Document:

EX-10.18

 Exhibit 10.18 

Loan No. 476300 
 PROMISSORY NOTE SECURED
BY DEED OF TRUST 
 (One-Month LIBO Rate; Adjusted Monthly) 

 

			
	$9,581,000.00	 	Date: May 15, 2013

  

	1.	PROMISE TO PAY. FOR VALUE RECEIVED, the undersigned CONCORDE REAL ESTATE, LLC, a Nevada limited liability company (“Borrower”) promises to pay to the order of WELLS FARGO BANK, NATIONAL
ASSOCIATION (“Lender”), at the Minneapolis Loan Center, 608 2nd Ave South, 11th Floor, Minneapolis, MN 55402, or at such other place as may be designated in writing by Lender, the
principal sum of NINE MILLION FIVE HUNDRED EIGHTY-ONE THOUSAND AND NO/1OOTHS DOLLARS ($9,581,000.00) or so much thereof as may from time to time be owing hereunder by reason of advances by Lender to or for the benefit or account of Borrower
(“Loan”), with interest thereon, per annum, at one or more of the Effective Rates (as hereinafter defined) calculated in accordance with the terms and provisions of the Fixed Rate Agreement attached to this note (“Note”) as
Exhibit A (based on a 360-day year and charged on the basis of actual days elapsed). All sums owing hereunder are payable in lawful money of the United States of America, in immediately available funds without offset, deduction or counterclaim of
any kind. The Borrower and Lender are collectively referred to herein as the “Parties.” 

  

	2.	INTEREST. Interest accrued on this Note shall be due and payable on the fifteenth (15th) day of each month (or, if such day is not a Business Day,
on the next Business Day) commencing with the first (lst) month after the date of this Note. 

  

	3.	INTEREST AND PRINCIPAL PAYMENTS. Monthly principal installments in the amount of $53,227.78 shall be due and payable on the fifteenth (15th) day of
each month (or, if such day is not a Business Day, on the next Business Day), commencing with June 15, 2013, with a final installment consisting of all remaining unpaid principal and accrued interest due and payable in full on the Maturity Date
(as defined below). 

  

	4.	BILL LEAD DATE REQUEST. By written notice to Lender, Borrower may request to receive monthly billings on a date (the “Bill Lead Date”) that is prior to the fifteenth (15th) day of the month. Lender will submit to Borrower monthly billings, which will consist of actual interest and principal due through the Bill Lead Date plus projected interest and principal due
through the balance of the month. Any necessary adjustments in the applicable interest rate and/or principal payments due or made between a Bill Lead Date and the end of the month will be reflected as an additional charge (or credit) in the billing
for the next following month. Neither the failure of Lender to submit a Bill Lead Date billing nor any error in any such billing will excuse Borrower’s obligation to make full payment of all amounts due under this Note. In its sole discretion,
Lender may cancel or modify the terms of such request which cancellation or modification will be effective upon written notification to Borrower. Should Borrower request a Bill Lead Date, Lender shall not be required to prepare a month end invoice.

  

	5.	MATURITY DATE. The outstanding principal balance of this Note, together with all accrued and unpaid interest, shall be due and payable in full on May 15, 2018 (“Maturity Date”). Principal
amounts outstanding hereunder, upon which repayment obligations exist and interest accrues, shall be determined by the records of the Lender, which shall be deemed to be conclusive in the absence of clear and convincing evidence to the contrary
presented by Borrower. 

  

	6.	 SECURED BY DEED OF TRUST. This Note is secured by, among other things, that certain Construction Deed of Trust with Absolute Assignment
of Leases and Rents, Security Agreement and Fixture Filing dated June 27, 2012, executed by Borrower, as trustor, to American Securities Company of Nevada, a Nevada corporation, as trustee, for the benefit of Lender, as beneficiary, and
recorded on July 10, 

	 	
2012 as Instrument No. 201207100000082 in the official records of Clark County, Nevada (“Official Records”) as modified by that certain Modification Agreement (“Modification
Agreement”) of even date herewith by and between Borrower and Lender, a memorandum (“Memorandum”), of which is being recorded concurrently herewith in the Official Records (as modified, the “Deed of Trust’’), and the
other Loan Documents as defined in that certain Loan Agreement of even date herewith, executed by Borrower and Lender (as the same may be amended or restated from time to time, the “Loan Agreement”). Reference is made to the Loan Agreement
for a description of the terms and conditions upon which advances may be made under this Note and repayment of the indebtedness evidenced by this Note may be accelerated. 

 

	7.	DIRECT DEBIT. In order to assure timely payment to Lender of accrued interest, principal, fees and late charges due and owing under the loan evidenced by this Note, Borrower hereby irrevocably authorizes
Lender to directly debit Borrower’s demand deposit account, account no. ***, with Lender for payment when due of all such amounts payable to Lender. Borrower represents and warrants to Lender that Borrower is the legal owner of said account.
Written confirmation of the amount and purpose of any such direct debit shall be given to Borrower by Lender not less frequently than monthly. In the event any direct debit hereunder is returned for insufficient funds, Borrower shall pay Lender upon
demand, in immediately available funds, all amounts and expenses due and owing to Lender. 

  

	8.	LATE CHARGE. If any interest or principal payment required hereunder is not received by Lender (whether by direct debit or otherwise) on or before the
15th calendar day of the month (regardless of whether the 15th day falls on a Saturday, Sunday or legal holiday) in which ii becomes due,
Borrower shall pay, at Lender’s option, a late or collection charge equal to 5% of the amount of such unpaid payment (“Late Charge”). 

  

	9.	PREPAYMENT. Borrower may prepay the Loan in part or in full at any time but shall be liable to Lender for ail amounts otherwise due and owing: (i) under the Loan Documents (including any LIBO Rate
Price Adjustment which may be due for the early termination of a LIBO Rate fixing) and/or (ii) under any derivative contract(s) (including any early termination charges on an interest rate swap) associated with the Loan. Borrower acknowledges
that any prepayment of the Loan shall cause Lender to lose its interest rate yield on the Loan and may cause Lender to have to reinvest the prepaid amount in loans with a lesser yield (including, without limitation, possibly in debt obligations
other than first mortgage loans on commercial properties). As a consequence, Borrower understands and agrees that the foregoing condition of prepayment is an integral part of the consideration for Lender making the Loan or extension of the Maturity
Date. 

  

	10.	DEFAULT RATE. From and after the Maturity Date or such earlier date on which a Default exists under the Loan Agreement or any other Loan Document (as defined in Exhibit A), then at the option of Lender,
all sums owing on this Note shall bear interest at a rate per annum equal to 5% in excess of the interest rate otherwise accruing under this Note (“Default Rate”). 

 

	11.	ACCELERATION. If: (a) Borrower shall fail to pay when due any sums payable hereunder; or (b) a Default (as defined in the Deed of Trust) occurs under the Deed of Trust or under any obligation
secured thereby; THEN Lender may, at its sole option, declare all sums owing under this Note immediately due and payable; provided, however, that if any document related to this Note provides for automatic acceleration of payment of sums owing
hereunder, all sums owing hereunder shall be automatically due and payable in accordance with the terms of that document. 

  

	12.	JOINT AND SEVERAL LIABILITY. If this Note is executed by more than one (1) person or entity as Borrower, the obligations of each such person or entity shall be joint and several. No person or entity
shall be a mere accommodation maker, but each shall be primarily and directly liable hereunder. 

  

	13.	WAIVER. Except as otherwise provided, Borrower waives: presentment; demand; notice of dishonor; notice of default or delinquency; notice of acceleration; notice of protest and nonpayment; notice of costs,
expenses or losses and interest thereon; notice of late charges; and diligence in taking any action to collect any sums owing under this Note or in proceeding against any of the rights or interests in or to properties securing payment of this Note.

	14.	TIME OF THE ESSENCE. Time is of the essence with respect to every provision hereof. 

  

	15.	GOVERNING LAW. This Note shall be governed by, and construed and enforced in accordance with, the laws of the state where the Property (as defined in the Deed of Trust) is located, except to the extent
preempted by federal laws. 

  

	16.	COMMERCIAL USE; MAXIMUM RATE PERMITTED BY LAW. Borrower hereby represents that this loan is for commercial use and not for personal, family or household purposes. It is the specific intent of the Borrower
and Lender that this Note bear a lawful rate of interest, and if any court of competent jurisdiction should determine that the rate herein provided for exceeds that which is statutorily permitted for the type of transaction evidenced hereby, the
interest rate shall be reduced to the highest rate permitted by applicable law, with any excess interest heretofore collected being applied against principal or, if such principal has been fully repaid, returned to Borrower on demand.

  

	17.	LENDER’S DAMAGES. Borrower recognizes that its default in making any payment as provided herein or in any other Loan Document as agreed to be paid when due, or the occurrence of any other Default
hereunder or under any other Loan Document, will require Lender to incur additional expense in servicing and administering the Loan, in loss to Lender of the use of the money due and in frustration to Lender in meeting its other financial and loan
commitments and that the damages caused thereby would be extremely difficult and impractical to ascertain. Borrower agrees (a) that an amount equal to the Late Charge plus the accrual of interest at the Default Rate is a reasonable estimate of
the damage to Lender in the event of a late payment, and (b) that the accrual of interest at the Default Rate following any other Default is a reasonable estimate of the damage to Lender in the event of such other Default, regardless of whether
there has been an acceleration of the loan evidenced hereby. Nothing in this Note shall be construed as an obligation on the part of Lender to accept, at any time, less than the full amount then due hereunder, or as a waiver or limitation of
Lender’s right to compel prompt performance. 

  

	18.	WAIVER OF RIGHT TO TRIAL BY JURY. BORROWER HEREBY EXPRESSLY WAIVES, TO THE FULLEST EXTENT NOW OR HEREAFTER PERMITTED UNDER APPLICABLE LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION (a) ARISING UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION HEREOF OR THEREOF OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF BORROWER AND
LENDER OR ANY OF THEM WITH RESPECT TO THIS NOTE OR ANY OTHER LOAN DOCUMENT (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN
EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND BORROWER HEREBY AGREES AND CONSENTS THAT LENDER MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER TO THE WAIVER OF ANY RIGHT BORROWER MIGHT OTHERWISE HAVE TO TRIAL BY JURY. 

  

	19.	EXHIBITS. All exhibits, schedules or other items attached hereto are incorporated into this Note by such attachment for all purposes. 

 IN WITNESS WHEREOF, this Note has been executed as of the date first above written. 

 

			
	BORROWER:
	
	 CONCORDE REAL ESTATE. LLC,
 a Nevada
limited liability company

		
	By:	 	 /s/ Michael Cartwright

	Name:	 	Michael Cartwright
	Title:	 	President and Manager

 EXHIBIT A 

FIXED RATE AGREEMENT 
 Exhibit A to
Promissory Note Secured by Deed of Trust (“Note”) made by CONCORDE REAL ESTATE, LLC, a Nevada limited liability company, as Borrower, to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender. 

RECITALS 
 Borrower has requested
and Lender has agreed to provide the option to fix the rate of interest for specified periods on specified portions of the outstanding principal balance as a basis for calculating the Effective Rate on such portions of the principal amounts owing
under this Note (the “One-Month LIBO Rate Option”). Borrower understands: (i) the process of exercising the One-Month LIBO Rate Option as provided herein; (ii) that amounts owing under this Note may bear interest at different
rates and for different lime periods; and (iii) that absent the terms and conditions hereof, it would be extremely difficult to calculate Lender’s additional costs, expenses, and damages in the event of a Default or prepayment by Borrower
hereunder. Given the above, Borrower agrees that the provisions herein (including, without limitation, the One-Month LIBO Rate Price Adjustment defined below) provide for a reasonable and fair method for Lender to recover its additional costs,
expenses and damages in the event of a Default or prepayment by Borrower. 
  

	1.	RATES AND TERMS DEFINED. Various rates and terms not otherwise defined herein are defined and described as follows: 

“Alternate Rate” is a rate of interest per annum 5% in excess of the applicable Effective Rate in effect from time to time.

 “Business Day” is a day of the week (but not a Saturday, Sunday or holiday) on which the offices of Lender are open to
the public for carrying on substantially all of Lender’s business functions. 
 “Effective Rate” is the rate of
interest calculated in accordance with Section 2 below. 
 “Federal Funds Rate” is, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such
transactions received by Lender from three Federal Funds brokers of recognized standing selected by Lender. 
 “Loan
Agreement” is that certain Loan Agreement dated as of the date hereof between Borrower and Lender. 
 “Loan
Documents” are the documents defined as such in the Loan Agreement. 
 “One-Month LIBO Rate” is the rate of
interest equal to the sum of: (a) 2.50% plus (b) the rate of interest, rounded upward to the nearest whole multiple of one-eighth of one percent (0.125%), that is quoted by- Lender from time to time as the London InterBank Offered Rate for
deposits in U.S. Dollars, at approximately 9:00 a.m. (California time), for a period of 1 month (“One-Month Rate”), which rate is divided by one (1.00) minus die Reserve Percentage. Any change in an Effective Rate due to a change in
the One-Month LIBO Rate shall become effective on the day each such change occurs. 
  

									
		 	One-Month LIBO Rate = 2.50%	 	+	  	 One-Month Rate
	  	
		 		 		  	(1 - Reserve Percentage)	  	

 “One-Month LIBO Rate Period” is the period of 1 month from the fifteenth (15th) day of a calendar month (or, if such day is not a Business Day, on the next Business Day) to, but not including, the fifteenth
(15th) day of the next calendar month (or, if such day is not a Business Day, on the next Business Day); provided, however, no One-Month LIBO Rate Period shall extend beyond the Maturity
Date. 
 “One-Month LIBO Rate Portion” is the then outstanding principal balance of this Note which is subject to a
One-Month LIBO Rate. In the event Borrower is subject to a principal amortization schedule under the terms and conditions of the Loan Documents, the One-Month LIBO Rate Portion shall in no event exceed the maximum outstanding principal balance which
will be permissible on the last day of the One-Month LIBO Rate Period. 
 “One-Month Rate” is the rate of interest defined
in the definition of “One-Month LIBO Rate” above. 
 “Regulatory Costs” are, collectively, future, supplemental,
emergency or other changes in Reserve Percentages, assessment rates imposed by the FDIC, or similar requirements or costs imposed by any domestic or foreign governmental authority and related in any manner to a One-Month LIBO Rate. 

“Replacement Rate” is, for any day, a fluctuating rate of interest equal to 2.50% plus the Federal Funds Rate plus 1.50%. 

“Reserve Percentage” is at any time the percentage announced within Lender as the reserve percentage under Regulation D for
loans and obligations making reference to a One-Month LIBO Rate. The Reserve Percentage shall be based on Regulation D or other regulations from time to time in effect concerning reserves for Eurocurrency Liabilities as defined in Regulation D from
related institutions as though Lender were in a net borrowing position, as promulgated by the Board of Governors of the Federal Reserve System, or its successor. 

“Taxes” are, collectively, all withholdings, interest equalization taxes, stamp taxes or other taxes (except income and
franchise taxes) imposed by any domestic or foreign governmental authority and related in any manner to a One-Month LIBO Rate. 
  

	2.	EFFECTIVE RATE. Provided no Default exists under this Note or under any other Loan Document, the “Effective Rate” upon which interest shall be calculated for this Note shall be one or more of the
following: 

  

	 	2.1	Initial Disbursement: Subsequent Disbursements During Any Calendar Month. For the initial disbursement of principal under this Note, and for any subsequent disbursement of principal during any calendar
month, the Effective Rate on such principal amount shall be the One-Month LIBO Rate on the date of disbursement as determined by Lender. Such Effective Rate shall apply to such principal amount from the date of disbursement through and including the
date immediately preceding the fifteenth (15th) day of the next calendar month. On the fifteenth (15th) day of the next calendar month, any principal disbursed during the prior calendar month shall be added to (or become) the One-Month
LIBO Rate Portion for purposes of calculation of the Effective Rate under Section 2.2 below, in the event that, for any determination made pursuant to this Section 2.1. the fifteenth (15th) day of a month is not a Business Day the
relevant date shall be the next Business Day. 

  

	 	2.2	Monthly Reset of One-Month LIBO Rate. Commencing with the fifteenth (15th) day of the first
(1st) calendar month after the initial disbursement of principal under this Note, and continuing thereafter on the fifteenth
(15th) day of each succeeding calendar month, the Effective Rate on the outstanding One-Month LIBO Rate Portion under this Note (i.e., all outstanding principal on such fifteenth (15th) day of the month) shall be reset to the One-Month LIBO Rate, as determined by Lender on each such fifteenth (15th) day of the month.

 Notwithstanding the above, Borrower, by written notice to Lender not less than 3 Business Days prior to the fifteenth (15th) day of any calendar month, may elect that the Effective Rate for all or 

 
any part of the outstanding principal balance on this Note for the One-Month LIBO Rate Period commencing on such fifteenth (15th) day of
the month shall be the One-Month LIBO Rate, as determined by Lender, reset daily. Each such election shall apply only to a single One-Month LIBO Rate Period. If Borrower makes this election consecutively for more than a single One- Month LIBO Rate
Period, or if Borrower makes this election for more than a total of 3 One-Month LIBO Rate Periods during the term of this Note, THEN, the Effective Rate for each such additional One-Month LIBO Rate Period shall be 0.25% plus the One-Month LIBO rate
as determined by Lender, reset daily. 
 In the event that, for any determination made pursuant to this Section 2.2, the fifteenth
(15th) day of a month is not a Business Day the relevant date shall be the next Business Day. 
  

	 	2.3	Written Requests. Any written request by Borrower to Lender shall be delivered to Lender at the Minneapolis Loan Center, 608 2nd Ave South, 11th Floor,
Minneapolis, MN 55402, with a copy to Lender at Carlsbad Regional Commercial Banking Office 5901 Priestly Drive, Suite 306, 3rd Floor, Carlsbad, CA 92008, MAC E2413-030, Attention: Marcus Di Fiore, or at such other place as may be designated in
writing by Lender. 

  

	 	2.4	If One-Month LIBO Rate Becomes Unavailable. In the event the One-Month LIBO Rate, for any reason, should become prohibited or unavailable to Lender, or, if in Lender’s good faith judgment, it is not
possible or practical for Lender to set a One-Month LIBO Rate, THEN, the Effective Rate shall be the Replacement Rate. 

  

	 	2.5.	Post Maturity; Default Rate. From and after the Maturity Date or such earlier date on which a Default exists under the Loan Agreement or any other Loan Document, then at the option of Lender, all sums
owing on this Note shall bear interest at a rate per annum equal to the Alternate Rate. 

  

	 	3.	TAXES, REGULATORY COSTS AND RESERVE PERCENTAGES. Upon Lender’s demand, Borrower shall pay to Lender, in addition to all other amounts which may be, or become, due and payable under this Note and Loan
Documents, any and all Taxes and Regulatory Costs, to the extent they are not internalized by calculation of an Effective Rate. Further, at Lender’s option, each Effective Rate shall be automatically adjusted by adjusting the Reserve
Percentage, as determined by Lender in its prudent banking judgment, from the date of imposition (or subsequent date selected by Lender) of any such Regulatory Costs. Lender shall give Borrower notice of any Taxes and Regulatory Costs as soon as
practicable after their occurrence, but Borrower shall be liable for any Taxes and Regulatory Costs regardless of whether or when notice is so given. 

  

	 	4.	ONE-MONTH LIBO RATE PRICE ADJUSTMENT. Borrower acknowledges that prepayment or acceleration of a One-Month LIBO Rate Portion during a One-Month LIBO rate Period shall result in Lender’s incurring
additional costs, expenses and/or liabilities and that it is extremely difficult and impractical to ascertain the extent of such costs, expenses and/or liabilities. Therefore, on the date a One-Month LIBO Rate Portion is prepaid or the date all sums
payable hereunder become due and payable, by acceleration or otherwise (“Price Adjustment Date”), Borrower will pay Lender (in addition to all other sums then owing to Lender) an amount (“One- Month LIBO Rate Price Adjustment”)
equal to the then present value of (a) the amount of interest that would have accrued on the One-Month LIBO Rate Portion for the remainder of the One-Month LIBO Rate Period at the One-Month LIBO Rate set on the fifteenth (15th) day of the month in which such amount is prepaid or becomes due (or if such day is not a Business Day, the next Business Day), less (b) the amount of interest that would accrue on the
same One-Month LIBO Rate Portion tor the same period if the One-Month) LIBO Rate were set on the Price Adjustment Date at the One-Month LIBO Rate in effect on the Price Adjustment Date. The present value shall be calculated by using as a discount
rate the One-Month Rate quoted on the Price Adjustment Date. 

 By initialing this provision where indicated below, Borrower confirms that Lender’s
agreement to make the loan evidenced by this Note at the interest rates and on the other terms set forth herein and in the other Loan Documents constitutes adequate and valuable consideration, given individual weight by Borrower, for this agreement.

 BORROWER INITIALS :    /s/ MC 
  

	 	5.	PURCHASE, SALE AND MATCHING OF FUNDS. Borrower understands, agrees and acknowledges the following: (a) Lender has no obligation to purchase, sell and/or match funds in connection with the use of a
One-Month Rate as a basis for calculating an Effective Rate or a One-Month LIBO Rate Price Adjustment; (b) a One-Month rate is used merely as a reference in determining an Effective Rate or a One-Month LIBO Rate Price Adjustment; and
(c) Borrower has accepted a One-Month Rate as a reasonable and fair basis for calculating an Effective Rate or a One-Month LIBO Rate Price Adjustment. Borrower further agrees to pay the One-Month LIBO Rate Price Adjustment, Taxes and Regulatory
Costs, if any, whether or not Lender elects to purchase, sell and/or match funds. 

  

	 	6.	MISCELLANEOUS. As used in this Exhibit, the plural shall mean the singular and the singular shall mean the plural as the context requires. 

This Exhibit is executed concurrently with and as part of the Note referred to and described first above. 

 

			
	BORROWER:
	
	 CONCORDE REAL ESTATE, LLC,
 a Nevada
limited liability company

		
	By:	 	 /s/ Michael Cartwright

	Name:	 	Michael Cartwright
	Title:	 	President and ManagerEX-10.19

 Exhibit 10.19 

Loan No. 476300 
 REPAYMENT GUARANTY

 (Secured Loan) 
 THIS REPAYMENT
GUARANTY (“Guaranty”) is made, jointly and severally, as of May 15, 2013, by MICHAEL CARTWRIGHT, an individual (“Cartwright”), JERROD MENZ, an individual (“Menz”), and AMERICAN ADDICTION CENTERS, INC., a Nevada
corporation (“AAC” and, together with Cartwright and Menz collectively, “Guarantor”), in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”). The Guarantor and Lender are collectively referred to herein as the
“Parties” and individually as a “Party.” 
 RECITALS: 

 

	A.	Pursuant to the terms of a term loan agreement between CONCORDE REAL ESTATE, LLC, a Nevada limited liability company (“Borrower”), and Lender dated as of the date hereof (“Loan Agreement”), Lender
has agreed to loan to Borrower the principal sum of NINE MILLION FIVE HUNDRED EIGHTY-ONE THOUSAND AND NO/IOOTHS DOLLARS ($9,581,000.00) (“Loan”) for the purposes specified in the Loan Agreement, said purposes relating to the real property
and improvements described in the Loan Agreement (which real property and improvements are collectively referred to herein as the “Property”). 

  

	B.	The Loan Agreement provides that the Loan shall be evidenced by a promissory note (“Note”) executed by Borrower payable to the order of Lender in the principal amount of the Loan and shall be secured by that
certain Construction Deed of Trust with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing dated June 27, 2012, executed by Borrower, as trustor, to American Securities Company of Nevada, a Nevada corporation, as
trustee, for the benefit of Lender, as beneficiary, and recorded on July 10, 2012 as Instrument No. 201207100000082 in the official records of Clark County, Nevada (“Official Records”) as modified by that certain Modification
Agreement (“Modification Agreement”) of even date herewith by and between Borrower and Lender, a memorandum (“Memorandum”), of which is being recorded concurrently herewith in the Official Records (as modified, the “Deed of
Trust”) and by other security instruments, if any, specified in the Loan Agreement. The term “Loan Documents” for purposes hereof shall mean the Loan Agreement, the Deed of Trust, the Note and those other documents described in the
Loan Agreement as Loan Documents. 

 THEREFORE, to induce Lender to enter into the Loan Agreement and to make the Loan, and in consideration
thereof, Guarantor unconditionally guarantees and agrees as follows: 
  

	1.	GUARANTY. Guarantor hereby guarantees and promises to pay to Lender or order, on demand, in lawful money of the United States, in immediately available funds, the principal sum of NINE MILLION FIVE HUNDRED
EIGHTY-ONE THOUSAND AND NO/100THS DOLLARS ($9,581,000.00) or so much thereof as may be due and owing under the Note, any of the other Loan Documents or any swap, derivative, foreign exchange or hedge transaction or arrangement (or other similar
transaction or arrangement howsoever described or defined) at any time entered into between Borrower and Lender in connection with the Note (collectively, “Swap Contract”), together with interest and any other sums payable under the Note,
any of the other Loan Documents or any Swap Contract. Subject to Borrower’s satisfaction of the conditions set forth in Section 5.4 of the Deed of Trust as modified by the Modification Agreement, Cartwright and Menz shall be released from
their obligations under this Guaranty to the extent such obligations first arise after the Acquisition Effective Date (as defined in Section 5.4 of the Deed of Trust as modified by the Modification Agreement). 

 

	2.	REMEDIES. If Guarantor fails to promptly perform its obligations under this Guaranty, Lender may from time to time, and without first requiring performance by Borrower or exhausting any or all security for
the Loan, bring any action at law or in equity or both to compel Guarantor to perform its obligations hereunder, and to collect in any such action compensation for all loss, cost, damage, injury and expense sustained or incurred by Lender as a
direct or indirect consequence of the failure of Guarantor to perform its obligations together with interest thereon at the rate of interest applicable to the principal balance of the Note. 

  
 1 

	3.	RIGHTS OF LENDER. Guarantor authorizes Lender, without giving notice to Guarantor or obtaining Guarantor’s consent and without affecting the liability of Guarantor, from time to time to:
(a) renew or extend all or any portion of Borrower’s obligations under the Note or any of the other Loan Documents; (b) declare all sums owing to Lender under the Note and the other Loan Documents due and payable upon the occurrence
of a Default (as defined in the Loan Agreement) under the Loan Documents; (c) make non-material changes in the dates specified for payments of any sums payable in periodic installments under the Note or any of the other Loan Documents;
(d) otherwise modify the terms of any of the Loan Documents, except for (i) increases in the principal amount of the Note or changes in the manner by which interest rates, fees or charges are calculated under the Note and the other Loan
Documents (Guarantor acknowledges that if the Note or other Loan Documents so provide, said interest rates, fees and charges may vary from time to time) or (ii) advancement of the Maturity Date of the Note where no Default has occurred under
the Loan Documents; (e) take and hold security for the performance of Borrower’s obligations under the Note or the other Loan Documents and exchange, enforce, waive and release any such security; (f) apply such security and direct the
order or manner of sale thereof as Lender in its discretion may determine; (g) release, substitute or add any one or more endorsers of the Note or guarantors of Borrower’s obligations under the Note or the other Loan Documents;
(h) assign this Guaranty in whole or in part; and (i) assign, transfer or negotiate all or any part of the indebtedness guaranteed by this Guaranty. 

  

	4.	GUARANTOR’S WAIVERS. Guarantor waives: (a) any defense based upon any legal disability or other defense of Borrower, any other guarantor or other person, or by reason of the cessation or
limitation of the liability of Borrower from any cause other than full payment of all sums payable under the Note or any of the other Loan Documents; (b) any defense based upon any lack of authority of the officers, directors, partners,
managers, members or agents acting or purporting to act on behalf of Borrower or any principal of Borrower or any defect in the formation of Borrower or any principal of Borrower; (c) any defense based upon the application by Borrower of the
proceeds of the Loan for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor; (d) any and all rights and defenses arising out of an election of remedies by Lender; (e) any
defense based upon Lender’s failure to disclose to Guarantor any information concerning Borrower’s financial condition or any other circumstances bearing on Borrower’s ability to pay all sums payable under the Note or any of the other
Loan Documents; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more burdensome than that of a principal; (g) any defense based
upon Lender’s election, in any proceeding instituted under the Federal Bankruptcy Code, of the application of Section 1111(b)(2) of the Federal Bankruptcy Code or any successor statute; (h) any defense based upon any borrowing or any
grant of a security interest under Section 364 of the Federal Bankruptcy Code; (i) any right of subrogation, any right to enforce any remedy which Lender may have against Borrower and any right to participate in, or benefit from, any
security for the Note or the other Loan Documents now or hereafter held by Lender; (j) presentment, demand, protest and notice of any kind; and (k) the benefit of any statute of limitations affecting the liability of Guarantor hereunder or
the enforcement hereof. Guarantor further waives any and all rights and defenses that Guarantor may have because Borrower’s debt is secured by real property; this means, among other things, that Lender may collect from Guarantor without first
foreclosing on any real or personal property collateral pledged by Borrower. The foregoing sentence is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because Borrower’s debt is secured by real property.
These rights and defenses being waived by Guarantor include, but are not limited to, any rights or defenses based upon deficiency limitation or anti-deficiency, redemption or other similar rights. Without limiting the generality of the foregoing or
any other provision hereof, Guarantor further expressly waives to the extent permitted by law any and all rights and defenses which might otherwise be available to Guarantor under the Nevada one action rule, Nevada Revised Statutes
Section 40.430. Finally, Guarantor agrees that the performance of any act or any payment which tolls any statute of limitations applicable to the Loan Documents shall similarly operate to toll the statute of limitations applicable to
Guarantor’s liability hereunder. 

  

	5.	 GUARANTOR’S WARRANTIES. Guarantor warrants and acknowledges that: (a) Lender would not make the Loan but for this Guaranty;
(b) Guarantor has reviewed all of the terms and provisions of the Loan Agreement and the other Loan Documents; (c) there are no conditions precedent to the effectiveness of this Guaranty; (d) Guarantor has established adequate means
of obtaining from sources other than 

  
 2 

	 	
Lender, on a continuing basis, financial and other information pertaining to Borrower’s financial condition, the Property and Borrower’s activities relating thereto and the status of
Borrower’s performance of obligations under the Loan Documents, and Guarantor agrees to keep adequately informed from such means of any facts, events or circumstances which might in any way affect Guarantor’s risks hereunder and Lender has
made no representation to Guarantor as to any such matters; (e) the most recent financial statements of Guarantor previously delivered to Lender are true and correct in all respects, have been prepared in accordance with generally accepted
accounting principles consistently applied (or other principles acceptable to Lender) and fairly present the financial condition of Guarantor as of the respective dates thereof, and no material adverse change has occurred in the financial condition
of Guarantor since the respective dates thereof; and (f) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer or otherwise dispose of all or substantially all of
Guarantor’s assets, or any interest therein, other than in the ordinary course of Guarantor’s business; and (g) Guarantor is not and will not be, as a consequence of the execution and delivery of this Guaranty, impaired or rendered
“insolvent,” as that term is defined in either Nevada Revised Statutes §112.160 or Section 101 of the federal Bankruptcy Code, or otherwise rendered unable to pay its debts as the same mature and will not have thereby undertaken
liabilities in excess of the present fair value of its assets. Notwithstanding the foregoing, the calculation of liabilities shall NOT include any fair value adjustments to the carrying value of liabilities to record such liabilities at fair value
pursuant to electing the fair value option election under FASB ASC 825-10-25 (formerly known as FAS 159, The Fair Value Option for Financial Assets and Financial Liabilities) or other FASB standards allowing entities to elect fair value option for
financial liabilities. Therefore, the amount of liabilities shall be the historical cost basis, which generally is the contractual amount owed adjusted for amortization or accretion of any premium or discount. 

 

	6.	SUBORDINATION. Guarantor subordinates all present and future indebtedness owing by Borrower to Guarantor to the obligations at any time owing by Borrower to Lender under the Note and the other Loan
Documents. Guarantor assigns all such indebtedness to Lender as security for this Guaranty, the Note and the other Loan Documents. Guarantor agrees to make no claim for such indebtedness until all obligations of Borrower under the Note and the other
Loan Documents have been fully discharged. Guarantor further agrees not to assign all or any part of such indebtedness unless Lender is given prior notice and such assignment is expressly made subject to the terms of this Guaranty. If Lender so
requests, (a) all instruments evidencing such indebtedness shall be duly endorsed and delivered to Lender, (b) all security for such indebtedness shall be duly assigned and delivered to Lender, (c) such indebtedness shall be enforced,
collected and held by Guarantor as trustee for Lender and shall be paid over to Lender on account of the Loan but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty, and
(d) Guarantor shall execute, file and record such documents and instruments and take such other action as Lender deems necessary or appropriate to perfect, preserve and enforce Lender’s rights in and to such indebtedness and any security
therefor. If Guarantor fails to take any such action, Lender, as attorney-in-fact for Guarantor, is hereby authorized to do so in the name of Guarantor. The foregoing power of attorney is coupled with an interest and cannot be revoked.

  

	7.	 BANKRUPTCY OF BORROWER. In any bankruptcy or other proceeding in which the filing of claims is required by law, Guarantor shall file all
claims which Guarantor may have against Borrower relating to any indebtedness of Borrower to Guarantor and shall assign to Lender all rights of Guarantor thereunder. If Guarantor does not file any such claim, Lender, as attorney-in-fact for
Guarantor, is hereby authorized to do so in the name of Guarantor or, in Lender’s discretion, to assign the claim to a nominee and to cause proof of claim to be filed in the name of Lender’s nominee. The foregoing power of attorney is
coupled with an interest and cannot be revoked. Lender or its nominee shall have the right, in its reasonable discretion, to accept or reject any plan proposed in such proceeding and to take any other action which a party filing a claim is entitled
to do. In all such cases, whether in administration, bankruptcy or otherwise, the person or persons authorized to pay such claim shall pay to Lender the amount payable on such claim and, to the full extent necessary for that purpose, Guarantor
hereby assigns to Lender all of Guarantor’s rights to any such payments or distributions; provided, however. Guarantor’s obligations hereunder shall not be satisfied except to the extent that Lender receives cash by reason of any such
payment or distribution. If Lender receives anything hereunder other than cash, the same shall be held as collateral for amounts due under this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or

  
 3 

	 	
performed, the obligations of Guarantor hereunder shall continue and shall remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered
directly or indirectly from Lender as a preference, fraudulent transfer or otherwise under the Bankruptcy Code or other similar laws, irrespective of (a) any notice of revocation given by Guarantor prior to such avoidance or recovery, or
(b) full payment and performance of all of the indebtedness and obligations evidenced and secured by the Loan Documents. 

  

	8.	LOAN SALES AND PARTICIPATIONS; DISCLOSURE OF INFORMATION. Guarantor agrees that Lender may elect, at any time, to sell, assign, or grant participations in all or any portion of its rights and obligations
under the Loan Documents and this Guaranty, and that any such sale, assignment or participation may be to one or more financial institutions, private investors, and/or other entities, at Lender’s sole discretion. Guarantor further agrees that
Lender may disseminate to any such actual or potential purchaser(s), assignee(s) or participant(s) all documents and information (including, without limitation, all financial information) which has been or is hereafter provided to or known to Lender
with respect to: (a) the Property and its operation; (b) any party connected with the Loan (including, without limitation, the Guarantor, the Borrower, any partner of Borrower, any constituent partner of Borrower, any other guarantor and
any non-borrower trustor); and/or (c) any lending relationship other than the Loan which Lender may have with any party connected with the Loan. In the event of any such sale, assignment or participation, Lender and the parties to such
transaction shall share in the rights and obligations of Lender as set forth in the Loan Documents only as and to the extent they agree among themselves. In connection with any such sale, assignment or participation, Guarantor further agrees that
the Guaranty shall be sufficient evidence of the obligations of Guarantor to each purchaser, assignee, or participant, and upon written request by Lender, Guarantor shall consent to such amendments or modifications to the Loan Documents as may be
reasonably required in order to evidence any such sale, assignment, or participation. 

 Anything in this Guaranty to the
contrary notwithstanding, and without the need to comply with any of the formal or procedural requirements of this Guaranty, including this Section, Lender may at any time and from time to time pledge and assign all or any portion of its rights
under all or any of the Loan Documents to a Federal Reserve Bank; provided that no such pledge or assignment shall release Lender from its obligations thereunder. 
  

	9.	ADDITIONAL, INDEPENDENT AND UNSECURED OBLIGATIONS. This Guaranty is a continuing guaranty of payment and not of collection and cannot be revoked by Guarantor and shall continue to be effective with respect
to any indebtedness referenced in Section 1 hereof arising or created after any attempted revocation hereof or after the death of Guarantor (if Guarantor is a natural person, in which event this Guaranty shall be binding upon Guarantor’s
estate and Guarantor’s legal representatives and heirs). The obligations of Guarantor hereunder shall be in addition to and shall not limit or in any way affect the obligations of Guarantor under any other existing or future guaranties unless
said other guaranties are expressly modified or revoked in writing. This Guaranty is independent of the obligations of Borrower under the Note, the Deed of Trust and the other Loan Documents. Lender may bring a separate action to enforce the
provisions hereof against Guarantor without taking action against Borrower or any other party or joining Borrower or any other party as a party to such action. Except as otherwise provided in this Guaranty, this Guaranty is not secured and shall not
be deemed to be secured by any security instrument unless such security instrument expressly recites that it secures this Guaranty. 

  

	10.	ATTORNEYS’ FEES; ENFORCEMENT. If any attorney is engaged to enforce or defend any provision of this Guaranty, or any of the other Loan Documents, or as a consequence of any Default under the Loan
Documents, with or without the filing of any legal action or proceeding, the prevailing Party, as agreed to by the Parties or as determined by the court, shall be entitled to its attorneys’ fees and costs incurred in connection therewith,
together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal balance of the Note as specified therein. 

 

	11.	 RULES OF CONSTRUCTION. The word “Borrower” as used herein shall include both the named Borrower and any other person at any
time assuming or otherwise becoming primarily liable for all or any part of the obligations of the named Borrower under the Note and the other Loan Documents. The term “person” as used herein shall include any individual, company, trust or
other legal entity of any kind 

  
 4 

	 	
whatsoever. If this Guaranty is executed by more than one person, the term “Guarantor” shall include all such persons. When the context and construction so require, all words used in
the singular herein shall be deemed to have been used in the plural and vice versa. All headings appearing in this Guaranty are for convenience only and shall be disregarded in construing this Guaranty. 

 

	12.	CREDIT REPORTS. Each legal entity and individual obligated on this Guaranty hereby authorizes Lender to order and obtain, from a credit reporting agency of Lender’s choice, a third party credit report
on such legal entity and individual. 

  

	13.	GOVERNING LAW. This Guaranty shall be governed by, and construed in accordance with, the laws of the State of Nevada, except to the extent preempted by federal laws. Guarantor and all persons and entities
in any manner obligated to Lender under this Guaranty consent to the jurisdiction of any federal or state court within Clark County, State of Nevada having proper venue and also consent to service of process by any means authorized by Nevada or
federal law. 

  

	14.	MISCELLANEOUS. The provisions of this Guaranty will bind and benefit the heirs, executors, administrators, legal representatives, nominees, successors and assigns of Guarantor and Lender. The liability of
all persons and entities who are in any manner obligated hereunder shall be joint and several. If Guarantor is a natural person, this Guaranty shall be binding against Guarantor’s sole and separate property and the property now or hereafter
owned by the marital community of Guarantor. If any provision of this Guaranty shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed from this Guaranty and the
remaining parts shall remain in full force as though the invalid, illegal or unenforceable portion had never been part of this Guaranty. 

  

	15.	ADDITIONAL PROVISIONS. Such additional terms, covenants and conditions as may be set forth on any exhibit executed by Guarantor and attached hereto which recites that it is an exhibit to this Guaranty are
incorporated herein by this reference. 

  

	16.	ENFORCEABILITY. Guarantor hereby acknowledges that: (a) the obligations undertaken by Guarantor in this Guaranty are complex in nature, and (b) numerous possible defenses to the enforceability of
these obligations may presently exist and/or may arise hereafter, and (c) as part of Lender’s consideration for entering into this transaction, Lender has specifically bargained for the waiver and relinquishment by Guarantor of all such
defenses, and (d) Guarantor has had the opportunity to seek and receive legal advice from skilled legal counsel in the area of financial transactions of the type contemplated herein. Given all of the above, Guarantor does hereby represent and
confirm to Lender that Guarantor is fully informed regarding, and that Guarantor does thoroughly understand: (i) the nature of all such possible defenses, and (ii) the circumstances under which such defenses may arise, and (iii) the
benefits which such defenses might confer upon Guarantor, and (iv) the legal consequences to Guarantor of waiving such defenses. Guarantor acknowledges that Guarantor makes this Guaranty with the intent that this Guaranty and all of the
informed waivers herein shall each and all be fully enforceable by Lender, and that Lender is induced to enter into this transaction in material reliance upon the presumed full enforceability thereof. 

 

	17.	WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS GUARANTY, AND BY ITS ACCEPTANCE HEREOF, LENDER, HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
(a) ARISING UNDER THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THE LOAN DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY AND LENDER HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS GUARANTY AND LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE PARTIES HERETO AND LENDER TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

  
 5 

	18.	NOTICES. All notices or demands that are required or permitted to be given or served hereunder shall be given in the manner provided in the Loan Agreement. Guarantor acknowledges that its address for
notice shall be the address set forth below with its name. Guarantor may change its address from time to time by giving ten (10) days’ prior written notice to Lender. 

 

	19.	COUNTERPARTS. To facilitate execution, this document may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each Party,
or that the signature of all persons required to bind any Party, appear on each counterpart. All counterparts shall collectively constitute a single document. It shall not be necessary in making proof of this document to produce or account for more
than a single counterpart containing the respective signatures of, or on behalf of, each of the Parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon
and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages. 

  

	20.	ARBITRATION. 

  

	 	(a)	Arbitration. The Parties hereto agree, upon demand by any Party, to submit to binding arbitration all claims, disputes and controversies between or among them (and their respective employees, officers,
directors, attorneys, and other agents), whether in tort, contract or otherwise, in any way arising out of or relating to this Guaranty and its negotiation, execution, collateralization, administration, repayment, modification, extension,
substitution, formation, inducement, enforcement, default or termination. 

  

	 	(b)	Governing Rules. Any arbitration proceeding will (i) proceed in a location in Nevada selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal
Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law provision in any of the documents between the Parties; and (iii) be conducted by the AAA, or such other administrator as the Parties shall
mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the arbitration shall
be conducted in accordance with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to herein, as
applicable, as the “Rules”). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Any Party who fails or refuses to submit to arbitration following a demand by any
other Party shall bear all costs and expenses incurred by such other Party in compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by any Party that is a bank of the protections afforded to it under 12
U.S.C. §91 or any similar applicable state law. 

  

	 	(c)	No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any Party to (i) foreclose against real or personal property collateral;
(ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a
receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any Party to submit any dispute to arbitration or reference hereunder, including those arising
from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph. 

  

	 	(d)	 Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount in controversy is $5,000,000.00 or less will be
decided by a single arbitrator selected according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of
three arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations. Any arbitrator will be a neutral attorney licensed in the State of Nevada or a neutral

  
 6 

	 	
retired judge of the state or federal judiciary of Nevada, in either case with a minimum of ten years experience in the substantive law applicable to the subject matter of the dispute to be
arbitrated. The arbitrator(s) will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. In any arbitration proceeding the arbitrator(s) will decide (by documents only or with
a hearing at the arbitrator’s(s’) discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The arbitrator(s) shall resolve all disputes in accordance with
the substantive law of Nevada and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make effective any award. The arbitrator(s) shall also have the
power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the Nevada Rules of Civil Procedure
or other applicable law. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall
not constitute a waiver of the right of any Party, including the plaintiff, to submit the controversy or claim to arbitration if any other Party contests such action for judicial relief. 

 

	 	(e)	Discovery. In any arbitration proceeding, discovery will be permitted in accordance with the Rules. All discovery shall be expressly limited to matters relevant to the dispute being arbitrated and must be
completed no later than 20 days before the hearing date. Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is
essential for the Party’s presentation and that no alternative means for obtaining information is available. 

  

	 	(f)	Class Proceedings and Consolidations. No Party hereto shall be entitled to join or consolidate disputes by or against others in any arbitration, except Parties who have executed this Guaranty or any other
contract, instrument or document relating to any Indebtedness, or to include in any arbitration any dispute as a representative or member of a class, or to act in any arbitration in the interest of the general public or in a private attorney general
capacity. 

  

	 	(g)	Payment Of Arbitration Costs And Fees. The arbitrator(s) shall award all costs and expenses of the arbitration proceeding. 

 

	 	(h)	Real Property Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no dispute shall be submitted to arbitration if the dispute concerns indebtedness secured directly or
indirectly, in whole or in part, by any real property unless (i) the holder of the mortgage, lien or security interest specifically elects in writing to proceed with the arbitration, or (ii) all parties to the arbitration waive any rights
or benefits that might accrue to them by virtue of the single action rule statute of Nevada, thereby agreeing that all indebtedness and obligations of the Parties, and all mortgages, liens and security interests securing such indebtedness and
obligations, shall remain fully valid and enforceable. 

  

	 	(i)	Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the Parties shall take all action required to conclude any arbitration proceeding within 180 days of the filing of the dispute
with the AAA. No arbitrator or other Party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a Party required in the ordinary course of its business or by applicable law or
regulation. If more than one agreement for arbitration by or between the Parties potentially applies to a dispute, the arbitration provision most directly related to the documents between the Parties or the subject matter of the dispute shall
control. This arbitration provision shall survive termination, amendment or expiration of any of the documents or any relationship between the Parties. 

  
 7 

	 	(j)	Small Claims Court. Notwithstanding anything herein to the contrary, each Party retains the right to pursue in Small Claims Court any dispute within that court’s jurisdiction. Further, this
arbitration provision shall apply only to disputes in which either Party seeks to recover an amount of money (excluding attorneys’ fees and costs) that exceeds the jurisdictional limit of the Small Claims Court. 

(Signatures commence on the following page) 

  
 8 

 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date appearing on the first page of this
Guaranty. 
 GUARANTOR: 
 AMERICAN ADDICTION CENTERS, INC.,

 a Nevada corporation. 
  

			
	By:	 	 /s/ Michael Cartwright

	Name:	 	Michael Cartwright
	Title:	 	Secretary

 Address for notices: 
 115
Eastpark Drive, Suite 100 
 Brentwood, TN 37027 
  

	
	 /s/ Michael Cartwright

	MICHAEL CARTWRIGHT, an individual

 Address for notices: 
 115
Eastpark Drive, Suite 100 
 Brentwood, TN 37027 
  

	
	 /s/ Jerrod Menz

	JERROD MENZ, an individual

 Address for notices: 

115 Eastpark Drive, Suite 100 
 Brentwood, TN 37027 

Lender’s Address for notices: 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION 
 Carlsbad Regional Commercial Banking Office 

5901 Priestly Drive, Suite 306, 3rd FL 

Carlsbad, CA 92008 
 MAC E2413-030 

Attention: Marcus Di Fiore 

  
 9

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