patents, trademarks, other
Intellectual Property or other general intangibles (as defined in the UCC), or any license(s) to use any patents, trademarks or other
Intellectual Property in order to (i) provide services to its customers, (ii) bill Obligors and collect therefrom, in the ordinary course
of business or (iii) otherwise conduct Borrower’s business as presently conducted, and (b) Borrower has not granted an exclusive
license to any party that relates to Borrower’s Intellectual Property. All of Borrower’s rights in its Intellectual Property
are enforceable, valid and subsisting. No action, suit, demand, charge or claim has been made or threatened which challenges the enforceability
or validity of Borrower’s Intellectual Property.


 


5.26
Solvency. Immediately prior to and after giving effect to each borrowing hereunder and the use of the proceeds thereof, with respect
to Borrower (a) the fair value of its assets is greater than the amount of its liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated, (b) the present fair saleable value of its assets is not less than
the amount that will be required to pay the probable liability on its debts as they become absolute and matured, (c) it is able to realize
upon its assets and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature
in the normal course of business, (d) it does not intend to, and does not believe that it will, incur debts or liabilities beyond its
ability to pay as such debts and liabilities mature, and (e) it is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which its property would constitute unreasonably small capital.


 


5.27
Schedules. Each of the Schedules attached to this Agreement sets forth a true, correct and complete description of the matter
or matters covered thereby.


 




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Article
6


 


AFFIRMATIVE
COVENANTS


 


Borrower
covenants that until all of the Obligations to Lender are paid and satisfied in full and the Credit Facility has been terminated:


 


6.01
Payment of Taxes and Claims. Borrower shall pay, before they become delinquent, all Taxes, assessments and governmental charges
or levies imposed upon it or upon Borrower’s Property, except for those being contested in good faith with due diligence by appropriate
proceedings and for which appropriate reserves have been maintained under GAAP.


 


6.02
Maintenance of Insurance, Financial Records and Existence.


 


(a)
Required Insurance. Borrower and Corporate Guarantor shall maintain or cause to be maintained insurance on its Property against
fire, flood, casualty, public liability, business interruption and such other hazards, as well as general liability, medical malpractice
insurance and other liability insurance related to the business of Borrower and Corporate Guarantor required by Lender, all in such amounts,
with such deductibles and with such insurers as are at all times reasonably satisfactory to Lender (the “Required Insurance”).
All of the policies relating to the Required Insurance shall contain standard “lender loss payable” and “additional
insured” clauses issued in favor of Lender (where applicable) pursuant to which all losses thereunder shall be paid to Lender as
Lender’s interests may appear. Such policies shall expressly provide that the Required Insurance cannot be altered or canceled
without thirty (30) days’ prior written notice to Lender and shall insure Lender notwithstanding the act or neglect of the insured.
At or prior to Closing, Borrower and Corporate Guarantor shall furnish Lender with insurance certificates certified as true and correct
and being in full force and effect as of the Closing Date or such other evidence of the Required Insurance as Lender may require. In
the event Borrower or Corporate Guarantor fails to procure or cause to be procured any of the Required Insurance or to timely pay or
cause to be paid the premium(s) on any of the Required Insurance (or to provide evidence of any of the foregoing to Lender promptly upon
request therefor), Lender may do so for Borrower or Corporate Guarantor, as the case may be, but Borrower shall continue to be liable
for the same. Borrower and Corporate Guarantor further covenant that all insurance premiums owing under the current casualty policy will
be paid when due. Borrower also agrees to notify Lender, promptly, upon Borrower’s or Corporate Guarantor’s receipt of a
notice of termination, cancellation or non-renewal from its insurance company of any of the Required Insurance. Each of Borrower and
Corporate Guarantor hereby appoint Lender as its attorney-in-fact, exercisable at Lender’s option, to endorse any check which may
be payable to Borrower or Corporate Guarantor, as the case may be, in order to collect the proceeds of the Required Insurance.


 


(b)
Financial Records. Borrower and Corporate Guarantor shall keep current and accurate books of records and accounts in which full
and correct entries will be made of all of its business transactions, and will reflect in its financial statements adequate accruals
and appropriations to reserves, all in accordance with GAAP. Neither Borrower nor Corporate Guarantor shall not change its respective
fiscal year-end date without prior written notice to Lender.


 


(c)
Existence and Rights. Each of Borrower and Corporate Guarantor shall do (or cause to be done) all things necessary to preserve
and keep in full force and effect its legal existence, good standing, rights and franchises except as otherwise permitted by Section
7.01.


 


6.03
Business Conducted. Borrower shall continue in the business presently operated by it using its best efforts to maintain its customers.
Borrower shall not engage, directly or indirectly, in any line of business substantially different from the businesses conducted by it
immediately prior to the Closing Date without obtaining the prior written consent of Lender.


 


6.04
Litigation. Borrower shall give prompt notice to Lender of any litigation claiming in excess of Fifty Thousand and No/100 Dollars
($50,000.00) from Borrower or which, if adversely determined, could reasonably be expected to cause a Material Adverse Effect.


 




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6.05
Taxes. Borrower and Corporate Guarantor shall pay, and cause to be paid, all Taxes when due (other than taxes based upon or measured
by Lender’s income or revenues), if any, in connection with the Revolving Loans and/or the recording of any financing statements
or other Loan Documents. The Obligations of Borrower and Corporate Guarantor under this section shall survive the payment of the Obligations
under this Agreement and the termination of this Agreement.


 


6.06
Financial Covenants. Borrower and Corporate Guarantor shall perform and comply with each of the following financial covenants
as reflected and computed from its financial statements:


 


(a)
Borrower and Corporate Guarantor (on a consolidated basis) shall maintain at all times a Fixed Charge Coverage Ratio of at least 1.00
to 1:00 measured quarterly (i) on an Annualized Basis commencing with the three months ending September 30, 2019, (ii) on an Annualized
Basis for the six months ending December 31, 2019, (iii) on an Annualized Basis for the nine months ending March 31, 2020, (iv) on a
rolling four-quarter basis for the fiscal quarter ended June 30, 2020 and for each fiscal quarter thereafter.


 


(b)
Borrower’s Maximum Loan Turn Days shall be no more than thirty-five (35) days tested (i) as of June 30, 2019, for the two months
then ended and (ii) for the fiscal quarter ended September 30, 2019 and for each fiscal quarter thereafter, on a rolling three-month
basis on the last Business Day of each such fiscal quarter.


 


6.07
Financial and Business Information. Borrower and Corporate Guarantor shall deliver to Lender the following (all to be in form
and substance satisfactory to Lender):


 


(a)
Financial Statements and Collateral Reports.


 


(i)
as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Parent, financial statements
of Parent for such year which present fairly Parent’s financial condition, including the balance sheet of Parent as at the end
of such fiscal year and an income statement for such fiscal year, all on a consolidated and consolidating basis, setting forth in the
consolidated statements in comparative form, the corresponding figures as at the end of and for the previous fiscal year, all in reasonable
detail, including all supporting schedules, and audited and accompanied by a report and opinion of independent public accountants of
recognized standing, selected by Parent and reasonably satisfactory to Lender, which report and opinion shall be prepared in accordance
with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception
or any qualification or exception as to the scope of such audit;


 


(ii)
as soon as available, but in any event within thirty (30) days after the end of each fiscal quarter, Parent’s internally prepared
quarterly consolidated and consolidating financial statements, along with year-to-date information, including a balance sheet and income
statement with respect to the periods measured;


 


(iii)
promptly upon request, such other information concerning Borrower as Lender may from time to time request including Medicare and Medicaid
cost reports and audits, annual reports, security law filings and reports to any security holders;


 


(iv)
as soon as available, but in any event no later than thirty (30) days after the first day of each fiscal year, annual consolidated and
consolidating financial projections for Parent for such year, including an income statement prepared on a monthly basis and such other
consolidated and consolidating financial projections as Lender may reasonably request;


 


(v)
contemporaneously with delivery of the annual financial statements referred to in clause (i) above, management reports detailing key
census data for Borrower and a good-standing certificate from Borrower’s and Corporate Guarantor’s jurisdiction of organization
evidencing that Borrower remains in good standing in, and continues to be organized under the laws of, such jurisdiction;


 


(vi)
on the last business day of every month, evidence satisfactory to Lender that all bed taxes and federal and state taxes, including, without
limitation, payroll taxes, that are due have been paid in full, including without limitation copies of the most recently filed Form 941
for each Borrower and Corporate Guarantor together with evidence of such payment; and


 




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(vii)
such other data, reports, statements and information (financial or otherwise), as Lender may reasonably request.


 


(b)
Notice of Default or Event of Default - promptly (but at least within two (2) calendar days) upon becoming aware of the existence
of any condition or event which constitutes a Default or Event of Default under this Agreement, a written notice specifying the nature
and period of existence thereof and what action Borrower is taking (and proposes to take) with respect thereto;


 


(c)
Notice of Claimed Default - promptly upon receipt by Borrower, notice of default, oral or written, given to Borrower by any creditor
for borrowed money in excess of Fifty Thousand and No/100 Dollars ($50,000.00);


 


(d)
Government Reimbursement Program - promptly upon receipt by Borrower, notice of a written recommendation from any Governmental
Authority or other regulatory body that Borrower should have its licensure, provider or supplier number or accreditation suspended, revoked,
or limited in any material way, or have its eligibility to participate in Medicaid or any other Government Reimbursement Program to accept
assignments or rights to reimbursement under Medicaid, or any other Government Reimbursement Program regulations suspended, revoked,
or limited in any material way.


 


6.08
Officer’s Certificate. Along with the set of financial statements delivered to Lender at the end of each fiscal quarter
and fiscal year pursuant to Section 6.07(a) hereof, Borrower shall deliver to Lender a certificate (in the form of Exhibit 6.08 hereto
and made a part hereof) from an Authorized Officer of Borrower setting forth:


 


(a)
Covenant Compliance - the information (including detailed calculations) required in order to establish whether Borrower and Corporate
Guarantor are in compliance with the requirements of Sections 6.06 as of the end of the period covered by the financial statements then
being furnished (and any exhibits appended thereto) under Section 6.07 hereof; and


 


(b)
Event of Default - that the signer in his capacity as an officer of Borrower and Corporate Guarantor has reviewed the relevant
terms of this Agreement and has made (or caused to be made under his supervision) a review of the transactions and conditions of Borrower
and Corporate Guarantor from the beginning of the accounting period covered by the financial statements being delivered therewith to
the date of the certificate, and that such review has not disclosed the existence during such period of any condition or event which
constitutes a Default or Event of Default, or if any such condition or event existed or exists, specifying the nature and period of existence
thereof and what action Borrower and/or Corporate Guarantor has taken or proposes to take with respect thereto.


 


6.09
Inspection. Borrower will permit any of Lender’s officers or other representatives to visit and inspect Borrower’s
location(s) or where any Collateral is kept during regular business hours to examine and audit all of Borrower’s books of account,
records, reports and other papers, to make copies and extracts therefrom and to discuss its affairs, finances and accounts with its officers,
employees and independent certified public accountants and attorneys. Borrower shall pay to Lender all reasonable fees based on standard
rates for such inspections, currently at the rate of $1,100 per day, per Person (plus out-of-pocket expenses); provided, however, that
if no Event of Default has occurred and is continuing, Borrower’s obligation to pay Lender such fees shall be limited to such fees
incurred in connection with two (2) inspections per fiscal year. All costs, fees and expenses incurred by Lender in connection with such
inspections shall constitute Expenses for purposes of this Agreement. All costs, fees and expenses incurred by Lender in connection with
such inspections shall constitute Expenses for purposes of this Agreement.


 


6.10
Tax Returns and Reports. At Lender’s request from time to time, Borrower shall promptly furnish Lender with copies of any
annual federal and state income tax returns, any other tax returns of Borrower or any other documents related to Taxes of Borrower.


 




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6.11
Material Adverse Developments. Borrower agrees that immediately (but at least within two (2) calendar days) upon it or any of
its officers becoming aware of any development or other information which would reasonably be expected to have a Material Adverse Effect,
it shall give to Lender telephonic, facsimile or scanned image notice specifying the nature of such development or information and such
anticipated effect. In addition, such verbal communication shall be confirmed by written notice thereof to Lender on the next Business
Day after such verbal notice is given.


 


6.12
Places of Business. Borrower shall give thirty (30) days’ prior written notice to Lender of any changes to (a) its jurisdiction
of organization, (b) the location of any of its chief executive office or any other places of business, or the establishment of any new,
or the discontinuance of any existing, place of business, and (c) its name.


 


6.13
Notice of Action. Borrower will promptly notify Lender in the event it becomes aware of any legal action, dispute, setoff, counterclaim,
defense or reduction that is or may be asserted by an Obligor with respect to any Account that may have a material adverse effect on
the collectability of such Account or all Accounts collectively.


 


6.14
Verification of Information. At the request of Lender, Borrower will promptly provide and verify the accuracy of information concerning
Borrower and its Affiliates of the type provided to Lender in connection with Lender’s decision to enter into this Agreement and
such other information concerning Borrower and its Affiliates as Lender may reasonably request in connection with any offering documents
with respect to the contemplated securitization of, and sale of securities backed by, the Eligible Accounts (the “Securities”),
including all information necessary to provide full and complete disclosure of all material facts pertaining to an investment in the
Securities in compliance with federal and state securities and blue-sky laws, and such information may be published in such offering
documents and relied upon by Lender and any party arranging the offering of such Securities by Lender or its assignee. Such information
will be true and complete in all material respects and will not omit to state a material fact necessary to make the statements contained
in such information, in light of the circumstances under which they were made, not misleading.


 


6.15
Accounts Receivables Monitoring System. Borrower shall deliver to Lender or its agents the Accounts Detail File in accordance
with Section 2.02(d) hereof and shall assist, as needed, Lender or its agent in completing and maintaining such exchange of files such
that Lender’s accounts receivable monitoring system can interpret the Accounts Detail File provided by Borrower.


 


6.16
Commercial Tort Claim. Borrower shall provide written notice to Lender of any Commercial Tort Claim to which Borrower is or becomes
a party or which otherwise inures to the benefit of Borrower. Such notice shall contain a sufficient description of such Commercial Tort
Claim including the parties, the court in which the claim was commenced (if applicable), the docket number assigned to the case (if applicable),
and a detailed explanation of the events giving rise to such claim. In such writing, Borrower shall grant Lender a security interest
in such Commercial Tort Claim and in the Proceeds (as defined in the UCC) thereof, all upon the terms of this Agreement to secure payment
of the Obligations. Borrower shall execute and deliver such instruments, documents and agreements as Lender may require in order to obtain
and perfect such security interest including a security agreement or amendment to this Agreement, all in form and substance satisfactory
to Lender. Borrower authorizes Lender to file (without Borrower’s signature) financing statements or amendments to existing financing
statements as Lender deems necessary to perfect the security interest in such Commercial Tort Claim.


 


6.17
Compliance with Laws.


 


(a)
Borrower agrees to comply with all Applicable Laws, and all orders of any Federal, state or local legislative, administrative or judicial
body or official, provided that Borrower may contest any acts, rules, regulations, orders and directions of such bodies or officials
in any reasonable manner which Lender determines will not materially and adversely affect Lender’s rights or priorities in the
Collateral.


 




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(b)
Without limiting the generality of the foregoing, Borrower agrees to comply with all Environmental Laws, applicable to the ownership
(to the extent Borrower owns any real property) and/or use of Borrower’s real property and operation of its business, if the failure
to so comply could reasonably be expected to have a Material Adverse Effect. Borrower shall not be deemed to have breached any provision
of this Section 6.17(b) if (i) the failure to comply with the requirements of this Section 6.17(b) resulted from good-faith error or
innocent omission, (ii) Borrower promptly commences and diligently pursues a cure of such breach and (iii) such failure is cured within
thirty (30) days following Borrower’s receipt of notice from Lender of such failure, or if such breach cannot in good faith be
cured within thirty (30) days following Borrower’s receipt of such notice, then such breach is cured within a reasonable time frame
based on the extent and nature of the breach and the necessary remediation, and in conformity with any applicable consent order, consensual
agreement and Applicable Law.


 


(c)
Borrower will (i) maintain in full force and effect, and free from restrictions, probations, conditions or known conflicts which would
materially impair the use or operation of any Healthcare Facility for its current use, all Permits necessary under Healthcare Laws to
continue to receive reimbursement under all Third Party Payor Programs in which Borrower or any Healthcare Facility participates as of
the date of this Agreement, and (ii) provide to Lender upon request, an accurate, complete and current list of all Participation Agreements.
Borrower will at all times comply with all requirements, contracts, conditions and stipulations applicable to Borrower in order to maintain
in good standing and without default or limitation all such Participation Agreements.


 


6.18
Collateral Reporting. Borrower agrees to furnish to Lender such information as Lender reasonably requires in connection with monitoring
the Collateral, at the times and in the manner determined by Lender, including Medicare and Medicaid cost reports and audits, if any.


 


6.19
Collateral.


 


(a)
If Borrower becomes a beneficiary under any letter of credit not shown on Schedule 5.24 hereto, Borrower agrees to promptly notify
Lender, and upon request by Lender, Borrower agrees to either (i) cause the issuer of such letter of credit to consent to the assignment
of the proceeds of such letter of credit to Lender, pursuant to an agreement in form and substance satisfactory to Lender, or (ii) cause
the issuer of such letter of credit to name Lender as the transferee beneficiary of such letter of credit.


 


(b)
Borrower agrees to maintain Borrower’s rights in, and the value of, all copyrights, patents, trademarks, other Intellectual Property
and General Intangibles shown on Schedule 5.25 hereof, and to pay when due all payments required to maintain in effect any licensed
rights. Borrower shall provide Lender with adequate notice of the acquisition of rights with respect to any additional patents, registered
trademarks and registered copyrights of the type described in Section 5.25 hereof so that Lender may, to the extent permitted under the
documentation granting such rights or Applicable Law, perfect Lender’s security interest in such rights in a timely manner. Further,
Borrower shall not grant to any Person an exclusive license to use any Intellectual Property set forth in Schedule 5.25 hereof.
In the event that an action, suit, demand, charge or claim that is made or threatened in writing which challenges the enforceability
or validity of Borrower’s Intellectual Property set forth in Schedule 5.25 hereof, Borrower shall give Lender immediate
notice of such fact, including a detailed description of the issue as well as Borrower’s plans to resolve it.


 


(c)
Borrower, at its expense, agrees to forever warrant and defend the Collateral from any and all claims and demands of any other Person,
other than holders of Permitted Liens and as otherwise permitted hereby.


 


6.20
Intellectual Property. Borrower shall make all appropriate filings and do all things necessary to maintain its rights under the
Intellectual Property owned and used by Borrower, including the filing of registrations and continuations thereof, execution of license
agreements, etc.


 


6.21
Deposit Account Control Agreements; Bank Accounts. Borrower shall not open, maintain or otherwise have any operating account,
other than operating accounts that are subject to a Deposit Account Control Agreement.


 




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6.22
Right of First Refusal. Borrower hereby agrees that if, at any time during the term hereof, Borrower receives from a third party
an offer, term sheet or commitment, or Borrower makes a proposal substantially acceptable to or accepted by any Person (all of the foregoing
being referred to as an “Offer”), which Offer provides for working capital financing or accounts receivable financing secured
in whole or in part by assets (tangible or intangible) or Personal property of Borrower related to the Credit Facility, Borrower shall,
notwithstanding any confidentiality provisions contained in such Offer, immediately notify Lender of the Offer in writing (including
all material terms of the Offer). Lender shall have fifteen (15) days after receipt thereof (the “Option Period”) to agree
in its sole discretion whether to provide similar financing in the place of such Person upon substantially the same terms and conditions
set forth in the Offer and to notify Borrower in writing of Lender’s acceptance of the Offer (the “Acceptance Notice”).
If Borrower has not received an Acceptance Notice within the Option Period, Borrower shall be free to consummate the transaction described
in the Offer with the third party providing the Offer (the “Offer Transaction”); provided, however, that the foregoing, and
Lender’s failure to respond by issuing an Acceptance Notice, shall not be construed as a waiver of any of the terms, covenants
or conditions of the Loan Documents, including the Termination Fee. In the event that the Offer Transaction is not consummated under
similar terms with such Person during the one hundred and twenty (120) day period following the expiration of the Option Period, or any
material term is changed, Borrower shall not be permitted to consummate the Offer Transaction without again complying with this Section.
Nothing in this Section is intended, or shall be construed, to constitute Lender’s consent to the consummation of any transaction
described in any Offer.


 


6.23
Change in Management. Unless consented to by Lender, or if a replacement acceptable to Lender is employed within ninety (90) days
of any termination, each of (i) Gregory Shayne Bench, (ii) Shari C. Bench and (iii) Richard T. Mason shall remain as officers, in each
case, actively involved in the day-to-day management of Borrower.


 


6.24
Redirect Payments; Invoices.


 


(a)
Borrower shall take all actions required by Lender or otherwise necessary to redirect payments on Accounts from any existing deposit
or lockbox accounts, if any, to the Commercial Lockbox and Government Lockbox. If Borrower fails to take the actions as aforesaid and
the process of redirecting payments as described above to the extent required has not been completed by Third-Party Payors to Lender’s
satisfaction, Lender may at its option suspend its obligation to make any Advances pursuant to the Loan Documents until such process
is completed to Lender’s satisfaction, and such failure or event shall constitute an Event of Default pursuant to the terms and
provisions hereunder.


 


(b)
Within thirty (30) days of the Closing Date, Borrower shall provide to Lender evidence reasonably satisfactory to Lender that Borrower’s
invoices to Third-Party Payors have been revised to reflect proper directions for payment regarding the Commercial Lockbox and Government
Lockbox pursuant to this Agreement.


 


6.25
Post-Closing Obligations. Borrower shall deliver to Lender as soon as possible, but in any event not later than:


 


(a)
thirty (30) days from the Closing Date, (i) endorsement(s) to the property insurance policy of Borrower and Corporate Guarantor adding
Lender as lenders loss payable thereto, and (ii) endorsement(s) to the general liability policy of Borrower and Corporate Guarantor adding
Lender as additional insured thereto, in each case in accordance with Section 6.02(a) of this Agreement and in form and substance satisfactory
to Lender;


 


(b)
May 17, 2019, evidence satisfactory to Lender that the all-asset UCC-1’s filed by Gordon Food Service, Inc. on March 27, 2019 against
each of Premier Estates 520, LLC, Premier Estates 521, LLC,; Premier Estates 522, LLC, Premier Estates 523, LLC, Premier Estates 524,
LLC, Premier Estates 525, LLC, and Premier Estates 526, LLC have been terminated.


 




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Article
7



NEGATIVE COVENANTS


 


Borrower
covenants that until all of Borrower’s Obligations to Lender are paid and satisfied in full and the Credit Facility has been terminated:


 


7.01
Merger, Consolidation, Dissolution, Liquidation or Amendments.


 


(a)
Borrower shall not sell, lease, license, transfer or otherwise dispose of its Property other than inventory sold to patients/customers
in the ordinary course or ordinary operation of Borrower’s business, without Lender’s prior written consent.


 


(b)
Borrower shall not merge or consolidate with, or acquire, any other Person or commence a dissolution or liquidation, other than through
a merger with another Borrower, without Lender’s prior written consent.


 


(c)
Borrower shall not revise its Organizational Documents without Lender’s prior written consent.


 


(d)
Borrower shall not directly or indirectly, amend, modify, or change any of the terms or provisions of either Master Lease.


 


7.02
Liens and Encumbrances. Borrower shall not, without obtaining prior written consent from Lender, cause or permit or agree or consent
to cause or permit in the future (upon the happening of a contingency or otherwise) the Collateral, whether now owned or hereafter acquired,
to be subject to any Lien, claim or encumbrance other than those of Lender and the following:


 


(a)
any Lien on any asset incurred or assumed for the purpose of financing all or part of the cost of acquiring such asset;


 


(b)
Liens for taxes or other governmental charges (A) (x) not at the time delinquent; and (y) payable without penalty; or (B) the subject
of a contest in good faith, provided that appropriate provisions shall have been established therefor, for periods after the Closing
Date, in accordance with GAAP;


 


(c)
Liens arising in the ordinary course of business (1) in favor of carriers, warehousemen, mechanics, materialmen, landlords and other
similar Liens imposed by law and (2) in connection with worker’s compensation, unemployment compensation and other types of social
security or in connection with surety bonds, bids, performance bonds, tenders, statutory obligations, customs and appeal bonds, government
contracts, trade contracts, performance and return of money bonds and other similar obligations not involving obligations for the payment
of borrowed money, provided that appropriate provisions shall have been established therefor, for periods after the Closing Date, in
accordance with GAAP;


 


(d)
attachments and judgments and other similar Liens not constituting an Event of Default;


 


(e)
easements, rights of way, restrictions, minor defects or irregularities in title and other similar Liens, in each case, not interfering
in any material respect with the ordinary conduct of Borrower’s business;


 


(f)
any interest or title of a licensor, sublicensor, lessor or sublessor under any license or lease agreement;


 


(g)
licenses, sublicenses, leases or subleases of real property or Intellectual Property granted by Borrower (as lessor or licensor) to third
Persons in the ordinary course of business consistent with past practices;


 


(h)
banker’s Liens and rights of set-off of financial institutions arising in connection with items deposited in accounts maintained
at such financial institution and subsequently unpaid and fees and expenses that are charged to Borrower by such financial institutions
in the normal course of business of the maintenance and operation of such accounts;


 


(i)
Liens on insurance policies and the proceeds thereof incurred in connection with the financing of insurance premiums in the ordinary
course of business;


 




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(j)
Liens existing on the date hereof and, subject to the limitations set forth in subsection (l) below, renewals and extensions thereof,
which Liens are set forth on Schedule 5.06;


 


(k)
Liens granted to the (i) Omega Master Landlord under the terms of the Omega Master Lease and subject to the Omega Intercreditor Agreement
and (ii) CareTrust Master Landlord under the terms of the CareTrust Master Lease and subject to the CareTrust Intercreditor Agreement;
and


 


(l)
Liens arising out of any permissible refinancing, extension, renewal or refunding of any existing Indebtedness secured by any Lien permitted
by any of the foregoing clauses provided that such Lien shall at no time be extended to cover any assets or property other than
such assets or property subject thereto on the Closing Date or the date such Lien was incurred, as applicable.


 


7.03
Negative Pledge. No Borrower shall permit, pledge or grant a Lien or security interest to exist on its Equity Interests.


 


7.04
Transactions with Affiliates or Subsidiaries.


 


(a)
Borrower shall not enter into any transaction with any Subsidiary or other Affiliate including the purchase, sale, lease or exchange
of Property, or the loaning, capitalization or giving of funds to any such Affiliate or any Subsidiary, unless (i) such Subsidiary or
Affiliate is engaged in a business substantially related to the business conducted by Borrower, (ii) the transaction is in the ordinary
course of and pursuant to the reasonable requirements of Borrower’s business and upon terms substantially the same and no less
favorable to Borrower as it would obtain in a comparable arm’s-length transaction with any Person not an Affiliate or a Subsidiary,
and (iii) such transaction is not prohibited hereunder.


 


(b)
Except with the prior written consent of Lender, Borrower shall not create or acquire any Subsidiary or own any Equity Interests in any
Person, Lender may, in its sole discretion, require that such Person becomes a Borrower hereunder. At Lender’s sole discretion
such Subsidiary shall execute and deliver to Lender: (i) an amendment to this Agreement adding such Subsidiary as Borrower, in form and
substance reasonably acceptable to Lender, (ii) a collateral pledge agreement (or amendment thereto), financing statements, stock or
membership certificates, as applicable, and other documents reasonably required by Lender, all in form and substance reasonably satisfactory
to Lender, pursuant to which such Subsidiary shall secure its obligations under this Agreement by a first priority (subject to Permitted
Liens), perfected security interest in all assets of such Subsidiary, (iii) a good-standing certificate from the state in which such
Subsidiary is incorporated, organized or formed, and any and all states in which such Subsidiary is authorized to do business, (iv) a
certificate executed by the Secretary or other officer of such Subsidiary in form and substance acceptable to Lender and (v) a legal
opinion covering such Subsidiary and substantially in form and substance as delivered hereunder.


 


7.05
Guarantees. Borrower shall not become or be liable, directly or indirectly, primarily or secondarily, matured or contingent, in
any manner, whether as guarantor, surety, accommodation maker or otherwise, for the existing or future indebtedness of any kind of any
other Person, except (i) endorsements in the ordinary course of business of negotiable instruments for deposit or collection and (ii)
as set forth on Schedule 5.11.


 


7.06
Investments. Without Lender’s prior written consent, Borrower shall not make any Investments, except:


 


(a)
Investments consisting of cash or Cash Equivalents;


 


(b)
Investments consisting of Accounts and promissory notes created, acquired or made and trade credit, in each case, extended in the ordinary
course of business and payable or dischargeable in accordance with customary trade terms;


 


(c)
Investments consisting of Equity Interests, obligations, securities or other property received in settlement of Accounts from financially
troubled Obligors in the ordinary course of business;


 




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(d)
Investments existing as of the Closing Date and set forth on Schedule 7.06 hereto;


 


(e)
Guarantees permitted by Section 7.05 hereof;


 


(f)
Investments in any other Borrower; and


 


(g)
Investments permitted under Section 7.04.


 


7.07
Loans to Other Persons. Borrower shall not make or be permitted to have outstanding any loans, advances or extensions of credit
to any Person (other than as permitted under Section 7.06(f)). Borrower may make intercompany loans to other Borrower pursuant to Section
7.06(f), but such loans shall be documented prior to the disbursement of the loan proceeds with such promissory notes, loan agreements
and collateral documents as Lender may require in its sole discretion.


 


7.08
Subordinated Debt Payments. Borrower shall not make any payment in contravention of the terms and conditions of the Subordination
Agreements.


 


7.09
Distributions. Borrower may pay or make any form of Distribution to its Members, Affiliates, officers or directors or their respective
successors or assigns, and Borrower may declare to pay or make any form of Distribution, including Tax Distributions, unless an Event
of Default shall have occurred and remain outstanding or such Distribution would cause an Event of Default. Notwithstanding the foregoing,
upon an Event of Default, Borrower may still make all necessary Tax Distributions.


 


7.10
No Change in Business. Borrower shall not engage in any line of business which has not been disclosed in writing to Lender prior
to the date hereof without Lender’s prior written consent.


 


7.11
Indebtedness. Without Lender’s prior written consent, Borrower shall not create, incur, assume or suffer to exist any Indebtedness
except (subject to compliance with Section 6.06 hereof):


 


(a)
Indebtedness to Lender;


 


(b)
Indebtedness specifically identified on Schedule 7.12 hereto and any refinancings, refundings, renewals, or extensions thereof
which (i) do not increase the principal amount thereof, (ii) do not shorten the maturity thereof and (iii) contains terms relating to
collateral (if any) and subordination (if any) that are not less favorable in any material respect to Borrower or Lender than the terms
of any agreement or instrument governing the Indebtedness being so refinanced, refunded, renewed or extended;


 


(c)
Indebtedness constituting purchase money indebtedness for the financing of capital expenditures so long as such Indebtedness is secured
only by a security interest in the equipment being financed and so long as such Indebtedness does not cause, or result in, a Default
or an Event of Default;


 


(d)
Unfunded pension or employment benefit plan obligations not constituting an Event of Default;


 


(e)
Indebtedness resulting from judgments not otherwise constituting an Event of Default;


 


(f)
contingent indemnification obligations arising in the ordinary course of business from the honoring by a bank of checks or similar instruments
against insufficient funds;


 


(g)
Indebtedness incurred in the ordinary course of business in respect of performance bonds, bid bonds, customs and appeal bonds, performance
and completion guarantees and similar obligations related thereto;


 


(h)
Short-term unsecured trade credit incurred in the ordinary course of business;


 




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(i)
Other unsecured indebtedness not exceeding Fifty Thousand and No/100 Dollars ($50,000.00) in aggregate principal amount outstanding;


 


(j)
Indebtedness constituting Subordinated Debt;


 


(k)
Indebtedness to another Borrower;


 


(l)
Indebtedness and similar obligations under the CareTrust Master Lease and Omega Master Lease;


 


(m)
Indebtedness incurred in the ordinary course of business to finance insurance premiums; and


 


(n)
Without duplication of Indebtedness permitted under clauses (a) – (m) hereof, Indebtedness permitted under Sections 7.06 and 7.07
hereof.


 


7.12
Management Agreement. Without the prior written approval of Lender, which shall not be unreasonably withheld, delayed or conditioned,
Borrower shall not change the Manager of any Healthcare Facility or enter into, terminate, cancel or amend in any manner that is adverse
to the rights of Lender hereunder any management agreement for any Healthcare Facility, including but not limited to the Management Agreement.


 


7.13
Limitations on Corporate Guarantor. No Corporate Guarantor shall, directly or indirectly, engage in any business or conduct any
activity, other than activities incidental to (i) its ownership of the Equity Interests of Borrower or any other Corporate Guarantor,
(ii) the maintenance of its corporate existence, (iii) legal, tax, accounting and general administrative matters, and (iv) the transactions
contemplated by the Master Lease and entering into and performing its obligations under the Management Agreement and the Loan Documents.
No Corporate Guarantor shall have any direct Subsidiaries other than Borrower or any other Corporate Guarantor.


 


7.14
Fiscal Year; Jurisdiction of Organization. Borrower will not (a) change its name or fiscal year without prior written notice to
Lender or (b) change its jurisdiction of organization without Lender’s prior written consent.


 


7.15
IRS Form 8821. No Borrower shall alter, amend, restate or otherwise modify, or withdraw, terminate or re-file, the IRS Form 8821
required to be delivered pursuant to Section 4.01 hereof.


 


7.16
Payroll Accounts. No Borrower shall maintain a greater balance in any payroll account than is necessary to support such Borrower’s
current payroll and payroll for one additional payroll cycle (bi-monthly or weekly as applicable).


 


Article
8



DEFAULT


 


8.01
Events of Default. Each of the following events shall constitute an event of default (“Event of Default”), and Lender
shall thereupon have the option to declare the Obligations immediately due and payable, all without demand, notice, presentment or protest
or further action of any kind (it also being understood that the occurrence of any of the events or conditions set forth in Sections
8.01(i), (j), (k), (l), (q), or (u) shall automatically cause an acceleration of the Obligations without notice or demand):


 


(a)
Payments. If any Loan Party fails to make any payment of principal, interest, or any other charges, fees, Expenses or other monetary
obligations owing to Lender, arising out of or incurred in connection with this Agreement on the date when such payment is due and payable;


 






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(b)
Particular Covenant Defaults. If any Loan Party fails to perform, comply with or observe any covenant or undertaking contained
in (i) Section 6.01, Section 6.02, Section 6.05, Section 6.06, Section 6.07, Section 6.09, Section 6.25 or Article 7 of this Agreement
or (ii) this Agreement not otherwise described in this Section 8.01(b)(i) or any other subsection of Section 8.01, and such failure continues
for a period of ten (10) Business Days after the earlier of such Loan Party becoming aware of such failure or such Loan Party receiving
written notice of such failure;


 


(c)
Financial Information. If any statement, report, financial statement or certificate made or delivered by any Loan Party, or any
of its officers, employees or agents, to Lender is not true and correct, in all material respects, when made;


 


(d)
Uninsured Loss. If there shall occur any uninsured damage to or loss, theft, or destruction in excess of Fifty Thousand and No/100
Dollars ($50,000.00) with respect to any portion of Borrower’s Property;


 


(e)
Warranties or Representations. If any warranty, representation or other statement by or on behalf of any Loan Party contained
in or pursuant to this Agreement or any Loan Document, is false, erroneous or misleading in any material respect (unless already qualified
by materiality) when made;


 


(f)
Agreements with Others. If any Loan Party shall default beyond any grace period under any agreement with respect to any Indebtedness
(including Subordinated Debt) and (i) such default consists of the failure to pay any principal, premium or interest with respect to
such Indebtedness or (ii) such default consists of the failure to perform any covenant or agreement with respect to such Indebtedness,
if the effect of such default is to cause or permit such Indebtedness to become due prior to its maturity date or prior to its regularly
scheduled date of payment;


 


(g)
Other Agreements with Lender.


 


(i)
The occurrence of any default or event of default (after giving effect to any applicable grace or cure period) under any of the other
Loan Documents;


 


(ii)
Any of the other Loan Documents ceases to be valid, binding and enforceable in accordance with its terms; and


 


(iii)
Any Loan Party breaches or violates the terms of, or if a default or an event of default (after giving effect to any cure periods), occurs
under, any other existing or future agreement (related or unrelated) between such Loan Party and Lender, including any lease agreements
or finance agreements with any affiliate of Lender;


 


(h)
Judgments. If any final judgment for the payment of money in excess of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00)
shall be rendered against any Loan Party which is not fully and unconditionally covered by insurance (such coverage to be acknowledged
by a financially sound and reputable insurance company in writing) or an appeal bond, or for which such Person has not established a
cash or cash equivalent reserve in the amount of such judgment each in the form, substance and amount satisfactory to Lender in its sole
discretion;


 


(i)
Assignment for Benefit of Creditors, etc. If any Loan Party calls a meeting of the creditors of such Loan Party for the purpose
of compromising such Loan Party’s debts or obligations, or makes or proposes an assignment for the benefit of creditors generally,
offers a composition or extension to creditors, or makes or sends notice of an intended bulk sale of any business or assets now or hereafter
owned or conducted by such Loan Party which might materially and adversely affect such Person;


 




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(j)
Bankruptcy, Dissolution, etc. Upon the commencement of any action for the bankruptcy, insolvency, receivership, assignment for
the benefit of creditors, dissolution or liquidation, or similar proceeding under any federal or state law, of any Loan Party or the
commencement of any proceeding to avoid any transaction entered into by such Loan Party or the commencement of any case or proceeding
for reorganization or liquidation of such Loan Party’s, or any of its debts under the United States Bankruptcy Code or any other
state or federal law now or hereafter enacted for the relief of debtors, whether instituted by or against such Loan Party; provided,
however, that such Loan Party shall have ten (10) days to contest such proceeding and thirty (30) days from the commencement of the action
to obtain the dismissal or discharge of involuntary proceedings filed against such Loan Party, it being understood that during such ten
(10) and thirty (30) day periods, respectively, Lender shall be not obligated to make Advances hereunder and Lender may seek adequate
protection, stay relief, right to setoff or recoupment, and/or any other right or remedy deemed necessary in the sole discretion of Lender
in any bankruptcy proceeding;


 


(k)
Receiver. Upon the appointment of a receiver, liquidator, custodian, trustee or similar official or fiduciary for any Loan Party
or for any of such Loan Party’s Property;


 


(l)
Execution Process, Seizure, etc. The issuance of any execution or distraint process against Borrower or any Property of Borrower
is seized by any governmental entity, federal, state or local;


 


(m)
Termination of Business. If Borrower ceases any material portion of its business operations as presently conducted or Borrower
fails to generally meet its debts as those debts mature;


 


(n)
Plans, etc. Any Loan Party or any ERISA Affiliate shall (i) engage in any “prohibited transaction” as defined in ERISA,
(ii) incur any “accumulated funding deficiency” as defined in ERISA, (iii) incur any “reportable event” as defined
in ERISA, (iv) cause an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan or Multiemployer Plan, (v) become subject to the assertion of a material claim (other than routine
claims for benefits) against any “plan” (as defined in ERISA) or against such Loan Party or such ERISA Affiliate in connection
with any such plan, (vi) receive from the Internal Revenue Service notice of the failure of any “plan” (as defined in ERISA)
intended to be qualified under Section 401(a) of the Code to qualify under such section or (vii) the imposition of any liability under
Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon such Loan Party or ERISA Affiliate,
and with respect to this Section 8.01(n), such event or condition either (i) remains uncured for a period of thirty (30) days from the
date of occurrence or (ii) could, in Lender’s reasonable business judgment, subject such Loan Party to any tax, penalty or other
liability having a Material Adverse Effect;


 


(o)
Investigations. Any indication or evidence received by Lender that reasonably leads it to believe Borrower may have directly or
indirectly been engaged in any type of activity which would be reasonably likely to result in the forfeiture of any Property of Borrower
to any governmental entity, federal, state or local;


 


(p)
Material Adverse Events.


 


(i)
Lender reasonably determines that an event which adversely affects the collectibility of a material portion of the Accounts has occurred;
or


 


(ii)
a Material Adverse Effect has occurred;


 


(q)
Lockbox Instructions. Any instruction or agreement regarding the Commercial Lockbox or the Government Lockbox or the bank accounts
related thereto, including the Depository Agreements and any standing transfer instructions, is amended or terminated without the written
consent of Lender, or if Borrower fails, within one (1) Business Day of receipt, to forward Collections it receives with respect to any
Accounts to the Commercial Lockbox or the Government Lockbox, as the case may be;


 


(r)
Modification of Subordinated Debt. Borrower shall modify the terms or provisions of any agreement, instrument or other document
relating to any Subordinated Debt without Lender’s prior written consent, unless such modification is permitted by the applicable
Subordination Agreement;


 


(s)
Change of Control; Change in Management. There occurs any Change of Control, or Borrower fails to perform, comply with or observe
the covenants and undertakings contained in Section 6.23 hereof;


 




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(t)
Restraint on Business. Borrower shall be prohibited or otherwise restrained from conducting the business theretofore conducted
by it at any of the Healthcare Facilities in any manner that has or could reasonably be expected to have or result in a Material Adverse
Effect by virtue of any determination, ruling, decision, decree, ordinance or order of any court of competent jurisdiction, Governmental
Authority or municipality;


 


(u)
Healthcare Laws. If any of the following shall occur:


 


(i)
any material Healthcare Permit of Borrower shall be revoked, fail to be renewed, suspended or otherwise terminated,


 


(ii)
Borrower shall fail to be eligible for any reason to participate in any Government Reimbursement Program or to accept assignments or
rights to reimbursement thereunder,


 


(iii)
any Obligor shall terminate, revoke or fail to renew Borrower’s right to participate in any Third Party Payor Program that provides
reimbursement for Medical Services and such termination, revocation or failure to renew has or could reasonably be expected to have a
Material Adverse Effect,


 


(iv)
Borrower shall enter into a settlement or other agreement with CMS or any other Governmental Authority (other than settlement agreements
for civil monetary penalties in an amount less than $200,000 for a single occurrence and $500,000 in the aggregate during any calendar
year resulting from a survey process in the ordinary course of Borrower’s business); provided, however, that Lender,
in Lender’s discretion, may agree to provide a written waiver of the application of Section 8.03(b) upon Borrower’s breach
of this Section 8.01(u)(iv), which waiver by Lender will not preclude other or further exercise thereof by Lender or the exercise of
any other right by Lender, in each case, to the extent provided under this Agreement,


 


(v)
Borrower shall (i) be in “Material Breach” under (and as defined in) the Corporate Integrity Agreement; or (ii) experience
a “Reportable Event” or receive a “Demand Letter” under (and as defined in) the Corporate Integrity Agreement;


 


(vi)
any Healthcare Facility has been closed or ordered to be closed by any Governmental Authority;


 


(vii)
Borrower or any owner, officer, director, partner, agent or managing employee of such Borrower (i) shall have been found guilty of an
act of fraud or been convicted of a felony crime that relates to any Medical Services or Third Party Payor Program or (ii) shall have
been specifically identified as the target of a criminal investigation or indicted for a felony crime relating to any Medical Services
or Third Party Payor Program;


 


(v)
Master Lease. The occurrence of any Event of Default (as defined therein) under either the CareTrust Master Lease or the Omega
Master Lease;


 


(w)
Exclusions. Borrower has: (A) had a civil monetary penalty assessed against it pursuant to 42 U.S.C. § 1320a-7a or is the
subject of a proceeding seeking to assess such penalty; (B) been excluded from participation in a Federal Health Care Program (as that
term is defined in 42 U.S.C. § 1320a-7b) or is the subject of a proceeding seeking to assess such penalty, or has been “suspended”,
excluded or “debarred” from any Government Reimbursement Program or from selling products to the U.S. government or its agencies
pursuant to the Federal Acquisition Regulation, relating to debarment and suspension applicable to Federal government agencies generally
(48 C.F.R. Subpart 8.4), or other Applicable Laws or regulations; (C) been convicted (as that term is defined in 42 C.F.R. § 1001.2)
of any of those offenses described in 42 U.S.C. § 1320a-7b or 18 U.S.C. § § 669, 1035, 1347, 1518 or is the subject of
a proceeding seeking to assess such penalty; (D) been involved or named in a U.S. Attorney complaint made or any other action taken pursuant
to the False Claims Act under 31 U.S.C. § § 3729-3731 or qui tam action brought pursuant to 31 U.S.C. § 3729 et seq.;
(E) been made a party to any other action by any Governmental Authority that may result in suspension, exclusion, or debarment from any
Government Reimbursement Program or that may prohibit it from selling products to any governmental or other purchaser pursuant to any
law; or (F) been or become subject to any Federal, state, local governmental or private payor civil or criminal investigations or inquiries,
proceedings, validation review, program integrity review or statement of charges involving and/or related to its compliance with Healthcare
Laws or involving or threatening its participation in Medicare, Medicaid or other Third Party Payor Programs or its billing practices
with respect thereto; or


 




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(x)
Healthcare Proceeding. The occurrence of any Healthcare Proceeding that could reasonably be expected to result in a Material Adverse
Effect or negatively impact any Healthcare Facility.


 


8.02
Cure. Nothing contained in this Agreement or the Loan Documents shall be deemed to compel Lender to accept a cure of any Event
of Default hereunder after the expiration of the cure periods provided herein, if any.


 


8.03
Rights and Remedies on Default.


 


(a)
In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents, or otherwise
available at law or in equity, upon or at any time after the occurrence and during the continuance of a Default or an Event of Default,
Lender may, in its discretion, charge Borrower the Default Rate on all then outstanding or thereafter incurred Obligations and/or withhold
or cease making Advances under the Credit Facility, unless such Default or Event of Default is cured to Lender’s satisfaction or
waived in accordance herewith.


 


(b)
In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents (each
of which is also then exercisable by Lender), Lender may, in its discretion, upon or at any time after the occurrence and during the
continuance of an Event of Default, terminate the Credit Facility (it also being understood that the occurrence of any of the events
or conditions set forth in Sections 8.01(i), (j), (k), (l), (q), or (u) hereof shall automatically cause a termination of the Credit
Facility without notice or demand).


 


(c)
Lender will be entitled to take any and all actions to enforce its claims against Borrower to recover the balance of the Indebtedness
then due, including being entitled to pursue all remedies provided for by law, equity, or otherwise, and to exercise the warrants of
attorney to confess judgment against Borrower contained in this Agreement or the other Loan Documents;


 


(d)
Lender will be entitled to take any and all actions permitted by this Agreement and the other Loan Documents, and/or by law, equity or
otherwise;


 


(e)
In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents (each
of which is also then exercisable by Lender), Lender may, upon or at any time after the occurrence of an Event of Default, while it exists,
exercise all rights under the UCC and any other applicable law or in equity, by contract or otherwise, and under all Loan Documents permitted
to be exercised after the occurrence of an Event of Default, including the following rights and remedies (which list is given by way
of example and is not intended to be an exhaustive list of all such rights and remedies):


 


(i)
Subject to all applicable laws and regulations governing payment of Medicare and Medicaid receivables, the right to “take possession”
of or foreclose on the Collateral (including removing from any premises at which same may be located any and all books and records, computers,
electronic media and software programs associated with any Collateral (including electronic records, contracts and signatures pertaining
thereto), documents, instruments and files, and any receptacles or cabinets containing same, relating to the Accounts) by any available
judicial procedure, or without judicial process, and to enter any premises at which any Collateral may be located for the purpose of
taking possession of or removing the same, and notify all Obligors of Lender’s security interest in the Collateral and require
payment under the Accounts to be made directly to Lender and Lender may, in its own name or in the name of Borrower, exercise all rights
of a secured party with respect to the Collateral and collect, sue for and receive payment on all Accounts, and settle, compromise and
adjust the same on any terms as may be satisfactory to Lender, in its sole and absolute discretion for any reason or without reason,
and Lender may do all of the foregoing with or without judicial process (including notifying the United States postal authorities to
redirect mail addressed to Borrower to an address designated by Lender) and may use, at Borrower’s expense, such of Borrower’s
personnel, supplies or space as may be necessary to manage such Accounts;


 




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(ii)
The right to require Borrower, at Borrower’s expense, to assemble all or any part of the Collateral and make it available to Lender
at any place designated by Lender, which may include providing Lender or any entity designated by Lender with access (either remote or
direct) to Borrower’s information system for purposes of monitoring, posting payments and rebilling Accounts to the extent deemed
desirable by Lender in its sole discretion;


 


(iii)
The right to reduce or modify the Revolving Loan Commitment, Borrowing Base or any portion thereof or the Advance Rates or to modify
the terms and conditions upon which Lender may be willing to consider making Advances under the Credit Facility or to take additional
reserves in the Borrowing Base for any reason; or


 


(iv)
The right to sell, assign and deliver all or any part of the Collateral and any returned, reclaimed or repossessed merchandise, in the
name of Borrower or Lender, or in the name of such other party as Lender may designate, with or without advertisement, at public or private
sale, for cash, on credit or otherwise, at Lender’s sole discretion, with or without warranties or representations (including warranties
of title, possession, quiet enjoyment and the like), and upon such other terms and conditions as Lender in its sole discretion may deem
advisable, and Lender may bid or become a purchaser at any such sale, free from any right of redemption, which right is hereby expressly
waived by Borrower. If any Inventory and Equipment shall require rebuilding, repairing, maintenance or preparation, Lender shall have
the right, at its sole discretion, to do such of the aforesaid as is necessary, for the purpose of putting the Inventory and Equipment
in such saleable form as Lender shall deem appropriate.


 


(f)
Borrower hereby agrees that a notice received by it at least ten (10) calendar days before the time of any intended public sale or of
the time after which any private sale or other disposition of the Collateral is to be made, shall be deemed to be reasonable notice of
such sale or other disposition. If permitted by applicable law, any Collateral which threatens to speedily decline in value or which
is sold on a recognized market may be sold immediately by Lender without prior notice to Borrower. Borrower covenants and agrees not
to interfere with or impose any obstacle to Lender’s exercise of its rights and remedies with respect to the Collateral.


 


(g)
Lender is hereby granted, until the Obligations are paid in full and all obligations of Lender hereunder are terminated, a worldwide
license to use, after the occurrence and during the continuance of an Event of Default and without charge, all of Borrower’s labels,
trademarks (and associated goodwill), copyrights, patents and advertising matter, and any other form of Intellectual Property, as they
pertain to the Collateral, in completing production of, advertising for sale and selling of any Collateral.


 


8.04
[Reserved].


 


8.05
Nature of Remedies. All rights and remedies granted Lender hereunder and under the Loan Documents, or otherwise available at law
or in equity, shall be deemed concurrent and cumulative, and not alternative remedies, and Lender may proceed with any number of remedies
at the same time until all Obligations are satisfied in full. The exercise of any one right or remedy shall not be deemed a waiver or
release of any other right or remedy, and Lender, upon or at any time after the occurrence of an Event of Default, may proceed against
Borrower at any time, under any agreement, with any available remedy and in any order.


 


8.06
Set-Off. Upon the occurrence of an Event of Default, Lender and/or any Affiliate of Lender and/or participant with Lender shall
have and be deemed to have, without notice to Borrower, the immediate right of set-off and may apply the funds or other amounts or Property
thus set off against any of Borrower’s Obligations hereunder.


 


8.07
Application of Proceeds. The net cash proceeds resulting from Lender’s exercise of any of Lender’s rights pursuant
to this Article 8 (after deducting all Expenses relating thereto) shall be applied by Lender to the payment of the Obligations as set
forth in Section 2.08(b) hereof, and Borrower shall remain liable to Lender for any deficiencies, and Lender in turn agrees to remit
to Borrower or its successors or assigns, any surplus resulting therefrom.


 




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Article
9



MISCELLANEOUS


 


9.01
GOVERNING LAW. THIS AGREEMENT, AND ALL MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS, AND SHALL
BE CONSTRUED WITHOUT THE AID OF ANY CANON, CUSTOM OR RULE OF LAW REQUIRING CONSTRUCTION AGAINST THE DRAFTSMAN.


 


9.02
Integrated Agreement. This Agreement, the Revolving Note and the other Loan Documents shall be construed as integrated and complementary
of each other, and as augmenting and not restricting Lender’s rights and remedies. If, after applying the foregoing, an inconsistency
still exists, the provisions of this Agreement shall constitute an amendment thereto and shall control.


 


9.03
Waiver and Indemnity.


 


(a)
No omission or delay by Lender in exercising any right or power under this Agreement or any related agreements and documents will impair
such right or power or be construed to be a waiver of any Default or Event of Default or an acquiescence therein, and any single or partial
exercise of any such right or power will not preclude other or further exercise thereof or the exercise of any other right, and as to
Borrower no waiver will be valid unless in writing and signed by Lender and then only to the extent specified.


 


(b)
Borrower releases and shall indemnify, defend and hold harmless Lender, and its respective officers, directors, employees, attorneys
and agents (each, an “Indemnified Party”), of and from any claims, demands, liabilities, obligations, judgments, injuries,
losses, damages and costs and expenses (including Expenses and reasonable legal fees) of any kind or nature, which at any time may be
imposed on, incurred by, or asserted against any Indemnified Party (including any such assertion by or on behalf of Borrower), resulting
from (i) acts or conduct of Borrower under, pursuant or related to this Agreement and the other Loan Documents, (ii) as a result of Lender’s
exercise of (or failure to exercise) any of Lender’s rights and remedies hereunder, including (A) any sale or transfer of the Collateral,
(B) the preservation, repair, maintenance, preparation for sale or securing of any Collateral, and (C) the defense of Lender’s
interests in the Collateral (including the defense of claims brought by Borrower as a debtor-in-possession or otherwise, any secured
or unsecured creditors of Borrower, or any trustee or receiver in bankruptcy); (iii) as a result of any environmental pollution, hazardous
material or environmental clean-up and Borrower’s off-site disposal practices; (iv) in connection with any regulatory investigation
or proceeding by any regulatory authority or agency having jurisdiction over Borrower; (v) otherwise relating to or arising out of the
transactions contemplated by this Agreement and the other Loan Documents, or any action taken (or failure to act) by any Indemnified
Party with respect thereto; (vi) Borrower’s breach, or alleged breach, or violation of any representation, warranty, covenant or
undertaking contained in this Agreement or the other Loan Documents, and (vii) Borrower’s failure, or alleged failure, to comply
with any or all laws, statutes, ordinances, governmental rules, regulations or standards, whether federal, state or local, or court or
administrative orders or decrees (including environmental laws, etc.), and all costs, expenses, fines, penalties or other damages resulting
therefrom, unless resulting from acts or conduct of Lender constituting willful misconduct or gross negligence, as finally determined
by a court of competent jurisdiction. The provisions of this Section 9.03(b) shall survive the termination of this Agreement and the
payment in full and satisfaction of the Obligations.


 


(c)
Lender shall not be liable for, and Borrower hereby agrees that Lender’s liability in the event of a breach by Lender of this Agreement
shall be limited to Borrower’s direct damages suffered and shall not extend to, any consequential or incidental damages. In the
event Borrower brings suit against Lender in connection with the transactions contemplated hereunder, and Lender is found not to be liable,
Borrower shall indemnify and hold Lender harmless from all costs and expenses, including attorneys’ fees, incurred by Lender in
connection with such suit.


 




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9.04
Time. Whenever Borrower shall be required to make any payment, or perform any act, on a day which is not a Business Day, such
payment may be made, or such act may be performed, on the next succeeding Business Day. Time is of the essence in Borrower’s performance
under all provisions of this Agreement and all related agreements and documents.


 


9.05
Expenses of Lender.


 


(a)
At Closing and from time to time thereafter, Borrower will pay all reasonable expenses of Lender on demand (including search costs, audit
fees, appraisal fees, and the fees and expenses of legal counsel for Lender) relating to this Agreement and the other Loan Documents,
including expenses incurred in the analysis, negotiation, preparation, closing, administration and enforcement of this Agreement and
the other Loan Documents, the enforcement, protection and defense of the rights of Lender in and to the Revolving Loans and Collateral
or otherwise hereunder, and any reasonable expenses relating to extensions, amendments, waivers or consents pursuant to the provisions
hereof, or any related agreements and documents or relating to agreements with other creditors, or termination of this Agreement (collectively,
the “Expenses”). Any Expenses not paid upon demand by Lender shall bear interest at the rate of interest then applicable
to the Revolving Loans.


 


(b)
In addition, if at any time following the date of this Agreement, Borrower effects any changes that result in a change in the format
or sequence of Borrower’s data, Borrower shall pay to Lender its reasonable charges for implementing such changes as are necessary
to accommodate the changes in the format or sequence of the data such that Lender’s accounts receivable monitoring system is capable
of importing such data, including an hourly fee of One Hundred Fifty and No/100 Dollars ($150.00).


 


9.06
Confidentiality. Except as provided in Section 9.19 hereof or to the extent required by law or applicable regulations, Borrower
and Lender agree to maintain the confidentiality of this Agreement and not to disclose the contents hereof or provide a copy hereof to
any third party, except (i) accountants, lawyers and financial advisers of the parties who are informed of and agree to be bound by this
Section 9.06, and (ii) that copies hereof may be provided to any assignee or participant (or potential assignee or participant) of Lender’s
interests herein, any investors or prospective investors who acquire or may acquire Securities backed by Accounts and any parties that
facilitate the issuance of such Securities, including rating agencies, guarantors and insurers. Lender agrees to maintain the confidentiality
of patient information obtained as a result of its interests in, or duties with respect to, the Accounts and as otherwise may be required
pursuant to the Business Associate Agreement.


 


9.07
Notices.


 


(a)
Any notices or consents required or permitted by this Agreement shall be in writing and shall be deemed given if delivered in Person
or if sent by facsimile, by scanned image or by nationally recognized overnight courier, or via first-class, certified or registered
mail, postage prepaid, to the address of such party set forth on the signature pages hereof, unless such address is changed by written
notice hereunder;


 


(b)
Any notice sent by Lender or Borrower by any of the above methods shall be deemed to be given when so received; and


 


(c)
Lender shall be fully entitled to rely upon any facsimile or scanned image transmission or other writing purported to be sent by any
Authorized Officer (whether requesting an Advance or otherwise) as being genuine and authorized.


 


9.08
Brokerage. Borrower represents that Borrower has not committed Lender to the payment of any brokerage fee, commission or charge
in connection with this transaction. If any such claim is made on Lender by any broker, finder or agent or other Person, Borrower hereby
indemnifies, defends and saves Lender harmless against such claim and further will defend, with counsel satisfactory to Lender, any action
or actions to recover on such claim, at Borrower’s own cost and expense, including Lender’s reasonable counsel fees. Borrower
further agrees that until any such claim or demand is adjudicated in Lender’s favor, the amount demanded shall be deemed an Obligation
of Borrower under this Agreement.


 




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9.09
Headings. The headings of any paragraph or section of this Agreement are for convenience only and shall not be used to interpret
any provision of this Agreement.


 


9.10
Survival. All warranties, representations, and covenants made by Borrower herein, or in any of the other Loan Documents or on
any certificate, document or other instrument delivered by it or on its behalf under this Agreement, shall be considered to have been
relied upon by Lender, and shall survive the delivery to Lender of the Revolving Note, regardless of any investigation made by Lender
or on its behalf. All statements in any such certificate or other instrument prepared and/or delivered for the benefit of Lender shall
constitute warranties and representations by Borrower hereunder. Except as otherwise expressly provided herein, all covenants made by
Borrower hereunder or under any other agreement Loan Document shall be deemed continuing until all Obligations are satisfied in full.


 


9.11
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of
the parties. Borrower may not transfer, assign or delegate any of its duties or obligations hereunder.


 


9.12
Duplicate Originals. Two or more duplicate originals of this Agreement may be signed by the parties, each of which shall be an
original but all of which together shall constitute one and the same instrument. This Agreement may be executed in counterparts, all
of which counterparts taken together shall constitute one completed fully executed document.


 


9.13
Modification. No modification hereof or any agreement referred to herein shall be binding or enforceable unless in writing and
signed by Borrower and Lender.


 


9.14
Signatories. Each individual signatory hereto represents and warrants that he is duly authorized to execute this Agreement on
behalf of his principal and that he executes the Agreement in such capacity and not as a party.


 


9.15
Third Parties. No rights are intended to be created hereunder, or under any other Loan Document for the benefit of any third-party
donee, creditor or incidental beneficiary of Borrower. Nothing contained in this Agreement shall be construed as a delegation to Lender
of Borrower’s duty of performance, including Borrower’s duties under any Account or contract with any other Person.


 


9.16
Waivers.


 


(a)
Borrower hereby waives diligence, demand, presentment, protest and any notices thereof as well as notices of nonpayment, intent to accelerate
and acceleration. Borrower hereby irrevocably, unconditionally and fully subordinates in favor of Lender any and all rights it may have
at any time (whether arising directly or indirectly, by operation of law or contract) to assert or receive payment on any claim against
it, on account of payments made under this Agreement, including any and all rights of subrogation, reimbursement, exoneration, contribution
or indemnity. Borrower waives any event or circumstances that might constitute a legal or equitable defense of, or discharge of, Borrower.
Furthermore, Borrower agrees that if Borrower makes any payment on the Obligations or Lender enforces its Liens or Lender exercises its
right of set-off, and such payment or the proceeds of such enforcement or set-off is subsequently invalidated, declared to be fraudulent
or preferential, set aside, or required to be repaid by anyone, in whole or in part, including without limitation in connection with
any bankruptcy, insolvency or similar proceeding instituted by or against Borrower, then, to the extent of such recovery, the Obligations
or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived and continued in full
force and effect as if such payment had not been made or such enforcement or set-off had not occurred. Borrower consents and agrees that
Lender shall be under no obligation to marshal any assets or Collateral in favor of Borrower or against or in payment of any or all of
the Obligations.


 


(b)
Borrower hereby consents and agrees that Lender, at any time or from time to time in its discretion, may: (i) settle, compromise or grant
releases for liabilities of Borrower, and/or any other Person or Persons liable for any Obligations, (ii) exchange, release, surrender,
sell, subordinate or compromise any Collateral of any party now or hereafter securing any of the Obligations in accordance with the terms
hereof, and (iii) following and during the continuance of an Event of Default, apply any and all payments received at any time against
the Obligations in any order as Lender may determine; all of the foregoing in such manner and upon such terms as Lender may see fit,
without notice to or further consent from Borrower, who hereby agrees and shall remain bound upon this Agreement notwithstanding any
such action on Lender’s part.


 




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(c)
The liability of Borrower hereunder is absolute and unconditional and shall not be reduced, impaired or affected in any way by reason
of (i) any failure to obtain, retain or preserve, or the lack of prior enforcement of, any rights against any Person or Persons (including
other Borrower), or in any Property, (ii) the invalidity or unenforceability of any Obligations or rights in any Collateral, (iii) any
delay in making demand upon Borrower or any delay in enforcing, or any failure to enforce, any rights against Borrower or in any Collateral
even if such rights are thereby lost, (iv) any failure, neglect or omission to obtain, perfect or retain any Lien upon, protect, exercise
rights against, or realize on, any Property of Borrower, or any other party securing the Obligations, (v) the existence or nonexistence
of any defenses which may be available to the other Borrower with respect to the Obligations, or (vi) the commencement of any bankruptcy,
reorganization, liquidation, dissolution or receivership proceeding or case filed by or against Borrower.


 


(d)
Borrower subordinates all present and future indebtedness owing by any other Borrower to such Borrower to the obligations at any time
owing by such other Borrower to Lender under this Agreement and the other Loan Documents. Borrower assigns all such indebtedness to Lender
as security for the Obligations. Borrower agrees to make no claim on such indebtedness until all obligations of any other party under
this Agreement and the other Loan Documents have been fully discharged. Borrower further agrees not to assign all or any part of such
indebtedness without the prior written consent of Lender.


 


9.17
CONSENT TO JURISDICTION. BORROWER AND LENDER HEREBY IRREVOCABLY CONSENT TO THE NONEXCLUSIVE JURISDICTION OF, AND VENUE IN, ANY
STATE OR FEDERAL COURT LOCATED IN THE COMMONWEALTH OF PENNSYLVANIA IN ANY AND ALL ACTIONS AND PROCEEDINGS WHETHER ARISING HEREUNDER OR
UNDER ANY OTHER AGREEMENT OR UNDERTAKING. BORROWER WAIVES ANY OBJECTION TO IMPROPER VENUE AND FORUM NON CONVENIENS TO PROCEEDINGS IN
ANY SUCH COURT OR COURTS AND ALL RIGHTS TO TRANSFER FOR ANY REASON. BORROWER IRREVOCABLY AGREES TO SERVICE OF PROCESS BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED TO THE ADDRESS OF THE APPROPRIATE PARTY SET FORTH HEREIN.


 


9.18
WAIVER OF JURY TRIAL. EACH OF BORROWER AND LENDER HEREBY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A JURY TRIAL IN CONNECTION WITH
ANY LITIGATION COMMENCED BY OR AGAINST LENDER WITH RESPECT TO RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO OR UNDER THE LOAN DOCUMENTS,
WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.


 


9.19
Publication. Borrower grants Lender the right to publish and/or advertise information to the effect that this transaction has
closed, which information may include, without limit, (a) the names of Borrower and Lender, (b) the size of the transaction and (c) those
items of information commonly included within a “tombstone advertisement” of the type customarily published in financial
or business periodicals.


 


9.20
Discharge of Taxes, Borrower’s Obligations, Etc. Lender, in its sole discretion, shall have the right at any time, and from
time to time, with prior notice to Borrower, if Borrower fails to do so five (5) Business Days after requested in writing to do so by
Lender, to: (a) pay for the performance of any of Borrower’s Obligations hereunder or under any other Loan Document, and (b) discharge
taxes or Liens, at any time levied or placed on any of Borrower’s Property in violation of this Agreement unless Borrower is in
good faith with due diligence by appropriate proceedings contesting such taxes or Liens and has established appropriate reserves therefor
under GAAP. Expenses and advances shall be deemed Advances hereunder and shall bear interest at the highest rate applied to the Revolving
Loans until reimbursed to Lender. Such payments and advances made by Lender shall not be construed as a waiver by Lender of an Event
of Default under this Agreement.


 




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9.21
Injunctive Relief. The parties acknowledge and agree that, in the event of a breach or threatened breach of any party’s
obligations hereunder, the other party may have no adequate remedy in money damages and, accordingly, shall be entitled to an injunction
(including a temporary restraining order, preliminary injunction, writ of attachment, or order compelling an audit) against such breach
or threatened breach, including maintaining the cash management and collection procedure described herein. However, no specification
in this Agreement of a specific legal or equitable remedy shall be construed as a waiver or prohibition against any other legal or equitable
remedies in the event of a breach or threatened breach of any provision of this Agreement.


 


9.22
Assignment or Syndication by Lender. Lender may, at its sole discretion, assign in whole or in part any and all of its rights
and/or obligations herein to any other Person, including but not limited to any assignment by Lender to an Affiliate of Lender or any
assignment in part or in whole of its rights herein to another party as collateral security for Lender’s obligation(s) to such
other party (a “Collateral Assignment”).


 


9.23
Severability. If any provision hereof or of any other Loan Document is held to be illegal or unenforceable, such provision shall
be fully severable, and the remaining provisions of the applicable agreement shall remain in full force and effect and shall not be affected
by such provision’s severance. Furthermore, in lieu of any such provision, there shall be added automatically as a part of the
applicable agreement a legal and enforceable provision as similar in terms to the severed provision as may be possible.


 


9.24
Authority. Without limiting the powers granted to Lender in Section 8.03 hereof, if an Event of Default shall have occurred and
remain outstanding, Borrower hereby authorizes Lender, or any Person or agent which Lender may designate, at Borrower’s cost and
expense, to exercise all the following powers, which authority shall be irrevocable until the termination of this Agreement and the full
and final payment and satisfaction of the Obligations to: (a) receive, take, endorse, sign, assign and deliver, all in the name of Lender
or Borrower, any and all checks, notes, drafts and other documents or instruments relating to the Collateral; (b) receive, open and dispose
of all mail addressed to Borrower and to notify postal authorities to change the address for delivery thereof to such address as Lender
may designate; (c) request from customers indebted on Accounts at any time, in the name of Lender, information concerning the amounts
owing on the Accounts; (d) request from customers indebted on Accounts at any time, in the name of Borrower any certified public accountant
designated by Lender or any other designee of Lender, information concerning the amounts owing on the Accounts; (e) transmit to customers
indebted on Accounts notice of Lender’s interest therein and to notify customers indebted on Accounts to make payment directly
to Lender for Borrower’s account (subject to all applicable laws and regulations governing payment of Medicare and Medicaid receivables);
and/or (f) take or bring, in the name of Lender or Borrower all steps, actions, suits or proceedings deemed by Lender necessary or desirable
to enforce or effect collection of the Accounts.


 


9.25
Usury Limit. In no event shall Borrower, upon demand by Lender for payment of any indebtedness relating hereto, by acceleration
of the maturity thereof, or otherwise, be obligated to pay interest and fees in excess of the amount permitted by law. Regardless of
any provision herein or in any agreement made in connection herewith, Lender shall never be entitled to receive, charge or apply, as
interest on any indebtedness relating hereto, any amount in excess of the maximum amount of interest permissible under Applicable Law.
If Lender ever receives, collects or applies any such excess, it shall be deemed a partial repayment of principal and treated as such.
If as a result, the entire principal amount of the Obligations is paid in full, any remaining excess shall be refunded to Borrower. This
Section 9.25 shall control every other provision of this Agreement, the other Loan Documents and any other agreement made in connection
herewith.


 


9.26
Termination. Except as otherwise provided in Article 8 hereof, Lender may terminate this Agreement only as of the Maturity Date.
Borrower may terminate this Agreement at any time prior to the Maturity Date only in accordance with the terms of Section 2.03(c). A
termination by any Borrower shall be deemed to be a termination by all Borrowers.


 




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Article
10



SPECIAL INTER-BORROWER PROVISIONS


 


10.01
Certain Borrower Acknowledgments and Agreements.


 


(a)
Borrower acknowledges that it will enjoy significant benefits from the business conducted by Borrower because of, inter alia,
Borrower’s ability to bargain with other Persons including its ability to receive the Credit Facility on favorable terms granted
by this Agreement and other Loan Documents which would not have been available to Borrower acting alone. Borrower has determined that
it is in Borrower’s best interest to procure the Credit Facility which Borrower may utilize directly and which receive the credit
support of Borrower as contemplated by this Agreement and the other Loan Documents.


 


(b)
Lender has advised Borrower that it is unwilling to enter into this Agreement and the other Loan Documents and make available the Credit
Facility extended hereby to Borrower unless Borrower agrees, among other things, to be jointly and severally liable for the due and proper
payment of the Obligations of Borrower under this Agreement and other Loan Documents. Borrower has determined that it is in its best
interest and in pursuit of its purposes that it so induce Lender to extend credit pursuant to this Agreement and the other documents
executed in connection herewith (i) because of the desirability to Borrower of the Credit Facility, the interest rates and the modes
of borrowing available hereunder, (ii) because Borrower may engage in transactions jointly with Borrower and (iii) because Borrower may
require, from time to time, access to funds under this Agreement for the purposes herein set forth.


 


(c)
Borrower has determined that it has and, after giving effect to the transactions contemplated by this Agreement and the other Loan Documents
(including the inter-Borrower arrangement set forth in this Section 10.01) will have, assets having a fair saleable value in excess of
the amount required to pay its probable liability on its existing debts as they fall due for payment and that the sum of its debts is
not and will not then be greater than all of its Property at a fair valuation, that Borrower has, and will have, access to adequate capital
for the conduct of its business and the ability to pay its debts from time to time incurred in connection therewith as such debts mature
and that the value of the benefits to be derived by Borrower from the access to funds under this Agreement (including the inter-Borrower
arrangement set forth in this Section 10.01) is reasonably equivalent to the obligations undertaken pursuant hereto.


 


(d)
Borrower Representative (on behalf of Borrower) shall maintain records specifying (i) all Obligations incurred by Borrower, (ii) the
date of such incurrence, (iii) the date and amount of any payments made in respect of such Obligations and (iv) all inter-Borrower obligations
pursuant to this Section 10.01. Borrower Representative shall make copies of such records available to Lender, upon request.


 


10.02
Maximum Amount of Joint and Several Liability. Notwithstanding any provisions of this Agreement to the contrary, it is the intent
of the parties hereto that the primary and secondary nature of the liabilities of Borrower, and the security interests granted by Borrower
to secure the Obligations directly incurred by Borrower, not constitute a fraudulent conveyance under Section 548 of Chapter 11 of Title
II of the United States Code (11 U.S.C. § 101 et seq.), as amended, or a fraudulent conveyance or fraudulent transfer under the
applicable provisions of any fraudulent conveyance, fraudulent transfer or similar law of any state, nation or other governmental unit,
as in effect from time to time or otherwise be rendered invalid or unenforceable due to the nature of the joint and several liability.
Accordingly, Lender and Borrower agree that if the Obligations of Borrower, or any security interests granted by Borrower securing the
Obligations would, but for the application of this sentence, constitute a fraudulent conveyance or fraudulent transfer under Applicable
Law, or would otherwise render Borrower’s Obligations or the security interests granted herein invalid or unenforceable, the Obligations
of Borrower hereunder, as well as the security interests securing such Obligations, shall be valid and enforceable only to the maximum
extent that would not cause such Obligations or security interests to constitute a fraudulent conveyance or fraudulent transfer under
Applicable Law or otherwise result in such invalidity or unenforceability; provided, however, that Borrower’s Obligations shall
be presumptively valid and enforceable to their fullest extent in accordance with the terms hereof or thereof, as if this Section 10.02
were not a part of this Agreement.


 


10.03
Authorization of Borrower Representative by Borrower.


 


(a)
Each Borrower hereby irrevocably authorizes Borrower Representative to give notices, make requests, make payments, receive payments and
notices, give receipts and execute agreements, make agreements or take any other action whatever on behalf of Borrower under and with
respect to any Loan Document, and Borrower shall be bound thereby. This authorization is coupled with an interest and shall be irrevocable,
and Lender may rely on any notice, request, information supplied by Borrower Representative, every document executed by Borrower Representative,
every agreement made by Borrower Representative or other action taken by Borrower Representative in respect of Borrower or any thereof
as if the same were supplied, made or taken by Borrower. Without limiting the generality of the foregoing, the failure of Borrower to
join in the execution of any writing in connection herewith shall not, unless the context clearly requires, relieve Borrower from obligations
in respect of such writing.


 




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(b)
Borrower acknowledges that the credit provided hereunder is on terms more favorable than Borrower acting alone would receive and that
Borrower benefits directly and indirectly from all Advances hereunder. Borrower shall be jointly and severally liable for all Obligations,
regardless of, inter alia, which Borrower requested (or received the proceeds of) a particular Advance.


 


10.04
Joint and Several Liability. The Revolving Loans made to Borrower shall be deemed jointly funded to, and received by, Borrower.
Borrower jointly and severally agrees to pay, and shall be joint and severally liable for the payment and performance of, all Obligations
directly incurred by Borrower, regardless of whether Borrower actually receives the proceeds of the indebtedness governed hereby or the
benefit of any other extensions of credit hereunder. Borrower acknowledges and agrees that the joint and several liability of Borrower
is provided as an inducement to Lender to provide loans and other financial accommodations to Borrower, and that each such Revolving
Loan or other financial accommodation shall be deemed to have been done or extended by Lender in consideration of, and in reliance upon,
the joint and several liability of Borrower. The joint and several liability of Borrower hereunder is absolute, unconditional and continuing,
regardless of the validity or enforceability of any of the Obligations, or the fact that a security interest or Lien in any Collateral
may not be enforceable or subject to equities or defenses or prior claims in favor of others, or may be invalid or defective in any way
and for any reason. Borrower hereby waives: (a) all notices to which Borrower may be entitled as a co-obligor with respect to the Obligations,
including notice of (i) acceptance of this Agreement, (ii) the making of Revolving Loans or other financial accommodations under this
Agreement, or the creation or existence of the Obligations, and (iii) presentment, demand, protest, notice of protest and notice of non-payment;
and (b) all defenses based on (i) any modification (or series of modifications) of this Agreement, the other Loan Documents, that may
create a substituted contract, or that may fundamentally alter the risks imposed on Borrower hereunder, (ii) the release of Borrower
from its duties this Agreement, the other Loan Documents, or the extension of the time of performance of under Borrower’s duties
hereunder or thereunder, (iii) the taking, releasing, impairment or abandonment of any Collateral, or the settlement, release or compromise
of the Obligations or Borrower’s liabilities with respect to all or any portion of the Obligations, or (iv) any other act (or any
failure to act) that fundamentally alters the risks imposed on Borrower by virtue of its joint and several liability hereunder. It is
the intent of Borrower by this paragraph to waive any and all suretyship defenses available to Borrower with respect to the Obligations,
whether or not specifically enumerated above. Borrower acknowledges that the credit provided hereunder is on terms more favorable than
Borrower acting alone would receive and that Borrower benefits directly and indirectly from the Revolving Loans made hereunder. Borrower
shall be jointly and severally liable for all Obligations regardless of, inter alia, whether Borrower received proceeds of the
Revolving Loans.


 


Article
11



GUARANTY


 


11.01
The Guaranty. Each Corporate Guarantor hereby guarantees to Lender, as primary obligor and not as surety, the prompt payment and
performance of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise)
strictly in accordance with the terms thereof. Each Corporate Guarantor hereby further agrees that if any of the Obligations are not
paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise), each Corporate Guarantor
will promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal
of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment,
by acceleration or otherwise) in accordance with the terms of such extension or renewal (collectively, the “Guaranteed Obligations”).


 


Subject
to Section 11.06 and the last sentence of this Section 11.01 below, each Corporate Guarantor hereby jointly and severally
agrees, in furtherance of the foregoing and not in limitation of any other right which Lender may have at law or in equity against any
Guarantor by virtue hereof, that upon the failure of any Guaranteed Obligations to be paid when and as the same shall become due, whether
at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but
for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), each Corporate Guarantor will, upon demand pay,
or cause to be paid, in cash, to Lender, an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then
due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for any Borrower becoming
the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed
against such Borrower for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to Lender as aforesaid.


 




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Notwithstanding
any provision to the contrary contained herein or in any other of the Loan Documents, the Guaranteed Obligations of each Corporate Guarantor
under this Agreement and the other Loan Documents shall be limited to an aggregate amount equal to the largest amount that would not
render such obligations subject to avoidance under the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.


 


11.02
Obligations Unconditional.


 


(a) The Guaranteed Obligations of each Corporate Guarantor under Section 11.01 are joint and several and absolute and unconditional,
irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents or any other agreement or
instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of
the Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 11.02
that the obligations of each Corporate Guarantor hereunder shall be absolute and unconditional under any and all circumstances. Each
Corporate Guarantor agrees that such Corporate Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution
against any Borrower or any other Guarantor for amounts paid under this Article 11 until the Maturity Date. Without limiting the
generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following
shall not alter or impair the liability of any Corporate Guarantor hereunder, which shall remain joint and several and absolute and unconditional
as described above, at any time or from time to time, without notice to any Corporate Guarantor, the time for any performance of or compliance
with any of the Obligations shall be extended, or such performance or compliance shall be waived;


 


(b)
any of the acts mentioned in any of the provisions of any of the Loan Documents or any other agreement or instrument referred to in the
Loan Documents shall be done or omitted;


 


(c)
the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in
any respect, or any right under any of the Loan Documents or any other agreement or instrument referred to in the Loan Documents shall
be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole
or in part or otherwise dealt with;


 


(d)
any Lien granted to, or in favor of, Lender as security for any of the Obligations shall fail to attach or be perfected;


 


(e)
any of the Obligations shall be determined to be void or voidable (including for the benefit of any creditor of any Corporate Guarantor)
or shall be subordinated to the claims of any Person (including any creditor of any Corporate Guarantor); or


 


(f)
any other action or inaction shall occur that might constitute a surety defense (other than payment in full of the Obligations).


 


11.03
Reinstatement. The Guaranteed Obligations of any Corporate Guarantor under this Article 11 shall be automatically reinstated if
and to the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is rescinded or must be
otherwise restored by any holder of any of the Obligations, whether as a result of any Proceedings in bankruptcy or reorganization or
otherwise, and each Corporate Guarantor agrees that it will indemnify Lender on demand for all reasonable costs and expenses (including
fees and expenses of counsel) incurred by Lender in connection with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.


 




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11.04
Waivers. Each Corporate Guarantor hereby waives, to the fullest extent permitted by law, for the benefit of Lender: (a) any right
to require Lender, as a condition of payment or performance by such Corporate Guarantor, to (i) proceed against any Borrower, any other
guarantor (including any other Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed against or exhaust any security
held from any Borrower, any such other guarantor or any other Person, (iii) proceed against or have resort to any balance of any deposit
account or credit on the books of Lender in favor of any Borrower or any other Person, or (iv) pursue any other remedy in the power of
Lender whatsoever; (b) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of any Borrower
or any other Guarantor including any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed
Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of any Borrower or any other
Guarantor from any cause other than payment in full of the Guaranteed Obligations; (c) any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of
the principal or any law, rule, regulation, or order of any jurisdiction affecting any term of the Guaranteed Obligations; (d) any defense
based upon Lender’s errors or omissions in the administration of the Guaranteed Obligations, except behavior which amounts to bad
faith; (e) (i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof and
any legal or equitable discharge of such Corporate Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations
affecting such Corporate Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to set offs, recoupments and
counterclaims, and (iv) promptness, diligence and any requirement that Lender protect, secure, perfect or insure any security interest
or Lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices
of any action or inaction, including acceptance hereof, notices of default under any Loan Document, notices of any renewal, extension
or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to any Borrower and
notices of any of the matters referred to in Section 11.02 and any right to consent to any thereof; and (g) any defenses or benefits
that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with
the terms hereof (other than payment in full of the Obligations). Each Corporate Guarantor agrees that such Corporate Guarantor shall
have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation to the extent permitted
by Section 11.02.


 


11.05
Remedies. Each Corporate Guarantor agrees that, to the fullest extent permitted by law, as between such Corporate Guarantor, on
the one hand, and Lender, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 8.3
(and shall be deemed to have become automatically due and payable in the circumstances provided in Section 8.03) for purposes of Section
11.01 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming
automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed
to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become
due and payable by each Corporate Guarantor for purposes of Section 11.01. Each Guarantor acknowledges and agrees that its Guaranteed
Obligations hereunder are secured in accordance with the terms of the Loan Documents and that Lender may exercise its remedies thereunder
in accordance with the terms thereof.


 




    	45



    	 



    

 


11.06
Contribution by Guarantors. All Corporate Guarantors desire to allocate among themselves (collectively, the “Contributing
Guarantors”), in a fair and equitable manner, their obligations arising under this Guaranty. Accordingly, in the event any payment
or distribution is made on any date by a Corporate Guarantor (a “Funding Guarantor”) under this Guaranty such that its Aggregate
Payments exceeds its Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution from each of the other Contributing
Guarantors in an amount sufficient to cause each Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such
date. “Fair Share” means, with respect to a Contributing Guarantor as of any date of determination, an amount equal to (a)
the ratio of (i) the Fair Share Contribution Amount with respect to such Contributing Guarantor to (ii) the aggregate of the Fair Share
Contribution Amounts with respect to all Contributing Guarantors multiplied by (b) the aggregate amount paid or distributed on or before
such date by all Funding Guarantors under this Guaranty in respect of the obligations Guaranteed. “Fair Share Contribution Amount”
means, with respect to a Contributing Guarantor as of any date of determination, the maximum aggregate amount of the obligations of such
Contributing Guarantor under this Guaranty that would not render its obligations hereunder or thereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of the Bankruptcy Code or any comparable applicable provisions of state law; provided, solely
for purposes of calculating the “Fair Share Contribution Amount” with respect to any Contributing Guarantor for purposes
of this Section 13.6, any assets or liabilities of such Contributing Guarantor arising by virtue of any rights to subrogation, reimbursement
or indemnification or any rights to or obligations of contribution hereunder shall not be considered as assets or liabilities of such
Contributing Guarantor. “Aggregate Payments” means, with respect to a Contributing Guarantor as of any date of determination,
an amount equal to (1) the aggregate amount of all payments and distributions made on or before such date by such Contributing Guarantor
in respect of this Guaranty (including in respect of this Section 11.06, minus (2) the aggregate amount of all payments received on or
before such date by such Contributing Guarantor from the other Contributing Guarantors as contributions under this Section 11.06. The
amounts payable as contributions hereunder shall be determined as of the date on which the related payment or distribution is made by
the applicable Funding Guarantor. The allocation among Contributing Guarantors of their obligations as set forth in this Section 11.06
shall not be construed in any way to limit the liability of any Contributing Guarantor hereunder. Each Corporate Guarantor is a third
party beneficiary to the contribution agreement set forth in this Section 11.06 and a right to receive any Fair Share Contribution Amount
shall be deemed an asset of the Corporate Guarantor entitled to such amount.


 


11.07
Guarantee of Payment; Continuing Guarantee. The guarantee in this Article 11 is an absolute and unconditional guaranty of payment
and not of collection, is a continuing and irrevocable guarantee, and shall apply to all Obligations whenever arising.


 


11.08
Subordination of Other Obligations. Any Indebtedness of Borrower or any Guarantor now or hereafter owing to any Guarantor (the
“Obligee Guarantor”) is hereby subordinated in right of payment to the Guaranteed Obligations, and any such indebtedness
collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust for Lender
and shall forthwith be paid over to Lender to be credited and applied against the Guaranteed Obligations but without affecting, impairing
or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.


 


[Remainder
of Page Intentionally Left Blank]


 




    	46



    	 



    

 


Signature Page to Credit Agreement (Trillium)

 


IN
WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first above written.


 


	BORROWERS
    AND CORPORATE GUARANTORS:

     

    Address
    for notices to Borrower:

     

    5115
    East SR 64

    Bradenton,
    LF 34208

    Attn:
    G. Shayne Bench

    Email:
    ShayneBench@TrilliumHCG.com

    Phone:
    941-539-5476

    Fax:
    941-751-2135

     
	TRILLIUM
    HEALTHCARE GROUP, LLC

    FAIRWAY
    HEALTHCARE PROPERTIES, LLC

    TRILLIUM
    HEALTHCARE CONSULTING, LLC

    IANE
    PROPERTIES I, LLC

    IANE
    PROPERTIES II, LLC 

    GREENSIDE
    HEALTHCARE PROPERTIES, LLC 

    FAIR
    OAKS RCF, LLC

    CREST
    HAVEN CARE CENTER, LLC

    PREMIER
    ESTATES 503, LLC

    ELMWOOD
    CARE CENTER, LLC

    ELMWOOD
    PE, LLC

    PREMIER
    ESTATES 509, LLC

    PREMIER
    ESTATES 507, LLC

    PREMIER
    ESTATES 505, LLC

    ROCK
    RAPIDS CARE CENTER, LLC

    ROCK
    RAPIDS PE, LLC

    PREMIER
    ESTATES 511, LLC

    PREMIER
    ESTATES 502, LLC

    PREMIER
    ESTATES 504, LLC

    PREMIER
    ESTATES 506, LLC

    NEW
    HAMPTON CARE CENTER, LLC

    PREMIER
    ESTATES OF MUSCATINE, LLC

    PREMIER
    ESTATES 508, LLC

    PREMIER
    ESTATES OF TOLEDO, LLC

    SUNNY
    KNOLL CARE CENTER, LLC

    PREMIER
    ESTATES 510, LLC

    NORTH
    PLATTE CARE CENTER, LLC

    NORTH
    PLATTE PE, LLC

    PREMIER
    ESTATES OF CRETE, LLC

    PREMIER
    ESTATES OF FREMONT, LLC

    PREMIER
    ESTATES OF KENESAW, LLC

    PREMIER
    ESTATES OF PAWNEE, LLC

    PREMIER
    ESTATES OF PIERCE, LLC

    PREMIER
    ESTATES OF WEST POINT, LLC

    REHABILITATION
    CENTER AT PARK PLACE, LLC

    PREMIER
    ESTATES OF DUBLIN, LLC

    PREMIER
    ESTATES 520, LLC

    PREMIER
    ESTATES 521, LLC

    PREMIER
    ESTATES 522, LLC

    PREMIER
    ESTATES 523, LLC

    PREMIER
    ESTATES 524, LLC

    PREMIER
    ESTATES 525, LLC

    PREMIER
    ESTATES 526, LLC



 


	 	By:	/s/
G. Shayne Bench
	 	Name:
    	G.
    Shayne Bench
	 	Title:
    	Treasurer


 


	 	As
    Treasurer of each of the above entities and, in such capacity, intending by this signature to legally bind each of the above entities


 







    	 



     


    

 





Signature
Page to Credit Agreement (Trillium)


 


	LENDER:	GEMINO
    HEALTHCARE FINANCE, LLC, a Delaware limited liability company  
	 	 	 
	Address
    for notices to Lender:	 	 
	 	 	 
	One
    International Plaza, Suite 220	By:	/s/
    Linda Kasian
	Philadelphia,
    PA 19113	Name:	Linda
    Kasian
	Thomas
    Schneider, CEO	Title:	Underwriter
	P:
    (610) 870-5403	 	 
	F:
    (610) 870-5401	 	 
	Email:
    tom.schneider@gemino.com	 	 



  




    	 



     


    

 


ANNEX
I


 


DEFINITIONS


 


“Acceptance
Notice” shall have the meaning set forth in Section 6.26 hereof.


 


“Account(s)”
means (a) all of Borrower’s present and future accounts, payment intangibles, instruments and chattel paper (including electronic
chattel paper) (all as defined in the UCC) and all other rights of Borrower to receive payments including the third-party reimbursable
portion of accounts receivable owing to Borrower arising out of the delivery by Borrower of medical, surgical, diagnostic, treatment
or other professional or medical or healthcare-related services and/or the supply of goods related to any of such services (whether such
services are supplied by Borrower or a third party), including all health-care-insurance-receivables (as defined in the UCC) and all
other rights to reimbursement under any agreements with an Obligor, (b) all accounts, general intangibles, rights, remedies, guarantees,
supporting obligations, letter-of-credit rights and security interests in respect of the foregoing, and all rights of enforcement and
collection, all books and records evidencing or related to the foregoing, and all rights under this Agreement in respect of the foregoing,
(c) all information and data compiled or derived by Borrower in respect of such accounts receivable (other than any such information
and data subject to legal restrictions of patient confidentiality), and (d) all proceeds of any of the foregoing.


 


“Accounts
Detail File” has the meaning set forth in Section 2.02(d) hereof.


 


“Advance(s)”
means any monies advanced or credit extended, including the Revolving Loans to or for the benefit of Borrower by Lender, under the Credit
Facility.


 


“Advance
Rate” means eighty-five percent (85%) or such other percentage(s) resulting from an adjustment pursuant to Section 2.01(e)
hereof.


 


“Affiliate”
means with respect to any Person (the “Specified Person”), (a) any Person which directly or indirectly controls, or
is controlled by, or is under common control with, the Specified Person, and (b) any partner, director or officer (or, in the case of
a Person which is not a corporation, any individual having analogous powers) of the Specified Person or of a Person who is an Affiliate
of the Specified Person within the meaning of the preceding clause (a). For purposes of the preceding sentence, “control”
of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, or direct or indirect ownership (beneficially or of record) of, or direct or indirect power to vote, five percent (5%)
or more of the Equity Interests of such Person. Notwithstanding the foregoing, Lender shall not be deemed to be an Affiliate of Borrower
or any Affiliate thereof.


 


“Annualized
Basis” means, with respect to any measurement period, dividing EBITDAR (and any non-balance sheet items) for such period by
the number of months in such period and multiplying the result by 12.


 


“Applicable
Law” shall mean, as to Borrower or its assets, any law, ordinance, policy, manual provision, administrative guidance, statute,
rule or regulation, or any determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding
upon Borrower or any of its assets, or to which Borrower or any of its assets is subject.


 


“Authorized
Officer” means any officer, member or partner of Borrower authorized by specific resolution of such Borrower to request Revolving
Loans as set forth in the incumbency certificate referred to in Section 4.01(c) of this Agreement.


 


“Billed
Claim File” has the meaning set forth in Section 2.02(d)(ii) hereof.


 


“Billing
Date” means the last day of the month in which the goods or Medical Services were provided.


 


“Blocked
Account” means each bank account that is established by Borrower pursuant to this Agreement and subject to a Deposit Account
Control Agreement.


 




    	 



     


    

 


“Borrower
Representative” shall mean Fairway Healthcare Properties, LLC, a Florida limited liability company.


 


“Borrowing
Base” means, at any date, an amount equal to the lesser of (a) the Revolving Loan Commitment, or (b) the product of (i) the
applicable Advance Rate then in effect, times (ii) the Estimated Net Value of all Eligible Accounts as of such date, minus (iii) an amount
equal to any reserves, minus (iv) unposted cash: provided, however, that the portion of the Borrowing Base, as of any date
of determination, attributable to Eligible Accounts of the Omega Tenants shall not exceed the calculation by Lender of the portion of
the Borrowing Base with respect to the Omega Tenants consistent with the terms and provisions of this Agreement.


 


“Borrowing
Base Certificate” has the meaning set forth in Section 2.02(a) hereof.


 


“Borrowing
Base Deficiency” means, as of any date, the amount, if any, by which (a) the aggregate amount of all Advances outstanding as
of such date exceeds (b) the Borrowing Base as of such date.


 


“Borrowing
Base Excess” means, as of any date, the amount, if any, by which (a) the Borrowing Base as of such date exceeds (b) the aggregate
amount of all Advances outstanding as of such date.


 


“Business
Associate Agreement” means that certain Business Associate Agreement between Borrower and Lender of even date herewith, as
the same may be modified, amended, restated or replaced from time to time.


 


“Business
Day” means any day other than a Saturday, Sunday or any day on which banking institutions in Philadelphia, Pennsylvania or
New York City, New York are permitted or required by law, executive order or governmental decree to remain closed or a day on which Lender
is closed for business.


 


“Capital
Lease” means, with respect to any Person, any lease of any property (whether real, Personal or mixed) by such Person as lessee
which would, in accordance with GAAP, be required to be accounted for as a capital lease on the balance sheet of such Person.


 


“CareTrust
Intercreditor Agreement” means that certain Intercreditor Agreement, dated as of the date hereof, by and among CareTrust Master
Landlord, Lender and each entity identified as “Tenant” party to the CareTrust Master Lease, as the same may be amended,
modified, restated or replaced.


 


“CareTrust
Master Landlord” means CTR Partnership, L.P., a Delaware limited partnership.


 


“CareTrust
Master Lease” means that certain Master Lease dated as of May 12, 2015 by and among CareTrust Master Landlord and each entity
identified therein as “Tenant”, as the same may be amended, modified, restated or replaced to the extent not prohibited hereunder.


 


“Cash
Control Period” means the period of time commencing upon Lender providing notice of its election to impose a Cash Control Period
pursuant to the terms and conditions of a Deposit Account Control Agreement following the occurrence and continuance of an Event of Default.
For purposes of this Agreement, a Cash Control Period shall be deemed to remain outstanding from the initial date of any Cash Control
Period until the earlier of (a) the cure of such Event of Default, (b) the waiver of such Event of Default by Lender, or (c) the Maturity
Date.


 


“Cash
Equivalents” means, as at any date:


 


(a)
securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided
that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than twelve (12) months
from the date of acquisition;


 


(b)
dollar denominated time deposits and certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of recognized standing
having capital and surplus in excess of $500,000,000.00 or (iii) any bank whose short-term commercial paper rating from S&P is at
least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved
Institution”), in each case with maturities of not more than two hundred seventy (270) days from the date of acquisition;


 




    	 



     


    

 


(c)
commercial paper and variable or fixed rate notes issued by any Approved Institution (or by the parent company thereof) or any variable
rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or
the equivalent thereof) or better by Moody’s and maturing within six (6) months of the date of acquisition;


 


(d)
repurchase agreements entered into by any Person with a bank or trust company (including any of the Lenders) or recognized securities
dealer having capital and surplus in excess of $500,000,000.00 for direct obligations issued by or fully guaranteed by the United States
in which such Person shall have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase
thereof, a fair market value of at least one hundred percent (100%) of the amount of the repurchase obligations;


 


(e)
debt obligations issued by any domestic corporation or any domestic government instrumentality, in each case rated A-1 (or the equivalent
thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing within six (6) months of the
date of acquisition; and


 


(f)
Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment
Company Act of 1940 which are administered by reputable financial institutions having capital of at least $500,000,000.00 and the portfolios
of which are limited to Investments of the character described in the foregoing clauses (a) through (e).


 


“CHAMPVA”
means, collectively, the Civilian Health and Medical Program of the Department of Veterans Affairs, and all laws, rules, regulations,
manuals, orders, guidelines or requirements (whether or not having the force of law) pertaining to such program, in each case as the
same may be amended, supplemented or otherwise modified from time to time.


 


“Change
of Control” means, at any time: (i) Balmoral Castle Investments, LLC and Bucuti Investments, LLC shall cease to beneficially
own, directly or indirectly, (a) at least one hundred percent (100%) of the Equity Interests and a majority of the voting control of
Trillium Healthcare Group, LLC or (b) Equity Interests having a majority of the ordinary voting power or a contractual right to elect
a majority of the board of managers of Trillium Healthcare Group, LLC; or (ii) any Corporate Guarantor shall cease to beneficially own,
directly or indirectly, one hundred percent (100%), on a fully diluted basis, of the economic and voting interests in the Equity Interests
of any Borrower as in effect on the Closing Date.


 


“Closing”
has the meaning set forth in Section 4.03 hereof.


 


“Closing
Date” has the meaning set forth in Section 4.03 hereof.


 


“CMS”
means the Centers for Medicare and Medicaid Services of the United States Department of Health and Human Services and any successor thereof
and any predecessor thereof, including the United States Health Care Financing Administration.


 


“Code”
means the Internal Revenue Code of 1986, as amended from time to time.


 


“Collateral”
has the meaning set forth in Section 3.01 hereof.


 


“Collateral
Assignment” has the meaning set forth in Section 9.22 hereof.


 


“Collateral
Monitoring Fee” has the meaning set forth in Section 2.03(e) hereof.


 


“Collection
Account” has the meaning set forth in Section 2.07(a) hereof.


 


“Collections”
means, with respect to any Account, all cash collections on such Account.


 




    	 



     


    

 


“Commercial
Lockbox” means a lockbox in the name of Lender (or a nominee of Lender) and maintained at the Lockbox Bank, or such other bank
as is acceptable to Lender, to which Collections on all Accounts, other than Government Accounts, are sent.


 


“Commitment
Fee” has the meaning set forth in Section 2.09 hereof.


 


“Concentration
Limits” means the various financial tests, expressed as percentages of the then current ENV of all Eligible Accounts, described
on Schedule 1 hereto as in effect from time to time.


 


“Contract”
means an agreement by which an Obligor is obligated to pay for services rendered to patients of Borrower.


 


“Controlled
Group” means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under
common control which, together with Borrower, are treated as a single employer under Section 414 of the Code.


 


“Corporate
Guarantor” means the individual and collective reference to Trillium Healthcare Group, LLC, Fairway Healthcare Properties,
LLC, Trillium Healthcare Consulting, LLC, Iane Properties I, LLC, Iane Properties II, LLC and Greenside Healthcare Properties, LLC, each
a Florida limited liability company.


 


“Credit
Facility” has the meaning set forth in Section 2.01(a) hereof.


 


“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.


 


“Default”
means an event which with the passage of time, giving of notice or both, would become an Event of Default.


 


“Default
Rate” means three percent (3%) above the Interest Rate otherwise applicable on the Revolving Loans.


 


“Defaulted
Account” means an Account as to which (a) the initial ENV has not been received in full as Collections within one hundred fifty
(150) days of the Billing Date, or (b) Lender reasonably deems uncollectible because of the bankruptcy or insolvency of the Obligor or
any other reason.


 


“Deposit
Account Control Agreement” means a customary control agreement among a Loan Party, a depository institution, and Lender, which
agreement is in a form reasonably acceptable to Lender and which provides Lender with “control” (as such term is used in
Article 9 of the UCC) over the deposit account(s) described therein, as the same may be amended, modified, extended, restated, replaced,
or supplemented from time to time.


 


“Depository
Agreement(s)” means those certain Depository Agreements entered into in connection with this Agreement among Borrower, Lender
and the Lockbox Bank, relating to the Commercial Lockbox and the Government Lockbox, as applicable.


 


“Disposition”
means, the sale, transfer, license, lease or other disposition (whether in one transaction or in a series of transactions, and including
any sale and leaseback transaction and any sale, transfer, license or other disposition) of a Person’s property (including, without
limitation, any Equity Interests) owned by such Person by such Person (or the granting of any option or other right to do any of the
foregoing), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable
or any rights and claims associated therewith.


 






    	 



     


    

 


“Distribution”
means (a) any dividends (cash or otherwise) or other distributions on any Equity Interests of Borrower; (b) the redemption, repurchase
or acquisition of such Equity Interest or of warrants, rights or other options to purchase such Equity Interest; and (c) loans made to
any Members, officers, directors and/or Affiliates of Borrower.


 


“Download
Date” has the meaning set forth in Section 2.02(d) hereof.


 


“EBITDA”
means, for any period of Borrower, the sum of (i) Net Income of Borrower for such period plus (ii) amounts deducted in the calculation
of such Net Income for (A) Interest Expense, (B) charges against income for foreign, federal, state and local taxes and (C) depreciation
and amortization, all determined on a consolidated basis for Borrower and their Subsidiaries in accordance with GAAP.


 


“EBITDAR”
means, for any period of Borrower, EBITDA, plus rent expense deducted in the calculation of Net Income, all determined on a consolidated
basis for Borrower and its Subsidiaries in accordance with GAAP.


 


“Eligible
Account” means an Account of Borrower:


 


(a)
which is a liability of an Obligor which is (i) a commercial insurance company acceptable to Lender, organized under the laws of any
jurisdiction in the United States, having its principal office in the United States, other than those listed on Schedule 1.01
hereto as ineligible, (ii) a Blue Cross/Blue Shield Plan other than those listed on Schedule 1.01 hereto as ineligible, (iii)
Medicare or Medicaid, (iv) an HMO, a PPO, or an institutional Obligor acceptable to Lender or (v) any other type of Obligor, not included
in the categories of Obligors listed in the foregoing clauses (i) - (iv), organized under the laws of any jurisdiction in the United
States, having its principal office in the United States, and listed on Schedule 1.01 hereto as an eligible Obligor,


 


(b)
the Obligor of which is not an Affiliate of Borrower;


 


(c)
the Obligor of which has received a letter substantially in the form of Exhibit 4.02(c) (in the case of all Accounts other than
Government Accounts), or a letter substantially in the form of Exhibit 4.02(d) (in the case of all Government Accounts);


 


(d)
in an amount not less than $5.00 nor more than $25,000.00, denominated and payable in United States Dollars;


 


(e)
as to which the representations and warranties of Section 5.21 hereof are true;


 


(f)
which (i) does not arise from the delivery of cosmetic surgery services, (ii) is not a workers’ compensation claim, (iii) does
not arise from any services delivered for injury sustained in a motor vehicle accident (unless the Obligor on such Account is a type
of Obligor permitted pursuant to clause (a) of this definition) and (iv) is not an Individual Payor Account;


 


(g)
which is not outstanding more than one hundred fifty (150) days past the Billing Date;


 


(h)
to the extent such Account is Medicaid Pending, it is not outstanding more than thirty (30) days past the date the corresponding services
and/or goods were provided;


 


(i)
the Obligor on which does not have fifty percent (50%) or more of its Accounts owing to Borrower constituting Defaulted Accounts;


 


(j)
to the extent such Account does not include late charges or finance charges;


 


(k)
which is not subject to a dispute between the Obligor and Borrower; and


 


(l)
which complies with such other criteria and requirements as may be specified from time to time by Lender in its reasonable discretion.


 




    	 



     


    

 


Without
limiting the generality of the foregoing provisions of this definition of Eligible Accounts, Lender shall have the right to establish
reserves from time to time to ensure that the portion of the Borrowing Base consisting of Eligible Accounts owing to Omega Tenants does
not exceed the then-applicable “WC Priority Amount” (as such term is defined in the Omega Intercreditor Agreement), and Lender
shall be under no obligation to make Revolving Loans with respect to the portion of the Borrowing Base consisting of Eligible Accounts
owing to the Omega Tenants in excess of the then-applicable “WC Priority Amount” (as such term is defined in the Omega Intercreditor
Agreement).


 


“Environmental
Laws” means, collectively, any local, state or federal law, rule or regulation or common-law duty pertaining to the environment,
natural resources, pollution, health (including any environmental clean-up statutes and all regulations adopted by any local, state,
federal or other governmental authority, and any statute, ordinance, code, order, decree, law rule or regulation all of which pertain
to or impose liability or standards of conduct concerning medical waste or medical products, equipment or supplies), safety or clean-up,
including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.), the
Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C.
§ 1251 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101 et seq.), the Clean Air Act (42
U.S.C. § 7401 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. § 136 et seq.), the
Emergency Planning and Community Right-to-Know Act (42 U.S.C. § 11001 et seq.), the Residential Lead-Based Paint Hazard Reduction
Act (42 U.S.C. § 4851 et seq.), any analogous state or local laws, any amendments thereto, and the regulations promulgated
pursuant to said laws, together with all amendments from time to time to any of the foregoing.


 


“Equity
Interests” means (a) in the case of a corporation, capital stock, (b) in the case of an association or business entity, any
and all shares, units, interests, participations, rights or other equivalents (however designated) of equity interests, (c) in the case
of a partnership, partnership interests (whether general or limited), (d) in the case of a limited liability company, membership interests
and (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person.


 


“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder
from time to time.


 


“ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with Borrower, is treated as a single employer
under Sections 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.


 


“Estimated
Net Value” or “ENV” means on any date of calculation with respect to any Account an amount equal to the
anticipated cash collections as calculated by Lender based upon the applicable Borrower’s historical cash collection and adjustments
history in a manner consistent with Lender’s underwriting procedures, except that if Lender determines that all Obligor payments
with respect to an Account have been made or if an Account has become a Defaulted Account, the ENV of such Account shall be zero.


 


“Event
of Default” has the meaning set forth in Section 8.01 hereof.


 


“Expenses”
has the meaning set forth in Section 9.05(a) hereof.


 


“Fixed
Charge Coverage Ratio” means the ratio of (a) EBITDAR, to (b) the sum of (i) the current portion of lease payments under Capital
Leases, plus (ii) the current portion of long-term debt (excluding Subordinated Debt), plus (iii) Tax Distributions paid, plus (iv) interest
expense paid in cash, plus (v) unfinanced capital expenditures, plus (vi) to the extent specifically permitted by Section 7.09 hereof,
Distributions paid, plus (vii) rent expense paid in cash, all as determined for Borrower on a consolidated basis, in accordance with
GAAP.


 


“Funded
Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included
as indebtedness or liabilities in accordance with GAAP:


 




    	 



     


    

 


(a)
all obligations for borrowed money, whether current or long-term (including the Obligations, the Subordinated Debt) and all obligations
of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;


 


(b)
all purchase money indebtedness;


 


(c)
the principal portion of all obligations under conditional sale or other title retention agreements relating to Property purchased by
such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course
of business);


 


(d)
the maximum amount available to be drawn under letters of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments;


 


(e)
all obligations in respect of the deferred purchase price of Property or services (other than trade accounts payable in the ordinary
course of business);


 


(f)
all indebtedness in respect of Capital Leases;


 


(g)
all Equity Interests providing for mandatory redemptions, guaranteed payments, sinking fund or like payments prior to the Maturity Date;


 


(h)
all Funded Indebtedness of the types specified in clauses (a) through (g) and in (i) of another Person secured by (or for which the holder
of such Funded Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds
of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed; and


 


(i)
all guarantees with respect to Funded Indebtedness of the types specified in clauses (a) through (h) above of another Person.


 


“Funding
Date” has the meaning set forth in Section 2.02(a) hereof.


 


“GAAP”
means generally accepted accounting principles, consistently applied.


 


“Government
Account Debtor” means the United States government or a political subdivision thereof, or any state, county or municipality
or department, agency or instrumentality thereof, that is responsible for payment of an Account under any Government Reimbursement Program,
or any agent, administrator, intermediary or carrier for the foregoing.


 


“Government
Accounts” means Accounts on which any federal or state governmental unit or any intermediary for federal or state governmental
unit is the Obligor.


 


“Government
Lockbox” means a lockbox and/or deposit account in the name of Borrower(s) maintained at the Lockbox Bank, or such other bank
as is acceptable to Lender, to which Collections on all Government Accounts are sent.


 


“Government
Reimbursement Program” means (a) Medicare, (b) Medicaid, (c) the Federal Employees Health Benefit Program under 5 U.S.C. §
§ 8902 et seq., (d) TRICARE, (e) CHAMPVA, or (f) if applicable within the context of this Agreement, any agent, administrator,
administrative contractor, intermediary or carrier for any of the foregoing.


 


“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, and any agency, department or
Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation
or other Person owned or controlled (through Equity Interest or capital ownership or otherwise) by any of the foregoing, whether domestic
or foreign.


 




    	 



     


    

 


“Guarantor”
means each of, and “Guarantors” means the collective reference to, the Individual Guarantors, the Corporate Guarantor
and any future guarantor pursuant to a Guaranty Agreement entered into with respect to all or any part of the Obligations.


 


“Guaranty
Agreement” shall mean each of, and “Guaranty Agreements” shall mean the collective reference to, any guaranty
agreement executed by any Guarantor in favor of Lender with respect to the Obligations, as the same may from time to time be amended,
restated, supplemented, or otherwise modified from time to time.


 


“Hazardous
Substances” means any substances defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous
or toxic substance or similar term, by any environmental statute, rule or regulation of any governmental entity presently in effect and
applicable to such real property.


 


“Healthcare
Facility” or “Healthcare Facilities”, as applicable, shall mean any one or more of the skilled nursing healthcare
facilities operated by Borrower, including the healthcare facilities described on Schedule 5.02 hereto.


 


“Healthcare
Laws” shall mean: (a) any and all federal, state and local fraud and abuse laws, including (i) the federal Anti-Kickback Statute
(42 U.S.C. § 1320a-7(b)), (ii) the Stark Law (42 U.S.C. § 1395nn and § 1395(q)), (iii) the civil False Claims Act (31
U.S.C. § 3729 et seq.), (iv) Sections 1320a-7 and 1320a-7a of Title 42 of the United States Code, and (v) the regulations
promulgated pursuant to such statutes; (b) the federal Food, Drug & Cosmetic Act (21 U.S.C. § § 301 et seq.) and
the regulations promulgated pursuant thereto; (c) the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191)
and the regulations promulgated pursuant thereto; (d) laws, rules and regulations governing Medicare and Medicaid; (e) the Medicare Prescription
Drug, Improvement, and Modernization Act of 2003 (Pub. L. No. 108-173) and the regulations promulgated pursuant thereto; (f) quality,
safety, life safety, and accreditation standards and requirements of all applicable state laws or regulatory bodies; (g) any Applicable
Law relating to Borrower’s ownership, management, or operation of a healthcare facility or business, or assets used in connection
therewith; (h) any Applicable Law relating to the billing or submission of claims, collection of accounts receivable, underwriting the
cost of, or provision of management or administrative services in connection with, any and all of the foregoing, by Borrower; and (i)
any and all other applicable healthcare laws, regulations, manual provisions, policies and administrative guidance, each of (a) through
(h) as may be amended from time to time.


 


“Healthcare
Permits” means any and all permits, licenses, authorizations, certificates, certificates of need, controlled substances registrations,
accreditations and plans of third-party accreditation agencies that are (a) necessary to enable Borrower to operate any Healthcare Facility
or provide Medical Services, participate in and receive payment under any Government Reimbursement Program or other Third Party Payor
Program, as applicable, or otherwise continue to conduct its business as it is conducted on the Closing Date, or (b) required under any
Healthcare Law.


 


“Healthcare
Proceeding” means any inquiries, investigations, probes, audits, hearings, litigation or proceedings (in each case, whether
civil, criminal, administrative or investigative) concerning any alleged or actual non-compliance by Borrower with any Healthcare Laws
or the requirements of any Healthcare Permit or Third Party Payor Program or the business affairs, practices, licensing or reimbursement
entitlements of Borrower or Healthcare Facility (including inquiries involving the Comprehensive Error Rate Testing and any inquiries,
investigations, probes, audits or procedures initiated by a Fiscal Intermediary/Medicare Administrator Contractor, a Medicaid Integrity
Contractor, a Recovery Audit Contractor, a Program Safeguard Contractor, a Zone Program Integrity Contractor, an Attorney General, the
Office of Inspector General, the Department of Justice or any similar governmental agencies or contractors for such agencies).


 


“HIPAA
Compliant” shall mean that Borrower is in material compliance with the Health Insurance Portability and Accountability Act
of 1996 (“HIPAA”) as amended by the Health Information Technology for Economic and Clinical Health (HITECH) Act and
the implementing regulations of same, and has adopted and implemented policies and procedures to strive to ensure compliance with and
has trained its personnel in the privacy standards and security standards promulgated pursuant to HIPAA.


 




    	 



     


    

 


“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities
in accordance with GAAP:


 


(a)
all Funded Indebtedness; and


 


(b)
all guarantees with respect to outstanding Indebtedness of the types specified in clause (a) above of any other Person.


 


“Indemnified
Party” has the meaning set forth in Section 9.03(b) hereof.


 


“Individual
Guarantors” mean the collective reference to Gregory Shayne Bench, Shari C. Bench, Richard T. Mason, Christine L. Mason, each
an individual resident of the State of Florida.


 


“Individual
Payor Account” means an Account owing by an Obligor who is the individual patient or Person who received the goods or services
rendered.


 


“Initial
Term” has the meaning set forth in Section 2.01(d) hereof.


 


“Intellectual
Property” means (a) all copyright rights, copyright applications, copyright registrations and like protections in each work
of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including
improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, trade names,
service marks, mask works, rights of use of any name, domain names, or any other similar rights, any applications therefor, whether registered
or not, and (b) the goodwill of the business or that portion of the business represented by the mark and of any Person connected with
and symbolized thereby, know-how, operating manuals, trade secret rights, clinical and non-clinical data, and rights to unpatented inventions.


 


“Interest
Expense” means, for any period of Borrower, the interest expense of Borrower for such period payable in connection with the
Funded Indebtedness of Borrower (including all computed interest on Capital Leases).


 


“Interest
Rate” has the meaning set forth in Section 2.03(a) hereof.


 


“Investment”
means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other
acquisition of Equity Interests of another Person, (b) the purchase or other acquisition of all or substantially all of the assets or
a line of business or division of another Person, or (c) a loan, advance or capital contribution to, guarantee or assumption of debt
of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership
or joint venture interest in such other Person. For purposes of determining covenant compliance, the amount of any Investment shall be
the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.


 


“LIBOR
Rate” means an annual rate equal to, as a reference rate, the greater of (i) the annual rate reported as the London Interbank
Offer Rate applicable to ninety (90) day deposits of United States Dollars as reported in the Money Rates Section of The Wall Street
Journal on the date of determination and (ii) two percent (2.00%). If The Wall Street Journal is not published on such Business
Day or does not report such rate, such rate shall be as reported by such other publication or source as Lender may select.


 


“Lien”
means any mortgage, Lien, pledge, charge, security interest or similar encumbrance.


 


“Loan
Documents” means this Agreement, the Revolving Note, the Business Associate Agreement, the Deposit Account Control Agreement,
the Depository Agreements, each Guaranty Agreement, and all agreements relating to the Government Lockbox and the Commercial Lockbox,
all financing statements, the Subordination Agreements, and any other agreements, instruments, documents and certificates delivered in
connection with this Agreement.


 




    	 



     


    

 


“Loan
Party” means Borrower or any Guarantor, if any, individually and collectively.


 


“Loan
Request” has the meaning set forth in Section 2.02(a) hereof.


 


“Lockbox
Bank” means Citizens Bank, N.A. or such other bank that is acceptable to Lender.


 


“Management
Agreement” means each of, and “Management Agreements” mean the collective reference to, those certain Management
Agreements each dated as of the dates thereof by and between Manager and each Borrower as in effect on the Closing Date.


 


“Manager”
means Trillium Healthcare Consulting, LLC, a Florida limited liability company, together with its successors and assigns.


 


“Master
Landlord” means the individual and collective reference to the Omega Master Landlord and the CareTrust Master Landlord.


 


“Master
Lease” means, individually and collectively, that certain (i) Omega Master Lease and (ii) CareTrust Master Lease, each as further
amended, restated, amended and restated, supplemented or otherwise modified from time to time to the extent not prohibited hereunder.


 


“Material
Adverse Effect” shall mean a material adverse effect upon, or a material adverse change in, any of (a) the financial condition,
operations, business, Property or prospects of Borrower; (b) the ability of Borrower to perform its Obligations; (c) the legality, validity
or enforceability of any Loan Document; (d) the perfection or priority of the Liens of Lender granted under the Loan Documents or the
rights and remedies of Lender under the Loan Documents; or (e) the condition or value of any portion of the Collateral (other than market
fluctuations in the values of such Collateral); (f) the use or scope of any Permit or (g) the continued participation or the ability
to accept or bill for goods or services in any Government Reimbursement Program by Borrower.


 


“Maturity
Date” has the meaning set forth in Section 2.01(d) hereof.


 


“Maximum
Loan Turn Days” means, as of any date of determination, (i) the result of (A) the average monthly outstanding balance of the
Revolving Loans during the immediately preceding three (3) months, divided by (B) the average monthly Collections in the Commercial
Lockbox and Government Lockbox for the immediately preceding three (3) months, multiplied by (ii) 30.


 


“Medicaid”
means, collectively, the healthcare assistance program established by Title XIX of the Social Security Act (42 U.S.C. § § 1396
et seq.) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders, guidelines or requirements (whether
or not having the force of law) pertaining to such program, including all state statutes and plans for medical assistance enacted in
connection with such program, in each case as the same may be amended, supplemented or otherwise modified from time to time.


 


“Medicaid
Pending” means an amount that will be billed to Medicaid for services rendered to patients that are expected to qualify for
the state Medicaid program, but are in the process of completing the necessary paperwork and have not yet been officially accepted by
the state as eligible Medicaid patients.


 


“Medical
Services” means medical and healthcare items, services or supplies provided to a patient, including without limitation physician
services, nurse and therapist services, dental services, hospital services, skilled nursing facility services, comprehensive outpatient
rehabilitation services, home healthcare services, residential and out-patient behavioral healthcare services, and medicine or healthcare
equipment provided by Borrower to a patient for a valid and proper medical or health purpose.


 


“Medicare”
means, collectively, the health insurance program for the aged and disabled established by Title XVIII of the Social Security Act (42
U.S.C. § § 1395 et seq.) and any statutes succeeding thereto, and all laws, rules, regulations, manuals, orders, guidelines
or requirements (whether or not having the force of law) pertaining to such program, in each case as the same may be amended, supplemented
or otherwise modified from time to time.


 




    	 



     


    

 


“Member”
means, as applicable, a shareholder, member or partner of Borrower.


 


“Minimum
Balance” has the meaning set forth in Section 2.03(b) hereof.


 


“Minimum
Use Fee” has the meaning set forth in Section 2.03(b) hereof.


 


“Multiemployer
Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.


 


“Net
Income” means, with respect to any period, the aggregate of the net income (loss) of Borrower for such period, determined in
accordance with GAAP. There shall be excluded in computing Net Income (i) any after tax gains (but not losses) attributable to dispositions
of assets (other than sales of inventory in the ordinary course of business) and (ii) any after-tax extraordinary gains (but not losses).


 


“Obligations”
means all now existing or hereafter arising debts, obligations, covenants, and duties of payment or performance of every kind, matured
or unmatured, direct or contingent, owing, arising, due, or payable to Lender, by or from Borrower whether arising out of this Agreement
or any other Loan Document or otherwise, including all obligations to repay principal of and interest on all the Revolving Loans, and
to pay interest, fees, costs, charges, Expenses, professional fees, and all sums chargeable to Borrower under the Loan Documents, whether
or not evidenced by any note or other instrument.


 


“Obligor”
means the party primarily obligated to pay an Account.


 


“Offer”
has the meaning set forth in Section 6.26 hereof.


 


“Offer
Transaction” has the meaning set forth in Section 6.26 hereof.


 


“Omega
Intercreditor Agreement” means that certain Subordination and Intercreditor Agreement, dated as of the date hereof, by and
among Omega Tenants, Omega Master Landlord and Lender, as the same may be amended, modified, restated or replaced.


 


“Omega
Master Landlord” means the collective reference to Crete Plus Five Property, L.L.C., Iowa Lincoln County Property, L.L.C.,
Muscatine Toledo Properties, L.L.C., and Avery Street Property, L.L.C., each a Delaware limited liability company.


 


“Omega
Master Lease” means that certain Master Lease dated as of May 13, 2015 by and among the Omega Master Landlord and Omega Tenants,
as the same may be amended, modified, restated or replaced to the extent not prohibited hereunder.


 


“Omega
Tenants” means the following Borrowers and any other Borrower who becomes a tenant under the Omega Master Lease: Iane Properties
I, LLC and Iane Properties II, LLC, each a Florida limited liability company.


 


“Option
Period” has the meaning set forth in Section 6.26 hereof.


 


“Organizational
Documents” means, (a) with respect to any corporation, the, charter, certificate or articles of incorporation and the bylaws
(or equivalent or comparable constituent documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability
company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint
venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization
and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles
of formation or organization of such entity.


 


“Parent”
means Trillium Healthcare Group, LLC, a Florida limited liability company.


 


“Participation
Agreements” has the meaning set forth in Section 5.03(d)(ii) hereof.


 




    	 



     


    

 


“PBGC”
means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under ERISA.


 


“Permit”
shall mean any permit, approval, authorization, license, accreditation, certification, provider or supplier number, registration, certificate
of authority, certificate of need, certificate of reimbursement, variance, qualification, filing or consent required under any Applicable
Law.


 


“Permitted
Liens” has the meaning set forth in Section 5.06 hereof.


 


“Person”
means any individual, corporation, partnership, limited liability partnership, limited liability company, association, trust, unincorporated
organization, joint venture, court or government or political subdivision or agency thereof, or other entity.


 


“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412
of the Code or Section 302 of ERISA, and in respect of which Borrower or any ERISA Affiliate is (or, if such plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.


 


“Property”
means an interest of Borrower in any kind of property or asset, whether real, Personal or mixed, or tangible or intangible.


 


“Required
Insurance” has the meaning set forth in Section 6.02(a) hereof.


 


“Revolving
Loan(s)” has the meaning set forth in Section 2.01(a) hereof.


 


“Revolving
Loan Commitment” means an amount equal to Ten Million and No/100 Dollars ($10,000,000.00).


 


“Revolving
Note” has the meaning set forth in Section 2.01(b) hereof.


 


“Securities”
has the meaning set forth in Section 6.14 hereof.


 


“Settlement
Date” has the meaning set forth in Section 2.02(a) hereof.


 


“Subordinated
Debt” means debt or other obligations of Borrower that are subordinated to the Obligations of Borrower to Lender pursuant to
the terms and provisions of a Subordination Agreement satisfactory to Lender in its sole discretion.


 


“Subordination
Agreement” means collectively and individually (i) the Omega Intercreditor Agreement, (ii) the CareTrust Intercreditor Agreement
and (iii) those certain other intercreditor and/or subordination agreements in form and substance satisfactory to Lender in Lender’s
sole discretion executed by the holders of Subordinated Debt, as the same may from time to time be amended, restated, modified or otherwise
supplemented.


 


“Subsidiary”
of a Person means a corporation, partnership, limited liability company or other business entity of which more than fifty percent (50%)
of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than Equity Interests
having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is
otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified,
all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Borrower.


 


“Tax
Distributions” means payments by Borrower to any of its Members pursuant to the terms and provisions of the Organizational
Documents of Borrower in amounts necessary to solely pay taxes calculated based on Borrower’s Net Income.


 




    	 



     


    

 


“Taxes”
shall mean all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise,
profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property,
windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest and
any penalties, additions to tax, or additional amounts with respect thereto, and including liabilities under escheat, unclaimed property
laws or similar laws, and the term “Tax” means any of the foregoing taxes.


 


“Termination
Fee” has the meaning set forth in Section 2.03(c) hereof.


 


“Third
Party Payor” means any Government Account Debtor, Blue Cross and/or Blue Shield, private insurers, managed care plans and any
other Person or entity which presently or in the future is obligated to make payment on any Account.


 


“Third
Party Payor Programs” means all payment and reimbursement programs sponsored by a Third Party Payor in which Borrower participates.


 


“TRICARE”
means, collectively, the program of medical benefits covering former and active members of the uniformed services and certain of their
dependents, financed and administered by the United States Department of Defense, Health and Human Services and Transportation, and all
laws, rules, regulations, manuals, orders, guidelines or requirements (whether or not having the force of law) pertaining to such program,
in each case as the same may be amended, supplemented or otherwise modified from time to time.


 


“Uniform
Commercial Code” or “UCC” means the Uniform Commercial Code as in effect from time to time in the Commonwealth
of Pennsylvania.


 


“Unused
Line Fee” has the meaning set forth in Section 2.03(d).


 




    	 



     


    

 


ANNEX
A


 


	 	Borrower
	 	 
	1.
    	Fair
    Oaks RCF, LLC
	2.
    	Crest
    Haven Care Center, LLC
	3.
    	Premier
    Estates 503, LLC
	4.
    	Elmwood
    Care Center, LLC
	5.
    	Elmwood
    PE, LLC
	6.
    	Premier
    Estates 509, LLC
	7.
    	Premier
    Estates 507, LLC
	8.
    	Premier
    Estates 505, LLC
	9.
    	Rock
    Rapids Care Center, LLC
	10.
    	Rock
    Rapids PE, LLC
	11.
    	Premier
    Estates 511, LLC
	12.
    	Premier
    Estates 502, LLC
	13.
    	Premier
    Estates 504, LLC
	14.
    	Premier
    Estates 506, LLC
	15.
    	New
    Hampton Care Center, LLC
	16.
    	Premier
    Estates of Muscatine, LLC
	17.
    	Premier
    Estates 508, LLC
	18.
    	Premier
    Estates of Toledo, LLC
	19.
    	Sunny
    Knoll Care Center, LLC
	20.
    	Premier
    Estates 510, LLC
	21.
    	North
    Platte Care Center, LLC
	22.
    	North
    Platte PE, LLC
	23.
    	Premier
    Estates of Crete, LLC
	24.
    	Premier
    Estates of Fremont, LLC
	25.
    	Premier
    Estates of Kenesaw, LLC
	26.
    	Premier
    Estates of Pawnee, LLC
	27.
    	Premier
    Estates of Pierce, LLC
	28.
    	Premier
    Estates of West Point, LLC
	29.
    	Rehabilitation
    Center at Park Place, LLC
	30.
    	Premier
    Estates of Dublin, LLC
	31.
    	Premier
    Estates 520, LLC
	32.
    	Premier
    Estates 521, LLC
	33.
    	Premier
    Estates 522, LLC
	34.
    	Premier
    Estates 523, LLC
	35.
    	Premier
    Estates 524, LLC
	36.
    	Premier
    Estates 525, LLC
	37.
    	Premier
    Estates 526, LLC