Document:

v195155_ex10-2 -- Converted by SECPublisher 2.1.1.8, created by BCL Technologies Inc., for SEC Filing

	
(d)        	
The trustee of a trust where the aggregate value of the cash and investments which form part of the trust fs assets in excess       
	 
	
(e)        	
an individual whose net worth , or joint net      
	 

	 	
reasonably require and that it provides each Prospective Investor the opportunity to ask questions of, and receive answers from, the Client concerning the terms and conditions of the Client fsroducts andpservices, provided that the Client shall not be so obliged where the action in question would
amount to a breach of relevant security laws or of a confidentiality agreement or undertaking;   
	 
	 	
(iii)              	
The Client has and undertakes that it shall maintain all necessary consents and authorisations required in connection with its business affairs;  
	 
	 	
(iv)       	
The Client will use all reasonable endeavours to comply with all applicable laws and regulations; 
	 
	 	
(v)        	
The Agent is not authorised by the Client to transmit to Prospective Investors any marketing material or similar documentation of the Client without the express prior written
consent; of the Client fs    
	 
	 	
(vi)       	
The Agent shall be entitled to rely without investigation upon all information supplied to it by the Client and shall not in any respect be responsible for the accuracy or completeness of or have any obligation to
verify the same or to conduct any appraisal of assets;   
	 
	
4.2        	
The Agent represents and warrants that in performing the services under this Agreement, it shall not make any statements to Prospective Investors that involve any misrepresentation of any fact or matter. Further, the
Agent undertakes to provide any Prospective Investor only with promotional materials and documents which have been provided or approved by the Client.Unassociated Document

    
      Exhibit
10.1

       

      PURCHASE
AND SALE AGREEMENT

      

      

      By
And Among

       

      GLOBAL
REHAB DALLAS, LP,

      a
Delaware limited partnership

      as
“Buyer”

       

      and

       

      GR
IRF I, LP, a Texas limited partnership,

      as
“Seller”

      

      And

      

      REPUBLIC
TITLE OF TEXAS, INC.,

      a
Texas corporation

      as
“Escrow Agent”

      

      

      

      Dated
as of

       

      July
14, 2010

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF
CONTENTS

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      	 
      	 
      	 
      	
                                                                              Page

                                                                            
	 
      	 
      	 
      	 
      
	
                                                                              ARTICLE
      I TERMINOLOGY

                                                                            	
                                                                              1

                                                                            
	 
      	
                                                                              1.1

                                                                            	
                                                                              Defined
      Terms

                                                                            	
                                                                              1

                                                                            
	 
      	
                                                                              1.2

                                                                            	
                                                                              Additional
      Defined Terms

                                                                            	
                                                                              3

                                                                            
	 
      	 
      	 
      	 
      
	
                                                                              ARTICLE
      II PURCHASE AND SALE

                                                                            	
                                                                              5

                                                                            
	 
      	
                                                                              2.1

                                                                            	
                                                                              Property

                                                                            	
                                                                              5

                                                                            
	 
      	
                                                                              2.2

                                                                            	
                                                                              Assumption
      of Liabilities

                                                                            	
                                                                              6

                                                                            
	 
      	
                                                                              2.3

                                                                            	
                                                                              Purchase
      Price

                                                                            	
                                                                              6

                                                                            
	 
      	
                                                                              2.4

                                                                            	
                                                                              Earnest
      Money Deposit

                                                                            	
                                                                              6

                                                                            
	 
      	
                                                                              2.5

                                                                            	
                                                                              Escrow
      Agent

                                                                            	
                                                                              6

                                                                            
	 
      	 
      	 
      	 
      
	
                                                                              ARTICLE
      III DUE DILIGENCE PERIOD

                                                                            	
                                                                              7

                                                                            
	 
      	
                                                                              3.1

                                                                            	
                                                                              Due
      Diligence Period

                                                                            	
                                                                              7

                                                                            
	 
      	
                                                                              3.2

                                                                            	
                                                                              Buyer’s
      Responsibilities

                                                                            	
                                                                              8

                                                                            
	 
      	
                                                                              3.3

                                                                            	
                                                                              Continuing
      Diligence and Inspection Rights

                                                                            	
                                                                              8

                                                                            
	 
      	
                                                                              3.4

                                                                            	
                                                                              Reports

                                                                            	
                                                                              8

                                                                            
	 
      	
                                                                              3.5

                                                                            	
                                                                              Buyer’s
      Agreement to Indemnify

                                                                            	
                                                                              9

                                                                            
	 
      	
                                                                              3.6

                                                                            	
                                                                              Title
      Insurance and Survey

                                                                            	
                                                                              9

                                                                            
	 
      	 
      	 
      	 
      
	
                                                                              ARTICLE
      IV REPRESENTATIONS AND WARRANTIES OF SELLER

                                                                            	
                                                                              11

                                                                            
	 
      	
                                                                              4.1

                                                                            	
                                                                              Organization;
      Good Standing of Seller

                                                                            	
                                                                              11

                                                                            
	 
      	
                                                                              4.2

                                                                            	
                                                                              Consent
      of Third Parties

                                                                            	
                                                                              11

                                                                            
	 
      	
                                                                              4.3

                                                                            	
                                                                              Authority;
      Enforceability

                                                                            	
                                                                              11

                                                                            
	 
      	
                                                                              4.4

                                                                            	
                                                                              Absence
      of Conflicts

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.5

                                                                            	
                                                                              No
      Judgments

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.6

                                                                            	
                                                                              No
      Governmental Approvals

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.7

                                                                            	
                                                                              Insurance

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.8

                                                                            	
                                                                              Litigation

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.9

                                                                            	
                                                                              Compliance
      with Laws

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.10

                                                                            	
                                                                              Environmental
      Matters

                                                                            	
                                                                              12

                                                                            
	 
      	
                                                                              4.11

                                                                            	
                                                                              Assessments

                                                                            	
                                                                              13

                                                                            
	 
      	
                                                                              4.12

                                                                            	
                                                                              Lease
      Agreement

                                                                            	
                                                                              13

                                                                            
	 
      	
                                                                              4.13

                                                                            	
                                                                              Licenses

                                                                            	
                                                                              13

                                                                            
	 
      	
                                                                              4.14

                                                                            	
                                                                              Rent
      Roll

                                                                            	
                                                                              13

                                                                            
	 
      	
                                                                              4.15

                                                                            	
                                                                              Condemnation

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.16

                                                                            	
                                                                              Personal
      Property

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.17

                                                                            	
                                                                              Independent
      Property

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.18

                                                                            	
                                                                              Utilities
      Access

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.19

                                                                            	
                                                                              Zoning

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.20

                                                                            	
                                                                              FIRPTA

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.21

                                                                            	
                                                                              Title
      Encumbrances

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.22

                                                                            	
                                                                              Interests;
      Title to Real Property

                                                                            	
                                                                              14

                                                                            
	 
      	
                                                                              4.23

                                                                            	
                                                                              Loans

                                                                            	
                                                                              15

                                                                            

                                                                    

                                                                  

                                                                

                                                              

                                                               

                                                              
                                                                
                                                                   

                                                                  
                                                                    
                                                                      
                                                                      

                                                                    

                                                                    
                                                                      i

                                                                      
                                                                        

                                                                      

                                                                    

                                                                    
                                                                      
                                                                      

                                                                    

                                                                  

                                                                   

                                                                  TABLE OF CONTENTS
(cont’d)

                                                                   

                                                                

                                                              

                                                              
                                                                	 
      	 
      	 
      	
                                                                        Page

                                                                      

                                                              

                                                               

                                                              
                                                                
                                                                  	 
      	
                                                                          4.24

                                                                        	
                                                                          Patriot
      Act Compliance

                                                                        	
                                                                          15

                                                                        
	 
      	
                                                                          4.25

                                                                        	
                                                                          Broker’s
      or Finder’s Fees

                                                                        	
                                                                          15

                                                                        
	 
      	
                                                                          4.26

                                                                        	
                                                                          Insolvency

                                                                        	
                                                                          15

                                                                        
	 
      	
                                                                          4.27

                                                                        	
                                                                          Due
      Diligence

                                                                        	
                                                                          15

                                                                        
	 
      	
                                                                          4.28

                                                                        	
                                                                          Survival
      of Representations and Warranties

                                                                        	
                                                                          15

                                                                        
	 
      	
                                                                          4.29

                                                                        	
                                                                          Disclaimer

                                                                        	
                                                                          15

                                                                        
	 
      	
                                                                          4.30

                                                                        	
                                                                          Updates
      to Representations and Warranties

                                                                        	
                                                                          16

                                                                        
	 
      	 
      	 
      	 
      
	
                                                                          ARTICLE
      V REPRESENTATIONS AND WARRANTIES OF BUYER

                                                                        	
                                                                          16

                                                                        
	 
      	
                                                                          5.1

                                                                        	
                                                                          Organization
      and Good Standing

                                                                        	
                                                                          

                                                                            16

                                                                          

                                                                        
	 
      	
                                                                          5.2

                                                                        	
                                                                          Authorization
      and Binding Effect of Documents

                                                                        	
                                                                          

                                                                            16

                                                                          

                                                                        
	 
      	
                                                                          5.3

                                                                        	
                                                                          Absence
      of Conflicts

                                                                        	
                                                                          

                                                                            16

                                                                          

                                                                        
	 
      	
                                                                          5.4

                                                                        	
                                                                          Consents

                                                                        	
                                                                          17

                                                                        
	 
      	
                                                                          5.5

                                                                        	
                                                                          Patriot
      Act Compliance

                                                                        	
                                                                          17

                                                                        
	 
      	
                                                                          5.6

                                                                        	
                                                                          Broker’s
      or Finder’s Fees

                                                                        	
                                                                          17

                                                                        
	 
      	 
      	 
      	 
      
	
                                                                          ARTICLE
      VI OTHER COVENANTS

                                                                        	
                                                                          17

                                                                        
	 
      	
                                                                          6.1

                                                                        	
                                                                          Conduct
      of Business Prior to the Closing

                                                                        	
                                                                          17

                                                                        
	 
      	
                                                                          6.2

                                                                        	
                                                                          Notification
      of Certain Matters

                                                                        	
                                                                          18

                                                                        
	 
      	
                                                                          6.3

                                                                        	
                                                                          Title;
      Additional Documents

                                                                        	
                                                                          18

                                                                        
	 
      	
                                                                          6.4

                                                                        	
                                                                          Other
      Consents

                                                                        	
                                                                          18

                                                                        
	 
      	
                                                                          6.5

                                                                        	
                                                                          Inspection
      and Access

                                                                        	
                                                                          19

                                                                        
	 
      	
                                                                          6.6

                                                                        	
                                                                          Confidentiality

                                                                        	
                                                                          19

                                                                        
	 
      	
                                                                          6.7

                                                                        	
                                                                          Publicity

                                                                        	
                                                                          20

                                                                        
	 
      	
                                                                          6.8

                                                                        	
                                                                          Commercially
      Reasonable Efforts

                                                                        	
                                                                          20

                                                                        
	 
      	
                                                                          6.9

                                                                        	
                                                                          Reports

                                                                        	
                                                                          20

                                                                        
	 
      	
                                                                          6.10

                                                                        	
                                                                          Post-Closing
      Obligations of Seller

                                                                        	
                                                                          20

                                                                        
	 
      	
                                                                          6.11

                                                                        	
                                                                          No
      Other Representations or Warranties

                                                                        	
                                                                          20

                                                                        
	 
      	
                                                                          6.12

                                                                        	
                                                                          Exclusivity

                                                                        	
                                                                          20

                                                                        
	 
      	
                                                                          6.13

                                                                        	
                                                                          Prohibited
      Activities Prior to Closing

                                                                        	
                                                                          21

                                                                        
	 
      	
                                                                          6.14

                                                                        	
                                                                          Non-Compete

                                                                        	
                                                                          21

                                                                        
	 
      	 
      	 
      	 
      
	
                                                                          ARTICLE
      VII CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO
    CLOSE

                                                                        	
                                                                          21

                                                                        
	 
      	
                                                                          7.1

                                                                        	
                                                                          Accuracy
      of Representations and Warranties; Closing Certificate

                                                                        	
                                                                          21

                                                                        
	 
      	
                                                                          7.2

                                                                        	
                                                                          Performance
      of Agreement

                                                                        	
                                                                          21

                                                                        
	 
      	
                                                                          7.3

                                                                        	
                                                                          No
      Adverse Change

                                                                        	
                                                                          22

                                                                        
	 
      	
                                                                          7.4

                                                                        	
                                                                          Title
      Policy

                                                                        	
                                                                          22

                                                                        
	 
      	
                                                                          7.5

                                                                        	
                                                                          Delivery
      of Closing Documents

                                                                        	
                                                                          22

                                                                        
	 
      	
                                                                          7.6

                                                                        	
                                                                          Licenses

                                                                        	
                                                                          22

                                                                        
	 
      	
                                                                          7.7

                                                                        	
                                                                          Governmental
      Approvals

                                                                        	
                                                                          22

                                                                        
	 
      	
                                                                          7.8

                                                                        	
                                                                          Third-Party
      Consents

                                                                        	
                                                                          22

                                                                        
	 
      	
                                                                          7.9

                                                                        	
                                                                          No
      New Survey Matters

                                                                        	
                                                                          22

                                                                        
	 
      	 
      	 
      	 
      

                                                                

                                                              

                                                               

                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                      

                                                                    

                                                                    
                                                                      ii

                                                                      
                                                                        

                                                                      

                                                                    

                                                                    
                                                                      
                                                                      

                                                                    

                                                                  

                                                                   

                                                                  TABLE OF CONTENTS
(cont’d)

                                                                   

                                                                

                                                              

                                                              
                                                                	 
      	 
      	 
      	
                                                                        Page

                                                                      

                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        	
                                                                                ARTICLE
      VIII CONDITIONS PRECEDENT TO THE  OBLIGATION OF SELLER TO
      CLOSE

                                                                              	
                                                                                22

                                                                              
	 
      	
                                                                                8.1

                                                                              	
                                                                                Accuracy
      of Representations and Warranties

                                                                              	
                                                                                23

                                                                              
	 
      	
                                                                                8.2

                                                                              	
                                                                                Performance
      of Agreements

                                                                              	
                                                                                23

                                                                              
	 
      	
                                                                                8.3

                                                                              	
                                                                                Delivery
      of Closing Documents

                                                                              	
                                                                                23

                                                                              
	 
      	 
      	 
      	 
      
	
                                                                                ARTICLE
      IX CLOSING

                                                                              	
                                                                                23

                                                                              
	 
      	
                                                                                9.1

                                                                              	
                                                                                Closing
      Date and Place

                                                                              	
                                                                                23

                                                                              
	 
      	
                                                                                9.2

                                                                              	
                                                                                Deliveries
      of Seller

                                                                              	
                                                                                23

                                                                              
	 
      	
                                                                                9.3

                                                                              	
                                                                                Deliveries
      of Buyer

                                                                              	
                                                                                24

                                                                              
	 	9.4	

                                                                                Closing
      Costs

                                                                              	

                                                                                25

                                                                              
	 	9.5	

                                                                                Prorations

                                                                              	

                                                                                25

                                                                              
	 
      	 
      	 
      	 
      
	
                                                                                ARTICLE
      X INDEMNIFICATION

                                                                              	
                                                                                26

                                                                              
	 
      	
                                                                                10.1

                                                                              	
                                                                                General

                                                                              	
                                                                                26

                                                                              
	 
      	
                                                                                10.2

                                                                              	
                                                                                Indemnification
      by Seller

                                                                              	
                                                                                26

                                                                              
	 
      	
                                                                                10.3

                                                                              	
                                                                                Indemnification
      by Buyer

                                                                              	
                                                                                27

                                                                              
	 
      	
                                                                                10.4

                                                                              	
                                                                                Administration
      of Indemnification

                                                                              	
                                                                                27

                                                                              
	 
      	 
      	 
      	 
      
	
                                                                                ARTICLE
      XI DEFAULT AND TERMINATION

                                                                              	
                                                                                28

                                                                              
	 
      	
                                                                                11.1

                                                                              	
                                                                                Right
      of Termination

                                                                              	
                                                                                28

                                                                              
	 
      	
                                                                                11.2

                                                                              	
                                                                                Remedies
      upon Default

                                                                              	
                                                                                29

                                                                              
	 
      	
                                                                                11.3

                                                                              	
                                                                                Specific
      Performance

                                                                              	
                                                                                30

                                                                              
	 
      	
                                                                                11.4

                                                                              	
                                                                                Obligations
      Upon Termination

                                                                              	
                                                                                30

                                                                              
	 
      	
                                                                                11.5

                                                                              	
                                                                                Termination
      Notice

                                                                              	
                                                                                30

                                                                              
	 
      	
                                                                                11.6

                                                                              	
                                                                                Sole
      and Exclusive Remedy

                                                                              	
                                                                                30

                                                                              
	 
      	 
      	 
      	 
      
	
                                                                                ARTICLE
      XII MISCELLANEOUS

                                                                              	
                                                                                31

                                                                              
	 
      	
                                                                                12.1

                                                                              	
                                                                                Further
      Actions

                                                                              	
                                                                                31

                                                                              
	 
      	
                                                                                12.2

                                                                              	
                                                                                Notices

                                                                              	
                                                                                31

                                                                              
	 
      	
                                                                                12.3

                                                                              	
                                                                                Entire
      Agreement

                                                                              	
                                                                                32

                                                                              
	 
      	
                                                                                12.4

                                                                              	
                                                                                Binding
      Effect; Benefits

                                                                              	
                                                                                32

                                                                              
	 
      	
                                                                                12.5

                                                                              	
                                                                                Assignment

                                                                              	
                                                                                32

                                                                              
	 
      	
                                                                                12.6

                                                                              	
                                                                                Governing
      Law

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.7

                                                                              	
                                                                                Amendments
      and Waivers

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.8

                                                                              	
                                                                                Obligations
      Several

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.9

                                                                              	
                                                                                Severability

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.10

                                                                              	
                                                                                Headings

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.11

                                                                              	
                                                                                Counterparts

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.12

                                                                              	
                                                                                References

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.13

                                                                              	
                                                                                Seller
      Disclosure Letter

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.14

                                                                              	
                                                                                Attorneys’
      Fees

                                                                              	
                                                                                33

                                                                              
	 
      	
                                                                                12.15

                                                                              	
                                                                                Section
      1031 Exchange/Tax Planning

                                                                              	
                                                                                34

                                                                              
	 
      	
                                                                                12.16

                                                                              	
                                                                                Casualty

                                                                              	
                                                                                34

                                                                              
	 
      	
                                                                                12.17

                                                                              	
                                                                                Condemnation

                                                                              	
                                                                                34

                                                                              
	 
      	
                                                                                12.18

                                                                              	
                                                                                Limited
      Liability

                                                                              	
                                                                                35

                                                                              
	 
      	
                                                                                12.19

                                                                              	
                                                                                Survival
      of Defined Terms

                                                                              	
                                                                                35

                                                                              

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                               

                                                              
                                                                
                                                                  
                                                                  

                                                                

                                                                
                                                                  iii

                                                                  
                                                                    

                                                                  

                                                                

                                                                
                                                                  
                                                                  

                                                                

                                                              

                                                              
                                                                 

                                                                TABLE OF CONTENTS
(cont’d)

                                                                 

                                                              

                                                              
                                                                
                                                                  
                                                                    	 
      	 
      	 
      	
                                                                            Page

                                                                          

                                                                  

                                                                

                                                              
                                                                
                                                                  	 
      	
                                                                          12.20

                                                                        	
                                                                          Time
      of Essence

                                                                        	
                                                                          35

                                                                        
	 
      	
                                                                          12.21

                                                                        	
                                                                          No
      Third-Party Beneficiary

                                                                        	
                                                                          35

                                                                        
	 
      	
                                                                          12.22

                                                                        	
                                                                          WAIVER
      OF JURY TRIAL

                                                                        	
                                                                          35

                                                                        

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

    

    

    TABLE OF CONTENTS OF SELLER
DISCLOSURE LETTER

     

    
      
        
          
            
              
                	
                        SCHEDULES

                      	 
      
	
                        Schedule
      4.2

                      	
                        Consents
      of Third Parties

                      
	
                        Schedule
      4.5

                      	
                        Judgments

                      
	
                        Schedule
      4.7

                      	
                        Seller’s
      Insurance

                      
	
                        Schedule
      4.8

                      	
                        Litigation,
      Proceedings and Investigations

                      
	
                        Schedule
      4.9

                      	
                        Compliance
      with Laws

                      
	
                        Schedule
      4.10

                      	
                        Environmental
      Matters

                      
	
                        Schedule
      4.14

                      	
                        Rent
      Roll

                      
	
                        Schedule
      4.17

                      	
                        Independent
      Property

                      
	
                        Schedule
      4.18

                      	
                        Utilities
      Access

                      
	
                        Schedule
      4.21

                      	
                        Title
      Encumbrances

                      
	
                        Schedule
      4.23

                      	
                        Loans

                      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                        EXHIBITS

                      	 
      
	
                        EXHIBIT
      A-1

                      	
                        Property
      Description

                      
	
                        EXHIBIT
      A-2

                      	
                        Due
      Diligence Request List

                      
	
                        EXHIBIT
      B

                      	
                        Intentionally
      Omitted

                      
	
                        EXHIBIT
      C

                      	
                        List
      of Licenses Held by Seller

                      
	
                        EXHIBIT
      D

                      	
                        Intentionally
      Omitted

                      
	
                        EXHIBIT
      E

                      	
                        Rent
      Roll

                      
	
                        EXHIBIT
      F

                      	
                        Intentionally
      Omitted

                      
	
                        EXHIBIT
      G

                      	
                        Outstanding
      Citations

                      
	
                        EXHIBIT
      H

                      	
                        Form
      of Audit Letter

                      
	
                        EXHIBIT
      I

                      	
                        Estoppel
      Certificate

                      
	
                        EXHIBIT
      J

                      	
                        Subordination,
      Non-Disturbance and Attornment
Agreement

                      

              

            

          

        

      

    

     

    
      
        
           

        

        
          v

          
            

          

        

        
           

        

      

    

    

    PURCHASE AND SALE
AGREEMENT

     

    THIS PURCHASE AND SALE
AGREEMENT (this “Agreement”) is dated
the 14th day of July, 2010, by: GLOBAL REHAB DALLAS, LP, a
Delaware limited partnership, or its successors or assigns (“Buyer”); GR IRF I, LP, a Texas limited
partnership (“Seller”), and REPUBLIC TITLE OF TEXAS, INC.,
a Texas corporation (“Escrow
Agent”).

     

    RECITALS:

     

    A.           Seller
is the owner of certain real, personal and intangible property constituting that
certain rehabilitation facility located in Dallas County, Dallas, Texas (“Global Rehab”), such
facility being located on the real property described on Exhibit
A-1.

     

    B.           Buyer
desires to acquire, and Seller is willing to convey Global Rehab to Buyer
pursuant to the terms described herein.

     

    C.           Seller
has entered into that certain Hospital Lease Agreement dated August 28, 2007
with GLOBALREHAB, LP, a Texas limited partnership, as lessee, of the Global
Rehab property as amended by amendments dated September 18, 2007, November 9,
2007, February 19, 2009 and August 2, 2010 (the “Lease
Agreement”).

     

    Accordingly,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Seller and Buyer agree as follows:

     

    ARTICLE
I

    TERMINOLOGY

     

    1.1           Defined
Terms.  As
used herein, the following terms shall have the meanings indicated:

     

    Affiliate:  With
respect to any specified person or entity, any other person or entity which,
directly or indirectly controls, is controlled by, or is under common control
with, the specified person or entity.

     

    Applicable Law: Any
federal, state, municipal, county, local, foreign or other statute, law,
ordinance, rule or regulation or any order, writ, injunction, judgment, plan or
decree of any court, arbitrator, department, commission, board, bureau, agency,
authority, instrumentality or other body, whether federal, state, municipal,
county, local, foreign or other.

     

    Closing: The
consummation of the purchase and sale of the Property in accordance with the
terms of this Agreement on the Closing Date, or at such earlier or later date
and time as may be agreed upon by the parties.

     

    Code:  The
Internal Revenue Code of 1986, as amended.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Documents:  This
Agreement, all Exhibits hereto, and all Exhibits and Schedules contained in the
Seller Disclosure Letter, and each other agreement, certificate or instrument to
be delivered pursuant to this Agreement.

     

    Due Diligence
Period:  The period commencing on May 18, 2010 and ending on
July 19, 2010, during which time Buyer may, at reasonable times with prior
notice to Seller, (i) investigate the financial, legal, operational,
environmental and all other aspects of the Property as Buyer may desire, and
(ii) seek out sources of financing and/or investors, all in order to determine
whether to consummate the transactions contemplated by this Agreement or
terminate this Agreement.

     

    Effective
Date:  The date first written above.

     

    Encumbrance:  Any
mortgage, deed to secure debt, deed of trust, pledge, hypothecation, right of
first refusal, security, encumbrance, charge, claim, option or encumbrance of
any kind, whether voluntarily incurred or arising by operation of law or
otherwise, encumbering any assets or property, including any agreement to give
or grant any of the foregoing, any conditional sale or other title retention
agreement, and the filing of or agreement to give any financing statement with
respect to any assets or property under the Uniform Commercial Code or
Applicable Law.

     

    Escrow
Agent:  REPUBLIC TITLE OF TEXAS, INC., a Texas corporation,
Attention:  Jeanne Ragland, 2626 Howell Street, 10th Floor,
Dallas, Texas 75204.

     

    Excluded
Property:  (i) cash, cash equivalents, marketable securities
and bank accounts (excluding Security Deposits), (ii) all insurance policies
relating to the Property and all rights of Seller of every nature and
description, under or arising out of such insurance policies (including the
right to any refund for cancellation of such policies) other than the right to
any claims expressly assigned hereunder, (iii) all claims for refund of taxes
paid by Seller attributable to the Property relating to any period, or any
portion of any period, ending on or prior to the Closing Date, (iv) contract
rights under any contracts not assigned to Buyer, (vi) causes of action accrued
in favor of Seller that arise prior to and to the extent related to the period
prior to the Closing (hereinafter defined), under contracts assigned by Buyer,
(vii) accounts receivable not otherwise subject to proration under this
Agreement and (viii) all partnership, limited liability company or corporate
records of Seller, internal memoranda of Seller, financial projections or
budgets prepared by or for Seller, and similar proprietary, confidential or
privileged information, and any internal memoranda relating to the
foregoing.

     

    Knowledge:  As
used in this Agreement, the term “knowledge” when used to refer to the knowledge
of Seller shall mean the actual knowledge of Jason K. Dodd and/or Greg
Francis.

     

    Licenses:  All
certificates, licenses, and permits issued by governmental authorities which are
required to be held by Seller with respect to the ownership and/or maintenance
of the Property.

     

    
      
        
           

        

        
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    Loss:  Any
and all costs, obligations, liabilities, demands, claims, settlement payments,
awards, judgments, fines, penalties, damages and reasonable out-of-pocket
expenses, including court costs and reasonable attorneys’ fees, whether or not
arising out of a third-party claim.

     

    Permitted
Encumbrance:  Any (i) statutory liens that secure a
governmentally required payment, including without limitation Taxes, not yet
due, (ii) zoning regulations and restrictive covenants and easements of record
that do not detract in any material respect from the present use of the Property
and do not materially and adversely affect, impair or interfere with the use of
any property affected thereby, (iii) public utility easements of record, in
customary form, to serve the Property, and (iv) any other condition of title as
may be approved or deemed approved by Buyer, as more particularly provided in
Sections 3.6(b)
and 3.6(c)
hereof, in writing prior to the end of the Due Diligence Period.

     

    Post-Closing
Licensee:  The Buyer or its designee to whom all Licenses will
be transferred or otherwise obtained in accordance with Applicable Law for the
ownership of the Property.

     

    Seller Disclosure
Letter: The letter dated the same date as this Agreement given by the
Seller to the Buyer and containing some or all of the Exhibits and Schedules
referenced herein.

     

    Taxes:  All
federal, state, local and foreign taxes including, without limitation, income,
gains, transfer, unemployment, withholding, payroll, social security, real
property, personal property, excise, sales, use and franchise taxes, levies,
assessments, imposts, duties, licenses and registration fees and charges of any
nature whatsoever, whether or not recorded, including interest, penalties and
additions with respect thereto and any interest in respect of such additions or
penalties, but excluding all transfer, conveyance, intangibles, mortgage
transfer, and documentary stamp taxes payable in connection with the
transactions contemplated by this Agreement.

     

    Title
Company:  The Title Company is as follows:

     

    Republic
Title of Texas, Inc.

    2626
Howell Street, 10th Floor

    Dallas,
Texas  75204-4064

    Attention:  Jeanne
Ragland

    Telephone
number: 214/855-8897

    Facsimile
number: 214/855-8852

    e-mail:
jragland@republictitle.com

    

    1.2           Additional Defined
Terms.  As
used herein, the following terms shall have the meanings defined in the recitals
or Section indicated below:

     

    
      
        
          
            	
                    Agreement

                  	
                    Preamble

                  
	
                    Buyer

                  	
                    Preamble

                  

          

        

      

    

     

    
      
        
        

      

      
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                    CERCLA

                  	
                    Section
      4.10

                  
	
                    Closing
      Date

                  	
                    Section
      9.1

                  
	
                    Earnest
      Money Deposit

                  	
                    Section
      2.4

                  
	
                    Environmental
      Laws

                  	
                    Section
      4.10

                  
	
                    Escrowed
      Funds

                  	
                    Section
      2.5

                  
	
                    Floor

                  	
                    Section
      10.4(f)

                  
	
                    Governmental
      Approval

                  	
                    Section
      4.6

                  
	
                    Improvements

                  	
                    Section
      2.1(a)

                  
	
                    Indemnified
      Party

                  	
                    Section
      10.4(a)

                  
	
                    Indemnifying
      Party

                  	
                    Section
      10.4(a)

                  
	
                    Independent
      Consideration

                  	
                    Section
      2.4

                  
	
                    Land

                  	
                    Section
      2.1(a)

                  
	
                    Lease
      Agreement

                  	
                    Recitals

                  
	
                    Lease
      Deposits

                  	
                    Section
      2.1(d)

                  
	
                    Material

                  	
                    Section
      12.17

                  
	
                    OFAC

                  	
                    Section
      4.24

                  
	
                    Past
      Effective Date Encumbrances

                  	
                    Section
      3.6(b)

                  
	
                    Patriot
      Act

                  	
                    Section
      4.24

                  
	
                    Permitted
      Buyer-Assignee

                  	
                    Section
      12.5

                  
	
                    Permitted
      Encumbrance

                  	
                    Section
      3.6(b)

                  
	
                    Prevailing
      party

                  	
                    Section
      12.14

                  
	
                    Property

                  	
                    Section
      2.1

                  
	
                    Proration
      Date

                  	
                    Section
      A.9.3(a)

                  
	
                    Proration
      Schedule

                  	
                    Section
      A.9.3(a)

                  
	
                    Purchase
      Price

                  	
                    Section
      2.3

                  
	
                    Real
      Property

                  	
                    Section
      2.1(a)

                  
	
                    Records

                  	
                    Section
      6.10

                  
	
                    Rent
      Roll

                  	
                    Section
      4.14

                  
	
                    Required
      Cure Items

                  	
                    Section
      3.6(b)

                  
	
                    SEC

                  	
                    Section
      6.6(c)

                  
	
                    Seller

                  	
                    Preamble

                  
	
                    Survey

                  	
                    Section
      3.6(d)

                  
	
                    Title
      Commitment

                  	
                    Section
      3.6(a)

                  
	
                    Title
      Defect

                  	
                    Section
      3.6(b)

                  
	
                    Title
      Expenses

                  	
                    Section
      3.6(f)

                  
	
                    Title
      Notice

                  	
                    Section
      3.6(b)

                  
	
                    Transaction
      Costs

                  	
                    Section
      9.4

                  

          

        

      

    

     

    References
to Seller shall mean to refer severally to the respective entities constituting
Seller under this Agreement, as to the property owned by such entity which
constitutes a part of the Property.  Neither of such entities shall
have any liability or responsibility for any breach of this Agreement by the
other entity constituting Seller.

     

    
      
        
           

        

        
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    ARTICLE
II

    PURCHASE
AND SALE

     

    2.1           Property.  Upon
and subject to the terms and conditions provided herein, at Closing, Seller will
sell, transfer, assign and convey to Buyer, and Buyer will purchase from Seller
the following (collectively, the “Property”):

     

    (a)           Real
Property.  All of Seller’s right, title, and interest in and to
that certain parcel of real property consisting of land (“Land”) and all
buildings, structures, fixtures and other improvements (“Improvements”)
located thereon.  The Land is more particularly described on Exhibit
A-1 of the Seller Disclosure Letter.  The Land and Improvements
(collectively, the “Real Property”) shall
be deemed to include all licenses, and all rights-of-way, beneficial easements
and appurtenances related to the Real Property.  

     

    (b)           Intentionally
Deleted.

     

    (c)           Lease
Agreement.  All rights of Seller in, to and under the Lease
Agreement, and any amendments, modifications, supplements, renewals and
extensions thereof.

     

    (d)           Lease
Deposits.  All rights of Seller in and to all deposits, initial
service fees and advances of any kind or nature from any tenant of the Property
(“Lease
Deposits”).

     

    (e)           Records.  True
and complete copies of all the books, records, accounts, files, logs, ledgers,
journals and architectural, mechanical and electrical plans and specifications
in Seller’s possession or control pertaining to or used in the operation of the
Property, however such data is stored.

     

    (f)           Licenses.  Any
and all Licenses now held in the name of the Seller, or any Affiliate(s) of the
Seller, and any renewals, extensions, amendments or modifications
thereof.

     

    (g)           Claims and Causes of
Action.  Rights in and to any claims or causes of action to the
extent they are in the nature of enforcing a guaranty, warranty, or a contract
obligation to complete improvements, make repairs, or deliver services to the
Property after the Closing Date.

     

    (h)           Intellectual
Property.  Any and all rights of Seller or its Affiliates with
respect to the use of (a) all trade names, trademarks, service marks,
copyrights, patents, jingles, slogans, symbols, logos, inventions, computer
software, operating manuals, designs, drawings, plans and specifications,
marketing brochures, logo, symbol, trademark and web site, or other proprietary
material, process, trade secret or trade right used by Seller or its Affiliates
in the ownership and maintenance of the Property and (b) all registrations,
applications and licenses for any of the foregoing, provided that
notwithstanding the sale and transfer to Buyer of the foregoing, Seller and its
Affiliates shall, subject to Section 6.14 hereof,
maintain non-exclusive rights with respect to the use of the designs, drawings,
plans and specifications relating to the Property in connection with the
construction, use and operation of other facilities. 

     

    Notwithstanding
the foregoing provisions of this Section 2.1, the
Property to be conveyed to Buyer shall not include the Excluded
Property.

     

    
      
        
           

        

        
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    2.2           Assumption of
Liabilities.

     

    (a)           Buyer
is assuming no liabilities attributable to the operation or ownership of the
Property which accrued or occurred on or prior to the Closing, all of which
Seller shall pay, discharge and perform when due. Specifically, without limiting
the foregoing, Buyer shall not assume (a) any claim, action, suit, or proceeding
pending as of the Closing or any subsequent claim, action, suit, or proceeding
arising out of or relating to any event occurring prior to Closing, with respect
to the manner in which Seller conducted its businesses on or prior to the
Closing or (b) any liability for Taxes other than real property taxes from and
after Closing.

     

    (b)           Buyer
acknowledges that, effective as of the Closing, Buyer shall assume and undertake
to pay, discharge, and perform only the liabilities and obligations of Seller
under the Lease Agreement (but not any amendments or modifications thereto which
are entered into after the Effective Date hereof not in compliance with this
Agreement), to the extent such liabilities and obligations arise during and
relate to any period from and after the Closing (collectively, the “Assumed
Obligations”).

     

    2.3           Purchase
Price.  The
purchase price for the Property shall be an amount equal to FOURTEEN MILLION
SEVEN HUNDRED FIFTY THOUSAND AND NO/100 U.S. DOLLARS ($14,750,000.00), (the “Purchase Price”),
which shall be paid to Seller for the Property, all of which shall be paid by
Buyer at Closing via wire transfer of immediately available funds.

     

    2.4           Earnest Money
Deposit.  Upon
the expiration of the Due Diligence Period, Buyer shall deposit THREE HUNDRED
FIFTY FIVE THOUSAND AND NO/100 U.S. DOLLARS ($355,000.00) (the “Earnest Money
Deposit”) with Escrow Agent.  The Earnest Money Deposit shall
be refunded to Buyer in the event of a termination of this Agreement for any
reason other than pursuant to Sections 11.1(d) or
11.2(b)
below.  The Earnest Money Deposit shall be nonrefundable to the Buyer
in the event there is a termination of this Agreement pursuant to Sections 11.1(d) or
11.2(b)
below.   If this Agreement is terminated for any reason and Buyer
is entitled to receive a return of the Earnest Money Deposit pursuant to the
terms hereof, the Escrow Agent must first disburse to Seller the sum of One
Hundred Dollars ($100.00) as independent consideration for Seller’s performance
under this Agreement (“Independent
Consideration”), which will be retained by Seller in all
instances.

     

    2.5           Escrow Agent.

     

    (a)           By
its execution and delivery of this Agreement, Escrow Agent agrees to be bound by
the terms and conditions in Section 2.4 of this
Agreement to the extent applicable to its duties, liabilities and obligations as
“Escrow Agent.”  Escrow Agent shall hold and dispose of the funds
deposited with the Escrow Agent pursuant to this Agreement (“Escrowed Funds”) in
accordance with the terms of this Agreement.  Escrow Agent shall incur
no liability in connection with the safekeeping or disposition of the Escrowed
Funds for any reason other than Escrow Agent’s breach of contract, willful
misconduct or gross negligence.  Escrow Agent shall be reimbursed by
Buyer and Seller, jointly and severally, for all out-of-pocket costs and
expenses incurred in connection with its obligations hereunder.  If
Escrow Agent is in doubt as to its duties or obligations with regard to the
Escrowed Funds, or if the Escrow Agent receives conflicting instructions from
Buyer and Seller with respect to the Escrowed Funds, the Escrow Agent shall not
be required to disburse the Escrowed Funds and may, at its option, continue to
hold the Escrowed Funds until both Buyer and Seller agree as to their
disposition, or until a final judgment is entered by a court of competent
jurisdiction directing their disposition, or the Escrow Agent may interplead the
Escrowed Funds in accordance with the laws of the State of
Florida.  Escrow Agent shall not be responsible for the preservation
of principal or any interest on the Escrowed Funds except as is actually earned,
or for the loss of any interest or principal resulting from the withdrawal of
the Escrowed Funds prior to the date interest is posted
thereon.  

     

    
      
        
           

        

        
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    (b)           The
Escrow Agent may resign upon written notice to the Seller and
Buyer.  If a successor escrow agent is not appointed by the Seller and
Buyer within this thirty (30) day period, the Escrow Agent may, but shall have
no duty to, petition a court of competent jurisdiction to name a
successor.  If no successor escrow agent is appointed within thirty
(30) days after such written notice, the Escrow Agent may withhold performance
by it pursuant to Section 5(a) until
such time as a successor escrow agent is appointed and, at such time, the Escrow
Agent shall deliver the Escrowed Funds or other documents, instruments or items,
if any, delivered to the Escrow Agent hereunder to any such successor escrow
agent; provided, however, the Escrow
Agent shall act in accordance with any joint written instructions from the
Seller and Buyer.

     

    (c)           The
Escrow Agent may be removed, with or without cause, by the Buyer and Seller
acting jointly at any time by providing written notice to the Escrow
Agent.

     

    (d)           This
Section 2.5
shall survive the Closing or the expiration or any termination of this
Agreement.

     

    ARTICLE
III

    DUE
DILIGENCE PERIOD

     

    3.1           Due Diligence
Period.  During
the Due Diligence Period, Buyer shall have the right to a complete physical
inspection of the Property as the Buyer deems appropriate to review and evaluate
the Property, the nature and extent of the Property, and operations of the
Property, and all rights and liabilities related thereto.  In
consideration of the execution of this Agreement, Seller agrees to cause to be
provided to or made available to Buyer, at no cost to Buyer, all items requested
on Exhibit
A-2 to the
Seller Disclosure Letter, via electronic mail submission or electronic data
room, in an electronic format from which Buyer can generate an accurate and
complete paper copy that is both legible and suitable for inspection and
review.  Buyer may request that other items be provided by Seller in
addition to those already requested or provided, which items shall be mutually
agreed upon by the Buyer and Seller in their reasonable
discretion.  During the Due Diligence Period, Buyer shall have
reasonable access to the Property at all reasonable times during normal business
hours for the purpose of conducting reasonably necessary tests, including
surveys and architectural, engineering, geotechnical and environmental
inspections and tests, provided that, when practicable, (a) Buyer will give
Seller prior notice of any such inspection or test and Seller shall have the
right to have a representative accompany Buyer for any such inspection or test,
and (b) all such tests shall be conducted by Buyer in compliance with
Buyer’s responsibilities set forth in Section 3.2
below.  If Closing occurs, the parties have agreed to share certain
expenses as provided in Section 9.4
below.

     

    
      
        
           

        

        
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    3.2           Buyer’s
Responsibilities.  In
conducting any inspections, investigations or tests of the Property, Buyer shall
(i) not unreasonably disturb the tenants or interfere with their use of the
Property or knowingly cause a breach in any tenant’s lease; (ii) not
materially or unreasonably interfere with the operation and maintenance of the
Property; (iii) not materially damage any part of the Property or any
personal property owned or held by any tenant or any third party; (iv) not
injure or otherwise cause bodily harm to Seller or its agents, guests, invitees,
contractors and employees or any tenants or their guests or invitees;
(v) comply in all material respects with all Applicable Laws and any
reasonable rules as may be promulgated by Seller and provided to Buyer regarding
access to the Property; and (vi) not permit any Encumbrances to attach to
the Property by reason of the exercise of its rights hereunder.  A
representative of Seller shall have the right to accompany Buyer and/or Buyer’s
consultants and/or contractors at all times when Buyer and/or any such
consultants and/or contractors are on the Property.  Promptly after
any inspections or tests, Buyer must restore the Property to its pre-inspection
condition at Buyer’s sole cost and expense.  Buyer’s obligation to
restore the Property will survive termination of this Agreement.  From
and after the Effective Date, prior to Buyer or any contractor or consultant of
Buyer or any contractor or consultant of Buyer entering the Property to conduct
the inspections and tests described above, Buyer or each such contractor or
consultant shall obtain and maintain general liability insurance in the amount
of One Million Dollars and NO/100 Dollars ($1,000,000.00) combined single limit
for personal injury and property damage per occurrence.  Seller shall
be named as additional insureds under such coverage and, at Seller’s request, a
certificate of such coverage shall be provided to Seller prior to any entry by
Buyer and each such consultant entering on to the Property.

     

    3.3           Continuing Diligence and
Inspection Rights.  Following
the expiration of the Due Diligence Period, and prior to the Closing or any
earlier termination of this Agreement, at reasonable times and upon reasonable
notice, Buyer or Buyer’s agent(s), consultants, or other retained professionals
shall have the right, at Buyer’s expense, to perform or complete such further
inspections and assessments of the Property as Buyer deems necessary or
desirable to comply with Buyer’s internal requirements or the requirements of
Buyer’s lenders, investors or members, including, without limitation, further
inspection of environmental and structural aspects, assessments of the
compliance of the Property with all Applicable Laws, and customary pre-closing
walk-throughs; provided, however, that (i)
nothing in this Section 3.3 shall
extend the Due Diligence Period and (ii) all insurance coverage required under
Section 3.2 is
maintained at all times that Buyer and any such agents, consultants or other
professionals are on the Property.

     

    3.4           Reports.  Subject
to any confidentiality requirements set forth therein or which otherwise apply
thereto, Buyer shall promptly provide to Seller copies of all third party
reports, investigations and studies prepared for Buyer in connection with its
due diligence review of the Property, including without limitation, any and all
reports involving structural or geological conditions, environmental hazardous
waste or hazardous substances contamination of the Property, if any. The reports
will be delivered to Seller without any representation or warranty as to the
completeness or accuracy of the reports or any other matter relating
thereto.  Buyer shall provide the reports to Seller at no cost to
Seller except in the event of a Seller default in which case Section 11.2(a)(i)
shall apply.  Seller agrees not to disclose the reports or the
contents thereof to any third parties other than GLOBALREHAB, LP (but Seller
shall require GLOBALREHAB, LP not to disclose such reports or the contents
thereof), unless Seller first reimburses Buyer for the costs of such report;
provided, however, that in the
event of a termination by Seller for breach by Buyer pursuant to Section 11.2(b),
Seller shall not be required to reimburse Buyer therefor.

     

    
      
        
           

        

        
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    3.5           Buyer’s Agreement to
Indemnify.  Buyer
hereby agrees to indemnify, defend and hold Seller harmless from and against any
and all Encumbrances, claims, causes of action, damages, liabilities and
expenses (including reasonable attorneys’ fees) to the extent caused by Buyer’s
inspections or tests permitted under this Agreement; provided, however, the
indemnity does not extend to protect Seller from any preexisting liabilities for
matters newly discovered by Buyer.  Buyer’s obligation under this
Section will survive termination of this Agreement for twelve (12)
months.

     

    3.6           Title Insurance and
Survey.

     

    (a)           Within
five (5) days after the execution of this Agreement, Buyer shall order
commitments for owner’s policies of title insurance (the “Title Commitment”)
issued by the Title Company, as agent for First American Title Insurance
Company, covering fee simple title to the Property.  Such Title
Commitments shall have attached thereto complete, legible copies of all
instruments noted as exceptions therein, and shall be delivered promptly to
Buyer upon receipt by Seller. Buyer shall furnish Seller with a copy of the
title commitment and attachments, and all subsequent revisions thereof, promptly
upon receipt of same.

     

    (b)           If
(i) either of the Title Commitments reflect any exceptions to title other
than Permitted Encumbrances which are not acceptable to Buyer in Buyer’s sole
discretion, or (ii) the Survey to be obtained by Buyer pursuant to Section 3.6(d) below
discloses anything not acceptable to Buyer in Buyer’s sole discretion, (any such
exception or unacceptable statement of fact being referred to herein as a “Title Defect”), then
Buyer shall give Seller written notice of such Title Defect within ten (10) days
of Buyer’s receipt of such Title Commitment (the “Title
Notice”).  The Title Notice shall include a copy of the
relevant Title Commitment and copies of the exceptions.  Any exception
to title that is (x) disclosed in the Title Commitment, or
(y) identified on a Survey, which, in either case, is not identified as a
Title Defect in the Title Notice, shall be irrevocably deemed to be a “Permitted
Encumbrance” for purposes of this Agreement (collectively, “Permitted
Encumbrances”).  Seller shall have the right, but not the
obligation, within ten (10) days after receipt of any such Title Notice, to
notify Buyer that Seller will take the action necessary to remove such Title
Defect.  If Seller elects to so notify Buyer, then, on or before the
Closing, Seller shall provide Buyer with reasonable evidence of such
removal.  Notwithstanding anything contained herein to the contrary,
the following items (collectively, the “Required Cure Items”)
must be cured prior to or at Closing (with Seller having the right to apply the
portion of the Purchase Price allocated to either such party pursuant to Section 2.3 hereof,
or a portion thereof, for such purpose): (x) all deeds of trust, mortgages,
security deeds, and other security instruments, (y) all past Taxes, the failure
to pay which would result in a statutory lien being imposed upon the Real
Property, and (z) all judgments against the Seller which may constitute a
Encumbrance against all or part of the Property.  In addition, if at
any time after the expiration of the Due Diligence Period and prior to the
Closing, title to Seller’s interests in the Property is encumbered by any Title
Defect, which was not on the initial Title Commitment for the Property and was
solely caused by the action or inaction of Seller (collectively, “Past Effective Date
Encumbrances”) and is not acceptable to Buyer in Buyer’s sole discretion,
then Buyer shall within ten (10) days following receipt of actual notice
thereof, give Seller a Title Notice with respect to any such Past Effective Date
Encumbrances.  In the event Buyer fails to deliver a Title Notice with
respect to a Past Effective Date Encumbrance within such ten (10) day period,
such Past Effective Date Encumbrance shall constitute a Permitted
Encumbrance.

     

    
      
        
           

        

        
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    (c)           In
the event (x) Buyer timely gives a Title Notice to Seller and the Title Defects
specified therein are not cured on or before the Closing, (y) a Required Cure
Item is not cured on or before the Closing, or (z) if Seller does not timely
notify Buyer that Seller will remove Title Defects within the ten (10) days as
specified above (in which case Buyer shall make its election pursuant to this
subsection (c) prior to the earlier of the Closing or fifteen  (15)
days following the date of such Title Notice), Buyer shall have the option
to:

     

    
      	
               
      

            	
              (i)

            	
              accept
      Seller’s interest in the Real Property subject to such Title Defect(s) or
      Required Cure Item(s), in which event such Title Defect(s) or Required
      Cure Item(s) shall become part of the Permitted Encumbrances, and to close
      the transaction contemplated hereby in accordance with the terms of this
      Agreement;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              in
      the case of Required Cure Item(s), pay any sum necessary to cure the
      Required Cure Item(s) and deduct such amount from the Purchase Price;
      or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              by
      giving Seller written notice of Buyer’s election, terminate this
      Agreement, in which event no party shall have any further rights or
      obligations to the other hereunder, except for such rights and obligations
      that, by the express terms hereof, survive any termination of this
      Agreement.  If Buyer elects to proceed with the Closing without
      giving notice of its election under paragraph (ii) immediately above or
      this paragraph (iii), Buyer will be irrevocably deemed to have accepted
      such Title Defect(s) or Required Cure Item(s) as Permitted
      Encumbrances.

            

    

     

    Notwithstanding
the foregoing, nothing contained in this Section 3.6(c) shall
limit the right of the Buyer to pursue any and all remedies provided in Section 11.2 of
this Agreement as a result of Seller’s default.

     

    (d)           Seller
has previously provided Buyer with copies of any existing boundary surveys for
the Property.  Buyer may order one or more boundary surveys for the
Property (the “Survey”) prepared by
a registered land surveyor or surveyors satisfactory to Buyer.  Each
Survey shall (i) be completed in accordance with Buyer’s reasonable survey
requirements, and shall be certified to Buyer, the Title Company, First American
Title Insurance Company and any Lender of Buyer by such surveyor; (ii) have
one perimeter description for the Property; (iii) show all easements,
rights-of-way, setback lines, encroachments and other matters affecting the use
or development of the Property; and (iv) disclose on the face thereof the
gross and net acreage of the Property.

     

    
      
        
           

        

        
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    (e)           Seller
covenants and agrees that at or prior to Closing, Seller shall (i) pay or cause
to be paid in full and cause to be canceled and discharged or otherwise bond and
discharge as Encumbrances against the Property all mechanics’, materialmen’s,
repairmen’s, contractors’ or other similar Encumbrances which encumber the
Property as of the Effective Date created by, through or under Seller or which
may be filed against the Property after the Effective Date created by, through
or under Seller and on or prior to the Closing Date, (ii) pay or cause to be
paid in full all past due ad valorem taxes and assessments of any kind
constituting an Encumbrance against the Property which are due and payable, and
(iii) pay or cause to be paid in full, or cause to be canceled and discharged
all security deeds or other security instruments encumbering the property and
created by or through Seller, except to the extent Buyer assumes any of the
obligations secured by such instruments, and all judgments which have attached
to and become an Encumbrance against the Property by, through or under
Seller.  In the event Seller fails to cause such liens and
encumbrances to be paid and canceled at or prior to Closing, Buyer shall be
entitled to pay such amount to the holder thereof as may be required to pay and
cancel same, and to credit the amount so paid against the Purchase Price
allocated to the Buyer pursuant to Section 2.3
hereof.  Notwithstanding the foregoing, nothing contained in this
Section 3.6(c)
shall limit the right of the Buyer to pursue any and all remedies provided in
Section 11.2 of
this Agreement as a result of Seller’s default.

     

    (f)           All
Title Expenses shall be paid by the parties in accordance with Section 9.4 hereof.
“Title Expenses” shall include all costs and expenses of obtaining the Survey
and Title Commitment, together with any endorsements required by any lender
financing the Buyer’s acquisition of the Property.  “Title Expenses”
shall exclude any costs and expenses incurred or required to be incurred to cure
any Title Defects or Required Cure Items.

     

    ARTICLE
IV

    REPRESENTATIONS
AND WARRANTIES OF SELLER 

     

    Each
entity constituting Seller hereby severally represents and warrants to the Buyer
as to such entity and/or the property owned by such entity, as of the Effective
Date and as of the Closing as follows:

     

    4.1           Organization; Good
Standing of
Seller.  Seller
is a limited partnership, validly existing and in good standing under the laws
of the State of Texas, and is duly qualified to do business in the State of
Texas, with all requisite company power and authority to carry on its business
in the manner and in the location in which such business has been and is now
being conducted, to execute and deliver this Agreement, and to perform its
obligations hereunder.

     

    4.2           Consent of Third
Parties.  Except
as otherwise set forth on Schedule 4.2 of the Seller Disclosure
Letter, no consent or approval of any third party is required as a
condition to the entering into, performance or delivery of this Agreement by
Seller other than such consent as has been previously obtained.

     

    4.3           Authority;
Enforceability.  The
execution and delivery of this Agreement has been duly authorized by Seller, and
this Agreement constitutes the valid and binding obligation and agreement of
Seller, enforceable against Seller in accordance with its terms.

     

    
      
        
           

        

        
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    4.4           Absence of
Conflicts.  Subject
to obtaining the consents and approvals described on Schedule 4.2 of the Seller Disclosure
Letter, neither the execution, delivery or performance of this Agreement
will (i) conflict with or result in any breach of any of the terms,
conditions or provisions of, (ii) constitute a default under,
(iii) result in a violation of, or (iv) give any third party the right
to modify, terminate, or accelerate any obligation under, the provisions of the
articles of organization or operating agreement of Seller and/or its Affiliates,
any indenture, mortgage, lease, loan agreement or other agreement or instrument
to which Seller and/or its Affiliates is bound or affected or any Applicable
Law.

     

    4.5           No
Judgments.  Except
as set forth on Schedule 4.5 of the Seller Disclosure
Letter, there are no judgments presently outstanding and unsatisfied
against the Property, the Seller or any of Seller’s assets.

     

    4.6           No Governmental
Approvals.  Except
as contemplated under Section 4.13 below,
no order, permission, consent, approval, license, authorization,
registration or validation of, or filing with, or exemption by (collectively and
individually “Governmental
Approval”), any governmental agency, commission, board or public
authority is required to authorize, or is required in connection with the
execution, delivery and performance by Seller of this Agreement or the taking of
any action contemplated by this Agreement, which has not been obtained. To
Seller’s knowledge, there are no conditions or circumstances existing which
would prevent Buyer from obtaining any necessary Governmental Approval for the
ownership of the Property.

     

    4.7           Insurance.  Schedule 4.7 of the Seller Disclosure
Letter sets forth an accurate summary of all general liability, fire,
theft, professional liability and other insurance currently maintained with
respect to the Property.  Seller has not taken any action or failed to
act in a manner, including the failure of Seller to give any notice or
information, which would limit or impair the rights of Seller under such
insurance policies.  Prior to Closing Seller will promptly notify
Buyer of any potential losses or claims that may be covered by the casualty
insurance and shall provide Buyer with current loss runs within fifteen (15)
days after the end of each month from the Effective Date until the
Closing.

     

    4.8           Litigation.  Except
as set forth on Schedule 4.8 of the Seller Disclosure
Letter, there is no pending or, to Seller’s knowledge, considered or
threatened judgment, litigation, proceeding, investigation or inquiry (by any
person, governmental or quasi-governmental agency or authority or otherwise to
which Seller or the Property is a party, including without limitation,
litigation brought by Seller against any third party.

     

    4.9           Compliance with
Laws.  Except
as provided on Schedule 4.9 of the Seller Disclosure
Letter, the Property has been and is presently owned and maintained by
Seller in Seller’s capacity as the owner and landlord of the Property, and to
Seller’s knowledge was constructed, in compliance in all respects with any
Applicable Law affecting the Property or any part thereof.  Seller has
not received notice of any violation of Applicable Law.  Buyer
acknowledges that Seller does not operate the business conducted at the Property
and makes no representations or warranties with respect thereto.

     

    4.10           Environmental
Matters.  Except
as identified on Schedule 4.10 of the Seller Disclosure
Letter, to Seller’s knowledge, Seller has not generated, stored or
disposed of any hazardous substance at or on the Property except in accordance
with Applicable Law, and Seller has knowledge of any previous or present
generation, storage, disposal or existence of any hazardous substance at or on
the Property, except for those materials used in connection with the normal
operation of the Property in accordance with all Applicable Laws.  The
term “hazardous substance” shall mean “hazardous waste,” “toxic substances,”
“petroleum products,” “pollutants,” or other similar or related terms as defined
or used from time to time in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (“CERCLA”) (42 U.S.C.
§§ 1801, et
seq.), the
Resource Conservation and Recovery Act, as amended (42 U.S.C. § 6921, et seq.), similar state
laws and regulations (the “Environmental Laws”)
adopted thereunder.  Except as may be
set forth in Schedule
4.10, Seller has not filed or been required to file any notice reporting
a release of any hazardous substance into the environment, and no notice
pursuant to Section 103(a) or (c) of the CERCLA, 42 U.S.C. § 9601, et seq. or any other
Environmental Law has been or was required to be filed.  Seller has
not received any notice letter under any Environmental Law or any notice or
claim, and there is no investigation pending, contemplated, or to Seller’s or
knowledge threatened, to the effect that Seller is or may be liable for or as a
result of the release or threatened release of hazardous substance into the
environment or for the suspected unlawful presence of any hazardous waste on the
Property.  Seller agrees to indemnify and hold Buyer and its
Affiliates harmless from any Loss resulting from a breach of the representations
and warranties contained in this Section
4.10.  Notwithstanding the provisions of ARTICLE X, the
agreement to indemnify in this Section 4.10 shall
survive the Closing.

     

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    4.11           Assessments.  There
are no special or other assessments for public improvements or otherwise now
affecting the Property, no pending or, to Seller’s knowledge, threatened special
assessments affecting the Property, and no contemplated improvements affecting
the Property that may result in special assessments affecting the
Property.

     

    4.12           Lease
Agreement.  The
Lease Agreement is in full force and effect and no default exists on the part of
any party thereto.  Other than the Lease Agreement, Seller is not a
party to any other contracts, leases, agreements, commitments or other
arrangements with respect to the Property.

     

    4.13           Licenses.  Exhibit
C of the
Seller Disclosure Letter is a true and complete list of all Licenses held by the
Seller.  The Licenses listed on Exhibit
C are valid and no material violations exist with respect to such
Licenses.  To Seller’s knowledge, no other Licenses are required to be
held by the Seller for Seller’s ownership or maintenance of the
Property.  No applications, complaints or proceedings are pending or,
to Seller’s knowledge, contemplated or threatened which may (i) result in the
revocation, modification, non-renewal or suspension of any License or of the
denial of any pending applications, (ii) the issuance of any cease and desist
order, or (iii) the imposition of any fines, forfeitures, or other
administrative actions with respect to the Property.  A list of all
unsatisfied or otherwise outstanding citations with respect to the Property is
shown on Exhibit
G of the
Seller Disclosure Letter.

     

    4.14           Rent Roll.  Except
as otherwise noted on Schedule 4.14 of the Seller Disclosure
Letter, the rent roll attached as Exhibit
E of the Seller Disclosure Letter (the “Rent Roll”) is true
and complete and the Lease Agreement identified on the Rent Roll is currently in
full force and effect as of the date of the Rent Roll.

     

    
      
        
           

        

        
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    4.15           Condemnation.  Seller
has not received any written notice of any pending or contemplated condemnation,
eminent domain or similar proceeding, with respect to all or any portion of the
Property.

     

    4.16           Personal
Property.  Seller
does not own any personal property located at or upon, or otherwise used in
connection with, the Property.

     

    4.17           Independent
Property.  Except
as described on Schedule 4.17 of the Seller Disclosure
Letter, the Property is an independent unit which does not rely on
facilities (other than facilities of public utility, sewer and water companies)
located on any property not included in the Property (i) to fulfill any
zoning, building code, or other municipal or governmental requirement, or
(ii) for structural support or the furnishing of any essential building
systems or utilities, including, but not limited to, electric, plumbing,
mechanical, heating, ventilating and air conditioning systems.  To
Seller’s knowledge no building or other improvements not included in the
Property relies on any part of the Property to fulfill any zoning, building
code, or other municipal or governmental requirement or for structural support
or the furnishing of any essential building systems or utilities.

     

    4.18           Utilities
Access.  Except
as described on Schedule 4.18 of the Seller Disclosure
Letter, the Real Property has water supply, storm and sanitary sewer
facilities, access to telephone, gas and electricity connections, fire
protection, drainage, means of ingress and egress to and from public highways
and, without limitation, other public utilities, all sufficient for normal
operations.  The parking facilities located on the Property comply
with all Applicable Laws or meet requisite exceptions or variances to such
laws.  All public utilities are installed and operating, and all
installation and connection charges have been paid in full.  Seller
does not have knowledge of any fact or condition existing that would result or
could result in the termination or reduction of the current access from the
Property to the existing roads and highways or to sewer or other utility
services presently serving the Property.

     

    4.19           Zoning.  Except
as provided on Schedule 4.9 of the
Seller Disclosure Letter, to Seller’s knowledge the current use of the
Property is permitted under the applicable municipal zoning ordinances, or
special exceptions, variances, or conditions thereto, and the Property complies,
to the extent required (including any waiver or grandfathering), with all
conditions, restrictions and requirements of such zoning ordinances and all
amendments thereto.

     

    4.20           FIRPTA.  Seller
is not a “foreign person” within the meaning of Section
1445 of the Code and the Regulations issued thereunder.

     

    4.21           Title
Encumbrances.  Except
as described on Schedule 4.21 of the Seller Disclosure
Letter, Seller is not in default under any of its material obligations
under any recorded agreement, easement or instrument encumbering title to the
Property, and Seller has no knowledge of any material default on the part of any
other party thereto.

     

    4.22           Interests; Title to Real
Property. Seller owns one hundred percent (100%) of the ownership
interest in the Real Property, free and clear of all Encumbrances except
Permitted Encumbrances.  There are no outstanding options or other
rights to purchase or otherwise acquire any ownership interest in the
Property.

     

    
      
        
           

        

        
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    4.23           Loans.  Except
as described on Schedule 4.23 of the Seller Disclosure
Letter, there are no loans on the Property.

     

    4.24           Patriot Act
Compliance.  To
the extent applicable to Seller, to Seller’s knowledge Seller has complied in
all material respects with the International Money Laundering Abatement and
Anti-Terrorist Financing Act of 2001, which comprises Title III of the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001 (the “Patriot Act”) and the
regulations promulgated thereunder, and the rules and regulations administered
by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), to the extent
such laws are applicable to Seller.  Seller is not included on the
List of Specially Designated Nationals and Blocked Persons maintained by the
OFAC, nor is it a resident in, or organized or chartered under the laws of,
(A) a jurisdiction that has been designated by the U.S. Secretary of the
Treasury under Section 311 or 312 of the Patriot Act as warranting special
measures due to money laundering concerns or (B) any foreign country that
has been designated as non-cooperative with international anti-money laundering
principles or procedures by an intergovernmental group or organization, such as
the Financial Action Task Force on Money Laundering, of which the United States
is a member and with which designation the United States representative to the
group or organization continues to concur.

     

    4.25           Broker’s or Finder’s
Fees.  Other
than a commission payable by Seller to Cain Brothers, San Francisco, California,
in accordance with a separate agreement with Seller, no agent, broker,
investment banker or other person or firm acting on behalf of or under the
authority of Seller or any Affiliate of Seller is or will be entitled to any
broker’s or finder’s fee or any other commission or similar fee, directly or
indirectly, in connection with the transactions contemplated by this
Agreement.  This Section 4.25 shall
survive the Closing or the expiration or any termination of this
Agreement.

    

    4.26           Insolvency.  Neither
Seller nor Seller’s general partner have (i) commenced a voluntary case or
had entered against them a petition for relief under any Applicable Law relative
to bankruptcy, insolvency, or other relief for debtors, (ii) caused,
suffered or consented to the appointment of a receiver, trustee, administrator,
conservator, liquidator, or similar official in any federal, state or foreign
judicial or nonjudicial proceeding to hold, administer, and/or liquidate all or
substantially all of their respective assets, (iii) had filed against them
any involuntary petition seeking relief under any Applicable Law relative to
bankruptcy, insolvency, or other relief to debtors which involuntary petition is
not dismissed within sixty (60) days, or (iv) made a general assignment for
the benefit of creditors.

     

    4.27           Due
Diligence.  Seller
has provided Buyer with complete and accurate originals or copies of all items
requested on Exhibit
A-2.

     

    4.28           Survival of Representations
and Warranties.  The
representations and warranties set forth in this ARTICLE IV are made
as of the Effective Date and are remade as of the Closing Date and will survive
the Closing for a period of twelve (12) months.

     

    4.29           Disclaimer.  BUYER
ACKNOWLEDGES AND AGREES THAT UPON CLOSING,  SELLER SHALL SELL AND CONVEY TO
BUYER AND BUYER SHALL ACCEPT THE REAL PROPERTY “AS IS, WHERE IS, WITH ALL
FAULTS” AND BUYER HEREBY UNCONDITIONALLY WAIVES ANY IMPLIED WARRANTY OF
SUITABILITY EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE DEED OR
ANY OTHER DOCUMENTS DELIVERED AT CLOSING.  EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT OR IN THE DEEDS OR ANY OTHER DOCUMENTS DELIVERED AT
CLOSING, BUYER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER HAS NOT MADE AND
IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTEES,
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE REAL PROPERTY OR
RELATING THERETO MADE OR FURNISHED BY SELLER, OR ANY REAL ESTATE BROKER, AGENT
OR THIRD PARTY REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE
OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING.  BUYER
REPRESENTS THAT IT IS A KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED PURCHASER
OF REAL ESTATE AND THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN
THE DEEDS OR ANY OTHER DOCUMENTS DELIVERED AT CLOSING, IT IS RELYING SOLELY ON
ITS OWN EXPERTISE AND THAT OF BUYER’S CONSULTANTS IN PURCHASING THE REAL
PROPERTY AND SHALL MAKE AN INDEPENDENT VERIFICATION OF THE ACCURACY OF ANY
DOCUMENTS AND INFORMATION PROVIDED BY SELLER.  BUYER WILL CONDUCT SUCH
INSPECTIONS AND INVESTIGATIONS OF THE REAL PROPERTY AS BUYER DEEMS NECESSARY,
INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS
THEREOF, AND SHALL RELY UPON SAME.  BY FAILING TO TERMINATE THIS
AGREEMENT PRIOR TO THE EXPIRATION OF THE DUE DILIGENCE PERIOD, BUYER
ACKNOWLEDGES THAT SELLER HAS AFFORDED BUYER A FULL OPPORTUNITY TO CONDUCT SUCH
INVESTIGATIONS OF THE REAL PROPERTY AS BUYER DEEMED NECESSARY TO SATISFY ITSELF
AS TO THE CONDITION OF THE REAL PROPERTY AND THE EXISTENCE OR NON-EXISTENCE OR
CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS SUBSTANCES ON OR
DISCHARGED FROM THE REAL PROPERTY, AND EXCEPT FOR SELLER’S REPRESENTATIONS IN
THIS AGREEMENT, WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED
BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER
THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY
SET FORTH IN THIS AGREEMENT.  UPON CLOSING, AND EXCEPT AS BUYER MAY
RELY ON SELLER’S REPRESENTATIONS HEREIN, BUYER SHALL ASSUME THE RISK THAT
ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL OR CONSTRUCTION
DEFECTS OR ADVERSE ENVIRONMENTAL, HEALTH OR SAFETY CONDITIONS, MAY NOT HAVE BEEN
REVEALED BY BUYER’S INSPECTIONS AND INVESTIGATIONS.  BUYER HEREBY
REPRESENTS AND WARRANTS TO SELLER THAT:  (A) BUYER IS REPRESENTED
BY LEGAL COUNSEL IN CONNECTION WITH THE TRANSACTION CONTEMPLATED BY THIS
AGREEMENT; AND (B) BUYER IS PURCHASING THE REAL PROPERTY FOR BUSINESS,
COMMERCIAL, INVESTMENT OR OTHER SIMILAR PURPOSE AND NOT FOR USE AS BUYER’S
RESIDENCE.  EACH PARTY WAIVES ANY AND ALL RIGHTS OR REMEDIES IT MAY
HAVE OR BE ENTITLED TO, DERIVING FROM DISPARITY IN SIZE OR FROM ANY SIGNIFICANT
DISPARATE BARGAINING POSITION IN RELATION TO THE OTHER PARTY.

     

    
      
        
           

        

        
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    4.30           Updates
to Representations and Warranties.  On
or before the date which is five (5) days prior to the Closing Date, Seller
shall have the right to update the representations and warranties contained in
this ARTICLE IV
to reflect new facts or circumstances which did not exist as of the Effective
Date or the date upon which the Schedules are acknowledged by Buyer pursuant to
Section 12.13
hereof (provided that with respect to any representations or warranties that are
qualified by Seller’s knowledge, then so long as Seller did not have knowledge
of such new facts or circumstances as of the Effective Date or the date upon
which the Schedules are acknowledged by Buyer pursuant to Section 12.13 hereof)
by delivery of written notice to Buyer.  Upon receipt of any such
written notice updating the representations and warranties in this ARTICLE IV, Buyer
shall have the right to terminate this Agreement and receive a refund of the
Earnest Money Deposit, by delivery of written notice to Seller on or before the
first to occur of (i) the expiration of five (5) days following the date of
delivery of such written notice from Seller or (ii) the Closing
Date.  In the event Buyer does not elect to terminate this Agreement
within the time provided in the immediately preceding sentence, Buyer shall be
deemed to have waived any breach of the representations and warranties contained
in this ARTICLE
IV as a result of the matters referenced in such written notice, and the
representations and warranties in this ARTICLE IV shall be
deemed to be modified to take into account all matters referred to in such
notice.

     

    ARTICLE
V

    REPRESENTATIONS
AND WARRANTIES OF BUYER

     

    Buyer
represents and warrants to Seller as of the Effective Date and as of the Closing
as follows:

     

    5.1           Organization and Good
Standing.  Buyer
is a limited partnership duly organized, validly existing and in good standing
under the laws of the State of Delaware.  Buyer has all requisite
corporate power to own, operate, and lease the Property and carry on business as
it is now being conducted and as the same will be conducted following the
Closing.  As of the Closing, Buyer will be registered to do business
under the laws of the State of Florida.

     

    5.2           Authorization and Binding
Effect of Documents.  The
execution and delivery of this Agreement has been duly authorized by Buyer, and
this Agreement constitutes the valid and binding obligation and agreement of
Buyer, enforceable in accordance with its terms (subject to the effect of
bankruptcy, insolvency fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditor’s rights and remedies generally, and to
limitations imposed by general principles of equity, whether applied by a court
of law or of equity).

     

    5.3           Absence of
Conflicts.  Neither
the execution and delivery of this Agreement, nor compliance with the terms and
provisions hereof, will (i) conflict with or result in any breach of any of
the terms, conditions or provisions of, (ii) constitute a default under,
(iii) result in a violation of, or (iv) give any third party the right
to modify, terminate, or accelerate any obligation under, the provisions of the
articles of organization and any applicable limited liability company agreement
or operating agreement of Buyer and/or its Affiliates, any indenture, mortgage,
lease, loan agreement or other agreement or instrument to which Buyer and/or its
Affiliates is bound or affected, or any Applicable Law to which Buyer and/or its
Affiliates is subject.

     

    
      
        
           

        

        
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    5.4           Consents.  The
execution, delivery and performance by Buyer and/or its Affiliates of this
Agreement and the other Documents, and consummation by Buyer and/or its
Affiliates of the transactions contemplated hereby and thereby, do not and will
not require the authorization, consent, approval, exemption, clearance or other
action by or notice or declaration to, or filing with, any court or
administrative or other governmental body, or the consent, waiver or approval of
any other person or entity, excluding consents that Seller is obligated to
obtain under Section
7.8 below.

     

    5.5           Patriot Act
Compliance.  To
the extent applicable to Buyer, to Buyer’s actual knowledge upon reasonable
inquiry, Buyer has complied in all material respects with the Patriot Act and
the regulations promulgated thereunder, and the rules and regulations
administered by OFAC, to the extent such laws are applicable to
Buyer.  Buyer is not included on the List of Specially Designated
Nationals and Blocked Persons maintained by the OFAC, nor is it a resident in,
or organized or chartered under the laws of, (A) a jurisdiction that has
been designated by the U.S. Secretary of the Treasury under Section 311 or 312
of the Patriot Act as warranting special measures due to money laundering
concerns or (B) any foreign country that has been designated as
non-cooperative with international anti-money laundering principles or
procedures by an intergovernmental group or organization, such as the Financial
Action Task Force on Money Laundering, of which the United States is a member
and with which designation the United States representative to the group or
organization continues to concur.

     

    5.6           Broker’s or Finder’s
Fees.  No
agent, broker, investment banker, or other person or firm acting on behalf of
Buyer or any of its Affiliates or under its authority, is or will be entitled to
any broker’s or finder’s fee or any other commission or similar fee, directly or
indirectly, from Buyer or any of its Affiliates in connection with the
transactions contemplated by this Agreement.  This Section 5.6 shall
survive the Closing or the expiration or any termination of this
Agreement.

     

    ARTICLE
VI

    OTHER
COVENANTS

     

    6.1           Conduct of Business Prior to
the Closing.  Seller
covenants and agrees that from the Effective Date through the Closing, unless
Buyer otherwise consents in writing, Seller and its Affiliates
shall:

     

    (a)           Maintain
the Property in its capacity as the owner, and landlord thereof, in the ordinary
course of business, including (i) incurring expenses consistent with the
past practices, and (ii) maintaining the Licenses listed on Exhibit
C of the Seller Disclosure Letter.

     

    (b)           Own
and maintain, in its capacity as the owner and landlord thereof, the Property
and otherwise conduct business in accordance with the terms or conditions of the
Licenses listed on Exhibit
C of the Seller Disclosure Letter, all Applicable Laws having
jurisdiction over any aspect of the operation of the Property and all applicable
insurance requirements.

     

    (c)           Maintain
the books and records for the Property.

     

    
      
        
           

        

        
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    (d)           Intentionally
Omitted.

     

    (e)           Not
sell, lease, grant any rights in or to or otherwise dispose of, or agree to
sell, lease or otherwise dispose of, the Property in whole or in
part.

     

    (f)           Take
commercially reasonable efforts to maintain the Property currently in use in
reasonably good operating condition and repair, except for ordinary wear and
tear, in a manner consistent with past practices.

     

    (g)           Perform
all covenants, terms, and conditions and make all payments in a timely fashion,
under any loans listed on Schedule 4.23 of the Seller Disclosure
Letter.

     

    (h)           Timely
comply with, not amend, modify or terminate the Lease Agreement or take or fail
to take any action outside the ordinary course of business with respect
thereto.

     

    (i)           Subject
to Section
12.16 below, not make any alterations or improvements to the Property or
make any capital expenditure with respect to the Property in excess of ONE
HUNDRED THOUSAND AND NO/100 U.S. DOLLARS ($100,000.00) other than those that are
required by Applicable Law or that are necessary to preserve the coverage under
or comply with the terms of any insurance policy with respect to the
Property.

     

    (j)           Not
enter into any agreement which calls for annual payments in excess of TEN
THOUSAND AND NO/100 U.S. DOLLARS ($10,000.00) or for a term in excess of one
year, unless such agreement can be terminated upon not more than sixty (60) days
prior written notice without the payment of any termination fee or penalty
payment.

     

    (k)           Provide
the Buyer with a current Rent Roll on the first day of each month.

     

    (l)           Not
do anything, or cause any third party to do anything, that would result in a new
survey matter to arise with respect to the Real Property.

     

    6.2           Notification of Certain
Matters.  Seller
shall give prompt written notice to Buyer, and Buyer shall give prompt written
notice to Seller, of (i) the occurrence, or failure to occur, of any event that
would be likely to cause any of its respective representations or warranties
contained in this Agreement to be untrue or inaccurate in any material respect
at any time from the Effective Date to the Closing, and (ii) any failure to
comply with or satisfy, in any material respect, any covenant, condition, or
agreement to be complied with or satisfied under this Agreement.

     

    6.3           Title; Additional
Documents.  At
the Closing, Seller shall transfer and convey to Buyer good and indefeasible fee
simple title to the Property, free and clear of any Encumbrances except
Permitted Encumbrances.  At the Closing, all warranties and
guaranties, to the extent assignable or transferable, relating to the Property
shall be transferred by Seller to and shall be held and owned by
Buyer.

     

    6.4           Other
Consents.  Seller
shall obtain the consents or waivers to the transactions contemplated by this
Agreement required under the Lease Agreement, if any.

     

    
      
        
           

        

        
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    6.5           Inspection and
Access.  Seller
shall, commencing on the Effective Date of this Agreement, open the assets,
books, accounting records, correspondence and files of Seller (to the extent
related to the operation of the Property) for examination by Buyer, its
officers, attorneys, accountants and agents, with the right to make copies of
such books, records and files or extracts therefrom.  Such access will
be available to Buyer during normal business hours, upon notice, in such manner
as will not unreasonably interfere with the conduct of the business of the
Property.  Seller will make available to Buyer such additional data
and other available information regarding the Property as Buyer may reasonably
request.  Those books, records and files which relate to the Property
that are not transferred to Buyer shall be preserved and maintained by Seller
for two (2) years after the Closing, or such greater amount of time required by
Applicable Law, and those books, records and files relating to the Property the
possession of which is being transferred to Buyer hereunder shall be maintained
and preserved by Buyer for a period of two (2) years after the Closing, or such
greater amount of time required by Applicable Law.

     

    6.6           Confidentiality.

     

    (a)           Confidential
Information.  Any and all nonpublic information, documents, and
instruments delivered to Buyer by Seller or its agents or Affiliates and any and
all nonpublic information, documents, and instruments delivered to Seller by
Buyer or its agents or Affiliates, including, without limitation, this
Agreement, all items listed on Exhibit A-2, the
Documents and all agreements referenced herein, are of a confidential and
proprietary nature.  Buyer and Seller agree that, prior to Closing,
each will maintain the confidentiality of all such confidential information,
documents or instruments delivered to each by the other party or its agents in
connection with the negotiation of, or in compliance with, this Agreement, and
only disclose such information, documents, and instruments to their duly
authorized officers, directors, representatives and agents, or as otherwise
required by Applicable Law.  Buyer and Seller further agree that if
the transactions contemplated hereby are not consummated and this Agreement is
terminated, each will return all such documents and instruments and all copies
thereof in their possession to the other party.  This Section 6.6(a) shall
survive as to both Seller and Buyer in the event this Agreement is terminated
prior to Closing and shall survive as to Seller (and not Buyer) following
Closing.

     

    (b)           Confidentiality of
Agreement.  Seller and Buyer will not disclose the terms or
existence of this Agreement to any third party without the prior written consent
of the other party or its agents, except that Seller and Buyer may disclose such
terms to their respective attorneys, accountants, consultants, engineers, other
advisers, members, shareholders, the Buyer’s potential investors or lenders, and
as required by Applicable Law or by Section 7.6 without
such prior written consent.  This Section 6.6(b) shall
survive as to both Seller and Buyer following Closing or in the event this
Agreement is terminated prior to Closing.

     

    (c)           Permitted Uses of
Information.  Notwithstanding the forgoing, nothing in this
Section 6.6
shall prevent the Buyer from making any disclosure regarding this Agreement to
the Securities and Exchange Commission (the “SEC”) necessary to
comply with any reporting, disclosure, or filing requirements imposed upon the
Buyer by the SEC.

     

    (d)           Irreparable
Harm.  Seller and Buyer recognize that any breach of this Section 6.6 would
result in irreparable harm to the other party; therefore, the Seller or the
Buyer shall be entitled to an injunction to prohibit any such breach or
anticipated breach, without the necessity of proving actual damages or posting a
bond, cash or otherwise, in addition to all of other legal and equitable
remedies.

     

    
      
        
           

        

        
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    6.7           Publicity.  The
parties agree that no public release or announcement concerning the transactions
contemplated hereby shall be issued by any party prior to Closing except as
required by Applicable Law.

     

    6.8           Commercially Reasonable
Efforts.  Subject
to the terms and conditions of this Agreement, each party will use its
commercially reasonable efforts to take all actions and to do all things
necessary, proper or advisable and in its power to satisfy any condition for
which such party is responsible hereunder and to consummate and make effective
as soon as practicable the transactions contemplated by this
Agreement.

     

    6.9           Reports.  Seller
shall file on a current and timely basis until the Closing, all reports and
documents required to be filed with respect to the Licenses.  True and
complete copies of all such reports filed as of the Effective Date and
continuing through the Closing shall be promptly supplied to Buyer by
Seller.

     

    6.10           Post-Closing Obligations of
Seller.  Following
Closing, Seller and its general partner shall use reasonable diligent efforts to
cooperate with Buyer and its Affiliates to (a) confirm that all Licenses are
obtained and held by the proper entity for operation of the Property, and (b) to
the extent not previously transferred to Buyer, to provide any records in
Seller’s custody or control which may be requested of Buyer by any authorized
governmental agency.  Further, upon Buyer’s request, for a period of
one (1) year after Closing, Seller and its general partner shall make the
operating statements, if any, and any and all books, records, correspondence,
financial data, leases, delinquency reports and all other documents and matters
maintained by Seller or its agents and relating to receipts and expenditures
pertaining to the Property for the three (3) most recent full calendar years and
the current calendar year (collectively, the “Records”) available
to Buyer for inspection, copying and audit by Buyer's designated accountants,
and at Buyer's expense.  This Section 6.10 shall
survive the Closing.

     

    6.11           No Other Representations or
Warranties.

     

    (a)           Buyer
agrees that, except for the representations and warranties made by Seller and
expressly set forth in this Agreement, neither the Seller nor any of its
Affiliates or its respective representatives have made (and shall not be
construed as having made) to Buyer or any representatives thereof any
representation or warranty of any kind.

     

    (b)           Seller
agrees that, except for the representations and warranties made by Buyer and
expressly set forth in this Agreement, neither Buyer nor any of its Affiliates
or its representatives have made (and shall not be construed as having made) to
Seller or to any of Seller’s Affiliates or any respective representatives
thereof any representation or warranty of any kind.

     

    6.12           Exclusivity.  From
and after the Effective Date to the Closing or termination of this Agreement
according to the terms hereof, Seller shall not take any action, directly or
indirectly, to encourage, initiate or engage or participate in discussions or
negotiations with, or provide any information to, any party, other than Buyer,
concerning a potential transaction involving the  purchase and sale of
the Property, the purchase and sale of all or substantially all of the ownership
interest of Seller, or any transaction similar to the foregoing.

     

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

    

    6.13           Prohibited Activities Prior
to Closing.  Seller
agrees not, without the prior written consent of Buyer, to sell, lease, or grant
any right in or to or otherwise dispose of or agree to sell, lease or otherwise
dispose of the Property in whole or in part.

     

    6.14           Non-Compete.  From
the Closing through the second anniversary of the Closing, Seller and Seller’s
Affiliates shall not directly or indirectly (unless acting in accordance with
Buyer’s written consent) own, manage, operate, finance or participate in the
ownership, management, operation or financing of, or permit its name to be used
by or in connection with, any competitive business or enterprise located within
a two (2) mile radius of the Real Property.  For purposes of this
Section 6.14,
the term “competitive
business or enterprise” shall mean an inpatient rehabilitation facility
but shall expressly exclude any inpatient facilities owned by Seller or Seller’s
Affiliates and operated by GLOBALREHAB, LP, a Texas limited partnership or its
Affiliates.  This Section 6.14 shall
survive Closing.

     

    ARTICLE
VII

    CONDITIONS
PRECEDENT TO THE

    OBLIGATION
OF BUYER TO CLOSE

     

    Buyer’s
obligation to close pursuant to the terms of this Agreement is subject to the
satisfaction, on or prior to the Closing, of each of the following conditions,
unless waived by Buyer in writing:

     

    7.1           Accuracy of Representations
and Warranties; Closing Certificate.  Except
for any changes permitted by the terms of this Agreement or consented to in
writing by Buyer, each of the representations and warranties made by Seller in
this Agreement or in any certificate delivered pursuant to Section 9.2 that is
qualified as to knowledge or materiality shall otherwise be true and correct in
all respects when made and shall be true and correct in all respects at and as
of the Closing as though such representations and warranties were made or given
on and as of the Closing, and each of such representations and warranties that
is not qualified as to knowledge or materiality shall be true and correct when
made and shall be true and correct in all material respects at and as of the
Closing as though such representations and warranties were made or given on and
as of the Closing.  Subject to Section 4.30, for
purposes of determining whether the representations and warranties made by the
Seller pursuant to this Agreement are true and correct at and as of the Closing,
the Schedules and Exhibits contained in the Seller Disclosure Letter shall be
deemed to include only that information contained therein on the date such
Schedules and Exhibits are acknowledged pursuant to Section 12.13, and
shall be deemed to exclude any information disclosed to Buyer pursuant to Section 6.2 or
otherwise.

     

    7.2           Performance of
Agreement.  Seller
and its Affiliates shall have performed in all material respects all of their
covenants, agreements and obligations required by this Agreement to be performed
or complied with by them prior to or upon the Closing.

     

    
      
        
           

        

        
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    7.3           No Adverse
Change.  No
change or development shall have occurred which has or is likely to materially
affect the Property, its use or cause a decrease in its value by more than SEVEN
HUNDRED FIFTY THOUSAND DOLLARS ($750,000.00).

     

    7.4           Title
Policy.  At
Closing, the Title Company shall be prepared to issue an Owner Policy of Title
Insurance covering the Property in the amount of the Purchase Price of the
Property as agent for First American Title Insurance Company, in accordance with
the Title Commitment, with all endorsements reasonably required by Buyer (to the
extent available in Texas) and with coverage over any “gap”
period.  If the Survey is not obtained by Buyer or is not acceptable
to the Title Company, then the survey exception in the Owner Policy of Title
Insurance to be delivered at Closing shall not be required to be amended to read
“shortages in area.”.

     

    7.5           Delivery of Closing
Documents.  Seller
shall have delivered or caused to be delivered to Buyer on the Closing each of
the Documents required to be delivered pursuant to Section
9.2.

     

    7.6           Licenses.  To
the extent necessary and permitted or required by Applicable Laws, Seller shall
have completed the transfer and assignment of all the Licenses listed on Exhibit
C to the Post-Closing Licensee at or prior to the Closing.  To
the extent that any such Licenses are not transferable or assignable by Seller,
the Post-Closing Licensee shall have obtained, at the Buyer’s sole cost and
expense, in the Post-Closing Licensee’s own name, the Licenses, and Seller shall
reasonably cooperate with the Post-Closing Licensee in obtaining such Licenses
at or prior to Closing.  The Seller shall diligently pursue all
required Licenses.  This Section 7.6 shall survive
Closing.

     

    7.7           Governmental
Approvals.  Seller
shall have obtained all authorizations, consents, orders, or approvals of, shall
have made all declarations or filings with, and shall have allowed the
expiration of waiting periods imposed by, any governmental agencies necessary
for the consummation of the transactions contemplated by this
Agreement.

     

    7.8           Third-Party
Consents.  Seller
shall have obtained such consents to assignment, waivers and similar instruments
as Buyer reasonably determines are necessary to permit the assignment of the
Lease Agreement, in form and substance reasonably satisfactory to
Buyer.

     

    7.9           No New Survey
Matters.  At
Closing, no new survey matters shall have arisen in connection with the Real
Property since the dates of the most recent survey for the Real Property
obtained by Buyer pursuant to Section 3.6 which
would otherwise be required under the applicable ALTA/ACSM standards to be shown
thereon.

     

    ARTICLE
VIII

    CONDITIONS
PRECEDENT TO THE

    OBLIGATION
OF SELLER TO CLOSE

     

    The
obligation of the Seller to close pursuant to the terms of this Agreement is
subject to the satisfaction, on or prior to the Closing, of each of the
following conditions, unless waived by Seller in writing:

     

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

    

    8.1           Accuracy of Representations
and Warranties.  The
representations and warranties of Buyer contained in this Agreement shall be
true and correct in all material respects on the Effective Date and as of the
Closing with the same effect as though made at such time, except for changes
that are not materially adverse to Seller.

     

    8.2           Performance of
Agreements.  Buyer
shall have performed in all material respects all of its covenants, agreements,
and obligations required by this Agreement and each of the other Documents to be
performed or complied with by it prior to or upon the Closing.

     

    8.3           Delivery of Closing
Documents.  Buyer
shall have delivered or caused to be delivered to Seller on the Closing each of
the Documents required to be delivered pursuant to Section
9.3.

     

    ARTICLE
IX

    CLOSING

     

    9.1           Closing Date and
Place.  The
Closing shall
take place on the date which is thirty (30) days following the expiration of the
Due Diligence Period, or at such earlier or later date and time as may be
expressly agreed upon in writing by the Buyer and Seller (the “Closing Date”). The Closing shall be
accomplished by the Buyer and Seller depositing the Closing Documents into
escrow with the Title Company and Buyer and Seller issuing their respective
instructions to the Title Company.

     

    9.2           Deliveries of
Seller.  At
the Closing, Seller shall deliver or cause to be delivered to Buyer the
following, in each case in form and substance reasonably satisfactory to
Buyer:

     

    (a)           A
governmental certificate, dated as of a date as near as practicable to the
Closing, showing that Seller (i) is duly organized and in good standing in the
state of organization of Seller, and (ii) is qualified to do business in the
state in which the Property is located.

     

    (b)           A
certificate of the secretary (or the equivalent thereto if none) of Seller
attesting as to the incumbency of each manager, officer, and authorized
representative of Seller who executes this Agreement and any of the other
Documents, certifying that resolutions and consents necessary for Seller to act
in accordance with the terms of this Agreement have been adopted or obtained
(with copies thereof attached) and to similar customary matters.

     

    (c)           A
special warranty deed, bill of sale and other instruments of transfer and
conveyance transferring the Property to Buyer free of all Encumbrances other
than the Permitted Encumbrances.

     

    (d)           A
certificate of non-foreign status under Section 1445 of the Code, complying with
the requirements of the Income Tax Regulations promulgated pursuant to such
Section.

     

    (e)           A
certificate that the conditions specified in Sections 7.1 and
7.2 are
satisfied as of the Closing.

     

    
      
        
           

        

        
          23

          
            

          

        

        
           

        

      

    

    

    (f)           A
true, correct and complete Rent Roll for the Property five (5) days prior to
Closing, certified by Seller, listing each tenant as of the Closing, the amount
of rent and other monthly or other fees to be paid by such tenant, the amount of
security deposit, the date of the lease agreement, and the expiration date of
such lease agreement.

     

    (g)           Assignments
of the Lease Agreement and Licenses from Seller, duly executed by
Seller.

     

    (h)           All
third-party consents described in Section
7.8.

     

    (i)           Unaudited
and unreviewed historical financial statements and any other documents
identified by Buyer that are required to allow the Buyer to comply with any
reporting, disclosure, or filing requirements imposed upon the Buyer by the SEC
with respect to the transactions contemplated by this
Agreement.  Additionally, Seller shall provide
Buyer, but without expense to Seller, with (a) an audit letter in
substantially the form as Exhibit
H attached to the Seller Disclosure Letter and made a part hereof, and
(b) copies of, or access to, such factual information as may be reasonably
requested by Buyer or its designated accountants, and in the possession or
control of Seller, to enable Buyer to file any filings required by the SEC in
connection with the purchase of the Property.  

     

    (j)           Such
additional information, materials, affidavits and certificates as Buyer shall
reasonably request to evidence the satisfaction of the conditions to Seller’s
obligations hereunder, including without limitation, evidence that all consents
and approvals required as a condition to Buyer’s obligation to close hereunder
have been obtained, title affidavits, such affidavits and documents as the Title
Company may reasonably require to consummate the transaction herein contemplated
and any other documents expressly required by this Agreement to be delivered by
Seller at Closing, or as may be reasonably required by the Title
Company.

     

    (k)           An
estoppel certificate in the form attached hereto as Exhibit
I.

     

    (l)           A
subordination, non-disturbance and attornment agreement in the form attached
hereto as Exhibit
J.

     

    9.3           Deliveries of
Buyer.  At
the Closing, Buyer shall deliver or cause to be delivered to Seller the
following, in each case in form and substance reasonably satisfactory to
Seller:

     

    (a)           The
Purchase Price by wire transfer in accordance with Section 2.3, subject
to the adjustments under Section
9.5.

     

    (b)           A
certificate that the conditions specified in Sections 8.1 and
8.2. are
satisfied as of the Closing.

     

    (c)           An
agreement by Buyer assuming the Assumed Obligations.

     

    (d)           A
governmental certificate, dated as of a date as near as practicable to the
Closing, showing that Buyer is (i) duly organized and in good standing in the
state of its formation, and (ii) is qualified to do business in the state where
the Property is located.

     

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

    

    (e)           A
certificate of the secretary (or the equivalent thereto if none) of Buyer
attesting as to the incumbency of each officer or authorized representative of
Buyer who executes this Agreement and/or any of the other Documents, certifying
that resolutions and consents necessary for Buyer to act in accordance with the
terms of this Agreement have been adopted or obtained (with copies thereof
attached) and to similar customary matters.

     

    (f)           Such
additional information and materials as Seller shall have reasonably requested
to evidence the satisfaction of the conditions to its obligations
hereunder.

     

    9.4.           Closing
Costs.  Buyer and Seller shall each pay (a) their respective
attorneys’ fees and expenses, (b) any broker commissions due to any broker
engaged by such party respectively and (c) any other expenditures incurred by
such parties, respectively.  Seller shall pay the basic premium for
the Owner Policy of Title Insurance to be issued to Buyer at
Closing.  Buyer shall pay the cost of obtaining the Survey and all
endorsements to the Owner Policy of Title Insurance to be issued to Buyer,
including without limitation any amendments to the survey
exception.  All other due diligence and closing costs (collectively,
“Transaction
Costs”) shall be borne by Buyer.  If Closing does not occur for
any reason the provisions of Section 11.1 or 11.2, as applicable,
shall determine each parties’ responsibility for the costs incurred by the
parties with respect to this Agreement.

     

    9.5.           Prorations.

     

    (a)           All
income and expenses (including prepaid expenses) of the Property shall be
prorated on a daily basis between Seller and Buyer as of 11:59 p.m., on the date
(the “Proration
Date”) immediately preceding the Closing.  Such items to be
prorated shall include, without limitation:

     

    
      	
               
      

            	
              (i)

            	
              Any
      amounts due under the Lease Agreement, including, without limitation
      “Basic Rental” (as defined
therein);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Payments
      under Assumed Obligations, if any;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Utility
      charges, if any, based on utility charges for the month immediately
      preceding the Closing; and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Real
      property taxes.

            

    

     

    Buyer and
Seller shall prepare a proposed schedule (the “Proration Schedule”)
prior to Closing that shall include the items listed above and any other
applicable income and expenses with regard to the Property.  Seller
and Buyer will use all reasonable efforts to finalize and agree upon the
Proration Schedule at least two (2) business days prior to Closing.

     

    (b)           Any
escrow accounts held by any utility companies, and any cash deposits made by
Seller or Seller’s Affiliates prior to Closing to secure obligations under
Assumed Obligations shall be either retained by Seller (with Buyer providing its
own escrow) or, if such escrows are assigned to Buyer, Buyer shall pay Seller
the amounts so assigned to Buyer.

     

    
      
        
           

        

        
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    (c)           With
respect to any amounts held by Seller in a tenant escrow or trust account under
the Lease Agreement, at or promptly following Closing, Seller shall return the
same to the depositor thereof (to the extent the amounts held in any such
accounts have not been applied against amounts owing by the depositor thereof in
accordance with the terms of the Lease Agreement).

     

    (d)           Seller
shall receive all income from and shall be responsible for all expenses of the
Property attributable to the period prior to the Proration Date, unless
otherwise provided for in this Agreement.  In the event Buyer receives
any payment from a tenant for rent due for any period prior to the Proration
Date or payment of any other receivable of Seller, Buyer shall forward such
payment to Seller.

     

    (e)           Buyer
shall receive all income from and shall be responsible for all expenses of the
Property attributable to the period from and after the Proration Date, unless
otherwise provided for in this Agreement.  In the event Seller or
Seller’s Affiliates receive any payment from a tenant for rent due for any
period from and after the Proration Date, Seller shall forward such payment to
Buyer.  

     

    (f)           The
parties agree that any amounts that may become due under this Section 9.5 shall be
paid at Closing as can best be determined.  A post-Closing
reconciliation of pro-rated items shall be made by the Buyer and Seller within
ninety (90) days after Closing and any amounts due at that time shall be
promptly forwarded to the respective party in a lump sum payment.  Any
additional amounts which may become due after such determination shall be
forwarded at the time they are received.  Any amounts due under this
Section 9.5
which cannot be determined within ninety (90) days after Closing shall be
reconciled no later than March 31, 2011.  Buyer and Seller agree
that each shall have the right to audit the records of the other for up to one
(1) year following Closing in connection with any such post-Closing
reconciliation.

     

    (g)           Buyer
shall receive a credit towards the Purchase Price for any obligations as
otherwise expressly agreed by the Buyer and Seller.

     

    (h)           This
Section 9.5
shall survive the Closing.

     

    ARTICLE
X

    INDEMNIFICATION

     

    10.1           General.  The
rights to indemnification set forth in this ARTICLE X and the
other rights
described in this Agreement shall be in addition to all other rights to monetary
damages that any party (or the party’s successors or permitted assigns) would
otherwise have by Applicable Law in connection with the transactions
contemplated by this Agreement or any other Document; provided, however, that neither
party shall have the right to be compensated more than once for the same
monetary damage.

     

    10.2           Indemnification by
Seller.  From
and after Closing, Seller shall indemnify, defend, and hold harmless Buyer and
its officers, directors, employees, Affiliates, successors and assigns from and
against, and pay or reimburse each of them for and with respect to, any Loss
relating to, arising out of or resulting from any of the following:

     

    
      
        
           

        

        
          26

          
            

          

        

        
           

        

      

    

    

    (a)           Any
breach by Seller of any of its representations and warranties in this Agreement
or any other Document which were not actually known to Buyer as of the Closing
Date;

     

    (b)           Any
breach by Seller of Seller’s obligations under the closing
documents;

     

    (c)           Claims
relating to the ownership of the Property prior to the Closing, including
without limitation, any and all liabilities which relate to events occurring
prior to the Closing, regardless of when they are asserted or whether such was
disclosed to Buyer and regardless of whether such was a breach of any
representation, warranty, or covenant by Seller, except for Assumed Obligations;
and

     

    (d)           Claims
by any other party claiming to have represented Seller as broker or agent in
connection with the transactions contemplated by this Agreement.

     

    10.3           Indemnification by
Buyer.  From
and after Closing, Buyer shall indemnify, defend and hold harmless Seller and
its officers, directors, employees, agents, representatives, Affiliates,
successors and assigns from and against, and pay or reimburse each of them for
and with respect to any Loss relating to, arising out of or resulting
from:

     

    (a)           The
Assumed Obligations; and

     

    (b)           Any
breach by Buyer of any of its obligations of Buyer under the closing
documents.

     

    10.4           Administration of
Indemnification.  For
purposes of administering the indemnification provisions set forth in Section 10.2 and
Section 10.3,
the following procedure shall apply:

     

    (a)           Whenever
a claim shall arise for indemnification under this ARTICLE X, the party
entitled to indemnification (the “Indemnified Party”)
shall give a reasonably prompt written notice to the party from whom
indemnification is sought (the “Indemnifying Party”)
setting forth in reasonable detail, to the extent then available, the facts
concerning the nature of such claim and the basis upon which the Indemnified
Party believes that it is entitled to indemnification hereunder.

     

    (b)           In
the event of any claim for indemnification resulting from or in connection with
any claim by a third party, the Indemnifying Party shall be entitled, at its
sole expense, either (i) to participate in defending against such claim or (ii)
to assume the entire defense with counsel which is selected by it and which is
reasonably satisfactory to the Indemnified Party, provided that no settlement
shall be made and no judgment consented to without the prior written consent of
the Indemnified Party, which shall not be unreasonably withheld.  If,
however, (x) the claim, action, suit or proceeding would, if successful, result
in the imposition of damages for which the Indemnifying Party would not be
solely responsible, or (y) representation of both parties by the same counsel
would otherwise be inappropriate due to actual or potential differing interests
between them, then the Indemnifying Party shall not be entitled to assume the
entire defense and each party shall be entitled to retain counsel who shall
cooperate with one another in defending against such claim.  In the
case of clause (x), the Indemnifying Party shall be obligated to bear only that
portion of the expense of the Indemnified Party’s counsel that is in proportion
to the damages indemnifiable by the Indemnifying Party compared to the total
amount of the third-party claim against the Indemnified Party.  In the
case of clause (y), the Indemnifying Party shall pay all costs of defense of
both itself and the actual out-of-pocket costs of the Indemnified
Party.

     

    
      
        
           

        

        
          27

          
            

          

        

        
           

        

      

    

    

    (c)           If
the Indemnifying Party does not choose to defend against a claim by a third
party, the Indemnified Party may defend in such manner as it deems appropriate
or settle the claim (after giving notice thereof to the Indemnifying Party) on
such terms as the Indemnified Party may deem appropriate, and the Indemnified
Party shall be entitled to periodic reimbursement from the Indemnifying Party of
defense expenses incurred and prompt indemnification from the Indemnifying Party
in accordance with this ARTICLE
X.

     

    (d)           Failure
or delay by an Indemnified Party to give a reasonably prompt notice of any claim
shall not release, waive or otherwise affect an Indemnifying Party’s obligations
with respect to the claim, except to the extent that the Indemnifying Party can
demonstrate actual Loss or prejudice as a result of such failure or
delay.  Notwithstanding anything to the contrary contained herein, the
parties agree that no indemnification right or obligation shall apply to the
extent any such Loss or expense is paid to an Indemnified Party by an insurance
company.

     

    (e)           The
right to pursue indemnification as set forth in Sections 10.2(a) and
10.3(b) shall
survive the Closing hereunder for a period of twelve (12) months following the
Closing, and the right to pursue indemnification as set forth in all other
Sections of this ARTICLE X shall
survive the Closing hereunder.

     

    (f)           Notwithstanding
anything to the contrary in this Agreement, the right to pursue indemnification
as set forth in this ARTICLE X shall be
actionable or payable only if valid claims for Losses, if any, collectively
aggregate more than Seventy One Thousand and No/100 U.S. Dollars ($71,000) (the
“Floor”); provided, however, that the
foregoing limitation shall not apply in the case of fraud on the part of Buyer,
Seller or any of their respective Affiliates, or to any claims arising under
Section
10.2(b), Section 10.2(d), or
Section 10.3(b)
(none of which shall be limited in any manner whatsoever).  In
addition, Buyer agrees to concurrently seek recovery against Seller, under any
insurance policies, the Title Policy and other applicable agreements, and Seller
shall not be liable to Buyer to the extent Buyer’s claim is actually satisfied
from any sums recovered from such insurance policies, Title Policy or other
applicable agreements.  FINALLY, IN NO EVENT SHALL EITHER
PARTY EVER BE LIABLE FOR ANY CONSEQUENTIAL OR PUNITIVE DAMAGES OTHER THAN IN THE
EVENT OF FRAUD.

     

    ARTICLE
XI

    DEFAULT
AND TERMINATION

     

    11.1           Right of
Termination.  This
Agreement may be terminated prior to Closing as follows:

     

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

    
       

      (a)           By
Buyer, in its sole and absolute discretion, at any time during the Due Diligence
Period for any reason or for no reason
whatsoever.  

    

    

    (b)           By
written agreement of Seller and Buyer.

     

    (c)           By
Buyer if, as of the Closing or such earlier date as specified in this Agreement,
all conditions in ARTICLE VII have not
been met, or as specifically provided for in Sections 11.2(a)(i),
12.16, and
12.17; provided, however, that nothing
contained in this Section 11.1(c) shall
limit Seller’s rights pursuant to 11.2 below.

     

    (d)           By
Seller if, as of Closing or such earlier date as specified in this Agreement,
(i) all conditions in ARTICLE VII have been
met and Buyer defaults on its obligation to close this transaction, or (ii) the
conditions in ARTICLE
VIII have not been met; provided, however, that nothing
contained in this Section 11.1(d) shall
limit Seller’s rights pursuant to Section 11.2
below.

     

    (e)           By
Seller or Buyer if a court of competent jurisdiction or other governmental
agency shall have issued an order, decree, or ruling or taken any other action
(which order, decree, or ruling the parties hereto shall use their diligent
efforts to lift), in each case permanently retraining, enjoining, or otherwise
prohibiting the transactions contemplated by this Agreement, or otherwise
determining that the consummation of such transactions would be unlawful, and
such order, decree or ruling shall have become final and
nonappealable.  

     

    (f)           By
Seller as provided in Section
2.3.  In
the event this Agreement is terminated pursuant to this Section 11.1 or
pursuant to any other express provision of this Agreement for any reason other
than a default by the Seller or Buyer hereunder, then (i) this Agreement shall
be of no further force or effect as of the date of delivery of such written
notice of termination, (ii) the Buyer and Seller shall equally share the
cancellation charges, if any, of the Escrow Agent and Title Company, (iii) no
party shall have any further rights or obligations hereunder other than pursuant
to any provision hereof which expressly survives the termination of this
Agreement and (iv) all Escrowed Funds shall be released to the party entitled to
the same in accordance with Section 2.4
hereof.

     

    11.2           Remedies upon
Default.  

     

    (a)           If
Seller defaults on any of Seller’s obligations hereunder other than as a result
of a prior uncured default by Buyer, and such default continues for ten (10)
days after written notice thereof specifying such default, Buyer may serve
notice in writing to the Seller in the manner provided in this Agreement, and
either:

     

    
      	
               
      

            	
              (i)

            	
              Terminate
      this Agreement, receive from Seller reimbursement of all actual
      third-party out-of-pocket expenses incurred by Buyer in pursuing the
      transactions contemplated by this Agreement in an amount not to exceed
      FIFTY THOUSAND U.S.
      DOLLARS ($50,000.00), and pursue all legal remedies available at
      law against Seller for Buyer’s actual damages which are caused by Seller’s
      default hereunder and which damages are due to any government fines or
      penalties; or

            

    

     

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

    
       

      
        	
                 
      

              	
                (ii)

              	
                Waive
      any such conditions, title objections or defaults and consummate the
      transaction contemplated by this Agreement in the same manner as if there
      had been no title objections, conditions or defaults without any reduction
      in the Purchase Price and without any further claim against the Seller
      therefor and, if necessary, pursue an action for specific
      performance.

              

      

       

    

    (b)           If
Buyer defaults on its obligation to close this transaction other than as a
result of a prior uncured default by Seller, Seller’s exclusive remedy shall be
to terminate this Agreement and receive the Earnest Money Deposit as liquidated
damages and not as a penalty.  Seller and Buyer agree that Seller’s
damages resulting from Buyer’s default are difficult if not impossible to
determine and the Earnest Money Deposit is a fair estimate of those damages
which has been agreed to in an effort to cause the amount of such damages to be
certain.  

     

    11.3           Specific
Performance.  Seller
specifically agrees that Buyer shall be entitled, in the event of a default by
Seller, to enforcement of this Agreement by a decree of specific performance or
injunctive relief requiring Seller to fulfill its obligations under this
Agreement; provided that Buyer institutes any action for specific performance
within forty-five (45) days after the scheduled Closing Date.  If
Buyer pursues an action for specific performance and prevails, Buyer shall not
be entitled to any monetary damages, except as set forth in Section
12.14.

     

    11.4           Obligations Upon
Termination.  Except
as otherwise provided herein, if this Agreement is terminated, each of the
parties shall bear its own costs incurred in connection with the transactions
contemplated by this Agreement.

     

    11.5           Termination
Notice.  Each
notice given by a party to terminate this Agreement shall specify the Section of
this ARTICLE XI
pursuant to which such notice is given.  If at the time a party gives
a termination notice, such party is entitled to give such notice pursuant to
more than one Section of this ARTICLE XI, the
Section pursuant to which such notice is given and termination is effected shall
be deemed to be the Section specified in such notice provided that the party
giving such notice is at such time entitled to terminate this Agreement pursuant
to the specified Section.

     

    11.6           Sole and Exclusive
Remedy.  Seller
and Buyer each acknowledge and agree that prior to the Closing, such party’s
sole and exclusive remedy with respect to any and all claims made prior to the
Closing for any breach or liability under this Agreement or otherwise relating
to the subject matter of this Agreement and the transactions contemplated hereby
shall be solely in accordance with, and limited to, Sections 11.1, 11.2 and 11.3.  The
foregoing shall in no manner limit the rights and obligations of the parties
provided in ARTICLE
X from and after the Closing.  In addition, in no event shall
the provisions of this ARTICLE XI limit the
non-prevailing party’s obligation to pay the prevailing party’s attorneys’ fees
and costs pursuant to Section 12.14
hereof.

     

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

     

    ARTICLE
XII

    MISCELLANEOUS

     

    12.1           Further
Actions.  From
time to time before, at and after the Closing, each party will execute and
deliver such other documents as reasonably requested by the Buyer, Seller or
Escrow Agent to consummate the transactions contemplated hereby.

     

    12.2           Notices.  All
notices, demands or other communications given hereunder shall be in writing and
shall be sufficiently given if delivered by facsimile (with written confirmation
of receipt), by courier (including overnight delivery service), by email (as to
communications that are not required notices or demands hereunder), or sent by
registered or certified mail, first class, postage prepaid, addressed as
follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      If
      to Seller, to:

                                    	
                                      GR
      IRF I, LP

                                    
	 
      	 
      	 	
                                      9301
      N. Central Expressway, Suite 300

                                    
	 
      	 
      	 	
                                      Dallas,
      Texas 75231

                                    
	 
      	 
      	 	
                                      Attention:  Jason
      K. Dodd

                                    
	 
      	 
      	 	
                                      Telephone
      No.:   407.999.7772

                                    
	 
      	 
      	 	
                                      Telecopy
      No.:     407.999.7759

                                    
	 
      	 
      	 	 
      
	 
      	
                                      with copies
      to:

                                    	
                                      Owens,
      Clary & Aiken, L.L.P.

                                    
	 
      	 
      	 	
                                      700
      N. Pearl Street, Suite 1600

                                    
	 
      	 
      	 	
                                      Dallas,
      Texas 75201

                                    
	 
      	 
      	 	
                                      Attention:  Robert
      L. Owens, Esq.

                                    
	 
      	 
      	 	
                                      Telephone
      No.:   214.698.2101

                                    
	 
      	 
      	 	
                                      Telecopy
      No.:     214.698.2121

                                    
	 
      	 
      	 	 
      
	
                                      (a)

                                    	
                                      If
      to Buyer, to:

                                    	
                                      GLOBAL
      REHAB DALLAS, LP

                                    
	 
      	 
      	 	
                                      c/o
      Cornerstone Healthcare Plus REIT, Inc.

                                    
	 
      	 
      	 	
                                      Attn:  Sharon
      C. Kaiser

                                    
	 
      	 
      	 	
                                      Chief
      Financial Officer

                                    
	 
      	 
      	 	
                                      1920
      Main Street, Suite 400

                                    
	 
      	 
      	 	
                                      Irvine,
      CA 92614

                                    
	 
      	 
      	 	
                                      Telephone
      No.:  949.263.4326

                                    
	 
      	 
      	 	
                                      Telecopy
      No.:    949.250.0592

                                    
	 
      	 
      	 	 
      
	 
      	
                                      with copies
      to:

                                    	
                                      Servant
      Healthcare Investments, LLC

                                    
	 
      	 
      	 	
                                      Attn:
      John Mark Ramsey

                                    
	 
      	 
      	 	
                                      1000
      Legion Place, Ste. 1750

                                    
	 
      	 
      	 	
                                      Orlando,
      FL 32801

                                    
	 
      	 
      	 	
                                      Telephone
      No.:   407.999.7772

                                    
	 
      	 
      	 	
                                      Telecopy
      No.:     407.999.7759

                                    
	 
      	 
      	 	 
      
	 
      	
                                      and:

                                    	
                                      Michael
      A. Okaty, Esq.

                                    
	 
      	 
      	 	
                                      Foley
      & Lardner LLP

                                    
	 
      	 
      	 	
                                      111
      N. Orange Avenue, Suite 1800

                                    
	 
      	 
      	 	
                                      Orlando,
      FL 32801

                                    
	 
      	 
      	 	
                                      Telephone:  407-423-7656

                                    
	 
      	 
      	 	
                                      Fax:  407-648-1743

                                    
	 
      	 
      	 	
                                      E-mail:  mokaty@foley.com

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                (b)

                              	
                                If
      to Escrow Agent, to:

                                 

                              
	
                                 

                              	 	 	
                                Republic
      Title of Texas, Inc.

                              
	 
      	 
      	 	
                                2626
      Howell Street, 10th Floor

                              
	 
      	 
      	 	
                                Dallas,
      Texas  75204-4064

                              
	 
      	 
      	 	
                                Attention:
      Jeanne
      Ragland

                              
	 
      	 
      	 	
                                Telephone
      number: 214/855-8897

                              
	 
      	 
      	 	
                                Facsimile
      number: 214/855-8852

                              
	 
      	 
      	 	
                                e-mail:
      jragland@republictitle.com

                              

                      

                    

                  

                

              

            

             

          

        

      

    

    or such
other address as a party may from time to time notify the other parties in
writing (as provided above).  Any such notice, demand or communication
shall be deemed to have been given (i) if so sent by facsimile, upon receipt as
evidenced by the sender’s written confirmation of receipt, (ii) if so mailed, as
of the date delivered, (iii) if emailed, when sent (provided that e-mail does
not constitute delivery of any communication that is a required notice or demand
hereunder), and (iv) if so delivered by courier, on the date
received.

     

    12.3           Entire
Agreement.  This
Agreement and the other Documents constitute the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersede any prior negotiations, agreements, understandings, or arrangements
between the parties hereto with respect to the subject matter
hereof.

     

    12.4           Binding Effect;
Benefits.  Except
as otherwise provided herein, this Agreement shall inure to the benefit of and
be binding upon the parties hereto and their respective successors or permitted
assigns.  Except to the extent specified herein, nothing in this
Agreement, express or implied, shall confer on any person other than the parties
hereto and any Indemnified Party and their respective successors or permitted
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement.

     

    12.5           Assignment.  This
Agreement may not be assigned by any party prior to Closing without the written
consent of the Buyer and Seller, which consent may be given or withheld in each
such party’s sole and absolute discretion, except that Buyer may assign this
Agreement and its rights hereunder without the consent of Seller (i) to an
Affiliate of Buyer, (ii) to a partnership in which Buyer or any Affiliate of
Buyer is a general partner, (iii) a limited liability company in which Buyer or
any Affiliate of Buyer is a manager or managing member or (iv) any other lawful
entity entitled to do business in the state in which the Property is located
provided such entity is controlled by, controlling or under the common control
with Buyer or any Affiliate of Buyer (each, a “Permitted
Buyer-Assignee”).  In the event of such an assignment to a
Permitted Buyer-Assignee, Buyer shall not be released from any of its duties,
covenants, obligations or representations and warranties under this Agreement
and, from and after any such assignment, Buyer and such Permitted Buyer-Assignee
shall be jointly and severally liable under this Agreement, and from and after
any such assignment, the term “Buyer” shall be deemed to mean such Permitted
Buyer-Assignee under any such assignment.

     

    
      
        
           

        

        
          32

          
            

          

        

        
           

        

      

    

     

    
      12.6           Governing
Law.  This
Agreement shall in all respects be governed by and construed in accordance with
the laws of the state in which the Real Property is located without regard to
its principles of conflicts of laws.  Venue for any dispute shall be
in Dallas County, Texas.

       

    

    12.7           Amendments and
Waivers.  No
term or provision of this Agreement may be amended, waived, discharged, or
terminated orally, except by an instrument in writing signed by: (i) Buyer and
Seller with respect to any provision contained herein; and (ii) Buyer, Seller,
and Escrow Agent with respect to Section 2.5
hereof.  Any waiver shall be effective only in accordance with its
express terms and conditions.

     

    12.8           Obligations
Several.  If
there is more than one entity constituting Seller hereunder, such entities shall
be severally liable for performing only the obligations of each such entity
under this Agreement.

     

    12.9           Severability.  Any
provision of this Agreement which is unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such unenforceability
without invalidating the remaining provisions hereof, and any such
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  To the extent
permitted by Applicable Law, the parties hereto hereby waive any provision of
Applicable Law now or hereafter in effect which renders any provision hereof
unenforceable in any respect.

     

    12.10         Headings.  The
captions in this Agreement are for convenience of reference only and shall not
define or limit any of the terms or provisions hereof.

     

    12.11         Counterparts.  This
Agreement may be executed and accepted in one or more counterparts for the
convenience of the parties, each of which will be deemed an original and all of
which, taken together, shall constitute one and the same
instrument.  Delivery of a counterpart hereof via facsimile
transmission or by electronic mail transmission shall be as effective as
delivery of a manually executed counterpart hereof.

     

    12.12         References.  All
references in this Agreement to Articles and Sections are to Articles and
Sections contained in this Agreement unless a different document is expressly
specified.

     

    12.13         Seller Disclosure
Letter.  The
Seller Disclosure Letter delivered by the Seller to Buyer pursuant to this
Agreement, and each Schedule and Exhibit comprising the Seller Disclosure Letter
referred to in this Agreement, shall be deemed to be attached hereto and
incorporated by reference even though it may be maintained separately from this
Agreement or completed after the Effective Date so long as it is acknowledged as
a Schedule or an Exhibit to this Agreement by the parties hereto as of
Closing.  Any item disclosed hereunder (including in the Schedules and
Exhibits hereto) shall be deemed disclosed for all purposes hereof irrespective
of the specific representation or warranty to which it is explicitly
referenced.

     

    12.14         Attorneys’
Fees.  In
the event either party brings an action to enforce or interpret any of the
provisions of this Agreement, the “prevailing party” in such action shall, in
addition to any other recovery, be entitled to its reasonable attorneys’ fees
and expenses arising from such action and any appeal or any bankruptcy action
related thereto, whether or not such matter proceeds to trial.  For
purposes of this Section 12.14, “prevailing party”
shall mean, in the case of a person asserting a claim, such person is successful
in obtaining substantially all of the relief sought, and in the case of a person
defending against or responding to a claim, such person is successful in denying
substantially all of the relief sought.

     

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

    

    12.15         Section 1031 Exchange/Tax
Planning.  If
requested by either Buyer or Seller, the other party shall cooperate in
permitting the other to accomplish an exchange under Section 1031 of the Code or
to restructure this transaction in a way which is more advantageous for tax
purposes; provided, however, that such
exchange or restructuring shall not modify any underlying financial or other
material terms of this Agreement, shall not delay the Closing, shall not relieve
Buyer or Seller of any liability for their respective obligations hereunder, and
shall not result in any other party incurring any greater cost or expense that
it otherwise would if any such exchange had not been elected.

     

    12.16         Casualty.  The
risk of any loss or damage to the Property by fire or other casualty before the
Closing shall continue to be borne by Seller.  Seller shall promptly
give Buyer written notice of any fire or other casualty (in any event within
five (5) days after Seller first has knowledge of the occurrence of same), which
notice shall include a description thereof in reasonable detail and an estimate
of the cost of time to repair.  If (i) any portion of the Property is
damaged by fire or casualty after the Effective Date and is not repaired and
restored substantially to its original condition prior to Closing, or (ii) at
the time of Closing the estimated cost of repairs as to the Property is FIVE
HUNDRED THOUSAND U.S. DOLLARS ($500,000.00) or less, as determined by an
independent adjuster selected by Seller, Buyer shall be required to purchase the
Property in accordance with this Agreement, and Buyer shall, at Buyer’s option,
either: (x) receive a credit at Closing of the estimated cost or repairs to
the Property, as determined by the aforesaid independent adjuster, plus any
reasonably estimated lost revenue following Closing arising from such fire or
casualty; or (y) receive from Seller at Closing (I) an assignment, without
representation or warranty by or recourse against Seller, of all insurance
claims and proceeds with respect thereto, plus (II) an amount equal to Seller’s
insurance deductible, plus (III) a credit for the amount of any reasonably
estimated lost revenue following Closing arising from such fire or
casualty.  If the estimated cost of repairing such damage to the
Property is more than FIVE HUNDRED THOUSAND U.S. DOLLARS ($500,000.00), as
determined by such independent adjuster, or if the damage results in the
termination of any lease for the Real Property, Buyer may, at its sole option:
(x) terminate this Agreement by notice to Seller on or before the earlier
of the Closing or the tenth (10th) day
after receipt of such notice described above, in which event no party shall have
any further liability to the party under this Agreement; or (y) proceed to
Closing as provided in this Section
12.16.  In no event shall the amount of insurance proceeds
assigned to Buyer under this subparagraph (plus the amount of the deductible)
exceed the lesser of (i) the cost of repair or (ii) the Purchase
Price.  The parties’ obligations, if any, under this Section 12.16 shall
survive the expiration or any termination of this Agreement.

     

    12.17         Condemnation.  The
risk of any loss or damage to the Property by condemnation before the Closing
shall continue to be borne by Seller.  In the event any condemnation
proceeding is commenced or threatened, Seller shall promptly give Buyer written
notice thereof (in any event within five (5) days after Seller first has
knowledge of the occurrence of same), together with such reasonable details with
respect thereto as to which Seller may have knowledge.  If, prior to
Closing, there is a material taking by eminent domain at the Property, this
Agreement shall become null and void at Buyer’s option, and upon receipt by
Seller of the written notice of an election by Buyer to treat this Agreement as
null and void, this Agreement shall be deemed null and void. If Buyer elects to
proceed and to consummate the purchase despite said material taking, or if there
is less than a material taking prior to Closing, there shall be no reduction in
or abatement of the Purchase Price and Buyer shall be required to purchase the
Property in accordance with the terms of this Agreement, and Seller shall assign
to Buyer, without representation of warranty by or recourse against Seller, all
of Seller’s right, title and interest in and to any award made or to be made in
the condemnation proceeding (in which event Buyer shall have the right to
participate in the adjustment and settlement of any insurance claim relating to
said damage).  For the purpose of this Section 12.17, the
term “material”
shall mean any taking of in excess of ten percent (10%) of the square footage of
the Property or twenty percent (20%) of the Real Property associated with the
Property or any taking which results in the termination of any lease for the
Real Property.  The parties’ obligations, if any, under this Section 12.17 shall
survive the expiration or any termination of this Agreement.

     

    
      
        
           

        

        
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    12.18         Limited
Liability.  No
past, present, or future member, partner, shareholder, director, officer of
employee of any party to this Agreement shall have any liability or obligation
of any nature whatsoever in connection with or under this Agreement or Document
contemplated hereby or in connection with the transactions contemplated by this
Agreement or any such other agreement.

     

    12.19         Survival of Defined
Terms.  Where
this Agreement provides that a term or provision shall survive the Closing or
the expiration or earlier termination of this Agreement, any defined terms
contained in ARTICLE
I that are used in such surviving term or provision shall also
survive.

     

    12.20         Time of
Essence.  Time
shall be of the essence with respect to all matters contemplated by this
Agreement.

     

    12.21         No Third-Party
Beneficiary.  The
provisions of this Agreement and of the documents to be executed and delivered
at Closing are and will be for the benefit of the Buyer, Seller, Guarantor and
Escrow Agent only and are not for the benefit of any third party; and,
accordingly, no third party shall have the right to enforce the provisions of
this Agreement or of the documents to be executed and delivered at
Closing.

     

    12.22         WAIVER OF JURY
TRIAL.  EACH
PARTY HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT
BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT, OR ANY OTHER
DOCUMENT RELATED TO THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION
ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN
KNOWINGLY AND VOLUNTARILY BY EACH PARTY, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY
JURY WOULD OTHERWISE ACCRUE.  ANY PARTY IS HEREBY AUTHORIZED TO FILE A
COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER
BY EACH PARTY HERETO.

     

     

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    IN WITNESS WHEREOF, each of
the parties hereto has caused this Agreement to be executed as of the Effective
Date.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 	 	 	SELLER:	 
	BUYER:	 	 	 	 
	 	 	 	 	 
	GLOBAL REHAB DALLAS,
      LP, a
      Delaware limited partnership	 	 	GR IRF I, LP, a Texas
      limited partnership	 
	 	 	 	 	 
	
                                              By: 
      Global Rehab Dallas GP, LLC, sole general partner

                                            	 	By: 
      GR IRF Managers, LLC,	 
	 	 	 	
                                              a
      Texas limited liability company

                                            	 
	 	 	 	 	 
	
                                              By: 
      CGI  Healthcare Operating Partnership, LP, sole
      member

                                            	 	
                                              

                                                By:
      /s/ Jason K.
      Dodd

                                                Name:  
      Jason K. Dodd

                                                Title:     Manager

                                              

                                            	 
	
                                               

                                            	 	 	
                                              

                                                 

                                              

                                            	 
	
                                              By: 
      Cornerstone Healthcare Plus  Operating Partnership, LP sole general
      partner

                                            	 	
                                               

                                            	 
	 	 	 	 
	
                                              By: 
      Cornerstone Healthcare Plus REIT, Inc., sole general
    partner

                                            	
                                               

                                            	 	 
	 	 	 	 
	

                                              By:
      /s/ Terry G.
      Roussel

                                              Terry
      G. Roussel

                                              President
      & CEO

                                            	 	 	 
	 	 	 	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ESCROW
AGENT:

    

    The
undersigned Escrow Agent hereby accepts the foregoing Purchase and Sale
Agreement and agrees to act as Escrow Agent thereunder.  Upon receipt
of the Earnest Money Deposit, the undersigned Escrow Agent will acknowledge
receipt of the same.

     

    

    REPUBLIC
TITLE OF TEXAS, INC.

    

    

    By:                                                                    

    Name:                                                                           

    Title:                                                                           

    

    Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]