Exhibit 10.2 -- Security Agreement



 Exhibit 10.2 
 EXECUTION VERSION 
 SECURITY AGREEMENT 

Dated February 1, 2011 
 From 
 The Grantors referred to herein 

as Grantors 
 to 
 JPMORGAN CHASE BANK, N.A. 

as Collateral Agent 

  
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 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
			
	 Section 1.
	  	 Grant of Security
	  	2
			
	 Section 2.
	  	 Security for Obligations
	  	6
			
	 Section 3.
	  	 Grantors Remain Liable
	  	7
			
	 Section 4.
	  	 Delivery and Control of Security Collateral
	  	7
			
	 Section 5.
	  	 Representations and Warranties
	  	8
			
	 Section 6.
	  	 Further Assurances
	  	12
			
	 Section 7.
	  	 As to Equipment
	  	13
			
	 Section 8.
	  	 Insurance
	  	13
			
	 Section 9.
	  	 Post-Closing Changes; Collections on Assigned Agreements, Receivables and Related Contracts
	  	14
			
	 Section 10.
	  	 As to Intellectual Property Collateral
	  	15
			
	 Section 11.
	  	 Voting Rights; Dividends; Etc.
	  	16
			
	 Section 12.
	  	 As to the Assigned Agreements
	  	17
			
	 Section 13.
	  	 As to Letter-of-Credit Rights
	  	18
			
	 Section 14.
	  	 Commercial Tort Claims
	  	18
			
	 Section 15.
	  	 Transfers and Other Liens; Additional Shares
	  	18
			
	 Section 16.
	  	 Collateral Agent Appointed Attorney in Fact
	  	19
			
	 Section 17.
	  	 Collateral Agent May Perform
	  	19
			
	 Section 18.
	  	 The Collateral Agent’s Duties
	  	19
			
	 Section 19.
	  	 Remedies
	  	20
			
	 Section 20.
	  	 As to Equipment
	  	22
			
	 Section 21.
	  	 Amendments; Waivers; Additional Grantors; Etc.
	  	23
			
	 Section 22.
	  	 Notices, Etc.
	  	23
			
	 Section 23.
	  	 Continuing Security Interest; Assignments under the Credit Agreement
	  	23


  
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	 Section 24.
	  	 Release; Termination
	  	24
			
	 Section 25.
	  	 Execution in Counterparts
	  	24
			
	 Section 26.
	  	 Governing Law
	  	25

 Schedules 

 

					
	Schedule I	  	-	  	Investment Property
	Schedule II	  	-	  	Pledged Deposit Accounts
	Schedule III	  	-	  	[Reserved]
	Schedule IV	  	-	  	Intellectual Property
	Schedule V	  	-	  	Commercial Tort Claims
	Schedule VI	  	-	  	[Reserved]
	Schedule VII	  		  	Location, Chief Executive Office, Type of Organization, Jurisdiction of Organization and Organizational Identification Number
	Schedule VIII	  	-	  	Changes in Name, Location, Etc.
	Schedule IX	  	-	  	Locations of Equipment and Inventory
	Schedule X	  	-	  	Letters of Credit
	
	Exhibits
			
	Exhibit A	  	-	  	[Reserved]
	Exhibit B	  	-	  	Form of Intellectual Property Security Agreement
	Exhibit C	  	-	  	Form of Intellectual Property Security Agreement Supplement
	Exhibit D	  	-	  	Form of Security Agreement Supplement


  
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 SECURITY AGREEMENT 

SECURITY AGREEMENT dated February 1, 2011 made by LifeCare Holdings, Inc., a Delaware corporation (the
“Borrower”) and the other Persons listed on the signature pages hereof (the Borrower and the Persons so listed being, collectively, the “Grantors”), to JPMorgan Chase Bank, N.A., as collateral agent
(together with any successor collateral agent appointed pursuant to Article VIII of the Credit Agreement (as hereinafter defined), the “Collateral Agent”) for the Agents, the Lenders, the Issuing Bank and the Cash Management
Banks (as defined in Section 2 hereof) (collectively, the “Secured Parties”). 
 PRELIMINARY
STATEMENTS 
 (1) The Borrower has entered into a Credit Agreement dated as of February 1, 2011 (said Agreement, as it
may hereafter be amended, amended and restated, supplemented or otherwise modified from time to time, being the “Credit Agreement”) with LCI Holdco, LLC, a Delaware limited liability company, certain Lenders party thereto and
JPMorgan Chase Bank, N.A., as Collateral Agent and Administrative Agent for such Lenders. 
 (2) Each Grantor is the owner of
the shares of stock or other Equity Interests (the “Initial Pledged Equity”) set forth opposite such Grantor’s name on and as otherwise described in Part I of Schedule I hereto and issued by the Persons named therein and
of the indebtedness (the “Initial Pledged Debt”) set forth opposite such Grantor’s name on and as otherwise described in Part II of Schedule I hereto and issued by the obligors named therein. 

(3) It is a condition precedent to the making of Loans and the issuance of Letters of Credit by the Lenders under the Credit Agreement
and the entry into Secured Cash Management Agreements by the Cash Management Banks from time to time that the Grantors shall have granted the security interest contemplated by this Agreement. Each Grantor will derive substantial direct and indirect
benefit from the transactions contemplated by the Loan Documents. 
 (4) Terms defined in the Credit Agreement and not otherwise
defined in this Agreement are used in this Agreement as defined in the Credit Agreement. Further, unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC (as defined below) are used in this
Agreement as such terms are defined in such Article 8 or 9. “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection or
non perfection or the priority of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as
in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non perfection or priority. 

  
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 NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make
Loans and issue Letters of Credit under the Credit Agreement and to induce the Cash Management Banks to enter into Secured Cash Management Agreements from time to time, each Grantor hereby agrees with the Collateral Agent for the ratable benefit of
the Secured Parties as follows: 
 Section 1. Grant of Security. Each Grantor hereby grants to the Collateral
Agent, for the ratable benefit of the Secured Parties, a security interest in such Grantor’s right, title and interest in and to the following, in each case, as to each type of property described below, whether now owned or hereafter acquired
by such Grantor, wherever located, and whether now or hereafter existing or arising (collectively, the “Collateral”): 
 (a) all equipment in all of its forms, including, without limitation, all machinery, tools, motor vehicles, vessels, aircraft, furniture and fixtures, and all parts thereof and all accessions thereto,
including, without limitation, computer programs and supporting information that constitute equipment within the meaning of the UCC (any and all such property being the “Equipment”); 

(b) all inventory in all of its forms, including, without limitation, (i) all raw materials, work in process,
finished goods and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass or a joint or other interest or right of any kind (including, without
limitation, goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor, and all accessions thereto and products thereof and documents therefor,
including, without limitation, computer programs and supporting information that constitute inventory within the meaning of the UCC (any and all such property being the “Inventory”); 

(c) all accounts (including, without limitation, health-care-insurance receivables), chattel paper (including, without
limitation, tangible chattel paper and electronic chattel paper), instruments (including, without limitation, promissory notes), deposit accounts, letter-of-credit rights, general intangibles (including, without limitation, payment intangibles) and
other obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering of services and whether or not earned by performance, and all rights now or hereafter existing in and to all supporting
obligations and in and to all security agreements, mortgages, Liens, leases, letters of credit and other contracts securing or otherwise relating to the foregoing property (any and all of such accounts, chattel paper, instruments, deposit accounts,
letter-of-credit rights, general intangibles and other obligations, to the extent not referred to in clause (d), (e) or (f) below, being the “Receivables,” and any and all such supporting obligations, security
agreements, mortgages, Liens, leases, letters of credit and other contracts being the “Related Contracts”); 
 (d) the following (the “Security Collateral”): 
 (i) the Initial Pledged Equity and the certificates, if any, representing the Initial Pledged Equity, and all dividends, distributions, return of capital, cash, instruments and other property from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Equity and all warrants, rights or options issued thereon or with respect thereto; 

  
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 (ii) the Initial Pledged Debt and the instruments, if any, evidencing the
Initial Pledged Debt, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Debt; 

(iii) all additional shares of stock and other Equity Interests from time to time acquired by such Grantor in any manner
(such shares and other Equity Interests, together with the Initial Pledged Equity, being the “Pledged Equity”), and the certificates, if any, representing such additional shares or other Equity Interests, and all dividends,
distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares or other Equity Interests and all warrants, rights or
options issued thereon or with respect thereto; provided that, notwithstanding anything contained herein to the contrary, such Grantor shall not be required to pledge, and the terms “Pledged Equity” and
“Security Collateral” used in this Agreement shall not include, any Equity Interests in any Foreign Subsidiary acquired, owned, or otherwise held by such Grantor, in each case, that, when aggregated with all of the other
shares of stock in such Foreign Subsidiary pledged by such Grantor, would result in more than 66% of the shares of stock in such Foreign Subsidiary entitled to vote (within the meaning of Treasury Regulation Section 1.956-2(c)(2) promulgated
under the Code) (the “Voting Foreign Stock”) being pledged to the Collateral Agent for the benefit of the Secured Parties under this Agreement; provided, further that all of the shares of stock or units or other
Equity Interests in such Foreign Subsidiary not entitled to vote (within the meaning of Treasury Regulation Section 1.956-2(c)(2) promulgated under the Code) (the “Non-Voting Foreign Stock”) shall be pledged by such
Grantor; 
 (iv) all additional indebtedness from time to time owed to such Grantor (such indebtedness, together
with the Initial Pledged Debt, being the “Pledged Debt”) and the instruments, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such indebtedness; and 
 (v) all other investment
property (including, without limitation, all (A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts, (D) commodity contracts and (E) commodity accounts) in which such
Grantor has now, or acquires from time to time hereafter, any right, title or interest in any manner, and the certificates or instruments, if any, representing or evidencing such investment property, and all dividends, distributions, return of
capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment property and all warrants, rights or options issued thereon or
with respect thereto; 

  
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 (e) each Swap Agreement to which such Grantor is now or may hereafter become
a party, as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Assigned Agreements”), including, without limitation, (i) all rights of such
Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the Assigned Agreements,
(iii) claims of such Grantor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor to terminate the Assigned Agreements, to perform thereunder and to compel performance and
otherwise exercise all remedies thereunder (all such Collateral being the “Agreement Collateral”); 
 (f) the following (collectively, the “Account Collateral”): 
 (i) all deposit accounts, including the deposit accounts listed on Schedule II hereto (collectively, the “Pledged Deposit Accounts”) and all funds and financial assets from time to
time credited thereto (including, without limitation, all cash equivalents), and all certificates and instruments, if any, from time to time representing or evidencing the Pledged Deposit Accounts; 

(ii) all promissory notes, certificates of deposit, checks and other instruments from time to time delivered to or
otherwise possessed by the Collateral Agent for or on behalf of such Grantor in substitution for or in addition to any or all of the then existing Account Collateral; and 

(iii) all interest, dividends, distributions, cash, instruments and other property from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of the then existing Account Collateral; and 
 (g) the following (collectively, the “Intellectual Property Collateral”): 
 (i) all patents, patent applications, all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations thereof, all utility models and statutory invention
registrations, all inventions claimed or disclosed therein and all improvements thereto (“Patents”); 
 (ii) all trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and other source identifiers, whether registered or unregistered
(provided that no security interest shall be granted in United States intent-to-use trademark applications solely to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or
enforceability of such intent-to-use trademark applications under applicable federal law), together, in each case, with the goodwill symbolized thereby (“Trademarks”); 

(iii) all works of authorship and copyrights, including, without limitation, copyrights in Computer Software (as
hereinafter defined), internet web sites and the content thereof, whether registered or unregistered (“Copyrights”); 

  
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 (iv) all computer software, programs and databases (including, without
limitation, source code, object code and all related applications and data files), firmware and documentation and materials relating thereto, together with any and all maintenance rights, service rights, programming rights, hosting rights, test
rights, improvement rights, renewal rights and indemnification rights and any substitutions, replacements, improvements, error corrections, updates and new versions of any of the foregoing (“Computer Software”); 

(v) all confidential and proprietary information, including, without limitation, know-how, trade secrets, manufacturing
and production processes and techniques, inventions, research and development information, databases and data, including, without limitation, technical data, financial, marketing and business data, pricing and cost information, business and
marketing plans and customer and supplier lists and information (collectively, “Trade Secrets”), and all other intellectual, industrial and intangible property of any type, including, without limitation, industrial designs
and mask works; 
 (vi) all registrations and applications for registration for any of the foregoing, including,
without limitation, those registrations and applications for registration set forth in Schedule IV hereto; 

(vii) all tangible embodiments of the foregoing, all of Grantors’ rights in the foregoing provided by international
treaties or conventions, all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; 

(viii) all agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of
any of the foregoing to which such Grantor, now or hereafter, is a party or a beneficiary, including, without limitation, the agreements set forth in Schedule IV hereto (“IP Agreements”) (provided that no security interest
shall be granted in or under any IP Agreement where the granting of such an interest would be a breach of such IP Agreement, or would result in a default or acceleration of Grantors’ payment obligations); and 

(ix) any and all claims for damages and injunctive relief for past, present and future infringement, dilution,
misappropriation, violation, misuse or breach with respect to any of the foregoing held by a Grantor, and the right (without the obligation) to sue for and collect, or otherwise recover, such damages; 

  
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 (h) the commercial tort claims described in Schedule V hereto (together with
any commercial tort claims as to which the Grantors have complied with the requirements of Section 14, the “Commercial Tort Claims Collateral”); 

(i) all documents; 
 (j) all books and records (including, without limitation, customer lists, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the Collateral; and

 (k) all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable
with respect to, and supporting obligations relating to, any and all of the Collateral (including, without limitation, proceeds, collateral and supporting obligations that constitute property of the types described in clauses (a) through
(i) of this Section 1) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or
damage to or otherwise with respect to any of the foregoing Collateral, and (B) cash; 
 provided that notwithstanding anything to
the contrary in this Agreement, the Collateral shall not include (A) any Equipment that is subject to a purchase money lien or capital lease permitted under the Credit Agreement to the extent the documents relating to such purchase money lien
or capital lease do not permit such Equipment to be subject to the security interests created hereby, (B) any Letter-of-Credit Rights to the extent any Grantor is required by applicable law to apply the Net Proceeds of such Letter-of-Credit
Rights for a specified purpose or (C) any tangible or intangible property or assets if (but only to the extent that) the grant of a security interest therein would (x) constitute a violation of a valid and enforceable restriction in
respect of such Collateral in favor of a third party or under any law, regulation, permit, order or decree of any Governmental Authority, unless and until all required consents shall have been obtained or (y) expressly give any other party in
respect of any such contract, lease, instrument, license or other document, the right to terminate its obligations thereunder; provided however, that the limitation set forth in clauses (A) and (C) above shall not affect, limit,
restrict or impair the grant by a Grantor of a security interest pursuant to this Agreement in any such tangible or intangible property or assets to the extent that an otherwise applicable prohibition or restriction on such grant is rendered
ineffective by any applicable law, including the UCC. Each Grantor shall, if requested to do so by the Collateral Agent, use commercially reasonable efforts to obtain any such required consent that is reasonably obtainable with respect to Collateral
(other than with respect to healthcare receivables) which the Collateral Agent reasonably determines to be material. 
 Section
2. Security for Obligations. This Agreement secures, in the case of each Grantor, the payment of (a) all Obligations of such Grantor now or hereafter existing and (b) all Cash Management Obligations owing to any Cash Management
Bank, in each case, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such
obligations being the “Secured Obligations”). Without limiting the generality of the foregoing, this Agreement secures, as to each Grantor, the payment of all amounts that


  
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constitute part of the Secured Obligations and would be owed by such Grantor to any Secured Party under the Loan Documents but for the fact that they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. For purposes of this Agreement and the other Loan Documents, (a) the term “Obligations” means all present and future obligations of
any of the Loan Parties under, out of or in connection with the Loan Documents, including, without limitation, (i) the punctual payment by the Borrower of (A) the unpaid principal and interest (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise, (B) each payment required to be made by the Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, and (C) all other monetary obligations of the Borrower to any of the Secured Parties under the Credit Agreement and each of the other Loan Documents, including obligations to pay fees, expense
reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), (ii) the due and punctual performance of all other obligations of the Borrower under or pursuant to the Credit Agreement and each of the other Loan Documents, and
(iii) the due and punctual payment and performance of all of the obligations of each other Loan Party under or pursuant to this Agreement and each of the other Loan Documents, and (b) the term “Cash Management Bank”
means any Lender or Affiliate of a Lender in its capacity as a provider of cash management services pursuant to a Secured Cash Management Agreement and the term “Cash Management Obligations” means the obligations of any Loan
Party under a Secured Cash Management Agreement. 
 Section 3. Grantors Remain Liable. Anything herein to the
contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the Collateral Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the
Collateral and (c) no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform
any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
 Section 4. Delivery and Control of Security Collateral. (a) All certificates or instruments representing or evidencing Security Collateral shall be delivered to and held by or on behalf of the
Collateral Agent pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral
Agent; provided, that so long as no Event of Default has occurred and is continuing, no Grantor shall be required to deliver instruments representing or evidencing Pledged Debt if the amount of such Pledged Debt is $500,000 or less. Upon the
occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the right at any time to exchange certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or
larger denominations. 

  
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 (b) With respect to any Security Collateral that constitutes an uncertificated security,
promptly upon the request of the Collateral Agent, the relevant Grantor will cause the issuer thereof either (i) to register the Collateral Agent as the registered owner of such security or (ii) to agree with such Grantor and the
Collateral Agent that such issuer will comply with instructions with respect to such security originated by the Collateral Agent without further consent of such Grantor, such agreement to be in form and substance reasonably satisfactory to the
Collateral Agent (such agreement being an “Uncertificated Security Control Agreement”). 
 (c) The
Collateral Agent shall have the right, at any time in its discretion and without notice to any Grantor, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral, subject only to
the revocable rights specified in Section 11(a). 
 (d) Upon the request of the Collateral Agent following the occurrence
and during the continuance of an Event of Default, each Grantor will notify each issuer of Security Collateral granted by it hereunder that such Security Collateral is subject to the security interest granted hereunder. 

Section 5. Representations and Warranties. Each Grantor represents and warrants as follows: 

(a) As of the date hereof, such Grantor’s exact legal name, location, chief executive office, type of organization,
jurisdiction of organization and organizational identification number is set forth in Schedule VII hereto. As of the date hereof, such Grantor has no trade names other than as listed on Schedule IV hereto. Within the five years preceding the date
hereof, such Grantor has not changed its name, location, chief executive office, type of organization, jurisdiction of organization or organizational identification number from those set forth in Schedule VII hereto except as set forth in Schedule
VIII hereto. 
 (b) Such Grantor is the legal and beneficial owner of the Collateral of such Grantor free and
clear of any Lien, claim, option or right of others, except for the security interest created under this Agreement and any Liens permitted under the Credit Agreement. No effective financing statement or other instrument similar in effect covering
all or any part of such Collateral or listing such Grantor or any trade name of such Grantor as debtor is on file in any recording office, except such as may have been filed in favor of the Collateral Agent relating to the Loan Documents or as
otherwise permitted under the Credit Agreement; and no control agreement or similar instrument is, or upon the occurrence of any event will be, in effect covering any deposit account of any Grantor, except as may be executed in favor of the
Collateral Agent. 
 (c) All of the Equipment of such Grantor is located at the places specified therefor in
Schedule IX hereto or at another location as to which such Grantor has complied with the requirements of Section 7. As of the Closing Date, all of the Inventory 

  
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of such Grantor is located at the places specified therefor in Schedule IX. Within the five years preceding the date hereof, such Grantor has not changed the location of its Equipment or
Inventory except as set forth in Schedule VIII hereto. 
 (d) None of the Receivables or Agreement Collateral is
evidenced by a promissory note or other instrument that has not been delivered to the Collateral Agent in accordance with this Agreement. 
 (e) If such Grantor is an issuer of Security Collateral, such Grantor confirms that it has received notice of the security interest granted hereunder. 

(f) The Pledged Equity issued by a subsidiary of Holdings and pledged by any Grantor hereunder has been duly authorized
and validly issued and is fully paid and non assessable. The Pledged Debt issued by a subsidiary of Holdings and pledged by any Grantor hereunder has been duly authorized, authenticated or issued and delivered, is the legal, valid and binding
obligation of the issuers thereof, if evidenced by one or more promissory notes, such promissory notes have been delivered to the Collateral Agent in accordance with the terms of Section 4(a), and is not in default. 

(g) The Initial Pledged Equity pledged by such Grantor constitutes the percentage of the issued and outstanding Equity
Interests of the issuers thereof indicated on Schedule I hereto. The Initial Pledged Debt constitutes all of the outstanding indebtedness owed to such Grantor by the issuers thereof and is outstanding in the principal amount indicated on Schedule I
hereto. 
 (h) Such Grantor has no investment property, other than the investment property listed on Schedule I
hereto and additional investment property as to which such Grantor has complied with the requirements of Section 4. 
 (i) As of the date hereof, the Pledged Deposit Accounts listed on Schedule II hereto are the only Pledged Deposit Accounts which must be made subject to Control Agreements in order that the requirement in
Section 5.17 of the Credit Agreement is fulfilled (without giving effect to the final sentence of Section 5.17 of the Credit Agreement). 
 (j) Such Grantor is not a beneficiary or assignee under any letter of credit, other than the letters of credit described in Schedule X hereto and additional letters of credit as to which such Grantor has
complied with the requirements of Section 13. 
 (k) This Agreement creates in favor of the Collateral Agent
for the benefit of the Secured Parties a valid security interest in the Collateral granted by such Grantor, securing the payment of the Secured Obligations; all filings under the UCC necessary to perfect the security interest in the Collateral
granted by such Grantor and all filings with the U.S. Copyright Office or the U.S. Patent and Trademark Office, to the extent that such security interest can be perfected by filing, have been duly made and are in full force and effect or the
requisite UCC financing statements or Intellectual Property Security Agreements have been delivered to the Collateral Agent in appropriate form for filing, and upon filing, will be in full force and effect; and such security interest (to the


  
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extent that such security interest can be perfected by filing) is (or, upon the filing of such financing statements, will be) first priority, subject to Liens permitted by the Credit Agreement.
All actions (including, without limitation, the actions necessary to obtain control of the Pledged Equity as provided in Section 9-106 of the UCC to the extent that such Pledged Equity constitutes investment property) necessary to perfect the
security interests in the Security Collateral granted by such Grantor have been duly taken and such security interest is first priority. 
 (l) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for (i) the grant by such
Grantor of the security interest granted hereunder or for the execution, delivery or performance of this Agreement by such Grantor, (ii) the perfection or maintenance of the security interest created hereunder (including the first priority
nature of such security interest), except for (A) the filing of financing and continuation statements under the UCC, which financing statements have been duly filed and are in full force and effect or which financing statements have been
delivered to the Collateral Agent in appropriate form for filing, and upon filing, will be in full force and effect, (B) the recordation of the Intellectual Property Security Agreements referred to in Section 10(d) with the U.S. Patent and
Trademark Office and the U.S. Copyright Office, which Agreements have been duly recorded and are in full force and effect or which Agreements have been delivered to the Collateral Agent in appropriate form for filing, and upon filing, will be in
full force and effect, (C) the entry into Control Agreements or other appropriate control agreements in favor of the Agent as required by Section 5.17 of the Credit Agreement (it being understood that the representation made in this
Section 5(l)(ii) is only made with respect to cash deposited in Pledged Deposit Accounts subject to Control Agreements or other appropriate control agreements in favor of the Agent pursuant to Section 5.17 of the Credit Agreement) and
(D) the actions described in Section 4 with respect to the Security Collateral, which actions have been taken and are in full force and effect, or (iii) the exercise by the Collateral Agent of its voting or other rights provided for
in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement, except as may be required in connection with the disposition of any portion of the Security Collateral by laws affecting the offering and sale of securities
generally and by applicable laws regarding the enforcement of remedies with respect to Medicare and Medicaid receivables. 
 (m) As to itself and its Intellectual Property Collateral: 
 (i)
Except as would not reasonably be expected to have a Material Adverse Effect: (x) it is either the exclusive owner of all right, title and interest in and to, or has a valid right to use, the Intellectual Property Collateral used in the
operation of such Grantor’s business as currently conducted, and (y) is entitled to use all Intellectual Property Collateral used in the operation of such Grantor’s business as currently conducted, subject only to the terms of the IP
Agreements. 
 (ii) The Intellectual Property Collateral set forth on Schedule IV hereto includes all of the
patents, patent applications, domain names, trademark registrations and applications, copyright registrations and applications, in each 

  
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case, owned by such Grantor, and IP Agreements pursuant to which such Grantor is the exclusive licensee of registered Intellectual Property Collateral (or applications therefor) as of the date
hereof. 
 (iii) The Intellectual Property Collateral has not been adjudged invalid or unenforceable in whole or
part, and is valid and enforceable, in each case, except as would not reasonably be expected to have a Material Adverse Effect. 
 (iv) Except as would not reasonably be expected to have a Material Adverse Effect, such Grantor has made or performed all filings, recordings and other acts and has paid all required fees and taxes to
maintain and protect its interest in each and every material item of Intellectual Property Collateral in full force and effect, and to protect and maintain its interest therein including, without limitation, recordations of any of its interests as
owner in the material Patents and registered Trademarks that it owns with the U.S. Patent and Trademark Office, and recordation of any of its interests in the registered Copyrights that it owns with the U.S. Copyright Office. 

(v) Except as would not reasonably be expected to have a Material Adverse Effect, no claim, action, suit, investigation,
litigation or proceeding is pending, or, to the knowledge of such Grantor, threatened in writing, against such Grantor (i) based upon or challenging or seeking to deny or restrict the Grantor’s rights in or use of any of the Intellectual
Property Collateral, (ii) alleging that the Grantor’s rights in or use of the Intellectual Property Collateral or that any services provided by, processes used by, or products manufactured or sold by, such Grantor infringe, misappropriate,
dilute, misuse or otherwise violate any patent, trademark, copyright or any other proprietary right of any third party, or (iii) alleging that the Intellectual Property Collateral is being licensed or sublicensed in violation or contravention
of the terms of any license or other agreement. To the knowledge of such Grantor and except as would not reasonably be expected to have a Material Adverse Effect, no Person is engaging in any activity that infringes, misappropriates, dilutes,
misuses or otherwise violates the Intellectual Property Collateral or the Grantor’s rights in or use thereof. As of the date hereof, to the knowledge of such Grantor and except as would not reasonably be expected to have a Material Adverse
Effect, except as set forth on Schedule IV hereto, such Grantor has not granted any written license, release, covenant not to sue, non-assertion assurance, or other right to any Person with respect to any part of the Intellectual Property
Collateral. To the knowledge of such Grantor, the consummation of the transactions contemplated by the Transaction Documents will not result in the termination or impairment of any material Intellectual Property Collateral. 

(vi) With respect to each IP Agreement and except as would not reasonably be expected to have a Material Adverse Effect:
(A) such IP Agreement is valid and binding and in full force and effect and represents the entire agreement between the respective parties thereto with respect to the subject matter thereof; (B) such Grantor has not received any notice of
termination or 

  
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cancellation under such IP Agreement; (C) such Grantor has not received any notice of a breach or default under such IP Agreement, which breach or default has not been cured; (D) such
Grantor has not granted to any other third party any rights, adverse or otherwise, under such IP Agreement; and (E) neither such Grantor nor any other party to such IP Agreement is in material breach or in default thereof in any material
respect, and no event has occurred that, with notice or lapse of time or both, would constitute such a material breach or material default or permit as a result of such event the termination, modification or acceleration under such IP Agreement.

 (n) Such Grantor has no commercial tort claims other than those listed in Schedule V hereto and additional
commercial tort claims as to which such Grantor has complied with the requirements of Section 14. 
 Section 6. Further
Assurances. (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor will promptly execute and deliver, or otherwise authenticate, all further instruments and documents, and take all further action that may be
necessary or desirable, or that the Collateral Agent may reasonably request, in order to perfect or maintain the perfection of and protect any pledge or security interest granted or purported to be granted by such Grantor hereunder or, to the extent
permitted by applicable law, to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of such Grantor. Without limiting the generality of the foregoing, each Grantor will promptly with
respect to Collateral of such Grantor: (i) upon the occurrence and during the continuance of an Event of Default, mark conspicuously each document included in Inventory, each chattel paper included in Receivables, each Related Contract, each
Assigned Agreement and, at the request of the Collateral Agent, each of its records pertaining to such Collateral with a legend, in form and substance reasonably satisfactory to the Collateral Agent, indicating that such document, chattel paper,
Related Contract, Assigned Agreement or Collateral is subject to the security interest granted hereby; (ii) if any such Collateral shall be evidenced by a promissory note or other instrument, deliver and pledge to the Collateral Agent hereunder
such note or instrument duly indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Collateral Agent; (iii) file such financing or continuation statements, or
amendments thereto, and such other instruments or notices, as may be necessary or desirable, or as the Collateral Agent may reasonably request, in order to perfect and preserve the security interest granted or purported to be granted by such Grantor
hereunder; (iv) at the reasonable request of the Collateral Agent, take all action to ensure that the Collateral Agent’s security interest is noted on any certificate of title related to any Collateral evidenced by a certificate of title;
and (v) deliver to the Collateral Agent evidence that all other actions that the Collateral Agent may deem reasonably necessary or desirable in order to perfect or maintain the perfection of and protect the security interest granted or
purported to be granted by such Grantor under this Agreement has been taken. 
 (b) Each Grantor hereby authorizes the
Collateral Agent to file one or more financing or continuation statements, and amendments thereto, including, without limitation, one or more financing statements indicating that such financing statements cover all assets or all personal property
(or words of similar effect) of such Grantor, regardless of whether any particular asset described in such financing statements falls within the scope of the UCC or the 

  
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granting clause of this Agreement. A photocopy or other reproduction of this Agreement shall be sufficient as a financing statement where permitted by law. Each Grantor ratifies its authorization
for the Collateral Agent to have filed such financing statements, continuation statements or amendments filed prior to the date hereof. 
 (c) Each Grantor will furnish to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral of such Grantor and such other reports in connection with
such Collateral as the Collateral Agent may reasonably request, all in reasonable detail and subject to confidentiality requirements imposed by applicable law; provided, that (i) each Grantor shall use reasonable best efforts to provide such
information consistent with such confidentiality requirements including, without limitation, pursuant to regulations that may permit disclosure under its health care operations (under and as defined in HIPAA) and the Business Associate Agreement
subject to the HIPAA minimum necessary requirement and (ii) to the extent that any Grantor is a “covered entity” under HIPAA, none of them shall by contract prohibit disclosure by any of the other of them to the Collateral Agent that
is not otherwise prohibited by HIPAA. 
 Section 7. As to Equipment. Each Grantor will keep its Equipment at the places
therefor specified in Section 5(c) or, upon 30 days’ prior written notice to the Collateral Agent, at such other places designated by such Grantor in such notice. 
 Section 8. Insurance. (a) Each Grantor will, at its own expense, maintain insurance with respect to its Equipment and Inventory in such amounts, against such risks, in such form and with such
insurers, as required under the Credit Agreement. Each policy of each Grantor for liability insurance shall provide for all losses to be paid on behalf of the Collateral Agent and such Grantor as their interests may appear, and each policy for
property damage insurance shall provide for all losses (except for losses of less than $2,000,000 per occurrence) to be paid directly to the Collateral Agent. Each such policy shall in addition (i) name such Grantor and the Collateral Agent as
insured parties thereunder (without any representation or warranty by or obligation upon the Collateral Agent) as their interests may appear, (ii) contain the agreement by the insurer that any loss thereunder shall be payable to the Collateral
Agent notwithstanding any action, inaction or breach of representation or warranty by such Grantor, (iii) solely with respect to each policy for property damage insurance, provide that there shall be no recourse against the Collateral Agent for
payment of premiums or other amounts with respect thereto and (iv) provide for at least 10 days’ prior written notice of cancellation to be given to the Collateral Agent by the insurer. Each Grantor will, upon the reasonable request of the
Collateral Agent, deliver to the Collateral Agent original or duplicate policies of such insurance and, as often as the Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to such insurance. Further, each
Grantor will, at the request of the Collateral Agent upon the occurrence and during the continuance of an Event of Default, duly execute and deliver instruments of assignment of such insurance policies and cause the insurers to acknowledge notice of
such assignment. 
 (b) Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 8
may be paid directly to the Person who shall have incurred liability covered by such insurance. In case of any loss involving damage to Equipment or Inventory when subsection (c) of this Section 8 is not applicable, except as otherwise
permitted under the 

  
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Credit Agreement, the applicable Grantor will make or cause to be made the necessary repairs to or replacements of such Equipment or Inventory, and any proceeds of insurance properly received by
or released to such Grantor shall be used by such Grantor, except as otherwise required hereunder or by the Credit Agreement, to pay or as reimbursement for the costs of such repairs or replacements. 

(c) So long as no Event of Default shall have occurred and be continuing, all insurance payments received by the Collateral Agent in
connection with any loss, damage or destruction of any Inventory or Equipment will be released by the Collateral Agent to the applicable Grantor for application in accordance with the Credit Agreement. Upon the occurrence and during the continuance
of any Event of Default, all insurance payments in respect of such Equipment or Inventory shall be paid to the Collateral Agent and shall, in the Collateral Agent’s sole discretion, (i) be released to the applicable Grantor to be applied
as set forth in the first sentence of this subsection (c) or (ii) be held as additional Collateral hereunder or applied as specified in Section 19(b). 
 Section 9. Post-Closing Changes; Collections on Assigned Agreements, Receivables and Related Contracts. (a) No Grantor will change its name, type of organization, jurisdiction of organization,
organizational identification number or location from those set forth in Section 5(a) of this Agreement without first giving at least 30 days’ prior written notice to the Collateral Agent and taking all action required by the Collateral
Agent for the purpose of perfecting or maintaining the perfection of or protecting the security interest granted by this Agreement. Each Grantor will hold and preserve its records relating to the Collateral, including, without limitation, the
Assigned Agreements and Related Contracts, and will permit representatives of the Collateral Agent to visit and inspect its records on the terms set forth in the Credit Agreement. If any Grantor does not have an organizational identification number
and later obtains one, it will forthwith notify the Collateral Agent of such organizational identification number. Upon request by the Collateral Agent from time to time (but not more than once each calendar quarter unless an Event of Default has
occurred and is continuing), each Grantor shall promptly notify the Collateral Agent of any deposit account that has been opened by (or on account of) such Grantor that is not listed on Schedule II hereto: 

(b) Except as otherwise provided in this subsection (b), each Grantor will continue to collect, at its own expense, all amounts due or to
become due to such Grantor under the Assigned Agreements, Receivables and Related Contracts. In connection with such collections, such Grantor may take (and, upon the occurrence and during the continuance of an Event of Default, at the Collateral
Agent’s direction, will take) such action as such Grantor or the Collateral Agent may deem necessary or advisable to enforce collection of the Assigned Agreements, Receivables and Related Contracts; provided, however, that the
Collateral Agent shall have the right at any time after the occurrence and during the continuance of an Event of Default, to the extent permitted by applicable law (it being understood that the following remedies in this Section 9(b) shall not
be available to the Collateral Agent with respect to Medicare and Medicaid receivables except as specifically noted below), upon written notice to such Grantor of its intention to do so, to notify the Obligors under any Assigned Agreements,
Receivables and Related Contracts of the assignment of such Assigned Agreements, Receivables and Related Contracts to the Collateral Agent and to direct such Obligors to make payment of all amounts due or to become due to such Grantor thereunder
directly to the Collateral Agent and, 

  
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upon such notification and at the expense of such Grantor, to enforce collection of any such Assigned Agreements, Receivables and Related Contracts, to adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as such Grantor might have done, and to otherwise exercise all rights with respect to such Assigned Agreements, Receivables and Related Contracts, including, without limitation, those set
forth set forth in Section 9-607 of the UCC. After receipt by any Grantor of the notice from the Collateral Agent referred to in the proviso to the preceding sentence, (i) all amounts and proceeds (including, without limitation,
instruments) received by such Grantor in respect of the Assigned Agreements, Receivables and Related Contracts of such Grantor shall be received in trust for the benefit of the Collateral Agent hereunder (except that the funds received from Medicare
and Medicaid shall not be received in trust for the benefit of the Collateral Agent hereunder but shall otherwise be subject to the remedies that follow in this sentence), shall be segregated from other funds of such Grantor and shall be forthwith
paid over to the Collateral Agent in the same form as so received with any necessary indorsement (provided, that Medicare and Medicaid receivables shall be paid over only after deposit in an account under the control of the Grantor) to be
deposited in an account under the dominion and control of the Collateral Agent and either (A) released to such Grantor so long as no Event of Default shall have occurred and be continuing or (B) if any Event of Default shall have occurred
and be continuing, applied as provided in Section 19(b) and (ii) such Grantor will not adjust, settle or compromise the amount or payment of any Receivable or amount due on any Assigned Agreement or Related Contract, release wholly or
partly any Obligor thereof or allow any credit or discount thereon. No Grantor will permit or consent to the subordination of its right to payment under any of the Assigned Agreements, Receivables and Related Contracts to any other indebtedness or
obligations of the Obligor thereof. 
 Section 10. As to Intellectual Property Collateral. (a) Except as would not
reasonably be expected to have a Material Adverse Effect, and subject to the reasonable abandonment of items of Intellectual Property Collateral by Grantor as described below, with respect to each item of its Intellectual Property Collateral, each
Grantor agrees to take, at its expense, all necessary steps in the U.S. Patent and Trademark Office, the U.S. Copyright Office to (i) maintain the validity and enforceability of material Intellectual Property Collateral and maintain such
Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and maintenance of each material patent, trademark, or copyright registration or application, now or hereafter included in such Intellectual Property
Collateral of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and Trademark Office or the U.S. Copyright Office, the filing of applications for
renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the payment of maintenance fees and the
participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings. No Grantor shall, without the written consent of the Collateral Agent, discontinue use of or otherwise abandon any Intellectual
Property Collateral, or abandon any right to file an application for patent, trademark, or copyright, provided, however, and as an express limit on the covenants to maintain and prosecute intellectual property rights set forth above, Grantor may
unilaterally abandon any item of Intellectual Property Collateral in the event that it has previously determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is no longer desirable in the conduct of such
Grantor’s business and that the loss thereof would not be reasonably likely to have a Material Adverse Effect. 

  
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 (b) Each Grantor agrees promptly to notify (it being understood that notification need not
be given more than once in each fiscal quarter) the Collateral Agent if such Grantor becomes aware that any material item of the Intellectual Property Collateral may have become abandoned, placed in the public domain, invalid or unenforceable, or of
the institution of any proceeding (including, without limitation, the institution of any proceeding in the U.S. Patent and Trademark Office or any court) involving such Grantor regarding any material item of the Intellectual Property Collateral.

 (c) In the event that any Grantor becomes aware that any material item of the Intellectual Property Collateral is being
infringed or misappropriated by a third party in a manner that may be expected to have a Material Adverse Effect, then, such Grantor shall promptly notify (it being understood that notification need not be given more than once in each fiscal
quarter) the Collateral Agent and shall take commercially reasonable actions, at its expense, to protect or enforce such Intellectual Property Collateral, including, without limitation, suing for infringement or misappropriation and for an
injunction against such infringement or misappropriation, except to the extent that the failure to do so would not be reasonably likely to result in a Material Adverse Effect. 
 (d) With respect to its Intellectual Property Collateral, each Grantor agrees to execute or otherwise authenticate an agreement, in substantially the form set forth in Exhibit B hereto or otherwise in
form and substance reasonably satisfactory to the Collateral Agent (an “Intellectual Property Security Agreement”), for recording the security interest granted hereunder to the Collateral Agent in such Intellectual Property
Collateral with the U.S. Patent and Trademark Office, the U.S. Copyright Office in such Intellectual Property Collateral. 
 (e)
Each Grantor agrees that should it obtain an ownership interest in any item of the type set forth in Section 1(g) that is not on the date hereof a part of the Intellectual Property Collateral (“After-Acquired Intellectual
Property”) (i) the provisions of this Agreement shall automatically apply thereto, and (ii) any such After-Acquired Intellectual Property and, in the case of trademarks, the goodwill symbolized thereby, shall automatically
become part of the Intellectual Property Collateral subject to the terms and conditions of this Agreement with respect thereto. Contemporaneously with the delivery of any certificate of a Financial Officer of the Borrower pursuant to
Section 5.01(c) of the Credit Agreement, each Grantor shall give written notice to the Collateral Agent identifying the registered After-Acquired Intellectual Property (or applications therefor) acquired or exclusively licensed to Grantor
during such fiscal quarter, and such Grantor shall execute and deliver to the Collateral Agent with such written notice, or otherwise authenticate, an agreement substantially in the form of Exhibit C hereto or otherwise in form and substance
reasonably satisfactory to the Collateral Agent (an “IP Security Agreement Supplement”) covering such After-Acquired Intellectual Property, which IP Security Agreement Supplement shall be recorded with the U.S. Patent and
Trademark Office and the U.S. Copyright Office (as applicable). 
 Section 11. Voting Rights; Dividends; Etc. (a) So
long as no Event of Default shall have occurred and be continuing: 
 (i) Each Grantor shall be entitled to
exercise any and all voting and other consensual rights pertaining to the Security Collateral of such Grantor or any part thereof 

  
 16 









 
for any purpose; provided, however, that such Grantor will not exercise or refrain from exercising any such right if such action would have a material adverse effect on the value of
the Security Collateral or any part thereof. 
 (ii) Each Grantor shall be entitled to receive and retain any and
all dividends, interest and other distributions paid in respect of the Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents; provided, however,
that any and all dividends, interest and other distributions paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Security
Collateral shall be, and shall be forthwith delivered to the Collateral Agent to hold as, Security Collateral and shall, if received by such Grantor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property
or funds of such Grantor and be forthwith delivered to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement). 

(iii) The Collateral Agent will execute and deliver (or cause to be executed and delivered) to each Grantor all such
proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above and to receive the dividends
or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above. 
 (b) Upon the
occurrence and during the continuance of an Event of Default: 
 (i) All rights of each Grantor (x) to
exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 11(a)(i) shall, upon notice to such Grantor by the Collateral Agent, cease and (y) to receive
the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to Section 11(a)(ii) shall automatically cease, and all such rights shall thereupon become vested in the Collateral Agent,
which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions. 

(ii) All dividends, interest and other distributions that are received by any Grantor contrary to the provisions of
paragraph (i) of this Section 11(b) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in
the same form as so received (with any necessary indorsement). 
 Section 12. As to the Assigned Agreements. (a) Each
Grantor will at its expense: 
 (i) perform and observe all terms and provisions of the Assigned Agreements to be
performed or observed by it, maintain the Assigned Agreements to which it is a party in full force and effect, enforce the Assigned Agreements to which it is a party in accordance with the terms thereof and take all such action to such end as may be
requested from time to time by the Collateral Agent; and 

  
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 (ii) furnish to the Collateral Agent promptly upon receipt thereof copies of
all notices, requests and other documents received by such Grantor under or pursuant to the Assigned Agreements to which it is a party, and from time to time (A) furnish to the Collateral Agent such information and reports regarding the
Assigned Agreements and such other Collateral of such Grantor as the Collateral Agent may reasonably request and (B) upon request of the Collateral Agent, make to each other party to any Assigned Agreement to which it is a party such demands
and requests for information and reports or for action as such Grantor is entitled to make thereunder. 
 (b) Each Grantor
hereby consents on its behalf and on behalf of its Subsidiaries to the assignment and pledge to the Collateral Agent for benefit of the Secured Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder. 

Section 13. As to Letter-of-Credit Rights. (a) Each Grantor, by granting a security interest in its Receivables consisting of
letter-of-credit rights to the Collateral Agent, intends to (and hereby does) assign to the Collateral Agent its rights (including its contingent rights) to the proceeds of all Related Contracts consisting of letters of credit in an amount
individually in excess of $500,000 of which it is or hereafter becomes a beneficiary or assignee. Each Grantor will promptly use its commercially reasonable efforts to cause the issuer of each such letter of credit and each nominated person (if any)
with respect thereto to consent to such assignment of the proceeds thereof pursuant to a consent in form and substance reasonably satisfactory to the Collateral Agent and deliver written evidence of such consent to the Collateral Agent. 

(b) Upon the occurrence of an Event of Default, each Grantor will, promptly upon request by the Collateral Agent, (i) notify (and
such Grantor hereby authorizes the Collateral Agent to notify) the issuer and each nominated person with respect to each of the Related Contracts consisting of letters of credit that the proceeds thereof have been assigned to the Collateral Agent
hereunder and any payments due or to become due in respect thereof are to be made directly to the Collateral Agent or its designee and (ii) arrange for the Collateral Agent to become the transferee beneficiary of letter of credit. 

Section 14. Commercial Tort Claims. Each Grantor will promptly give notice to the Collateral Agent of any commercial tort
claim with an amount in controversy in excess of $750,000 that may arise after the date hereof and will immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to subject such commercial
tort claim to the first priority security interest created under this Agreement. 
 Section 15. Transfers and Other
Liens; Additional Shares. (a) Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or grant any option with respect to, any of the Collateral, other than sales, assignments and other dispositions of Collateral, and
options relating to Collateral, permitted under the terms of the Credit Agreement, or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor except for the pledge, assignment and security interest
created under this Agreement and Liens permitted under the Credit Agreement. 

  
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 (b) Each Grantor agrees that it will (i) cause each subsidiary of Holdings that is an
issuer of the Pledged Equity pledged by such Grantor not to issue any Equity Interests or other securities in addition to or in substitution for the Pledged Equity issued by such issuer, except to such Grantor, and (ii) pledge hereunder,
promptly upon its acquisition (directly or indirectly) thereof, any and all additional Equity Interests or other securities. 

Section 16. Collateral Agent Appointed Attorney in Fact. Solely to the extent permitted by applicable law, each Grantor
hereby irrevocably appoints the Collateral Agent such Grantor’s attorney in fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, upon the occurrence and during the
continuance of an Event of Default, in the Collateral Agent’s discretion, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation: 
 (a) to obtain and adjust insurance required to be paid to the Collateral Agent pursuant to
Section 8, 
 (b) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral (except in respect of Medicare and Medicaid receivables to the extent prohibited by applicable law), 

(c) to receive, indorse and collect any drafts or other instruments, documents and chattel paper, in connection with
clause (a) or (b) above (except in respect of Medicare and Medicaid receivables to the extent prohibited by applicable law), and 
 (d) to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce
compliance with the terms and conditions of any Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral (except in respect of Medicare and Medicaid receivables to the extent prohibited by applicable law).

 Section 17. Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, the
Collateral Agent may, but without any obligation to do so and without notice, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by such Grantor under
Section 20. 
 Section 18. The Collateral Agent’s Duties. (a) The powers conferred on the Collateral Agent
hereunder are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any


  
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Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other
rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that
which it accords its own property. 
 (b) Anything contained herein to the contrary notwithstanding, the Collateral Agent may
from time to time, when the Collateral Agent deems it to be necessary, appoint one or more subagents (each a “Subagent”) for the Collateral Agent hereunder with respect to all or any part of the Collateral. In the event that
the Collateral Agent so appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this
Security Agreement to have been made to such Subagent, in addition to the Collateral Agent, for the ratable benefit of the Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically be
vested, in addition to the Collateral Agent, with all rights, powers, privileges, interests and remedies of the Collateral Agent hereunder with respect to such Collateral, and (iii) the term “Collateral Agent,” when used herein in
relation to any rights, powers, privileges, interests and remedies of the Collateral Agent with respect to such Collateral, shall include such Subagent; provided, however, that no such Subagent shall be authorized to take any action
with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Collateral Agent. 

Section 19. Remedies. If any Event of Default shall have occurred and be continuing: 

(a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for
herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) (except in respect of Medicare and Medicaid receivables to the extent
prohibited by applicable law) and also may (except in respect of Medicare and Medicaid receivables to the extent prohibited by applicable law): (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon
request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent (subject to confidentiality agreements required by applicable law; provided,
that (i) each Grantor shall use reasonable best efforts to provide such information consistent with such confidentiality requirements including, without limitation, pursuant to regulations that may permit disclosure under its health care
operations (under and as defined in HIPAA) and the Business Associate Agreement subject to the HIPAA minimum necessary requirement and (ii) to the extent that any Grantor is a “covered entity” under HIPAA, none of them shall by
contract prohibit disclosure by any of the other of them to the Collateral Agent that is not otherwise prohibited by HIPAA) at a place and time to be designated by the Collateral Agent that is reasonably convenient to both parties; (ii) without
notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other
terms as the Collateral Agent may deem commercially reasonable; (iii) occupy any premises owned or 

  
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leased by any of the Grantors where the Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law,
without obligation to such Grantor in respect of such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of the Collateral, including, without
limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Assigned Agreements, the Receivables, the Related Contracts and the other Collateral and
(B) exercise all other rights and remedies with respect to the Assigned Agreements, the Receivables, the Related Contracts and the other Collateral, including, without limitation, those set forth in Section 9-607 of the UCC. Each Grantor
agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
 (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds received by or on behalf of the Collateral Agent in respect of any sale of, collection from, or other realization upon all
or any part of the Collateral may, in the discretion of the Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to
Section 20) in whole or in part by the Collateral Agent for the ratable benefit of the Secured Parties against, all or any part of the Secured Obligations, in the following manner: 

(i) first, towards the payment of indemnities, fees and expenses of the Agents then due; 

(ii) second, towards the payment of principal (other than principal amounts of the Term Loans attributable to a PIK
Election), obligations in respect of Secured Cash Management Agreements and unreimbursed LC Disbursements then due; and 
 (iii) third, towards the payment of principal amounts of the Term Loans attributable to a PIK Election and interest and commitment fees then due. 

Any surplus of such cash or cash proceeds held by or on the behalf of the Collateral Agent and remaining after payment in full of all the
Secured Obligations shall be paid over to the applicable Grantor or to whomsoever may be lawfully entitled to receive such surplus. 
 (c) All payments received by any Grantor under or in connection with any Assigned Agreement or otherwise in respect of the Collateral shall be received in trust for the benefit of the Collateral Agent,
shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received (with any necessary indorsement). 

  
 21 









 (d) The Collateral Agent may, without notice to any Grantor except as
required by law and at any time or from time to time, charge, set off and otherwise apply all or any part of the Secured Obligations against any funds held with respect to the Pledged Deposit Accounts or in any other deposit account. 

(e) The Collateral Agent may send to each bank, securities intermediary or issuer party to any Uncertificated Security
Control Agreement a “Notice of Exclusive Control” as defined in and under such Agreement. 
 (f) In the
event of any sale or other disposition of any of the Intellectual Property Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the
Collateral Agent or its designee such Grantor’s know-how and expertise, and documents and things relating to any Intellectual Property Collateral subject to such sale or other disposition, and such Grantor’s customer lists and other
records and documents relating to such Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of products and services of such Grantor, in each case subject to confidentiality agreements imposed by applicable
law; provided, that (i) each Grantor shall use reasonable best efforts to provide such information consistent with such confidentiality requirements including, without limitation, pursuant to regulations that may permit disclosure under
its health care operations (under and as defined in HIPAA) subject to the HIPAA minimum necessary requirement and (ii) to the extent that any Grantor is a “covered entity” under HIPAA, none of them shall by contract prohibit
disclosure by any of the other of them to the Collateral Agent that is not otherwise prohibited by HIPAA. 
 Section 20. As
to Equipment. Each Grantor will keep its Equipment at the places therefor specified in Section 5(c) or, upon 30 days’ prior written notice to the Collateral Agent, at such other places designated by such Grantor in such notice.

 (a) Indemnity and Expenses. Each Grantor agrees to indemnify, defend and save and hold harmless each Secured Party and
each of their Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or resulting from this Agreement
(including, without limitation, enforcement of this Agreement), except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s gross negligence or willful misconduct. 
 (b) Each Grantor will upon demand pay to the Collateral
Agent the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any experts and agents, that the Collateral Agent may incur in connection with (i) the administration of
this Agreement, (ii) the custody, preservation, use or operation of, or the 

  
 22 









 
sale of, collection from or other realization upon, any of the Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or the other Secured
Parties hereunder or (iv) the failure by such Grantor to perform or observe any of the provisions hereof. 
 Section
21. Amendments; Waivers; Additional Grantors; Etc. (a) No amendment or waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom, shall in any event be effective unless the same shall be in
writing and signed by the Collateral Agent and otherwise in accordance with Section 9.02 of the Credit Agreement, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No
failure on the part of the Collateral Agent or any other Secured Party to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. 
 (b) Upon the execution and delivery by any Person of a security
agreement supplement in substantially the form of Exhibit D hereto (each a “Security Agreement Supplement”), such Person shall be referred to as an “Additional Grantor” and shall be and become a
Grantor hereunder, and each reference in this Agreement and the other Loan Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, each reference in this Agreement and the other Loan Documents to the
“Collateral” shall also mean and be a reference to the Collateral granted by such Additional Grantor and each reference in this Agreement to a Schedule shall also mean and be a reference to the schedules attached to such Security Agreement
Supplement. 
 Section 22. Notices, Etc. All notices and other communications provided for hereunder shall be either
(i) in writing (including telegraphic, telecopier or telex communication) and mailed, telegraphed, telecopied, telexed or otherwise delivered or (ii) by electronic mail (if electronic mail addresses are designated as provided below)
confirmed immediately in writing, in the case of the Borrower or the Collateral Agent, addressed to it at its address specified in the Credit Agreement and, in the case of each Grantor other than the Borrower, addressed to it at its address set
forth opposite such Grantor’s name on the signature pages hereto or on the signature page to the Security Agreement Supplement pursuant to which it became a party hereto; or, as to any party, at such other address as shall be designated by such
party in a written notice to the other parties. All such notices and other communications shall, when mailed, telegraphed, telecopied, telexed, sent by electronic mail or otherwise, be effective when deposited in the mails, delivered to the
telegraph company, telecopied, confirmed by telex answerback, sent by electronic mail and confirmed in writing, or otherwise delivered (or confirmed by a signed receipt), respectively, addressed as aforesaid; except that notices and other
communications to the Collateral Agent shall not be effective until received by the Collateral Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Security Agreement
Supplement or Schedule hereto shall be effective as delivery of an original executed counterpart thereof. 
 Section
23. Continuing Security Interest; Assignments under the Credit Agreement. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the latest of (i) the
payment in full in cash of the Secured Obligations, (ii) the Term Loan Maturity Date and (iii) the termination or expiration of all Letters 

  
 23 









 
of Credit (other than Letters of Credit that are cash collateralized or backstopped by another letter of credit, in each case on terms to the reasonable satisfaction of the Administrative Agent
and the Issuing Bank) and all Secured Cash Management Agreements, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the
Secured Parties and their respective successors, transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender may assign or otherwise transfer all or any portion of its rights and obligations under the Credit
Agreement (including, without limitation, all or any portion of its Commitment(s), the Loans owing to it and any promissory note or notes, if any, held by it) to any other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to such Lender herein or otherwise, in each case as provided in Section 9.04 of the Credit Agreement. 
 Section 24. Release; Termination. (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor in accordance with the terms of the Loan Documents (other
than sales of Inventory in the ordinary course of business), the Collateral Agent will, at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence the release of such item
of Collateral from the assignment and security interest granted hereby; provided, however, that (i) at the time of such request and such release no Default shall have occurred and be continuing, (ii) such Grantor shall have
delivered to the Collateral Agent, at least ten Business Days prior to the date of the proposed release, a written request for release describing the item of Collateral and the terms of the sale, lease, transfer or other disposition in reasonable
detail, including, without limitation, the price thereof and any expenses in connection therewith, together with a form of release for execution by the Collateral Agent and a certificate of such Grantor to the effect that the transaction is in
compliance with the Loan Documents and as to such other matters as the Collateral Agent may request and (iii) the proceeds of any such sale, lease, transfer or other disposition required to be applied, or any payment to be made in connection
therewith, in accordance with Section 2.11 of the Credit Agreement shall, to the extent so required, be paid or made to, or in accordance with the instructions of, the Collateral Agent when and as required under Section 2.11 of the Credit
Agreement. 
 (b) Upon the latest of (i) the payment in full in cash of the Secured Obligations, (ii) the Term Loan
Maturity Date and (iii) the termination or expiration of all Letters of Credit (other than Letters of Credit that are cash collateralized or backstopped by another letter of credit, in each case to the reasonable satisfaction of the
Administrative Agent and the Issuing Bank) and all Secured Cash Management Agreements, the pledge and security interest granted hereby shall terminate and all rights to the Collateral shall revert to the applicable Grantor. Upon any such
termination, the Collateral Agent will, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 

Section 25. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of an
original executed counterpart of this Agreement. 

  
 24 









 Section 26. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York. 

  
 25 









 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written. 
  

							
	 Address for Notices:

5340 Legacy Drive, Suite 150
 Plano, TX
75024
	 		 	 LIFECARE HOLDINGS, INC.
 LCI HOLDCO, LLC
 CRESCENT CITY HOSPITALS, L.L.C.

LIFECARE INVESTMENTS, L.L.C.
 LIFECARE MANAGEMENT
SERVICES, L.L.C.
 LIFECARE HOLDING COMPANY OF TEXAS,
 L.L.C.
 LIFECARE HOSPITALS OF NEW ORLEANS,
 L.L.C.
 NEXTCARE HOSPITALS / MUSKEGON, INC.
 LIFECARE REIT 1, INC.

				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	Name: Chris Walker
		 		 		 	Title: Chief Financial Officer
			
	 Address for Notices:

6201 Overton Ridge Blvd.
	 		 	 LIFECARE HOSPITALS OF FORT WORTH,
 L.P.

	 Fort Worth, TX 76132
	 		 	  By:	 	 LifeCare Holding Company of
Texas, L.L.C., its General Partner

				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	Name: Chris Walker
		 		 		 	Title: Chief Financial Officer
			
	 Address for Notices:

6161 Harry Hines Blvd., Suite 110
	 		 	 LIFECARE HOSPITALS OF NORTH TEXAS,
 L.P.

	 Dallas, TX 75235
	 		 	  By:	 	 LifeCare Holding Company of
Texas, L.L.C., its General Partner

				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	Name: Chris Walker
		 		 		 	Title: Chief Financial Officer









							
	 Address for Notices:

225 Penn Avenue
 Pittsburgh, PA
15221
	 		 	LIFECARE HOSPITALS OF PITTSBURGH, LLC
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

	 Address for Notices:

1031 Noell Lane
 Rocky Mount, NC
27804
	 		 	LIFECARE HOSPITALS OF NORTH CAROLINA, L.L.C.
				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

9320 Linwood Avenue
 Shreveport, LA
71106
	 		 	LIFECARE HOSPITALS, LLC
				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

400 E. Marshall Street
 West Chester, PA
19380
	 		 	 LIFECARE HOSPITALS OF CHESTER
 COUNTY, INC.

				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

4000 Miamisburg-Centerville Rd.
 Miamisburg, OH
45342
	 		 	LIFECARE HOSPITALS OF DAYTON, INC.
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer










							
	Address for Notices:	 		 	SAN ANTONIO SPECIALTY HOSPITAL, LTD.
	 8026 Floyd Curl Drive
 San
Antonio, TX 78240
	 		 	  By:	 	 LifeCare Holding Company of
Texas, L.L.C., its General Partner

				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

2001 S. “M” Street
	 		 	 LIFECARE HOSPITALS OF SOUTH TEXAS,
 INC.

	McAllen, TX 78503	 		 		 	
				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

2400 Golf Road
	 		 	 LIFECARE HOSPITALS OF MILWAUKEE,
 INC.

	 Pewaukee, WI 53072
	 		 		 	
				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

201 West Liberty Street, Suite 310
	 		 	 LIFECARE HOSPITALS OF NORTHERN
 NEVADA, INC.

	Reno, NV 89501	 		 		 	
				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

			
	 Address for Notices:

1690 N. Meade Street
 Denver, CO
80204
	 		 	 NEXTCARE SPECIALTY HOSPITAL OF DENVER,
 INC.

				
		 		 	By	 	 /s/ Chris Walker

		 		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer









 Exhibit B to the 
 Security Agreement 
 INTELLECTUAL PROPERTY SECURITY AGREEMENT

 This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “IP Security Agreement”) dated February 1, 2011, is made by the Persons listed on the signature pages hereof (collectively, the “Grantors”) in favor of JPMorgan Chase Bank, N.A.
(“JPMorgan”), as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below). 
 (1) WHEREAS, LifeCare Holdings, Inc., a Delaware corporation, has entered into a Credit Agreement dated as of February 1, 2011 (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), with LCI Holdco, LLC, a Delaware limited liability company, certain Lenders party thereto and JPMorgan Chase Bank, N.A., as Collateral Agent and Administrative Agent for such
Lenders. Terms defined in the Credit Agreement or the Security Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement or the Security Agreement. 

WHEREAS, as a condition precedent to the making of Loans and the issuance of Letters of Credit by the Lender Parties under the Credit
Agreement and the entry into Secured Cash Management Agreements by the Cash Management Banks from time to time, each Grantor has executed and delivered that certain Security Agreement dated February 1, 2011 made by the Grantors to the
Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”). 
 WHEREAS, under the terms of the Security Agreement, the Grantors have granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in, among other property, certain
intellectual property of the Grantors, and have agreed as a condition thereof to execute this IP Security Agreement for recording with the U.S. Patent and Trademark Office, the United States Copyright Office and other governmental authorities.

 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each
Grantor agrees as follows: 
 SECTION 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent for the
ratable benefit of the Secured Parties a security interest in all of such Grantor’s right, title and interest in and to the following (the “Collateral”): 

(i) the patents and patent applications set forth in Schedule A hereto (the “Patents”);

 (ii) the trademark and service mark registrations and applications set forth in Schedule B hereto (provided
that no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such
intent-to-use trademark applications under applicable federal law), together with the goodwill symbolized thereby (the “Trademarks”); 

  
 B-1









 (iii) all copyrights, whether registered or unregistered, now owned or
hereafter acquired by such Grantor, including, without limitation, the copyright registrations and applications and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”); 

(iv) all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the
foregoing, all rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto;

 (v) any and all claims for damages and injunctive relief for past, present and future infringement, dilution,
misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages; and 

(vi) any and all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with
respect to, and supporting obligations relating to, any and all of the Collateral of or arising from any of the foregoing. 

SECTION 2. Security for Obligations. The grant of a security interest in, the Collateral by each Grantor under this IP Security
Agreement secures the payment of all Secured Obligations, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action,
costs, expenses or otherwise. Without limiting the generality of the foregoing, this IP Security Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would be owed by such Grantor
to any Secured Party under the Loan Documents but for the fact that such Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 

SECTION 3. Recordation. Each Grantor authorizes and requests that the Register of Copyrights and the Commissioner for Patents and
the Commissioner for Trademarks record this IP Security Agreement. 
 SECTION 4. Execution in Counterparts. This IP
Security Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

SECTION 5. Grants, Rights and Remedies. This IP Security Agreement is expressly subject to the terms and conditions of the
Security Agreement and does not modify its terms or conditions or create any additional rights or obligations for any party thereto or hereto. Each Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and
the rights and remedies of, the Collateral Agent with respect to the Collateral are more fully set forth in the Security Agreement. 

  
 B-2









 SECTION 6. Governing Law. This IP Security Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York. 

  
 B-3









 IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to be duly executed
and delivered by its officer thereunto duly authorized as of the date first above written. 
  

					
	 Address for Notices:

5340 Legacy Drive, Suite 150
 Plano, TX
75024
	 	 LIFECARE HOLDINGS, INC.
 LCI HOLDCO, LLC
 CRESCENT CITY HOSPITALS, L.L.C.

LIFECARE INVESTMENTS, L.L.C.
 LIFECARE MANAGEMENT
SERVICES, L.L.C.
 LIFECARE HOLDING COMPANY OF TEXAS, L.L.C.
 LIFECARE HOSPITALS OF NEW ORLEANS, L.L.C.
 NEXTCARE HOSPITALS / MUSKEGON, INC.

LIFECARE REIT 1, INC.

			
		 	By	 	 /s/ Chris Walker
 Name: Chris Walker
 Title: Chief Financial Officer

		
	Address for Notices:	 	LIFECARE HOSPITALS OF FORT WORTH, L.P.
	 6201 Overton Ridge Blvd.
 Fort Worth, TX 76132
	 	  By:	 	 LifeCare Holding Company of
Texas, L.L.C., its General Partner

	 	  
 By
	 	  
 /s/ Chris Walker

Name: Chris Walker
 Title: Chief Financial
Officer

		
	Address for Notices:	 	LIFECARE HOSPITALS OF NORTH TEXAS, L.P.
	 6161 Harry Hines Blvd., Suite 110
 Dallas, TX 75235
	 	  By:	 	 LifeCare Holding Company of
Texas, L.L.C., its General Partner

	 	  
 By
	 	  
 /s/ Chris Walker

Name: Chris Walker
 Title: Chief Financial
Officer










					
	 Address for Notices:

225 Penn Avenue
 Pittsburgh, PA
15221
	 	LIFECARE HOSPITALS OF PITTSBURGH, LLC
			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

1031 Noell Lane
 Rocky Mount, NC
27804
	 	LIFECARE HOSPITALS OF NORTH CAROLINA, L.L.C.
			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

9320 Linwood Avenue
 Shreveport, LA
71106
	 	LIFECARE HOSPITALS, LLC
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

400 E. Marshall Street
 West Chester, PA
19380
	 	LIFECARE HOSPITALS OF CHESTER COUNTY, INC.
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

4000 Miamisburg-Centerville Rd.
 Miamisburg, OH
45342
	 	LIFECARE HOSPITALS OF DAYTON, INC.
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer










					
	 Address for Notices:

8026 Floyd Curl Drive
 San Antonio, TX
78240
	 	 SAN ANTONIO SPECIALTY HOSPITAL, LTD.

By: LifeCare Holding Company of Texas, L.L.C., its General Partner

			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

2001 S. “M” Street
 McAllen, TX
78503
	 	LIFECARE HOSPITALS OF SOUTH TEXAS, INC.
			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

2400 Golf Road
 Pewaukee, WI
53072
	 	LIFECARE HOSPITALS OF MILWAUKEE, INC.
			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

201 West Liberty Street, Suite 310
 Reno, NV
89501
	 	LIFECARE HOSPITALS OF NORTHERN NEVADA, INC.
			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer

		
	 Address for Notices:

1690 N. Meade Street
 Denver, CO
80204
	 	NEXTCARE SPECIALTY HOSPITAL OF DENVER, INC.
			
		 	By	 	 /s/ Chris Walker

		 		 	 Name: Chris Walker
 Title:
Chief Financial Officer









 Exhibit C to the 
 Security Agreement 
 FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT
SUPPLEMENT 
 This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this “IP Security Agreement
Supplement”) dated                     , 20    , is made by the Person listed on the signature page
hereof (the “Grantor”) in favor of JPMorgan Chase Bank, N.A. (“JPMorgan”), as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to
below). 
 WHEREAS, LifeCare Holdings, Inc., a Delaware corporation, has entered into a Credit Agreement dated as of
February 1, 2011 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), with LCI Holdco, LLC, a Delaware limited liability company, certain Lenders party thereto
and JPMorgan Chase Bank, N.A., as Collateral Agent and Administrative Agent for such Lenders. Terms defined in the Credit Agreement or the Security Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement or the
Security Agreement. 
 WHEREAS, pursuant to the Credit Agreement, the Grantor and certain other Persons have executed and
delivered that certain Security Agreement dated February 1, 2011 made by the Grantor and such other Persons to the Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Security Agreement”) and that certain Intellectual Property Security Agreement dated February 1, 2011 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “IP Security
Agreement”). 
 WHEREAS, under the terms of the Security Agreement, the Grantor has granted to the Collateral
Agent, for the ratable benefit of the Secured Parties, a security interest in the Additional Collateral (as defined in Section 1 below) of the Grantor and has agreed as a condition thereof to execute this IP Security Agreement Supplement for
recording with the U.S. Patent and Trademark Office, the United States Copyright Office and other governmental authorities. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees as
follows: 
 SECTION 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of
the Secured Parties, a security interest in all of such Grantor’s right, title and interest in and to the following (the “Additional Collateral”): 

(i) the patents and patent applications set forth in Schedule A hereto (the “Patents”);

 (ii) the trademark and service mark registrations and applications set forth in Schedule B hereto (provided
that no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such
intent-to-use trademark applications under applicable federal law), together with the goodwill symbolized thereby (the “Trademarks”); 

  
 C-1









 (iii) the copyright registrations and applications and exclusive copyright
licenses set forth in Schedule C hereto (the “Copyrights”); 
 (iv) all reissues,
divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world
and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; 
 (v) all
any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and
collect, or otherwise recover, such damages; and 
 (vi) any and all proceeds of, collateral for, income,
royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the foregoing or arising from any of the foregoing. 

SECTION 2. Security for Obligations. The grant of a security interest in the Additional Collateral by the Grantor under this IP
Security Agreement Supplement secures the payment of all Secured Obligations, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract
causes of action, costs, expenses or otherwise. 
 SECTION 3. Recordation. The Grantor authorizes and requests that the
Register of Copyrights and the Commissioner for Patents and the Commissioner for Trademarks record this IP Security Agreement Supplement. 
 SECTION 4. Grants, Rights and Remedies. This IP Security Agreement Supplement is expressly subject to the terms and conditions of the Security Agreement and does not modify its terms or conditions
or create any additional rights or obligations for any party thereto or hereto. The Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of, the Collateral Agent with respect
to the Additional Collateral are more fully set forth in the Security Agreement. 
 SECTION 5. Governing Law. This IP
Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of the State of New York. 

  
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 IN WITNESS WHEREOF, the Grantor has caused this IP Security Agreement Supplement to be duly
executed and delivered by its officer thereunto duly authorized as of the date first above written. 
  

			
	By	 	  

		 	    Name:
		 	    Title:
	
	Address for Notices:
	  

	  

	  




  
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 Exhibit D to the 
 Security Agreement 
 FORM OF SECURITY AGREEMENT SUPPLEMENT

 [Date of Security Agreement Supplement] 
 JPMorgan Chase Bank, N.A., as the Collateral Agent for 
 the Secured Parties referred to in the

 Credit Agreement referred to below 
  

					
	  
	 	
	  
	 	
	Attn:	 	  
	 	

 LifeCare Holdings, Inc 
 Ladies and Gentlemen: 
 Reference is made to (i) the Credit Agreement dated
as of February 1, 2011 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among LifeCare Holdings, Inc., a Delaware corporation, as the Borrower, with LCI
Holdco, LLC, a Delaware limited liability company, certain Lenders party thereto and JPMorgan Chase Bank, N.A., as Collateral Agent (together with any successor collateral agent appointed pursuant to Article VIII of the Credit Agreement, the
“Collateral Agent”), and as Administrative Agent for such Lenders, and (ii) the Security Agreement dated February 1, 2011 (as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Security Agreement”) made by the Grantors from time to time party thereto in favor of the Collateral Agent for the Secured Parties. Terms defined in the Credit Agreement or the Security Agreement and not otherwise defined
herein are used herein as defined in the Credit Agreement or the Security Agreement. 
 SECTION 1. Grant of Security. The
undersigned hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in all of its right, title and interest in and to all of the Collateral of the undersigned whether now owned or hereafter acquired
by the undersigned, wherever located and whether now or hereafter existing or arising, including, without limitation, the property and assets of the undersigned as set forth on the attached supplemental schedules to the schedules to the Security
Agreement. 
 SECTION 2. Security for Obligations. The grant of a security interest in, the Collateral by the undersigned
under this Security Agreement Supplement and the Security Agreement secures the payment of all Secured Obligations, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums,
penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this Security Agreement Supplement and the Security Agreement secures the payment of all amounts that
constitute part of the Secured Obligations and that would be owed by the undersigned to any Secured Party under the Loan Documents and/or the Assigned Agreements but for the fact that such Secured Obligations are unenforceable or not allowable due
to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 

  
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 SECTION 3. Representations and Warranties. (a) The undersigned hereby makes each
representation and warranty set forth in Section 8 of the Security Agreement (as supplemented by the attached supplemental schedules) with respect to itself and the Collateral granted by it. 

SECTION 4. Obligations Under the Security Agreement. The undersigned hereby agrees, as of the date first above written, to be
bound as a Grantor by all of the terms and provisions of the Security Agreement to the same extent as each of the other Grantors. The undersigned further agrees, as of the date first above written, that each reference in the Security Agreement to an
“Additional Grantor” or a “Grantor” shall also mean and be a reference to the undersigned, that each reference to the “Collateral” or any part thereof shall also mean and be a reference to the undersigned’s
Collateral or part thereof, as the case may be, and that each reference in the Security Agreement to a Schedule shall also mean and be a reference to the schedules attached hereto. 

SECTION 5. Governing Law. This Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of
the State of New York. 
  

					
	 Very truly yours,

	
	[NAME OF ADDITIONAL GRANTOR]
		
	By	 	  

		 	Title:
			
		 		 	Address for notices:
		 		 	  

		 		 	  

		 		 	  




  
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