Document:

Exhibit 10.1

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE
AGREEMENT (this “Agreement”) is made as of the Effective Date (as defined on the Title Company’s Agreement
and Receipt attached hereto), by and between NORVIN AUSTIN REHAB LLC, a Delaware limited liability company (“Seller”),
and GLOBAL MEDICAL REIT INC., a Maryland corporation (“Purchaser”).

 

ARTICLE 1

 

PROPERTY AND PURCHASE PRICE

 

1.1           Property.
Subject to the terms and conditions of this Agreement, Seller agrees to sell to Purchaser, and Purchaser agrees to purchase from
Seller, the following:

 

(a)          A
tract of land containing approximately 3.65 acres of land as more particularly described on Exhibit “A” attached
hereto and incorporated herein by reference for all purposes, together with (i) all rights and interests appurtenant thereto, (ii)
all of Seller’s rights, title and interest in and to all minerals, oil, gas and other hydrocarbon substances thereon or thereunder,
to the extent owned by Seller, and (iii) all of Seller’s rights, title and interest in and to all access, air, water, riparian,
development, utility and solar rights related thereto (collectively, “Real Property”).

 

(b)          All
buildings and other improvements located on the Real Property, including, without limitation, that certain building containing
approximately 59,258 square feet, together with any and all fixtures of any kind owned by Seller and attached to or used in connection
with the ownership, maintenance, or operation of the Real Property or improvements located thereon, together with all rights, title
and interest appurtenant thereto (collectively, the “Improvements”).

 

(c)          All
tangible personal property owned by Seller and located on, used in connection with the management, operation, or repair of the
Real Property or attached to the Real Property, all as more particularly described on Exhibit “B” attached hereto
(“Personal Property”), which personal property excludes all personal property that is owned by the Tenant
(as hereinafter defined) and located on the Real Property.

 

(d)          To
the extent assignable, all of Seller’s rights, title and interest in and to all permits, licenses, certificates of occupancy,
warranties, architectural or engineering plans and specifications, and governmental approvals which relate to the Real Property,
the Improvements or the Personal Property (hereinafter collectively referred to as the “General Intangibles”).

 

(e)          All
of Seller’s right, title and interest in and to that certain Amended and Restated Lease Agreement, dated effective as of
September 17, 2010 (the “Lease”), by and between Seller, as landlord and successor-in-interest to Prevarian
Hospital Partners, LP, a Texas limited partnership (“PHP”), and CTRH, LLC, a Delaware limited liability company,
as tenant (the “Tenant”), together with all rents and other charges paid by Tenant under such Lease and all
security and/or rental deposits related thereto.

 

     

     

    

 

(f)          All
of Seller’s right, title and interest in and to that Corporate Guaranty dated May 24, 2012 (the “Guaranty”)
by Kindred Healthcare, Inc., a Delaware corporation (“Guarantor”).

 

The above listed items
are herein collectively called the “Property”. All of the Property shall be conveyed, assigned, and transferred
to Purchaser at Closing (as hereinafter defined), free and clear of all liens, claims, easements, and encumbrances whatsoever,
except for the Permitted Exceptions (as hereinafter defined).

 

1.2           Purchase
Price. The purchase price (the “Purchase Price”) of the Property shall be Forty Million Six Hundred Fifty
Thousand and No/100 Dollars ($40,650,000.00).

 

1.3           Earnest
Money. Within three (3) business days following the deposit of signature pages to this Agreement executed by Seller and Purchaser
with Commonwealth Land Title Insurance Company, 630 Third Avenue, 12th Floor, New York, New
York 10017, Attention: Art DellaSalla, Vice President, Email: art.dellasalla@fnf.com (the “Title Company”),
Purchaser shall deliver to the Title Company immediately available funds in the amount of Three Hundred Thousand and No/100 Dollars
($300,000.00) (together with any additional Earnest Money delivered pursuant to this Agreement and all interest earned thereon,
collectively the “Earnest Money”), which the Title Company shall immediately deposit into an interest
bearing account, at Purchaser’s option. The Earnest Money will be non-refundable except as otherwise provided for in this
Agreement. Any interest derived from the Earnest Money shall become part of the Earnest Money and shall be paid to the party entitled
to the Earnest Money in accordance with the terms hereof. The Title Company shall credit the full amount of the Earnest Money
against the Purchase Price at Closing or, if this Agreement is terminated prior to Closing, the Title Company shall deliver the
Earnest Money to the party entitled to receive the Earnest Money in accordance with the terms and conditions of this Agreement
and the parties shall execute such escrow instructions, certificates and other written confirmations as the Title Company may
reasonably require in connection therewith.

 

ARTICLE 2

 

DUE DILIGENCE

 

2.1           Property
Information. Within five (5) days after the Effective Date, Seller shall provide Purchaser with copies of all items identified
on Purchaser’s preliminary due diligence checklist attached hereto as Exhibit “J”, to the extent the
same are within Seller’s possession or control and pertain to the Property (collectively, the “Property Information”).
Purchaser and its consultants, on behalf of Purchaser, may request additional information regarding the Property and Seller shall
provide the supplemental items requested to Purchaser or its consultant within five (5) days after written request to the extent
such items are in Seller’s possession or control and pertain to the Property. Seller shall provide the Property Information
to Purchaser solely by uploading such information to the http://app.box.com data room maintained by the Broker (as hereinafter
defined). Upon Seller’s receipt or production of any Property Information after the initial delivery date specified above,
Seller shall promptly furnish such Property Information to Purchaser and shall continue to provide the same during the pendency
of this Agreement. All of the Property Information is provided simply as an accommodation to Purchaser, and Seller makes no representations
as to its accuracy or completeness. Purchaser understands that some of the foregoing documents were provided by others to Seller
and were not prepared by or verified by Seller. In no event shall Seller be obligated to deliver or make available to Purchaser
any of Seller’s internal memoranda, attorney-client privileged materials or appraisals of the Property, if any.

 

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In the event the transaction
contemplated hereby shall fail to close for any reason, Purchaser shall, at its expense, promptly deliver to Seller (a) all existing
originals and copies of the Property Information supplied to Purchaser by Seller or its agents and (b) true and complete copies
of any written information concerning the Property prepared by third parties on behalf of Purchaser in connection with its investigations
hereunder (including any reports, audits and appraisals). Seller shall not hold Purchaser responsible for the accuracy of any information
prepared by third parties which is delivered to Seller in connection with this Section 2.1. The terms of this Section
2.1 shall survive the termination of this Agreement.

 

2.2           Due
Diligence Period. The term “Due Diligence Period” shall mean the period ending at 5:00 p.m., Central time
on the date that is forty (40) days following the Effective Date. On or before the date that is three (3) business days after the
expiration of the Due Diligence Period, Purchaser shall deposit with the Title Company the additional sum of Three Hundred Thousand
and No/100 Dollars ($300,000.00) (it being intended that such additional Earnest Money be treated as “Earnest Money”
for all purposes under this Agreement). Failure by Purchaser to deposit this additional Earnest Money within the aforementioned
time period shall constitute an automatic default under this Agreement.

 

2.3           Right
of Access and Investigation. Subject to the prior rights of the Tenant and the terms and conditions of the Lease, Purchaser
shall have the right, at any time or times during the Due Diligence Period upon reasonable notice (but not less than 48 hours)
to Seller, to investigate and inspect the Property to determine whether the Property is suitable for Purchaser’s intended
use. Among the factors that may be considered by Purchaser are, without limitation, the zoning and other restrictions on the use
of the Property, availability of utilities, access to and from the Property, environmental condition, soil and subsoil conditions,
drainage, market studies, the economic feasibility of any future development of the Property and any or all other matters which
Purchaser may deem relevant in its sole and absolute discretion. Subject to the prior rights of the Tenant and the terms and conditions
of the Lease, Seller hereby grants to Purchaser, its agents and contractors, reasonable access to the Property for the purpose
of conducting surveys, architectural, engineering, geotechnical, and environmental inspections and tests, feasibility studies,
and any other inspections, studies or tests reasonably required by Purchaser in connection with Purchaser’s due diligence,
including a Phase I Environmental Site Assessment. If the Purchaser desires to undertake any invasive testing at the Property,
Purchaser shall submit a work plan outlining the scope of the work to be performed and obtain Seller’s prior written consent
to conduct such invasive testing, such consent not to be unreasonably withheld by Seller. Purchaser shall permit Seller or its
representative to be present to observe any testing or other inspection or due diligence review performed on or at the Property.
If any inspection or test performed by Purchaser or its authorized agents and contractors disturbs the Property, Purchaser will
restore the Property to the same condition as existed immediately prior to any such inspection or test. Notwithstanding anything
to the contrary contained herein, Purchaser shall not contact any governmental authority or the Tenant without first obtaining
the prior written consent of Seller, which consent may be withheld in Seller’s sole discretion, and Seller, at Seller’s
election, shall be entitled to have a representative participate in any telephone or other contact made by Purchaser to a governmental
authority or Tenant and present at any meeting by Purchaser with a governmental authority or Tenant; provided, however, that Seller
hereby consents to Purchaser’s conducting a standard introductory interview with the Tenant upon reasonable notice to Seller,
to be accompanied by a Seller representative if required by Seller.

 

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Purchaser and Purchaser’s
agents, consultants, representatives and contractors shall maintain at all times during their entry upon the Property, comprehensive
general liability insurance with limits of not less than One Million and No/100 Dollars ($1,000,000.00) combined single limit,
bodily injury, death and property damage insurance per occurrence. Each policy of insurance shall name Seller as an additional
insured party, with such coverage being primary whether or not the Seller holds other policies of insurance. If requested by Seller,
Purchaser and Purchaser’s agents, consultants, representatives and contractors shall deliver a certificate issued by the
insurance carrier of each such policy to Seller prior to entry upon the Property.

 

Purchaser agrees to keep
the Property free and clear of any liens filed against the Property and to protect, indemnify, defend and hold Seller and its partners,
agents, officers, contractors and employees harmless from and against any claim for liabilities, losses, costs, expenses (including
reasonable attorneys’ fees), damages, liens or injuries arising out of or resulting from the inspection of, or entry on,
the Property by Purchaser or its agents or consultants. Such obligation to indemnify and hold harmless Seller shall survive any
termination of this Agreement.

 

2.4           Termination.
If Purchaser determines, in its sole judgment and discretion, that the Property is not suitable for Purchaser’s intended
use or is otherwise unacceptable for any reason (or for no reason) in Purchaser’s sole judgment and discretion, Purchaser
or its counsel shall give Seller written notice of termination on or before the end of the Due Diligence Period. If such termination
notice from Purchaser is not timely given, this Agreement shall continue in full force and effect pursuant to the terms hereof
and the Earnest Money shall be deemed nonrefundable to Purchaser except as otherwise specifically provided herein to the contrary.
Notwithstanding anything in this Section 2.4 to the contrary, nothing herein shall be construed to be nor is it intended
to be a waiver by Purchaser of any other rights of Purchaser to terminate this Agreement and receive a full refund of the Earnest
Money pursuant to an express, unexpired right to do so under this Agreement.

 

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2.5           Tenant
Estoppel Certificate; SNDA. Seller shall obtain and deliver to Purchaser (a) a tenant estoppel certificate from the
Tenant in the form of Exhibit “G” attached hereto (subject to reasonable modifications requested by
Purchaser’s lender or any requirement in the Lease that only requires the Tenant to deliver a tenant estoppel
certificate in a form attached to the Lease, in which case Purchaser acknowledges that Seller’s only obligation is to
deliver a tenant estoppel certificate with respect to the Tenant in such form attached to said Lease) dated no earlier than
thirty (30) days prior to the Closing Date (the “Estoppel Certificate”) and (b) a Subordination,
Nondisturbance and Attornment Agreement from the Tenant (“SNDA”) in the form of the Purchaser’s
lender’s form, which is attached hereto as Exhibit “H” (subject to any reasonable modifications
requested by the Tenant) or a particular form required by the Lease, in which case Purchaser acknowledges that Seller’s
only obligation is to deliver a SNDA with respect to the Tenant in the form attached to the Tenant’s Lease. If the
Estoppel Certificate is inconsistent with the representations and warranties made by Seller pursuant to Article 6 below in
any material respect (or in any manner with respect to matters impacting any financial aspect of such Lease), or if it
indicates that Seller is in default or has not performed some obligation under the Lease described therein, Seller shall use
its good faith efforts, on or before the Closing Date, to resolve said inconsistency, to cure said default and/or to perform
said obligation to Purchaser’s reasonable satisfaction. If Seller fails to so obtain and deliver the
Estoppel Certificate and SNDA from the Tenant, or fails to resolve any such inconsistency, to cure any such default or to
perform any such obligation to Purchaser’s reasonable satisfaction, on or before the Closing Date, Purchaser may, by
written notice to Seller on or prior to the Closing Date, elect, as its sole and exclusive remedy therefor, either (i) to
purchase the Property anyway, in accordance with the provisions hereof, without any reduction in or abatement of the Purchase
Price, notwithstanding said failure, and without any continuing obligation upon Seller to obtain, resolve, cure or perform
the same, or (ii) to terminate this Agreement by written notice to Seller, in which event the Earnest Money shall be paid to
Purchaser, and this Agreement shall be deemed to be null, void, terminated and of no further force or effect. If Purchaser
fails to so elect either said option (i) or said option (ii) on or prior to the Closing Date, Purchaser shall be deemed to
have elected said option (i).

 

2.6           Return
of Earnest Money. If Purchaser timely notifies Seller of its decision to terminate this Agreement pursuant to the terms hereof,
all of the Earnest Money, less $1000 as independent contract consideration (the “Independent Contract Consideration”)
to be paid to the Seller, shall be refunded to Purchaser immediately upon request, and all further rights and obligations of the
parties under this Agreement shall terminate except for all indemnity obligations of the parties hereto or other provisions of
this Agreement that expressly survive the termination of this Agreement. Seller acknowledges that Purchaser may, but is not obligated
to, expend time, money, and other resources in connection with the examination and investigation of the Property, and that, notwithstanding
the fact that this Agreement may terminate, the payment of the Independent Contract Consideration, together with such time, money,
and other resources that may be expended, constitute adequate consideration for Seller’s execution of and entry into this
Agreement.

 

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2.7           As-Is
Purchase. Purchaser acknowledges that Purchaser will have independently and personally inspected the Property and that
Purchaser has entered into this Agreement based upon its ability to make such examination and inspection. THE PROPERTY IS
BEING SOLD IN AN “AS IS” CONDITION AND “WITH ALL FAULTS” AS OF THE DATE OF THIS AGREEMENT AND AS OF
THE CLOSING DATE. EXCEPT AS EXPRESSLY SET FORTH HEREIN AND IN THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, NO
REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE OR ARE MADE AND NO RESPONSIBILITY HAS BEEN OR IS ASSUMED BY SELLER OR BY ANY
DIRECTOR, OFFICER, PERSON, FIRM, AGENT OR REPRESENTATIVE ACTING OR PURPORTING TO ACT ON BEHALF OF SELLER AS TO THE CONDITION
OR REPAIR OF THE PROPERTY OR THE VALUE, EXPENSE OF OPERATION, OR INCOME POTENTIAL THEREOF OR AS TO ANY OTHER FACT OR
CONDITION WHICH HAS OR MIGHT AFFECT THE PROPERTY OR THE CONDITION, REPAIR, VALUE, EXPENSE OF OPERATION OR INCOME POTENTIAL
OF THE PROPERTY OR ANY PORTION THEREOF, INCLUDING, WITHOUT LIMITATION, (I) MATTERS OF TITLE (OTHER THAN THE SPECIAL WARRANTY
OF TITLE SET FORTH IN THE DEED), (II) ENVIRONMENTAL MATTERS RELATING TO THE PROPERTY OR ANY PORTION THEREOF, (III) GEOLOGICAL
CONDITIONS, INCLUDING, WITHOUT LIMITATION, SUBSURFACE CONDITIONS, (IV) DRAINAGE, (V) SOIL CONDITIONS, INCLUDING THE EXISTENCE
OF INSTABILITY, PAST SOIL REPAIRS, SOIL ADDITIONS OR CONDITIONS OF SOIL FILL, OR THE SUFFICIENCY OF ANY UNDERSHORING, (VI)
THE AVAILABILITY OF ANY UTILITIES TO THE PROPERTY OR ANY PORTION THEREOF INCLUDING, WITHOUT LIMITATION, WATER, SEWAGE, GAS
AND ELECTRIC, (VII) USAGES OF ADJOINING PROPERTY, (VIII) ACCESS TO THE PROPERTY OR ANY PORTION THEREOF, (IX) THE VALUE,
COMPLIANCE WITH THE PLANS AND SPECIFICATIONS, SIZE, LOCATION, AGE, USE, DESIGN, QUALITY, DESCRIPTION, SUITABILITY, STRUCTURAL
INTEGRITY, OPERATION, TITLE TO, OR PHYSICAL OR FINANCIAL CONDITION OF THE PROPERTY OR ANY PORTION THEREOF, (X) THE EXISTENCE
OR NON- EXISTENCE OF UNDERGROUND STORAGE TANKS, (XI) TAX CONSEQUENCES OR (XII) THE MERCHANTABILITY OF THE PROPERTY OR FITNESS
OF THE PROPERTY FOR ANY PARTICULAR PURPOSE. THE PARTIES AGREE THAT ALL UNDERSTANDINGS AND AGREEMENTS HERETOFORE MADE BETWEEN
THEM OR THEIR RESPECTIVE AGENTS OR REPRESENTATIVES ARE MERGED IN THIS AGREEMENT, OTHER THAN AS EXPRESSLY SET FORTH HEREIN,
THE EXHIBITS ATTACHED HERETO, AND ANY DOCUMENT EXECUTED BY SELLER AND DELIVERED TO PURCHASER AT THE CLOSING, WHICH ALONE
FULLY AND COMPLETELY EXPRESS THEIR AGREEMENT. THE PARTIES FURTHER AGREE THAT THIS AGREEMENT HAS BEEN ENTERED INTO AFTER FULL
INVESTIGATION, OR WITH THE PARTIES SATISFIED WITH THE OPPORTUNITY AFFORDED FOR INVESTIGATION, NEITHER PARTY RELYING UPON ANY
STATEMENT OR REPRESENTATION BY THE OTHER UNLESS SUCH STATEMENT OR REPRESENTATION IS SPECIFICALLY EMBODIED IN THIS AGREEMENT
OR THE EXHIBITS ATTACHED HERETO, AND/OR ANY DOCUMENT EXECUTED BY SELLER AND DELIVERED TO PURCHASER AT THE CLOSING. SELLER
MAKES NO REPRESENTATIONS OR WARRANTIES AS TO WHETHER THE PROPERTY CONTAINS ASBESTOS OR HARMFUL OR TOXIC SUBSTANCES OR
PERTAINING TO THE EXTENT, LOCATION OR NATURE OF SAME. FURTHER, TO THE EXTENT THAT SELLER HAS PROVIDED OR HEREAFTER MAY
PROVIDE TO PURCHASER INFORMATION FROM ANY INSPECTION, ENGINEERING OR ENVIRONMENTAL REPORTS CONCERNING ASBESTOS OR HARMFUL OR
TOXIC SUBSTANCES, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS, METHODOLOGY OF
PREPARATION OR OTHERWISE CONCERNING THE CONTENTS OF SUCH REPORTS. PURCHASER ACKNOWLEDGES THAT SELLER HAS REQUESTED PURCHASER
TO INSPECT FULLY THE PROPERTY AND INVESTIGATE ALL MATTERS RELEVANT THERETO AND, EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, THE EXHIBITS ATTACHED HERETO AND ANY DOCUMENT EXECUTED BY SELLER AND DELIVERED TO PURCHASER AT THE CLOSING, TO
RELY SOLELY UPON THE RESULTS OF PURCHASER’S OWN INSPECTIONS OR OTHER INFORMATION OBTAINED OR OTHERWISE AVAILABLE TO
PURCHASER, RATHER THAN ANY INFORMATION THAT MAY HAVE BEEN PROVIDED BY SELLER TO PURCHASER. THE RISK THAT ADVERSE PHYSICAL AND
ENVIRONMENTAL CONDITIONS MAY NOT HAVE BEEN REVEALED OR DISCOVERED AND MAY NOT BE DISCOVERABLE BY SUCH INVESTIGATIONS SHALL BE
UPON AND WITH PURCHASER. PURCHASER HEREBY WAIVES AND RELEASES SELLER AND ITS PARTNERS, AGENTS, REPRESENTATIVES,
AFFILIATES, OFFICERS AND EMPLOYEES (TOGETHER WITH SELLER, THE “SELLER RELATED PARTIES”) FROM ANY PRESENT OR
FUTURE CLAIMS ARISING FROM OR RELATING TO THE PRESENCE OR ALLEGED PRESENCE OF ASBESTOS OR HARMFUL OR TOXIC SUBSTANCES IN, ON,
UNDER OR ABOUT THE PROPERTY (EXCEPT TO THE EXTENT ANY SUCH CLAIM ARISES FROM AFFIRMATIVE ACTIONS ACTUALLY TAKEN BY SELLER
DURING THE PERIOD THAT IT OWNED THE PROPERTY) INCLUDING, WITHOUT LIMITATION, ANY CLAIMS UNDER OR ON ACCOUNT OF (I) ANY
FEDERAL, STATE OR LOCAL STATUTE, LAW, RULE, REGULATION, ORDINANCE, CODE, GUIDE, WRITTEN POLICY, DIRECTIVE AND RULE OF COMMON
LAW IN EFFECT APPLICABLE TO THE PROPERTY AND IN EACH CASE AS AMENDED, AND ANY JUDICIAL OR ADMINISTRATIVE ORDER, CONSENT
DECREE OR JUDGMENT, RELATING TO (X) THE ENVIRONMENT OR NATURAL RESOURCES, (Y) ANY PETROLEUM OR PETROLEUM PRODUCTS,
RADIOACTIVE MATERIALS, ASBESTOS IN ANY FORM, POLYCHLORINATED BIPHENYLS, AND, TO THE EXTENT ONLY IT EXISTS AT LEVELS
CONSIDERED HAZARDOUS TO HUMAN HEALTH, RADON GAS OR (Z) ANY CHEMICALS, MATERIALS OR SUBSTANCES DEFINED AS OR INCLUDED IN THE
DEFINITION OF “HAZARDOUS SUBSTANCES”, HAZARDOUS WASTE”, “HAZARDOUS MATERIALS”, “EXTREMELY
HAZARDOUS SUBSTANCES”, “TOXIC SUBSTANCES”, “TOXIC POLLUTANTS”, “CONTAMINANTS” OR
“POLLUTANTS” UNDER ANY APPLICABLE ENVIRONMENTAL LAWS INCLUDING, WITHOUT LIMITATION, THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT, 42 U.S.C. § 9601 ET SEQ.; SOLID WASTE DISPOSAL ACT, 42 U.S.C.
§ 6901 ET SEQ.; THE FEDERAL WATER POLLUTION CONTROL ACT, 33 U.S.C. § 1251 ET SEQ.; THE TOXIC SUBSTANCES CONTROL
ACT, 15 U.S.C. § 7401 ET SEQ.; THE CLEAN AIR ACT, 42 U.S.C. § 7401 ET SEQ.; THE SAFE DRINKING WATER ACT, 42 U.S.C.
§ 3803 ET SEQ.; THE OIL POLLUTION ACT OF 1990, 33 U.S.C. § 2701 ET SEQ.; FEDERAL INSECTICIDE, FUNGICIDE,
AND RODENTICIDE ACT, 7 U.S.C. § 136 ET SEQ., AND THE REGULATIONS PROMULGATED PURSUANT THERETO AND ANY STATE AND
LOCAL COUNTERPARTS OR SUBSTANTIAL EQUIVALENTS THEREOF, (II) THIS AGREEMENT OR (III) THE COMMON LAW. FURTHERMORE, PURCHASER
HEREBY RELEASES THE SELLER RELATED PARTIES FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES WHICH
PURCHASER OR ANY PARTY RELATED TO OR AFFILIATED WITH PURCHASER HAS OR MAY HAVE ARISING FROM OR RELATED TO ANY MATTER OR THING
RELATED TO THE PROPERTY OR THE PHYSICAL CONDITION OF THE PROPERTY, ANY CONSTRUCTION DEFECTS AND ANY ERRORS OR OMISSIONS IN
THE DESIGN OR CONSTRUCTION OF THE PROPERTY AND PURCHASER WILL NOT LOOK TO ANY OF THE SELLER RELATED PARTIES IN CONNECTION
WITH THE FOREGOING FOR ANY REDRESS OR RELIEF. THIS RELEASE INCLUDES CLAIMS OF WHICH PURCHASER IS PRESENTLY UNAWARE OR WHICH
PURCHASER DOES NOT PRESENTLY SUSPECT TO EXIST WHICH, IF KNOWN BY PURCHASER, WOULD MATERIALLY AFFECT PURCHASER’S RELEASE
TO SELLER. THIS RELEASE WILL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESS TERMS AND PROVISIONS, INCLUDING
THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION. PURCHASER ACKNOWLEDGES THAT THE PURCHASE
PRICE (AS HEREINAFTER DEFINED) REFLECTS THE “AS-IS” NATURE OF THIS SALE AND ANY FAULTS, LIABILITIES, DEFECTS OR
OTHER ADVERSE MATTERS THAT MAY BE ASSOCIATED WITH THE PROPERTY. PURCHASER HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET
FORTH IN THIS AGREEMENT WITH ITS COUNSEL AND UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. THE TERMS AND PROVISIONS OF
THIS SECTION 2.7 SHALL SURVIVE THE CLOSING OR ANY TERMINATION OF THIS AGREEMENT.

 

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2.8           No
Assumed Liabilities. Except for the Lease, Purchaser shall not assume any contracts, equipment leases or leases, and Seller
shall remain fully liable for all obligations thereon.

 

ARTICLE 3

 

TITLE AND SURVEY

 

3.1           Delivery
of Title Commitment and Survey. Seller, at its sole cost and expense,

shall obtain and deliver to Purchaser within
ten (10) days after the Effective Date, a current, effective commitment for title insurance (the “Title Commitment”)
issued by the Title Company, in the amount of the Purchase Price, naming Purchaser as the proposed insured, and accompanied by
true, complete, and legible copies of all documents referred to in the Title Commitment. Within five (5) days following the Effective
Date, Seller shall provide Purchaser with a copy of the on-the-ground survey of the Property dated December 19, 2012 and prepared
by Baker-Aicklen & Associates, Inc. (Project No. 2201-3-001-20). Purchaser, at its sole cost and expense, shall obtain either
a new survey of the Property or an update to the existing survey provided by Seller (the “New Survey”). If Purchaser
elects to obtain a New Survey it must do so on or before the tenth (10th) business day following
the Effective Date (the “New Survey Deadline”). Should Purchaser fail to obtain the New Survey by the
New Survey Deadline Purchaser shall be deemed to have received the New Survey on such New Survey Deadline.

 

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3.2           Title
Review and Cure. Purchaser shall notify Seller in writing (the “Title Notice”) within ten (10) business
days after the date that Purchaser has received (or is deemed to have received in the case of a New Survey) both the Title Commitment
(including all documents referred to in the Title Commitment) and the New Survey, of its disapproval of any title or survey matter
(the “Title Review Period”). If Purchaser fails to deliver a Title Notice to Seller prior to the expiration
of the Title Review Period, Purchaser shall be deemed to have approved the condition of title (including survey matters) to the
Property as then reflected in the Title Commitment and on the New Survey, excluding all Monetary Liens (hereinafter defined). Seller
shall notify Purchaser in writing within five (5) business days after its receipt of the Title Notice, indicating which objections
to title (and Survey) Seller will cure (the “Cure Notice”). If Seller fails to timely deliver the Cure Notice
to Purchaser, Seller shall be deemed to have elected not to cure any of the objections specified in the Title Notice at or prior
to Closing. Seller shall have no obligation to cure title objections except liens of an ascertainable amount created by, under
or through Seller and any mechanics’ and materialmen’s liens (or, at Seller’s election, bond around in accordance
with applicable State law and Title Company requirements if the same is being validly contested in good faith) filed against the
Property during the pendency of this Agreement, unless the same arise by, through or under Purchaser, its employees, agents or
contractors (“Monetary Liens”). Purchaser shall have until five (5) business days after delivery of the Cure
Notice or the date by which Seller has been deemed to have elected not to cure any of the title objections (other than Monetary
Liens) to provide Seller with written notice indicating that either

(A)         Purchaser
waives the objections that Seller has not agreed to cure (whereby such exceptions shall be deemed Permitted Exceptions); or (B)
Purchaser elects to terminate this Agreement in which event Purchaser shall receive a prompt refund of the Earnest Money and neither
party hereto shall have any further obligations hereunder except for any indemnity provisions or other provisions of this Agreement
that specifically survive the termination of this Agreement. If Seller does not receive such a notice from Purchaser then Purchaser
shall be deemed to have elected option (A) above. Seller agrees to remove any exceptions or encumbrances to title that are created
by, under or through Seller after the date of this Agreement and that are not permitted by the terms of this Agreement. As used
in this Agreement, the term “Permitted Exceptions” shall mean:

 

(a)          those
matters that either are not objected to in writing within the time period provided in this Section 3.2, or if objected to
in writing by Purchaser, are those which Seller has elected not to remove or cure, excluding all Monetary Liens, and subject to
which Purchaser has elected or is deemed to have elected to accept the conveyance of the Property;

 

(b)          the
lien of all ad valorem real estate taxes and assessments not yet due and payable as of the Closing, subject to adjustment as herein
provided;

 

(c)          local,
state and federal laws, ordinances or governmental regulations, including but not limited to, building and zoning laws, ordinances
and regulations, now or hereafter in effect relating to the Property;

 

(d)          the
standard pre-printed exceptions to title customarily excepted by title companies in similar transactions, excluding such title
exceptions as the Title Company agrees to remove upon receipt of Seller’s executed Seller’s Affidavit (as hereinafter
defined); and

 

(e)          the
Tenant’s rights under the Lease.

 

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3.3           Delivery
of Title Policy at Closing. At the Closing, Purchaser shall have the right to obtain a TLTA form (or other form required by
applicable State law) Owner Policy of Title Insurance (“Title Policy”) issued by the Title Company, dated the
date and time of the recording of the Deed (as hereinafter defined) in the amount of the Purchase Price, insuring Purchaser as
owner of good and indefeasible fee simple title to the Property, free and clear of all liens, claims, easements and encumbrances
whatsoever, subject only to the Permitted Exceptions. Seller shall execute, at Closing, an affidavit reasonably satisfactory to
Purchaser and to the Title Company in order for the Title Company to delete its standard printed exception as to parties in possession,
unrecorded liens, and similar matters (the “Seller’s Affidavit”). The Title Policy must contain any endorsements
that the Title Company has agreed to issue before the Closing Date if the requirements for issuance are satisfied. The Title Policy
may be delivered after the Closing if at the Closing the Title Company issues a currently effective, duly executed “marked-up”
Title Commitment and irrevocably commits in writing to issue the Title Policy in the form of the “marked-up” Title
Commitment promptly after the Closing Date.

 

3.4           Title
and Survey Costs. The cost of the existing survey has been previously paid by Seller, and Purchaser shall pay any cost associated
with the New Survey. The basic premium for the Title Policy shall be paid by Seller. Any amended or additional title insurance
coverage related to the Title Policy, including, without limitation, any premium for extended coverage (such as the cost for the
survey deletion) and the cost for any endorsements to the Title Policy requested by Purchaser or its lender, shall be paid by Purchaser.

 

ARTICLE 4

 

CONDITIONS TO CLOSING

 

Purchaser shall not be obligated to close this
transaction until all of the following

requirements and conditions have been performed,
which constitute material conditions to Purchaser’s performance hereunder, the failure of any of which shall entitle Purchaser
to exercise the rights set forth in Section 4.3:

 

4.1           No
Breach. All of the representations and warranties contained in Section 6.1 hereof shall be true and correct in all material
respects on the Closing Date, and Seller shall have performed and complied with each of its covenants pursuant to this Agreement
or any Seller Documents (as hereinafter defined) in all material respects through the Closing.

 

4.2           Title
Insurance. The Title Policy shall be as required by Section 3.3 above.

 

4.3           Failure
to Satisfy Conditions. If any of the conditions in this Article 4 are not satisfied by the date stated therein, then
Purchaser may, as its sole and exclusive remedy, (i) terminate this Agreement by written notice to Seller and receive a refund
of all of the Earnest Money from the Title Company in the manner provided in Section 2.6, in which event all further rights
and obligations of the parties under this Agreement shall terminate; or (ii) waive such condition (and failure to give notice pursuant
to clause (i) above shall constitute such waiver).

 

    	 	9	 

     

    

 

ARTICLE 5

 

CLOSING

 

5.1           Closing.         The
consummation of the transaction contemplated herein (the “Closing”) shall occur via escrow with the Title Company
acting as closing and escrow agent, with personal attendance not being required, and shall take place on such date which is fifteen
(15) days after expiration of the Due Diligence Period (the “Closing Date”). In connection with Seller structuring
the disposition of the Property as a like-kind exchange pursuant to Section 10.18(a) hereof, Seller shall have a
one-time right to extend the Closing Date for up to forty-five

(45) days by providing written notice to Purchaser
and the Title Company at least ten (10) days before the original Closing Date is scheduled to occur.

 

5.2           Seller’s
Deliveries in Escrow. At the Closing, Seller shall deliver to the Title Company the following documents (collectively, the
“Seller Documents”):

 

(a)          Deed.
A Special Warranty Deed in the form attached hereto as Exhibit “C” and incorporated herein by reference
for all purposes (the “Deed”), executed and acknowledged by Seller, conveying to Purchaser good and indefeasible
fee simple title to the Property, subject only to the Permitted Exceptions.

 

(b)          Bill
of Sale. A bill of sale, fully executed and acknowledged by Seller, in the form attached hereto as Exhibit “D”
and incorporated herein by reference for all purposes, conveying to Purchaser the Personal Property free and clear of all liens,
claims and encumbrances.

 

(c)          General
Assignment and Assumption Agreement. A general assignment and assumption agreement in the form attached hereto as Exhibit
“E” and incorporated herein by reference for all purposes (the “General Assignment”), conveying
to Purchaser, to the extent assignable, the General Intangibles, free and clear of all liens, claims and encumbrances.

 

(d)          Assignment
and Assumption of Lease. An assignment and assumption of lease in the form attached hereto as Exhibit “F” and
incorporated herein by reference for all purposes (the “Lease Assignment”), transferring all of Seller’s
right, title and interest in and to the Lease to Purchaser.

 

(e)          Authority.
Evidence of existence, organization, and authority of Seller and the authority of the person executing documents on behalf of Seller,
reasonably satisfactory to the Title Company.

 

(f)          FIRPTA.
A Foreign Investment in Real Property Tax Act affidavit executed by Seller. If Seller fails to provide the necessary affidavit
and/or documentation of exemption on the Closing Date, Purchaser may proceed with withholding provisions as provided by law.

 

(g)          Seller’s
Affidavit. The Seller’s Affidavit or similar certification as may be required by the Title Company to issue the Title
Policy.

 

(h)          Tenant
Notice Letter. A form letter executed by Seller to advise the Tenant under the Lease in the form of Exhibit “I”
hereto (the “Notice”) of the sale to Purchaser.

 

(i)          Bring-Down
Certificate. A duly executed bring-down certificate reaffirming that the representations and warranties of Seller are true
and correct in all material respects as of the Closing Date.

 

    	 	10	 

     

    

 

(j)          State
Law Disclosures. Such disclosures and reports required by applicable local law in connection with the conveyance of real property.

 

(k)          Additional
Documents. Any additional documents that Purchaser or the Title Company may reasonably require for the proper consummation
of the transaction contemplated by this Agreement.

 

5.3           Purchaser’s
Deliveries in Escrow. At the Closing, Purchaser shall deliver to the Title Company the following:

 

(a)          Purchase
Price. The Purchase Price, plus or minus applicable prorations and less a credit for the full amount of the Earnest Money,
deposited by Purchaser with the Title Company in immediate, same day federal funds (all or any part of which may be the proceeds
of a loan) wired for credit into such account as the Title Company may designate.

 

(b)          General
Assignment.         An executed counterpart of the General Assignment.

 

(c)          Lease
Assignment. An executed counterpart of the Lease Assignment.

 

(d)          Notice.
An executed counterpart of the Notice.

 

(e)          Authority.
Evidence of existence, organization, and authority of Purchaser and the authority of the person executing documents on behalf of
Purchaser, reasonably satisfactory to the Title Company.

 

(f)          State
Law Disclosures. Such disclosures and reports required by applicable State and local law in connection with the conveyance
of real property.

 

(g)          Additional
Documents. Any additional documents that Seller or the Title Company may reasonably require for the proper consummation of
the transaction contemplated by this Agreement.

 

5.4           Closing
Statements/Escrow Fees. At the Closing, Seller and Purchaser shall execute closing statements consistent with this Agreement
in form required by the Title Company. Seller and Purchaser agree to pay closing costs as indicated in this Agreement. The Title
Company’s escrow fee shall be paid one-half by Purchaser and one-half by Seller. Purchaser shall be responsible for any and
all costs and expenses associated with (a) third party reports commissioned by Purchaser in connection with this Agreement, including,
without limitation, pursuant to Section 2.3 hereof, and (b) any transfer, documentary or other taxes imposed by virtue of
the sale of the Property. Except as otherwise provided for in this Agreement, Seller and Purchaser will each be solely responsible
for and bear all of their own respective expenses, including, without limitation, expenses of legal counsel, accountants, and other
advisors incurred at any time in connection with pursuing or consummating the transaction contemplated herein. Any other closing
costs not specifically designated as the responsibility of either Purchaser or Seller in this Agreement shall be paid by Seller
and Purchaser according to the usual and customary allocation of the same by the Title Company.

 

    	 	11	 

     

    

 

5.5           Possession.
At Closing, Seller shall deliver possession of the Property to Purchaser in the condition existing as of the date of this Agreement,
subject only to the Permitted Exceptions.

 

5.6           Closing
Adjustments and Prorations. Except as otherwise provided in this Section 5.6, all adjustments and prorations
to the Purchase Price payable at Closing shall be computed as of the end of the day preceding the Closing Date. Seller shall be
entitled to receive all revenues and shall be charged with all expenses relating to the ownership and operation of the Property
through the day preceding the Closing Date. Prior to the Closing, Seller shall determine the amounts of the prorations in accordance
with this Section 5.6 and shall notify Purchaser thereof. Purchaser shall review and approve such determination promptly
and prior to the Closing, such approval not to be unreasonably withheld or delayed. Thereafter and on or prior to the Closing,
Seller and Purchaser shall inform the Title Company of such amounts and, in accordance therewith, the Title Company shall prorate
such items between the parties (and the parties shall deposit funds therefor with the Title Company or shall instruct the Title
Company to debit against sums held by the Title Company owing to such party) in accordance with this Section 5.6. ch
adjustments and prorations shall include the following:

 

(a)          Rents.
Rentals which are payable pursuant to the Lease shall be prorated on a per diem basis as and when collected. Unpaid and delinquent
rent collected by Seller and Purchaser after the Closing Date shall be delivered as follows: (i) if Seller collects any unpaid
or delinquent rent for the Property, Seller shall, within fifteen (15) days after the receipt thereof, deliver to Purchaser any
such rent which Purchaser is entitled to hereunder relating to the Closing Date and any period thereafter, and (ii) if Purchaser
collects any unpaid or delinquent rent from the Property, Purchaser shall, within fifteen (15) days after the receipt thereof,
deliver to Seller any such rent which Seller is entitled to hereunder relating to the period prior to the Closing Date. Seller
and Purchaser agree that all rent received by Seller or Purchaser after the Closing Date shall be applied first to current rent
and then to delinquent rent, if any, in the inverse order of maturity. Purchaser will make a good faith effort after Closing to
collect all rents in the usual course of Purchaser’s operation of the Property, but Purchaser will not be obligated to institute
any lawsuit or other collection procedures to collect delinquent rents. Seller may attempt to collect any delinquent rents owed
Seller and may institute any lawsuit or collection procedures, but may not evict any Tenant or terminate such Tenant’s Lease
or such Tenant’s right to possession thereunder; provided, however, that any such lawsuits or collection procedures may not
be commenced until ninety (90) days after the Closing Date.

 

ARTICLE 6

 

REPRESENTATIONS AND WARRANTIES

 

6.1           Seller’s
Representations and Warranties. As a material inducement to Purchaser to execute this Agreement and consummate this transaction,
Seller represents and warrants to Purchaser that:

 

    	 	12	 

     

    

 

(a)          Organization
and Authority. Seller has been duly organized and is validly existing as a Delaware limited liability company. Seller has the
full right and authority and has obtained any and all consents required therefor to enter into this Agreement. The persons signing
this Agreement on behalf of Seller are authorized to do so. This Agreement has been, and the documents to be executed by Seller
pursuant to this Agreement, including, without limitation, the Seller Documents, will be, authorized and properly executed and
does and will constitute the valid and binding obligations of Seller, enforceable against Seller in accordance with their terms.
The execution, delivery and performance of this Agreement and the Seller Documents by Seller do not and will not conflict with
or result in any breach of the provisions of, or constitute a default under the articles of incorporation, bylaws, articles of
organization, operating agreement or other governing organizational documents, as the case may be, of Seller.

 

(b)          Conflicts.
There is no agreement to which Seller is a party or, to Seller’s knowledge, binding on Seller, which is in conflict with
this Agreement or which would be breached by, or would materially impair, Seller’s performance of this Agreement.

 

(c)          Pending
Actions. To Seller’s knowledge, there is no action, lawsuit or other proceeding pending or threatened against Seller,
or the Property or which challenges or impairs Seller’s ability to execute, deliver or perform this Agreement or Purchaser’s
ability to use the Property for its intended use.

 

(d)          Hazardous
Materials. Except as set forth in the Property Information, Seller has no knowledge of (i) the presence of any Hazardous Materials
(as hereinafter defined) in, on or under the Real Property or (ii) any noncompliance or violation of Environmental Laws (as hereinafter
defined) related to the Real Property or (iii) any environmental lien, charge, assessment, or threatened inclusion of the Real
Property into any Super Fund designated cleanup area, or inclusion of the Real Property into any designated environmental area
by any governmental body, entity, or agency. The term “Environmental Laws” shall include, without limitation,
those laws commonly known as the Clean Air Act, the Clean Water Act, and the Water Quality Act of 1987; the Federal Insecticide,
Fungicide, and Rodenticide Act (“FIFRA”); the Marine Protection, Research, and Sanctuaries Act; the National
Environmental Policy Act; the Noise Control Act; the Occupational Safety and Health Act; the Resource Conservation and Recovery
Act (“RCRA”), as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act; the
Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), as amended by the Superfund
Amendments and Reauthorization Act, and the Emergency Planning and Community Right-to-Know Act; the Toxic Substance Control Act
(“TSCA”); and the Atomic Energy Act; as each of the same may be amended, with implementing regulations and guidelines.
Environmental Laws shall also include all state, regional, county, municipal and other local laws, regulations and ordinances that
are equivalent or similar to the federal laws recited above or purport to regulate Hazardous Materials. The term “Hazardous
Materials” shall include, without limitation, any hazardous substance, pollutant, or contaminant regulated under CERCLA;
oil and petroleum products and natural gas, natural gas liquids, liquefied natural gas, and synthetic gas usable for fuel; pesticides
regulated under FIFRA; asbestos, polychlorinated biphenyls, and other substances regulated under TSCA; source material, special
nuclear material, and by-product materials regulated under the Atomic Energy Act; and industrial process and pollution control
wastes to the extent regulated under applicable Environmental Laws.

 

(e)          Condemnation.
To Seller’s knowledge, no condemnation proceedings are pending or threatened with regard to the Property.

 

    	 	13	 

     

    

 

(f)          Lease.
Except for the Lease, there are no parties in possession of any part of the Property and there are no leases, licenses, subleases,
rental, use or occupancy agreements affecting any part of the Property (excluding leases, licenses or other agreements relating
to medical or other equipment used by the Tenant). Furthermore, (i) the Tenant under the Lease has not asserted in writing to Seller
any claims, defenses or offsets to rent accruing from and after the Closing that remain unresolved, (ii) to Seller’s knowledge,
no material default, delinquency or breach exists on the part of the Tenant under the Lease beyond any applicable cure period,
(iii) all rents due under the Lease as of the Effective Date have been paid, (iv) no rentals or other amounts due under the Lease
have been paid more than one (1) month in advance and (v) all security and other deposits of any type required under the Lease
has been paid in full and are being held by Seller. Seller has no knowledge of any pending or threatened litigation by the Tenant
under the Lease against the Seller with regard to the Lease. There are no leasing commissions due and payable with regard to the
Lease. There are no material defaults or breaches on the part of the landlord under the Lease.

 

(g)          Violations.
As of the Effective Date Seller has not received from any governmental authority verbal or written notice of any material violation
of any laws, rules, regulations, codes, statutes or ordinances applicable (or alleged to be applicable) to the Real Property, or
any part thereof, that has not been corrected, except as may be reflected by the Property Information or otherwise disclosed in
writing to Purchaser.

 

(h)          Licenses.
Seller has not received written notice that the Tenant’s operation of business at the Property is in violation of any restriction
or other rules, regulations, statutes, ordinances or requirements or any judgments, decrees, writs, injunctions or orders of any
Governmental Authority (as defined below) in effect as of the date hereof, or as enacted or amended from time to time after the
Effective Date (collectively, “Applicable Laws”) in connection with any permits, licenses, Government Program
(as defined below) provider agreements, and other authorizations required by Governmental Authorities in connection with the ownership,
maintenance, and operation of the Property (collectively, the “Licenses”). The term “Governmental Authority”
and collectively, “Governmental Authorities” as used herein shall include any federal, state, municipal, foreign or
other governmental or regulatory authority. The term “Government Program” as used herein shall include all third party
payors, including Medicare, Medicaid, CHAMPUS, TRICARE and other federal, state or local governmental reimbursement programs, or
successor programs to any of the foregoing.

 

(i)          No
Defaults. To Seller’s knowledge, the execution, delivery and performance of this Agreement and any of the Seller Documents
by Seller do not and will not violate any restriction to which Seller is subject or, with or without the giving of notice, the
passage of time, or both, violate (or give rise to any right of termination, cancellation or acceleration under) any mortgage,
deed of trust, license, lease, indenture or other material agreement or instrument, whether oral or written, to which Seller is
a party, or by which it or any of the Property are bound, which will not be fully satisfied, assigned or terminated on or prior
to Closing as a result of the transactions contemplated in this Agreement, or result in the termination of any such instrument
or termination of any provisions in such instruments, or result in the creation or imposition of any lien, charge or encumbrance
upon any of the Property.

 

    	 	14	 

     

    

 

(j)          Title
to Property and Related Matters.

 

i          To Seller’s
knowledge, except as may be set forth in the Property Information, the Title Commitment or New Survey, there are no violations
of any covenants or restrictions encumbering the Property. Seller has no knowledge of any agreements, documents or instruments
that are not recorded among the land records but that affect the title to the Property and are intended to run with the land.

 

ii          To Seller’s
knowledge, there are no pending rezoning or other pending land use actions affecting the Property or any properties in the immediate
vicinity of the Property. Seller has not received written notice of and has no knowledge of any threatened or contemplated rezoning
or other land use actions affecting or which will affect the Property, including, without limitation, on properties in the immediate
vicinity of the Property.

 

iii          At the Closing,
Seller shall not be indebted to any contractor, laborer, mechanic, materialman, architect or engineer for work, labor or services
performed or rendered, or for materials supplied or furnished, in connection with the Property for which any such person could
lawfully claim a lien against the Property.

 

(k)          Contracts.         Seller
does not have any outstanding contracts for capital expenditures or other improvements or repairs relating to the Improvements
or the Property.

 

(l)          Unaffiliated.
Seller is not controlling, controlled by, or under common control with Tenant or Guarantor.

 

(m)          Purchase
Rights. Except as set forth in the Lease, to Seller’s knowledge, no party has a purchase option, right of first refusal
or other right to purchase the Property.

 

When used herein, the phrase
“to Seller’s knowledge” or derivations thereof shall mean the current actual knowledge of Norman Livingston,
acting in his capacities as President, Secretary and Treasurer of Seller (the “Seller Representative”). Purchaser
acknowledges that the Seller Representative is named solely for the purpose of defining and limiting the scope of Seller’s
knowledge, and no Seller Representative shall have any personal liability under this Agreement.

 

Notwithstanding the foregoing
provisions of this Section 6.1, in the event that (a) any of Seller’s representations is made “to the knowledge
of Seller” and (b) subsequent to the Effective Date information (collectively, the “New Information”)
is discovered and presented to Seller, which New Information, if in the possession of Seller on the date hereof, would have rendered
such Seller’s representation false in a material respect (i.e., if Seller had actual knowledge of the New Information
on the Effective Date then such Seller’s representation, as made by Seller, would have been false in a material respect)
then, provided that Seller discloses such New Information to Purchaser prior to the Closing Date: (i) such Seller’s representation
shall be deemed to have been remade as of the date such disclosure is made to take such New Information into account, and (ii)
such remaking of such Seller’s representation shall not be deemed a breach of such Seller’s representation by Seller;
provided, however, that such remaking of such Seller’s representation shall give the Purchaser the right to terminate this
Agreement, so long as written notice of the same is delivered within three (3) days after Purchaser’s receipt of the New
Information and, in such event, Purchaser shall be entitled to a refund of the Earnest Money as its sole and exclusive remedy.

 

    	 	15	 

     

    

 

The representations and
warranties set forth in Section 6.1 are made as of the Effective Date and, except where expressly limited to the Effective
Date, are remade as of the Closing Date and shall not be deemed to be merged into or waived by the instruments of Closing, but
shall survive the Closing for a period of one (1) year (the “Survival Period”). Purchaser shall have the right
to bring an action against Seller on the breach of a representation or warranty hereunder, but only on the following conditions:
(i) Purchaser first learns of the breach after Closing and delivers written notice containing a description of the specific nature
of such breach to the breaching party within the Survival Period and commences such action for breach within two (2) years of Closing,
and (ii) Purchaser shall not have the right to bring a cause of action for a breach of a representation or warranty unless the
damage to Purchaser on account of such breach (individually or when combined with damages from other breaches) equals or exceeds

$50,000.00. Seller shall not have any liability
after Closing for the breach of a representation or warranty hereunder of which the Purchaser had knowledge as of Closing. The
provisions of this Section 6.1 shall survive the Closing. Seller’s aggregate liability to Purchaser for breaches of
the representations and warranties set forth in this Section 6.1 shall not exceed the amount of One Million Dollars ($1,000,000.00)
(the “Cap”), it being agreed that in no event shall Seller’s aggregate liability for such breaches exceed
the amount of the Cap.

 

6.2           Purchaser’s
Representations and Warranties. As a material inducement to Seller to execute this Agreement and consummate this transaction,
Purchaser represents and warrants to Seller that:

 

(a)          Organization
and Authority. Purchaser has been duly organized and is validly existing as a Maryland corporation and has full power and authority
to own property and to carry on its business as it is now being conducted. The persons signing this Agreement on behalf of Purchaser
are authorized to do so. This Agreement has been authorized and properly executed and does and will constitute the valid and binding
obligations of Purchaser, enforceable against Purchaser in accordance with their terms.

 

(b)          Conflicts.
There is no agreement to which Purchaser is a party or, to Purchaser’s actual knowledge, binding on Purchaser which is in
conflict with this Agreement or which would be breached by, or would materially impair, Purchaser’s performance of this Agreement.

 

(c)          Pending
Actions. There is no action or proceeding pending or, to Purchaser’s knowledge, threatened against Purchaser or the Property
or which challenges or impairs Purchaser’s ability to execute, deliver or perform this Agreement.

 

(d)          Commissions.
Purchaser has not dealt with any real estate brokers, salespersons or finders in connection with this transaction that would give
rise to any liability or obligation to any party hereunder except as set forth in Section 10.2.

 

    	 	16	 

     

    

 

The representations and
warranties set forth in Section 6.2 are made as of the Effective Date and, except where expressly limited to the Effective
Date, are remade as of the Closing Date and shall not be deemed to be merged into or waived by the instruments of Closing, but
shall survive the Closing until the expiration of the Survival Period. Seller shall have the right to bring an action against Purchaser
on the breach of a representation or warranty hereunder, but only on the following conditions: (i) Seller first learns of the breach
after Closing and delivers written notice containing a description of the specific nature of such breach to the breaching party
within the Survival Period and commences such action for breach within two (2) years of Closing, and (ii) Seller shall not have
the right to bring a cause of action for a breach of a representation or warranty unless the damage to Seller on account of such
breach (individually or when combined with damages from other breaches) equals or exceeds $50,000.00. Purchaser shall not have
any liability after Closing for the breach of a representation or warranty hereunder of which the Seller had knowledge as of Closing.
The provisions of this Section 6.2 shall survive the Closing.

 

ARTICLE 7

 

CONDEMNATION

 

7.1           Condemnation.
In the event of any threatened, contemplated, commenced or consummated proceedings in eminent domain prior to the Closing (notice
of which shall be given to Purchaser by Seller immediately) respecting any material portion of the Property, Purchaser may, at
its option, by notice to Seller given within ten (10) days after Purchaser is notified of such actual or possible proceedings (but
before the Closing): (i) unilaterally terminate this Agreement and all of the Earnest Money shall be immediately returned to Purchaser
and all further rights and obligations of the parties under this Agreement shall terminate except as otherwise provided herein;
or (ii) proceed under this Agreement, in which event Seller shall, at the Closing, assign or cause the owner of the Property to
assign to Purchaser its entire right, title and interest in and to any condemnation award, and Purchaser shall have the right during
the pendency of this Agreement to assist in the negotiations and otherwise deal with the condemning authority in respect of such
matter.

 

7.2           Casualty
Loss. If, prior to the Closing Date, all or part of the Property is damaged by fire or by any other cause whatsoever, Seller
shall promptly give Purchaser written notice of such damage, and the Closing Date shall be extended, if necessary, to provide sufficient
time for Seller to determine the cost of repairing said damage. If the cost of repairing such damage is not in excess of Five Hundred
Thousand and No/100 Dollars ($500,000.00) (as determined by Seller’s independent insurer), then (a) Purchaser shall receive
at the Closing, to the extent such sums have not been expended on repair work, the amount of the deductible plus an assignment
of all insurance proceeds payable as a result of such loss, (b) this Agreement shall continue in full force and effect with no
reduction in the Purchase Price, and (c) Seller shall have no obligation to repair such damage. If the cost of repairing damage
from such casualty is greater than Five Hundred Thousand and No/100 Dollars ($500,000.00) (as determined by Seller’s independent
insurer), then Purchaser shall have the right, for a period of ten (10) days from the date of notice of the amount of damage caused
by the casualty to terminate this Agreement by giving written notice of termination to Seller within such period, and, if necessary,
the Closing Date will be extended to allow Purchaser such ten (10) day period. Upon such termination, the Earnest Money (less the
Independent Contract Consideration) shall be returned to Purchaser and the parties hereto shall be released of any further liability
hereunder except as otherwise provided herein. If Purchaser fails to notify Seller within such period of Purchaser’s exercise
of its right to terminate this Agreement, then Purchaser shall proceed to Closing and, to the extent such sums have not been expended
on repair work, all insurance proceeds received by Seller as a result of such casualty loss plus the amount of the deductible shall
be paid to Purchaser at the Closing. If such proceeds have not yet been received by Seller, then Seller’s rights to such
proceeds shall be assigned to Purchaser at the Closing upon payment of the full Purchase Price to Seller by Purchaser less the
amount of Seller’s deductible and Seller shall have no obligation to repair such damage.

 

    	 	17	 

     

    

 

ARTICLE 8

 

REMEDIES

 

8.1           Earnest
Money as Liquidated Damages. If all of the conditions to Purchaser’s obligation to purchase the Property have been satisfied
or waived or deemed waived by Purchaser and if Purchaser should fail to consummate this transaction for any reason other than Seller’s
default, or the exercise by Purchaser of an express right of termination granted herein, or if Purchaser otherwise defaults in
any of its obligations hereunder prior to the Closing, Seller’s sole and exclusive remedy in such event shall be to terminate
this Agreement and to retain the Earnest Money as liquidated damages, Seller waiving all other rights or remedies in the event
of such default by Purchaser. The parties acknowledge that Seller’s actual damages in the event of a default by Purchaser
under this Agreement will be difficult to ascertain, and that such liquidated damages represent the parties’ best estimate
of such damages.

 

8.2           Purchaser’s
Damages. In the event the sale of the Property as contemplated hereunder is not consummated due to Seller’s default hereunder
and such default continues for more than ten (10) days after written notice from Purchaser, Purchaser shall be entitled, as its
sole remedy, either (a) to receive the return of all of the Earnest Money, which return shall operate to terminate this Agreement
and release Purchaser and Seller from any and all liability hereunder, and be reimbursed from Seller concurrently with such termination
the actual documented out-of-pocket expenses incurred by Purchaser and paid (i) to Purchaser’s outside attorneys in connection
with the negotiation of this Agreement, (ii) to unrelated and unaffiliated third party consultants in connection with the performance
of examinations, inspections and/or investigations pursuant to this Agreement, and (iii) to Purchaser’s lender in connection
with the financing of this transaction, all such items in (i), (ii) and (iii) above shall not exceed the maximum amount of $300,000.00,
or (b) to enforce specific performance of Seller’s obligation to convey the Property to Purchaser in accordance with the
terms of this Agreement. Purchaser expressly waives its rights to seek damages in the event of Seller’s default hereunder.
Except as set forth in this Section 8.2, Purchaser shall be deemed to have elected to terminate this Agreement and receive
back all of the Earnest Money if Purchaser fails to file suit for specific performance against Seller in a court having jurisdiction
in the county and state in which the Property is located, on or before two (2) years following the date upon which Closing was
to have occurred.

 

8.3           Indemnity.
Notwithstanding Sections 8.1 and 8.2 hereof, in no event shall the provisions of Sections 8.1 and 8.2 limit
the damages recoverable by either party against the other party due to the other party’s obligation to indemnify such party
in accordance with this Agreement.

 

    	 	18	 

     

    

 

ARTICLE 9

 

SELLER’S COVENANT

 

9.1           No
Conveyance. Except as Purchaser may otherwise consent in writing, until the Closing Date, unless this Agreement is sooner terminated,
Seller shall not grant to any third party any interest in the Property or any part thereof or further voluntarily sell or encumber
the Property or any part thereof.

 

9.2           No
Solicitation. After the Effective Date and before the Closing Date, Seller shall not directly or indirectly, through any officer,
director, employee, agent or otherwise, solicit, initiate or encourage submission of proposals or offers from any person relating
to any acquisition of all or any portion of the Property, or any assets of or equity interest in Seller or any business combination
involving Seller, or furnish to any other person any information with respect to, or otherwise cooperate in any way with, or assist
or participate in, facilitate, or encourage, any effort or attempt by any other person to do or seek any of the foregoing.

 

ARTICLE 10

 

MISCELLANEOUS

 

10.1         Commissions.
If and only if, this transaction is closed, Seller shall pay to Jones Lang LaSalle (the “Broker”) a sales commission
pursuant to a separate commission agreement between Seller and Broker. Purchaser shall not be liable or responsible for any brokerage
fees or commissions to Broker. If this transaction fails to close for any reason, including the default of either party, no commission
shall be deemed to have been earned by or payable to Broker. Each of the parties represents to each other that it has not retained
or used the services of a broker or agent in connection with this transaction other than Broker. Each party agrees to indemnify
and hold the other harmless from any claims of any other brokers or agents for fees or commissions arising out of this transaction
attributable to a breach by such party of its representation in the immediately preceding sentence.

 

10.2         Parties
Bound. This Agreement may not be assigned by Purchaser directly or indirectly (including changes in control of Purchaser) to
any party without the prior written consent of Seller; provided that Purchaser may assign its rights under this Agreement to an
affiliate of Purchaser without obtaining Seller’s consent so long as Purchaser gives Seller and the Title Company written
notice of any such assignment at least five (5) days prior to the Closing Date. For the purpose of this Section 10.2, an
“affiliate of Purchaser” shall mean any entity controlling, controlled by, or under common control with Purchaser.
Subject to the foregoing, this Agreement and all provisions hereof, including, without limitations, all representations and warranties
made hereunder, shall extend to, be obligatory upon and inure to the benefit of the respective heirs, devisees, legal representatives,
successors, assigns, and beneficiaries of the parties hereto. No assignment by either party shall relieve such party of any obligation
under this Agreement whether arising before or after such assignment.

 

    	 	19	 

     

    

 

10.3         Headings.
The article and paragraph headings of this Agreement are for convenience only and do not limit or enlarge the scope or meaning
of the language hereof.

 

10.4         Provisions
Survive. The provisions of this Agreement that contemplate performance after Closing shall survive the Closing and shall not
be merged into the instruments of Closing.

 

10.5         Invalidity
and Waiver. If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible the
remainder of this Agreement shall be deemed valid and operative, and effect shall be given to the intent manifested by the portion
held invalid or inoperative. The failure by either party to enforce against the other any term or provision of this Agreement shall
be deemed not to be a waiver of such party’s right to enforce against the other party the same or any other such term or
provision.

 

10.6         Governing
Law/Jurisdiction/Venue/Jury Waiver. This Agreement shall be construed and the rights and obligations of Seller and Purchaser
hereunder determined in accordance with the internal laws of the State of Texas without regard to the principles of choice of law
or conflicts of law. In recognition of the benefits of having any disputes with respect to this Agreement resolved by an experienced
and expert person, Seller and Purchaser hereby agree that any suit, action, or proceeding, whether claim or counterclaim, brought
or instituted by any party on or with respect to this Agreement or which in any way relates, directly or indirectly, to this Agreement
or any event, transaction, or occurrence arising out of or in any way connected with this Agreement or the Property, or the dealings
of the parties with respect thereto, shall be tried only by a court and not by a jury. THE PARTIES HERETO, TO THE FULL EXTENT PERMITTED
BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, (A) SUBMIT TO PERSONAL
JURISDICTION IN THE STATE OF TEXAS OVER ANY SUIT, ACTION OR PROCEEDING BY ANY PERSON ARISING FROM OR RELATING TO THIS AGREEMENT,
(B) AGREE THAT ANY SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN HARRIS
COUNTY, TEXAS, (C) SUBMIT TO THE JURISDICTION OF SUCH COURTS, AND, (D) TO THE FULLEST EXTENT PERMITTED BY LAW, AGREE THAT NONE
OF THEM WILL BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM. EACH PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY
JURY IN ANY SUCH SUIT, ACTION, OR PROCEEDING.

 

10.7         No
Third Party Beneficiary. This Agreement is not intended to give or confer any benefits, rights, privileges, claims, actions
or remedies to any person or entity as a third party beneficiary, decree, or otherwise.

 

10.8         Entirety
and Amendments. This Agreement embodies the entire agreement between the parties and supersedes all prior agreements and understandings
relating to the Property. This Agreement may be amended or supplemented only by an instrument in writing executed by the party
against whom enforcement is sought.

 

    	 	20	 

     

    

 

10.9         Execution
in Counterparts. For the convenience of the parties any number of counterparts hereof may be executed, and each such executed
counterpart shall be deemed an original, and all such counterparts together shall constitute one and the same instrument. Facsimile
or .PDF transmission of an executed counterpart of this Agreement shall be deemed to constitute due and sufficient delivery of
such counterpart, and such facsimile or .PDF signatures shall be deemed original signatures for purposes of enforcement and construction
of this Agreement.

 

10.10       Further
Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by
Seller to Purchaser at the Closing, Seller agrees to perform, execute and/or deliver or cause to be delivered, executed and/or
delivered, but without any obligation to incur any additional liability or expense, after the Closing any and all further acts,
deeds and assurances as may be reasonably necessary to consummate the transactions contemplated hereby and/or to further perfect
and deliver to Purchaser the conveyance, transfer and assignment of the Property and all rights related thereto. This Section shall
survive Closing.

 

10.11       Time.
Time is of the essence in the performance of each and every term, condition and covenant contained in this Agreement.

 

10.12       Attorneys’
Fees. Should either party employ attorneys to enforce any of the provisions hereof, the party losing in any final judgment
agrees to pay the prevailing party all reasonable costs, charges and expenses, including reasonable attorneys’ fees, expended
or incurred in connection therewith.

 

10.13       Use
of Pronouns. The use of the neuter singular pronoun to refer to Seller and Purchaser shall be deemed a proper reference, even
though Seller or Purchaser may be an individual, partnership or a group of two or more individuals. The necessary grammatical changes
required to make the provisions of this Agreement apply in the plural sense where there is more than one seller or purchaser and
to either partnerships or individuals (male or female) shall in all instances be assumed as though in each case fully expressed.

 

10.14       Notices.
All notices required or permitted hereunder shall be in writing and shall be served on the parties at the following address:

 

	If to Purchaser:	Global Medical REIT Inc.
		4800 Montgomery Lane, Suite 450
		Bethesda, Maryland 20814
		Fax: 202 380 0891
		Email: AlfonzoL@GlobalMedicalREIT.com

 

    	 	21	 

     

    

 

 

	With a copy to:	
        Bradley Arant Boult Cummings LLP

        1600 Division Street, Suite 700

        Nashville, TN 37203

        Attn: Ann Peldo Cargile

        Fax: 615-252-2373

        Email: acargile@bradley.com

	 	 
	If to Seller:	
        Norvin Healthcare Properties

        805 Third Avenue, 18th Floor

        New York,
        New York 10022

        Attn: Norman K. Livingston

        Telephone: (212) 542-4121

        Telefax: (212) 838-7191

        e-Mail: norm@norvin.com

	 	 
	With a copy to:	
        Darren Inoff, Esq.

        King & Spalding LLP

        1100 Louisiana Street

        Suite 4000

        Houston, Texas 77002

        Telephone: (713) 751-3256

        Telefax: (713) 751-3290

        e-Mail: dinoff@kslaw.com

 

Any such notices shall
be either (i) sent by certified mail, return receipt requested, in which case notice shall be deemed delivered on or upon the earlier
of (a) the day said notice is actually received, or (b) the third business day after deposit, postage prepaid in the U.S. Mail,
(ii) sent by overnight delivery using a nationally recognized overnight courier, in which case it shall be deemed delivered on
the day after deposit with such courier, (iii) sent by telefax, in which case notice shall be deemed delivered upon confirmed transmission
of such notice, (iv) sent by personal delivery, or (v) by email, in which case notice shall be deemed delivered upon receipt of
same. The above addresses may be changed by written notice to the other party; provided, however, that no notice of a change of
address shall be effective until actual receipt of such notice.

 

10.15       Construction.
The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement or any exhibits or amendments hereto.

 

10.16       Calculation
of Time Periods. Unless otherwise specified, in computing any period of time described herein, the day of the act or event
after which the designed period of time begins to run is not to be included and the last day of the period so computed is to be
included, unless such last day is a Saturday, Sunday or legal holiday (such day which is neither Saturday, Sunday or legal holiday,
a “business day”), in which event the period shall run until the end of the next day which is neither a Saturday,
Sunday, or legal holiday, in the state in which the Property is located.

 

    	 	22	 

     

    

 

10.17       No
Waiver. Except as otherwise expressly provided herein, no waiver by Purchaser of any of its rights under this Agreement shall
be valid unless in writing signed by Purchaser.

 

10.18       Section
1031 Exchange.

 

(a)          Seller
may structure the disposition of the Property as a like-kind exchange under Internal Revenue Code Section 1031 at Seller’s
sole cost and expense. Purchaser shall reasonably cooperate therein, provided that Purchaser shall incur no material costs, expenses
or liabilities in connection with Seller’s exchange. Seller shall indemnify, defend and hold Purchaser harmless therefrom
and Purchaser shall not be required to take title to or contract for purchase of any other property. If Seller uses a qualified
intermediary to effectuate the exchange, any assignment of the rights or obligations of Seller hereunder shall not relieve, release
or absolve Seller of its obligations to Purchaser.

 

(b)          Purchaser
may structure the disposition of the Property as a like-kind exchange under Internal Revenue Code Section 1031 at Purchaser’s
sole cost and expense. Seller shall reasonably cooperate therein, provided that Seller shall incur no material costs, expenses
or liabilities in connection with Purchaser’s exchange. Purchaser shall indemnify, defend and hold Seller harmless therefrom
and Seller shall not be required to take title to or contract for purchase of any other property. If Purchaser uses a qualified
intermediary to effectuate the exchange, any assignment of the rights or obligations of Purchaser hereunder shall not relieve,
release or absolve Purchaser of its obligations to Seller.

 

10.19       Confidentiality.

 

(a)          Prior
to Closing, Purchaser and Seller shall each maintain as confidential any and all material obtained about the other or, in the case
of Purchaser, about the Property, this Agreement or the transactions contemplated hereby, and shall not disclose such information
to any third party. Except as may be required by law, Purchaser will not divulge any such information to other persons or entities,
including, without limitation, appraisers, real estate brokers, or competitors of Seller. Notwithstanding the foregoing, Purchaser
shall have the right to disclose information with respect to the Property to its officers, directors, employees, attorneys, accountants,
environmental auditors, appraisers, engineers, potential lenders, and permitted assignees under this Agreement and other consultants
to the extent necessary for Purchaser to evaluate its acquisition of the Property provided that all such persons are told that
such information is confidential and agree to keep such information confidential. The foregoing restrictions shall not apply to;
(i) information that was in Purchaser’s possession prior to disclosure by Seller; or (ii) information that is a matter of
public knowledge or which has heretofore been or is hereafter published in any publication for public distribution or filed as
public information with any governmental authority or disclosed pursuant to applicable law, order, subpoena or demand of any governmental
authority (including any disclosure deemed necessary or advisable by Purchaser’s parent company pursuant to applicable securities
laws or otherwise on account of such parent being a publicly traded entity) or as is necessary to be disclosed to lessors, lenders,
governmental authorities, Purchaser and Purchaser’s employees and third parties in order to consummate this transaction).

 

    	 	23	 

     

    

 

(b)          After
Closing, Seller and Purchaser each shall maintain the confidentiality of this sale and purchase and shall not, except as required
by law or governmental regulation applicable to the Property and except in connection with any action or suit under this Agreement,
disclose the terms of this Agreement or of such sale and purchase to any third parties whomsoever other than investors or prospective
investors in Seller or Purchaser and such other persons whose assistance is required in carrying out the terms of this Agreement.
Seller and Purchaser shall not at any time announce the sale, issue a press release or otherwise communicate with media representatives
regarding this sale and purchase unless such release or communication has received the prior approval of Seller and Purchaser.

 

10.20       Publicity.
No party shall issue any press release or public announcement relating to the subject matter of this Agreement without the prior
written approval of the other parties, which approval shall not be unreasonably withheld or delayed; provided, however, that any
party may make the following public disclosure (without the consent of the other party): if prior to Closing, such disclosure it
believes in good faith is required by applicable law or stock market rule.

 

[END OF TEXT]

 

    	 	24	 

     

    

 

SIGNATURE PAGE TO

PURCHASE AND SALE AGREEMENT

BY AND BETWEEN

NORVIN AUSTIN REHAB LLC

AND

GLOBAL MEDICAL REIT INC.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement to be effective as of the Effective Date.

 

	 	“Seller”
	 	 
	 	NORVIN AUSTIN REHAB LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Norman Livingston
	 	Name:	Norman Livingston
	 	Title:	Manager
	 	 
	 	“Purchaser”
	 	 
	 	GLOBAL MEDICAL REIT INC., 
	 	a Maryland corporation
	 	 	 
	 	By:	/s/ David Young
	 	Name:	David Young
	 	Title:	Chief Executive Officer 

 

     

     

    

 

TITLE COMPANY’S AGREEMENT AND RECEIPT:

 

On this 5th
day of July, 2017 (the “Effective Date”), Commonwealth Land Title Insurance Company, as the Title Company named
in the foregoing Agreement, hereby acknowledges receipt of (i) counterparts of this Agreement executed by Seller and Purchaser
and

(ii) the sum of $300,000.00 in cash or immediately
available federal funds as the Earnest Money deposit required under Section 1.3 of this Agreement and hereby agrees to act
as Title Company in strict accordance with the terms of this Agreement.

 

	 	COMMONWEALTH LAND TITLE INSURANCE COMPANY
	 	 	 
	 	By: 	/s/ L.I. Pangilinan
	 	Name:	 L.
    Irene Pangilinan
	 	 	As Agent for the Title Company

 

    	 	A - 1	 

     

    

 

EXHIBIT A

 

PROPERTY

 

Lots 1 and 2, Block A, Triangle Tract 2 Subdivision,
a subdivision in Travis County, Texas, according to the map or plat thereof recorded under Document No. 201100056, Official Public
Records, Travis County, Texas.

 

    	 	A - 1	 

     

    

 

EXHIBIT B

 

PERSONAL PROPERTY

 

None

 

    	 	B - 1	 

     

    

 

EXHIBIT C

 

FORM OF SPECIAL WARRANTY DEED

 

NOTICE OF CONFIDENTIALITY
RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT
TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR
DRIVER’S LICENSE NUMBER.

 

SPECIAL WARRANTY DEED

 

	THE STATE OF TEXAS	§	 
	 	§	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF TRAVIS	§	 

 

That NORVIN AUSTIN
REHAB LLC, a Delaware limited liability company (“Grantor”), for and in consideration of the sum of $10
and other good and valuable consideration to it in hand paid by [______________________], a Delaware limited liability
company (“Grantee”), the receipt and sufficiency of which are hereby acknowledged, has GRANTED, BARGAINED,
SOLD and CONVEYED and by these presents does GRANT, BARGAIN, SELL and CONVEY unto the Grantee, whose address is c/o Global
Medical REIT Inc., 4800 Montgomery Lane, Suite 450, Bethesda, MD 20814, the property described on Exhibit A attached hereto
(the “Land”) together with (i) any and all appurtenances belonging or appertaining thereto; (ii) any and
all improvements located thereon; (iii) any and all appurtenant easements or rights of way affecting said real property and
any of Grantor’s rights to use same; (iv) any and all rights of ingress and egress to and from said real property and
any of Grantor’s rights to use same; (v) all minerals, oil, gas, and other hydrocarbon substances thereon, (vi) all
air, riparian, development, utility, and solar rights related thereto, (vii) any and all rights to the present or future use
of wastewater, wastewater capacity, drainage, water or other utility facilities to the extent same pertain to or benefit said
real property or the improvements located thereon, including without limitation, all reservations of or commitments or
letters covering any such use in the future, whether now owned or hereafter acquired; and (viii) all right, title and
interest of Grantor, if any, in and to (a) any and all roads, streets, alleys and ways (open or proposed) affecting,
crossing, fronting or bounding said real property, including any awards made or to be made relating thereto
including, without limitation, (b) any unpaid awards or damages payable by reason of damages thereto or by reason of a
widening of or changing of the grade with respect to preceding items (a), (c) any and all strips, gores or pieces of property
abutting, bounding or which are adjacent or contiguous to said real property (whether owned or claimed by deed, limitations
or otherwise), (d) any and all air rights relating to said real property and (e) any and all reversionary interests in and to
said real property (said real property together with any and all of the related improvements, appurtenances, rights and
interests referenced in items (i) through (viii) above are herein collectively referred to as the
“Property”). Notwithstanding anything contained herein to the contrary, however, with respect to the
rights and interests described in (iv), (v), (vii) and (viii) directly above, Grantor is hereby only granting, selling and
conveying any of Grantor’s right, title and interest in and to same without warranty (whether statutory, express or
implied).

 

    	 	C - 1	 

     

    

  

TO HAVE AND TO
HOLD the Property together with all and singular the rights and appurtenances thereto in anywise belonging, unto Grantee, its successors
and assigns, forever, subject to the restrictions set forth hereinafter and the other matters described on Exhibit B attached
hereto (collectively, the “Permitted Exceptions”); and Grantor does hereby bind itself and its successors, to
warrant and forever defend all and singular the Land, subject to Permitted Exceptions unto Grantee, its successors and assigns,
against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Grantor, but not
otherwise (the “Warranty of Title”).

 

This conveyance
is made on an “As Is”, “Where Is” and “With All Faults” basis. The Property is sold in its
present condition, AS IS and no warranties, express or implied, are made or inferred by virtue of this conveyance,
except for the Warranty of Title and those representations and warranties with respect to the Property made by Grantor to Grantee
in that certain Purchase and Sale Agreement dated June , 2017.

 

All ad valorem
taxes and assessments for the Property for the year in which this Deed is executed have been prorated by the parties hereto and
Grantee hereby expressly assumes liability for the payment thereof. If such proration was based upon an estimate of such taxes
and assessments for such year, then upon demand the parties hereto shall promptly and equitably adjust all such taxes and assessments
as soon as actual figures for the Property for such year are available.

 

[END OF TEXT]

 

    	 	C - 2	 

     

    

 

EXECUTED on the date of the acknowledgment
set forth below to be effective for all purposes as of the______ day of__________ , 2017.

 

	 	NORVIN AUSTIN REHAB LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 

 

	THE STATE OF _________________________	§
	 	§
	COUNTY OF  ___________________________	§

 

This instrument was acknowledged
before me on the______ day of____________ , 2017, by _______________________,_______________________of Norvin Austin Rehab
LLC, a Delaware limited liability company, on behalf of said limited liability company.

 

	 	 
	 	Notary Public in and for the State of____________________
	 	 
	 	My Commission Expires:_____________________________

 

    	 	C - 3	 

     

    

 

EXHIBIT A TO FORM OF SPECIAL
WARRANTY DEED

 

LEGAL
DESCRIPTION OF THE LAND

 

    	 	C - 4	 

     

    

 

EXHIBIT
B TO FORM OF SPECIAL WARRANTY DEED 

 

PERMITTED
EXCEPTIONS

 

    	 	C - 5	 

     

    

 

EXHIBIT D

 

FORM OF BILL OF SALE

 

BILL OF SALE

 

	THE STATE OF TEXAS	§	 
	 	§	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF TRAVIS	§	 

 

THAT NORVIN AUSTIN
REHAB LLC, a Delaware limited liability company (“Seller”), for and in consideration of the sum of Ten Dollars
($10.00) and other good and valuable consideration to Seller in hand paid by______________, a  ____________ (“Purchaser”),
the receipt of which is hereby acknowledged, has Sold, Delivered and Assigned, and by these presents does Sell, Deliver and Assign,
unto Purchaser all of its right, title and interest in and to the following described property, to-wit:

 

All tangible personal property owned
by Seller and located on, used in connection with the management, operation, or repair of the Real Property (as defined in the
Agreement) or attached to the Real Property (“Personal Property”), which personal property specifically excludes
the personal property listed on Exhibit A attached hereto and made a part hereof for all purposes.

 

TO HAVE AND TO
HOLD the Personal Property unto Purchaser and Purchaser’s successors and assigns forever.

 

PURCHASER
ACKNOWLEDGES AND AGREES THAT THE PERSONAL PROPERTY IS CONVEYED “AS IS, WHERE IS” AND IN ITS PRESENT CONDITION
WITH ALL FAULTS, AND THAT SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES,
PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR
WRITTEN, PAST, PRESENT OR FUTURE, WITH RESPECT TO THE NATURE, QUALITY OR CONDITION OF THE PERSONAL PROPERTY, THE INCOME TO BE
DERIVED THEREFROM, OR THE QUALITY, ENFORCEABILITY, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE PERSONAL
PROPERTY, except for a Warranty of Title and those representations and warranties made by Seller to Purchaser in that certain
Purchase and Sale Agreement dated June , 2017 (the “Agreement”).

 

Notwithstanding
the foregoing to the contrary, Seller warrants that as of the execution date of this Bill of Sale, it is the owner of the Personal
Property, that the Personal Property is free from all liens and encumbrances, and that Seller has the right to transfer title and
deliver possession of the Personal Property to the Purchaser.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	D - 1	 

     

    

 

EXECUTED
this______ day of________ , 2017.

 

	 	SELLER:
	 	 
	 	NORVIN AUSTIN REHAB LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 

 

    	 	D - 2	 

     

    

 

EXHIBIT
A TO FORM OF BILL OF SALE

 

LEGAL
DESCRIPTION

 

    	 	D - 3	 

     

    

 

EXHIBIT
B TO FORM OF BILL OF SALE

 

EXCLUDED
PERSONAL PROPERTY

 

    	 	D - 4	 

     

    

 

EXHIBIT E

 

FORM OF GENERAL ASSIGNMENT AND ASSUMPTION AGREEMENT

 

GENERAL ASSIGNMENT AND ASSUMPTION
AGREEMENT

 

	THE STATE OF TEXAS	§
	 	§
	COUNTY OF TRAVIS	§

 

THIS GENERAL
ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”), made effective as of the ______ day
of______________ , 2017, by and between NORVIN AUSTIN REHAB LLC, a Delaware limited liability company
(“Assignor”), and __________________, a_____________(“Assignee”).

 

RECITALS:

 

Assignor has this
day conveyed the real property (and improvements thereon) described on Exhibit A attached hereto and made a part hereof
(such real property and improvements being hereinafter called the “Premises”) to Assignee. Assignor desires
to convey all of its right, title and interest in and to the incidental rights and appurtenances relating to the Premises as more
fully described below.

 

AGREEMENTS:

 

For and in
consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Assignor does hereby GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER, SET-OVER and DELIVER unto
Assignee, its successors and assigns, all of Assignor’s right, title and interest in and to the following
(collectively, the “Assigned Property”): All permits, licenses, certificates of occupancy, warranties,
telephone exchange numbers, architectural or engineering plans and specifications and governmental approvals which relate to
the Premises, the improvements or the personal property located thereon or related thereto.

 

TO HAVE AND TO
HOLD the above rights and interests unto Assignee, its successors and assigns, forever and Assignor does hereby bind itself and
its successors and assigns, to warrant and forever defend, all and singular the rights of Assignor under the above described interests
unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim same or any part thereof
by, through or under Assignor, but not otherwise.

 

ASSIGNEE ACKNOWLEDGES
AND AGREES THAT THE ASSIGNED PROPERTY IS CONVEYED “AS IS, WHERE IS” AND IN ITS PRESENT CONDITION WITH ALL FAULTS, AND
THAT ASSIGNOR HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS
OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, WITH RESPECT
TO THE NATURE, QUALITY OR CONDITION OF THE ASSIGNED PROPERTY, THE INCOME TO BE DERIVED THEREFROM, OR THE QUALITY, ENFORCEABILITY,
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE ASSIGNED PROPERTY.

 

    	 	E - 1	 

     

    

 

This Assignment
may be executed in one or more counterparts (by facsimile or otherwise), each such counterpart being an original hereof and all
such counterparts taken together constituting but one and the same instrument and agreement.

 

All of the covenants,
terms and conditions set forth herein shall be binding upon and inure to the benefit of the parties hereto, their respective successors
and assigns.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	E - 2	 

     

    

 

EXECUTED this_______ day of_______ , 2017.

 

	 	ASSIGNOR:
	 	 
	 	NORVIN AUSTIN REHAB LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	ASSIGNEE:
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	E - 3	 

     

    

 

EXHIBIT A TO FORM OF GENERAL
ASSIGNMENT

 

LEGAL DESCRIPTION

 

    	 	E - 4	 

     

    

 

EXHIBIT F

 

FORM OF ASSIGNMENT AND ASSUMPTION
OF LEASE

 

ASSIGNMENT AND ASSUMPTION OF LEASE

 

	THE STATE OF TEXAS	§
	 	§
	COUNTY OF TRAVIS	§

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASES (this “Assignment”), made effective as of the______ day of__________________ , 2017,
by and between NORVIN AUSTIN REHAB LLC, a Delaware limited liability company (“Assignor”),
and________________________, a _________________________________ (hereinafter referred to as the
“Assignee”).

 

RECITALS:

 

Assignor has this
day conveyed the real property described on Exhibit A attached hereto and made a part hereof (such real property being hereinafter
called the “Premises”) to Assignee. Assignor desires to convey all of its right, title and interest in and to
the incidental rights and appurtenances relating to the Premises as more fully described below.

 

AGREEMENTS:

 

For and in
consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Assignor does hereby GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER, SET-OVER and DELIVER unto
Assignee, its successors and assigns, all of Assignor’s right, title and interest in and to that certain Amended and
Restated Lease Agreement dated effective as of September 17, 2010 (the “Lease”), by and between Assignor,
as landlord and successor in interest to Prevarian Hospital Partners, LP, a Texas limited partnership, and CTRH, LLC, a
Delaware limited liability company, as tenant (the “Tenant”), which Lease is guaranteed by Kindred
Healthcare, Inc., by Corporate Guaranty dated May 24, 2012, together with all rents and other charges paid by the Tenant and
all security and/or rental deposits related thereto.

 

TO HAVE AND TO
HOLD the above rights and interests unto Assignee, its successors and assigns, forever and Assignor does hereby bind itself and
its successors and assigns, to warrant and forever defend, all and singular the rights of Assignor under the above described interests
unto Assignee, its successors and assigns, against every person whomsoever lawfully claiming or to claim same or any part thereof
by, through or under Assignor, but not otherwise.

 

Assignee hereby
accepts the foregoing assignment of the Lease and hereby assumes all duties and obligations of Assignor under the Lease to the
extent such duties and obligations arise or accrue from and after the date of this Assignment. Assignee shall defend, indemnify
and hold harmless Assignor from and against any and all Claims (as hereinafter defined) asserted against or incurred by Assignor
as a result of any acts or omissions, which arise or accrue from and after the date of this Assignment, in connection with the
Lease assigned herein. “Claims” means claims, demands, causes of action, losses, damages, liabilities, judgments, costs
and expenses (including attorneys’ fees, whether suit is instituted or not).

 

    	 	F - 1	 

     

    

 

Assignor shall defend,
indemnify and hold harmless Assignee from and against any and all Claims asserted against or incurred by Assignee as a result of
any acts or omissions, which arise or accrue prior to the date of this Assignment, in connection with the Lease assigned herein.

 

This Assignment
may be executed in one or more counterparts (by facsimile or otherwise), each such counterpart being an original hereof and all
such counterparts taken together constituting but one and the same instrument and agreement.

 

All of the covenants,
terms and conditions set forth herein shall be binding upon and inure to the benefit of the parties hereto, their respective successors
and assigns.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	F - 2	 

     

    

 

EXECUTED this______
day of_________ , 2017.

 

	 	ASSIGNOR:
	 	 
	 	NORVIN AUSTIN REHAB LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	ASSIGNEE:
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	F - 3	 

     

    

 

EXHIBIT
A TO FORM OF ASSIGNMENT AND ASSUMPTION OF LEASE

 

 LEGAL DESCRIPTION

 

    	 	F - 4	 

     

    

 

EXHIBIT G

 

FORM OF TENANT ESTOPPEL CERTIFICATE

 

TENANT ESTOPPEL CERTIFICATE

 

Tenant’s
Estoppel Certificate

 

	Premises:	________________________, _______________	 
	 	 	 
	Landlord:	________________________, a _______________	 
	 	 	 
	Tenant:	___________________	 
	 	 	 
	 	 	 
	Lease dated: 	______________, 20__	 

 

	Tenant’s Notice Address:	 _________________________	 
	 	 _________________________	 
	 	Attn: _____________________	 

 

The undersigned, Tenant
of approximately ___ square feet of space under that certain Lease dated ________ – _____ (as amended, the “Lease”)
made with Landlord, covering space  in
Landlord’s building (the “Building”) known as ______________ and located at ______________, _____________,
hereby certifies, agrees and acknowledges to BMO Harris Bank  N.A ., as
Administrative Agent (“Administrative Agent”), for itself and such other co-lenders as may exist from time
to time (collectively, the “Lenders”), and to its successors and assigns, that:

 

1.          Attached
hereto as Exhibit A is a true, correct and complete copy of the Lease, together with all amendments thereto. [If applicable:
Attached hereto as Exhibit B is a true, correct and complete copy of the guaranty of Lease, together with all amendments thereto.]

 

2.          Tenant
has accepted possession of the Premises pursuant to the Lease. The Lease term commenced on__________________________. The termination
date of the Lease term, excluding renewals and extensions, is__________________________. The undersigned has no rights to renew,
extend or cancel the Lease or to lease additional space in the Building except as follows:

 

_____________________________________________________________.

 

3.          The undersigned
has no option or preferential right to purchase all or any part of the Premises (or the land or Building of which the Premises
are a part), and has no right or interest with respect to the Premises or the Building other than as Tenant under the Lease except:

 

_____________________________________________________________.

 

    	 	G - 1	 

     

    

 

4.          Any improvements
required by the terms of the Lease to be made by Landlord have been completed to the satisfaction of Tenant in all respects, and
Landlord has fulfilled all of its duties under the Lease. All contributions required by the Lease to be paid by Landlord to date
for improvements to the Premises have been paid in full.

 

5.          Any improvements
required by the terms of the Lease to be made by Tenant have been completed to the satisfaction of Landlord in all respects, and
Tenant has fulfilled all of its duties under the Lease. Tenant is not currently performing any alterations or other construction
work in the Premises, and has not engaged any contractor or other person to perform such work in the Premises.

 

6.          The Lease
has not been assigned, modified, supplemented or amended in any way. Tenant has not sublet any portion of the Premises. The Lease
constitutes the entire agreement between the parties and there are no other agreements between Landlord and Tenant concerning the
Premises.

 

7.          The Lease
is valid and in full force and effect, and neither Landlord nor Tenant is in default thereunder, and no event has occurred and
no condition exists, which, with the giving of notice or the passage of time, or both, will constitute a default under the Lease.
The guaranty of Lease, if any, is valid and in full force and effect. Tenant has no defense, setoff or counter-claim against Landlord
arising out of the Lease or in any way relating thereto, or arising out of any other transaction between Tenant and Landlord. Tenant
has not received a notice of default from Landlord under the Lease.

 

8.          No rent (including
minimum rent or additional rent) or other sum payable under the Lease has been paid in advance. The undersigned has made no agreement
with Landlord or any agent, representative or employee of Landlord concerning free rent, partial rent, rebate of rental payments
or any other similar rent concession.

 

9.          The
minimum monthly rent presently payable under the Lease is $____________. The annual percentage rent presently payable under the
Lease is as follows:__________________. There exists no dispute between Landlord and Tenant as to the minimum monthly rent or
percentage rent.

 

10.          Tenant’s
proportionate share of real estate taxes and operating expenses is %. There exists no dispute between Landlord and Tenant as
to current or past rent as provided in the Lease.

 

11.          The
minimum monthly rent has been paid as provided in the Lease through__________________.

 

12.          Tenant
has delivered a security deposit to Landlord in the amount of $__________________.

 

    	 	G - 2	 

     

    

 

13.          No petition
has been filed by or against Tenant or any guarantor of the Lease for protection under bankruptcy creditor’s rights, insolvency
or other similar statutes.

 

14.          Tenant has
full right and authority to execute and deliver this estoppel certificate and the person signing on behalf of Tenant is authorized
to do so. This Estoppel Certificate is being executed and delivered by Tenant to induce Lenders to make a loan to Landlord, which
loan is to be secured in part by an assignment to Administrative Agent of Landlord’s interest in the Lease and with the intent
and understanding that the above statements will be relied upon by Administrative Agent and Lenders, and shall be binding upon
Tenant, its successors and assigns.

 

[Remainder of page intentionally left blank; signature
page follows]

 

    	 	G - 3	 

     

    

 

Dated as of:_________________, 201  .

 

	 	Tenant:
	 	 
	 	[_______________________]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	G - 4	 

     

    

 

The undersigned
Guarantor does hereby join in the execution of this Tenant Estoppel Certificate for the purpose of acknowledging, confirming, and
agreeing with the statements and provisions herein.

 

	 	Guarantor:
	 	 
	 	[_________________________],
	 	a _____________________
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	G - 5	 

     

    

 

Exhibit a 

 

Lease

 

    	 	G - 6	 

     

    

 

Exhibit b 

 

Lease guaranty

 

    	 	G - 7	 

     

    

 

EXHIBIT H

 

FORM OF SNDA

 

THIS INSTRUMENT PREPARED BY AND

AFTER RECORDING RETURN TO:

 

Meghann A. Salamasick

Chapman and Cutler LLP

111 West
Monroe Street

Chicago, Illinois 60603

 

Subordination,

Non-Disturbance, and Attornment
Agreement

 

THIS
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”), dated this _____ day
of ___________, 2017, between ______________________, a  _________________________ (“Tenant”),
and BMO HARRIS BANK N.A., as
Administrative Agent (including any of its successors and assigns in such capacity, “Administrative
Agent”) for itself and such other co-lenders as may exist from time to time (collectively, “Lenders”).

 

Recitals :

 

A.          Tenant
is the lessee under that certain lease between Tenant and  _________ , a _________ limited liability company
(“Landlord”), dated__________________ (the lease and all amendments thereto are hereinafter referred to as
the “Lease”), covering approximately  ______ square feet of space in Landlord’s
building known as _________________ and located at ___________________, ___________________, and legally described in
Schedule 1 attached hereto and made a part hereof (the “Property”).

 

B.          Lenders
are making a loan (the “Loan”) to Landlord which is secured, in part, by the lien of a mortgage1
executed and delivered by Landlord to Administrative Agent encumbering the Property (the “Mortgage”)
and an assignment of all leases of and rents from the Property.

 

C.          As a condition
to making the Loan, Administrative Agent and Lenders require that Tenant enter into this Agreement.

 

NOW,
THEREFORE, in consideration of the covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

 

1 Revise as appropriate

 

    	 	H - 1	 

     

    

 

1.          The Lease
and all terms thereof, including, without limitation, any options to purchase, rights of first refusal, and any similar rights,
are and shall be subject and subordinate to the Mortgage, and to all amendments, modifications, replacements and extensions thereof,
to the full extent of the principal, interest, fees, expenses and all other amounts secured thereby.

 

2.          In the event
Administrative Agent elects to foreclose the Mortgage, Administrative Agent will not join Tenant in summary or foreclosure proceedings
unless required by applicable law (and then only to the extent so required) as long as Tenant is not in default under the Lease.

 

3.          In the event
that Administrative Agent or Lenders shall succeed to the interest of Landlord under the Lease and there exists no default by Tenant
under the Lease and Tenant has not amended the Lease without Administrative Agent’s prior written consent, Administrative
Agent agrees not to disturb or otherwise interfere with Tenant’s possession of the leased premises for the unexpired term
of the Lease, provided that Administrative Agent and Lenders shall not be:

 

(a)          liable
for any act or omission of Landlord or any prior landlord under the Lease;

 

(b)          subject
to any claims, offsets or defenses which Tenant might have against Landlord or any prior landlord;

 

(c)          bound
by any rent or additional rent which Tenant might have paid for more than the current month to Landlord or any prior landlord;

 

(d)          bound
by any termination, amendment, modification, or assignment of the Lease made without Administrative Agent’s prior written
consent; or

 

(e)          liable
for any security deposit Tenant might have paid to Landlord or any prior landlord, except to the extent Administrative Agent has
actually received said security deposit.

 

4.          Upon Administrative
Agent’s or Lenders’ succeeding to Landlord’s interest under the Lease, Tenant covenants and agrees to attorn
to Administrative Agent or Lenders or a purchaser at a foreclosure or trustee’s sale, to recognize such successor landlord
as Tenant’s landlord under the Lease, and to be bound by and perform all of the obligations and conditions imposed upon Tenant
by the Lease. If requested by Administrative Agent, Lenders or any subsequent owner, Tenant shall execute a new lease with Administrative
Agent or its designee or nominee, for a term equal to the remaining term of the Lease and otherwise containing the same provisions
and covenants of the Lease.

 

5.          Prior to
terminating the Lease due to a default by Landlord thereunder, Tenant agrees to notify Administrative Agent of such default and
give Administrative Agent the opportunity to cure such default within thirty (30) days of Administrative Agent’s receipt
of such notice (or, if such default cannot reasonably be cured within such thirty (30) day period, Administrative Agent shall have
such longer time as may be necessary to cure the default; provided that Administrative Agent commences the cure within such
period and diligently pursues the cure thereafter).

 

    	 	H - 2	 

     

    

 

6.          Any notice,
election, communication, request or other document or demand required or permitted under this Agreement shall be (i) delivered
in person, (ii) mailed, postage prepaid, either by registered or certified mail, return receipt requested, or (iii) by overnight
express carrier, paid by the sending party, addressed in each case as follows:

 

	If to Tenant:	____________________________
	 	____________________________
	 	____________________________
	 	Attention: ___________________
	 	 
	with a copy to:	____________________________
	 	____________________________
	 	____________________________
	 	Attention: ___________________
	 	 
	If to Administrative Agent:	BMO Harris Bank N.A.
	 	111 W. Monroe Street, 
	 	Chicago, Illinois  60603 
	 	Attention:  Kevin Fennell
	 	 
	 	BMO Harris Bank N.A. 
	 	111 West Monroe Street 
	 	Chicago, Illinois  60603
	 	Attention:  Portfolio Manager/ Global Medical REIT
	 	 
	with a copy to:	Chapman and Cutler LLP 
	 	111 West Monroe Street 
	 	Chicago, Illinois 60603 
	 	Attention:  Dan Baker

 

or to any other address for such party
in the United States of America as it shall designate in a written notice to the other party hereto. All notices sent pursuant
to the terms of this Paragraph shall be deemed received (i) if personally delivered, then on the date of delivery, (ii) if sent
by overnight, express carrier, then on the next federal banking day immediately following the day sent, or (iii) if sent by registered
or certified mail, then on the earlier of the third federal banking day following the day sent or when actually received.

 

7.          This Agreement shall be binding
upon and inure to the benefit of the respective heirs, personal representatives, successors and assigns of the parties hereto.

 

 8.          This Agreement can be modified only in writing duly executed by both parties.

 

    	 	H - 3	 

     

    

 

9.          This Agreement constitutes the
entire agreement between Lender and Tenant regarding the subordination of the Lease to the Mortgage and the rights and obligations
of Tenant and Lender as to the subject matter of this Agreement. Any inconsistency between the Lease and the provisions of this
Agreement shall be resolved in favor of this Agreement. Individuals signing this Agreement on behalf of a party hereto represent
and warrant that they are authorized to bind that party.

 

10.          This Agreement shall be governed
by and construed in accordance with the laws of the State of Illinois.

 

11.          Upon full and indefeasible repayment
of the Loan and the release of the Mortgage by Administrative Agent, this Agreement shall automatically terminate and be of no
further force and effect.

 

12.          This Agreement may be executed
in any number of counterparts, each of which shall be deemed to be an original but all of which when taken together shall constitute
one agreement.

 

    	 	H - 4	 

     

    

 

In WItness WHereof,
the parties hereto have executed this Agreement the day and year first above written.

 

	 	Tenant:
	 	 
	 	 

 

	 	By:	 	 
	 	 	Name:	 
	 	 	Its:	 

 

	 	Administrative agent:
	 	 
	 	Bmo
    Harris Bank
    N.A., a national banking association, as Administrative Agent

 

	 	By:	 	 
	 	 	Name:	 
	 	 	Its:	 

 

    	 	H - 5	 

     

    

 

	State Of ___________________________	)
	 	)ss.
	County Of _________________________	)

 

The foregoing instrument was acknowledged before
me this _________ day of __________________,____ by_____________________, the  ___________________________ of ___________________________,
a ___________________________, on behalf of said___________________________.

 

WITNESS my hand and official seal.

 

	 	 
	 	Notary Public
	 	 
	 	My commission Expires:  ____________________________

 

[Seal]

 

    	 	H - 6	 

     

    

 

	STATE OF ___________________________	)
	 	)ss.
	COUNTY OF _________________________	)

 

The foregoing instrument was acknowledged before
me this _________ day of __________________,____ by_____________________, the  ___________________________ of ___________________________,
a ___________________________, on behalf of said___________________________.

 

WITNESS my hand and official seal.

 

	 	 
	 	Notary Public
	 	My commission Expires:  ____________________________

 

[Seal]

 

    	 	H - 7	 

     

    

 

Schedule
1

 

Legal Description

 

    	 	H - 8	 

     

    

 

EXHIBIT I

 

FORM OF NOTICE TO TENANT

 

NOTICE TO TENANT

 

______________, 2017

 

[address to Tenant 

pursuant to Notice 

Provisions in Lease]

 

Dear Tenant:

 

You are hereby notified
that NORVIN AUSTIN REHAB LLC (“Seller”), as owner of the Property which you are occupying under your lease
(the “Lease”), has sold the Property to_______________ (“Purchaser”) as of the date of this
Notice set forth above, and in connection with such sale Seller has assigned and transferred its interest in the Lease and any
and all security deposits thereunder or relating thereto to Purchaser, and Purchaser has assumed and agreed to perform all of
Seller’s obligations under the Lease (including any obligations set forth in the Lease to repay or account for any security
deposits thereunder) from and after such date. Accordingly, (a) all of your obligations under the Lease from and after the date
of this Notice (including your obligation to pay rent) shall be performable to and for the benefit of Purchaser, its successors
and assigns and (b) all of Seller’s obligations under the Lease (including any obligations to repay or account for any security
deposits thereunder) from and after the date of this Notice shall be the binding obligations of Purchaser and its successors and
assigns. The current amount of the security deposit being held by Purchaser with respect to the Lease is $__________.

 

The address of Purchaser
for all purposes under the Lease (including the payments of rentals, the recoupment of any security deposits and the giving of
any notices provided for in the Lease) is__________________.

 

[Please instruct your
insurance carrier to provide Purchaser a new certificate of insurance listing “_______________, a_____________” as an additional
insured.]

 

Thank you very much for your assistance in this matter.

 

	 	Very truly yours,
	 	 
	 	NORVIN AUSTIN REHAB LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	I - 1	 

     

    

 

AGREED TO AND ACCEPTED:

 

“Purchaser”

 

[insert name of Purchaser]

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

    	 	I - 2	 

     

    

 

EXHIBIT J

 

PRELIMINARY DUE DILIGENCE CHECKLIST

 

		1.	Real Estate Physical Assessment Due Diligence

 

		a.	Surveys and site plans

 

		b.	Zoning reports

 

		c.	Property insurance certificate and loss run reports

 

		d.	Copies of any document affecting use of property (easements, CCRCs, etc.)

 

		e.	Building floor plans, as-builts

 

		f.	All architectural plans and specifications

 

		g.	Warranties (i.e., slab, roof)

 

		h.	Property tax bills for the past two years (assessment notice & tax bills)

 

		i.	Personal property inventory

 

		j.	Any certificate or license needed to occupy and use the building

 

		2.	Financial Information (Tenant and Guarantor)

 

		a.	All lease documents, including all amendments, corporate guaranty, correspondence, etc.

 

		b.	Income (P&L), balance sheet, and cash flow statements for year-end 12/31/15, 12/31/16, and year-to-date 5/31/17

 

		3.	Financial Information (Seller)

 

		a.	Property-level: Income (P&L) and cash flow statements for year-end 12/31/15, 12/31/16 and year-to-date 5/31/17

 

    	 	J - 1Exhibit 10.2

 

 

 

LEASE

 

between

 

GMR SHERMAN, LLC, d/b/a GLOBAL MEDICAL REIT
SHERMAN, LLC,

a Delaware limited liability company, 

as Landlord

 

AND

 

SDB PARTNERS, LLC, 

a Texas limited liability company

as Tenant

 

Dated as of June 30, 2017

 

 

 

     

     

    

 

LEASE

 

THIS LEASE (“Lease”)
is dated as of June 30, 2017, and is by and between GMR SHERMAN, LLC, d/b/a GLOBAL MEDICAL REIT SHERMAN, LLC, a Delaware limited
liability company (“Landlord”), and SDB PARTNERS, LLC, a Texas limited liability company (“Tenant”),
on the other hand.

 

SECTION
1

 

1.1           Premises;
Term. Upon and subject to the terms and conditions hereinafter set forth, Landlord leases to Tenant, and Tenant leases from
Landlord, all of Landlord’s rights and interests in and to the following (collectively, the “Premises”):

 

		(a)	the real property or properties described in Exhibit
A hereto (the “Land”);

 

		(b)	all buildings, structures, Fixtures (as hereinafter defined)
and other improvements of every kind now or hereafter located on the Land, including alleyways and connecting tunnels, sidewalks,
utility pipes, conduits and lines (on-site and off-site to the extent Landlord has obtained any interest in the same), parking
areas and roadways appurtenant to such buildings and structures and Capital Additions thereto (collectively, the “Leased
Improvements”);

 

		(c)	all easements, rights and appurtenances relating to the
Land and the Leased Improvements (collectively, the “Related Rights”);

 

		(d)	all equipment, machinery, fixtures, and other items of
real and/or personal property, including all components thereof, now and hereafter located in, on or used in connection with and
permanently affixed to or incorporated into the Leased Improvements, including all furnaces, boilers, heaters, electrical equipment,
heating, plumbing, lighting, ventilating, refrigerating, incineration, air and water pollution control, waste disposal, air cooling
and air conditioning systems, apparatus, sprinkler systems, fire and theft protection equipment; and built in oxygen and vacuum
systems (if any), all of which, to the greatest extent permitted by law, are hereby deemed to constitute real estate, together
with all replacements, modifications, alterations and additions thereto (collectively, the “Fixtures”); and

 

		(e)	the machinery, equipment, furniture and other personal
property described on Exhibit B attached hereto, together with any other items of personal property conveyed to Landlord
pursuant to the Purchase Contract, together with all replacements, modifications, alterations and substitutes therefor (whether
or not constituting an upgrade) (collectively, “Landlord’s Personal Property”).

 

     

     

    

 

SUBJECT, HOWEVER, to the
easements, encumbrances, covenants, conditions and restrictions and other matters that affect the Premises as of the date hereof
or the Commencement Date or that are created thereafter as permitted hereunder, to have
and to hold for (1) the Fixed Term (as defined below), and (2) the Extended Terms provided for in Section 19.1, unless this
Lease is earlier terminated as hereinafter provided.

 

SECTION
2

 

2.1           Definitions.
For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, (a) the terms
defined in this Section have the meanings assigned to them in this Section and include the plural as well as the singular; (b)
all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP as at the time applicable;
(c) all references in this Lease to designated “Sections,” “Sections” and other subdivisions are to the
designated Sections and other subdivisions of this Lease; (d) the word “including” shall have the same meaning as the
phrase “including, without limitation,” and other similar phrases; and (e) the words “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Section,
Section or other subdivision:

 

Acquisition Price:
The sum of (i) $26,000.000.00, which is the Purchase Price for the Premises; and (ii) $660,680.15, which is equal to the Closing
Expenses under the Purchase Contract.

 

Additional Charges:
As defined in Section 3.2.

 

Affiliate: Any Person
which, directly or indirectly (including through one or more intermediaries), controls or is controlled by or is under common control
with any other Person, including any Subsidiary of a Person. For purposes of this definition, the definition of Controlling Person
below, and Section 24.1.1 below, the term “control” (including the correlative meanings of the terms “controlled
by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly
or indirectly (including through one or more intermediaries), of the power to direct or cause the direction of the management and
policies of such Person, through the ownership or control of voting securities, partnership interests or other equity interests
or otherwise. Without limiting the generality of the foregoing, when used with respect to any corporation, limited liability company
or other legal entity, the term “Affiliate” shall also include (i) any Person which owns, directly or indirectly (including
through one or more intermediaries), Fifty Percent (50%) or more of any class of voting security or equity interests of such entity,
(ii) any Subsidiary of such entity and (iii) any Subsidiary of a Person described in clause (i).

 

Award: All compensation,
sums or anything of value awarded, paid or received on a total or partial Condemnation.

 

Bankruptcy Code:
The United Stated Bankruptcy Code (11 U.S.C. § 101 et seq.), and any successor statute or legislation thereto.

 

Build-out Allowance:
The sum of $2,000,000.00.

 

    	 	- 2 -	 

     

    

 

Business Day: Each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which national banks in the City of New York, New York are
authorized, or obligated, by law or executive order, to close.

 

Capital Additions:
One or more new buildings, or one or more additional structures annexed to any portion of any of the Leased Improvements, or the
material expansion of existing improvements that are constructed on any parcel or portion of the Land during the Term including
the construction of a new wing or new story, or the repair, replacement, restoration, remodeling or rebuilding of the existing
Leased Improvements or any portion thereof. The Build-out Improvements shall be a Capital Addition.

 

Capital Addition Costs:
The costs of any Capital Addition made to the Premises whether paid for by Landlord, including (i) all permit fees and other costs
imposed by any governmental authority, the cost of site preparation, the cost of construction including materials and labor, the
cost of supervision and related design, engineering and architectural services, the cost of any fixtures, and if and to the extent
approved by Landlord, the cost of construction financing; (ii) fees paid to obtain necessary licenses and certificates; (iii) if
and to the extent approved by Landlord in writing and in advance, the cost of any land contiguous to the Premises that is to become
a part of the Premises purchased for the purpose of placing thereon the Capital Addition or any portion thereof or for providing
means of access thereto, or parking facilities therefor, including the cost of surveying the same; (iv) the cost of insurance,
real estate taxes, water and sewage charges and other carrying charges for such Capital Addition during construction; (v) the cost
of title insurance; (vi) reasonable fees and expenses of legal counsel; (vii) filing, registration and recording taxes and fees;
(viii) documentary stamp and similar taxes; and (ix) all reasonable costs and expenses of Landlord and any Person that has committed
to finance the Capital Addition, including (1) the reasonable fees and expenses of their respective legal counsel; (2) printing
expenses; (3) filing, registration and recording taxes and fees; (4) documentary stamp and similar taxes; (5) title insurance
charges and appraisal fees; (6) rating agency fees; and (7) commitment fees charged by any Person advancing or offering to advance
any portion of the financing for such Capital Addition.

 

Capital Reserve Fund:
As defined in Section 21.1.1.

 

Carrus HC: Carrus
Healthcare, LLC, a Texas limited liability company.

 

Carrus Rehab: Carrus
Rehabilitation Hospital, LLC, a Texas limited liability company.

 

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

 

Collateral: As defined
in Section 16.7.1.

 

Commencement Date:
The date hereof.

 

Condemnation: The
exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor or a voluntary sale or transfer by
Landlord to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending.

 

    	 	- 3 -	 

     

    

 

Condemnor: Any public
or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

Controlling Person:
Any (i) Person(s) that, directly or indirectly (including through one or more intermediaries), controls Tenant and would be deemed
an Affiliate of Tenant, including any partners, shareholders, principals, members, trustees and/or beneficiaries of any such Person(s)
to the extent the same control Tenant and would be deemed an Affiliate of Tenant, and (ii) Person(s) that controls, directly or
indirectly (including through one or more intermediaries), any other Controlling Person(s) and which would be deemed an Affiliate
of any such Controlling Person(s).

 

Coverage Requirement.
A minimum EBITDARM/Rent ratio from Tenant operations of 2:1, based on a trailing twelve (12) months.

 

CPI
Increase: The percentage increase from (a) the CPI in effect two months prior to the Commencement Date; to (b) the CPI in effect
two months prior to the applicable anniversary of the Commencement Date. “CPI” shall mean the monthly index
of the “All Items” Consumer Price Index for Urban Consumers, 1982-84=100, compiled by the U.S. Department of Labor,
Bureau of Labor Statistics. If at the time of such computation no CPI is compiled and published by any agency of the federal government,
then the statistics reflecting cost of living increases for the periods specified above, as compiled by an institution, organization
or individual generally recognized as an authority by financial and insurance institutions, shall be used as a basis for such computations.

 

Date of Taking:
The date the Condemnor has the right to possession of the property being condemned.

 

EBITDARM: For any
period, NOI, adjusted to add thereto, to the extent allocable to the Premises, without duplication, (i) interest expense;
(ii) income tax expense; (iii) depreciation and amortization expense; (iv) rental expense; and (v) management
fee expenses, in each case determined in accordance with GAAP, to the extent applicable.

 

Environmental Costs:
As defined in Section 37.4.

 

Environmental Laws:
Any and all federal, state, municipal and local laws, statutes, ordinances, rules, regulations, guidances, policies, orders, decrees
and/or judgments, whether statutory or common law, as amended from time to time, now or hereafter in effect, or promulgated, pertaining
to the environment, public health and safety and industrial hygiene, including the use, generation, manufacture, production, storage,
release, discharge, disposal, handling, treatment, removal, decontamination, clean-up, transportation or regulation of any Hazardous
Substance, including the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the Comprehensive Environmental
Response Compensation and Liability Act, the Resource Conservation and Recovery Act, the Federal Insecticide, Fungicide, and Rodenticide
Act, the Safe Drinking Water Act and the Occupational Safety and Health Act.

 

Event of Default:
As defined in Section 16.1.

 

    	 	- 4 -	 

     

    

 

Extended Term(s):
Two (2) consecutive terms of ten (10) years each.

 

Fair Market Value:
The fair market value of the Premises, or applicable portion(s) thereof, determined in accordance with the appraisal procedures
set forth in Section 34 and this definition. Fair Market Value shall be obtained by assuming that the Premises, or applicable portion(s)
thereof, are unencumbered by this Lease. Fair Market Value shall also be the higher value obtained by valuing the Premises, or
applicable portion(s) thereof, for their highest and best use or as a fully-permitted facility operated in accordance with the
provisions of this Lease. In addition, the negative value of (i) any deferred maintenance or other items of repair or replacement
of the Premises; (ii) any then current or prior licensure or certification violations and/or admissions holds; and (iii) any other
breach or failure of Tenant to perform or observe its obligations hereunder, shall not be taken into account in determining Fair
Market Value; rather, the Premises shall be deemed to be in the condition required by this Lease (i.e., reasonably good order and
repair) and Tenant shall at all times be deemed to have operated the Premises in compliance with and to have performed all obligations
of the Tenant under this Lease.

 

Fiscal Year: Tenant’s
Fiscal Year, which now ends December 31 in each calendar year, with the new Fiscal Year beginning on the following January 1. If
Tenant changes its Fiscal Year at any time during the Term, Tenant shall promptly give Landlord notice specifying such change.
If any such change is made, all reporting and accounting procedures set forth in this Lease shall continue to be made in accordance
with GAAP. Any appropriate adjustments to such procedures as a result of such change shall be made upon the mutual consent of Landlord
and Tenant. No such change or adjustment shall alter the Term, and Tenant shall bear any accounting costs reasonably incurred by
Landlord as a result of any such change or adjustment.

 

Fixed Term: The
period of time commencing on the Commencement Date and ending at 11:59 p.m. where the Premises are located on the expiration of
the twentieth (20th) Lease Year.

 

Fixtures: As defined
in Section 1.1(d).

 

Follow-On Capital Coverage
Requirement. A minimum EBITDARM/Post Follow-On Capital Rent ratio from Tenant operations of 2.25:1, based on a trailing twelve
(12) months.

 

Follow-On Capital Payment:
The least of (a) the increase in value of the Premises following the Build-out Improvements, which shall be determined by
a new appraisal of the Premises obtained at Tenant’s expense that is acceptable to Landlord in its sole discretion, minus
the Acquisition Price and the Build-out Allowance; (b) $5,000,000.00; and (c) the maximum amount that would satisfy the
Follow-On Capital Coverage Requirement.

 

GAAP: Generally
accepted accounting principles consistently applied.

 

Guarantors: Carrus
HC, THP and Carrus Rehab.

 

Guaranties: The
Guaranties of even date herewith executed by Guarantors.

 

Handling: As defined
in Section 37.4.

 

    	 	- 5 -	 

     

    

 

Hazardous Substances:
Collectively, any medical waste, petroleum, petroleum product or byproduct or any substance, material or waste regulated or listed
pursuant to any Environmental Law.

 

Impositions: Collectively,
all taxes, including capital stock, franchise and other state taxes, ad valorem, sales, use, single business, gross receipts, transaction
privilege, rent or similar taxes; assessments including assessments for public improvements or benefits, whether or not commenced
or completed prior to the date hereof and whether or not to be completed within the Term; ground rents; water, sewer and other
utility levies and charges; excise tax levies; fees including license, permit, inspection, authorization and similar fees; and
all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen,
of every character in respect of the Premises and/or the Rent and all interest and penalties thereon attributable to any failure
in payment by Tenant which at any time prior to, during or in respect of the Term hereof may be assessed or imposed on or in respect
of or be a lien upon (i) Landlord or Landlord’s interest in the Premises, (ii) the Premises or any parts thereof or any rent
therefrom or any estate, right, title or interest therein, or (iii) any occupancy, operation, use or possession of, or sales from
or activity conducted on or in connection with the Premises or the leasing or use of the Premises or any parts thereof; provided,
however, that the following shall be expressly excluded from the definition of “Impositions”: (1) any tax based on
net income (whether denominated as a franchise or capital stock or other tax) imposed on Landlord, (2) any tax imposed with respect
to the sale, exchange or other disposition by Landlord of the Premises or the proceeds thereof, (3) any recording taxes, indebtedness
taxes or other taxes imposed with respect to or in connection with any of the Mortgages, and (4) any principal or interest
on any indebtedness on the Premises for which Landlord is the obligor, except to the extent that any tax, assessment, tax levy
or charge, of the type described in any of clauses (1), (2) or (3) above is levied, assessed or imposed in lieu of or as a substitute
for any tax, assessment, levy or charge which is otherwise included in this definition of an “Imposition.”

 

Insurance Requirement:
The terms of any insurance policy required by this Lease and all requirements of the issuer of any such policy and of any insurance
board, association, organization or company necessary for the maintenance of any such policy.

 

Intangible Property:
All accounts, proceeds of accounts, rents, profits, income or revenues derived from the use of rooms or other space within the
Premises or the providing of services in or from the Premises; documents, chattel paper, instruments, contract rights, deposit
accounts, general intangibles, commercial tort claims and causes of action, now owned or hereafter acquired by Tenant (including
any right to any refund of any Impositions) arising from or in connection with Tenant’s operation or use of the Premises;
all licenses and permits now owned or hereinafter acquired by Tenant which are necessary or desirable for Tenant’s use of
the Premises for the Primary Intended Use, including, if applicable, any certificate of need or similar certificate; the right
to use any trade name or other name associated with the Premises; and any and all third-party provider agreements (including Medicare
and Medicaid, if applicable),

 

Investment Amount:
The sum of Acquisition Price, plus all Capital Addition Costs funded by Landlord, if any.

 

Land: As defined
in Section 1.1(a).

 

    	 	- 6 -	 

     

    

 

Lease: As defined
in the preamble.

 

Lease Year: Each
period of twelve (12) full calendar months from and after the Commencement Date, unless the Commencement Date is a day other than
the first (1st) day of a calendar month, in which case the first Lease Year shall be the period commencing on the Commencement
Date and ending on the last day of the twelfth (12th) month following the month in which the Commencement Date occurs and each
subsequent Lease Year shall be each period of twelve (12) full calendar months after the last day of the prior Lease Year; provided,
however, that the last Lease Year during the Term may be a period of less than twelve (12) full calendar months and shall end on
the last day of the Term.

 

Leased Improvements:
As defined in Section 1.1(b).

 

Legal Requirements:
(i) All federal, state, county, municipal and other governmental statutes, laws (including common law and Environmental Laws),
rules, policies, guidance, codes, orders, regulations, ordinances, permits, licenses, covenants, conditions, restrictions, judgments,
decrees and injunctions, including those affecting the Premises, Tenant’s Personal Property or the construction, use or alteration
thereof, whether now or hereafter enacted and in force, including any which may (1) require repairs, modifications or alterations
in or to the Premises and all Tenant’s Personal Property, (2) in any way adversely affect the use and enjoyment thereof,
or (3) regulate the transport, handling, use, storage or disposal or require the cleanup or other treatment of any Hazardous Substance,
and (ii) all covenants, agreements, restrictions, and encumbrances either now or hereafter of record or known to Tenant (other
than encumbrances created by Landlord without the consent of Tenant except as otherwise expressly permitted hereunder) affecting
the Premises.

 

Landlord: As defined
in the preamble.

 

Landlord’s Personal
Property: As defined in Section 1.1(e)

 

Letter of Credit Requirements:
As defined in Section 21.3.

 

Manager: Carrus
HC.

 

Management Agreement:
Collectively, that certain Management Agreement dated June 30, 2017, between THP and Carrus HC and that certain Management Agreement
dated June 30, 2017, between Carrus Rehab and Carrus HC.

 

Minimum Net Worth:
Four Million Dollars ($4,000,000.00), consisting of any combination of demonstrable tangible and fixed assets of Tenant and Guarantors
collectively, including without limitation impounds and reserves required by Landlord, the Capital Reserve Fund and the Rent Reserve
Fund, all as determined in accordance with GAAP.

 

Minimum Rent: The
amount of minimum rent as determined pursuant to Section 3.1.

 

Minimum Required Liquidity:
Initially, six (6) months of Rent. Once the Adjusted EBITDARM/Rent ratio from Tenant operations equals at least 2.5:1 for
two consecutive Quarters, the Minimum Required Liquidity shall be reduced to three (3) months of Rent.

 

    	 	- 7 -	 

     

    

 

Mortgage: Any mortgage,
deed of trust or other security agreement securing any indebtedness or any other encumbrance placed on any Premises by Landlord.

 

Mortgagee: The holder
of any Mortgage.

 

Mortgage Documents:
With respect to each Mortgage and Mortgagee, the applicable Mortgage, loan or credit agreement, lease, note, collateral assignment
instruments, guarantees, indemnity agreements and other documents or instruments evidencing, securing or otherwise relating to
the loan made, credit extended, lease or other financing vehicle pursuant thereto.

 

Mortgage Reserve Account:
As defined in Section 36.3.2.

 

NOI: The total revenues
of the Tenant generated solely from the Premises for a given period less all operating expenses of the Tenant for such period.
For purposes of this definition, the term “operating expenses” shall include (i) management fees equal to the greater
of (A) 5% of gross revenues of Tenant, or (B) the actual management fees charged by the Manager (which shall in no event exceed
6% of gross revenues of Tenant), and (ii) replacement reserves equal to $75,178.00 per annum, but shall not include depreciation,
amortization, impairments or interest expense.

 

Occupancy Arrangement:
Any sublease, license or other arrangement with a Person for the right to use, occupy or possess any portion of the Premises.

 

Occupant: Any Person
having rights of use, occupancy or possession under an Occupancy Arrangement.

 

Officer’s Certificate:
A certificate of Tenant signed by an officer duly authorized to so sign on Tenant’s behalf.

 

Overdue Rate: The
lesser of (a) the Prime Rate, as published in The Wall Street Journal from time to time, plus four percent (4%) per annum,
or (b) the maximum rate of interest allowed to be charged by applicable law.

 

Payment Date: Any
due date for the payment of the installments of Minimum Rent or any other sums payable under this Lease.

 

Person: Any individual,
corporation, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other form of entity.

 

Personal Property:
All machinery, furniture and equipment, including phone systems and computers, trade fixtures, inventory (including raw materials,
work in process and finished goods), supplies and other personal property used or useful in the use of the Premises for their Primary
Intended Use, other than Fixtures.

 

Post Follow-On Capital
Rent. The increased Rent on account of the Follow-On Capital Payment, as provided in Section 10.1.4.

 

    	 	- 8 -	 

     

    

 

Premises: As defined
in Section 1.1.

 

Primary Intended Use:
The operation of a licensed and Medicare certified long term care hospital with not less than 16 beds and a licensed and a Medicare
certified inpatient rehabilitation hospital with not less than 24 beds (collectively, the “Hospitals”) and such other
uses necessary or incidental to such use.

 

Purchase Contract:
That certain Purchase Agreement dated May 17, 2017, by and between Tenant and Landlord’s Affiliate.

 

Qualified Capital Expenditures:
Expenditures capitalized (as opposed to expensed) in accordance with GAAP on the books of Tenant for any of the following: replacement
of furniture, fixtures and equipment, including refrigerators, ranges, major appliances, bathroom fixtures, doors (exterior and
interior), central air conditioning and heating systems (including cooling towers, water chilling units, furnaces, boilers and
fuel storage tanks) and replacement of siding; roof replacements, including replacements of gutters, downspouts, eaves and soffits;
major repairs and replacements of plumbing and sanitary systems; overhaul of elevator systems; repaving, resurfacing and sealcoating
of sidewalks, parking lots and driveways; repainting of entire building exterior and normal maintenance and repairs needed to maintain
the quality and condition of the Premises in the market in which it operates, but excluding any other “alterations”
as defined in Section 10.1.

 

Quarter: During
each applicable Fiscal Year, the first three (3) calendar month period commencing on the first (1st) day of such Fiscal Year and
each subsequent three (3) calendar month period within such Fiscal Year

 

Related Rights:
As defined in Section 1.1(c).

 

Rent: Collectively,
Minimum Rent, Additional Charges and all other amounts payable under this Lease.

 

Rent Reserve Fund:
As defined in Section 21.1.

 

Return Rate. Eight
and eight-tenths percent (8.80%).

 

State: The State
or Commonwealth in which the Premises are located.

 

Subsidiaries: Corporations,
partnerships, limited liability companies, business trusts or other legal entities with respect to which a Person owns, directly
or indirectly (including through one or more intermediaries), more than fifty percent (50%) of the voting stock or partnership,
membership or other equity interest, respectively.

 

Subtenants: THP
and Carrus Rehab.

 

Tenant: As defined
in the preamble.

 

Tenant’s Personal
Property: The Personal Property other than Landlord’s Personal Property.

 

    	 	- 9 -	 

     

    

 

Term: The Fixed
Term and any Extended Terms, unless earlier terminated pursuant to the provisions hereof.

 

THP: Texoma Hospital
Partners, LLC, a Texas limited liability company.

 

Unsuitable for Its Primary
Intended Use: A state or condition of the Premises such that by reason of Condemnation, in the good faith judgment of Landlord
and Tenant, the Premises cannot be operated on a commercially practicable basis for the Primary Intended Use.

 

SECTION
3

 

		3.1	Rent.

 

3.1.1           Method
and Timing of Payment. Tenant shall pay to Landlord in lawful money of the United States of America which shall be legal tender
for the payment of public and private debts, without offset or deduction, the amounts set forth hereinafter as Minimum Rent during
the Term. Payments of Minimum Rent shall be made by wire transfer of funds initiated by Tenant to Landlord’s account or to
such other Person as Landlord from time to time may designate in writing. For the entire Fixed Term and each Extended Term, Tenant
shall pay to Landlord Minimum Rent monthly, in advance, on or before the first (1st) day of each calendar month. The first monthly
payment of Minimum Rent shall be payable on the Commencement Date (prorated as to any partial calendar month at the beginning of
the Term).

 

3.1.2           Minimum
Rent for First Lease Year. For the period from the Commencement Date and through and including the expiration of the first
(1st) Lease Year, annual “Minimum Rent” shall initially be in an amount equal to Two Million Three Hundred
Forty-Six Thousand One Hundred Thirty-Nine and 85/100 Dollars ($2,346,139.85), which is based on the Return Rate on the Acquisition
Price. The annual Minimum Rent shall be payable in twelve (12) equal monthly installments (each such installment is referred to
herein as “monthly Minimum Rent”) and shall be increased by the same percentage of any Capital Addition Costs funded
by Landlord, if any.

 

3.1.3           Minimum
Rent Increases during Fixed Term. At the commencement of the second (2nd) Lease Year of the Fixed Term and at the
commencement of each successive Lease Year thereafter during the Fixed Term, the monthly Minimum Rent shall increase to an amount
equal to one hundred two and five tenths percent (102.5%) of the monthly Minimum Rent payable during the last full month of the
previous Lease Year.

 

3.1.4           Minimum
Rent during Extended Terms. At the commencement of each Lease Year during the Extended Term, monthly Minimum Rent shall be
adjusted to an amount equal to Fair Market Rent, as provided in Section 19.2.

 

    	 	- 10 -	 

     

    

 

3.2           Additional
Charges. In addition to the Minimum Rent, (i) Tenant shall also pay and discharge as and when due and payable all other amounts,
liabilities, obligations and Impositions which Tenant assumes or agrees to pay under this Lease; and (ii) in the event of any failure
on the part of Tenant to pay any of those items referred to in clause (i) above, Tenant shall also promptly pay and discharge every
fine, penalty, interest and cost which may be added for non-payment or late payment of such items (the items referred to in clauses
(i) and (ii) above being referred to herein collectively as the “Additional Charges”), and Landlord shall have the
same remedies in the case of non-payment of the Additional Charges as in the case of non-payment of the Minimum Rent.

 

3.3           Late
Payment of Rent. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent will cause Landlord to incur costs
not contemplated hereunder, the amount of which will be difficult to ascertain. Accordingly, if any installment of Rent shall not
be paid within five (5) business days after its due date, Tenant will pay Landlord on demand a late charge equal to the lesser
of (a) five percent (5%) of the amount of such installment per month until paid, or (b) the maximum amount permitted
by law. The parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord will incur
by reason of late payment by Tenant. The parties further agree that such late charge is rent and not interest and such assessment
does not constitute a lender or borrower/creditor relationship between Landlord and Tenant. In addition, the amount unpaid, including
any late charges, shall bear interest at the Overdue Rate compounded monthly from the due date of such installment to the date
of payment thereof, and Tenant shall pay such interest to Landlord on demand. The payment of such late charge or such interest
shall not constitute waiver of, nor excuse or cure, any default under this Lease, nor prevent Landlord from exercising any other
rights and remedies available to Landlord.

 

3.4           Net
Lease. This Lease is and is intended to be what is commonly referred to as a “net, net, net” or “triple net”
lease. The Rent shall be paid absolutely net to Landlord, so that this Lease shall yield to Landlord the full amount or benefit
(as applicable) of the installments of Minimum Rent and Additional Charges throughout the Term.

 

SECTION
4

 

		4.1	Impositions.

 

4.1.1           Subject
to Section 4.4, Tenant shall pay, or cause to be paid, all Impositions before any fine, penalty, interest or cost may be added
for nonpayment. Subject to Section 4.4, Tenant shall make such payments directly to the taxing authorities where feasible, and
promptly furnish to Landlord copies of official receipts or other satisfactory proof evidencing such payments, but in no event
later than thirty (30) days prior to the date the same would become delinquent.

 

4.1.2           Landlord
shall prepare and file all tax returns and reports as may be required by Legal Requirements with respect to Landlord’s net
income, gross receipts, franchise taxes and taxes on its capital stock and shall pay all taxes associated with such tax returns,
and Tenant shall prepare and file all other tax returns and reports as may be required by Legal Requirements with respect to or
relating to the Premises and Tenant’s Personal Property and shall pay all taxes associated with such tax returns.

 

    	 	- 11 -	 

     

    

 

4.1.3           Landlord
and Tenant shall, upon request of the other, provide such data as is maintained by the party to whom the request is made with respect
to the Premises as may be necessary to prepare any required returns and reports to taxing authorities. If any property covered
by this Lease is classified as personal property for tax purposes, Tenant shall file all personal property tax returns in such
jurisdictions where it must legally so file. Landlord, to the extent it possesses the same, and Tenant, to the extent it possesses
the same, shall provide the other party, upon request, with cost and depreciation records necessary for filing returns for any
property so classified as personal property. Where Landlord is legally required to file personal property tax returns and to the
extent practicable, Tenant shall be provided with copies of assessment notices indicating a value in excess of the reported value
in sufficient time for Tenant to file a protest.

 

4.1.4           Subject
to the conditions set forth in Section 12.1, Tenant may, upon notice to Landlord, at Tenant’s option and at Tenant’s
sole cost and expense, protest, appeal, or institute such other proceedings as Tenant may deem appropriate to effect a reduction
of real estate or personal property assessments and Landlord, at Tenant’s expense as aforesaid, shall reasonably cooperate
with Tenant in such protest, appeal, or other action but at no cost or expense to Landlord.

 

4.1.5           Landlord
shall give prompt notice to Tenant of all Impositions payable by Tenant hereunder of which Landlord has actual knowledge, but Landlord’s
failure to give any such notice shall in no way diminish Tenant’s obligations hereunder to pay such Impositions.

 

4.1.6           Impositions
imposed or assessed in respect of the tax-fiscal period during which the Term commences or terminates shall be adjusted and prorated
between Landlord and Tenant, whether or not such Imposition is imposed or assessed before or after such commencement or termination,
and Tenant’s obligation to pay its prorated share thereof shall survive termination of this Lease.

 

4.2          Utility
Charges. Tenant shall pay or cause to be paid all charges for electricity, power, gas, oil, water and other utilities used
in the Premises. Tenant shall also pay or reimburse Landlord for all costs and expenses of any kind whatsoever which at any time
with respect to the Term hereof may be imposed against Landlord, Tenant and/or the Premises by reason of any of the easements,
covenants, conditions and/or restrictions affecting or benefiting the Premises and/or any part(s) thereof, or with respect to easements,
licenses or other rights over, across or with respect to any adjacent or other property which benefits the Premises, including
any and all costs and expenses associated with any utility, drainage and parking easements.

 

4.3         Insurance
Premiums. Tenant shall pay or cause to be paid all premiums for the insurance coverage required to be maintained by Tenant
hereunder.

 

    	 	- 12 -	 

     

    

 

4.4         Impound
Account.

 

4.4.1           Notwithstanding
any provision of this Lease to the contrary, at any time during the Term, Landlord may elect to pay Impositions directly and/or
carry insurance pursuant to Section 13 below and require that Tenant make monthly deposits for Landlord’s insurance premiums.
If Landlord makes such election, Landlord shall notify Tenant thereof, and Tenant shall pay to Landlord all Impositions and/or
insurance premiums as provided below.

 

4.4.2           Tenant
shall deposit into an impound account as directed by Landlord (the “Impound Account”), (a) at the time
each payment of Minimum Rent is due by Tenant under this Lease, an amount equal to one-twelfth of (i) Tenant’s estimated
annual Impositions relating to real estate and personal property taxes, of every kind and nature, required pursuant to Section
4.1, and (ii) the estimated amount of insurance premiums required to procure the insurance coverage required to be maintained (or
paid for) by Tenant pursuant to Section 13 below; and (b) within thirty (30) days following Landlord’s election under
Section 4.4.1, such amounts, when considered with the monthly payments to be made by Tenant pursuant to this Section, as may
reasonably be required to pay the full amount of such Impositions and insurance premiums at the time the same become next due,
all as reasonably determined by Landlord. The estimated amounts described in clauses (a) and (b) of the preceding sentence shall
be established by Landlord in its reasonable discretion and may be adjusted from time to time by Landlord in its reasonable discretion.
The cost of administering the Impound Account shall be paid by Tenant.

 

4.4.3           At
the time any payment of Impositions and/or insurance premiums for the insurance coverages required pursuant to Section 13 below
is due, and upon request by Tenant, accompanied by copies of all tax bills, invoices or other evidence reasonably satisfactory
to Landlord of the amounts so due, Landlord shall apply funds on deposit with Landlord in the Impound Account to the appropriate
amount due to the appropriate taxing authority and/or insurance provider: provided, however, that (a) Landlord shall have
no obligation (i) to deliver funds in excess of the total amount of funds held in the Impound Account, or (ii) to apply sums
deposited for taxes to payment of insurance or sums deposited for insurance to payment of taxes, (b)  if the deposits in the
Impound Account are insufficient to pay the amount due, Tenant shall be obligated to fund any shortfall upon demand; and (c) upon
the occurrence of an Event of Default, Landlord shall not be obligated to make such payments, but may instead apply funds in the
Impound Account to payment of Tenant’s other obligations under this Lease in such order as Landlord may determine.

 

4.4.4           No
amount deposited with Landlord or into an Impound Account established pursuant to this Section shall be or be deemed to be escrow
or trust funds. At Landlord’s option and in Landlord’s discretion, any amounts deposited with Landlord may be either
held in a separate account or commingled by Landlord with the general funds of Landlord. Tenant shall not be entitled to interest
on funds deposited with Landlord or contained in any Impound Account established pursuant to this Section. Any amounts deposited
with Landlord or contained in any Impound Account established pursuant to this Section shall be solely for the protection of Landlord
and the Premises and entail no responsibility on Landlord’s part beyond the application of such amounts as provided above.

 

    	 	- 13 -	 

     

    

 

4.4.5           In
the event of a transfer of Landlord’s interest in the Premises or an assignment of Landlord’s interest in this Lease,
Landlord shall have the right to transfer to the transferee the amounts deposited by Tenant in the Impound Account, and thereupon
without any further agreement between the parties, Landlord shall be released by Tenant from all liability therefor, and it is
agreed that the provisions hereof shall apply to every transfer or assignment of such amounts to such a transferee/assignee. The
amounts deposited by Tenant with Landlord or in any Impound Account established by Landlord pursuant to this Section may also be
assigned as security in connection with a Mortgage.

 

4.4.6           Any
refund due from any taxing authority in respect of any Imposition funded from the Impound Account shall be paid over to Tenant
if no Event of Default shall have occurred and this Lease has terminated. Otherwise, any such other refund shall be paid over to,
or retained by, Landlord and applied (a) if no Event of Default exists and this Lease has not terminated, to the payment future
Impositions; or (b) if an Event of Default exists, to the payment of Tenant’s obligations under this Lease in such order
of priority as Landlord shall determine.

 

SECTION
5

 

5.1           No
Termination, Abatement, etc. Except as otherwise specifically provided in this Lease, Tenant shall remain bound by this Lease
in accordance with its terms and shall not seek or be entitled to any abatement, deduction, deferment or reduction of Rent, or
set-off against the Rent. Except as expressly set forth in this Lease, the respective obligations of Landlord and Tenant shall
not be affected by reason of damage to or destruction of the Premises, Condemnation of the Premises, any claim that Tenant has
or might have against Landlord, or any bankruptcy, insolvency, reorganization or other proceedings affecting Landlord or any assignee
or transferee of Landlord, or for any other cause, whether similar or dissimilar to any of the foregoing, other than a discharge
of Tenant from any such obligations as a matter of law. Tenant hereby specifically waives all rights arising from any occurrence
whatsoever that may now or hereafter be conferred upon it by law (a) to modify, surrender or terminate this Lease or quit or surrender
the Premises and/or any part(s) thereof; or (b) which may entitle Tenant to any abatement, reduction, suspension or deferment of
the Rent or other sums payable by Tenant hereunder, except as otherwise specifically provided in this Lease. The obligations of
Landlord and Tenant hereunder shall be separate and independent covenants and agreements and the Rent and all other sums payable
by Tenant hereunder shall continue to be payable in all events unless the obligations to pay the same shall be terminated pursuant
to the express provisions of this Lease or by any termination of this Lease other than by reason of an Event of Default.

 

SECTION
6

 

6.1           Ownership
of the Premises. Tenant acknowledges that the Premises are the property of Landlord and that Tenant has only the right to the
exclusive possession and use of the Premises upon the terms and conditions of this Lease. Upon the expiration or earlier termination
of this Lease, Tenant shall, at its expense, repair and restore the Premises to the condition required by Section 9.1.4.

 

    	 	- 14 -	 

     

    

 

6.2           Personal
Property. During the Term, Tenant shall, as necessary and at its expense, install, affix or assemble or place on any parcels
of the Land or in any of the Leased Improvements, any items of Tenant’s Personal Property and replacements thereof which
shall be the property of and owned by Tenant. Except as provided in Section 16.7, Landlord shall have no rights to Tenant’s
Personal Property during the Term. Tenant shall insure that Subtenants provide and maintain during the entire Term all Personal
Property necessary in order to operate the Hospitals in compliance with all licensure and certification requirements, all Legal
Requirements and all Insurance Requirements and otherwise in accordance with customary practice in the industry for the Primary
Intended Use. In addition, Tenant shall be required to replace, modify, alter or substitute any of Landlord’s Personal Property
that has become obsolete or worn out with personal property of equal or better quality. Any such replacements, modifications, alterations
or substitutions (whether or not upgrades thereof) shall become Landlord’s Personal Property.

 

6.3           Transfer
of Capital Additions to Landlord. Upon the expiration or earlier termination of this Lease (unless such termination is the
result of Tenant’s purchase of the Premises), all Capital Additions not owned by Landlord shall become the property of Landlord,
free of any encumbrance, and Tenant shall execute all documents and take any actions reasonably necessary to evidence such ownership
and discharge any encumbrance. Notwithstanding anything to the contrary in this Lease, upon the expiration or earlier termination
of this Lease, Landlord shall not be obligated to reimburse Tenant for any replacements, rebuildings, alterations, additions, substitutions,
and/or improvements that are surrendered as part of or with the Premises.

 

SECTION
7

 

7.1           Condition
of the Premises. Tenant acknowledges that it has been managing or operating the Premises and has knowledge of the condition
of the Premises. Tenant is leasing the Premises “AS IS” in its present condition. Tenant waives any claim or action
against Landlord in respect of the condition of the Premises including any defects or adverse conditions not discovered or otherwise
known by Tenant as of the date hereof. LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE PREMISES
OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, OR AS
TO THE NATURE OR QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, OR THE EXISTENCE OF ANY HAZARDOUS SUBSTANCE, IT BEING AGREED THAT
ALL SUCH RISKS, LATENT OR PATENT, ARE TO BE BORNE SOLELY BY TENANT INCLUDING ALL RESPONSIBILITY AND LIABILITY FOR ANY ENVIRONMENTAL
REMEDIATION AND COMPLIANCE WITH ALL ENVIRONMENTAL LAWS.

 

7.2           Use
of the Premises.

 

7.2.1           Tenant
covenants that it will obtain and maintain, or it will ensure that Subtenants, as applicable, obtain and maintain all authorizations
and approvals needed to use and operate the Premises for such the Primary Intended Use and any other use conducted on the Premises
as may be permitted from time to time hereunder in accordance with Legal Requirements including applicable licenses, provider agreements,
permits, and Medicare and/or Medicaid certification (if applicable).

 

    	 	- 15 -	 

     

    

 

7.2.2           Tenant
shall use or cause to be used the Premises and the improvements thereon for the Primary Intended Use. Tenant shall not use the
Premises or any part(s) thereof for any other use without the prior written consent of Landlord, which consent shall not be unreasonably
withheld, conditioned or delayed.

 

7.2.3           Tenant
shall operate continuously the entire Premises in accordance with the Primary Intended Use. Tenant shall devote the entirety of
the Premises to the Primary Intended Use, except for areas reasonably required for office, storage space or ancillary service uses
incidental to the Primary Intended Use. Tenant shall ensure that Subtenants do not modify the services offered or take any other
action (e.g., removing patients or directing patients, or prospective patients, to another facility) if such modification of services
or the taking of such action would materially reduce gross revenues from the Premises or the Fair Market Value of the Premises.
Tenant shall ensure that Subtenants at all times maintain an adequate staff for the service of its patients, in each case assuming
an occupancy and/or use level that is not less than the average occupancy and/or use level for similar facilities in the State.
Tenant shall employ its best judgment, efforts and abilities to ensure that Subtenants operate the entirety of the Premises in
such a manner so as to enhance the reputation and attractiveness of the Premises.

 

7.2.4           Tenant
shall ensure that Subtenants conduct their business at the Premises in conformity with the standards of patient care practice provided
in similar facilities in the State.

 

7.2.5           Tenant
shall not commit or suffer to be committed any waste on the Premises or cause or permit any nuisance to exist thereon or with respect
thereto.

 

7.2.6           Tenant
shall neither suffer nor permit the Premises or any part(s) thereof, or Tenant’s Personal Property, to be used in such a
manner as (a) might reasonably tend to impair Landlord’s title thereto or to any portion thereof or (b) may make possible
a claim of adverse use or possession, or an implied dedication of the Premises or any part(s) thereof.

 

7.2.7           There
shall be no change in the holder of any license for the Premises without Landlord’s prior written consent, which consent
shall not be unreasonably withheld, conditioned or delayed in connection with an approved Transfer.

 

7.3           Landlord
Grant of Easements. Landlord shall, from time to time so long as no Event of Default has occurred and is continuing, at the
request of Tenant and at Tenant’s cost and expense, but subject to the approval of Landlord, (a) grant easements and other
rights in the nature of easements; and (b) release existing easements or other rights in the nature of easements which are for
the benefit of the Premises. Except as set forth in Section 36.1 with respect to granting Mortgages, or unless otherwise requested
by Tenant, Landlord shall not grant any easements or impose any covenants, conditions or restrictions on the Premises without Tenant’s
consent, which consent shall not be unreasonably withheld.

 

    	 	- 16 -	 

     

    

 

7.4           Preservation
of Value. Tenant acknowledges that a fair return to Landlord on its investment in the Premises is dependent, in part, on the
concentration on the Premises during the Term of the core community business of Tenant and its Affiliates in the geographical area
of the Premises. Tenant further acknowledges that diversion of patients, from the Premises to other facilities or institutions
and/or reemployment by Tenant of management or supervisory personnel working at the Premises following the expiration or earlier
termination of this Lease at other facilities or institutions owned, operated or managed, whether directly or indirectly, by Tenant
or its Affiliates could have a material adverse impact on the value and utility of the Premises. Accordingly, Landlord and Tenant
agree as follows:

 

7.4.1           During
the Term and for a period of one (1) year thereafter, neither Tenant nor any of its Affiliates, directly or indirectly, shall operate,
own, manage or have any interest in or otherwise participate in or receive revenues from any other facility or institution providing
services or goods similar to those provided in connection with the Premises and its Primary Intended Use, within a twenty (20)
mile radius outward from the outside boundary of the Premises. All distances shall be measured on a straight line rather than on
a driving distance basis. In the event that any portion of such other facility or institution is located within such restricted
area, the entire facility or institution shall be deemed located within such restricted area.

 

7.4.2           For
a period of two (2) years following any termination of this Lease for an Event of Default by Tenant, neither Tenant nor any of
its Affiliates shall hire, engage or otherwise employ any management or supervisory personnel working solely on or solely in connection
with the Premises.

 

7.4.3           Except
as required for medically appropriate reasons and except as may be necessary in connection with a casualty, prior to and after
the expiration or earlier termination of this Lease, Tenant shall not recommend or solicit the removal or transfer of any patients
from the Premises to any other facility or institution.

 

7.4.4           Tenant
shall not reduce or allow to be reduced, either permanently or temporarily, the number of licensed beds at the Premises by more
than the greater of (a) five (5) beds; or (b) ten percent (10%) from that number set forth in the definition of the Primary Intended
Use.

 

7.5          Management.
Without the prior consent of Landlord, Tenant will not change the Manager or terminate, modify or amend the Management Agreement.
All management fees paid under the Management Agreement shall be subordinate to Rent. Rent will be paid and received, and current
under this Lease, before and until any management fees are distributed to the Manager.

 

    	 	- 17 -	 

     

    

 

SECTION
8

 

8.1          Compliance
with Legal and Insurance Requirements, Instruments, etc. Subject to Section 12.1 regarding permitted contests, Tenant or Subtenants,
as applicable, at their expense, shall at all times (a) comply with all Legal Requirements and Insurance Requirements regarding
the use, operation, maintenance, repair and restoration of the Premises and Tenant’s Personal Property, whether or not compliance
therewith may require structural changes in any of the Leased Improvements; and (b) procure, maintain and comply with all licenses,
certificates of need, provider agreements and other authorizations required for the use of the Premises and Tenant’s Personal
Property for the applicable Primary Intended Use and for the proper erection, installation, operation and maintenance of the Premises
and Tenant’s Personal Property. If, after thirty (30) days of receiving notice from Landlord, Tenant fails to comply with
the provisions of this Section, Landlord may, but shall not be obligated to, enter upon the Premises and make all Capital Additions
and take such actions and incur such costs and expenses to effect such compliance as it deems advisable to protect its interest
in the Premises, and Tenant shall reimburse Landlord for all costs and expenses incurred by Landlord in connection with such actions.
Notwithstanding the foregoing, in no event shall any of representative of Landlord be permitted to enter into any rooms in which
patients are present or enter into any area of the Hospitals that Tenant or Subtenants reasonably designates as a secured area,
including, without limitation, the pharmacy unless escorted by a representative of Tenant or Subtenants. Tenant covenants and agrees
that none of the Premises, Tenant’s Personal Property or any Capital Additions shall be used for any unlawful purpose.

 

SECTION
9

 

9.1          Maintenance
and Repair.

 

9.1.1           Tenant,
at its expense, shall maintain the Premises and the Tenant’s Personal Property in good order and repair, and, with reasonable
promptness, make all necessary and appropriate repairs thereto of every kind and nature, whether interior or exterior, structural
or non-structural, ordinary or extraordinary, foreseen or unforeseen or arising by reason of a condition existing prior to the
Commencement Date. All repairs shall be at least equivalent in quality to the original work. Tenant will not take or omit to take
any action the taking or omission of which might impair the value or the usefulness of the Premises for the Primary Intended Use.

 

9.1.2           Landlord
shall not under any circumstances be required to (a) build or rebuild any improvements on the Premises; (b) make any repairs, replacements,
alterations, restorations or renewals of any nature to the Premises, whether ordinary or extraordinary, structural or non-structural,
foreseen or unforeseen, or to make any expenditure whatsoever with respect thereto; or (c) maintain the Premises in any way. Tenant
hereby waives, to the extent permitted by law, the right to make repairs at the expense of Landlord pursuant to any law in effect
at the time of the execution of this Lease or hereafter enacted.

 

    	 	- 18 -	 

     

    

 

9.1.3           Nothing
contained in this Lease and no action or inaction by Landlord shall be construed as (a) constituting the consent or request of
Landlord, expressed or implied, to any contractor, subcontractor, laborer, materialman or vendor to or for the performance of any
labor or services or the furnishing of any materials or other property for the construction, alteration, addition, repair or demolition
of or to the Premises or any part(s) thereof; or (b) giving Tenant any right, power or permission to contract for or permit the
performance of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making
of any claim against Landlord in respect thereof or to make any agreement that may create, or in any way be the basis for, any
right, title, interest, lien, claim or other encumbrance upon the estate of Landlord in the Premises or any part(s) thereof.

 

9.1.4           Unless
Landlord shall convey any of the Premises to Tenant pursuant to the provisions of this Lease, Tenant shall, upon the expiration
or earlier termination of the Term, vacate and surrender the Premises to Landlord in the condition in which the Premises was originally
received from Landlord or (if applicable) were originally introduced to the Premises, except as repaired, rebuilt, restored, altered
or added to as permitted or required by the provisions of this Lease and except for ordinary wear and tear.

 

9.2          Encroachments;
Restrictions. Tenant shall take all steps necessary to cause the Leased Improvements to not encroach upon any property, street,
right-of-way, easement or set-back line, or to not violate any restrictive covenant or other agreement affecting the Premises.

 

SECTION
10

 

10.1        Build-out
Agreement.

 

10.1.1           Provided
no Event of Default has occurred and remains uncured, Tenant shall have the right to build out the 5,529 square feet of shell space
on the first floor shown on Exhibit A-1 (the “Build-out Space”), subject to the terms and conditions
set forth below.

 

10.1.2           If
Tenant exercises its build-out option, Tenant shall perform all tenant improvements in the Build-out Space (the “Build-out
Improvements”) in accordance with Exhibit E.

 

10.1.3           Upon
funding of the Build-out Allowance as provided in Exhibit E, the annual Minimum Rent shall be increased as of the date of
disbursement by the Return Rate on the amount of the Build-out Allowance funded by Landlord. Landlord and Tenant shall enter into
a written agreement modifying and supplementing this Lease and specifying the amount of the Build-out Allowance that has been funded
and the increase in the Minimum Rent.

 

    	 	- 19 -	 

     

    

 

10.1.4           Provided
no Event of Default has occurred and remains uncured, if Tenant completes the Build-out Improvements as provided herein, Tenant
shall have the option of requesting the Follow-On Capital Payment from Landlord between months twenty-four (24) and sixty (60)
of the Term (the “Follow-On Capital Qualification Period”), as long as the Follow-On Capital will be used to
expand the Premises, as approved by Landlord in its sole discretion. It shall be a condition of receiving the Follow-On Capital
Payment that Tenant provide Landlord all documentation reasonably required by Landlord to establish the amount of the Follow-On
Capital Payment and the purposes for which it will be used (the “Follow-On Capital Documentation”) within the
Follow-On Capital Qualification Period. If approved, Landlord shall fund the Follow-On Capital Payment within thirty (30) days
after receipt of the Follow-On Capital Documentation. Upon funding of the Follow-On Capital Payment, the annual Minimum Rent shall
be increased as of the date of disbursement by the Return Rate on the Follow-On Capital Payment. Landlord and Tenant shall enter
into a written agreement modifying and supplementing this Lease and specifying the amount of the Follow-On Capital Payment and
the increase in the Minimum Rent.

 

10.1.5           Any
termination of this Lease shall terminate all rights of Tenant with respect to the Build-out Allowance and the Follow-On Capital
Payment. The rights of Tenant with respect to the Build-out Allowance and the Follow-On Capital Payment shall not be severable
from this Lease, nor may such rights be assigned or otherwise conveyed in connection with any permitted assignment of this Lease.
Landlord's consent to any assignment of this Lease shall not be construed as allowing an assignment or a conveyance of such rights
to any assignee.

 

10.1.6           If
this Lease or Tenant’s right to possession of the Premises shall terminate in any manner whatsoever before Tenant shall exercise
the right herein provided, or if Tenant shall have subleased the Premises to any party other than Subtenants or assigned this Lease
with respect to all or any portion of the Premises to any party other than Subtenants, then immediately upon such termination,
sublease, or assignment, the rights under this Section 10.1 shall simultaneously terminate and become null and void. Such right
is personal to Tenant and non-transferable. UNDER NO CIRCUMSTANCES WHATSOEVER SHALL THE ASSIGNEE UNDER A COMPLETE OR PARTIAL ASSIGNMENT
OF THIS LEASE, OR A SUBTENANT UNDER A SUBLEASE OF THE PREMISES, HAVE ANY RIGHT TO EXERCISE THE RIGHTS GRANTED UNDER THIS SECTION.

 

    	 	- 20 -	 

     

    

 

10.2        Construction
of Other Capital Additions and Other Alterations to the Premises. Without the prior written consent of Landlord, Tenant shall
not (a) make any Capital Additions on or structural alterations to the Premises; (b) enlarge or reduce the size of the Premises
or otherwise materially alter or affect (other than repair and replacement thereof) any main building systems, including any main
plumbing, electrical or heating, ventilating and air conditioning systems; or (c) make any Capital Additions or other alterations
which would tie in or connect with any improvements on property adjacent to the Land. Tenant may, without Landlord’s prior
written consent, make any alterations, additions, or improvements (collectively, “alterations”) to the Premises if
such alterations are not of the type described in either clause (a), (b) or (c) above, so long as in each case: (i) the same do
not (A) decrease the value of the Premises, (B) affect the exterior appearance of the Premises, or (C) adversely affect the structural
components of the Leased Improvements or the main electrical, mechanical, plumbing or ventilating and air conditioning systems;
(ii) the same are consistent or better in terms of style, quality and workmanship to the original Leased Improvements and Fixtures;
(iii) the same are constructed and performed in accordance with the provisions of this Section; and (iv) the cost thereof does
not exceed, in the aggregate, $250,000 for any twelve (12) month period. Any alterations (other than alterations described in clauses
(a), (b) or (c) above, and other than alterations which meet the foregoing requirements of clauses (i), (ii), and (iii) and (iv)
above) shall be subject to Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned
or delayed. To the extent Landlord’s prior written consent shall be required in connection with any alterations or Capital
Additions, Landlord may impose such conditions thereon in connection with its approval thereof as Landlord in its sole but reasonable
judgment deems appropriate. Notwithstanding the foregoing, Landlord agrees that painting, landscaping, and replacement of floor,
wall and window coverings shall be deemed alterations which do not require Landlord’s consent, regardless of the cost thereof,
so long as the same meet the requirements of clauses (ii) and (iii) above. With respect to any Capital Additions or alterations
permitted hereunder, (A) all work done in connection with such construction shall be done promptly and in a good and workmanlike
manner using first-class materials and in conformity with all Legal Requirements; (B) promptly following the completion of such
construction, Tenant shall deliver to Landlord “as built” drawings of such addition, certified as accurate by the licensed
architect or engineer selected by Tenant to supervise such work; and (C) if by reason of the construction thereof, a new or revised
Certificate of Occupancy for any component of the Premises is required, Tenant shall obtain and furnish a copy of the same to Landlord
promptly upon completion thereof. Notwithstanding anything to the contrary in this Section 10.2, Tenant may, without Landlord’s
prior written consent, make any alterations required by any governmental or regulatory authority having jurisdiction over the Premises
or the Hospitals so long as the same meet the requirements of clauses (ii) and (iii) above.

 

SECTION
11

 

11.1        Liens.
Subject to the provisions of Section 12.1 relating to permitted contests, Tenant will not directly or indirectly create or allow
to remain and will promptly discharge at its expense any lien, encumbrance, attachment, title retention agreement or claim upon
the Premises, excluding, however, the matters that exist as of the Commencement Date.

 

SECTION
12

 

12.1        Permitted
Contests. Tenant, upon prior written notice to Landlord, on its own or in Landlord’s name, at Tenant’s expense,
may contest, by appropriate legal proceedings conducted in good faith and with due diligence, the amount, validity or application,
in whole or in part, of any licensure or certification decision, Imposition, Legal Requirement, Insurance Requirement, lien, attachment,
levy, encumbrance, charge or claim; subject, however, to the further requirement that (a) the commencement and continuation of
such proceedings shall suspend the collection thereof from Landlord and from the Premises; (b) neither the Premises nor the Rent
therefrom nor any part or interest in either thereof would be in any danger of being sold, forfeited, attached or lost pending
the outcome of such proceedings; (c) neither Landlord nor Tenant would be in any danger of civil or criminal liability for failure
to comply therewith pending the outcome of such proceedings; and (d) Tenant shall give such reasonable security as may be required
by Landlord to insure ultimate payment of the same and to prevent any sale or forfeiture of the Premises or the Rent by reason
of such nonpayment or noncompliance. If any such contest is finally resolved against Landlord or Tenant, Tenant shall promptly
pay the amount required to be paid, together with all interest and penalties accrued thereon, or comply with the applicable Legal
Requirement or Insurance Requirement. Tenant shall indemnify, defend, protect and save Landlord harmless from and against any liability,
cost or expense of any kind that may be imposed upon Landlord in connection with any such contest and any loss resulting therefrom.

 

    	 	- 21 -	 

     

    

 

SECTION
13

 

13.1        General
Insurance Requirements. During the Term, Tenant or Subtenants shall at all times keep the Premises, and all property located
in or on the Premises, including all Capital Additions, the Fixtures and the Personal Property, insured with the kinds and amounts
of insurance described below. Each element of the insurance described in this Section shall be maintained with respect to the Premises
and the Personal Property and operations thereon. This insurance shall be written by companies authorized to do insurance business
in the State in which the Premises is located. All liability policies must name Landlord as an “additional insured.”
All property, loss of rental and business interruption type policies shall name Landlord as “loss payee.” Losses shall
be payable to Landlord and/or Tenant as provided in Section 14. In addition, the policies, as appropriate, shall name as an
“additional insured” or “loss payee” the holder of any mortgage, deed of trust or other security agreement
(“Mortgagee”) securing any indebtedness or any other encumbrance placed on any Premises in accordance with the provisions
of Section 36.3.1 (“Mortgage”) by way of a standard form of mortgagee’s loss payable endorsement; provided
that Landlord delivers the name and address of any such Mortgagee to Tenant. Any loss adjustment shall require the written consent
of Landlord, Tenant and each Mortgagee. Evidence of insurance shall be deposited with Landlord and, if requested, with any Mortgagee(s).
The policies shall insure against the following risks:

 

13.1.1           Loss
or damage by fire, vandalism and malicious mischief, extended coverage perils commonly known as special form perils, earthquake
(including earth movement), sinkhole and windstorm in an amount not less than the insurable value on a replacement cost basis (as
defined below in Section 13.2) and including a building ordinance coverage endorsement;

 

13.1.2           Loss
or damage by explosion of steam boilers, pressure vessels or similar apparatus, now or hereafter installed in the Premises, in
such limits with respect to any one accident as may be reasonably requested by Landlord from time to time;

 

13.1.3           Flood
(when the Premises is located in whole or in part within a designated 100-year flood plain area) and such other hazards and in
such amounts as may be customary for comparable properties in the area;

 

13.1.4           Loss
of rental value in an amount not less than twelve (12) months’ Rent payable hereunder or business interruption in an amount
not less than twelve (12) months of income and normal operating expenses including payroll and Rent payable hereunder with an endorsement
extending the period of indemnity by at least ninety (90) days (Building Ordinance Increased Period of Restoration Endorsement)
necessitated by the occurrence of any of the hazards described in Sections 13.1.1, 13.1.2 or 13.1.3;

 

    	 	- 22 -	 

     

    

 

13.1.5           Bodily
injury and property damage under a policy of commercial general liability insurance (including broad form property damage and broad
form contractual liability), with amounts not less than One Million and No/100 Dollars ($1,000,000.00) per occurrence and Three
Million and No/100 Dollars ($3,000,000.00) in the annual aggregate and a commercial umbrella liability policy of Five Million and
No/100 Dollars ($5,000,000.00); and

 

13.1.6           Medical
professional liability, with amounts not less than One Million and No/100 Dollars ($1,000,000.00) per occurrence and Three Million
and No/100 Dollars ($3,000,000.00) in the annual aggregate.

 

13.2        Replacement
Cost. The term “replacement cost” shall mean the actual replacement cost of the insured property from time to time
with new materials and workmanship of like kind and quality. If Landlord believes that the replacement cost has increased at any
time during the Term, it shall have the right to have such replacement cost redetermined by an impartial national insurance company
(the “Impartial Appraiser”) approved by Tenant. The determination of the Impartial Appraiser shall be final and binding
on the parties hereto. Upon receipt of such determination by the Impartial Appraiser, Landlord shall notify Tenant thereof, and
Tenant shall forthwith increase the amount of the insurance carried pursuant to this Section to the amount so determined by the
Impartial Appraiser. Landlord shall pay the fee, if any, of the Impartial Appraiser. If Tenant has made improvements to the Premises,
including any Capital Additions, Landlord may, at Tenant’s expense, have the replacement cost redetermined at any time after
such improvements are made, regardless of when the replacement cost was last determined.

 

13.3        Additional
Insurance. In addition to the insurance described above, Tenant shall maintain such additional insurance as may be reasonably
required from time to time by Landlord and shall further at all times maintain adequate workers’ compensation coverage and
any other coverage required by Legal Requirements for all Persons employed by Tenant or Subtenants
on the Premises in accordance with Legal Requirements.

 

13.4        Landlord
Election. Notwithstanding anything to the contrary set forth herein, upon written notice to Tenant, Landlord shall have the
right to elect to carry the insurance set forth under subsections 13.1.1, 13.1.2, 13.1.3, 13.1.4 and 13.1.5 and such other insurance
required by Landlord’s Mortgagee, in which event Tenant shall be responsible for and shall reimburse Landlord for the payment
of all insurance premiums for all such insurance carried by Landlord. Landlord shall provide Tenant with copies of all such insurance
policies. Unless Landlord otherwise directs Tenant to make payments to the Impound Account as provided in Section 4.4, Tenant shall
reimburse Landlord for all such insurance premium payments made by Landlord within thirty (30) days after receipt of Landlord’s
invoice or notification of payment for same. If Tenant’s makes insurance payments to the Impound Account, Landlord shall
use the deposits for insurance in the Impound Account to pay for Landlord’s insurance; provided if the deposits for insurance
in the Impound Account are insufficient to pay for the same, Tenant shall be obligated to fund any shortfall upon demand.

 

    	 	- 23 -	 

     

    

 

13.5        Waiver
of Subrogation. All insurance policies carried by either party covering the Premises and Tenant’s Personal Property including
property insurance, shall expressly waive any right of subrogation on the part of the insurer against the other party. Each party
waives any claims it has against the other party to the extent such claim is covered by insurance.

 

13.6        Policy
Requirements. All of the policies of insurance referred to in Section 13.1 shall be written in form satisfactory to Landlord
and by insurance companies with a policyholder rating of “A” and a financial rating of “X” in the most
recent version of Best’s Key Rating Guide. Additionally, all of the insurance referred to in subsections 13.1.1, 13.1.2,
13.1.3, 13.1.4 and 13.1.5 shall be on an occurrence (rather than a claims-made) basis. Tenant shall deliver the policies required
under Section 13.1, or certificates thereof to Landlord prior to their effective date (and with respect to any renewal policy,
shall deliver to Landlord’s reasonable satisfaction, evidence of renewal at least thirty (30) days prior to the expiration
of the existing policy), and in the event of the failure of Tenant either to effect such insurance in the names herein called for
or to pay the premiums therefor, or to deliver such policies or certificates thereof to Landlord, at the times required, Landlord
shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor, in which event the cost
thereof, together with interest thereon at the Overdue Rate, shall be repayable to Landlord upon demand therefor. Each insurer
shall agree, by endorsement on the policy or policies issued by it, or by independent instrument furnished to Landlord, that it
will give to Landlord thirty (30) days’ written notice before the policy or policies in question shall be materially altered,
allowed to expire or canceled. Each policy shall have a deductible or deductibles, if any, which are no greater than those normally
maintained for similar facilities in the State of similar size and financial condition; provided, however, that in no event shall
the deductibles for any medical professional liability policies or general liability policies exceed $25,000.00.

 

13.7        Increase
in Limits. If Landlord shall at any time reasonably believe the limits of the insurance required of Tenant hereunder to be
either excessive or insufficient, the parties shall endeavor to agree in writing on the proper and reasonable limits for such insurance
to be carried and such insurance shall thereafter be carried with the limits thus agreed on until further change pursuant to the
provisions of this Section. If the parties shall be unable to agree thereon, the proper and reasonable limits for such insurance
to be carried shall be determined by an impartial third party reasonably selected by Landlord and Tenant. Nothing herein shall
permit the amount of insurance to be reduced below the amount or amounts required by Landlord’s Mortgagee.

 

13.8        Blanket
Policies and Policies Covering Multiple Locations. Notwithstanding anything to the contrary contained in this Section, Tenant’s
obligation to carry the insurance provided for herein may be brought within the coverage of a blanket policy or policies of insurance
carried and maintained by Tenant; provided, however, that the coverage afforded Landlord will not be reduced or diminished
or otherwise be different from that which would exist under a separate policy meeting all other requirements of this Lease by reason
of the use of such blanket policy of insurance, and provided further that the requirements of this Section are otherwise satisfied.
For any liability policies covering any other facilities in addition to the Premises, Landlord may require excess limits as Landlord
reasonably determines.

 

    	 	- 24 -	 

     

    

 

13.9        No
Separate Insurance. Tenant shall not, on Tenant’s own initiative or pursuant to the request or requirement of any third
party, (a) take out separate insurance concurrent in form or contributing in the event of loss with that required in this Section
to be furnished by, or which may reasonably be required to be furnished by, Tenant or (b) increase the amounts of any then existing
insurance by securing an additional policy or additional policies, unless all parties having an insurable interest in the subject
matter of the insurance, including in all cases Landlord and all Mortgagees, are included therein as additional insureds and the
loss is payable under such insurance in the same manner as losses are payable under this Lease. Tenant shall immediately notify
Landlord of the taking out of any such separate insurance or of the increasing of any of the amounts of the then existing insurance
by securing an additional policy or additional policies. All insurance
required of Tenant hereunder shall be primary and non-contributory with respect to any insurance carried by Landlord.

 

SECTION
14

 

14.1        Insurance
Proceeds. All proceeds payable by reason of any loss or damage to the Premises under any policy of insurance required to be
carried hereunder shall be paid to Landlord and made available by Landlord to Tenant from time to time for the reasonable costs
of reconstruction or repair, as the case may be, of any damage to or destruction of the Premises. Any excess proceeds of such insurance
remaining after the completion of (and payment for) the restoration or reconstruction of the Premises (or in the event neither
Landlord nor Tenant is required or elects to repair and restore, all such insurance proceeds) shall be retained by Landlord, except
as otherwise specifically provided below in this Section. All salvage resulting from any risk covered by insurance shall, at Landlord’s
option, belong to Landlord.

 

14.2        Casualty.

 

14.2.1           If
the Premises is damaged or destroyed by fire or other casualty, Tenant shall restore such Premises to substantially the same condition
as existed immediately before such damage or destruction.

 

14.2.2           If
the cost of the repair or restoration exceeds the amount of proceeds received by Landlord from the insurance required to be carried
hereunder, Tenant shall contribute any excess amounts needed to restore the Premises, including, without limitation any deductibles.
Such difference shall be paid by Tenant to Landlord together with any other insurance proceeds, for application to the cost of
repair and restoration.

 

14.3        No
Abatement of Rent. This Lease shall remain in full force and effect and Tenant’s obligation to pay the Rent and all other
charges required by this Lease shall remain unabated during the period required for adjusting insurance, satisfying Legal Requirements,
repair and restoration. All proceeds payable by reason of any loss of rental or business interruption under any policy of insurance
required to be carried by Tenant hereunder shall be paid to Landlord and, provided that no Event of Default has occurred and is
continuing, Landlord shall (a) apply, on a monthly basis, all such proceeds paid by reason of loss of rental towards Tenant’s
obligation to pay Rent; and (b) after Rent has been paid, make available to Tenant for Tenant’s operating costs (e.g.,
payment of salaries, taxes, etc.), on a monthly basis, all such proceeds paid by reason of business interruption. Any excess proceeds
of such insurance remaining after such rent and operating costs have been paid shall be delivered to Tenant.

 

14.4        Waiver.
Tenant waives any statutory rights of termination that may arise by reason of any damage or destruction of the Premises.

 

    	 	- 25 -	 

     

    

 

SECTION
15

 

15.1        Condemnation.

 

15.1.1           Total
Taking. If the Premises are totally and permanently taken by Condemnation, this Lease shall terminate as of the day before
the Date of Taking.

 

15.1.2           Partial
Taking. If a portion of the Premises is taken by Condemnation, this Lease shall remain in effect if the Premises is not thereby
rendered Unsuitable for Its Primary Intended Use (except that this Lease shall terminate with respect to the portion of the Premises
so taken), but if the Premises are thereby rendered Unsuitable for its Primary Intended Use, this Lease shall terminate as of the
day before the Date of Taking. In the event of any such partial taking in which this Lease is not so terminated and such partial
taking affects the building (as opposed to components of the Premises such as parking, landscaping, sidewalks, etc.), Minimum Rent
shall be adjusted in a manner that is fair, just and equitable to both Landlord and Tenant, based upon, among other relevant factors,
the loss of beds or units, if any, in the Premises.

 

15.1.3           Restoration.
If there is a partial taking of the Premises and this Lease remains in full force and effect pursuant to Section 15.1.2, Landlord
shall make available to Tenant the portion of the Award necessary and specifically identified or allocated for restoration of the
Premises and Tenant shall accomplish all necessary restoration whether or not the amount provided or allocated by the Condemnor
for restoration is sufficient.

 

15.1.4           Award
Distribution. Subject to Section 15.1.3 above, the entire Award shall belong to and be paid to Landlord, except that Tenant
shall be entitled to receive from the Award, if and to the extent such Award specifically includes such item, lost profits value
and moving expenses.

 

15.1.5           Temporary
Taking. The taking of the Premises and/or any part(s) thereof, shall constitute a taking by Condemnation only when the use
and occupancy by the taking authority has continued for longer than one hundred eighty (180) consecutive days. During any shorter
period, which shall be considered a temporary taking, all the provisions of this Lease shall remain in full force and effect and
the Award allocable to the Term shall be paid to Tenant.

 

15.1.6           Sale
under Threat of Condemnation. A sale by Landlord to any Condemnor, either under threat of Condemnation or while Condemnation
proceedings are pending, shall be deemed a Condemnation for purposes of this Lease. Subject to Tenant’s consent, which shall
not be unreasonably withheld, Landlord may, without any obligation to Tenant, agree to sell and/or convey to any Condemnor all
or any portion of the Premises free from this Lease and the rights of Tenant hereunder without first requiring that any action
or proceeding be instituted or pursued to judgment.

 

    	 	- 26 -	 

     

    

 

SECTION
16

 

16.1        Events
of Default. Any one or more of the following shall constitute an “Event of Default”:

 

16.1.1           a
default shall occur under any other lease or other agreement or instrument, now or hereafter with or in favor of Landlord or any
Affiliate of Landlord and made by or with Tenant or any Affiliate of Tenant where such default is not cured within applicable notice
and cure periods in such lease, agreement or instrument;

 

16.1.2           Tenant
shall fail to pay any installment of Rent by the fifteenth (15th) day of the applicable calendar month and does not
cure such failure within ten (10) days of notice from Landlord that the same is past due;

 

16.1.3           except
as otherwise specifically provided for in this Section, if Tenant shall fail to observe or perform any other term, covenant or
condition of this Lease and such failure is not cured by Tenant within thirty (30) days after notice thereof from Landlord, unless
such failure cannot with due diligence be cured within a period of thirty (30) days, in which case such failure shall not be deemed
to be an Event of Default if Tenant commences to cure such failure within such 30-day period and thereafter proceeds promptly and
with reasonable diligence to cure the failure and diligently completes the curing thereof; provided, however, that (i) such notice
shall be in lieu of and not in addition to any notice required under applicable law; and (ii) in no event shall the cure period
set forth above continue for more than sixty (60) days after the initial notice of such default is delivered by Landlord to Tenant;

 

16.1.4           Tenant
or any Guarantor shall admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy
or a petition to take advantage of any insolvency act, make an assignment for the benefit of its creditors, consent to the appointment
of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization
or arrangement under the Federal bankruptcy laws or any other applicable law or statute of the United States of America or any
state thereof;

 

16.1.5           Tenant
or any Guarantor shall be adjudicated as bankrupt or a court of competent jurisdiction shall enter an order or decree appointing
a receiver of Tenant or Guarantor or of the whole or substantially all of Tenant’s or Guarantor’s property and such
judgment, order or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of the entry thereof;

 

16.1.6           Tenant
or any Guarantor shall be liquidated or dissolved, or shall begin proceedings toward such liquidation or dissolution, or shall,
in any manner, permit the sale or divestiture of substantially all its assets (except to the extent such a sale is expressly permitted
hereunder);

 

16.1.7           any
breach or default of the provisions of Section 24.1 occurs;

 

    	 	- 27 -	 

     

    

 

16.1.8           any
of the representations or warranties made by Tenant herein or by any Guarantor in the Guaranty proves to be untrue when made in
any material respect;

 

16.1.9           any
license or third-party provider reimbursement agreements material to operation of the Hospitals in the Premises for the Primary
Intended Use are at any time terminated or revoked or suspended and not reinstated within thirty (30) days of such termination,
revocation or suspension;

 

16.1.10         (i)
any local, state or federal agency having jurisdiction over the operation of the Hospitals removes the greater of (A) five (5)
or more patients located in the Hospitals, or (B) ten percent (10%) or more of the patients located in the Hospitals; (ii) any
local, state or federal agency having jurisdiction over the operation of the Hospitals reduces the number of licensed beds in the
Hospitals by more than the greater of (A) five (5) beds, or (B) ten percent (10%) in the aggregate from that number set forth on
the Primary Intended Use; (iii) Tenant or Subtenants, without the consent of Landlord, voluntarily reduces the number of licensed
beds in the Hospitals by more than the greater of (A) five (5) beds or (B) ten percent (10%) from that number set forth in the
Primary Intended Use; or (iv) Tenant or Subtenants, without the consent of Landlord, voluntarily removes from service (so-called
“bed banking”) five (5) or more licensed beds in the Hospitals;

 

16.1.11         Tenant
fails to give notice to Landlord not later than ten (10) days after any notice, claim or demand from any governmental authority,
or any officer acting on behalf thereof, of any material violation of any Legal Requirement with respect to the operation of the
Premises. For purposes of this subsection, a “material violation” shall mean a violation of any such Legal Requirement
that is reasonably likely to (i) have a material adverse effect on Tenant’s operations in the Premises; or (ii) impose any
liability on Landlord;

 

16.1.12         Tenant
fails to cure or abate any material violation (except for violations being contested by Tenant pursuant to Section 12.1 hereof)
occurring during the Term that is claimed by any governmental authority, or any officer acting on behalf thereof, of any law, order,
ordinance, rule or regulation pertaining to the operation of the Premises, and within the time permitted by such authority for
such cure or abatement. For purposes of this subsection, a “material violation” shall mean a violation of any such
law, order, ordinance, rule or regulation that is reasonably likely to (i) have a material adverse effect on Tenant’s operations
in the Premises; or (ii) impose any liability on Landlord;

 

16.1.13         Tenant
fails to notify Landlord within three (3) business days after receipt of any notice from any governmental agency terminating or
suspending or reflecting a material risk of imminent termination or suspension, of any material license or certification relating
to the Hospitals;

 

    	 	- 28 -	 

     

    

 

16.1.14         (i)
the revocation of any license granted to Tenant or Subtenants that is material to the operation of the Hospitals; (ii) the decertification
of the Hospitals from participation in the Medicare or Medicaid reimbursement program if participation in such programs is applicable
and is material to the operation of the Hospitals; or (iii) the issuance of a stop placement order against Tenant, provided that
such revocation, decertification and such stop placement order is not rescinded within thirty (30) days;

 

16.1.15         any
default and acceleration of any indebtedness of borrowed money in excess of $250,000 of Tenant, Guarantors or any Affiliate of
Tenant or Guarantors has occurred;

 

16.1.16         any
default shall occur under any Guaranty;

 

16.1.17         Tenant
or its Affiliates, as applicable, shall fail to comply with the provisions of Section 47.1 below;

 

16.1.18         Tenant
fails maintain the Coverage Requirement for two (2) consecutive Quarters, and thereafter does not meet the Coverage Requirement
within the two (2) successive Quarters immediately after receipt of notice thereof from Landlord; or

 

16.1.19         Tenant
and Guarantors fail to maintain the Minimum Net Worth; provided, however, that such event shall only constitute an Event of Default
hereunder if Landlord delivers notice of such failure to Tenant and if such failure continues beyond any cure period expressly
afforded by Landlord to Tenant in such notice (it being agreed, however, that the decision as to whether a cure period shall be
granted and the duration of such cure period, if any, shall be determined by Landlord in its sole and absolute discretion).

 

16.2        Certain
Remedies. If an Event of Default shall have occurred, Landlord may terminate this Lease, by giving Tenant notice of such termination
and the Term shall terminate and all rights of Tenant under this Lease shall cease. Landlord shall have all rights at law and in
equity available to Landlord as a result of any Event of Default. Tenant shall pay as Additional Charges all costs and expenses
incurred by or on behalf of Landlord, including reasonable attorneys’ fees and expenses, as a result of any Event of Default
hereunder. If an Event of Default shall have occurred and be continuing, whether or not this Lease has been terminated pursuant
to this Section, Tenant shall, to the extent permitted by law, if required by Landlord so to do, immediately surrender to Landlord
possession of the Premises and quit the same and Landlord may enter upon and repossess the Premises by reasonable force, summary
proceedings, ejectment or otherwise, and may remove Tenant and all other Persons and any of Tenant’s Personal Property from
the Premises.

 

16.3        Damages.
The (a) termination of this Lease; (b) repossession of the Premises; (c) failure of Landlord, notwithstanding reasonable good
faith efforts, to relet the Premises; (d) reletting of all or any portion of the Premises; or (e) failure or inability of
Landlord to collect or receive any rentals due upon any such reletting, shall not relieve Tenant of its liabilities and obligations
hereunder, all of which shall survive any such termination, repossession or reletting. If any such termination occurs, Tenant shall
forthwith pay to Landlord all Rent due and payable with respect to the Premises to and including the date of such termination.
Thereafter, following any such termination, Tenant shall forthwith pay to Landlord, at Landlord’s option, as and for liquidated
and agreed current damages for an Event of Default by Tenant, the sum of:

 

    	 	- 29 -	 

     

    

 

16.3.1           the
worth at the time of award of the unpaid Rent (including all monthly Minimum Rent) which had been earned at the time of termination,

 

16.3.2           the
worth at the time of award of the amount by which the unpaid Rent (including all monthly Minimum Rent) which would have been earned
after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably
avoided,

 

16.3.3           the
worth at the time of award of the amount by which the unpaid Rent (including all monthly Minimum Rent) for the balance of the then
current Term (not including any Extended Terms that have not yet been exercised, but including any Extended Term which has been
exercised but has not yet commenced) after the time of award exceeds the amount of such rental loss that Tenant proves could be
reasonably avoided, plus

 

16.3.4           any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its
obligations under this Lease or which in the ordinary course of things would be likely to result therefrom.

 

As used in subsections 16.3.1 and 16.3.2 above,
the “worth at the time of award” shall be computed by allowing interest at the Overdue Rate. As used in subsection
16.3.3 above, the “worth at the time of award” shall be computed by discounting such amount at the discount rate of the
Federal Reserve Bank of New York at the time of award plus One Percent (1%). Alternatively, if Landlord does not elect to terminate
this Lease, then Tenant shall pay to Landlord, at Landlord’s option, as and for agreed damages for such Event of Default
without termination of Tenant’s right to possession of the Premises and any Capital Additions, each installment of said Rent
(including the monthly Minimum Rent) and other sums payable by Tenant to Landlord under this Lease as the same becomes due and
payable with respect to the Premises, together with interest at the Overdue Rate from the date when due until paid, and Landlord
may enforce, by action or otherwise, any other term or covenant of this Lease.

 

16.4        Receiver.
Upon the occurrence of an Event of Default, and upon commencement of proceedings to enforce the rights of Landlord hereunder, Landlord
shall be entitled, as a matter of right, to the appointment of a receiver or receivers acceptable to Landlord of the Premises and/or
of the revenues, earnings, income, products and profits thereof, pending the outcome of such proceedings, with such powers as the
court making such appointment shall confer.

 

16.5        Waiver.
If Landlord initiates judicial proceedings or if this Lease is terminated by Landlord pursuant to this Section, Tenant waives,
to the extent permitted by applicable law, (a) any right of redemption, re-entry or repossession; and (b) the benefit of any
laws now or hereafter in force exempting property from liability for rent or for debt.

 

16.6        Application
of Funds. Any payments received by Landlord under any of the provisions of this Lease during the existence or continuance of
any Event of Default that are made to Landlord rather than Tenant due to the existence of an Event of Default (including all rentals
received as a result of any reletting) shall be applied to Tenant’s obligations in the order which Landlord may determine
or as may be prescribed by the laws of the State in which the Premises are located.

 

    	 	- 30 -	 

     

    

 

16.7        Landlord’s
Security Interest. The parties intend that if an Event of Default occurs under this Lease, Landlord will control Tenant’s
Personal Property and the Intangible Property so that Landlord or its designee or nominee can operate or re-let the Premises intact
for their Primary Intended Use. Accordingly, to implement such intention, and for the purpose of securing the payment and performance
obligations of Tenant hereunder, Landlord and Tenant agree as follows:

 

16.7.1           Tenant,
as debtor, hereby grants to Landlord, as secured party, a security interest in, and an express contractual lien upon, all of Tenant’s
right, title and interest in and to Tenant’s Personal Property, and all of Tenant’s right, title and interest in and
to the Impound Account established pursuant to Section 4.4 above (collectively, the “Collateral”).
This Lease constitutes a security agreement covering all such Collateral. The security interest granted to Landlord with respect
to Tenant’s Personal Property in this subsection is intended by Landlord and Tenant to be subordinate to any security interest
granted in connection with the financing or leasing of all or any portion of the Tenant’s Personal Property or in connection
with any accounts receivable financing so long as the lessor or financier of such Tenant’s Personal Property or accounts
receivable agrees to give Landlord written notice of any default by Tenant under the terms of such lease or financing arrangement,
to give Landlord a reasonable time following such notice to cure any such default and consents to Landlord’s written assumption
of such lease or financing arrangement upon Landlord’s curing of any such defaults.

 

16.7.2           Tenant
hereby authorizes Landlord to file such financing statements, continuation statements and other documents as may be necessary or
desirable to perfect or continue the perfection of Landlord’s security interest in the Collateral. In addition, if required
by Landlord at any time during the Term, Tenant shall execute and deliver to Landlord, in form reasonably satisfactory to Landlord,
additional security agreements, financing statements, fixture filings and such other documents as Landlord may reasonably require
to perfect or continue the perfection of Landlord’s security interest in the Collateral. In the event Tenant fails to execute
any financing statement or other documents for the perfection or continuation of Landlord’s security interest, Tenant hereby
appoints Landlord as its true and lawful attorney-in-fact to execute any such documents on its behalf, which power of attorney
shall be irrevocable and is deemed to be coupled with an interest.

 

16.7.3           Tenant
will give Landlord at least thirty (30) days’ prior written notice of any change in Tenant’s name, identity, jurisdiction
of organization or corporate structure. With respect to any such change, Tenant will promptly execute and deliver such instruments,
documents and notices and take such actions, as Landlord deems necessary or desirable to create, perfect and protect the security
interests of Landlord in the Collateral.

 

16.7.4           Upon
the occurrence of an Event of Default, Landlord shall be entitled to exercise any and all rights or remedies available to a secured
party under the Uniform Commercial Code, or available to a lessor under the laws of the State, with respect to Tenant’s Personal
Property and the Intangible Property, including the right to sell the same at public or private sale.

 

    	 	- 31 -	 

     

    

 

SECTION
17

 

17.1        Landlord’s
Right to Cure Tenant’s Default. If Tenant shall fail to make any payment or to perform any act required to be made or
performed hereunder within fifteen (15) days after written demand by Landlord (except in case of emergencies), Landlord, without
waiving or releasing any obligation or default, may, but shall be under no obligation to, make such payment or perform such act
for the account and at the expense of Tenant, and may, to the extent permitted by law, enter upon the Premises for such purpose
and take all such action thereon as, in Landlord’s opinion, may be necessary or appropriate therefor. Notwithstanding the
foregoing, in no event shall any of representative of Landlord be permitted to enter into any rooms in which patients are present
or enter into any area of the Hospitals that Tenant or Subtenants reasonably designate as a secured area, including, without limitation,
the pharmacy unless escorted by a representative of Tenant or Subtenants. No such entry shall be deemed an eviction of Tenant.
All sums so paid by Landlord and all costs and expenses, including reasonable attorneys’ fees and expenses, so incurred,
together with interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Landlord,
shall be paid by Tenant to Landlord on demand.

 

SECTION
18

 

18.1        Intentionally
Omitted

 

SECTION
19

 

19.1        Renewal
Terms. Provided that no Event of Default has occurred and is continuing, either at the date of exercise or upon the commencement
of an Extended Term (as hereunder defined), then Tenant shall have the right to renew this Lease with respect to all (but not less
than all) of the Premises for the Extended Term(s). Tenant shall be deemed to have exercised its renewal options in this Section
unless Tenant gives written notice to Landlord of Tenant’s election not to exercise such renewal option at least twenty-four
(24) months prior to the expiration of the then applicable current Term. During each Extended Term, all of the terms and conditions
of this Lease shall continue in full force and effect, except for the Minimum Rent, which shall be as set forth in Section 19.2.

 

19.2        Determination
of Fair Market Rent. If Tenant’s renewal option is deemed exercised as provided in the preceding Section, Landlord shall
notify Tenant of the proposed Fair Market Rent for the Premises at least eight (8) months prior to the expiration of the then applicable
Term. “Fair Market Rent” shall be the anticipated rate in effect for the Premises as of the commencement of
the applicable Extended Term, based upon the rents generally in effect for new leases of space in the area in which the Premises
are located of equivalent quality, size, utility and location, with the length of the extended term and the credit standing of
Tenant to be taken into account. In no event shall the Fair Market Rent be less than the Minimum Rent set forth herein for the
immediately preceding Lease Year. Landlord shall lease to Tenant the Premises in their then-current condition, and Landlord shall
not provide to Tenant any allowances (e.g., moving allowance, construction allowance, free rent or the like) or other tenant inducements.
If Tenant does not accept the rate set forth in Landlord’s notice, Tenant shall have the right, upon notice sent to Landlord
within fifteen (15) days of receipt of Landlord’s notice containing the proposed Fair Market Rent, to require that Fair
Market Rent be determined by an appraisal. If Tenant does not so notify Landlord, Tenant shall be deemed to have accepted the Fair
Market Rent set forth in Landlord’s notice. In the event Tenant elects to have an appraisal, the following shall apply:

 

    	 	- 32 -	 

     

    

 

19.2.1           Landlord
shall send written notice to Tenant ("Landlord's Notice") designating the name of Landlord’s independent,
third party Rental Appraiser (“Landlord’s Rental Appraiser”).

 

19.2.2           Within
five (5) days of receipt of Landlord’s notice, Tenant shall notify Landlord of either (i) Tenant’s acceptance of Landlord’s
Rental Appraiser; or (ii) the name of Tenant’s independent third party Rental Appraiser (“Tenant’s Rental
Appraiser”). If Tenant fails to so notify Landlord, Tenant shall be deemed to have accepted Landlord’s Rental Appraiser.

 

19.2.3           If
Tenant accepts Landlord’s Rental Appraiser, the Fair Market Rent shall be determined by Landlord’s Rental Appraiser
within thirty (30) days of Landlord's Notice.

 

19.2.4           If
Tenant does not accept Landlord’s Rental Appraiser, within thirty (30) days of Landlord's Notice, Landlord’s Rental
Appraiser and Tenant’s Rental Appraiser shall each state what they believe the Fair Market Rent to be. If the two (2) rates
vary by five percent (5%) or less, then the Fair Market Rent shall be the average of the two (2) rates. If the two (2) rates vary
by more than five percent (5%), such two Rental Appraisers shall select an independent third party Rental Appraiser no later than
sixty (60) days after Landlord's Notice, and within five (5) days after such appointment, the third Rental Appraiser shall
select one (1) of the two (2) rates set by Landlord’s Rental Appraiser and Tenant’s Rental Appraiser as the Fair Market
Rent.

 

19.2.5           Each
party shall bear the cost of its Rental Appraiser; provided, however (i) if Tenant accepts Landlord’s Rental Appraiser, the
parties shall share equally the cost of Landlord’s Rental Appraiser; or (ii) if a third Rental Appraiser is appointed, the
parties shall share equally the cost of such third Rental Appraiser.

 

19.2.6           “Rental
Appraiser” shall mean a real estate broker who has a minimum of five (5) years’ experience in the Sherman, Texas
leasing market for properties similar to the Premises, who is licensed by the State and who is not affiliated with either party
or involved in an active transaction with either party.

 

    	 	- 33 -	 

     

    

 

SECTION
20

 

20.1        Holding
Over. If Tenant shall for any reason remain in possession of the Premises after the expiration or earlier termination of the
Term, such possession shall be as a month-to-month tenant during which time Tenant shall pay as Rent each month one hundred fifty
percent (150%) of the sum of (a) monthly Minimum Rent applicable to the prior Lease Year, together with (b) all Additional
Charges and all other sums payable by Tenant pursuant to this Lease. During such period of month-to-month tenancy, Tenant shall
be obligated to perform and observe all of the terms, covenants and conditions of this Lease, but shall have no rights hereunder
other than the right, to the extent given by law to month-to-month tenancies, to continue its occupancy and use of the Premises.
Nothing contained herein shall constitute the consent, express or implied, of Landlord to the holding over of Tenant after the
expiration or earlier termination of this Lease.

 

SECTION
21

 

21.1        Capital
Reserve Fund. Tenant will maintain and demonstrate, on demand from Landlord, a cash (including cash equivalents and accounts
receivable) account on its balance sheet in the initial amount of One Hundred Thousand and No/100 Dollars ($100,000.00) (the
“Capital Reserve Fund”) for Qualified Capital Expenditures. Tenant will contribute Five Thousand and No/100
Dollars ($5,000.00) per month to the Capital Reserve Fund until such time as the Capital Reserve Fund contains One Hundred
Fifty Thousand and No/100 Dollars ($150,000.00). Tenant may use the cash account to pay for Qualified Capital Expenditures
(a “Capital Reserve Fund Draw”). If a Capital Reserve Fund Draw occurs, then Tenant or Guarantors will replenish
the Capital Reserve Fund to One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) within twelve (12) months thereafter.
The Capital Reserve Fund will count as part of any cash reserve requirement and in the Minimum Net Worth computation.

 

21.2        Rent
Reserve Fund. Tenant will maintain and demonstrate, on demand from Landlord, a cash (including cash equivalents and accounts
receivable) account on its balance sheet, or alternatively, at Tenant’s option, a letter of credit (the “Rent Reserve
Letter of Credit”) at least equal to the Minimum Required Liquidity (the “Rent Reserve Fund”). Tenant
may use the cash account or direct the Landlord to draw upon the Rent Reserve Letter of Credit, as applicable, to pay Rent (a “Rent
Reserve Fund Draw”). If a Rent Reserve Fund Draw occurs, then Tenant will apply all net cash flow to replenish the Rent
Reserve Fund until the Rent Reserve Fund reaches the Minimum Required Liquidity. The Rent Reserve Fund will count as part of any
cash reserve requirement and in the Minimum Net Worth computation.

 

21.3        Letter
of Credit Requirements. The following requirements shall apply to any letters of credit posted by Tenant in connection with
this Lease (the “Letter of Credit Requirements”):

 

21.3.1           Each
letter of credit must be unconditional, irrevocable and in substantially the form attached hereto as Exhibit C (or another
form satisfactory to Landlord).

 

21.3.2           Each
letter of credit must be issued by a financial institution having offices located in New York, New York and otherwise reasonably
satisfactory to Landlord.

 

    	 	- 34 -	 

     

    

 

21.3.3           Tenant
understands that Landlord is relying upon the financial condition of the issuer of the letter of credit, as a primary inducement
to Landlord to lease the Premises to Tenant. In the event Moody’s rating on the issuer’s long term senior debt becomes
less than Baa2 while the letter of credit is outstanding, Landlord may notify Tenant of such fact, and Tenant shall have five (5)
days from the date of such notice within which to either (i) secure the letter of credit with additional collateral acceptable
to Landlord in its sole discretion; (ii) provide a substitute letter of credit in the same form as the letter of credit but issued
by a banking institution reasonably satisfactory to Landlord having its senior long term debt rated at least Baa2 by Moody’s
or equivalent rating service; or (iii) have the letter of credit confirmed by a banking institution reasonably satisfactory to
Landlord having its senior long term debt rated at least Baa2 by Moody’s or equivalent rating service. Failure to do one
of the foregoing within such time shall constitute an Event of Default and shall entitle Landlord to present the letter of credit
for payment at any time after such default, without providing Tenant any further notice or opportunity to cure, and the entire
sum drawn thereunder shall be held by Landlord as provided in subsection 21.3.13, below.

 

21.3.4           Each
letter of credit mush expressly permit partial drawings on multiple occasions.

 

21.3.5           Each
letter of credit shall provide that it is assignable by Landlord without charge to Landlord and without limitation on the permitted
number of assignments.

 

21.3.6           Unless
otherwise provided herein, the initial letter of credit shall expire no sooner than twelve (12) months from the date thereof. The
letter of credit must be satisfactorily renewed or replaced with replacement letters of credit meeting all of the Letter of Credit
Requirements except that the expiration date shall be no less than twelve (12) months from the date of issuance. Such renewal or
replacement letters of credit must be in Landlord’s possession no later than sixty (60) days prior to the expiration of the
then current letter of credit. Tenant shall be responsible for obtaining such renewal or replacement letters of credit at its sole
expense. Failure to renew a letter of credit in accordance with the foregoing will entitle Landlord to present the letter of credit
for payment, without providing Tenant any notice or opportunity to cure, and the entire sum drawn thereunder shall be held by Landlord
as provided in subsection 21.3.13, below.

 

21.3.7           Each
letter of credit shall provide that it will be honored upon a signed statement by Landlord that Landlord is entitled to draw upon
such letter of credit under this Lease and shall require no signature or statement from any party other than Landlord.

 

21.3.8           Each
letter of credit shall provide that, following the honor of any drafts in an amount less than the aggregate amount thereof, the
financial institution shall return the original letter of credit to Landlord and Landlord’s rights as to the remaining amount
of such letter of credit will not be extinguished.

 

    	 	- 35 -	 

     

    

 

21.3.9           In
the event of a transfer of Landlord’s interest in the Premises, Landlord may transfer any letter of credit held by Landlord
to the transferee and thereupon shall, without any further agreement between the parties, be released by Tenant from all liability
therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of any such letter of credit
to a new Landlord.

 

21.3.10         Landlord’s
rights in and to any letter of credit may be assigned and pledged by Landlord to a Mortgagee as security in connection with a Mortgage.

 

21.3.11         Tenant
will not assign or encumber the letter of credit or any part thereof and agrees that neither Landlord nor its successors or assigns
will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 

21.3.12         Upon
the occurrence of an Event of a Default, in addition to any or all of its other remedies contained in this Lease, Landlord shall
have the right (but not the obligation) to present the letter of credit for payment and to draw thereon, in whole or in part. In
the event of any such draw, Landlord may require that Tenant forthwith provide Landlord with an additional letter of credit in
an amount sufficient to restore the aggregate amounts of the letter(s) of credit held by Landlord to the amount prior to such draw.

 

21.3.13         Landlord
may use or apply the whole or any part of the amounts drawn on the letter(s) of credit (the “Proceeds”) for
the payment of Tenant’s obligations under this Lease. Any Proceeds not otherwise applied to amounts then due Landlord shall
serve as security for the prompt, full, and faithful performance by Tenant of the terms and provisions of this Lease. Tenant’s
obligation to furnish the letter of credit and any use, application or retention by Landlord of all or any part of the Proceeds
shall not be deemed in any way to constitute liquidated damages for any default by Tenant, or to limit the remedies to which Landlord
is otherwise entitled under the terms of this Lease. In the event the Proceeds are reduced below the original amount of the letter
of credit by such use or application, Tenant shall deposit with Landlord, within ten (10) days after notice, an amount sufficient
to restore the amount of the Proceeds to the original amount. Landlord shall not be required to keep the Proceeds separate from
Landlord’s general funds or pay interest on the Proceeds. Provided Tenant has performed all of its obligations under this
Lease, any remaining portion of the Proceeds shall be returned to Tenant within thirty (30) days subsequent to the expiration of
the Term. No trust or fiduciary relationship is created herein between Landlord and Tenant with respect to the Proceeds. If Landlord
transfers the Premises during the Term of this Lease, Landlord may pay the Proceeds to Landlord’s successor-in-interest,
in which event the transferring Landlord shall be released from all liability for the return of the Proceeds.

 

21.3.14         Landlord
shall return the letter of credit to Tenant within thirty (30) days following the expiration of the Term; provided however, no
such release shall occur at any time when Tenant has failed to perform any of its obligations under the under the Lease, regardless
of whether any applicable notice or cure periods have expired.

 

    	 	- 36 -	 

     

    

 

21.4        Subordination
of Debt and Distributions. Tenant will not subordinate the Rent payable under this Lease to any creditor obligation or debt.
Rent will be paid and received, and current under this Lease and replenishment of the Rent Reserve Fund shall occur, before (a) any
other creditor obligation or debt is paid; and (b) any profits or salaries are distributed to Tenant’s owners or their assignees
or Manager.

 

SECTION
22

 

22.1        Risk
of Loss. The risk of loss or of decrease in the enjoyment and beneficial use of the Premises as a consequence of the damage
or destruction thereof by fire, the elements, casualties, thefts, riots, wars or otherwise, or in consequence of foreclosures,
attachments, levies or executions (other than by Landlord and Persons claiming from, through or under Landlord) is assumed by Tenant,
and no such event shall entitle Tenant to any abatement of Rent.

 

SECTION
23

 

23.1        Tenant
Indemnification. In addition to the other indemnities contained herein, and notwithstanding the existence of any insurance
carried by or for the benefit of Landlord or Tenant, and without regard to the policy limits of any such insurance, Tenant shall
protect, indemnify, save harmless and defend Landlord and its Affiliates from and against all liabilities, obligations, claims,
damages penalties, causes of action, costs and expenses, including reasonable attorneys’, consultants’ and experts’
fees and expenses, imposed upon or incurred by or asserted against Landlord by reason of: (a) any accident, injury to or death
of Persons or loss of or damage to property occurring on or about the Premises or adjoining sidewalks thereto; (b) any use,
misuse, non-use, condition, maintenance or repair by Tenant of the Premises; or (c) any failure on the part of Tenant to perform
or comply with any of the terms of this Lease; (d) the non-performance of any of the terms and provisions of any and all existing
and future subleases of the Premises to be performed by any party thereunder; (e) any claim for malpractice, negligence or
misconduct committed by any Person on or working from the Premises or any Capital Additions; and (f) the violation of any
Legal Requirement. Any amounts that become payable by Tenant under this Section shall be paid within ten (10) days after demand
by Landlord, and if not timely paid shall bear interest at the Overdue Rate from the date of such determination to the date of
payment. Tenant, at its sole cost and expense, shall contest, resist and defend any such claim, action or proceeding asserted or
instituted against Landlord or its Affiliates or may compromise or otherwise dispose of the same as Tenant sees fit; provided,
however, that any legal counsel selected by Tenant to defend Landlord shall be reasonably satisfactory to Landlord. All indemnification
covenants are intended to apply to losses, damages, injuries, claims, etc. incurred directly by the indemnified parties and their
property, as well as by the indemnifying party or third party, and their property. For purposes of this Section, any acts or omissions
of Tenant, or by employees, agents, assignees, contractors, subcontractors or others acting for or on behalf of Tenant (whether
or not they are negligent, intentional, willful or unlawful), shall be strictly attributable to Tenant. It is understood and agreed
that payment shall not be a condition precedent to enforcement of the foregoing indemnification obligations.

 

23.2        Landlord
Indemnification. Landlord shall indemnify, defend and hold harmless Tenant and its Affiliates from and against all liabilities,
obligations, claims, damages penalties, causes of action, costs and expenses, including reasonable out of pocket attorneys’,
consultants’ and experts’ fees and expenses, actually incurred by Tenant and, in each case, net of any and all amounts
received from any insurance carried by or for the benefit of Landlord or Tenant and any other contractual and legal rights, by
reason of any accident, injury to or death of Persons or loss of or damage to property occurring on or about the Premises or adjoining
sidewalks thereto and caused by any grossly negligent act or willful misconduct of Landlord,
or Landlord’s agents, contractors or employees.

 

    	 	- 37 -	 

     

    

 

SECTION
24

 

		24.1	Transfers.

 

24.1.1           Assignment.

 

		(a)	Tenant and Subtenants shall not, without Landlord’s
prior written consent, either directly or indirectly or through one or more step transactions or tiered transactions, voluntarily
or by operation of law, (i) assign, convey, sell, pledge, mortgage, hypothecate or otherwise encumber, transfer or dispose
of all or any part of this Lease, either Sublease, Tenant’s leasehold estate hereunder or either Subtenant’s leasehold
estate thereunder; (ii) engage the services of any Person for the management or operation of all or any part of the Premises
or any Capital Additions, other than Manager pursuant to the Management Agreement; (iii) convey, sell, assign, transfer or
dispose of any stock or partnership, membership or other interests (whether equity or otherwise) in Tenant or either Subtenant
(which shall include any conveyance, sale, assignment, transfer or disposition of any stock or partnership, membership or other
interests (whether equity or otherwise) in any Controlling Person(s)), if such conveyance, sale, assignment, transfer or disposition
results, directly or indirectly, in a change in control of Tenant or either Subtenant (or in any Controlling Person(s)); (iv) dissolve,
merge, reorganize, recapitalize, exchange shares or consolidate Tenant or either Subtenant (which shall include any dissolution,
merger, reorganization, recapitalization, exchange of shares or consolidation of any Controlling Person) with any other Person,
if such dissolution, merger, reorganization, recapitalization, exchange of shares or consolidation, directly or indirectly, results
in a change in control of Tenant, either Subtenant or in any Controlling Person(s); (v) sell, convey, assign, or otherwise
transfer all or substantially all of the assets of Tenant or either Subtenant (which shall include any sale, conveyance, assignment,
or other transfer of all or substantially all of the assets of any Controlling Person(s)); or (vi) enter into or permit or
allow to be entered into any agreement or arrangement to do any of the foregoing or to grant any option or other right to any
Person to do any of the foregoing (each of the aforesaid acts referred to in clauses (a) through (g) being referred to herein
as a “Transfer”). If Tenant or either Subtenant so allows, causes, permits or suffers any such Transfer without
Landlord’s consent in each such instance, such event shall constitute an Event of Default by Tenant under this Lease.

 

    	 	- 38 -	 

     

    

 

		(b)	Notwithstanding the foregoing, Landlord’s consent
to an assignment of this Lease and the Subleases shall not be required as long as (i) the creditworthiness of the proposed
assignees are equal to or greater than the creditworthiness of Tenant as of the date of this Lease or the date of the proposed
assignment, whichever is higher; (ii) the proposed assignees meets all other requirements of this Lease, including without
limitation insurability and legal diligence, (iii) the assignee under this Lease must be the sole member of the assignees
of the Subleases; and (iii) Tenant and Guarantors are not released from liability under this Lease.

 

24.1.2           Subleases.
Landlord hereby consent to the Subleases, subject to the following:

 

		(a)	No termination of this Lease will automatically terminate
the Subleases and upon any termination of this Lease, the Subleases will, at the option of Landlord, become direct leases with
Landlord, following which the Subtenants shall have no claims, offsets or defenses to performance under the Subleases for matters
arising prior to the date the same became direct leases with Landlord.

 

		(b)	All rental payable under the Subleases shall be paid
directly by the Subtenants to Landlord.

 

		(c)	The Subtenants at all times shall remain wholly owned
subsidiaries of Tenant, and Tenant shall be the sole member of each Subtenant.

 

		(d)	Neither Subtenant shall have the right to terminate
either Sublease, or abate, reduce or offset any sums payable thereunder on account of a default by the Seller, as Sublessor.

 

		(e)	Tenant may not modify, amend or terminate any Sublease
without the prior written consent of Landlord.

 

24.1.3           Sub-subletting.
Subletting by the Subtenants will not require approval of Landlord but will be limited to Affiliates, physicians, ancillary licensed
medical operators, services and concessions (including pharmacy, ambulance service, physician joint venture, mobile imaging, etc.).
Landlord will not unreasonably withhold its consent for subleases of vacant space to other third party subtenants. Subtenants will
not pledge or encumber any sublease rents to any third party. Upon any Event of Default under this Lease, all sub-sublease rents
will be paid directly to Landlord. Tenant shall not, without Landlord’s prior written consent in each instance, allow, cause,
permit or suffer all or any portion of the Premises to be subleased, sub-subleased or licensed to, or used or occupied by, any
other Person and Landlord may, in Landlord’s sole and absolute discretion, grant, withhold or place conditions upon such
consent. If Tenant allows, causes, permits or suffers any sub-sublease or occupancy without Landlord’s prior written consent
if required hereunder, same shall constitute an Event of Default by Tenant under this Lease.

 

    	 	- 39 -	 

     

    

 

24.1.4           Costs.
Tenant shall reimburse Landlord for Landlord’s actual costs and expenses incurred in conjunction with the processing and
documentation of any request to Transfer, including attorneys’, architects’, engineers’ or other consultants’
fees, whether or not such Transfer is actually consummated.

 

24.1.5           No
Release of Tenant’s Obligations. No assignment, conveyance, subletting or other action pursuant to this Section shall
relieve Tenant of its obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder.

 

24.1.6           REIT
Protection. Anything contained in this Lease to the contrary notwithstanding, (a) no Transfer shall be consummated on
any basis such that the rental or other amounts to be paid by the Occupant, assignee, manager or other transferee thereunder would
be based, in whole or in part, on the income or profits derived by the business activities of the Occupant, assignee, manager or
other transferee; (b) Tenant shall not furnish or render any services to an Occupant, assignee, manager or other transferee
with respect to whom Transfer Consideration is required to be paid or manage or operate the Premises and/or any Capital Additions
so Transferred with respect to which consideration for the Transfer is being paid; (c) Tenant shall not consummate a Transfer
with any Person in which Landlord or its Affiliate owns an interest, directly or indirectly by applying constructive ownership
rules set forth in Section 856(d)(5) of the Code; and (d) Tenant shall not consummate a Transfer with any Person or in
any manner which could cause any portion of the amounts received by Landlord pursuant to this Lease or any Occupancy Arrangement
to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code, or any similar
or successor provision thereto or that could cause any other income of Landlord or its Affiliate to fail to qualify as income described
in Section 856(c)(2) of the Code.

 

24.1.7           Transfers
in Bankruptcy. In the event of a Transfer or assignment of this Lease pursuant to the provisions of the Bankruptcy Code, all
consideration payable or otherwise to be delivered in connection with such Transfer or assignment shall be paid or delivered to
Landlord, shall be and remain the exclusive property of Landlord and shall not constitute property of Tenant or of the estate of
Tenant within the meaning of the Bankruptcy Code. Any consideration constituting Landlord’s property pursuant to the immediately
preceding sentence and not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and be promptly paid
or delivered to Landlord. For purposes of this subsection, the term “consideration” shall mean and include money, services,
property and any other thing of value such as payment of costs, cancellation or forgiveness of indebtedness, discounts, rebates,
barter and the like. If any such consideration is in a form other than cash (such as in kind, equity interests, indebtedness earn-outs,
or other deferred payments, consulting or management fees, etc.), Landlord shall be entitled to receive in cash the then present
fair market value of such consideration.

 

    	 	- 40 -	 

     

    

 

SECTION
25

 

25.1        Officer’s
Certificates and Financial Statements.

 

25.1.1           Officer’s
Certificate. At any time and from time to time upon Tenant’s receipt of not less than ten (10) days’ prior written
request by Landlord, Tenant shall furnish to Landlord an Officer’s Certificate certifying (a) that this Lease is unmodified
and in full force and effect, or that this Lease is in full force and effect as modified and setting forth the modifications; (b) the
dates to which the Rent has been paid; (c) whether or not, to the best knowledge of Tenant, Landlord is in default in the
performance of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which Tenant
may have knowledge; and (d) responses to such other questions or statements of fact as Landlord, any ground or underlying
lessor, any purchaser or any current or prospective Mortgagee shall reasonably request. Tenant’s failure to deliver such
statement within such time shall constitute an acknowledgment by Tenant that (i) this Lease is unmodified and in full force
and effect except as may be represented to the contrary by Landlord; (ii) Landlord is not in default in the performance of any
covenant, agreement or condition contained in this Lease; and (iii) the other matters set forth in such request, if any, are true
and correct. Any such certificate furnished pursuant to this Section may be relied upon by Landlord and any current or prospective
Mortgagee, ground or underlying lessor or purchaser of the Premises or any portion thereof.

 

25.1.2           Statements.
Tenant shall furnish the following statements to Landlord:

 

		(a)	Tenant shall, as soon as available and in any event
within one hundred twenty (120) days after the end of each Fiscal Year, provide to Landlord annual audited financial statements
of Guarantors and Tenant for such Fiscal Year, including therein the balance sheets of Guarantors and Tenant as of the end of
such Fiscal Year and statements of earnings and statements of cash flow of Guarantors and Tenant for such Fiscal Year, in each
case certified in a manner acceptable to Landlord by independent certified public accountants of recognized national standing
selected by Tenant and reasonably acceptable to Landlord (the form of such certification to be reasonably satisfactory to Landlord),
prepared in accordance with GAAP, except as otherwise noted therein, on a basis consistent with prior periods and fairly presenting
the financial condition of Guarantors and Tenant at the end of such Fiscal Year and the immediately preceding Fiscal Year and
in comparative columnar form.

 

		(b)	Tenant shall, as soon as available and in any event
within forty-five (45) days after the end of each Quarter, provide to Landlord quarterly financial statements of the Tenant for
such Quarter, including therein the balance sheets of Guarantors and Tenant as of the end of such Quarter, and statements of earnings
and statements of cash flow of Guarantor and Tenant for such Quarter, in each case certified in a manner acceptable to Landlord
by such entity’s chief accounting officer as being prepared in accordance with GAAP, except as otherwise noted therein,
and that such quarterly financial statements fairly present to financial condition of each of Guarantors and Tenant as of the
end of such Quarter and year-to-date.

 

    	 	- 41 -	 

     

    

 

		(c)	within thirty (30) days after the end of each month
of each Fiscal Year (including the twelfth month of each Fiscal Year), a “balance sheet” and statements of revenues
and expenses for the Premises, all prepared by Tenant’s management in accordance with GAAP, but without footnotes, except
as otherwise noted therein, on a basis consistent with prior periods, and fairly presenting the financial condition of the Premises’
operation; without limiting the foregoing, such statements shall include a table of Occupants by payor source and shall include
such other information as may reasonably be requested by Landlord.

 

		(d)	with the statements submitted pursuant to subsections
(a) and (b) of this Section, a certificate signed on behalf of Tenant by the principal financial or accounting officer of Tenant
to the effect that no Event of Default specified herein nor any event which, upon n any accident, injury to or death of Persons
or loss of or damage to property occurring on or about the Premises or adjoining sidewalks thereto notice or with the passage
of time or both, would constitute such an Event of Default has occurred and is continuing, or, in each case, if any such Event
of Default or event has occurred and is continuing, specifying the nature and extent thereof;

 

		(e)	semi-annually, summary reports of the Hospitals’
inpatient/outpatient volume statistics and list of medical staff; and

 

		(f)	promptly, from time to time, such other information
regarding the operations, business affairs and financial condition of Tenant as Landlord may reasonably request, including, without
limitation, prompt notice of any Event of Default or any event which, with the passage of time or the giving of notice, or both,
would constitute an Event of Default and prompt notice of any action, suit or proceeding at law or in equity or by or before any
governmental instrumentality or other agency which, if adversely determined, would materially adversely affect Tenant’s
or the Premises’ business, operations, properties, assets or condition, financial or otherwise.

 

25.1.3           Licensing
Information. Tenant shall promptly furnish to Landlord complete copies of all surveys, examinations, inspections, compliance
certificates and similar reports of any kind issued to Tenant or its property manager by any governmental agencies or authorities
having jurisdiction over the licensing of the operation of the Premises that are material to the Premises or their ownership or
operation.

 

    	 	- 42 -	 

     

    

 

SECTION
26

 

26.1        Landlord’s
Right to Inspect and Show the Premises. Tenant shall permit Landlord and its authorized representatives, upon reasonable prior
notice, to (a) inspect the Premises and (b) exhibit the same to prospective purchasers and lenders, and during the last
twelve (12) months of the Term to prospective lessees or managers, in each instance during usual business hours and subject to
any reasonable security, health, safety or confidentiality requirements of Tenant or any Legal Requirement or Insurance Requirement.
Tenant shall cooperate with Landlord in exhibiting the Premises to prospective purchasers, lenders, lessees and managers. Additionally,
Landlord shall have the right to make site visits to the Premises for purposes of inspecting the Premises from time to time, as
Landlord may determine in its reasonable discretion. Notwithstanding the foregoing, in no event shall any of representative of
Landlord be permitted to enter into any rooms in which patients are present or enter into any area of the Hospitals that Tenant
or Subtenants reasonably designates as a secured area, including, without limitation, the pharmacy unless escorted by a representative
of Tenant or Subtenants.

 

SECTION
27

 

27.1        No
Waiver. No failure by Landlord to insist upon the strict performance of any term hereof or to exercise any right, power or
remedy hereunder and no acceptance of full or partial payment of Rent during the continuance of any default or Event of Default
shall constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this Lease, which
shall continue in full force and effect with respect to any other then existing or subsequent breach.

 

SECTION
28

 

28.1        Remedies
Cumulative. Each legal, equitable or contractual right, power and remedy of Landlord now or hereafter provided either in this
Lease or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power and remedy
and the exercise or beginning of the exercise by Landlord of any one or more of such rights, powers and remedies shall not preclude
the simultaneous or subsequent exercise by Landlord of any or all of such other rights, powers and remedies.

 

SECTION
29

 

29.1        Acceptance
of Surrender. No surrender to Landlord of this Lease or of the Premises shall be valid or effective unless agreed to and accepted
in writing by Landlord and no act by Landlord or any representative or agent of Landlord, other than such a written acceptance
by Landlord, shall constitute an acceptance of any such surrender.

 

SECTION
30

 

30.1        No
Merger. There shall be no merger of this Lease or of the leasehold estate created hereby by reason of the fact that the same
Person may acquire, own or hold, directly or indirectly, (a) this Lease or the leasehold estate created hereby or any interest
in this Lease or such leasehold estate; and (b) the fee estate in the Premises.

 

    	 	- 43 -	 

     

    

 

SECTION
31

 

31.1        Conveyance
by Landlord. Landlord may, without the consent or approval of Tenant, sell, transfer, assign, convey or otherwise dispose of
the Premises, subject, however, to this Lease. If Landlord or any successor owner of the Premises shall sell, transfer, assign,
convey or otherwise dispose of the Premises other than as security for a debt, Landlord or such successor owner, as the case may
be, shall thereupon be released from all future liabilities and obligations of Landlord with respect to the Premises under this
Lease arising or accruing from and after the date of such sale, transfer, assignment or other disposition and all such future liabilities
and obligations with respect to the Premises shall thereupon be binding upon such purchaser, grantee, assignee or transferee.

 

SECTION
32

 

32.1        Quiet
Enjoyment. So long as Tenant shall pay the Rent as the same becomes due and shall fully comply with all of the terms of this
Lease and fully perform its obligations hereunder, Tenant shall peaceably and quietly have, hold and enjoy the Premises for the
Term, free of any claim or other action by Landlord or anyone claiming by, through or under Landlord, but subject to all liens
and encumbrances of record as of the Commencement Date or created thereafter as permitted hereunder or thereafter consented to
by Tenant.

 

SECTION
33

 

33.1        Notices.
Any notice, consent, approval, demand or other communication required or permitted to be given hereunder (a “notice”)
must be in writing and may be served personally or by U.S. Mail. If served by U.S. Mail, it shall be addressed as follows:

 

	If to Landlord:	GMR Sherman, LLC, d/b/a Global Medical REIT Sherman, LLC
	 	c/o Global Medical REIT, Inc.
	 	4800 Montgomery Lane, Suite 450
	 	Bethesda, Maryland 20814
	 	Fax: 202 380 0891
	 	Attn: Alfonzo Leon
	 	 
	with a copy to:	Bradley Arant Boult Cummings LLP
	 	1600 Division Street, Suite 700
	 	Nashville, TN 37203
	 	Attn: Ann Peldo Cargile
	 	Fax: 615-252-6373
	 	 
	If to Tenant:	Texoma Hospital Partners, LLC
	 	Carrus Specialty Hospital, LLC
	 	4204 North Interstate 35
	 	Denton, TX 76207
	 	Attn: Anbu Nachimuthu, Manager
	 	Fax: 903-870-2731

 

    	 	- 44 -	 

     

    

 

	with a copy to:	Coats Rose, P.C.
	 	One Canal Place
	 	365 Canal Street, Suite 800
	 	New Orleans, LA 70130
	 	Attn: Vinson J. Knight
	 	Fax: 504-299-3071

 

Any notice which is personally served shall
be effective upon the date of service; any notice given by U.S. Mail shall be deemed effectively given, if deposited in the United
States Mail, registered or certified with return receipt requested, postage prepaid and addressed as provided above, on the date
of receipt, refusal or non-delivery indicated on the return receipt. In lieu of notice by U.S. Mail, either party may send notices
by facsimile or by a nationally recognized overnight courier service which provides written proof of delivery (such as UPS or Federal
Express). Any notice sent by facsimile shall be effective upon confirmation of receipt in legible form, provided that an original
of such facsimile is also sent to the intended addressee by another method approved in this Section, and any notice sent by a nationally
recognized overnight courier shall be effective on the date of delivery to the party at its address specified above as set forth
in the courier’s delivery receipt. Either party may, by notice to the other from time to time in the manner herein provided,
specify a different address for notice purposes.

 

SECTION
34

 

34.1        Appraiser.
If it becomes necessary to determine the Fair Market Value of the Premises for any purpose of this Lease, the same shall be determined
by an independent appraisal firm, in which one or more of the members, officers or principals of such firm are Members of the Appraisal
Institute (or any successor organization thereto) and who are expert in valuation of facilities used for the Primary Intended Use,
as may be reasonably selected by Landlord and approved by Tenant (the “Appraiser”). Landlord shall cause such
Appraiser to determine the Fair Market Value of the Premises as of the relevant date (giving effect to the impact, if any, of inflation
from the date of the Appraiser’s decision to the relevant date) and the determination of such Appraiser shall be final and
binding upon the parties. A written report of such Appraiser shall be delivered and addressed to each of Landlord and Tenant. To
the extent consistent with sound appraisal practice as then existing at the time of any such appraisal, an appraisal of Fair Market
Value for purposes of this Lease shall take into account and shall give appropriate consideration to all three customary methods
of appraisal (i.e., the cost approach, the sales comparison approach and the income approach), and no one method or approach shall
be deemed conclusive simply by reason of the nature of Landlord’s business or because such approach may have been used for
purposes of determining the fair market value of the Premises at the time of acquisition thereof by Landlord. This provision for
determination by appraisal shall be specifically enforceable to the extent such remedy is available under applicable law, and any
determination hereunder shall be final and binding upon the parties except as otherwise provided by applicable law. Tenant shall
pay the fees and expenses of the Appraiser and all other costs and expenses incurred in connection with such appraisal. If Landlord
and Tenant are unable to agree upon the Appraiser within fifteen (15) days after Landlord notifies Tenant of the identity of Landlord’s
selected Appraiser, then the following shall apply:

 

    	 	- 45 -	 

     

    

 

34.1.1           Within
fifteen (15) days after Tenant’s receipt of Landlord’s selected Appraiser, Tenant shall by notice to Landlord appoint
a second Appraiser meeting the requirements set forth above to act on its behalf. In such event, the Appraisers thus appointed
shall, within sixty (60) days after the date of Landlord’s notice of its originally selected Appraiser, proceed to determine
the Fair Market Value of the Premises as of the relevant date (giving effect to the impact, if any, of inflation from the date
of their decision to the relevant date); provided, however, that if Tenant fails to appoint its Appraiser within
the time permitted, or if two Appraisers shall have been so appointed but only one such Appraiser shall have made such determination
within such sixty (60) day period, then the determination of such sole Appraiser shall be final and binding upon the parties.

 

34.1.2           If
the two Appraisers shall have been appointed and shall have made their determinations within the respective requisite periods set
forth above and if the difference between the amounts so determined shall not exceed five percent (5%) of the lesser of such amounts,
then the Fair Market Value of the Premises shall be an amount equal to average of the two appraisals. If the difference between
the amounts so determined shall exceed five percent (5%) of the lesser of such amounts, then such two Appraisers shall have twenty
(20) days to appoint a third Appraiser meeting the above requirements, but if such Appraisers fail to do so, then either party
may request the CPR or AAA (as such terms are defined in Section 44.1.1) or any successor organization(s) thereto to appoint an
Appraiser meeting the above requirements within twenty (20) days of such request, and both parties shall be bound by any appointment
so made within such twenty (20) day period. If no such Appraiser shall have been appointed within such twenty (20) days or within
one hundred five (105) days of the original request for a determination of Fair Market Value, whichever is earlier, either Landlord
or Tenant may apply to any court having jurisdiction to have such appointment made by such court. Any Appraiser appointed by the
original Appraisers, by the CPR or AAA or by such court shall be instructed to choose one of the two (2) Fair Market Values of
the Premises, as determined by the original two (2) Appraisers, as the Fair Market Value within thirty (30) days after appointment
of such Appraiser.

 

34.1.3           The
determination by the third Appraiser described above (if applicable), shall be final and binding upon Landlord and Tenant as the
Fair Market Value of the Premises. This provision for determination by appraisal shall be specifically enforceable to the extent
such remedy is available under applicable law, and any determination hereunder shall be final and binding upon the parties except
as otherwise provided by applicable law.

 

34.1.4           If
the foregoing two (2) or three (3) Appraiser system is utilized, then Landlord and Tenant shall each pay the fees and expenses
of the Appraiser appointed by it and each shall pay one-half (1/2) of the fees and expenses of any third Appraiser.

 

    	 	- 46 -	 

     

    

 

SECTION
35

 

35.1        Intentionally
Omitted.

 

SECTION
36

 

36.1        Landlord
May Grant Liens. Without the consent of Tenant, Landlord may, from time to time, directly or indirectly, create or otherwise
cause to exist any Mortgage upon the Premises. This Lease is and at all times shall be subject and subordinate to any Mortgage
that may now or hereafter affect the Premises and to all renewals, modifications, consolidations, replacements and extensions thereof
or any part(s) or portion(s) thereof. This clause shall be self-operative and no further instrument of subordination shall be required;
provided, however, that in confirmation of such subordination, Tenant shall execute promptly any certificate or document
that Landlord or any Mortgagee may reasonably request for such purposes. If, in connection with obtaining financing or refinancing
for the Premises, a Mortgagee or prospective Mortgagee shall request reasonable modifications to this Lease as a condition to such
financing or refinancing, Tenant shall not withhold or delay its consent thereto.

 

36.2        Attornment.
If Landlord’s interest in the Premises is sold, conveyed or terminated upon the exercise of any remedy provided for in any
Mortgage, or otherwise by operation of law: (a) at the new owner’s option, Tenant shall attorn to and recognize the
new owner as Tenant’s Landlord under this Lease or enter into a new lease substantially in the form of this Lease with the
new owner, and Tenant shall take such actions to confirm the foregoing within ten (10) business days after request; and (b) the
new owner shall not be (i) liable for any act or omission of Landlord under this Lease occurring prior to such sale, conveyance
or termination, (ii) subject to any offset, abatement or reduction of rent because of any default of Landlord under this Lease
occurring prior to such sale, conveyance or termination, (iii) bound by any previous modification or amendment to this Lease or
any previous prepayment of more than one month’s rent, unless such modification, amendment or prepayment shall have been
approved in writing by the Mortgagee or, in the case of such prepayment, such prepayment of rent has actually been delivered to
such successor lessor, or (iv) liable for any security deposit or other collateral deposited or delivered to Landlord pursuant
to this Lease unless such security deposit or other collateral has actually been delivered to such successor lessor.

 

36.3        Compliance
with Mortgage Documents.

 

36.3.1           With
respect to any Mortgages and any refinancing of any Mortgage, prior to the execution and delivery of any Mortgage Documents relating
thereto, Landlord shall provide copies of the same to Tenant for Tenant’s review. Tenant acknowledges that any Mortgage Documents
executed by Landlord will impose certain obligations on the “Borrower” thereunder to comply with or cause the operator
and/or lessee of the Premises to comply with all representations, covenants and warranties contained therein relating to the Premises
and the operator and/or lessee thereof, including, covenants relating to (a) the maintenance and repair of the Premises; (b) maintenance
and submission of financial records and accounts of the operation of the Premises and related financial and other information regarding
the operator and/or lessee of the Premises; (c) the procurement of insurance policies with respect to the Premises; and (d) without
limiting the foregoing, compliance with all Legal Requirements relating to the Premises and the operation thereof for their Primary
Intended Use. For so long as any Mortgages encumber the Premises, or any portion thereof, Tenant covenants and agrees, at its sole
cost and expense and for the express benefit of Landlord, to operate and cause Manager to operate the Premises in strict compliance
with the terms and conditions of the Mortgage Documents (other than payment of any indebtedness evidenced or secured thereby) and
to timely perform and cause Manager to perform all of the obligations of Landlord relating thereto), or to the extent that any
of such duties and obligations may not properly be performed by Tenant or Manager, Tenant shall cooperate with and assist Landlord
in the performance thereof (other than payment of any indebtedness evidenced or secured thereby); provided, however, that
Landlord shall use good faith efforts to ensure that the duties and obligations imposed upon Tenant and/or Manager by the Mortgage
Documents relating thereto and this Section entered into after the Commencement Date are not materially more burdensome to Tenant
and/or Manager than Tenant’s obligations to Landlord under this Lease.

 

    	 	- 47 -	 

     

    

 

36.3.2           Without
limiting Tenant’s obligations pursuant to any other provision of this Section, during the Term of this Lease, Tenant acknowledges
and agrees that, except as expressly provided elsewhere in this Lease, it shall undertake or cause Manager to undertake at Tenant’s
own cost and expense the performance of any and all repairs, replacements, capital improvements, maintenance items and all other
requirements relating to the condition of the Premises which are required by any Mortgage Documents, and Tenant shall be solely
responsible and hereby covenants to fund and maintain any and all impound, escrow or other reserve or similar accounts required
under any Mortgage Documents as security for or otherwise relating to any operating or capital expenses of the Premises, including
any capital repair or replacement reserves and/or impounds or escrow accounts for Impositions or insurance premiums (a “Mortgage
Reserve Account”); provided, however, that any amount deposited by Tenant in any Mortgage Reserve Account pursuant
to this subsection shall be credited, in the case of any Impositions or insurance premiums, against any amounts otherwise required
to be deposited or impounded by Tenant with Landlord pursuant to Section 4.4 hereof. During
the Term of this Lease and provided that no Event of Default shall have occurred and be continuing hereunder, Tenant shall, subject
to the terms and conditions of the Mortgage Reserve Account and the requirements of the Mortgagee(s) thereunder, have access to
and the right to apply or use (including for reimbursement) to the same extent of Landlord all monies held in the Mortgage Reserve
Account for the purposes and subject to the limitations for which the Mortgage Reserve Account is maintained, and Landlord agrees
to reasonably cooperate with Tenant in connection therewith; provided, however, that notwithstanding terms for release or
application of any amounts held in any Mortgage Reserve Account, the right of Tenant to apply or use (including for reimbursement)
the same shall be subject further to the following: in the case of any amounts deposited in a Mortgage Reserve Account on account
of Impositions or taxes, the provisions of Section 4.4 as if such amounts were deposited
or impounded directly with Landlord.

 

    	 	- 48 -	 

     

    

 

SECTION
37

 

37.1        Hazardous
Substances. Tenant shall not allow any Hazardous Substance to be located, stored, disposed of, released or discharged in, on,
under or about the Premises or incorporated in the Premises; provided, however, that Hazardous Substances may be brought, kept,
used or disposed of in, on or about the Premises in quantities and for purposes similar to those brought, kept, used or disposed
of in, on or about similar facilities used for purposes similar to the Primary Intended Use and which are brought, kept, used and
disposed of in strict compliance with Legal Requirements.

 

37.2        Notices.
Tenant shall provide to Landlord promptly, and in any event immediately upon Tenant’s receipt thereof, a copy of any notice
or notification with respect to (a) any violation of a Legal Requirement relating to Hazardous Substances located in, on, or under
the Premises; (b) any enforcement, cleanup, removal, or other governmental or regulatory action instituted, completed or threatened
with respect to the Premises; (c) any claim made or threatened by any Person against Tenant or the Premises relating to damage,
contribution, cost recovery, compensation, loss, or injury resulting from or claimed to result from any Hazardous Substance; and
(d) any reports made to any federal, state or local environmental agency arising out of or in connection with any Hazardous Substance
in, on, under or removed from the Premises, including any complaints, notices, warnings or asserted violations in connection therewith.

 

37.3        Remediation.
If Tenant becomes aware of a violation of any Legal Requirement relating to any Hazardous Substance in, on, under or about the
Premises or any adjacent property thereto, or if Tenant, Landlord or the Premises becomes subject to any order of any federal,
state or local agency to repair, close, detoxify, decontaminate or otherwise remediate the Premises, Tenant shall immediately notify
Landlord of such event and, at its sole cost and expense, cure such violation or effect such repair, closure, detoxification, decontamination
or other remediation. If Tenant fails to implement and diligently pursue any such cure, repair, closure, detoxification, decontamination
or other remediation, Landlord shall have the right, but not the obligation, to carry out such action and to recover from Tenant
all of Landlord’s costs and expenses incurred in connection therewith.

 

37.4        Indemnity.
Tenant shall indemnify, defend, hold harmless, and reimburse Landlord for, from and against any and all costs, losses (including,
losses of use or economic benefit or diminution in value), liabilities, damages, assessments, lawsuits, deficiencies, demands,
claims and expenses (collectively, “Environmental Costs”) (whether or not arising out of third-party claims
and regardless of whether liability without fault is imposed, or sought to be imposed, on Landlord) actually incurred in connection
with, arising out of, resulting from or incident to, directly or indirectly, before or during the Term (a) the production, use,
generation, storage, treatment, transporting, disposal, discharge, release or other handling or disposition of any Hazardous Substances
from, in, on or about the Premises (collectively, “Handling”); (b) the presence of any Hazardous Substances
in, on, under or about the Premises and (c) the violation of any Legal Requirements (including Environmental Laws). “Environmental
Costs” include interest, costs of response, removal, remedial action, containment, cleanup, investigation, design, engineering
and construction, damages (including actual, consequential and punitive damages) for personal injuries and for injury to, destruction
of or loss of property or natural resources, relocation or replacement costs, penalties, fines, charges or expenses, attorney’s
fees, expert fees, consultation fees, and court costs, and all amounts paid in investigating, defending or settling any of the
foregoing. Without limiting the scope or generality of the foregoing, Tenant expressly agrees to reimburse Landlord for any and
all costs and expenses incurred by Landlord:

 

    	 	- 49 -	 

     

    

 

37.4.1           In
investigating any and all matters relating to the Handling of any Hazardous Substances, in, on, from, under or about the Premises;

 

37.4.2           In
bringing the Premises into compliance with all Legal Requirements; and

 

37.4.3           Removing,
treating, storing, transporting, cleaning-up and/or disposing of any Hazardous Substances used, stored, generated, released or
disposed of in, on, from, under or about the Premises or offsite.

 

If any claim is made hereunder, Tenant agrees
to pay such claim promptly, and in any event to pay such claim within thirty (30) calendar days after receipt by Tenant of notice
thereof. If any such claim is not so paid, Tenant agrees also to pay interest on the amount paid from the date of the first notice
of such claim, at the Overdue Rate.

 

37.5        Environmental
Inspection. If Landlord reasonably believes the Premises to be in violation of applicable Environmental Laws, then (a) Landlord
shall have the right, from time to time, and upon not less than five (5) days’ written notice to Tenant, except in the case
of an emergency in which event no notice shall be required, to conduct an inspection of the Premises and all Capital Additions
to determine the existence or presence of Hazardous Substances on or about the Premises or any such Capital Additions; (b) Landlord
shall have the right to enter and inspect the Premises and all Capital Additions, conduct any testing, sampling and analyses it
deems necessary and shall have the right to inspect materials brought into the Premises or any such Capital Additions; (c) Landlord
may retain such experts as it deems necessary or desirable to conduct the inspection, perform the tests referred to herein, and
to prepare a written report in connection therewith; and (d) all costs and expenses incurred by Landlord under this Section shall
be paid on demand as Additional Charges by Tenant to Landlord. Notwithstanding the foregoing, in no event shall any of representative
of Landlord be permitted to enter into any rooms in which patients are present or enter into any area of the Hospitals that Tenant
or Subtenants reasonably designates as a secured area, including, without limitation, the pharmacy unless escorted by a representative
of Tenant or Subtenants. Failure to conduct an environmental inspection or to detect unfavorable conditions if such inspection
is conducted shall in no fashion be intended as a release of any liability for environmental conditions subsequently determined
to be associated with or to have occurred during Tenant’s tenancy. Tenant shall remain liable for any environmental condition
related to or having occurred during its tenancy regardless of when such conditions are discovered and regardless of whether or
not Landlord conducts an environmental inspection at the termination of this Lease. The obligations set forth in this Section shall
survive the expiration or earlier termination of the Lease.

 

    	 	- 50 -	 

     

    

 

SECTION
38

 

38.1        Memorandum
of Lease. Landlord and Tenant shall, promptly upon the request of either, enter into one or more short form memoranda of this
Lease, each in form suitable for recording under the laws of the applicable State. Tenant shall pay all costs and expenses of recording
any such memoranda and shall fully cooperate with Landlord in removing from record any such memoranda upon the expiration or earlier
termination of the Term.

 

SECTION
39

 

Intentionally Omitted

 

SECTION
40

 

40.1        Right
of First Refusal to Provide Financing. In the event Tenant desires to develop or recapitalize any portion of the Land, including
but not limited to construction of medical office building(s), outpatient treatment facilities, expansions or additions to the
existing facility, or parking garage(s) (an “Additional Facility”). Landlord (and/or its Affiliates) shall have
a right of first refusal to provide such financing by an amendment of this Lease to provide such additional capital, or a separate,
market-competitive financial instrument. In the event Tenant desires to construct the Additional Facility, Tenant shall seek bids
(in the form of commitment letters or letters of intent) (each, a “Financing Bid”) from third party lenders
for such financing (which financing must be for a minimum term of five (5) years) and shall deliver to Landlord a copy of any Financing
Bid that Tenant desires to accept. Within thirty (30) days after Landlord’s receipt of such Financing Bid, Landlord may elect
to provide the same financing to Tenant in the same amount, and upon the same terms, as are set forth in such Financing Bid. Such
election shall be made if at all, by Landlord (or its Affiliates) providing written notice of such election to Tenant within said
thirty (30) day period after Landlord’s receipt of such Financing Bid. If Landlord makes such election in a timely manner,
Landlord shall be entitled to provide such financing to Tenant. If Landlord fails to make such election in a timely manner, Landlord
shall be deemed to have waived its right to provide such financing, and Tenant may obtain such financing from other sources. If
Landlord does not elect to be the financing source for such Additional Facility, Tenant will ground lease the portion of the Land
for such Additional Facility from Landlord at prevailing market rates that meet with Landlord’s approval. All such Additional
Facilities shall be subject to the reasonable approval of Landlord so as not to impair the operation of the premises for the Primary
Intended Use.

 

SECTION
41

 

41.1        Authority.
If Tenant is a corporation, limited liability company, trust, or partnership, Tenant and each individual executing this Lease on
behalf of Tenant represent and warrant that each is duly authorized to execute and deliver this Lease on behalf of Tenant and shall
concurrently with the execution and delivery of this Lease to Landlord deliver to Landlord evidence of such authority satisfactory
to Landlord.

 

    	 	- 51 -	 

     

    

 

SECTION
42

 

42.1        Attorneys’
Fees. If Landlord or Tenant brings an action or other proceeding (including an arbitration pursuant to Section 44) against
the other to enforce any of the terms, covenants or conditions hereof or any instrument executed pursuant to this Lease, or by
reason of any breach or default hereunder or thereunder, the party prevailing in any such action or proceeding and any appeal thereupon
shall be paid all of its costs and reasonable out of pocket attorneys’ fees incurred therein. In addition to the foregoing
and other provisions of this Lease that specifically require Tenant to reimburse, pay or indemnify against Landlord’s attorneys’
fees, Tenant shall pay, as Additional Charges, all of Landlord’s reasonable out of pocket attorneys’ fees incurred
in connection with the administration or enforcement of this Lease, including attorneys’ fees incurred in connection with
Tenant’s renewal of this Lease for any Extended Term, the review of any letters of credit, the review, negotiation or documentation
of any subletting, assignment, or management arrangement or any consent requested in connection therewith, and the collection of
past due Rent.

 

SECTION
43

 

43.1        Brokers.
Tenant warrants that it has not had any contact or dealings with any Person or real estate broker (except for the Tenant’s
broker described in the Purchase Contract, which broker shall not be entitled to a separate commission upon the rents payable pursuant
to this Lease) which would give rise to the payment of any fee or brokerage commission in connection with this Lease, and Tenant
shall indemnify, protect, hold harmless and defend Landlord from and against any liability with respect to any fee or brokerage
commission arising out of any act or omission of Tenant. Landlord warrants that it has not had any contact or dealings with any
Person or real estate broker which would give rise to the payment of any fee or brokerage commission in connection with this Lease,
and Landlord shall indemnify, protect, hold harmless and defend Tenant from and against any liability with respect to any fee or
brokerage commission arising out of any act or omission of Landlord.

 

SECTION
44

 

44.1        Submission
to Arbitration.

 

44.1.1           Except
as provided below, any controversy, dispute or claim of whatsoever nature arising out of, in connection with, or in relation to
the interpretation, performance or breach of this Lease, including any claim based on contract, tort or statute, shall be determined
by final and binding, confidential arbitration in accordance with the then current CPR Institute for Dispute Resolution Rules for
Non-Administered Arbitration of Business Disputes (“CPR”), by a sole arbitrator mutually selected by Landlord
and Tenant from among the CPR Panel of Distinguished Neutrals; provided, however, that if the CPR (or any successor organization
thereto) no longer exists, then such arbitration shall be administered by the American Arbitration Association (“AAA”)
in accordance with its then-existing Commercial Arbitration Rules, and the sole arbitrator shall be selected in accordance with
such AAA rules. Any arbitration hereunder shall be governed by the United States Arbitration Act, 9 U.S.C. 1-16 (or any successor
legislation thereto), and judgment upon the award rendered by the arbitrator may be entered by any state or federal court having
jurisdiction thereof. If Landlord and Tenant are not able to agree on an arbitrator, then an arbitrator shall be appointed by the
CPR or AAA upon application by either party. The cost of the arbitrator and the expenses relating to the arbitration (exclusive
of legal fees) shall be borne equally by Landlord and Tenant unless otherwise specified in the award of the arbitrator. Such fees
and costs paid or payable to the arbitrator shall be included in “costs and reasonable attorneys’ fees” for purposes
of Section 42.1 and the arbitrator shall specifically have the power to award to the prevailing party pursuant to such Section
42.1 such party’s costs and expenses incurred in such arbitration, including fees and costs paid to the arbitrator.

 

    	 	- 52 -	 

     

    

 

44.1.2           The
provisions of this Section shall not apply to:

 

		(a)	Any unlawful detainer or other similar summary or expedited
proceeding for ejectment or recovery of possession of the Premises instituted by Landlord in accordance with applicable Legal
Requirements as the result of an Event of Default or alleged Event of Default by Tenant pursuant to this Lease, and any compulsory
counterclaim of Tenant with respect thereto. In addition, if permitted by applicable Legal Requirements, Landlord shall be entitled
in connection with any such proceeding to seek any damages to which it is entitled at law, including those set forth in Section
16.

 

		(b)	Any specific controversy, dispute, question or issue
as to which this Lease specifically provides another method of determining such controversy, dispute, question or issue and provides
that a determination pursuant to such method is final and binding, unless both Landlord and Tenant agree in writing to waive such
procedure and proceed instead pursuant to this Section.

 

		(c)	Any request or application for an order or decree granting
any provisional or ancillary remedy (such as a temporary restraining order or injunction) with respect to any right or obligation
of either party to this Lease, and any preliminary determination of the underlying controversy, dispute, question or issue as
is required to determine whether or not to grant such relief. A final and binding determination of such underlying controversy,
dispute, question or issue shall be made by an arbitration conducted pursuant to this Section after an appropriate transfer or
reference to the arbitrator selected pursuant to this Section upon motion or application of either party hereto. Any ancillary
or provisional relief which is granted pursuant to this clause (c) shall continue in effect pending an arbitration determination
and entry of judgment thereon pursuant to this Section.

 

    	 	- 53 -	 

     

    

 

SECTION
45

 

45.1        Miscellaneous.

 

45.1.1           Survival.
Anything contained in this Lease to the contrary notwithstanding, all claims against, and liabilities and indemnities of, Tenant
or Landlord arising prior to the expiration or earlier termination of the Term shall survive such expiration or termination. In
addition, all claims against, and all liabilities and indemnities hereunder of, Tenant shall continue in full force and effect
and in favor of the Landlord named herein and its successors and assigns, notwithstanding any conveyance of the Premises to Tenant.

 

45.1.2           Severability.
If any term or provision of this Lease or any application thereof shall be held invalid or unenforceable, the remainder of this
Lease and any other application of such term or provision shall not be affected thereby.

 

45.1.3           Non-Recourse.
Tenant specifically agrees to look solely to the Premises (and any proceeds thereof) for recovery of any judgment from Landlord.
It is specifically agreed that no constituent partner in Landlord or officer, director or employee of Landlord shall ever be personally
liable for any such judgment or for the payment of any monetary obligation to Tenant. The provision contained in the foregoing
sentence is not intended to, and shall not limit any right that Tenant might otherwise have to obtain injunctive relief against
Landlord or any action not involving the personal liability of Landlord. Furthermore, except as otherwise expressly provided herein,
in no event shall Landlord ever be liable to Tenant for any indirect or consequential damages suffered by Tenant from whatever
cause.

 

45.1.4           Licenses
and Operation Transfer Agreements. Upon the expiration or earlier termination of the Term, Tenant shall use its best efforts
to transfer to Landlord or Landlord’s nominee the Premises in a fully operational condition and shall cooperate with Landlord
or Landlord’s designee or nominee in connection with the processing by Landlord or Landlord’s designee or nominee of
any applications for all licenses, operating permits and other governmental authorization, all contracts, including contracts with
governmental or quasi-governmental entities, business records, data, patient records, and patient trust accounts, which may be
necessary or useful for the operation of the Premises; provided that the costs and expenses of any such transfer or the processing
of any such application shall be paid by Landlord or Landlord’s designee or nominee. Tenant shall not permit or commit any
act or be remiss in the undertaking of any act that would jeopardize the licensure or certification of the Premises, and Tenant
shall comply (and shall cause Subtenants to comply) with all reasonable requests for an orderly transfer of the same upon the expiration
or early termination of the Term. Without limiting the generality of the foregoing, if requested by Landlord or a proposed replacement
operator for the Premises, Tenant hereby agrees to cause Subtenants to enter into a reasonable operations transfer agreements with
such replacement operators as is customary in the transfer to a new operator of the operations of a facility similar to the Premises.
Tenant shall not unreasonably withhold, condition or delay its consent to entering into any interim subleases or management agreements
as may be necessary to effectuate an early transfer of the operations of the Premises prior to the time that such replacement operator
holds all licenses and permits from all applicable governmental authorities with jurisdiction necessary to operate the Premises
for their Primary Intended Use. In addition, upon request, Tenant shall promptly cause Subtenants to deliver copies of all books
and records relating to the Premises and operations thereon to Landlord or Landlord’s designee or nominee. Tenant shall indemnify,
defend, protect and hold harmless Landlord from and against any loss, damage, cost or expense incurred by Landlord or Landlord’s
designee or nominee in connection with the correction of any and all deficiencies of a physical nature identified by any governmental
authority responsible for licensing the Premises in the course of any change of ownership inspection and audit.

 

    	 	- 54 -	 

     

    

 

45.1.5           Successors
and Assigns. This Lease shall be binding upon Landlord and its successors and assigns and, subject to the provisions of Section
24.1, upon Tenant and its successors and assigns.

 

45.1.6           Termination
Date. If this Lease is terminated by Landlord or Tenant under any provision hereof, and upon the expiration of the Term (collectively,
the “termination date”), the following shall pertain:

 

(a)          Tenant
shall vacate and surrender the Premises to Landlord in the condition required by this Lease. Prior to such vacation and surrender,
Tenant shall remove any items which Tenant is permitted or required to remove hereunder. Tenant shall, at Tenant’s cost,
repair any damage to such Premises caused by such vacation and/or removal of any items which Tenant is required or permitted hereunder
to remove. Any items that Tenant is permitted to remove but which Tenant fails to remove prior to the surrender to Landlord of
such Premises shall be deemed abandoned by Tenant, and Landlord may retain or dispose of the same as Landlord sees fit without
claim by Tenant thereto or to any proceeds thereof. If Landlord elects to remove and dispose of any such items abandoned by Tenant,
the cost of such removal and disposal shall be an Additional Charge payable by Tenant to Landlord upon demand.

 

(b)          Without
limiting any other provision of this Lease, upon any such termination or expiration of this Lease, the following shall pertain:

 

(i)          Intentionally
Omitted.

 

(ii)         Tenant
shall remain liable for the cost of all utilities used in or at the Premises through the termination date and accrued and unpaid,
whether or not then billed, as of the termination date until full payment thereof by Tenant. Tenant shall obtain directly from
the companies providing such services closing statements for all services rendered through the termination date and shall promptly
pay the same. If any utility statement with respect to such Premises includes charges for a period partially prior to and partially
subsequent to the termination date, such charges shall be prorated as between Landlord and Tenant, with Tenant responsible for
the portion thereof (based upon a fraction the numerator of which is the number of days of service on such statement through the
termination date and the denominator of which is the total number of days of service on such statement) through the termination
date and Landlord shall be responsible for the balance. The party receiving any such statement which requires proration hereunder
shall promptly pay such statement and the other party shall, within ten (10) days after receipt of a copy of such statement, remit
to the party paying the statement any amount for which such other party is responsible hereunder.

 

    	 	- 55 -	 

     

    

 

(iii)        Tenant
shall remain responsible for any and all Impositions imposed against the Premises or the Personal Property with a lien date prior
to the termination date (irrespective of the date of billing therefor) and for its pro rata share of any Impositions imposed in
respect of the tax-fiscal period during which the Term terminates as provided in Section 4.1.6, and Tenant shall indemnify and
hold Landlord harmless with respect to any claims for such Impositions or resulting from nonpayment thereof.

 

(iv)        Intentionally
Omitted.

 

(v)         Tenant
shall observe any covenant or agreement of Tenant in this Lease that is intended to or expressly provides that it shall survive
the expiration or sooner termination of this Lease.

 

45.1.7           Governing
Law. THIS LEASE WAS NEGOTIATED IN THE STATE IN WHICH THE PREMISES ARE LOCATED, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL
RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY. ACCORDINGLY, IN ALL RESPECTS THIS LEASE (AND ANY
AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL
LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED (WITHOUT REGARD OF PRINCIPLES OR CONFLICTS OF LAW) AND ANY APPLICABLE LAWS
OF THE UNITED STATES OF AMERICA.

 

45.1.8           Waiver
of Trial by Jury. EACH OF LANDLORD AND TENANT ACKNOWLEDGES THAT IT HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT
TO ITS RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTION OF THE UNITED STATES, AND THE LAW OF THE STATE IN WHICH THE PREMISES ARE
LOCATED. EACH OF LANDLORD AND TENANT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION (A) ARISING UNDER THIS LEASE (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR (B) IN ANY MANNER CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF LANDLORD AND TENANT WITH RESPECT TO THIS LEASE (OR ANY AGREEMENT FORMED PURSUANT TO
THE TERMS HEREOF) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS
RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREINAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE; EACH OF LANDLORD AND TENANT HEREBY AGREES AND CONSENTS THAT, SUBJECT TO SECTION 44, ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT EITHER PARTY MAY FILE A COPY OF THIS SECTION WITH ANY
COURT AS CONCLUSIVE EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

    	 	- 56 -	 

     

    

 

45.1.9           Tenant
Counterclaim and Equitable Remedies. Tenant hereby waives the right to interpose counterclaim (other than compulsory counterclaims)
in any summary proceeding instituted by Landlord against Tenant in any court or in any action instituted by Landlord in any court
for unpaid Rent under this Lease. In the event that Tenant claims or asserts that Landlord has violated or failed to perform a
covenant of Landlord not to unreasonably withhold or delay Landlord’s consent or approval hereunder, or in any case where
Landlord’s reasonableness in exercising its judgment is in issue, Tenant’s sole remedy shall be an action for specific
performance, declaratory judgment or injunction, and in no event shall Tenant be entitled to any monetary damages for a breach
of such covenant, and in no event shall Tenant claim or assert any claims for monetary damages in any action or by way of set-off
defense or counterclaim, and Tenant hereby specifically waives the right to any monetary damages or other remedies in connection
with any such claim or assertion.

 

45.1.10         Entire
Agreement. This Lease, the Exhibits hereto and thereto and such other documents as are contemplated hereunder or thereunder,
constitutes the entire agreement of the parties with respect to the subject matter hereof, and may not be changed or modified except
by an agreement in writing signed by the parties. Landlord and Tenant hereby agree that all prior or contemporaneous oral understandings,
agreements or negotiations relative to the leasing of the Premises are merged into and revoked by this Lease.

 

45.1.11         Headings.
All titles and headings to sections, subsections, paragraphs or other divisions of this Lease are only for the convenience of the
parties and shall not be construed to have any effect or meaning with respect to the other contents of such sections, subsections,
paragraphs or other divisions, such other content being controlling as to the agreement among the parties hereto.

 

45.1.12         Counterparts.
This Lease may be executed in any number of counterparts, each of which shall be a valid and binding original, but all of which
together shall constitute one and the same instrument. Executed counterparts of this Lease or any amendment hereto may be delivered
by electronic or facsimile transmission.

 

45.1.13         Joint
and Several. If more than one Person is the Tenant under this Lease, the liability of such Persons under this Lease shall be
joint and several.

 

45.1.14         Interpretation.
Both Landlord and Tenant have been represented by counsel and this Lease and every provision hereof has been freely and fairly
negotiated. Consequently, all provisions of this Lease shall be interpreted according to their fair meaning and shall not be strictly
construed against any party.

 

    	 	- 57 -	 

     

    

 

45.1.15         Time
of Essence. Time is of the essence of this Lease and each provision hereof in which time of performance is established.

 

45.1.16         Further
Assurances. The parties agree to promptly sign all documents reasonably requested to give effect to the provisions of this
Lease.

 

SECTION
46

 

46.1        Provisions
Relating to Treatment of Lease. Landlord and Tenant hereby acknowledge and agree that this Lease shall be treated as an operating
lease for all purposes and not as a synthetic lease, financing lease or loan, and that Landlord shall be entitled to all the benefits
of ownership of the Premises, including depreciation for all federal, state and local tax purposes.

 

SECTION
47

 

47.1        Covenants
with Respect to Operations and Fundamental Changes of Tenant. Tenant hereby represents, warrants and covenants as of the date
hereof and until the expiration or earlier termination of this Lease, that Tenant:

 

47.1.1           will
not (and will not permit any limited or general partner, member or shareholder to) amend, modify or otherwise change its partnership
certificate, partnership agreement, articles of incorporation, bylaws, certificate of formation, limited liability company agreement,
operating agreement, articles of organization, or other formation agreement or document, as applicable, in any material term or
manner, or in a manner which adversely affects Tenant’s existence as a single purpose entity without the prior written consent
of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed;

 

47.1.2           to
the full extent permitted by law, will not liquidate or dissolve (or suffer any liquidation or dissolution), or enter into any
transaction of merger or consolidation, or acquire by purchase or otherwise all or substantially all the business or assets of,
or any stock or other evidence of beneficial ownership of, any entity without the prior written consent of Landlord;

 

47.1.3           has
not and will not guarantee, pledge its assets for the benefit of, or otherwise become liable, on or in connection with, any obligation
of any other Person without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned
or delayed;

 

47.1.4           will
not own any asset other than its leasehold interest in the Premises without the prior written consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed;

 

47.1.5           is
not engaged and will not engage, either directly or indirectly, in any business other than the lease, management and operation
of the applicable Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned
or delayed;

 

    	 	- 58 -	 

     

    

 

47.1.6           has
maintained and will maintain an arm’s length relationship with its Affiliates and its shareholders and any other parties
furnishing services to it;

 

47.1.7           has
not incurred and will not incur any debt, secured or unsecured, direct or contingent (including guaranteeing any obligation);

 

47.1.8           has
not made and will not make any loans or advances to any third party (including any Affiliate);

 

47.1.9           has
done or caused to be done and will do all things necessary to preserve its existence, and will observe all formalities applicable
to it and will do all things necessary to maintain its identity as an entity separate and distinct from its Affiliates;

 

47.1.10         will
conduct and operate its business in its own name and as presently conducted and operated;

 

47.1.11         will
maintain financial statements, books and records and bank accounts separate from those of its Affiliates, including, without limitation,
its general partners, shareholders or members, as applicable;

 

47.1.12         will
be, and at all times will hold itself out to the public as, a legal entity separate and distinct from any other entity (including,
without limitation, any Affiliate or any partner, member or shareholder of Tenant);

 

47.1.13         will
file its own tax returns (except to the extent it is treated as a division of another taxpayer for tax purposes) and pay any taxes
so required to be paid under applicable law; provided, however, that so long as Tenant’s tax liability and its income and
expenses are readily determinable based on a review of Tenant’s books and records, it may file consolidated tax returns (provided
that Tenant shall maintain sufficient books and records to determine its separate tax obligations for any particular reporting
periods);

 

47.1.14         will
maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations;

 

47.1.15         will
not commingle the funds and other assets of Tenant with those of any general partner, shareholder, member, Affiliate, principal
or any other Person;

 

47.1.16         has
and will maintain its assets in such a manner that it is not costly or difficult to segregate, ascertain or identify its individual
assets from those of any Affiliate or any other Person;

 

    	 	- 59 -	 

     

    

 

47.1.17         does
not and will not hold itself out to be responsible for the debts or obligations of any other Person;

 

47.1.18         will
not hold title to Tenant’s assets other than in Tenant’s name;

 

47.1.19         will
deposit all of its funds in checking accounts, savings accounts, time deposits or certificates of deposit in its own name or invest
such funds in its own name;

 

47.1.20         will
participate in the fair and reasonable allocation of any and all overhead expenses and other common expenses for facilities, goods
or services provided to multiple entities;

 

47.1.21         without
limiting any other provision of this Lease, has caused Subtenants to obtained and will caused Subtenants to maintain all consents,
licenses, permits, approvals or authorizations from governmental authorities or third parties that are necessary for the operation
of the Hospitals in the Premises for the Primary Intended Use, including all health care licenses and permits.

 

[Signature pages follow]

 

    	 	- 60 -	 

     

    

 

IN WITNESS WHEREOF, the
parties have caused this lease to be executed and attested by their respective officers thereunto duly authorized.

 

	 	 	“TENANT”
	 	 	 
	WITNESSED:	 	SDB PARTNERS, LLC,
	 	 	a Texas limited liability company
	 	 	 
	/s/ Melissa Dovel	 	By:	/s/ Minaxi Rathod
	Witness	 	Minaxi Rathod, President
	 	 	 
	/s/ Karen J. McKearan	 	 
	Witness	 	 

 

    	 	- 61 -	 

     

    

 

IN WITNESS WHEREOF, the
parties have caused this lease to be executed and attested by their respective officers thereunto duly authorized.

 

	 	 	“LANDLORD”
	 	 	 
	WITNESSED:	 	GMR SHERMAN, LLC, d/b/a
	 	 	GLOBAL MEDICAL REIT SHERMAN, LLC
	 	 	a Delaware limited liability company
	 	 	 	 
	/s/ Sarah Fry	 	By: 	Global Medical REIT L.P., a Delaware 
	Witness	 	 	limited partnership, its Sole Member  

 

	 	 	By:	Global Medical REIT GP LLC, a
	 	 	 	Delaware limited liability company,
	 	 	 	its General Partner
	/s/ Danica Holley	 	 	 
	Witness	 	By:	Global Medical REIT Inc.,
	 	 	 	a Maryland corporation,
	 	 	 	its Sole Member

 

	 	By:	/s/Donald McClure
	 	 	Donald McClure,
	 	 	Chief Financial Officer and
	 	 	Treasurer

 

    	 	- 62 -	 

     

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

Lot 4, Replat of CARRUS MEDICAL
PLAZA, a replat of Lot 2, of Post Oak Crossing East Addition, to the City of Sherman, Grayson County, Texas, according to the Plat
thereof recorded in Volume 20, Pages 174-175, of the Plat Records of Grayson County, Texas.

 

     

     

    

 

EXHIBIT A-1

BUILD-OUT SPACE

 

     

     

    

 

EXHIBIT B

List of Landlord’s Personal Property

 

All machinery, equipment,
furniture, furnishings, moveable walls or partitions, or trade fixtures or other tangible personal property that is owned by Landlord
and is used or useful in Tenant’s business on the Premises, excluding items, if any, included within the definition of Fixtures,
but specifically including those items described in Exhibit B- 1 hereto.

 

     

     

    

 

EXHIBIT B-1

Itemization of Landlord’s Personal Property

 

None

 

     

     

    

 

EXHIBIT C

Letter of Credit form

 

IRREVOCABLE STANDBY LETTER OF CREDIT

 

LETTER OF CREDIT NO.:______________________

 

DATE:_____________, 20__

 

ISSUING BANK:_____________________________

 

ADDRESS: _____________________________

     _____________________________

 

FACSIMILE NO.:_________________________

 

EXPIRATION DATE:_____________________________,
20__, AT OUR COUNTERS

 

AMOUNT:_____________________________ US DOLLARS
($___________________)

 

BENEFICIARY:_____________________________

 

ADDRESS:_____________________________

     _____________________________

 

FACSIMILE NO.:________________________

 

WE HEREBY ESTABLISH IN YOUR FAVOR OUR
IRREVOCABLE LETTER OF CREDIT NO. ____________________IN THE AMOUNT OF ____________________ US DOLLARS ($____________________)
FOR THE ACCOUNT OF [TENANT]. DRAW(S) UP TO THE MAXIMUM AGGREGATE AMOUNT AVAILABLE UNDER THIS LETTER OF CREDIT, ARE PAYABLE BY
US WITHIN TWO BUSINESS DAYS AFTER OUR RECEIPT ON OR PRIOR TO OUR CLOSE OF BUSINESS ON THE EXPIRATION DATE, OF ONE OR MORE
DRAW STATEMENTS PURPORTEDLY SIGNED BY YOUR AUTHORIZED OFFICER OR REPRESENTATIVE OR, IF THIS LETTER OF CREDIT IS TRANSFERRED,
BY AN AUTHORIZED OFFICER OR REPRESENTATIVE OF ANY TRANSFEREE BENEFICIARY. EACH DRAW STATEMENT SHOULD BE ADDRESSED TO US,
REFERENCE THIS LETTER OF CREDIT BY NUMBER, SPECIFY THE AMOUNT OF THE DRAW REQUEST, SET FORTH WIRE TRANSFER INSTRUCTIONS AND
CONTAIN, IN SUBSTANCE, THE FOLLOWING STATEMENT (WITH THE AMOUNT OF THE DRAW REQUEST AND WIRE TRANSFER INSTRUCTIONS
COMPLETED): “BENEFICIARY HEREBY DRAWS ON LETTER OF CREDIT NO. ____________________ IN THE AMOUNT OF $______________. FUNDS IN
RESPECT OF THIS DRAW REQUEST SHOULD BE WIRE TRANSFERRED TO ___________ BANK, ROUTING NO. __________, ACCOUNT NO. ____________
FOR CREDIT TO THE ACCOUNT OF ____________________________.” NO FURTHER INFORMATION SHALL BE REQUIRED ON SUCH
DEMAND.

 

     

     

    

 

THIS LETTER OF CREDIT SHALL INITIALLY EXPIRE
ON ____________________, 20___. SUCH EXPIRATION DATE SHALL BE AUTOMATICALLY EXTENDED WITHOUT NOTICE OR AMENDMENT FOR PERIODS OF ONE
(1) YEAR, BUT IN NO EVENT LATER THAN ____________________, 20___, UNLESS AT LEAST SIXTY (60) DAYS BEFORE ANY EXPIRATION DATE, WE NOTIFY
YOU BY REGISTERED MAIL OR OVERNIGHT COURIER SERVICE AT YOUR ADDRESS ABOVE (OR ANY OTHER ADDRESS OF WHICH YOU PROVIDE US NOTICE
AT OUR ADDRESS SET FORTH ABOVE), THAT THIS LETTER OF CREDIT IS NOT EXTENDED BEYOND THE CURRENT EXPIRATION DATE. UPON RECEIPT BY
YOU OF SUCH NOTIFICATION, YOU MAY DRAW ON THIS LETTER OF CREDIT AS SET FORTH ABOVE, PROVIDED THAT THE AMOUNT OF YOUR DRAW SHALL
NOT EXCEED THE TOTAL AMOUNT AVAILABLE FOR PAYMENT HEREUNDER.

 

DRAW REQUESTS NEED NOT BE PRESENTED AS ORIGINALS
AND MAY BE SUBMITTED IN PERSON, BY COURIER, BY MAIL OR BY FACSIMILE TO OUR ADDRESS OR FACSIMILE NUMBER STATED ABOVE.

 

THIS LETTER OF CREDIT IS TRANSFERABLE ONE OR
MORE TIMES IN WHOLE BUT NOT IN PART UPON OUR RECEIPT OF A TRANSFER REQUEST IN THE FORM ATTACHED AS EXHIBIT A, SIGNED BY THE THEN
CURRENT BENEFICIARY. THE CHARGE FOR EACH TRANSFER IS LIMITED TO $100.

 

THIS LETTER OF CREDIT IS GOVERNED BY THE INTERNATIONAL
STANDBY PRACTICES 1998 (ICC PUBLICATION NO. 590), EXCEPT TO THE EXTENT THE SAME WOULD BE INCONSISTENT WITH THE EXPRESS PROVISIONS
HEREOF. WE HEREBY WAIVE AND DISCLAIM RIGHTS OF SUBROGATION IN RESPECT OF ANY DRAW MADE BY YOU, WHETHER ARISING UNDER THE UNIFORM
COMMERCIAL CODE OR OTHERWISE.

 

	 	 
	 	AUTHORIZED OFFICER

 

     

     

    

 

EXHIBIT A

 

Transfer Form

 

     

     

    

 

EXHIBIT E

 

CONSTRUCTION OF BUILD-OUT IMPROVEMENTS

 

		I.	TENANT PRE-CONSTRUCTION OBLIGATIONS

 

		1.	Tenant shall inform Landlord of the architect and engineer
which Tenant intends to employ to prepare the Tenant Construction Documents (defined below), and Landlord shall have the right
to approve the proposed architect and engineer, which approval shall not be unreasonably withheld. Landlord reserves the right
to charge Tenant for third party review of the Tenant Construction Documents.

 

		2.	Tenant will cause its architect to submit for Landlord’s
review a space plan (the “Space Plan”), which Space Plan will be used to prepare the Tenant Construction
Documents.

 

		3.	Landlord will advise Tenant of any required changes
to the Tenant Space Plan. If Landlord requests revisions to the Tenant Space Plan, then Tenant will cause its architect to incorporate
such changes in the Tenant Construction Documents.

 

		4.	Tenant will cause its architect to prepare and deliver
to Landlord a complete set of coordinated architectural, structural, mechanical, electrical, plumbing engineering construction
drawings and specifications sufficient to obtain a building permit and competitive bids (“Tenant Construction Documents”).

 

		5.	Landlord will review the Tenant Construction Documents
and shall notify Tenant of its approval of the Tenant Construction Documents or of any changes to the Tenant Construction Documents
required by Landlord.

 

		6.	Upon receipt of Landlord’s comments to the Tenant
Construction Documents, Tenant will cause its architect to revise the Tenant Construction Documents to incorporate Landlord’s
comments and shall resubmit the Tenant Construction Documents to Landlord.

 

		II.	CERTAIN PROVISIONS RELATING TO CONSTRUCTION

 

		1.	At least thirty (30) days prior to construction commencement,
Tenant shall obtain the prior written consent of Landlord as to the contractor to be used by Tenant (the “Tenant’s
Contractor”).

 

		2.	It shall be Tenant’s responsibility to ensure
that the Tenant’s Contractor shall (a) maintain such insurance and bonds in force and effect as may be reasonably requested
by Landlord or as required by applicable law; and (e) be responsible for reaching agreement with Landlord and Landlord’s
Contractor as to the terms and conditions for all Tenant’s Contractor items relating to conducting its work, including but
not limited to those matters relating to storage of materials and access to the Premises. As a condition precedent to Landlord’s
approving Tenant’s Contractor, Tenant and Tenant’s Contractor shall deliver to Landlord such assurances or instruments
to evidence the Tenant’s Contractor’s compliance or agreement to comply with the provisions of this Paragraph. Landlord
retains the right to make periodic inspections to assure conformity with the plans and specifications.

 

     

     

    

 

		3.	Tenant shall indemnify and hold harmless Landlord and
Landlord’s Contractor and any of Landlord’s other contractors from and against any and all losses, damages, costs
(including costs of suits and attorneys’ fees), liabilities, or causes of action arising out of or relating to the work
of Tenant’s Contractor, including but not limited to mechanics’, materialmen’s or other liens or claims (and
all costs or expenses associated therewith) asserted, filed or arising out of any such work. All materialmen, contractors, artisans,
mechanics, laborers and other parties hereafter contracting with Tenant for the furnishing of any labor, services, materials,
supplies or equipment with respect to any portion of the Premises are hereby charged with notice that they must look solely to
Tenant for payment for same. Without limiting the generality of the foregoing, Tenant shall repair or cause to be repaired at
its expense all damage caused by Tenant’s Contractor, its subcontractors or their employees. Any costs incurred by Landlord
to repair any damage caused by Tenant’s Contractor will become the obligation of Tenant under this Lease.

 

		4.	Tenant shall, at Tenant’s sole cost and expense,
cause Tenant’s mechanical, electrical and plumbing engineer to prepare a report, in form and substance acceptable to Landlord,
for the benefit of Landlord, certifying to the compliance of the work constructed by Tenant’s Contractor with the Tenant
Construction Documents.

 

		5.	The failure of Tenant to comply with the requirements
of this Exhibit E shall constitute a Default by Tenant under this Lease.

 

		6.	The following provisions shall apply to the Build-out
Improvements:

 

		(a)	The Build-out Improvements shall be completed by Tenant.

 

     

     

    

 

		(b)	The architects, engineers and contractors selected by
Tenant to perform the Build-out Improvements shall be subject to the reasonable approval of Landlord. Tenant’s Contractor
shall perform the Build-out Improvements in a first-class, workmanlike manner, using only good commercial grades of materials,
in accordance with this Lease and the plans and specifications approved hereunder, Landlord’s insurance requirements and
with all applicable legal requirements. The Build-out Improvements shall not commence until the Tenant’s Contractor has
delivered to Landlord a copy of the building permit issued for the Build-out Improvements and evidence of insurance, both of which
are satisfactory to Landlord in all respects. Upon completion of the Build-out Improvements, Tenant shall deliver to Landlord
(i) evidence of payment, contractors’ affidavits and sworn statements, full and final detailed pay applications and
waivers of lien from contractors and subcontractors for labor, services and materials confirming that all sums owed Tenant’s
Contractor, including retainage, have been paid in full; (ii) evidence that all punchlist items and repairs to any portions
of the Premises in connection with the Build-out Improvements have been completed; (iii) a certificate of occupancy for the
Premises containing no qualifications or incomplete items; (iv) copies of warranties all from contractors and suppliers;
(v) record drawings, in both electronic and paper form, reflecting as built conditions of the Premises; and (vi) all other
documents required by Landlord (collectively, the “Close-Out Requirements”).

 

		7.	Except as provided in Paragraph 8, below, Tenant shall
pay the cost of all of the Build-out Improvements, including without limitation the cost of all items necessary or desirable to
complete the Build-out Improvements, such as the fees and expenses arising out of the preparation of Tenant’s Plans and
Specifications, the fees and expenses of Tenant’s consultants and Tenant’s Contractor. Landlord agrees not to charge
Tenant any construction management or supervisory fees as long as Tenant manages the Tenant’s Work.

 

		8.	Landlord shall not be obligated to fund the Build-out
Allowance until Tenant has (i) satisfied all of the conditions for payment of the Build-out Allowance described in this Paragraph,
(ii) met all of the Close-Out Requirements, and (iii) taken possession of all of the Build-out Space for purposes of conducting
its business. The Build-out Allowance shall only be available within the first twenty-four (24) months of the Term (the “Build-out
Completion Period”). Landlord shall have no obligation to fund any portion of the Build-out Allowance for which Tenant
has not qualified within the Build-out Completion Period.

 

     

     

    

 

LEASE GUARANTY

 

THIS GUARANTY OF LEASE
is made this 30th day of June, 2017, by CARRUS HEALTHCARE, LLC, a Texas limited liability company, TEXOMA HOSPITAL PARTNERS,
LLC, a Texas limited liability company and CARRUS REHABILITATION HOSPITAL, LLC, a Texas limited liability company (collectively
the “Guarantor”), in favor of GMR SHERMAN, LLC, d/b/a GLOBAL MEDICAL REIT SHERMAN, LLC, a Delaware limited liability
company (“Landlord”).

 

WITNESSETH:

 

WHEREAS, the Guarantor
desires to induce Landlord to enter into a lease with SDB Partners, LLC, a Texas limited liability company (“Tenant”),
with respect to certain premises consisting of a 63,823 square foot facility with approximately 5,529 of additional shell space
on the first floor and approximately 12,000 of additional shell space on the second floor, located at 1810 U.S. Highway W., Sherman,
Texas (the “Lease”), such Lease being of even date herewith; and

 

WHEREAS, the entering into
of the Lease by Landlord and Tenant will be of direct pecuniary advantage to Guarantor;

 

NOW, THEREFORE, in consideration
of One Dollar ($1.00) paid by Landlord to Guarantor and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Guarantor hereby covenants and agrees with the Landlord, as follows:

 

1.          The
Guarantor, as primary obligor, hereby (a) unconditionally guarantees the prompt, punctual and full payment of the rent and
all other sums due under the Lease in accordance with the terms and tenor thereof as completely and effectually as if such guarantee
had been made by Guarantor on the face of the Lease; (b) unconditionally guarantees the prompt, punctual and full performance
by Tenant of any and all of the agreements, covenants, terms and conditions agreed to be performed by Tenant under the Lease; and
(c) covenants and agrees that in the event of default in payments or any default in the performance of any of the terms, covenants
or conditions thereof, the Guarantor will promptly make or cause such payment to be made or will perform or cause to be performed
all such terms, covenants and conditions, irrespective of any invalidity therein, the unenforceability thereof or the insufficiency,
invalidity or unenforceability of any security therefor.

 

2.          The
Guarantor does hereby further agree that Guarantor’s liability hereunder as Guarantor shall not be prejudiced, impaired or
affected by any of the following, whether with or without its knowledge or consent: (a) any renewal or extension of the time
of payment of the rent or other sums due under the Lease or of the time for performance by any party obligated under the Lease;
(b) by any forbearance or delay in enforcing the payment of the rent or other sums due under the Lease or enforcing the obligations
of any party to the Lease; (c) by any modification, addition or alteration of the terms, tenor or provisions of the Lease
or (d) by the release of any other collateral Landlord may hold for the obligations of Tenant.

 

    	 	- 4 -	 

     

    

 

3.          On
or before the 15th day of each calendar quarter during the term hereof, Guarantor shall submit to Landlord a current financial
statement in form and content satisfactory to Landlord indicating Guarantor’s current net worth. Guarantor shall submit substantiating
documentation to Landlord upon request. In addition, within thirty (30) days following the expiration of Guarantor’s fiscal
year, and no less frequently than once every twelve (12) calendar months, Guarantor shall submit to Landlord an annual audited
financial statement prepared in accordance with generally accepted accounting principles consistently applied and certified as
true and correct by Guarantor’s chief financial officer. Guarantor acknowledges that Landlord may require Tenant to post
additional collateral for its obligations under the Lease in the event of a decline in the financial condition of Guarantor and
that it shall be a default under the Lease entitling Landlord to call upon this Guaranty if Tenant shall fail to post such additional
collateral or if Guarantor files a petition in bankruptcy, is adjudged a bankrupt, has a receiver appointed for its assets, makes
an assignment for the benefit of creditors, or otherwise takes advantage of any debtor relief proceedings available under federal,
state or local law.

 

4.          This
Guaranty is and shall be construed to be an irrevocable, absolute, unlimited and continuing guaranty of payment and performance,
and the liability of Guarantor hereunder and Landlord’s right to pursue Guarantor shall not be affected, delayed, limited,
impaired or discharged, in whole or in part, by reason of an extension or discharge that may be granted to the Tenant by any court
in proceedings under the Bankruptcy Code, or any amendments thereof, or under any other state or other federal statutes. The Guarantor
expressly waives the benefits of any extension or discharge granted to Tenant. This Guaranty shall survive notwithstanding the
expiration or termination of the Lease with respect to any sums previously received from Tenant or from Guarantor that Landlord
may be required to repay in such proceeding.

 

5.          The
Landlord shall have the right to proceed against Guarantor immediately upon any default by the Tenant in payment or performance
of any obligation under the Lease, and Landlord shall not be required to take any action or proceedings of any kind against the
Tenant or any other party liable for the Tenant’s debts or obligations or to look to any other collateral Landlord may have
for the obligations of Tenant under the Lease. Should Landlord desire to proceed against Guarantor and Tenant in the same action,
Guarantor agrees that Guarantor may be joined in any such action against Tenant and that recovery may be had against Guarantor
to the extent of Guarantor’s liability in such action.

 

6.          If
Landlord calls upon Guarantor to honor, pay or perform all or part of any obligation of the Tenant, and Guarantor fails to honor
such demand, the debt or obligation owed the Landlord pursuant to this Guaranty shall bear interest at the Interest Rate set forth
in the Lease. In case Guarantor fails or refuses to honor this Guaranty, the Landlord is hereby authorized to utilize such legal
means as Landlord deems proper to enforce this Guaranty, through the efforts of its employees, agents, or attorneys, and Guarantor
shall pay all costs of enforcement and collection, including but not limited to court costs, reasonable attorneys’ fees,
depositions and expert witnesses.

 

    	 	- 5 -	 

     

    

 

7.          If
a corporation, partnership, limited liability company or other entity is executing this Guaranty, the Guarantor and the individual
executing this Guaranty on behalf of the Guarantor personally warrant that execution and delivery hereof and the assumption of
liability hereunder have been in all respects authorized and approved by proper action on the part of the Guarantor, that the Guarantor
has full authority and power to execute this Guaranty, that the Guarantor is duly formed and in good standing in the state of its
formation and that the Guarantor is authorized to do business in the state in which the premises subject to the Lease are located.

 

8.          The
Guaranty shall be binding upon and inure to the benefit of the heirs, personal and legal representatives, successors and assigns
of Guarantor and the Landlord. The Landlord shall have the right to assign and transfer this Guaranty to any assignee of the Lease,
and this Guaranty shall be deemed to run with the Lease. The Landlord’s successors and assigns shall have the rights, elections,
remedies, and privileges, discretions and powers granted hereunder to the Landlord and shall have the right to rely upon this Guaranty
and to enter into and continue other and additional transactions with the Tenant in reliance hereon, in the same manner and with
the same force and effect as if they were specifically named as the Landlord herein.

 

9.          This
Guaranty shall constitute a Texas contract, and be governed by the laws of the State of Texas. The undersigned hereby voluntarily
submits to the jurisdiction of any court in the State of Texas having jurisdiction over the subject matter of this instrument,
and hereby constitutes the Secretary of State of the State of Texas as its agent for service of process in connection with any
suit or proceeding arising hereunder.

 

10.         Failure
of the Landlord to insist in any one or more instances upon strict performance of any one or more of the provisions of this Guaranty
or to take advantage of any of its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment
of any such rights, but the same shall continue and remain in full force and effect.

 

11.         The
Landlord shall have the right, without affecting Guarantor’s obligations hereunder, and without demand or notice, to collect
first from the Tenant, and to exercise its rights of setoff against any asset of the Tenant, and to otherwise pursue and collect
from the Tenant any other indebtedness of the Tenant to the Landlord not covered by this Guaranty, and any sums received from the
Tenant, whether by voluntary payment, offset, or collection efforts, may be applied by the Landlord as it sees fit, including the
application of all such amounts to other debts not guaranteed by Guarantor. Subrogation rights or any other rights of any kind
of Guarantor against the Tenant, if any, shall not become available until all indebtednesses and obligations of the Tenant to the
Landlord are paid in full. This Guaranty shall survive the expiration or termination of the Lease to the extent the obligations
of the Tenant thereunder likewise survive.

 

12.         Landlord
may proceed against any collateral securing the obligations of Tenant and against parties liable therefor in such order as it may
elect, and Guarantor shall not be entitled to require Landlord to marshall assets. The benefit of any rule of law or equity to
the contrary is hereby expressly waived.

 

    	 	- 6 -	 

     

    

 

13.         Landlord
may, in its sole discretion and with or without consideration, release any collateral securing the obligations of Tenant or release
any party liable therefor. The defenses of impairment of collateral and impairment of recourse and any requirement of diligence
on Landlord’s part in perfecting or enforcing any lien granted in the Lease or in collecting the obligations under the Lease
are hereby waived.

 

14.         Within
ten (10) days after request therefor by Landlord, or in the event of any sale, assignment or hypothecation of the property of which
the premises leased by Tenant are a part, Guarantor agrees to deliver in recordable form, an estoppel certificate to any proposed
ground lessor, mortgagee or purchaser, or to Landlord, signed by Guarantor certifying that this Guaranty is unmodified and in full
force and effect (or, if there have been modifications, that the same is in full force and effect as modified, and stating the
modifications), that there are no defenses or offsets thereto (or stating those claimed by Guarantor), and such other matters as
may be requested. If Guarantor fails to deliver such certificate as required herein, Guarantor shall be deemed to have conclusively
agreed to and be bound by all matters set forth in the certificate as submitted by the requesting party.

 

15.         Guarantor
hereby waives any requirement of presentment, protest, notice of dishonor, notice of default, demand, and all other actions or
notices that may be required on Landlord’s part in connection with the obligations guaranteed hereby.

 

16.         GUARANTOR
HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY ACTION, PROCEEDING OR COUNTERCLAIM WITH RESPECT TO THIS GUARANTY.

 

17.         In
the event any portion of this Guaranty shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable,
such portion shall be deemed severed from this Guaranty, and the remaining parts hereof shall remain in full force and effect,
as fully as though such invalid, illegal or unenforceable portion had never been part of this Guaranty.

 

18.         If
there is more than one Guarantor, the obligations of each Guarantor under this Guaranty are and will be joint and several. Landlord
may release any one or more Guarantors at any time without notice to or consent by the remaining Guarantors and without affecting
the continuing liability of the remaining Guarantors. Landlord shall not be required to pursue any remedy against any other person
or party which shall have executed any agreement of guaranty with Landlord. Landlord may elect, in its sole and absolute discretion,
to seek to recover from any one or more of such persons or parties and no such election shall constitute any defense or any other
bar or limitation to the enforcement of Guarantors’ obligations set forth herein.

 

    	 	- 7 -	 

     

    

 

IN WITNESS WHEREOF, Guarantor
has executed this Guaranty as of the day and year first set forth above.

 

	WITNESS:	GUARANTOR:
	 	 
	 	CARRUS HEALTHCARE, LLC, a Texas limited liability company
	 	 	 
	_______________________________________	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	TEXOMA HOSPITAL PARTNERS, LLC, a Texas limited liability company
	 	 	 
	______________________________________	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	CARRUS REHABILITATION HOSPITAL, LLC, a Texas limited liability company
	 	 	 
	_____________________________________	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	- 8 -

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