Document:

LEASE

 

between

 

CHP FRIENDSWOOD SNF, LLC,

a Delaware limited liability company

 

as Landlord

 

and

 

MASON FRIENDSWOOD OP, LLC

a Texas limited liability company

 

as Tenant

 

Date of Lease: As of September 14,
2012

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	1.	Fundamental Lease Provisions; Definitions	1
	 	 	 
	2.	Premises	5
	 	 	 
	3.	No Merger of Title	5
	 	 	 
	4.	Renewal Options	6
	 	 	 
	5.	Use; Licensing Requirements and Operating Covenants	6
	 	 	 
	6.	Rent	9
	 	 	 
	7.	Net Lease; True Lease	11
	 	 	 
	8.	Condition	11
	 	 	 
	9.	Liens	12
	 	 	 
	10.	Repairs and Maintenance	12
	 	 	 
	11.	Compliance With Laws	14
	 	 	 
	12.	Access to Premises	15
	 	 	 
	13.	Waiver of Subrogation	16
	 	 	 
	14.	Damage; Destruction	16
	 	 	 
	15.	Condemnation	18
	 	 	 
	16.	Assignment and Subletting	19
	 	 	 
	17.	Alterations	20
	 	 	 
	18.	Signs	21
	 	 	 
	19.	Surrender	21
	 	 	 
	20.	Subordination of Lease; Mortgage Reserves	22
	 	 	 
	21.	Tenant’s Obligation to Discharge Liens	23
	 	 	 
	22.	Utilities	23
	 	 	 
	23.	Tenant Default	23
	 	 	 
	24.	HUD Loan Requirements	28

 

    	 

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	25.	Rent Payments	32
	 	 	 
	26.	Holdover	32
	 	 	 
	27.	Notices	32
	 	 	 
	28.	Indemnity	33
	 	 	 
	29.	Tenant to Comply with Matters of Record	34
	 	 	 
	30.	Taxes	35
	 	 	 
	31.	Insurance	36
	 	 	 
	32.	Landlord Exculpation	38
	 	 	 
	33.	Landlord’s Title	38
	 	 	 
	34.	Quiet Enjoyment	38
	 	 	 
	35.	Broker	38
	 	 	 
	36.	Transfer of Title	39
	 	 	 
	37.	Management Agreements	39
	 	 	 
	38.	Hazardous Materials	39
	 	 	 
	39.	Estoppel Certificate	44
	 	 	 
	40.	Notice of Lease	44
	 	 	 
	41.	Miscellaneous	44
	 	 	 
	42.	Guaranty of Lease	47

 

    	ii

    	 

    

 

LIST OF SCHEDULES AND EXHIBITS

 

	Schedule 1	
        Base Rent Schedule

         

	Exhibit A	
        Legal Description of Premises

         

	Exhibit B	
        Permitted Encumbrances

         

	Exhibit C	
        Approved Management Agreement

         

	Exhibit D	Guaranty of Lease

 

    	iii

    	 

    

 

LEASE

 

This Lease (this “Lease”)
is made on the Date of Lease specified below, between the Landlord and the Tenant specified below.

 

1.   
       Fundamental Lease Provisions; Definitions.

 

1.1          Fundamental
Lease Provisions. The following list sets out certain fundamental provisions pertaining to this Lease:

 

(a)          Date
of Lease. As of September _____, 2012.

 

		(b)	Landlord. CHP Friendswood SNF, LLC (“Landlord”).

 

	Landlord notice address:	CHP Friendswood SNF, LLC

c/o Cornerstone Real Estate Funds

1920 Main Street, Suite 400

Irvine, California 92614

Attn: Kent Eikanas

Email: KEikanas@crefunds.com

Phone: (949) 812-4335

Fax: (949) 250-0592
	 	 
	with copy to:	
        DLA Piper LLP (US)

        2000 University Avenue

        East Palo Alto, California 94303

        Attn: James E. Anderson, Esq.

        Email: jim.anderson@dlapiper.com

        Phone: (650) 833-2078

        Fax: (650) 687-1158

 

(c)          Tenant.
Mason Friendswood OP, LLC, a Texas limited liability company (“Tenant”).

 

	Tenant notice address:	Mason Friendswood OP, LLC

    4949 Westgrove, Suite 200

    Dallas, Texas 75248

    Attn: M. Craig Kelly

    Email: mcraigkelly@aol.com

    Phone: (469) 341-2720

    Fax:____________________________

 

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	with copy to:	Underwood Law Firm, P.C.

P.O. Box 9158

Amarillo, Texas 79105

Attn: Sharon White 

Email: Sharon.White@uwlaw.com

Phone: (806) 376-5613

Fax: (806) 349-9486
	 	 
	with copy to:	
        HMG Services, LLC

        4 Waterway Square Place, Suite 350

        The Woodlands, Texas
        77380

        Telephone No.: (281)
        419-5520

        Facsimile No.: (281) 419-5527

 

1.2          Definitions.
The following list sets out certain definitions used in this Lease:

 

(a)          “Adverse
Healthcare Event”. The occurrence of any of the following at the Facility: any termination or suspension placed upon
Tenant or the Healthcare Use of any portion of the Facility, the operation of the Healthcare Business conducted within the Facility
or the ability to admit residents or patients for a period in excess of thirty (30) days or if the certification or licensure of
any portion of the Property under any Legal Requirements is revoked, or suspended or materially limited for a period in excess
of thirty (30) days, including, without limitation, (i) termination of provider agreements without Landlord's consent; or
(ii) failure to maintain Tenant's qualifications for licenses, permits, certifications and any other healthcare requirement necessary
to continue to operate the Facility for its Healthcare Use.

 

(b)          “Approved
Management Agreement.” That certain management agreement, dated February 1, 2012 for the Premises by and between
Tenant and Manager attached hereto as Exhibit C.

 

(c)          “AR
Lender.” A third party institutional lender providing an AR Loan or AR Financing (as defined below in Section 1.2(c))
to Tenant.

 

(d)          “AR
Loan or AR Financing.” A loan obtained by Tenant from a third party institutional lender secured by the accounts
receivable from Tenant’s business operations within the Facility.

 

(e)          “AR
Loan Documents.” All loan documents entered into by Tenant and/or AR Lender evidencing an AR Loan or AR Financing.

 

(f)          “Base
Rent” (See Section 6). The amounts set forth on Schedule 1 hereto for the respective periods
specified thereon.

 

(g)          “Broker.”
Neither Landlord nor Tenant used a Broker in connection with this Lease.

 

(h)          “C&C
Threshold Repair Amount.” Fifty Thousand Dollars ($50,000).

 

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(i)          “Capital
Reserve Deposits.” The deposits required to be made by Tenant in the amount of Four Hundred Fifty Dollars ($450)
per bed annually.

 

(j)          “Date
of Rent Commencement.” September ____, 2012.

 

(k)          “EBITDAR.”
Earnings before interest, taxes, depreciation, amortization and Rent.

 

(l)          “Exhibits.”
All Exhibits and Schedules to this Lease are incorporated herein by this reference.

 

(m)        “Facility.”
The skilled nursing facility located at 1500 Sunset Drive, Friendswood, Texas, and commonly known as Friendship Haven Healthcare
and Rehabilitation Center.

 

(n)          “FF&E.”
All furnishings, furniture, fixtures, and equipment owned by Landlord and used in or about the Premises, but expressly excluding
any personal property owned by the residents of the Premises.

 

(o)          “FHA.”
The Federal Housing Administration.

 

(p)          “Guarantor.”
As defined below in Section 42.

 

(q)          “Healthcare
Business.” The business of operating the Facility for the Healthcare Use.

 

(r)          “Healthcare
Use.” The use of the Facility for skilled nursing.

 

(s)          “HUD.”
The United States Department of Housing and Urban Development.

 

(t)          “HUD
Lender.” A Lender providing a HUD Loan to Landlord on the Premises.

 

(u)          “HUD
Loan.” A new loan secured by the Premises from a Lender insured by HUD.

 

(v)         “HUD
Loan Documents.” The Loan Documents evidencing a HUD Loan on the Premises.

 

(w)          “HUD
Program Requirements.” All applicable statutes and regulations, including all amendments to such statutes and regulations,
as they become effective, and all applicable requirements in HUD handbooks, notices and mortgagee letters that apply to the Premises
and all requirements by HUD that Tenant’s AR Lender subordinate to HUD Loan in accordance with this Lease, including all
updates and changes to such handbooks, notices and mortgagee letters that apply to the Premises, except that changes subject to
notice and comment rulemaking shall become effective upon completion of the rulemaking process.

 

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(x)          “Late
Charge.” Five percent (5%) of the amount past due.

 

(y)          “Laws.”
As defined below in Section 11.1.

 

(z)          “Lease
Default Rate.” The lower of (a) fourteen percent (14%) per annum, or (b) the highest rate permitted to be contracted
for under applicable Law.

 

(aa)         “Lease
Deposit.” A deposit made by Tenant to Landlord in the amount of three (3) months initial Base Rent.

 

(bb)         “Legal
Requirements.” As defined below in Section 11.1.

 

(cc)         “Lender.”
Any institutional entity that makes a loan or loans (such loan or loans collectively referred to herein as the “Loan”)
to Landlord which is secured by a mortgage, deed of trust or similar instrument (the “Mortgage”) with respect
to the Premises and of which Tenant is advised in writing by Landlord, and which may be insured by HUD pursuant to Sections 232
and 223(f) of the National Housing Act, as amended. Any such Loan may be evidenced by one or more promissory notes (collectively
referred to herein as the “Note”).

 

(dd)         “Loan
Documents.” Collectively, the Note, the Mortgage and all other documents entered into in connection with the Loan
by Landlord and/or Tenant, including, but not limited to, the Regulatory Agreement for a HUD Loan.

 

(ee)         “Management
Agreement.” The management agreement between Tenant and the manager of the Facility.

 

(ff)         “Manager.”
The manager of the Facility pursuant to the Management Agreement, which currently is HMG Services, LLC under the Approved Management
Agreement.

 

(gg)         “Minimum
Licensed Beds.” 150 licensed beds (consisting of 150 skilled).

 

(hh)         “Minimum
Rent Coverage.” For any trailing six (6) month period, a ratio of EBITDAR to all Base Rent and all other rent payable
under this Lease of not less than 1.3 to 1.0.

 

(ii)         “Payment
of Base Rent.” As set forth in Section 6.1, Base Rent shall be paid monthly by wire transfer to the account
set forth in the rent direction letter from Landlord to Tenant delivered concurrently with the execution and delivery of this Lease.

 

(jj)         “Permitted
Encumbrances.” All taxes (as defined in Section 30), Legal Requirements (as defined in Section 11), the
Mortgage and associated encumbrances in favor of the Lender, any matters consented to by Landlord, Tenant and Lender in writing,
those covenants, restrictions, reservations, liens, conditions, encroachments, easements, encumbrances and other matters of title
that affect the Premises as of the date hereof (including, without limitation, those listed on Exhibit B hereto) or
which arise due to the acts or omissions of Tenant with Landlord’s written consent, or due to the acts or omissions of Landlord
with Tenant’s written consent, after the date hereof.

 

    	4

    	 

    

 

(kk)         “Premises.”
That certain lot or parcel of real estate which is described on Exhibit A hereto, together with the Facility(ies) and
all improvements now or hereinafter situated on said property (together with all right, title and interest of Landlord in and to
the lighting, electrical, mechanical, plumbing and heating, ventilation and air conditioning systems used in connection with said
property, and all other carpeting, appliances and other fixtures and equipment attached or appurtenant to said property), and all
rights, easements, rights of way, and other appurtenances thereto.

 

(ll)         “Regulatory
Agreement.” Collectively, the Regulatory Agreement with Landlord and the Regulatory Agreement with Tenant.

 

(mm)       “Regulatory
Agreement with Landlord.” That certain Regulatory Agreement to be entered into between HUD and Landlord relating
to the Premises.

 

(nn)         “Regulatory
Agreement with Tenant.” That certain Regulatory Agreement to be entered into between HUD and Tenant relating to the
Premises.

 

(oo)         “Renewal
Option(s).” The Tenant shall have the following Renewal Option(s) (herein so called) to extend the Term of this Lease
for up to a total of two (2) Extension Period(s) (herein so called) of five (5) years each upon the same terms and conditions as
are set forth in this Lease (except as otherwise expressly set forth herein), and for the Base Rent set forth on Schedule 1
hereto.

 

(pp)         “Required
Advance Notice to Exercise Renewal Options.” Notice to exercise a renewal option shall be provided no earlier than
nine (9) months and no later than six (6) months prior to the expiration of the then-current Term. (See Section 4).

 

(qq)         “State.”
The State of Texas.

 

(rr)         “Term.”
The term of this Lease shall commence on the Date of Rent Commencement, and shall expire on the tenth (10th) anniversary of the
Date of Rent Commencement; all subject to all terms and conditions of this Lease.

 

(ss)         “Threshold
Repair Amount.” Fifty Thousand Dollars ($50,000).

 

2.          Premises.
Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, for the Term and on the conditions herein provided, the
Premises, subject, however, to the Permitted Encumbrances.

 

3.          No
Merger of Title. There shall be no merger of this Lease nor of the leasehold estate created hereby with the fee estate in or
ownership of the Premises by reason of the fact that the same entity may acquire or hold or own (i) this Lease or the leasehold
estate created hereby or any interest therein and (ii) the fee estate or ownership of any of the Premises or any interest therein.
No such merger shall occur unless and until all persons having any interest in (x) this Lease and the leasehold estate created
hereby, and (y) the fee estate in the Premises including, without limitation, Lender’s interest therein, shall join in a
written, recorded instrument effecting such merger.

 

    	5

    	 

    

 

 

4.          Renewal
Options. Tenant has the Renewal Options, and may extend the Term of this Lease for each of the Extension Periods, upon all
of the terms set forth in this Lease with the Base Rent in the amounts specified on Schedule 1 hereto for the respective
Extension Periods. The Term of this Lease shall be extended if Tenant provides Landlord written notice of Tenant’s exercise
of the Renewal Option in accordance with the Required Advance Notice to Exercise Renewal Options. Notwithstanding the foregoing,
if (a) Tenant is in default beyond the applicable cure period on the date of giving Landlord notice of Tenant’s exercise
of the Renewal Option, or (b) Landlord has previously given Tenant two (2) or more notices of default under this Lease during the
previous twelve (12) month period, Tenant shall have no right to extend the Term and this Lease shall expire at the end of the
existing Term.

 

5.          Use;
Licensing Requirements and Operating Covenants.

 

5.1           Use.
Tenant may use the Premises for the Healthcare Use and for no other use or purpose. Tenant’s use of the Premises must be
in accordance with all applicable Laws, including, without limitation, applicable zoning and land use Laws. In no event shall the
Premises be used for any purpose which shall violate any of the provisions of any Permitted Encumbrance or any covenants, restrictions
or agreements hereafter created by or consented to by Tenant applicable to the Premises; provided, however, that
this sentence shall not apply with respect to any Permitted Encumbrance in effect on the Date of Rent Commencement so long as (i)
the title insurance policy obtained by Landlord in connection with its purchase of the Premises (and the simultaneously issued
Lender’s policy of title insurance) contains affirmative insurance against any loss arising due to a violation of such Permitted
Encumbrance or if such affirmative title insurance is subsequently provided to Landlord and Lender at Tenant’s cost with
respect to such Permitted Encumbrance on terms and conditions satisfactory to Landlord and Lender in their sole discretion, and
(ii) violation of such Permitted Encumbrance could not result in Landlord or Lender suffering (A) any criminal liability,
penalty or sanction, (B) any civil liability, penalty or sanction for which Tenant has not made provisions reasonably acceptable
to Landlord and Lender, or (C) defeasance or loss of priority of its interest in the Premises; provided, further, however, that
TENANT SHALL NONETHELESS BE OBLIGATED TO INDEMNIFY, DEFEND AND HOLD HARMLESS LANDLORD, LENDER AND ALL OTHER INDEMNIFIED PARTIES,
FROM ANY AND ALL LOSSES, LIABILITIES, PENALTIES, ACTIONS, SUITS, CLAIMS, DEMANDS, JUDGMENTS, DAMAGES, COSTS OR EXPENSES SUFFERED
AS A RESULT OF THE VIOLATION OF ANY SUCH PERMITTED ENCUMBRANCE BY TENANT. Tenant agrees that with respect to the Permitted
Encumbrances and any covenants, restrictions or agreements hereafter created by or consented to by Tenant, Tenant shall observe,
perform and comply with and carry out the provisions thereof required therein to be observed and performed by Landlord. Notwithstanding
the foregoing, Tenant shall not use, occupy or permit the Premises to be used or occupied, nor do or permit anything to be done
in or on the Premises in a manner which would constitute a public or private nuisance or waste.

 

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5.2          Licensing
Requirements. During the term of this Lease, the Premises shall be used by Tenant with not less than the Minimum Licensed Beds.
Tenant shall at all times maintain in good standing and full force a probationary or non-probationary license issued by the State
and any other governmental agencies permitting the operation on the Premises of a skilled nursing facility of no less than the
Minimum Licensed Beds (subject to any reduction in the number of licensed beds required by any governmental authority solely as
a result of changes in laws, rules and regulations relating to the physical attributes of the improvements on the Premises) and
shall at all times maintain in good standing and full force a provider agreement pursuant to which the Premises shall be entitled
to participate in the Medicaid reimbursement program, and when applicable Medicare reimbursement program in order to receive reimbursement
for the services provided at the Premises. Except as otherwise specifically provided herein no reduction in the number of licensed
beds shall entitle Tenant to any reduction or adjustment of the Base Rent or Additional Rent payable hereunder, which shall be
and continue to be payable by Tenant in the full amount set forth herein notwithstanding any such reduction in the number of licensed
beds. Tenant shall, within five (5) business days following its receipt thereof, provide Landlord with a copy of any notice from
the Texas Department of Aging and Disability Services or any federal, state or municipal governmental agency or authority
regarding any reduction in the number of licensed beds and Landlord shall have the right, but not the obligation, to contest, by
appropriate legal or administrative proceedings, any such reduction.

 

5.3          Operating
Covenants.

 

(a)          Financial
Reporting.

 

(i)          Within
sixty (60) days after the end of each of its fiscal years, Tenant shall furnish to Landlord full and complete unaudited financial
statements of the operations of the Facility for such annual fiscal period, which shall be compiled by an independent Certified
Public Accountant if required by Lender, and such financial statements shall present fairly the financial condition of Tenant,
and which shall contain a statement of capital changes, balance sheet and detailed income and expense statement (collectively called
“Financial Statements”) as of the end of the fiscal year. Tenant shall also furnish to Landlord a copy of its
cost report within ten (10) days after filing thereof. Each such cost report shall be certified as being true and correct by an
officer of Tenant.

 

(ii)         Tenant
shall also furnish to Landlord and to Lender copies of all financial statements for the Facility for the preceding calendar month
by the twenty-fifth (25th) day following the last day of said month.

 

(iii)        With
thirty (30) days after the date for filing Tenant’s tax return (as the same may be extended), Tenant shall furnish (and cause
its auditor to be permitted to furnish if required by Lender) to Tenant and to Lender with a copy of the tax return for Tenant
for said year, certified by an officer of Tenant to be true, correct and complete.

 

(iv)        At
least twenty-five (25) days prior to the commencement of Tenant's fiscal year, Tenant shall provide Landlord with an annual budget
covering the operations of the Facility including any proposed capital expenditures for the forthcoming fiscal year. Tenant shall
also provide Landlord with such other information with respect to Tenant or the operations of the Facility as Landlord may reasonably
request from time to time. Tenant acknowledges that Landlord's receipt of the budgets shall not constitute or be deemed an assumption
of any obligation or liability of Landlord in connection with Tenant's business or operations, nor shall Landlord be deemed to
be involved in Tenant's business or operations in any manner other than as Landlord under this Lease.

 

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(v)         In
addition to the above financial statements, Tenant shall also provide to Landlord such other financial statement(s) or information
relating to its operation as reasonably required by Landlord which is customarily maintained by Tenant, which shall be furnished
to Landlord and to Lender not later than the date reasonably required and set forth in a notice to Tenant.

 

(vi)        Tenant
shall keep and maintain or cause to be kept and maintained at all times at the Facility, or such other place as Landlord or Landlord's
Lender may approve in writing, complete and accurate books of accounts and records adequate to reflect the results of the operation
of the Property and to provide the financial statements required to be provided under this Section 5.3 and copies of all written
contracts, correspondence, reports in connection with Landlord's loan, if any, and other documents affecting the Facility. Landlord
and Landlord's Lender and its designated agents shall have the right to inspect and copy any of the foregoing during normal business
hours and upon at least 24 hours notice to Tenant. Additionally, Tenant acknowledges that Landlord's Lender shall have the right
to audit such records, and Tenant shall reasonably cooperate with such audit(s). The costs and expenses of the audit shall be paid
by Tenant if the audit discloses a monetary variance in any financial information or computation equal to or greater than the greater
of: (a) five percent (5%); or (b) Twenty-Five Thousand Dollars ($25,000.00) more than any computation submitted by Tenant.

 

(b)          Regulatory
Reporting. Tenant shall deliver to Landlord copies of all regulatory survey’s conducted by the State or any Federal agency,
Reports of Contract (“ROCs”), Plans of Corrections (“POCs”) and Substantial Compliance notices
within three (3) business days of receiving or preparing.

 

(c)          Minimum
Rent Coverage. Tenant shall maintain on a monthly basis the Minimum Rent Coverage. If Tenant fails to maintain the Minimum
Rent Coverage, then Tenant shall deposit on a monthly basis with Landlord an additional Lease Deposit equal to five percent (5%)
of the monthly revenue that Tenant derives from the business operated from the Premises. The funding of such additional Lease Deposit
shall continue until the earlier of (i) the Lease Deposit equaling six (6) months of the then Base Rent payable under this Lease,
or (ii) Tenant coming back into compliance with the Minimum Rent Coverage. Additional Lease Deposits funded pursuant to this Section 5.3(c)
shall be held by Landlord until the end of the Term.

 

(d)          Occupancy.
On a rolling three (3) month basis, Tenant shall maintain an occupancy level of no less than ninety percent (90%) of the occupancy
existing on the Date of this Lease. Tenant represents and warrants to Landlord that there were [need #] residents in the
Facility on the Date of this Lease.

 

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6.     
     Rent.

 

6.1          Payment
of Base Rent. Commencing as of the Date of Rent Commencement, Tenant shall pay Base Rent to Landlord, or to Lender if directed
by Landlord in writing, at the business address of Landlord or Lender, as the case may be, specified herein, or at such other address
as Landlord or Lender, as the case may be, shall from time to time designate by written notice to Tenant. The Base Rent shall be
due and payable in the amounts set forth on Schedule 1 hereto, which Schedule 1 is incorporated herein
by this reference. Tenant shall commence paying Base Rent on the Date of Rent Commencement (which Date of Rent Commencement is
not required to occur on the first day of a month), and to the extent that the Date of Rent Commencement does not fall on the first
day of a calendar month, then Base Rent for the calendar month in which the Date of Rent Commencement occurs shall be prorated
based on the number of days in the calendar month in which the Date of Rent Commencement occurs. Other than payment of Base Rent
on the Date of Rent Commencement (to the extent that the Date of Rent Commencement does not occur on the first day of a calendar
month), Base Rent shall be due and payable on the first day of each month (or if such first day is not a business day, the first
business day of each month) during the Term (each such date being referred to herein as a “Due Date”). Notwithstanding
the foregoing, from the Date of Rent Commencement until Tenant is notified otherwise by Landlord and Lender, Base Rent shall be
paid by wire transfer to the account specified in the rent direction letter from Landlord to Tenant.

 

6.2          Partial
Months. Any Base Rent paid for a partial period of occupancy shall be allocated to such partial period. The foregoing notwithstanding,
Tenant’s obligation to pay insurance charges pursuant to Section 31 of this Lease, taxes pursuant to Section 30
of this Lease, and all other Additional Rent shall commence upon the Date of Rent Commencement.

 

6.3          Payment
of Additional Rent. Commencing as of the Date of Rent Commencement, all taxes, costs, expenses, and other amounts which Tenant
is required to pay pursuant to this Lease (other than Base Rent), including, but not limited to insurance required pursuant to
Section 31 of this Lease together with every fine, penalty, interest and cost which may be added for non-payment or late payment
thereof, shall constitute additional obligations hereunder (“Additional Rent”). All Additional Rent shall be
paid directly by Tenant to the party to whom such Additional Rent is due. If Tenant shall fail to pay any such Additional Rent
or any other sum due hereunder when the same shall become due (and if no due date is specified, then such amounts shall be payable
within ten (10) business days following written notice of demand therefor), Landlord shall have all rights, powers and remedies
with respect thereto as are provided herein or by Law in the case of non-payment of any Base Rent and shall, except as expressly
provided herein, have the right, not sooner than ten (10) days after notice to Tenant (except in the event of an emergency, as
reasonably determined by Landlord, in which case prior notice shall not be necessary) of its intent to do so, to pay the same on
behalf of Tenant, and Tenant shall repay such amounts to Landlord on demand. Tenant shall pay to Landlord interest at the Lease
Default Rate on all overdue Additional Rent and other sums due hereunder, in each case paid by Landlord or Lender on behalf of
Tenant, from the date of payment by Landlord or Lender until repaid by Tenant.

 

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6.4          Late
Payments. If any installment of Base Rent, Additional Rent or any other sum due from Tenant shall
not be received by Landlord or Landlord’s designee by the due date therefor, then Tenant shall pay to Landlord the Late Charge
calculated off of the past due amount plus any attorneys’ fees incurred by Landlord by reason of Tenant’s failure to
pay such amount. The late charge shall be deemed Additional
Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder, at law and/or
in equity and shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition
to the Late Charge, any Base Rent, Additional Rent or other amounts owing hereunder which are not paid within five (5) days of
the date that they are due shall thereafter bear interest until paid at the Lease Default Rate.

 

6.5          Lease
Deposit. The Lease Deposit shall be deposited by Tenant with Landlord in accordance with Section 1.2(u) of this Lease.
The Lease Deposit shall serve as security for the payment and performance of the obligations, covenants, conditions and agreements
contained herein. The Lease Deposit shall not constitute an advance payment of any amounts owed by Tenant under this Lease, or
a measure of damages to which Landlord shall be entitled upon a breach of this Lease by Tenant or upon termination of this Lease.
Landlord may, without prejudice to any other remedy, use the Lease Deposit to the extent necessary to remedy any default which
has lapsed beyond applicable notice and cure period in the payment of Base Rent or Additional Rent or to satisfy any other obligation
of Tenant hereunder and to remedy any Event of Default hereunder. In the event that any portion of the Lease Deposit is used by
Landlord as set forth herein, Tenant shall promptly, on demand, restore the Lease Deposit to its original amount. Landlord will
keep the Lease Deposit separate from its own funds in a separately segregated, interest bearing account. The Lease Deposit will
not be a limitation on Landlord’s damages or other rights under this Lease, or a payment of liquidated damages, or an advance
payment of the Base Rent. Landlord will return the unused portion of the Lease Deposit to Tenant within thirty (30) days after
the end of the Term. If Landlord transfers its interest in the Premises during the Term, Landlord shall assign the Lease Deposit
to the transferee who shall become obligated to Tenant for its return pursuant to the terms of this Lease, and thereafter Landlord
shall have no further liability for its return, provided assignee shall assume such obligations in writing to Tenant.

 

6.6          Determination
of Charges. Landlord and Tenant agree that each provision of this Lease for determining charges and amounts payable by Tenant
(including provisions regarding Base Rent and Additional Rent) is commercially reasonable and, as to each charge or amount, constitutes
a statement of the charge or a method by which the charge is to be computed for purposes of Section 93.012 of the Texas Property
Code.

 

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7.       
   Net Lease; True Lease.

 

7.1          Net
Lease. The obligations of Tenant hereunder shall be separate and independent covenants and agreements, and Base Rent, Additional
Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events, and the obligations of Tenant hereunder
shall continue during the Term, unless the requirement to pay or perform the same shall have been terminated pursuant to the provisions
of Section 14.4 or Section 15. This is an absolutely net lease and Base Rent, Additional Rent and all other sums payable
hereunder by Tenant shall be paid without notice or demand (except as specifically set forth in this Lease), and without setoff,
counterclaim, recoupment, abatement, suspension, reduction or defense. This Lease is the absolute and unconditional obligation
of Tenant, and the obligations of Tenant under this Lease shall not be affected by any interference with Tenant’s use of
any of the Premises for any reason except as specifically set forth in this Lease, including, but not limited to, the following:
(i) any damage to or destruction of any of the Premises by any cause whatsoever (except as otherwise expressly provided in
Section 14.4), (ii) any Condemnation (except as otherwise expressly provided in Section 15), (iii) the prohibition,
limitation or restriction of Tenant’s use of any of the Premises, (iv) Tenant’s acquisition of ownership of any
of the Premises other than pursuant to an express provision of this Lease, (v) any default on the part of Landlord under this
Lease or under any other agreement, (vi) any latent or other defect in, or any theft or loss of any of the Premises, (vii) any
violation of Section 34 by Landlord (provided, that this Section 7.1(vii) shall not limit Tenant’s rights, if any,
to seek injunctive relief against Landlord for violation of said Section 34), or (viii) any other cause, whether similar
or dissimilar to the foregoing, any present or future Law to the contrary notwithstanding. Except as otherwise set forth herein,
all costs and expenses (other than depreciation, interest on and amortization of debt incurred by Landlord, and costs incurred
by Landlord in financing or refinancing the Premises) and other obligations of every kind and nature whatsoever relating to the
Premises and the appurtenances thereto and the use and occupancy thereof which may arise or become due and payable with respect
to the period which ends on the expiration or earlier termination of the Term in accordance with the provisions hereof (whether
or not the same shall become payable during the Term or thereafter) shall be paid and performed by Tenant. Tenant shall pay all
expenses related to the maintenance and repair of the Premises, and taxes and insurance costs. This Lease shall not terminate and
Tenant shall not have any right to terminate this Lease (except as otherwise expressly provided in this Lease), or to abate Base
Rent or Additional Rent during the Term.

 

7.2          True
Lease. Landlord and Tenant agree that this Lease is a true lease and does not represent a financing arrangement. Each party
shall reflect the transaction represented hereby in all applicable books, records and reports (including income tax filings) in
a manner consistent with “true lease” treatment rather than “financing” treatment.

 

7.3          No
Termination of Lease. Tenant shall remain obligated under this Lease in accordance with its terms and shall not take any action
to terminate, rescind or avoid this Lease, notwithstanding any bankruptcy, insolvency, reorganization, liquidation, dissolution
or other proceeding affecting Landlord or any action with respect to this Lease which may be taken by any trustee, receiver or
liquidator or by any court.

 

8.     
     Condition. Tenant acknowledges that it or one of its affiliates owned and
occupied the Premises immediately prior to the commencement of the Term. Accordingly, Tenant is fully familiar with the
physical condition of the Premises as of the date hereof, and that Landlord makes no representation or warranty express or
implied, with respect to same, except as expressly set forth herein. EXCEPT FOR LANDLORD’S COVENANT OF QUIET
ENJOYMENT SET FORTH IN SECTION 34 AND ANY OTHER REPRESENTATIONS EXPRESSLY SET FORTH HEREIN, LANDLORD MAKES NO AND
EXPRESSLY HEREBY DENIES ANY REPRESENTATIONS OR WARRANTIES REGARDING THE CONDITION OR SUITABILITY OF THE PREMISES TO THE
EXTENT PERMITTED BY LAWS, AND TENANT WAIVES ANY RIGHT OR REMEDY OTHERWISE ACCRUING TO TENANT ON ACCOUNT OF THE CONDITION OR
SUITABILITY OF THE PREMISES, OR (EXCEPT WITH RESPECT TO LANDLORD’S WARRANTY SET FORTH IN SECTION 34) TITLE TO
THE PREMISES, AND TENANT AGREES THAT IT TAKES THE PREMISES “AS IS,” WITHOUT ANY SUCH REPRESENTATION OR WARRANTY,
INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES. Tenant has examined the Premises and title to the Premises, and has
found all of the same satisfactory for all purposes.

 

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9.       
   Liens. Tenant shall not, directly or indirectly, create, or permit to be created or to
remain, and shall remove and discharge (including, without limitation, by any statutory bonding procedure or any other
bonding procedure reasonably satisfactory to Landlord and Lender which shall be sufficient to prevent any loss of the
Landlord’s or Lender’s interest in the Premises) within thirty (30) days after obtaining knowledge thereof any
mortgage, lien, encumbrance or other charge on the Premises or the leasehold estate created hereby or any Base Rent or
Additional Rent payable hereunder which arises for any reason, other than: the Landlord’s Mortgage (and any assignment
of leases or rents collateral thereto); the Permitted Encumbrances or which subsequently arise with the prior written consent
of Landlord and Lender; and any mortgage, lien, encumbrance or other charge created by or resulting from any act or omission
by Landlord or those claiming by, through or under Landlord (other than Tenant). Landlord shall not be liable for any labor,
services or materials furnished to Tenant or to any party holding any portion of the Premises through or under Tenant and no
mechanic’s or other liens for any such labor, services or materials shall attach to the Premises or the
leasehold estate created hereby.

 

10.         Repairs
and Maintenance.

 

10.1        Tenant’s
Repair and Maintenance Obligations. Tenant shall keep, maintain and repair, at its sole cost and expense, the Premises, including,
without limitation, the roof walls, footings, foundations, HVAC, mechanical and electrical equipment and systems in or serving
the Premises and structural and nonstructural components and systems of the Premises, parking areas, sidewalks, roadways and landscaping
in safe and good condition and repair, and shall make all repairs and replacements (substantially equivalent in quality and workmanship
to the original work) of every kind and nature, whether foreseen or unforeseen, which may be required to be made, in order to keep
and maintain the Premises in good repair and condition, except for ordinary wear and tear and (other than for any Restoration required
by the terms of this Lease) any damage to the Premises by any Major Condemnation of the Premises. Tenant shall prevent deferred
maintenance from accumulating at the Premises. Landlord shall have the right to enter the Premises at reasonable times and upon
reasonable notice to Tenant to perform annual inspections of the Premises to ensure that the Premises are maintained in good working
order and that the Premises are free from maintenance issues and any other issues which would decrease the value of the Premises
once returned to Landlord at the end of the Term. Tenant shall do or cause others to do all shoring of the Premises or of the foundations
and walls of the Facility as may be reasonably required and every other act reasonably necessary for the preservation and safety
thereof (including, without limitation, any repairs required by Law as contemplated by Section 11), by reason or in connection
with any excavation or other building operation upon the Premises, and Landlord shall have no obligation to do so. Landlord shall
not be required to make any repair, replacement, maintenance or other work whatsoever, or to maintain the Premises in any way.
Nothing in the preceding sentence shall be deemed to preclude Tenant from being entitled to insurance proceeds or awards for any
taking to the extent provided in this Lease. Tenant shall, in all events, make all repairs, replacements and perform maintenance
and other work for which it is responsible hereunder, in a good, proper and workmanlike manner. Without limiting the generality
of the foregoing, Tenant shall be responsible for the performance of all maintenance and repairs of the Facility.

 

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10.2        Encroachments
and Non-Compliance Issues. If all or any part of the Facility shall encroach upon any property, street or right-of-way adjoining
or adjacent to the Premises, or shall violate the agreements or conditions affecting the Premises or any part thereof or shall
violate any Laws or Legal Requirements, or shall hinder, obstruct or impair any easement or right-of-way to which the Premises
is subject, then, promptly after written request of Landlord (unless such encroachment, violation of any agreements or conditions
of record, hindrance, obstruction or impairment (a) existed or was constructed prior to the Date of Rent Commencement and
constituted an encroachment, violation, hindrance, obstruction or impairment as of the Date of Rent Commencement; (b) is a Permitted
Encumbrance in existence as of the Date of Rent Commencement and constituted an encroachment, violation, hindrance, obstruction
or impairment as of the Date of Rent Commencement, or (c) subsequently arises with the prior written consent of Landlord and Lender,
and Landlord and Lender have obtained, at Tenant’s cost, affirmative title insurance coverage against any loss arising due
to any such matter on terms and conditions satisfactory to Landlord and Lender in their sole discretion, provided that this clause
(c) shall not relieve Tenant from any liability for the removal, remedying, repair or replacement of any such encroachment, violation,
hindrance, obstruction or impairment to the extent that the same exists) or of any person affected thereby, Tenant shall, at its
sole expense, either (i) obtain valid and effective waivers or settlements of all claims, liabilities and damages resulting
therefrom, or (ii) make such changes, including alterations to the Facility (subject, however, to Tenant’s maintenance and
repair obligations in Section 10.1) and take such other action as shall be necessary to remove or eliminate such encroachments,
violations, hindrances, obstructions or impairments, provided that, if Landlord’s or Lender’s consent is required for
such changes pursuant to this Lease, Landlord’s or Lender’s consent shall not be unreasonably withheld, conditioned
or delayed. Tenant shall have no liability for and shall not be required to take any action to remove or eliminate any Permitted
Encumbrance in existence as of the Date of Rent Commencement that constituted an encroachment, violation, hindrance, obstruction
or impairment as of the Date of Rent Commencement.

 

10.3        Tenant’s
Failure to Perform. If Tenant shall be in default under any of the provisions of this Section 10, Landlord may, after
thirty (30) days written notice to Tenant and failure of Tenant to cure during said period (or such longer period of time as may
reasonably be necessary, but under no circumstances longer than a total of ninety (90) days, if the default may not be cured within
thirty (30) days but Tenant has commenced and is diligently pursuing a cure of such default), but without notice in the event of
an emergency, do whatever is necessary to cure such default as may be appropriate under the circumstances for the account of and
at the expense of Tenant. If an emergency exists, Landlord shall use reasonable efforts to notify Tenant of the situation by phone
or other available communication before taking any such action to cure such default. All reasonable sums so paid by Landlord and
all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) so incurred, together
with interest at the Lease Default Rate from the date of payment or incurring of the expense, shall constitute Additional Rent
payable by Tenant under this Lease and shall be paid by Tenant to Landlord on demand.

 

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10.4        Inspection
Prior to Expiration of Term. One (1) year prior to the expiration of the Term of this Lease, Tenant shall at its own expense
cause the Premises to be inspected, the results of which shall be made available to Landlord and Lender not less than eleven (11)
months prior to the end of the Term, to determine whether the condition of the Premises complies with the requirements of this
Lease. In addition to any document or information which Tenant is expressly required to deliver pursuant to this Lease, Tenant
will also deliver to Landlord, promptly upon request, information with respect to the Premises reasonably (both as to content and
frequency) requested by Lender pursuant to the Mortgage or any other documents evidencing or securing the Loan; provided that this
shall not increase the obligations of Tenant to deliver environmental reports beyond that required in Section 38.

 

10.5        Lender
Required Repairs. Tenant shall be responsible for any repairs to the Facility or reserves for repairs to the Facility required
by Lender in accordance with the Loan Documents.

 

10.6        Life
Safety Repairs. Tenant shall make such repairs and replacements relating to items covered by temporary life safety code waivers
if such temporary life safety code waivers are not continued or are otherwise removed and shall correct any deficiencies or violations
previously covered by such waivers, at Tenant’s sole cost, within the time periods required by applicable governmental authorities.

 

10.7        Capital
Reserve Deposits. Tenant shall be required to make Capital Reserve Deposits and shall make monthly deposits with Landlord,
in an amount equal to one-twelfth (1/12) (or such greater amount as may be reasonably required by Lender) of the Capital Reserve
Deposit to fund future anticipated capital expenditures. The Capital Reserve Deposits shall be due and payable on the first (1st)
day of each month as Additional Rent. The Capital Reserve Deposits shall not bear interest, unless interest on the Capital Reserve
Deposits is paid to Landlord by Lender. The Capital Reserve Deposits shall be held by Landlord and/or Lender and shall be used
to pay the capital expenditures as they become due and payable. If the amount of Tenant’s payments as made under this Section 10.7
shall be less than the total amount due or otherwise required, then Tenant shall pay the full deficiency. Tenant shall provide
all capital expenditure draw requests to Landlord in writing along with receipts and or invoices documenting the amount of the
capital expenditure to be reimbursed by Landlord. Upon receipt of such receipts, invoices and/or additional documentation reasonably
requested by Landlord, Landlord shall reimburse Tenant for such costs up to the amount of Capital Reserve Deposits made by Tenant
and then being held by Landlord and/or Lender.

 

11.         Compliance
With Laws.

 

11.1        Tenant’s
Obligations. During the Term, Tenant shall comply with all Laws and Legal Requirements relating to the Premises. As used herein,
(i) the term “Laws” shall mean all present and future laws, statutes, codes, ordinances, orders, judgments,
decrees, injunctions, rules, regulations and requirements, even if unforeseen or extraordinary, of every duly constituted governmental
authority or agency (but excluding those which by their terms are not applicable to and do not impose any obligation on Tenant,
Landlord or the Premises or which are due to take effect after expiration of the Term), and (ii) the term “Legal Requirements”
shall mean all Laws and all covenants, restrictions and conditions now or in the future of record which may be applicable to Tenant,
Landlord (with respect to the Premises) or to all or any part of or interest in the Premises, or to the use, manner of use, occupancy,
possession, operation, maintenance, alteration, repair or reconstruction of the Premises.

 

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11.2        Tenant’s
Right to Contest. Notwithstanding anything herein to the contrary, after prior written notice to Landlord, Tenant, at Tenant’s
own expense, may contest by appropriate legal proceeding promptly initiated and conducted in good faith and with due diligence,
the validity of any Law or Legal Requirement, the applicability of any Law or Legal Requirement to Tenant or the Premises or any
alleged violation of any Law or Legal Requirement, provided that (i) Tenant is not in default of any of the provisions
of this Lease, which default has lapsed beyond any applicable notice and cure period; (ii) such proceeding shall be permitted under
and be conducted in accordance with the provisions of any instrument to which Tenant is subject and shall not constitute a default
thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (iii) neither
the Premises, nor any part thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled
or lost; (iv) Tenant shall promptly upon final determination thereof comply with any such Law or Legal Requirement determined to
be valid or applicable or cure any violation of any Law or Legal Requirement; (v) such proceeding shall suspend the enforcement
of the contested Law or Legal Requirement against Tenant or the Premises; and (vi) Tenant shall furnish such security as may be
required in the proceeding to insure compliance with such Law or Legal Requirement, together with all interest and penalties payable
in connection therewith. Landlord may apply any such security, as necessary to cause compliance with such Law or Legal Requirement
at any time when, in the reasonable judgment of Landlord, the validity, applicability or violation of such Law or Legal Requirement
is finally established or the Premises (or any part thereof or interest therein) shall be in danger of being sold, forfeited, terminated,
cancelled or lost.

 

12.         Access
to Premises.

 

12.1        Access
Rights. Upon reasonable notice to Tenant, Landlord and Lender and their respective employees, contractors, agents and representatives
may enter onto the Premises to (i) show the Premises to purchasers and potential purchasers, and to mortgagees and potential mortgagees,
or (ii) for the purpose of inspecting the Premises or performing any work which Landlord is permitted to perform under this Lease;
provided, that, for purposes of subpart (ii) of this sentence, Landlord and Lender shall not be required to give notice
prior to entry onto the Premises in the event of an emergency situation. Upon reasonable notice to Tenant, during the six (6) months
preceding the expiration or earlier termination of this Lease, Landlord also may enter onto the Premises to show the Premises to
persons wishing to rent the same, at reasonable times and accompanied by a representative of Tenant. No such entry shall constitute
an eviction of Tenant but any such entry shall be done by Landlord in such reasonable manner as to minimize any disruption of Tenant’s
business operations.

 

12.2        Lender
Meetings. Upon request of Lender, Tenant will arrange for meetings between such Lender (or its representatives) and a representative
of Tenant designated by Tenant to discuss operations at the Premises; provided, that Tenant shall not be obligated to arrange
for such meetings more than once in each calendar quarter.

 

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12.3        Lender’s
Rights under Mortgage. Further, Tenant hereby agrees to the licenses and other rights to enter onto the Premises which are
granted to Lender under the Mortgage, and Tenant shall cause each and every subtenant and assignee of Tenant to agree thereto.

 

13.         Waiver
of Subrogation. Notwithstanding anything in this Lease to the contrary, Landlord and Tenant each waive any rights of action
for negligence against the other party, which may arise during the Term for damage to the Premises or to the property therein resulting
from any fire or other casualty, but only to the extent covered by insurance or to the extent the same would have been covered
by the insurance had Tenant maintained the insurance to be maintained under this Lease.

 

14.         Damage;
Destruction.

 

14.1        In
the event of any damage to or destruction of the Premises by fire, the elements or other casualty during the Term (a “Casualty”),
Tenant shall give Landlord and Lender, if any, prompt written notice thereof. Tenant shall adjust, collect and compromise any and
all claims covered by insurance.

 

14.2        In
the event of any such Casualty (whether or not insured against) the Term shall continue and there shall be no abatement or reduction
of Base Rent, Additional Rent or of any other sums payable by Tenant hereunder.

 

14.3        All
proceeds of any insurance required to be carried hereunder less any and all expenses of Landlord or Lender in collecting such proceeds,
if any (the “Net Proceeds”) shall be delivered to Tenant to apply in accordance with the terms of this Lease
if (i) the estimated cost of restoring or repairing the Premises to as nearly as possible to its value, condition, character, utility
and useful life immediately before such Condemnation or Casualty, but in any event assuming the Premises have been maintained in
accordance with the requirements of Section 10 (such restoration or repair of the Premises, whether in connection with a Condemnation
or a Casualty, as the context requires, herein called a “Restoration”), shall be the C&C Threshold Repair
Amount or less, (ii) no Event of Default or Disqualifying Default (as hereinafter defined) has occurred and is continuing,
and (iii) the long-term unsecured debt of Tenant is rated at least BBB by Standard & Poor’s Ratings Services, a division
of the McGraw Hill Companies, Inc. (“S&P”) and at least Baa2 by Moody’s Investors Service, Inc. (“Moody’s”)
(the “Minimum Rating”). In all other events the Net Proceeds shall be delivered to a trustee which shall be
a federally insured bank or other financial institution, selected by Landlord and Tenant and reasonably satisfactory to Lender
(the “Trustee”) to be held and disbursed in accordance with the provisions of Section 14.5; provided,
however, that if at the time of the delivery of the Net Proceeds a Mortgage is in existence, the Lender or the servicer
of the Loan may act as Trustee without the consent of either Landlord or Tenant. As used herein, a “Disqualifying Default”
shall mean and include (i) any uncured failure to make any payment of Base Rent when due hereunder, and (ii) the occurrence of
any event or condition described in subparts (vi) or (vii) of Section 23.1 hereof without regard to any notice or lapse of
time set forth in such subparts which may be required for such events or conditions to mature into an Event of Default.

 

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14.4        Tenant
shall, whether or not the Net Proceeds of such insurance are sufficient for the purpose or delivered to Tenant, promptly complete
the Restoration of the Improvements damaged by any such Casualty in compliance with all requirements set forth in this Lease and
all Legal Requirements, and such Restoration shall be completed in such a manner as not to impair the market value or usefulness
of the Premises for use in Tenant’s ordinary course of business, all at Tenant’s sole cost and expense. Tenant shall
notify Landlord in writing of the estimated cost thereof (the “Restoration Cost”). Landlord and its agents,
employees and contractors shall have the right to enter the Premises for the purpose of assessing and adjusting the amount of the
Restoration Cost, and Landlord shall have the right in its reasonable discretion to reasonably approve the amount of the Restoration
Cost. Tenant shall not have any right to abate the payment of Fixed Rent or Additional Rent as a result of any Casualty.

 

14.5        Net
Proceeds held by the Trustee shall be invested in accordance with prudent investment standards adopted by the Landlord, Lender
and Tenant from time to time, and shall be disbursed from time to time in accordance with the following conditions:

 

(a)          Before
commencing the Restoration the architects, general contractor(s), and plans and specifications for the Restoration shall be approved
by Landlord and Lender, which approval shall not be unreasonably withheld or delayed; and which approval shall be granted to the
extent that the plans and specifications depict a Restoration which is substantially similar to the improvements and equipment
which existed prior to the occurrence of the Casualty or Taking, whichever is applicable, or, if the Facility was under construction
prior thereto, which depict a Restoration to the condition to which the Facility was to have been constructed.

 

(b)          At
the time of any requested disbursement, no Event of Default or Disqualifying Default shall exist and no mechanics’ or materialmen’s
liens shall have been filed and remain undischarged or unbonded, with the exception of any mechanics’ or materialmen’s
liens caused by Landlord.

 

(c)          Disbursements
shall be made from time to time in an amount not exceeding the hard and soft cost of the work and costs incurred since the last
disbursement upon receipt of (A) satisfactory evidence, including architects’ certificates of the stage of completion,
of the estimated costs of completion and of performance of the work to date in a good and workmanlike manner in accordance with
the contracts, plans and specifications, (B) partial releases of liens, if the same are obtainable or, if such partial releases
are not obtainable, endorsements to Landlord’s and Lender’s title insurance policies showing no exceptions for mechanics’
or materialmen’s or any similar liens, and (C) other reasonable evidence of cost and payment so that Landlord can verify
that the amounts disbursed from time to time are represented by work that is completed in place or delivered to the site and free
and clear of mechanics’ lien claims.

 

(d)          Each
request for disbursement shall be accompanied by a certificate of Tenant or its architect describing the work, materials or other
costs or expenses for which payment is requested, stating the cost incurred in connection therewith and stating that Tenant has
not previously received payment for such work or expense and the certificate to be delivered by Tenant upon completion of the work
shall, in addition, state that the work has been substantially completed and complies with the applicable requirements of this
Lease.

 

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(e)          The
Trustee may retain ten percent (10%) of the Net Proceeds until the Restoration is at least eighty percent (80%) complete and five
percent (5%) of the Net Proceeds thereafter, which amount may continue to be held as retainage until the completion of all punch
list items following substantial completion of the Restoration.

 

(f)          At
all times the undisbursed balance of the Net Proceeds held by Trustee plus any funds contributed thereto by Tenant, at its option,
shall be not less than the cost of completing the Restoration, free and clear of all liens.

 

(g)          In
addition, before commencement of Restoration and at any time during Restoration, if the estimated cost of Restoration, as reasonably
determined by an independent architect mutually agreed upon by the parties in their reasonable discretion, exceeds the amount of
the Net Proceeds available for such Restoration, the amount of such excess shall (i) be paid by Tenant to the Trustee to be
added to the Net Proceeds, (ii) be secured by Tenant by posting a payment bond or other security in form and in the amount
of such excess, as reasonably satisfactory to Landlord, (iii) be secured by Tenant by providing Landlord with an irrevocable
letter of credit (“Letter of Credit”) in a form reasonably satisfactory to Landlord and issued by a bank which
is a commercial bank or trust company reasonably satisfactory to Landlord and insured by the Federal Deposit Insurance Corporation
(FDIC), having banking offices at which the Letter of Credit may be drawn down upon in Irvine, California, payable at sight to
Landlord, or (iv) Tenant shall fund at its own expense the costs of such Restoration until the remaining Net Proceeds are
sufficient for the completion of the Restoration. For purposes of determining the source of funds with respect to the disposition
of funds remaining after the completion of Restoration, the Net Proceeds shall be deemed to be disbursed prior to any amount added
by Tenant.

 

(h)          Provided
no Event of Default or Disqualifying Default exists and is continuing, any Net Proceeds remaining after final payment has been
made for such Restoration shall be promptly delivered to Tenant. Notwithstanding any contrary provision hereof, if an Event of
Default or a Disqualifying Default has occurred and is continuing, Landlord shall be entitled to retain any remaining Net Proceeds
and to apply the same to either repair the damages or to pay other amounts accrued and payable to Landlord hereunder or Lender
under the Mortgage, at Lender’s or, if there is then no Lender, Landlord’s sole option. No such retention by Landlord
shall impose on Landlord any obligation to repair the Premises or relieve Tenant of its obligations to repair the Premises.

 

15.         Condemnation.

 

15.1        Promptly
upon obtaining knowledge of any proceeding for condemnation or eminent domain with respect to the Premises (a “Taking”
or “Condemnation”), Tenant and Landlord shall each notify the other and Lender, and Tenant shall be entitled
to participate in such proceeding at Tenant’s sole expense. Subject to the provisions of this Section 15, Tenant hereby
irrevocably assigns to Landlord’s Lender or to Landlord, in that order, any award or payment in respect of any Condemnation
of the Premises, except that (except as hereinafter provided) nothing in this Lease shall be deemed to assign to Landlord or Lender
any award relating to the value of the leasehold interest created by this Lease or any award or payment on account of an interruption
of Tenant’s business at the Premises or the Tenant’s trade fixtures, moving expenses and out-of-pocket expenses incidental
to the move, if available, to the extent Tenant shall have a right to make a separate claim therefor against the condemnor, it
being agreed, however, that Tenant shall in no event be entitled to any payment that reduces the award to which Landlord is or
would be entitled for the condemnation of Landlord’s interest in the Premises.

 

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15.2        If
(i) the entire Premises or (ii) a material portion of the Facility or land comprising a portion of the Premises the loss
of which would, in Tenant’s commercially reasonable judgment, render the Premises unsuitable for Restoration or for the continued
use and occupancy in Tenant’s business after Restoration, shall be the subject of a Taking (a “Major Condemnation”),
then not later than ninety (90) days after such Taking has occurred, Tenant shall serve written notice upon Landlord and Lender
(“Tenant’s Termination Notice”) of Tenant’s intention to terminate this Lease on any Base Rent payment
Due Date specified in such notice, which Due Date (the “Involuntary Conversion Termination Date”) shall be no
sooner than sixty (60) days and no later than one hundred twenty (120) days after Tenant’s Termination Notice but,
in any event, not later than the last day of the Term of this Lease.

 

15.3        In
the event of any Taking of a portion of the Premises which does not result in a termination of this Lease, the net award resulting
from the Taking, i.e., after deducting therefrom all expenses incurred in the collection thereof shall be held in accordance
with Section 14.3. In the event of any such Taking, Tenant shall promptly commence and diligently complete the Restoration
(as defined in Section 14.3) of the Premises in accordance with all Laws and Legal Requirements and all other terms of this
Lease. Any net award from Condemnation not resulting in a termination of this Lease shall be disbursed in the same manner as set
forth with respect to Net Proceeds in Section 14.5, provided, however, that Net Proceeds remaining after final payment has
been made for such Restoration shall be promptly delivered to Landlord and shall be owned by Landlord.

 

15.4        No
agreement with any Taking authority in settlement of or under threat of any Taking shall be made by Landlord or Lender without
Tenant’s prior written consent (provided, that Tenant’s consent shall, not be required if an Event of Default or a
Disqualifying Default then exists and is continuing), or by Tenant without Landlord’s and Lender’s prior written consent.

 

15.5        In
the case of any Taking, all Base Rent, Additional Rent and other obligations of Tenant shall continue unabated until the termination
of this Lease.

 

16.         Assignment
and Subletting.

 

16.1        Tenant
shall not have the right to assign this Lease or any interest therein, or to sublet the whole or any part of the Premises without
the prior written consent of Landlord, which consent may be withheld in Landlord’s sole and absolute discretion. In the event
of any permitted assignment or sublease of this Lease, Tenant shall remain liable for the obligations of Tenant hereunder, which
liability of Tenant shall be and remain that of a primary obligor and not a guarantor or surety. Tenant agrees that in the case
of a permitted assignment of this Lease, Tenant shall, within fifteen (15) days after the execution and delivery of any such
assignment, deliver to Landlord (i) a duplicate original of such assignment in recordable form and (ii) an agreement
executed and acknowledged by the assignee in recordable form wherein the assignee shall agree to assume and agree to observe and
perform all of the terms and provisions of this Lease on the part of the Tenant to be observed and performed from and after the
date of such assignment. In the case of a permitted sublease, Tenant shall, within fifteen (15) days after the execution and
delivery of such sublease, deliver to Landlord a duplicate original of such sublease. In no event shall Tenant be permitted to
assign or sublet this Lease to an entity with long-term unsecured debt rated below the Minimum Rating. Any sublease or license
shall be subject and subordinate to this Lease.

 

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16.2         For
the purposes of this Section 16.2, the term “assign” or “assignment” shall include the following events:
if Tenant is a partnership, a withdrawal or change (voluntary, involuntary or by operation of law or otherwise) of any of the general
partners thereof or of general and limited partners owning in the aggregate fifty percent (50%) or more of the capital and profits
of the partnership, or the dissolution of the partnership; or if Tenant consists of more than one person, a purported assignment,
transfer, mortgage or encumbrance (voluntary, involuntary or by operation of law or otherwise) from one thereof unto the other
or others thereof; or, if Tenant is a corporation, any dissolution merger, consolidation or other reorganization of Tenant or any
change in the ownership of fifty percent (50%) or more of its capital stock or fifty percent (50%) or more of its voting stock
from the ownership existing on the date of execution hereof; or, the sale of fifty percent (50%) or more of the value of the assets
of Tenant.

 

16.3         Upon
the occurrence of an Event of Default under this Lease, Landlord shall have the right to collect and enjoy all rents and other
sums of money payable under any sublease of any of the Premises, and Tenant hereby irrevocably and unconditionally assigns such
rents and money to Landlord, which assignment may be exercised upon and after (but not before) the occurrence of an Event of Default.

 

17.         Alterations.

 

17.1         Tenant
may make non-structural, interior and/or exterior alterations, changes, additions, improvements, reconstructions or replacements
of any of the Premises (“alterations”), other than those which would result in a diminution in the value of
the Premises, that do not exceed the Threshold Repair Amount in the aggregate. Unless required by applicable federal, state or
local law or regulation, Tenant shall obtain the prior written consent of Landlord and Lender to any alteration (i) which
would result in a diminution in the value of the Premises, (ii) the cost of which in the aggregate exceeds the Threshold Repair
Amount or (iii) which is structural in nature, which consent to a structural alteration shall not be unreasonably withheld.
Without limitation, in determining whether a structural alteration is “reasonable” for purposes of subsection (iii)
of the preceding sentence, Landlord shall have the right to consider whether such alteration would impair the structural integrity
of the Premises, would impair the fair market value of the Premises, or would otherwise adversely affect the overall marketability
of the Premises, as determined in Landlord’s reasonable discretion.

 

17.2         Tenant
shall do all such work in a good and workmanlike manner, at its own cost, and in accordance with Laws and Legal Requirements. Tenant
shall discharge, within sixty (60) days after notice of the filing of the same (by payment or by filing the necessary bond,
or otherwise), any mechanics’, materialmen’s or other lien against the Premises and/or Landlord’s interest therein,
which lien may arise out of any payment due for any labor, services, materials, supplies, or equipment furnished to or for Tenant
in, upon, or about the Premises.

 

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17.3         At
Tenant’s sole cost and without liability to Landlord, Landlord agrees to reasonably cooperate with Tenant (including signing
applications upon Tenant’s written request) in obtaining any necessary permits, variances and consents for any alterations
which Tenant is permitted or required to make hereunder; provided none of the foregoing shall, in any manner, result in a material
reduction of access to or ingress to or egress from the Premises, a diminution in the value of the Premises, a change in zoning
having a material adverse effect on the ability to use the Premises for the Healthcare Business by Tenant or otherwise have a material
adverse effect on the ability to use the Premises for the Healthcare Business by Tenant.

 

17.4         Tenant
agrees that in connection with any alteration: (i) the fair market value of the Premises shall not be lessened by more than
a de minimus extent after the completion of any such alteration, or its structural integrity impaired; (ii) all such alterations
shall be performed in a good and workmanlike manner, and shall be expeditiously completed in compliance with all Legal Requirements;
(iii) Tenant shall promptly pay all costs and expenses of any such alteration; (iv) Tenant shall procure and pay for
all permits and licenses required in connection with any such alteration; and (v) all alterations shall be made (in the case
of any alteration the estimated cost of which in any one instance exceeds the Threshold Repair Amount) under the supervision of
an architect or engineer and in accordance with plans and specifications which shall be submitted to Landlord and Lender (for information
purposes only) prior to the commencement of the alterations.

 

17.5         All
contracts and payments to contractors, subcontractors, suppliers and other persons in connection with any alteration, Restoration,
repair or other work performed at the Premises shall be entered into, made and performed in compliance with all Laws and Legal
Requirements.

 

18.         Signs.
At Tenant’s sole cost, Tenant may install, replace, relocate and maintain and repair in and on the Facility, such signs,
awnings, lighting effects and fixtures as may be used from time to time by Tenant (collectively, “Signs”). At
Tenant’s sole cost and without liability to Landlord, Landlord agrees to cooperate with Tenant (including signing applications
upon Tenant’s written request) in obtaining any necessary permits, variances and consents for Tenant’s Signs. All Signs
of Tenant shall comply with Laws and Legal Requirements.

 

19.         Surrender.

 

19.1         At
the expiration or other termination of this Lease, Tenant shall surrender the Premises to Landlord in as good order and condition
as they were at the commencement of the Term or may be put in thereafter in accordance with this Lease, reasonable wear and tear
and (other than for any Restoration required by the terms of this Lease) damage to the Premises by any Major Condemnation of the
Premises excepted. All alterations, except Tenant’s furniture, trade fixtures, satellite communications dish and equipment,
computer and other similar moveable equipment and shelving (“trade fixtures”), shall become the property of
Landlord and shall remain upon and be surrendered with the Premises as a part thereof at the termination or other expiration of
the Term. At the expiration or termination of the Term, Tenant shall remove its trade fixtures, as well as its Signs and identification
marks, from the Premises. Tenant agrees to repair any and all damage caused by such removal. Trade fixtures and personal property
not so removed at the end of the Term or within thirty (30) days after the earlier termination of the Term for any reason
whatsoever shall become the property of Landlord, and Landlord may thereafter cause such property to be removed from the Premises.
The reasonable cost of removing and disposing of such property and repairing any damage to any of the Premises caused by such removal
shall be borne by Tenant. Landlord shall not in any manner or to any extent be obligated to reimburse Tenant for any property which
becomes the property of Landlord as a result of such expiration or earlier termination. The provisions of this Section 19.1
shall survive the termination or expiration of this Lease for a period of twenty-four (24) months.

 

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19.2         Upon
termination of this Lease for any reason, Tenant will return to Landlord the Premises licensed by the State of Texas and by any
and all governmental agencies having jurisdiction over the Premises as a skilled nursing facility with at least the Minimum Licensed
Beds (subject to any reduction in the number of licensed beds required by any governmental authority solely as a result of changes
in laws, rules and regulations relating to the physical attributes of the improvements on the Premises) with an unrestricted license
in full force and good standing for no less than the Minimum Licensed Beds (subject to any reduction in the number of licensed
beds required by any governmental authority solely as a result of changes in laws, rules and regulations relating to the physical
attributes of the improvements on the Premises).

 

19.3         Upon
the expiration or earlier termination of this Lease, Tenant shall enter into a mutually agreeable operating transition agreement
(the “OTA”) with Landlord in order to provide for the orderly transition of the operation of the facility following
the termination of this Lease. The OTA shall provide for a procedure for the assignment and assumption of all resident agreements,
operating agreements and other agreements that Landlord elects to have assigned from Tenant. In addition, the OTA shall address
the transition of licensing requirements for the Facility under all applicable Legal Requirements.

 

20.         Subordination
of Lease; Mortgage Reserves.

 

20.1         Subordination.
This Lease shall be subject and subordinate to any Mortgage and to all advances made upon the security thereof provided that Lender
shall execute and deliver to Tenant an agreement in a form reasonably requested by Lender (“SNDA Agreement”),
providing that Lender recognizes this Lease and agrees to not disturb Tenant’s possession of the Premises in the event of
foreclosure if Tenant is not then in default hereunder beyond any applicable cure period. Tenant agrees, upon receipt of such SNDA
Agreement, to execute such SNDA Agreement and such further reasonable instruments) as may be necessary to so subordinate this Lease.
The term “Mortgage” shall include any mortgages, deeds of trust or any other similar hypothecations on the Premises
securing Lender’s Loan to Landlord, regardless of whether or not such Mortgage is recorded.

 

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20.2         Attornment.
Upon written notice to Tenant, Tenant agrees to attorn, from time to time, to Lender, and to any purchaser of the Premises, for
the remainder of the Term, provided that Lender or such purchaser shall then be entitled to possession of the Premises, subject
to the provisions of this Lease. Tenant shall be entitled to rely on the truth of the facts set forth in any such notice and shall
not be liable to Landlord for such reliance or attornment. This subsection shall inure to the benefit of Lender or such purchaser,
shall apply notwithstanding that, as a matter of Law, this Lease may terminate upon the foreclosure of the Mortgage (in which event
the parties shall execute a new lease for the remainder of the Term containing the provisions of this Lease), shall be self-operative
upon any such demand, and no further instrument shall be required to give effect to said provisions. Each such party shall however,
upon demand of the other, execute instruments in confirmation of the foregoing provisions reasonably satisfactory to the parties
acknowledging such subordination, non-disturbance and attornment and setting forth the terms and conditions hereof.

 

20.3         Consent
to Assignment of Lease to Lender. Tenant hereby consents to any assignment of this Lease by Landlord to or for the benefit
of any Lender. Without limitation of the preceding sentence, Tenant hereby specifically consents to any Assignment of Lease and
Rents executed by Landlord to and for the benefit of the Lender named herein.

 

20.4         Mortgage
Reserves. Notwithstanding anything to the contrary in this Lease, all real estate tax, insurance reserve, capital expenditure
reserves or other reserves required by the Lender against the Premises during the term of this Lease shall be paid by the Tenant
to Landlord and shall be repaid to Tenant to the extent not applied in accordance with this Lease or the Mortgage when such holder
repays such sums to Landlord and to the extent same are not required to be held for any replacement mortgage or are required to
fund obligations of the Tenant under this Lease. Real estate taxes for the first year of the Lease Term shall be prorated in the
same manner as the real estate taxes were prorated in connection with Landlord’s acquisition of the Premises. Real estate
taxes for the last year of the Lease Term shall be prorated based on the number of days which have elapsed as of the date the Lease
terminates.

 

21.         Tenant’s
Obligation to Discharge Liens. Prior to the imposition of any fine, lien, interest or penalty Tenant shall timely pay and discharge
all amounts and obligations which Tenant assumes or agrees to pay or discharge pursuant to this Lease, together with every fine,
penalty and interest with respect thereto.

 

22.         Utilities.
Tenant agrees to timely pay for all utilities consumed by it in the Premises, prior to delinquency.

 

23.         Tenant
Default.

 

23.1        Any
of the following occurrences or acts shall constitute an Event of Default (herein so called) under this Lease:

 

(a)          Tenant’s
failure to make any payment when due of any installment of Base Rent payable hereunder, and such default shall continue for ten
(10) days after written notice of such default is sent to Tenant by Landlord (or Lender).

 

(b)          Tenant’s
failure to make any payment when due of any installment of Additional Rent payable hereunder and such default shall continue for
ten (10) days after notice of such default is sent to Tenant by Landlord (or Lender).

 

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(c)          The
failure by Tenant to maintain insurance as required under this Lease, provided that if the insurance required under this Lease
lapses for a period not in excess of thirty (30) days, and Tenant reinstates such lapsed insurance without a claim having
been made, then such Event of Default shall be deemed cured for purposes of this Lease, provided further that Tenant shall indemnify
Landlord for any claim arising in connection with such lapsed insurance.

 

(d)          Tenant’s
failure to abide by any of the other covenants, agreements or obligations of this Lease, and such default shall continue for more
than thirty (30) days after written notice thereof from Landlord (or Lender) specifying such default, provided, that if Tenant
has commenced to cure within said thirty (30) days, and thereafter is in good faith diligently prosecuting same to completion,
said thirty (30) day period shall be extended, for a reasonable time (not to exceed one hundred eighty (180) days or, with
respect to a breach of Tenant’s obligations under Section 38, such longer period as may reasonably be necessary to cure
such default so long as (i) Tenant delivers to Landlord a certificate of a qualified environmental remediation specialist
that such default could not be cured within such one hundred eighty (180) days but is curable, and (ii) Tenant is in good
faith diligently prosecuting such cure to completion) where, due to the nature of a default, it is unable to be completely cured
within thirty (30) days.

 

(e)          Any
execution or attachment shall be issued against Tenant or any of its property whereby the Premises shall be taken or occupied or
attempted to be taken or occupied by someone other than Tenant, and the same shall not be bonded, dismissed, or discharged as promptly
as possible under the circumstances

 

(f)          Tenant
(i) shall make any assignment or other act for the benefit of creditors, (ii) shall file a petition or take any other
action seeking relief under any state or federal insolvency or bankruptcy Laws, or (iii) shall have an involuntary petition
or any other action filed against either of them under any state or federal insolvency or bankruptcy Laws which petition or other
action is not vacated or dismissed within sixty (60) days after the commencement thereof.

 

(g)          The
estate or interest of Tenant in the Premises shall be levied upon or attached in any proceeding and such estate or interest is
about to be sold or transferred and such process shall not be vacated or discharged within sixty (60) days after such levy
or attachment.

 

(h)          Any
material representation or warranty made by Tenant to Landlord herein or in any document delivered pursuant to this Lease is misleading
or false when made.

 

(i)          The
occurrence of an Adverse Healthcare Event at the Facility; provided if (i) the default described in this Section is curable, (ii)
Tenant diligently commences the cure of such default and uses commercially reasonable efforts to diligently pursue any appeals
or other required actions in accordance with applicable laws and regulations, and (iii) such default does not affect the ability
of Tenant to comply with its financial obligations under this Lease, then such Adverse Healthcare Event shall not constitute a
default until the earlier to occur of (A) final, adverse action upholding, in whole or in part, such termination, suspension, or
material adverse action or restriction or (B) the passage of ninety (90) days from the date such termination, suspension or material
adverse action or restriction was instituted without a final action having occurred.

 

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23.2         If
an Event of Default shall have occurred and be continuing, Landlord shall be entitled to all remedies available at law or in equity.
To the extent permitted by applicable law, Landlord shall not be required to serve Tenant with any notice or demands as a prerequisite
to its exercise of any of its rights or remedies under this Lease, other than those notices and demands specifically required under
this Lease. Without limiting the foregoing, Landlord shall have the right to give Tenant notice of Landlord’s termination
of the Term of this Lease. Upon the giving of such notice, the Term of this Lease and the estate hereby granted shall expire and
terminate on such date as fully and completely and with the same effect as if such date were the date herein fixed for the expiration
of the Term of this Lease, and all rights of Tenant hereunder shall expire and terminate, but Tenant shall remain liable as hereinafter
provided.

 

23.3         If
an Event of Default shall have occurred and be continuing, Landlord shall have the immediate right, whether or not the Term of
this Lease shall have been terminated pursuant to Section 23.2, to re-enter and repossess the Premises and change the locks,
and the right to remove all persons and property therefrom by summary proceedings, ejectment, any other legal action or in any
lawful manner Landlord determines to be necessary or desirable. Landlord shall be under no liability by reason of any such re-entry,
repossession or removal. No such re-entry, repossession or removal shall be construed as an election by Landlord to terminate this
Lease unless a notice of such termination is given to Tenant pursuant to Section 23.2. In order to regain possession of the
Premises and to deny Tenant access thereto, Landlord or its agent may, at the expense and liability of the Tenant, alter or change
any or all locks or other security devices controlling access to the Premises without posting or giving notice of any kind to the
Tenant and Landlord shall have no obligation to provide Tenant a key to new locks installed in the Premises or grant Tenant access
to the Premises. Tenant shall not be entitled to recover possession of the Premises, terminate this Lease, or recover any actual,
incidental, consequential, punitive, statutory or other damages or award of attorneys’ fees, by reason of Landlord’s
alteration or change of any lock or other security device and the resulting exclusion from the Premises of the Tenant or Tenant’s
agents, servants, employees, customers, licensees, invitees or any other persons from the Premises.

 

23.4         At
any time or from time to time after a re-entry, repossession or removal pursuant to Section 23.3, whether or not the Term
of this Lease shall have been terminated pursuant to Section 23.2, Landlord may (but, except to the extent expressly required
by any applicable Law, shall be under no obligation to) relet the Premises for the account of Tenant, in the name of Tenant or
Landlord or otherwise, without notice to Tenant, for such term or terms and on such conditions and for such uses as Landlord, in
its absolute discretion, may determine. Landlord may collect any rents payable by reason of such reletting. Except to the extent
required by applicable Law, Landlord shall not be liable for any failure to relet the Premises or for any failure to collect any
rent due upon any such reletting.

 

23.5         No
expiration or termination of the Term of this Lease pursuant to Section 23.2, by operation of law or otherwise, and no re-entry,
repossession or removal pursuant to Section 23.3 or otherwise, and no reletting of the Premises pursuant to Section 23.4
or otherwise, shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such expiration, termination,
re-entry, repossession, removal or reletting,

 

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23.6         In
the event of any expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal of
persons or property therefrom by reason of the occurrence of an Event of Default, Tenant shall pay to Landlord all Base Rent, Additional
Rent and other sums required to be paid by Tenant, in each case together with interest thereon at the Lease Default Rate from the
due date thereof to and including the date of such expiration, termination, re-entry, repossession or removal; and thereafter,
Tenant shall, until the end of what would have been the Term of this Lease in the absence of such expiration, termination, re-entry,
repossession or removal and whether or not the Premises shall have been relet, be liable to Landlord for, and shall pay to Landlord,
as liquidated and agreed current damages: (i) all Base Rent, Additional Rent and other sums which would be payable under this
Lease by Tenant in the absence of any such expiration, termination, re-entry, repossession or removal, less (ii) the net proceeds,
if any, of any reletting effected for the account of Tenant pursuant to Section 23.4, after deducting from such proceeds all
reasonable expenses of Landlord in connection with such reletting, including, without limitation, all repossession costs, brokerage
commissions, reasonable attorneys’ fees and expenses (including, without limitation, fees and expenses of appellate proceedings),
alteration costs and expenses of preparation for such reletting. Tenant shall pay such liquidated and agreed current damages on
the dates on which Base Rent would be payable under this Lease in the absence of such expiration, termination, re-entry, repossession
or removal, and Landlord shall be entitled to recover the same from Tenant on each such date.

 

23.7         In
lieu of the remedy set forth in Section 23.6, at any time after any such expiration or termination of the Term of this Lease or
re-entry or repossession of the Premises or removal of persons or property thereon by reason of the occurrence of an Event of Default,
Landlord shall be entitled to recover from Tenant, and Tenant shall pay to Landlord on demand, as and for liquidated and agreed
final damages for Tenant’s default and in lieu of all liquidated and agreed current damages beyond the date of such demand
(it being agreed that it would be impracticable or extremely difficult to fix the actual damages), an amount equal to the sum of
(i) the excess, if any of (A) the aggregate of all Base Rent, Additional Rent and other sums which would be payable under
this Lease for what would be the then-unexpired Term of this Lease in the absence of such expiration, termination, re-entry, repossession
or removal, discounted at the rate equal to the then current rate on U.S. Treasury obligations of comparable maturity to such Term
(the “Treasury Rate”), but in no event greater than the non-default rate of interest for the Loan (such lower
rate being referred to as the “Discount Rate”) over (B) the amount of such rental loss that Tenant proves
could be reasonably avoided by commercially reasonable mitigation efforts by Landlord, discounted at the Discount Rate for the
same period, plus (ii) all reasonable legal fees and other costs and expenses incurred by Landlord and Lender as a result
of Tenant’s default under this Lease. If any Law shall limit the amount of liquidated final damages to less than the amount
above agreed upon, Landlord shall be entitled to the maximum amount allowable under such Law.

 

Except as specificallyl
set forth in this Lease, mention in this Lease of any particular remedy shall not preclude Landlord from any other remedy at law
or in equity, including the right of injunction. Tenant waives any rights of redemption granted by any Laws if Tenant is evicted
or dispossessed, for any cause, or if Landlord obtains possession of the Premises by reason of the violation by Tenant of any of
the terms of this Lease.

 

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23.8         In
addition to the foregoing remedies set forth in this Section 23 and all other remedies available at law or in equity, and
regardless of whether or not an Event of Default has occurred under this Lease, if Tenant has failed to perform any of its duties,
obligations, covenants or agreements under this Lease, Landlord may give notice to Tenant that it has failed to perform any such
duty, obligation, covenant or agreement (herein called a “Notice of Breach”) and, if Tenant fails to cure such
failure within ten (10) days after receipt of the Notice of Breach, Landlord may thereafter pursue any rights or remedies available
to it at law or in equity including, without limitation, filing a suit for damages as a result of such breach or a suit for specific
performance of any such duties, obligations, covenants or agreements. Any Notice of Breach delivered under this Section 23.8
or any such rights or remedies pursued by Landlord shall not be deemed to be a notice of default under any provision of this Section 23
and shall not result, with or without the passage of time, in an Event of Default existing under this Lease; provided that the
delivery of any such Notice of Breach shall not limit Landlord’s right (which right will not be exercised without the consent
of Lender so long as the Premises are subject to a Mortgage which requires Lender’s consent for the exercise thereof) to
subsequently deliver notice (with respect to the same event or condition which is the subject of such Notice of Breach or any other
event or condition) which will declare or, with the passage of time, result in an Event of Default hereunder. Further, after delivery
of any such Notice of Breach, but without notice in the event of an emergency, if Tenant fails to cure such breach during the time
that Tenant has to cure such breach under Section 23.1 above, Landlord may do whatever is reasonably necessary and permitted
hereunder to cure such breach as may be appropriate under the circumstances for the account of and at the expense of Tenant. All
reasonable sums so paid by Landlord and all reasonable costs and expenses (including attorneys’ fees and expenses) so incurred,
together with interest thereon at the Lease Default Rate from the date of payment, shall constitute Additional Rent payable by
Tenant under this Lease and shall be paid by Tenant to Landlord on demand.

 

23.9         Tenant
acknowledges that one of the rights and remedies available to Landlord under applicable law is to apply to a court of competent
jurisdiction for the appointment of a receiver to take possession of part or all of the Premises, to collect the rents, issues,
profits and income of the Premises and to manage the operation of the Premises. Tenant further acknowledges that the revocation
or suspension of the certification of any portion of the Premises for provider status under Medicare or Medicaid (or successor
programs) for a period of thirty (30) days or more and/or the revocation or suspension of a license relating to the operation of
any portion of the Premises for its intended use under the laws of the State for a period of thirty (30) days or more will materially
and irreparably impair the value of Landlord's investment in the Premises. Therefore, in any of such events, and in addition to
any other right or remedy of Landlord under this Lease, Landlord may petition any appropriate court for, and Tenant hereby consents
to, the appointment of a receiver to take possession of the Property, to manage its operation, to collect and disburse all rents,
issues, profits and income generated thereby and to preserve or replace to the extent possible any such license and provider certification
for the Property or to otherwise substitute the licensee or provider thereof. The receiver shall be entitled to a reasonable fee
for its services as a receiver. All such fees and other expenses of the receivership estate shall be added to the Minimum Rent
due to Landlord under this Lease. Tenant hereby irrevocably stipulates to the appointment of a receiver under such circumstances
and for such purposes and agrees not to contest such appointment. Tenant agrees to waive all rights to negotiate terms of an OTA
and further agrees to execute all transfer documentation including an OTA.

 

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24.         HUD
Loan Requirements. If Landlord obtains or seeks to obtain a HUD Loan on the Facility, then the following sections shall apply:

 

24.1        Cooperation
in Obtaining HUD Loan. In connection with Landlord’s efforts to obtain a HUD Loan, Tenant agrees to provide to HUD and/or
Lender the application documents required by HUD (“Application Documents”) and to execute and/or certify all
Application Documents, as required by HUD or Lender.

 

24.2        Amendment
of Lease. This Lease may be modified only by a written instrument signed by Landlord and Tenant and approved by Landlord's
Lender and by the HUD Lender or HUD, as applicable.

 

24.3        Compliance
with HUD Program Requirements and HUD Loan Documents.

 

(a)          Tenant
agrees to comply with all applicable HUD Program Requirements and the HUD Loan Documents. Tenant further agrees that this Lease
will be part of the collateral pledged by Landlord to Lender and HUD. Tenant agrees that it will not take any action which would
violate any applicable HUD Program Requirements or any of the HUD Loan Documents.

 

(b)          In
the event of any conflict between the terms and provisions of this Lease and any applicable HUD Program Requirements or the HUD
Loan Documents, the HUD Program Requirements and HUD Loan Documents shall control in all respects. Landlord and Tenant agree that
no provision of this Lease shall modify any obligation of Landlord or Tenant under the HUD Loan Documents. Landlord and Tenant
acknowledge that HUD’s acceptance of this Lease in connection with the closing of the HUD Loan shall in no way constitute
HUD’s consent to arrangements which are inconsistent with HUD Program Requirements. This Lease is subject to all HUD Program
Requirements.

 

24.4        Subordination.

 

(a)          This
Lease is and shall be subject and subordinate to the Mortgage and other HUD Loan Documents; to all renewals, modifications, consolidations,
replacements and extensions thereof; to all substitutions thereof; and to all future mortgages upon the Premises and/or other security
interests in or to the Premises and any other items which are herein leased to Tenant or which, pursuant to the terms hereof, become
a part of the Premises or are otherwise deemed to become the property of Landlord or to remain upon the Premises at the end of
the term; and to each advance made or hereafter to be made under any of the foregoing. This Section shall be self-operative and
no further instrument of subordination shall be required. Without limiting the foregoing, Tenant agrees to execute and deliver
promptly any and all certificates, agreements and other instruments that Landlord, Lender or HUD may reasonably request in order
to confirm such subordination. Unless Lender shall have agreed otherwise, if Lender or another person or entity shall succeed to
the interest of Landlord by reason of foreclosure or other proceedings brought by Lender in lieu of or pursuant to a foreclosure,
or by any other manner (Lender or such other person or entity being called a “Successor”), then this Lease shall terminate,
or, at the option of the Successor, this Lease shall nevertheless continue in full force and effect, in which case Tenant shall
and does hereby agree to attorn to the Successor and to recognize the Successor as its landlord under the terms of this Lease.

 

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(b)          Agreements
for provision of services to the Premises or the granting of easements, rights of way or other allowances of use or placement of
CATV, utilities or other items are, and shall always be, subordinate to (i) the right of Landlord, and (ii) the Mortgage and other
HUD Loan Documents and all other mortgages and security interests now or hereafter encumbering the Premises and/or the property
of which it forms a part. Tenant must obtain HUD written approval prior to entering into any telecommunications services agreement
and/or granting of any easements.

 

24.5        Ownership
of FF&E. Tenant agrees that (a) except leases of FF&E entered into in the ordinary course of business with third-party
lessees and property of tenants and residents of the Premises, all FF&E located on the Premises at the date of the Lease is
and shall be the property of Landlord, and (b) any FF&E acquired by Landlord or Tenant during the term of this Lease remaining
on the Premises at the termination of the Lease shall be and/or become the property of Landlord. Tenant agrees, during the term
of the Lease, not to remove any FF&E from the Premises, except to replace such FF&E with other similar items of equal or
greater quality and value.

 

24.6        Payments.
Landlord and Tenant each acknowledges and agrees that the rent and other amounts payable by Tenant under this Lease (including
rent, additional rent and all other sums payable under this Lease) are sufficient to properly maintain the Premises, and to enable
Landlord to meet its debt service obligations and related expenses in connection with the Mortgage Loan and the Premises. To the
extent applicable, unless Lender and Landlord agree otherwise, and without limiting the generality of the foregoing, Tenant agrees
to pay, as additional rent, when due all premiums for (i) FHA mortgage insurance, (ii) liability insurance and full coverage property
insurance on the Premises, and (iii) all other insurance coverage required under the HUD Loan Documents and/or applicable HUD Program
Requirements. Unless Lender and Landlord agree otherwise, Tenant shall be responsible for funding all escrows for taxes, reserves
for replacements, mortgage insurance premiums and/or other insurance premiums as may be required by Lender and/or HUD.

 

24.7        Regulatory
Agreement of Tenant. At the time of the closing of the HUD Loan, Tenant agrees to execute the Regulatory Agreement of Tenant,
and other applicable documents evidencing Lender’s security interest in the collateral of Tenant. Tenant agrees to comply
with its obligations under the Regulatory Agreement of Tenant, and agrees that a default by Tenant under the Regulatory Agreement
of Tenant shall be deemed to be a default under this Lease.

 

24.8        Management
Agreement Requirements. Tenant agrees not to enter into any Management Agreement involving the Facility unless such Management
Agreement complies with applicable HUD Program Requirements and contains provisions that, in the event of default under the Regulatory
Agreement of Landlord or the Regulatory Agreement of Tenant, the Management Agreement shall be subject to termination upon not
more than thirty (30) days notice without penalty upon written request of HUD. Upon such HUD termination request, Tenant shall
immediately arrange to terminate the contract within a period of not more than thirty (30) days and shall make arrangements satisfactory
to HUD for continuing proper management of the Premises.

 

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24.9        Licenses;
Bed Authority. Tenant shall ensure that the Facility meets all state licensure requirements and standards at all times. Landlord
and Tenant agree not to undertake or acquiesce to any modification to any license with respect to the Premises or to any “bed
authority” related thereto without the prior written approval of HUD.

 

24.10      Governmental
Receivables. Tenant shall be responsible for obtaining and maintaining all necessary provider agreements with Medicaid, Medicare
and other governmental third party payors. Tenant agrees to furnish HUD and Lender with copies of all such provider agreements
and any and all amendments thereto promptly after execution thereof.

 

24.11      Financial
Statements and Reporting Requirements. Tenant agrees to furnish HUD and Lender copies of its annual financial statements with
respect to the Premises, prepared in compliance with the requirements of the Regulatory Agreement of Tenant, within ninety (90)
days after the close of Tenant’s fiscal year or such longer period as may be permitted by HUD. Tenant agrees to submit to
HUD and Lender copies of all other financial reports as specified in the Regulatory Agreement of Tenant.

 

24.12      Inspections.
Tenant agrees that upon reasonable request, Lender, HUD and their respective designees and representatives may at all reasonable
times, upon reasonable notice, subject to the rights of patients, residents and tenants, examine and inspect the Premises. Tenant
shall, on the request of Lender and/or HUD, promptly make available for inspection by Lender and/or HUD, and their designees and
representatives, copies of all of Tenant’s correspondence, books, records and other documentation relating to the Premises,
excepting communications between Tenant and its attorneys. Tenant agrees to maintain accounting records for the Facility in accordance
with its customary practice and the Regulatory Agreement of Tenant, separate from any general accounting records which Tenant may
maintain in connection with the Tenant’s other activities. Tenant agrees that Lender and/or HUD, and their designees and
representatives, shall at any reasonable time, have access to and the right to examine all accounting records of Tenant which relate
directly or indirectly to the Premises. The obligations of Tenant under this Section shall be limited to the extent necessary in
order for Tenant to comply with applicable laws regarding the confidentiality of resident/patient medical records and information.

 

24.13      Insurance;
Casualty; Condemnation. Tenant agrees to procure and maintain, or cause to be procured and maintained, the insurance coverage
required pursuant to the HUD Loan Documents and/or applicable HUD Requirements, including HUD Notices H 04-01 and H 04-15. Insurance
proceeds and the proceeds of any condemnation award or other compensation paid by reason of a conveyance in lieu of the exercise
of such power, with respect to the Premises, or any portion thereof, shall be applied in accordance with the terms of the HUD Loan
Documents and applicable HUD Program Requirements. The decision to repair, reconstruct, restore or replace the Premises following
a casualty or condemnation shall be subject to the terms of the HUD Loan Documents and applicable HUD Requirements. Notwithstanding
the foregoing, under no circumstances shall Tenant be required to repair, reconstruct, restore or replace the Premises if the insurance
proceeds and/or the proceeds of any condemnation award are not fully made available to Tenant.

 

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24.14      Assignment
of Operating Lease and Subletting of the Premises. This Lease shall not be assigned or subleased by Tenant, in whole or in
part (including any transfer of title or right to possession and control of the Premises, or of any right to collect fees or rents),
without the prior written approval of HUD. The prior written approval of HUD shall be required for (a) any change in or transfer
of the management, operation, or control of the project or (b) any change in the ownership of Tenant that requires HUD approval
under HUD’s previous participation approval requirements. Landlord and Tenant acknowledge that any proposed assignee shall
be required to execute a Tenant Regulatory Agreement, each in form and substance satisfactory to HUD, as a prerequisite to any
such approval. Any assignment or subletting of the Premises made without such prior approval shall be null and void. This restriction
on subletting does not apply to Tenant’s leasing of individual units or beds to patient / residents.

 

24.15      Accounts
Receivable (AR) Financing. Tenant shall not pledge its accounts receivable or receipts to an accounts receivable lender for
any loan without the prior written approval of Lender and HUD. In the event that Lender and HUD grant such approval; (i) the holder(s)
of such lien shall enter into an Intercreditor and a Rider to Intercreditor Agreement with the AR Lender and Lender on such terms
and conditions as may be required by HUD; and (ii) Tenant shall agree to comply with the requirements imposed by Lender and HUD
in connection therewith. Until such approved loan is paid in full, the written approval of HUD is required for any proposed modifications,
extensions, renewals or amendments to a material term of the AR Loan or the security agreement, prior to the effective date of
such amendments.

 

24.16      Termination
of Lease. The Lease shall not be terminated prior to its expiration date without the prior written approval of HUD. If HUD
becomes Mortgagee, Mortgagee in Possession, or Successor, HUD can terminate the Lease (a) for any violation of the Lease that is
not cured within any applicable notice and cure period given in the Lease, (b) for any violation of the Regulatory Agreement of
Tenant or other HUD Program Requirements or Health Care Requirements that is not cured within thirty (30) days after receipt by
Tenant of written notice of such violation or (c) if HUD, as a result of the occurrence of either of the events described in the
foregoing items (a) or (b), is required to advance funds for the operation of the Facility located on the Premises.

 

24.17      Master
Lease. Projects proposed for FHA financing under the Section 232 program that are affiliated by common ownership among Mortgagors
and/or Tenant/Operator entities must receive written approval from HUD, and may be required to use a Master Lease between the Mortgagor/Landlord
and the Master Tenant/Subtenant/Operator. The Master Lease and the HUD Master Lease Subordination Agreement or Master Lease Subordination
Non Disturbance Agreement shall be approved by HUD and the Mortgagee. The Master Lease shall only contain Mortgagors and Operators
of FHA-insured projects.

 

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24.18      Miscellaneous.
Notwithstanding any other terms contained in the Lease, in the event of an assignment of the Lease to HUD or FHA, neither HUD nor
FHA shall have any indemnification obligations under the Lease. In addition, any payment obligations of HUD or FHA pursuant to
the Lease shall be limited to actual amounts received by HUD or FHA, and otherwise not prohibited by applicable law or regulation,
including without limitation, the Anti Deficiency Act, 31 U.S.C. § 1341 et seq.

 

25.         Rent
Payments. If Landlord’s interest in this Lease shall pass to another, or if the Base Rent or Additional Rent hereunder
shall be assigned, or if a party other than Landlord shall become entitled to collect the Base Rent or Additional Rent due hereunder,
then notice thereof shall be given to Tenant by Landlord in writing, or, if Landlord is an individual and shall have died or become
incapacitated, by Landlord’s legal representative, accompanied by due proof of the appointment of such legal representative;
provided, that if Base Rent is then being paid to Lender, then notwithstanding such notice from Landlord, Tenant shall continue
to pay Base Rent to Lender until it receives contrary notice from Lender. Until such notice and proof shall be received by Tenant,
Tenant may continue to pay the rent due hereunder, and Landlord shall indemnify and hold Tenant harmless from any challenges to
such payments, to the one to whom, and in the manner in which, the last preceding installment of rent hereunder was paid, and each
such payment shall fully discharge Tenant with respect to such payment.

 

Tenant shall not be
obligated to recognize any agent for the collection of rent or otherwise authorized to act with respect to the Premises until written
notice of the appointment and the extent of the authority of such agent shall be given to Tenant by the one appointing such agent.

 

26.         Holdover.
If Tenant shall hold over after the expiration date of the Term, or if Tenant shall hold over after the date specified in the Tenant’s
Termination Notice given by Tenant under Section 15.2, then, in either such event, Tenant shall be a month-to-month Tenant
on the same terms as herein provided, except that the monthly Base Rent will be 1.5 times the monthly Base Rent payable by Tenant
during the final full calendar month of the Term or, if applicable, during any extension of the Term, immediately preceding such
holdover period.

 

27.         Notices.
Whenever, pursuant to this Lease, notice or demand shall or may be given to either of the parties (including Lender) by the other,
and whenever either of the parties shall desire to give to the other any notice or demand with respect to this Lease or the Premises,
each such notice or demand shall be in writing, and any Laws to the contrary notwithstanding, shall not be effective for any purpose
unless the same shall be given or served as follows: by mailing the same to the other party by registered or certified mail, return
receipt requested, or by delivery by nationally recognized overnight courier service provided a receipt is required, at its Notice
Address set forth in Part I hereof, or at such other address as either party (including, without limitation, Lender) may from time
to time designate by notice given to the other. The date of receipt of the notice or demand shall be deemed the date of the service
thereof (unless delivery of the notice or demand is refused or rejected, in which case the date of such refusal or rejection shall
be deemed the date of service thereof).

 

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28.         Indemnity.
TENANT SHALL DEFEND LANDLORD AND ANY OF LANDLORD’S OWNERS, PARTNERS, TRUSTEES, BENEFICIAL OWNERS, MEMBERS, MANAGERS, EMPLOYEES,
AGENTS, OFFICERS, DIRECTORS OR SHAREHOLDERS, TOGETHER WITH THE LENDER, AND ANY OWNER, PARTNER, MEMBER, MANAGER, TRUSTEE, BENEFICIAL
OWNER, OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE OR AGENT OF THE LENDER OR ANY HOLDER OF A PASS-THROUGH OR SIMILAR CERTIFICATE ISSUED
BY THE LENDER (HEREIN, COLLECTIVELY, “INDEMNIFIED PARTIES”) WITH RESPECT TO, AND SHALL PAY, PROTECT, INDEMNIFY AND
HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST, ANY AND ALL LIABILITIES, LOSSES, DAMAGES, PENALTIES, COSTS, EXPENSES (INCLUDING,
WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES AND EXPENSES), CAUSES OF ACTION, SUITS, CLAIMS, DEMANDS OR JUDGMENTS OF ANY
NATURE WHATSOEVER, HOWEVER CAUSED, (A) TO WHICH ANY INDEMNIFIED PARTY IS SUBJECT BECAUSE OF LANDLORD’S OR LENDER’S
ESTATE IN THE PREMISES OR (B) ARISING FROM (I) INJURY TO OR DEATH OF ANY PERSON OR PERSONS OR DAMAGE TO OR LOSS OF PROPERTY,
REAL OR PERSONAL, IN ANY MANNER ARISING THEREFROM, OCCURRING ON THE PREMISES OR CONNECTED WITH THE USE, NON-USE, CONDITION, OCCUPANCY,
MAINTENANCE, REPAIR OR REBUILDING OF ANY THEREOF, WHETHER OR NOT SUCH INDEMNIFIED PARTY HAS OR SHOULD HAVE KNOWLEDGE OR NOTICE
OF THE DEFECT OR CONDITIONS, IF ANY, CAUSING OR CONTRIBUTING TO SAID INJURY, DEATH, LOSS, DAMAGE OR OTHER CLAIM, (II) TENANT’S
VIOLATION OF THIS LEASE, (III) ANY ACT OR OMISSION OF TENANT OR ITS AGENTS, CONTRACTORS, LICENSEES, SUBTENANTS OR INVITEES,
AND (IV) ANY CONTEST REFERRED TO IN SECTION 30.2; PROVIDED, THAT TENANT SHALL NOT BE REQUIRED TO INDEMNIFY, DEFEND
OR HOLD HARMLESS ANY INDEMNIFIED PARTY FOR ANY SUCH MATTERS ARISING DUE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED
PARTY. TENANT COVENANTS UPON NOTICE FROM SUCH INDEMNIFIED PARTY TO DEFEND SUCH INDEMNIFIED PARTY IN SUCH ACTION, WITH THE EXPENSES
OF SUCH DEFENSE PAID BY TENANT; PROVIDED, THAT IN CONNECTION WITH TENANT’S OBLIGATIONS TO PROVIDE A DEFENSE OF THE
INDEMNIFIED PARTIES HEREUNDER, TENANT SHALL BE ENTITLED TO SELECT COUNSEL REASONABLY SATISFACTORY TO LANDLORD TO DEFEND SUCH INDEMNIFIED
PARTIES SO LONG AS DEFENSE OF MULTIPLE PARTIES IS REASONABLE UNDER THE CIRCUMSTANCES AND SO LONG AS SUCH COMMON DEFENSE DOES NOT
LIMIT ANY REASONABLE CLAIMS OR DEFENSES WHICH COULD BE RAISED BY ANY SUCH INDEMNIFIED PARTIES. THE OBLIGATIONS OF TENANT UNDER
THIS SECTION 28 SHALL SURVIVE ANY TERMINATION OF THIS LEASE. ANY AMOUNTS PAYABLE TO ANY INDEMNIFIED PARTY HEREUNDER BY REASON
OF THE APPLICATION OF THIS SECTION 28 SHALL BECOME IMMEDIATELY DUE AND PAYABLE; AND SUCH AMOUNTS SHALL BEAR INTEREST AT THE
LEASE DEFAULT RATE FROM THE DATE LOSS OR DAMAGE IS PAID BY SUCH INDEMNIFIED PARTY UNTIL PAID BY TENANT.

 

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LANDLORD AND TENANT
INTEND THAT, UNLESS OTHERWISE EXPRESSLY PROVIDED IN THIS LEASE, THE INDEMNITIES AND RELEASES PROVIDED IN THIS LEASE BY TENANT FOR
THE BENEFIT OF LANDLORD, LENDER OR ANY OTHER INDEMNIFIED PARTIES (INCLUDING WITHOUT LIMITATION, THE INDEMNITIES SET FORTH IN THIS
SECTION 28 AND IN SECTION 38.5 OF THIS LEASE), SHALL APPLY EVEN IF AND WHEN THE SUBJECT MATTER OF THE INDEMNITIES AND RELEASES
ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF LANDLORD, LENDER OR ANY OTHER INDEMNIFIED PARTIES, OR ARISE AS A RESULT OF STRICT
LIABILITY OF LANDLORD, LENDER OR ANY OTHER INDEMNIFIED PARTIES, BUT IN NO EVENT SHALL TENANT BE OBLIGATED TO INDEMNIFY LANDLORD,
LENDER OR ANY OTHER INDEMNIFIED PARTIES WITH RESPECT TO MATTERS ARISING FROM THEIR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

29.         Tenant
to Comply with Matters of Record. Tenant agrees to perform all obligations of Landlord and pay all costs, expenses and other
amounts (including, without limitation, any liquidated damages) which Landlord or Tenant may be required to pay in accordance with,
and to comply and cause the Premises to comply in all respects with all of the terms and conditions o£ any reciprocal easement
agreement or any other agreement or document of record now affecting the Premises (including, without limitation, the Permitted
Encumbrances) or hereafter executed or filed with Tenant’s written consent (each, herein referred to as a “Matter
of Record”, and collectively as the “Matters of Record”) during the Term. TENANT SHALL INDEMNIFY,
DEFEND AND HOLD HARMLESS LANDLORD AND LENDER AND ALL OTHER INDEMNIFIED PARTIES FROM ANY CLAIM, LOSS OR DAMAGE SUFFERED BY LANDLORD
OR LENDER OR SUCH INDEMNIFIED PARTIES BY REASON OF TENANT’S FAILURE TO PERFORM ANY OBLIGATIONS OR PAY ANY COSTS, EXPENSES
OR OTHER AMOUNTS (INCLUDING WITHOUT LIMITATION, LIQUIDATED DAMAGES) AS REQUIRED UNDER ANY MATTERS OF RECORD OR COMPLY AND CAUSE
THE PREMISES TO COMPLY WITH THE TERMS AND CONDITIONS OF ANY MATTERS OF RECORD DURING THE TERM.

 

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30.         Taxes.

 

30.1        Subject
to the provisions hereof relating to contests and mortgage reserves, Tenant shall pay and discharge, before any interest or penalties
are due thereon, all of the following taxes, charges, assessments, ground rents, levies and other items (collectively, “tax”
or “taxes”), even if unforeseen or extraordinary, which are imposed or assessed on or subsequent to the Date of Rent
Commencement during the Term, regardless of whether payment thereof is due prior to, during or after the Term: all taxes of every
kind and nature (including, without limitation, real, ad valorem, personal property, and sales and use tax), on or with respect
to the Premises (including, without limitation, any taxes assessed against Landlord’s reversionary estate in the Premises
or against any real property other than the Premises which is included within the tax parcel which includes the Premises), the
Base Rent and Additional Rent (including, without limitation, ad valorem taxes) payable hereunder, this Lease or the leasehold
estate created hereby; all charges and/or assessments for any easement or agreement maintained for the benefit of the Premises;
and all general and special assessments, levies, water and sewer assessments and other utility charges, use charges, impact fees
and rents and all other public charges and/or taxes whether of a like or different nature. Landlord shall promptly deliver to Tenant
any bill or invoice Landlord receives with respect to any tax; provided, that the Landlord’s failure to deliver any
such bill or invoice shall not limit Tenant’s obligation to pay such tax. Landlord agrees to cooperate with Tenant to enable
Tenant to receive tax bills directly from the respective taxing authorities. Nothing herein shall obligate Tenant to pay, and the
term “taxes” shall exclude (unless the taxes referred to in clauses (i) and (ii) below are in lieu of or a substitute
for any other tax or assessment upon or with respect to any of the Premises which, if such other tax or assessment were in effect
on the Date of Rent Commencement, would be payable by Tenant hereunder or by Law), federal, state or local (i) franchise,
capital stock or similar taxes, if any, of Landlord, (ii) income, excess profits or other taxes, if any, of Landlord, determined
on the basis of or measured by Landlord’s net income, (iii) any estate, inheritance, succession, gift, capital levy
or similar taxes of Landlord, (iv) taxes imposed upon Landlord under Section 59A of the Internal Revenue Code of 1986,
as amended, or any similar state, local, foreign or successor provision, (v) any amounts paid by Landlord pursuant to the
Federal Insurance Contribution Act (commonly referred to as FICA), the Federal Unemployment Tax Act (commonly referred to as FUTA),
or any analogous state unemployment tax act, or any other payroll related taxes, including, but not limited to, any required withholdings
relating to wages, (vi) except as otherwise provided in Section 15, any taxes in connection with the transfer or other
disposition of any interest, other than Tenant’s (or any person claiming under Tenant), in the Premises or this Lease, to
any person or entity, including but not limited to, any transfer, capital gains, sales, gross receipts, value added, income, stamp,
real property gains or withholding tax, and (vii) any interest, penalties, professional fees or other charges relating to
any item listed in clauses (i) through (vi) above; provided, further, that Tenant is not responsible for making any
additional payments in excess of amounts which would have otherwise been due, as tax or otherwise, but for a withholding requirement
which relates to the particular payment and such withholding is in respect to or in lieu of a tax which Tenant is not obligated
to pay; and provided, further, that if at any time during the Term of this Lease, the method of taxation shall be
such that there shall be assessed, levied, charged or imposed on Landlord a tax upon the value of the Premises or any present or
future improvement or improvements on the Premises, including without limitation, any tax which uses rents received from Tenant
as a means to derive value of the property subject to such tax, then all such levies and taxes or the part thereof so measured
or based shall be payable by Tenant, but only to the extent that such levies or taxes would be payable if the Premises were the
only property of Landlord, and Tenant shall pay and discharge the same as herein provided. In the event that any assessment against
the Premises is payable in installments, Tenant may pay such assessment in installments; and in such event, Tenant shall be liable
only for those installments which become due and payable prior to or during the Term, or which are appropriately allocated to the
Term even if due and payable after the Term. Tenant shall deliver, or cause to be delivered, to Landlord and Lender, promptly upon
Landlord’s or Lender’s written request, evidence satisfactory to Landlord and Lender that the taxes required to be
paid pursuant to this Section 30 have been so paid and are not then delinquent.

 

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30.2        After
prior written notice to Landlord and Lender, at Tenant’s sole cost, Tenant may contest (including seeking an abatement or
reduction of) in good faith any taxes agreed to be paid hereunder; provided, that (i) Tenant first shall satisfy any
Legal Requirements, including, if required, that the taxes be paid in full before being contested or, if not required to be paid
in full, such contest shall suspend the collection of such taxes, (ii) no Event of Default has occurred and is continuing
and no Event of Default under this Lease shall occur as a result of such contest, and (iii) failing to pay such taxes will
not subject Landlord or Lender to criminal or civil penalties or fines or to prosecution for a crime, or result in the sale, forfeiture,
termination, cancellation or loss of any portion of the Premises or any interest therein, any Base Rent or any Additional Rent
Tenant agrees that each such contest shall be promptly and diligently prosecuted to a final conclusion, except that Tenant shall
have the right to attempt to settle or compromise such contest through negotiations. Tenant shall pay and shall indemnify, defend
and hold Landlord and Lender and all other indemnified Parties harmless against any and all losses, judgments, decrees and costs
(including, without limitation, all reasonable attorneys’ fees and expenses) in connection with any such contest and shall
promptly, after the final determination of such contest, fully pay and discharge the amounts which shall be levied, assessed, charged
or imposed or be determined to be payable therein or in connection therewith, together with all penalties, fines, interest, costs
and expenses thereof or in connection therewith, and perform all acts the performance of which shall be ordered or decreed as a
result thereof. At Tenant’s sole cost, Landlord shall assist Tenant as reasonably necessary with respect to any such contest,
including joining in and signing applications or pleadings. Any rebate applicable to any portion of the Term shall belong to Tenant
If at the time of any such contest an Event of Default has occurred and is continuing under this Lease, then Tenant shall post
a bond or other security with and acceptable to Landlord and Lender in their discretion in an amount equal to one hundred twenty-five
percent (125%) of the amount being contested.

 

31.         Insurance.

 

31.1         Tenant
shall maintain All-Risk insurance for the Facility for one hundred percent (100%) of its replacement value. Said All-Risk policy
shall include flood coverage if the Premises is located in a Flood Zone A, and shall not exclude earthquake coverage, if applicable.

 

31.2         Tenant
also shall maintain General Liability coverage, including Broad Form Endorsement, on an occurrence basis; in combined policy limits
of not less than Ten Million and No/100 Dollars ($10,000,000.00) per occurrence for bodily injury and for property damage with
respect to the Premises.

 

31.3         Professional
Liability insurance of not less than One Million /Three Million and No/100 Dollars ($1,000,000/$3,000,000).

 

31.4         If,
during the Term, Tenant is covered by general liability, professional liability, residential healthcare malpractice or other liability
insurance on a "claims made" basis, ninety (90) days before the termination of this Lease, Tenant shall procure and maintain,
at Tenant's sole cost and expense, an extended reporting endorsement or "tail" insurance coverage, with such coverage
limits and such deductible amounts as shall be reasonably acceptable to Landlord for general liability, professional liability,
residential healthcare professional malpractice or other liability claims reported after the termination of this Lease or expiration
of the claims made policy, but concerning services provided during the Term or the claims made policy. Tenant shall provide Landlord
with a certificate evidencing such coverage no later than ninety (90) days before the termination of this Lease and, if Tenant
fails to procure and maintain tail insurance on termination of this Lease, Landlord shall have the right to apply any portion of
the Lease Deposit to procure and maintain the insurance required under this Section to the extent such coverage is available at
commercially reasonable rates.

 

31.5         At
all times when any construction is in progress, Tenant shall maintain or cause to be maintained by its contractors and subcontractors
with such companies reasonably approved by Landlord, builder’s risk insurance, completed value form, covering all physical
loss, in an amount reasonably satisfactory to Landlord

 

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31.6         Any
insurance maintained by Tenant pursuant to this Section 31 shall name Landlord and Lender as additional insured parties and/or
as loss payees, as appropriate, as their respective interests may appear.

 

31.7         All
proceeds received from such All-Risk and/or builder’s risk insurance shall be used in the first instance in accordance with
Tenant’s obligations under Section 14 hereof and any surplus shall be retained by Tenant.

 

31.8         Tenant
may carry such All-Risk and/or General Liability insurance through blanket insurance covering the Premises and other locations
of Tenant and/or of Tenant’s affiliates, provided that such blanket insurance policy specifically designates the Premises
and shall not be reduced by claims as to other property covered by such blanket policy; and Tenant may maintain the required limits
in the form of excess and/or umbrella policies, provided that the other requirements set forth herein have been satisfied.

 

31.9         All
insurance coverage required to be carried hereunder shall be carried with insurance companies licensed to do business in the State
and which have a claims paying ability rating of “A” or better by S&P and a rating of “A2” or better
by Moody’s, and shall require the insured’s insurance carrier to notify the Landlord and Lender at least thirty (30) days
prior to any cancellation or material modification of such insurance. Notwithstanding the foregoing, Tenant may carry insurance
with companies which are affiliated with Tenant (and do not meet the requirements herein) provided such insurance provided by such
companies shall not exceed the deductible or self-insurance limitations herein. The insurance policies shall be in amounts sufficient
at all times to satisfy any coinsurance requirements thereof. If said insurance or part thereof shall expire, be withdrawn, become
void by breach of any condition thereof by Tenant or become void or unsafe by reason of the failure or impairment of the capital
of any insurer, Tenant shall immediately obtain new or additional insurance reasonably satisfactory to Landlord and Lender.

 

31.10       Each
insurance policy referred to above shall, to the extent applicable, contain standard non-contributory mortgagee clauses in favor
of Lender and shall provide that it may not be canceled except after thirty (30) days prior notice to Landlord and Lender
and that any loss otherwise payable thereunder shall be payable notwithstanding (i) any act or omission of Landlord or Tenant
which might, absent such provision, result in a forfeiture of all or a part of such insurance payment, (ii) the occupation
or use of any of the Premises for purposes more hazardous than permitted by the provisions of such policy, (iii) any foreclosure
or other action or proceeding taken by any Lender pursuant to any provision of the Mortgage upon the happening of an event of default
therein, or (iv) any change in title or ownership of any of the Premises. Any insurance policy may be written with a deductible
of not more than Twenty Five Thousand and No/100 Dollars ($25,000.00), provided that Tenant indemnifies, defends and holds Landlord
harmless for any Restoration and Restoration Cost to the extent that the net proceeds of insurance are insufficient to pay and
perform the Restoration and the Restoration Costs.

 

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31.11       Tenant
shall pay all premiums for the insurance required by this Section 31 as they become due, and shall renew or replace each policy,
and shall deliver to Landlord and Lender a certificate or other evidence of the then-existing policy and each renewal or replacement
policy, not less than fifteen (15) days prior to the expiration of such policy (together with a certificate of a responsible
officer of Tenant that the insurance maintained by Tenant with respect to the Premises is in compliance with the requirements of
this Section 31 of this Lease). In the event of Tenant’s failure to comply with any of the foregoing requirements, Landlord
shall be entitled to procure such insurance. Any sums so expended by Landlord, together with interest thereon from the date paid
at the Lease Default Rate, shall be Additional Rent and shall be repaid by Tenant to Landlord, if accompanied by an invoice or
other supporting documentation, immediately upon delivery of written demand therefor by Landlord.

 

32.         Landlord
Exculpation. Anything contained herein to the contrary notwithstanding, any claim based upon liability of Landlord under this
Lease shall be enforced only against the Landlord’s interest in the Premises and shall not be enforced against the Landlord
individually or personally other than with respect to fraud or the misappropriation of insurance or Condemnation proceeds. In no
event shall any partner, shareholder, trustee, manager, member, beneficial owner, officer, director or other owner or agent of
Landlord have any liability under this Lease.

 

33.         Landlord’s
Title. The Premises are demised and let subject to the Permitted Encumbrances without representation or warranty by Landlord.
The recital of the Permitted Encumbrances herein shall not be construed as a revival of any Permitted Encumbrance which has expired.

 

34.         Quiet
Enjoyment. So long as the Lease is in full force and effect, Landlord warrants and agrees that Tenant, on paying the Base Rent,
Additional Rent and other charges due hereunder and performing all of Tenant’s other obligations pursuant to this Lease,
shall and may peaceably and quietly have, hold, and enjoy the Premises for the full Term, free from molestation, eviction, or disturbance
by Landlord or by any other person(s) lawfully claiming by, through or under Landlord, subject, however, to the Permitted Encumbrances.

 

35.         Broker.
Landlord and Tenant each represent and warrant that it has had no dealings or conversations with any real estate broker in connection
with the negotiation and execution of this Lease. LANDLORD AND TENANT EACH AGREE TO DEFEND, INDEMNIFY AND HOLD HARMLESS THE
OTHER AGAINST ALL LIABILITIES ARISING FROM ANY CLAIM OF ANY REAL ESTATE BROKERS, INCLUDING COST OF COUNSEL FEES, RESULTING FROM
THEIR RESPECTIVE ACTS. IN THE EVENT OF ANY BREACH OF LANDLORD’S REPRESENTATIONS UNDER THIS SECTION 35 OR ANY CLAIM BY
TENANT AGAINST LANDLORD FOR ANY INDEMNITY UNDER THIS SECTION 35, TENANT SHALL HAVE NO RIGHT TO ABATE OR DEFER ANY PAYMENT
OF ANY BASE RENT, ADDITIONAL RENT AND/OR OTHER AMOUNTS DUE UNDER THIS LEASE, OR TO EXERCISE ANY RIGHTS OF OFFSET WITH RESPECT THERETO,
AND TENANT HEREBY EXPRESSLY WAIVES ANY SUCH RIGHTS THAT MAY EXIST AT LAW, IN EQUITY OR OTHERWISE.

 

    	38

    	 

    

 

36.         Transfer
of Title. In the event of any transfer(s) of the title to the Premises, Landlord (and in the case of any subsequent transfer,
the then-grantor) automatically shall be relieved from and after the date of such transfer, of all liability with respect to the
performance of any obligations on the part of said Landlord contained in this Lease thereafter to be performed, including, without
limitation, the release of Landlord’s outstanding obligations, if any, owed in connection with the Loan (provided that there
is an assumption of Landlord’s obligations under this Lease and the Loan and subject to any conditions for such transfer
as are contained in the Loan documents); provided that any amount then due and payable to Tenant by Landlord (or the then-grantor),
and any other obligation then to be performed by Landlord (or the then-grantor) under this Lease, either shall be paid or performed
by Landlord (or the then-grantor) or such payment or performance assumed by the transferee; it being intended hereby that the covenants,
conditions and agreements contained in this Lease on the part of Landlord shall, subject to the foregoing, be binding on Landlord,
its successors and assigns, only during and with respect to their respective successive period of ownership. Landlord may freely
transfer the Premises and this Lease without the consent of Tenant. Until Landlord gives Tenant notice in accordance with the terms
of this Lease, or Tenant receives notice, of a transfer of the Premises by Landlord, Tenant may deal with Landlord as if it continued
to be the owner of the Premises. If a controlling ownership interest in Landlord is transferred and, in connection therewith, the
address for notices to Landlord is changed, until Landlord gives, or Tenant receives, notice of such transfer and new address Tenant
may correspond with the current owner of a controlling interest in Landlord at the prior address for notices to Landlord.

 

37.         Management
Agreements. Tenant shall not terminate the Approved Management Agreement or enter into any Management Agreement without the
prior written reasonable approval of Landlord or Landlord's Lender. Any Manager shall be required to enter into an assignment and
subordination of management fees or operating agreement in form and substance reasonably satisfactory to Landlord's Lender. Such
restrictions and approval rights are solely for the purposes of assuring that the Healthcare Business is managed and operated in
a first class manner consistent with applicable healthcare laws and the preservation and protection of the Premises as security
for the Loan and shall not place responsibility for the control, care, management or repair of the Premises and/or the Healthcare
Business upon Landlord's Lender, or make Landlord's Lender responsible or liable for negligence in the management, operation, upkeep,
repair or control of the Premises and/or the Healthcare Business. Notwithstanding the foregoing, as of the Effective Date, Landlord's
Lender has approved the Manager pursuant to the terms of the Approved Management Agreement attached hereto as Exhibit C.

 

38.         Hazardous
Materials.

 

38.1         For
the purposes hereof, the term “Hazardous Materials” shall include, without limitation, any material, waste or
substance which is (i) included within the definitions of “hazardous substances,” “hazardous materials,”
“toxic substances,” or “hazardous wastes” in or pursuant to any Laws, or subject to regulation under any
Law; (ii) listed in the United States Department of Transportation Optional Hazardous Materials Table, 49 C.F.R. Section 172.101,
as enacted as of the date hereof or as hereafter amended, or in the United States Environmental Protection Agency List of Hazardous
Substances and Reportable Quantities, 40 C.F.R. Part 302, as enacted as of the date hereof or as hereafter amended; or (iii) explosive,
radioactive, asbestos, a polychlorinated biphenyl, petroleum or a petroleum product or waste oil. The term “Environmental
Laws” shall include all Laws pertaining to health, industrial hygiene, Hazardous Materials or the environment, including,
but not limited to each of the following, as enacted as of the date hereof or as hereafter amended: the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. §9601 et seq.; the Resource Conservation and Recovery Act
of 1976,42 U.S.C. §6901 et seq.; the Toxic Substance Control Act, 15 U.S.C. §2601 et seq.; the Water Pollution
Control Act (also known as the Clean Water Act), 33 U.S.C. §1251 et seq.; the Clean Air Act, 42 U.S.C. §7401 et
seq.; and the Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq.

 

    	39

    	 

    

 

38.2         Tenant
represents and warrants to Landlord that neither the Premises, nor any portion thereof, has been used by Tenant for the generation,
manufacture, storage, handling, transfer, treatment, recycling, transportation, processing, production, refinement or disposal
(each, a “Regulated Activity”) of any Hazardous Materials. As of the Date of Rent Commencement, Tenant covenants
it (i) will comply, and will cause the Premises to comply, with all Environmental Laws applicable to the Premises, (ii) will
not use, and shall prohibit the use of the Premises for Regulated Activities or for the storage, handling or disposal of Hazardous
Materials (other than in connection with the operation and maintenance of the Premises and in commercially reasonable quantities
as a consumer thereof, subject to compliance with applicable Laws), (iii) (A) will not install or permit the installation
on the Premises of any asbestos or asbestos-containing materials (except in compliance with all applicable Environmental Laws),
underground storage tanks or surface impoundments and shall not permit there to exist any petroleum contamination in violation
of applicable Environmental Laws originating on the Premises, and (B) with respect to any petroleum contamination on the Premises
which originates from a source off the Premises, Tenant shall notify all responsible third parties and appropriate government agencies
(collectively, ‘‘Third Parties”) and shall prosecute the cleanup of the Premises by such Third Parties,
including, without limitation, undertaking legal action, if necessary, to enforce the cleanup obligations of such Third Parties
and, to the extent not done so by such Third Parties and to the extent technically feasible and commercially practicable, Tenant
shall remediate such petroleum contamination, and (iv) shall cause any alterations of the Premises to be done in a way which
complies with applicable Laws relating to exposure of persons working on or visiting the Premises to Hazardous Materials and, in
connection with any such alterations, shall remove any Hazardous Materials present upon the Premises which are not in compliance
with applicable Environmental Laws or which present a danger to persons working on or visiting the Premises.

 

Landlord agrees that Tenant
may use household and commercial cleaners and chemicals to maintain the Premises, provided that such use is in compliance with
all Environmental Laws. Landlord and Tenant acknowledge that any or all of the cleaners and chemicals described in this paragraph
may constitute Hazardous Materials. However, Tenant may use, store and dispose of same as herein set forth, provided, that in doing
so Tenant complies with all Laws. For the purposes of Sections 38.3 and 38.4, the term “Hazardous Materials” shall
exclude the Hazardous Materials used as permitted in this paragraph.

 

    	40

    	 

    

 

38.3        If,
at any time during the Term, Hazardous Materials shall be found in, on or under the Premises, unless such Hazardous Materials have
been introduced by Landlord or Landlord’s agents or employees or were introduced to the Premises prior to the Substantial
Completion Date, then Tenant shall (at Tenant’s sole expense), or shall cause such responsible Third Parties to, promptly
commence and diligently prosecute to completion all investigation, site monitoring, containment, cleanup, removal, restoration
or other remedial work of any kind or nature (collectively, “Remedial Work”) to the extent required by Environmental
Laws, and in compliance with Environmental Laws, and at Tenant’s sole cost; provided, that except as otherwise expressly
provided in this subparagraph (c), Landlord shall not be required to accept any institutional control (such as a deed restriction)
that restricts the permitted use of the Premises or any real property as a condition to any remedial plan approved by any governmental
agency in connection with such Remedial Work. The Remedial Work required of Tenant under this Lease shall be limited to achieving
clean-up standards applicable to residential use of the Premises as provided herein (“Commercial Closure”),
if allowed under applicable Environmental Laws and if approved by the applicable governmental authority with jurisdiction over
the Premises, Hazardous Materials and Remedial Work; provided, that the Hazardous Materials left in place would not reasonably
be expected to cause or threaten to cause current or future migration of such Hazardous Materials from the environmental media
in which such Hazardous Materials are present to other environmental media or to other properties in excess of applicable regulatory
standards permitted under applicable Legal Requirements; and provided, further, that nothing contained in this Section 38.3
shall be deemed to limit the obligations of the Tenant under any other provision of this Section 38 including, without limitation,
the indemnification obligations of the Tenant under Section 38.5. In the event an institutional control (such as a deed restriction,
environmental land use restriction, or activity and use limitation) that restricts the permitted use of or activities on the Premises
(hereinafter a “Restriction”) is required in order to achieve Commercial Closure, prior to submitting any proposed
plan for Remedial Work to a governmental authority which proposes such a Restriction or performing or implementing such Remedial
Work or actually recording any Restriction in the relevant real property records, Tenant shall submit such Restriction to Landlord
for review and approval. Landlord shall not unreasonably withhold or delay its approval of any such Restrictions (i) so long
as the condition set forth in subpart (iii) of this sentence is satisfied, which require that the Premises not be used for a day
care facility or for agricultural purposes, (ii) so long as the condition set forth in subpart (iii) of this sentence is satisfied
and the Premises are adequately served by a municipal water supply, which prohibit the use of the ground water underlying the Premises,
or (iii) so long as such Restrictions would not reasonably be likely to result in a material decrease in the fair market value
of the Premises based upon the use of the Premises for the Healthcare Business, would not reasonably be likely to materially affect
the marketability of the Premises or the ability to obtain financing secured by the Premises based upon the use of the Premises
for the Healthcare Business, and would not reasonably be likely to create ongoing monitoring or reporting obligations with respect
to the Premises.

 

38.4        To
the extent that Tenant has knowledge thereof Tenant shall promptly provide notice to Landlord and Lender of any of the following
matters:

 

(a)          any
proceeding or investigation commenced or threatened by any governmental authority with respect to the presence of any Hazardous
Material affecting the Premises;

 

(b)          any
proceeding or investigation commenced or threatened by any governmental authority, against Tenant or Landlord, with respect to
the presence, suspected presence, release or threatened release of Hazardous Materials from any property owned by Landlord;

 

(c)          all
written notices of any pending or threatened investigation or claims made or any lawsuit or other legal action or proceeding brought
by any person against (A) Tenant or Landlord or the Premises, or (B) any other party occupying the Premises or any portion
thereof in any such case relating to any loss or injury allegedly resulting from any Hazardous Material or relating to any violation
or alleged violation of Environmental Laws;

 

    	41

    	 

    

 

(d)          the
discovery of any occurrence or condition on the Premises, of which Tenant becomes aware and which is not corrected within ten (10) days,
or written notice received by Tenant of an occurrence or condition on any real property adjoining or in the vicinity of the Premises,
which reasonably could be expected to lead to the Premises or any portion thereof being in violation of any Environmental Laws
or subject to any restriction on ownership, occupancy, transferability or use under any Environmental Laws or which might subject
Landlord or Lender to any Environmental Claim. “Environmental Claim” means any claim, action, investigation
or written notice by any person alleging potential liability (including, without limitation, potential liability for investigatory
costs, cleanup costs, governmental response costs, natural resource damages, property damages, personal injuries or penalties)
arising out o£ based on or resulting from (A) the presence, or release into the environment, of any Hazardous Materials
at or from the Premises, or (B) circumstances forming the basis of any violation, or alleged violation, of any Environmental
Law; and

 

(e)          the
commencement and completion of any Remedial Work.

 

38.5        TENANT
SHALL BE SOLELY RESPONSIBLE FOR AND SHALL DEFEND, REIMBURSE, INDEMNIFY AND HOLD EACH INDEMNIFIED PARTY HARMLESS FROM AND AGAINST
ALL DEMANDS, CLAIMS, ACTIONS, CAUSES OF ACTION, ASSESSMENTS, LOSSES, DAMAGES, LIABILITIES (INCLUDING WITHOUT LIMITATION, STRICT
LIABILITIES), INVESTIGATIONS, WRITTEN NOTICES, COSTS AND EXPENSES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, DIMINUTION IN PROPERTY
VALUE AND REASONABLE EXPENSES OF INVESTIGATION BY ENGINEERS, ENVIRONMENTAL CONSULTANTS AND SIMILAR TECHNICAL PERSONNEL AND REASONABLE
FEES AND DISBURSEMENTS OF COUNSEL), ARISING OUT OF, IN RESPECT OF OR IN CONNECTION WITH (I) TENANT’S BREACH OF ITS REPRESENTATIONS,
WARRANTIES, COVENANTS OR OBLIGATIONS IN THIS LEASE, (II) THE OCCURRENCE OF ANY REGULATED ACTIVITY AT, ON OR UNDER THE PREMISES
AT ANY TIME PRIOR TO THE EXPIRATION OF THE TERM, (III) ANY ENVIRONMENTAL CLAIM WITH RESPECT TO THE PREMISES AGAINST ANY INDEMNIFIED
PARTY OR ANY PERSON WHOSE LIABILITY FOR SUCH ENVIRONMENTAL CLAIM LANDLORD OR TENANT HAS OR MAY HAVE ASSUMED OR RETAINED EITHER
CONTRACTUALLY OR BY OPERATION OF LAW, (IV) THE RELEASE, THREATENED RELEASE OR PRESENCE OF ANY HAZARDOUS MATERIALS AT, ON,
UNDER OR FROM THE PREMISES, REGARDLESS OF HOW DISCOVERED BY TENANT, LANDLORD OR ANY THIRD-PARTY, (V) ANY REMEDIAL WORK REQUIRED
TO BE PERFORMED PURSUANT TO ANY ENVIRONMENTAL LAW OR THE TERMS HEREOF WITH RESPECT TO MATTERS ARISING OR OCCURRING PRIOR TO THE
EXPIRATION OF THE TERM OR SURRENDER OF THE PREMISES TO LANDLORD, WHICHEVER IS LAST TO OCCUR, OR (VI) ANY MATTERS ARISING UNDER
OR RELATING TO ANY ENVIRONMENTAL LAW AND RELATING TO THE TENANT OR THE PREMISES.

 

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38.6         Upon
Landlord’s request, at any time that Landlord has reasonable grounds to believe that Hazardous Materials (except to the extent
those substances are permitted to be used by Tenant under Section 38.2 in the ordinary course of its business and in compliance
with all Environmental Laws) are or have been released, stored or disposed of on or around the Premises during the Term or that
the Premises may be in violation of the Environmental Laws during the Term, Tenant shall provide, at Tenant’s sole cost and
expense, except as otherwise expressly set forth herein, an inspection or audit of the Premises prepared by a hydrogeologist or
environmental engineer or other appropriate consultant approved by Landlord and Lender indicating the presence or absence of the
reasonably suspected Hazardous Materials on the Premises or an inspection or audit of the Premises prepared by an engineering or
consulting firm approved by Landlord and Lender indicating the presence or absence of friable asbestos or substances containing
asbestos on the Premises. In the event that such inspection or audit determines that no such Hazardous Materials are or have been
released, stored or disposed of on or around the Premises during the Term and that the Premises is not in violation of the Environmental
Laws, the cost and expense of Tenant’s inspection or audit will be borne solely by Landlord. If Tenant fails to provide such
inspection or audit within thirty (30) days after such request, Landlord may order the same, and Tenant hereby grants to Landlord
and Lender and their respective employees, contractors and agents access to the Premises upon reasonable notice and a license to
undertake such inspection or audit. The cost of such inspection or audit, together with interest thereon at the Lease Default Rate
from the date Tenant is provided with written confirmation of costs incurred by Landlord until actually paid by Tenant, shall be
immediately paid by Tenant on demand.

 

38.7         Without
limiting the foregoing, where recommended by any “Phase I” or “Phase II” assessment of the Premises and
where the particular conditions on the Premises which formed the basis for such recommendation were introduced to the Premises
during the Term and still exist, Tenant shall establish and comply with an operations and maintenance program relative to the Premises,
in form and substance acceptable to Landlord and Lender, prepared by an environmental consultant reasonably acceptable to Landlord
and Lender, which program shall address any Hazardous Materials (including, without limitation, asbestos-containing material or
lead based paint) that may now or in the future be detected on the Premises. Without limiting the generality of the preceding sentence,
Landlord may require (i) periodic notices or reports to Landlord and Lender in form, substance and at such intervals as Landlord
may specify to address matters raised in a “Phase I” or “Phase II’ assessment, (ii) an amendment to
such operations and maintenance program to address changing circumstances, laws or other matters, (iii) at Tenant’s
sole cost and expense, supplemental examination of the Premises by consultants reasonably acceptable to Landlord and Lender to
address matters raised in a “Phase I” or “Phase II” assessment, (iv) access to the Premises upon reasonable
notice, by Landlord or Lender, and their respective agents or servicer, to review and assess the environmental condition of the
Premises and Tenant’s compliance with any operations and maintenance program, and (v) variation of the operation and
maintenance program in response to the reports provided by any such consultants.

 

38.8         The
indemnity obligations of the Tenant and the rights and remedies of the Landlord under this Section 38 shall survive the expiration
or termination of this Lease for a period of twenty-four (24) months.

 

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39.         Estoppel
Certificate. Landlord and Tenant agree to deliver to each other, from time to time as reasonably requested in writing, and
within a reasonable period of time after receipt of such request, an estoppel certificate, addressed to such persons as the requesting
party may reasonably request, certifying that this Lease is unmodified and in full force and effect (or if there have been modifications,
that this Lease is in full force and effect as modified and stating the modifications), the dates to which any Base Rent due hereunder
has been paid in advance, if any, and that to the knowledge of the signer of such certificate, no default hereunder by either Landlord
or Tenant exists hereunder (or specifying each such default to which this signer may have knowledge), together with such other
information as Landlord or Tenant may reasonably require with respect to the status of this Lease and Tenant’s use and occupancy
of the Premises.

 

40.         Notice
of Lease. Upon the request of either party hereto, Landlord and Tenant agree to execute a short form Notice of Lease or Memorandum
of Lease in recordable form, setting forth information regarding this Lease, including, without limitation, if available, the dates
of commencement and expiration of the Term, the Renewal Options, Tenant’s Purchase Option and the Right of First Refusal.
All taxes, fees, costs and expenses of recording such Notice of Lease or Memorandum of Lease shall be paid by Tenant unless otherwise
agreed in writing by Landlord.

 

41.         Miscellaneous.

 

41.1         This
Lease shall be governed and construed in accordance with the Laws of the State.

 

41.2         The
headings of the Sections are for convenient reference only, and are not to be construed as part of this Lease.

 

41.3         The
language of this Lease shall be construed according to its plain meaning, and not strictly for or against Landlord or Tenant; and
the construction of this Lease and of any of its provisions shall be unaffected by any argument or claim that this Lease has been
prepared, wholly or in substantial part, by or on behalf of Tenant or Landlord.

 

41.4         Landlord
and Tenant each warrant and represent to the other, that each has full right to enter into this Lease and that there are no impediments,
contractual or otherwise, to full performance hereunder.

 

41.5         This
Lease shall be binding upon the parties hereto and shall inure to the benefit of and be binding upon the heirs, executors, administrators,
successors and assigns of Landlord and the successors and assigns of Tenant.

 

41.6         In
the event of any suit, action, or other proceeding at law or in equity, by either party hereto against the other, by reason of
any matter arising out of this Lease, the prevailing party shall recover, not only its legal costs, but also reasonable attorneys’
fees (to be fixed by the Court) for the maintenance or defense of said suit, action or other proceeding, as the case may be.

 

41.7         A
waiver by either party of any breach(es) by the other of any one or more of the covenants, agreements, or conditions of this Lease,
shall not bar the enforcement of any rights or remedies for any subsequent breach of any of the same or other covenants, agreements,
or conditions.

 

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41.8         This
Lease and the referenced schedules and exhibits set forth the entire agreement between the parties hereto and may not be amended,
changed or terminated orally or by any agreement unless such agreement shall be in writing and signed by Tenant and Landlord and
approved in writing by the Lender. Landlord and Tenant further agree that this Lease shall not be amended and no amendment shall
be effective unless (i) all guarantors of the Tenant’s obligations under this Lease, remain liable for all of the Tenant’s
obligations under this Lease notwithstanding such amendment, and (ii) Landlord and Tenant receive written notification from
each nationally recognized statistical rating organization (including, without limitation, S&P and Moody’s, if applicable)
which has issued a rating of any securities issued by the Lender or the Landlord which is secured by the Premises that such amendment
will not result in a downgrade, withdrawal or qualification of the rating then assigned to such securities.

 

41.9         If
any provision of this Lease or the application thereof to any persons or circumstances shall to any extent be invalid or unenforceable,
the remainder of this Lease or the application of such provision to persons or circumstances other than those to which it is held
invalid or unenforceable shall not be affected thereby, and each provision of this Lease shall be valid and enforceable to the
fullest extent permitted by Law.

 

41.10       The
submission of this Lease for examination does not constitute a reservation of or agreement to lease the Premises; and this Lease
shall become effective and binding only upon proper execution and unconditional delivery thereof by Landlord and Tenant.

 

41.11       When
the context in which words are used in this Lease indicates that such is the intent, words in the singular number shall include
the plural and vice versa, and words in the masculine gender shall include the feminine and neuter genders and vice versa. Further,
references to “person” or “persons” in this Lease shall mean and include any natural person and any corporation,
partnership, joint venture, limited liability company, trust or other entity whatsoever.

 

41.12       All
references to “business days” contained herein are references to normal working business days, i.e., Monday
through Friday of each calendar week, exclusive of federal and national bank holidays.

 

41.13       Time
is of the essence in the payment and performance of the obligations of Tenant under this Lease.

 

41.14       In
the event that the Landlord hereunder consists of more than one (1) person, then all obligations of the Landlord hereunder
shall be joint and several obligations of all persons named as Landlord herein. If any such person directly or indirectly transfers
its interest in the Premises, whether by conveyance of its interest in the Premises, merger or consolidation or by the transfer
of the ownership interest in such Person, such transferee and its successors and assigns shall be bound by this subparagraph 41.14.
All persons named as Landlord herein shall collectively designate a single person (the “Designated Person”) to be the
person entitled to give notices, waivers and consents hereunder. If Landlord consists of only one person, such person shall be
the Designated Person. Landlord agrees that Tenant may rely on a waiver, consent or notice given by such Designated Person as binding
on all other persons named as Landlord herein; provided, that any amendment, change or termination of this Lease which is
permitted under Section 41.8 must be signed by all persons named as Landlord. The Designated Person shall be the only person
entitled to give notices hereunder by the Landlord, and Tenant may disregard all communications from any other person named as
Landlord herein, except as provided in the immediately following sentence. The identity of the Designated Person may be changed
from time to time by ten (10) business days’ advance written notice to the Tenant signed by either the Designated Person
or by all persons named as Landlord herein.

 

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41.15       If
Landlord shall be in default under any of the provisions of this Lease, Tenant may, after thirty (30) days written notice
to Landlord and failure of Landlord to cure during said period (or such longer period of time as may reasonably be necessary, but
under no circumstances longer than a total of ninety (90) days, if the default may not be cured within thirty (30) days
but Landlord has commenced and is diligently pursuing a cure of such default), but without notice in the event of an emergency,
do whatever is necessary to cure such default as may be appropriate under the circumstances for the account of and at the expense
of Landlord. If an emergency exists, Tenant shall use reasonable efforts to notify Landlord of the situation by phone or other
available communication before taking any such action to cure such default.

 

41.16       In
addition to any statutory lien for rent in Landlord’s favor, Landlord (the secured party for purposes hereof) shall have
and Tenant (the debtor for purposes hereof) hereby grants to Landlord, a continuing security interest for all Base Rent, Additional
Rent and other sums of money becoming due hereunder from Tenant, upon all goods, wares, equipment, fixtures, furniture, inventory,
accounts, contract rights, chattel paper and other personal property of Tenant situated on the Premises subject to this Lease and
such property shall not be removed therefrom without the consent of Landlord until all arrearages in Rent as well as any and all
sums of money then due to Landlord hereunder shall first have been paid and discharged. In the event of a default under this Lease,
Landlord shall have, in addition to any other remedies provided herein or by law, all rights and remedies under the Uniform Commercial
Code, including without limitation the right to sell the property described in this Section at public or private sale upon ten
(10) days notice to Tenant which notice Tenant hereby agrees is adequate and reasonable. Tenant hereby agrees to execute such other
instruments necessary or desirable in Landlord's discretion to perfect the security interest hereby created. Any statutory lien
for Rent in not hereby waived, the express contractual lien herein being granted in addition and supplementary thereto. Tenant
warrants and represents that the collateral subject to the security interest granted herein is not purchased or used by Tenant
for personal, family or household purposes. Tenant further warrants and represents that the lien granted herein constitutes a first
and superior lien and the Tenant will not allow the placing of any other lien upon the property described in this Section without
the prior written consent of Landlord. Notwithstanding anything to the contrary contained herein, Landlord acknowledges and agrees
that Tenant may pledge or encumber its accounts receivable for any purpose, including but not limited to a pledge or encumbrance
to secure a working capital line of credit from one or more lenders and Lender shall execute any intercreditor agreement reasonably
required by such accounts receivable lender..

 

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41.17       TENANT
HEREBY WAIVES ALL ITS RIGHTS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT, SECTION 17.41 ET. SEQ.
OF THE TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN
ATTORNEY OF TENANT’S OWN SELECTION, TENANT VOLUNTARILY CONSENTS TO THIS WAIVER.

 

42.         Guaranty
of Lease. This Lease and the obligations of Tenant hereunder shall be guaranteed by M. Craig Kelly (“Guarantor”).
Upon the execution of the Lease, Guarantor shall execute that certain Guaranty of Lease in the form attached hereto as Exhibit D.

 

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IN WITNESS WHEREOF,
Landlord and Tenant have duly executed this Lease as of the Date of Lease above written.

 

	 	LANDLORD:
	 	 
	 	CHP FRIENDSWOOD SNF, LLC, a

Delaware limited liability company
	 	 	 
	 	By:	Cornerstone Core Properties REIT, Inc., a
	 	 	Maryland corporation
	 	Its:	Manager
	 	 	 
	 	By:	/s/ Kent Eikanas
	 	 	Kent Eikanas
	 	 	President and Chief Operating Officer

 

	 	TENANT:
	 	 
	 	MASON FRIENDSWOOD OP, LLC
	 	a Texas limited liability company
	 	 	 
	 	By:	/s/ M. Craig Keely
	 	Name:	CEO
	 	Its:	 

 

    	48

    	 

    

 

SCHEDULE 1

 

BASE RENT SCHEDULE

 

 

    	S-1

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION OF THE PREMISES

 

 

    	 

    	 

    

 

 

    	3

    	 

    

 

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

 

    	 

    	 

    

 

 

    	5

    	 

    

 

EXHIBIT C

 

APPROVED MANAGEMENT AGREEMENT

 

[ATTACHED HERETO]

 

    	 

    	 

    

 

EXHIBIT D

 

GUARANTY OF LEASE

 

The following provisions
form a part of and constitute the basis for this Guaranty of Lease (herein referred to as the “Guaranty”):

 

WHEREAS, a certain
Lease Agreement dated September ___, 2012 (herein referred to as the “Lease”) has been executed by and between
CHP Friendswood SNF, LLC, as Landlord (herein referred to as “Landlord”, and Mason Friendswood OP, LLC, herein
referred to as “Tenant”), covering certain Premises located in Friendswood, County of Galveston, State of Texas,
as more particularly described in the Lease;

 

WHEREAS, as a condition
to Landlord's entering into the Lease, Landlord requires the undersigned to guarantee the full performance of all of the obligations
of Tenant accruing under the Lease;

 

WHEREAS, the undersigned
desires to induce Landlord to enter into the Lease with Tenant;

 

NOW, THEREFORE, in
consideration of the execution of the Lease by Landlord, and other good and valuable consideration, the receipt of which is hereby
acknowledged, the undersigned hereby agrees that:

 

1.          The
undersigned unconditionally, absolutely and to the same extent as if the undersigned had signed the Lease as Tenant, assumes all
liabilities, obligations and duties of Tenant accruing under the Lease, and guarantees to Landlord and Landlord's successors and
assigns the full, prompt and complete performance of each and all of the terms, covenants, conditions and provisions of the Lease
to be kept and performed by Tenant or Tenant's successors or assigns, including the payment of all rental and other charges to
accrue thereunder and all damages that may arise as a consequence of the nonperformance thereof.

 

2.          The
liability of the undersigned under this Guaranty shall be unconditional and primary, and in relation to any right of action which
shall accrue to Landlord under the Lease, Landlord may, at its option, proceed from time-to-time solely against the undersigned
or jointly against the undersigned and any other person or entity without regard to Tenant's ability to perform and without first
commencing any action, exhausting any remedy, obtaining any judgment or proceeding in any way against Tenant or any other person
or entity; and suit may be brought and maintained against the undersigned by Landlord to enforce any liability, duty or obligation
guaranteed hereby without joinder of Tenant or any other person or entity.

 

3.          This
Guaranty shall continue during the entire term of the Lease and any renewals or extensions thereof and thereafter until Tenant
and Tenant's successors or assigns have fully discharged all of their obligations under the Lease.

 

    	 

    	 

    

 

4.          Until
all the covenants and conditions in the Lease to be performed and observed by Tenant or Tenant's successors or assigns are fully
performed and observed, the undersigned: (a) shall have no right of subrogation or any other right to enforce any remedy against
Tenant or Tenant's successors or assigns by reason of any payment or performance thereunder by the undersigned, and (b) subordinates
any liability or indebtedness of Tenant or Tenant's successors or assigns now or hereafter held by the undersigned to all obligations
of Tenant or Tenant's successors or assigns to Landlord under the Lease.

 

5.          The
undersigned agrees that, to the extent allowed by law, the undersigned's obligations under the terms of this Guaranty shall not
be released, diminished, impaired, reduced or affected by any limitation of liability or recourse under the Lease or by the occurrence
of any one or more of the following events: (a) the taking or accepting of any other security or guaranty in connection with the
Lease; (b) any release, surrender, exchange, subordination, or loss of any security at any time existing or purported or believed
to exist in connection with the Lease; (c) the death, insolvency, bankruptcy, disability, dissolution, termination, receivership,
reorganization or lack of corporate, partnership or other power of Tenant, the undersigned, or any party at any time liable for
payment or performance pursuant to the Lease, whether now existing or hereafter occurring; (d) any assignment or subletting by
Tenant or Tenant's successors or assigns whether or not permitted pursuant to the terms of the Lease or otherwise approved by Landlord;
(e) amendment of the Lease or any renewal, extension, modification or rearrangement of the terms of payment or performance pursuant
to the Lease either with or without notice to or consent of the undersigned, or any adjustment, indulgence, forbearance, or compromise
that may be granted or given by Landlord to Tenant, the undersigned or any other party at any time liable for payment or performance
pursuant to the Lease; (f) any neglect, delay, omission, failure, or refusal of Landlord to take or prosecute any action for the
collection or enforcement of the Lease or to foreclose or take or prosecute any action in connection with the Lease; (g) any failure
of Landlord to notify the undersigned of any renewal, extension, rearrangement, modification, assignment of the Lease or subletting
of the Premises or any part thereof, or of the release of or change in any security or of any other action taken or refrained from
being taken by Landlord against Tenant or of any new agreement between Landlord and Tenant, it being understood that Landlord shall
not be required to give the undersigned any notice of any kind under any circumstances with respect to or in connection with the
Lease; (h) the unenforceability of all or any part of the Lease against Tenant, it being agreed that the undersigned shall remain
liable hereon regardless of whether Tenant or any other person be found not liable on the Lease, or any part thereof, for any reason;
or (i) any payment by Tenant to Landlord being held to constitute a preference under the bankruptcy laws or for any other reason
Landlord being required to refund such payment or pay the amount thereof to someone else.

 

Anything herein or
in the Lease to the contrary notwithstanding, Guarantor hereby acknowledges and agrees that any security deposit or other credit
in favor of the Tenant may be applied to cure any Tenant default or offset any damages incurred by Landlord under the Lease, as
Landlord determines in its sole and absolute discretion, and Landlord shall not be obligated to apply any such deposit or credit
to any such default or damages before bringing any action or pursuing any remedy available to Landlord against Guarantor. Guarantor
further acknowledges that its liability under this Guaranty shall not be affected in any manner by such deposit or credit, or Landlord’s
application thereof.

 

    	 

    	 

    

 

6.          In
the event suit or action is brought upon or in connection with the enforcement of this Guaranty, the undersigned shall pay reasonable
attorneys' fees and all other expenses and court costs incurred by Landlord in connection therewith.

 

7.          This
Guaranty shall be binding upon the heirs, legal representatives, successors and assigns of the undersigned and shall inure to the
benefit of the heirs, legal representatives, successors and assigns of Landlord.

 

8.          The
undersigned represents that [the undersigned is the owner of a direct or indirect interest in Tenant and that] the undersigned
will receive a direct or indirect benefit from the Lease.

 

IN WITNESS WHEREOF,
the undersigned has executed this Guaranty as of the _________________ day of ______________________________, 2012.

 

	 	GUARANTOR:
	 	 
	 	/s/ M. Craig Kelly
	 	M. Craig KellyLoan No. 07-0004432

  

 

 

GENERAL ELECTRIC CAPITAL CORPORATION

(as Administrative Agent and a Lender)

THE FINANCIAL INSTITUTIONS WHO ARE OR
HEREAFTER

BECOME PARTIES TO THIS LOAN AGREEMENT,

as Lenders,

 

and

 

CHP PORTLAND, LLC

CHP MEDFORD 1, LLC,

and

CHP FRIENDSWOOD SNF, LLC,

Each, a Delaware limited liability company,

(Borrower)

 

 

 

 LOAN AGREEMENT

 

 

 

 Dated as of: September 13, 2012

Cornerstone Portfolio

 

 

  

    	 

    	 

    

  

TABLE OF
CONTENTS

 

	ARTICLE I	DEFINITIONS	 	1
	 	 	 	 
	Section 1.1.	Certain Definitions	 	1
	Section 1.2.	Definitions	 	20
	Section 1.3.	Phrases	 	20
	 	 	 	 
	ARTICLE II	LOAN TERMS	 	20
	 	 	 	 
	Section 2.1.	The Loan	 	20
	Section 2.2.	Interest Rate; Late Charge; Default Rate.	 	21
	Section 2.3.	Terms of Payment	 	21
	Section 2.4.	Prepayment.	 	22
	Section 2.5.	Security; Establishment of Funds.	 	22
	Section 2.6.	Application of Payments.	 	24
	Section 2.7.	Sources and Uses	 	26
	Section 2.8.	Capital Adequacy; Increased Costs; Illegality.	 	26
	Section 2.9.	Interest Rate Protection	 	27
	Section 2.10.	Libor Breakage Amount	 	28
	Section 2.11.	[Reserved].	 	28
	Section 2.12.	Evidence of Debt.	 	28
	Section 2.13.	Substitution of Lenders.	 	29
	Section 2.14.	Defaulting Lenders.	 	30
	Section 2.15.	Fees and Expenses	 	31
	Section 2.16.	Withholding Taxes.	 	31
	Section 2.17.	Partial Releases.	 	33
	 	 	 	 
	ARTICLE III	INSURANCE, CONDEMNATION, AND IMPOUNDS	 	35
	 	 	 	 
	Section 3.1.	Insurance	 	35
	Section 3.2.	Use and Application of Insurance Proceeds.	 	38
	Section 3.3.	Condemnation Awards	 	39
	Section 3.4.	Insurance Impounds	 	40
	Section 3.5.	Real Estate Tax Impounds	 	41
	 	 	 	 
	ARTICLE IV	ENVIRONMENTAL MATTERS	 	42
	 	 	 	 
	Section 4.1.	Representations and Warranties on Environmental Matters	 	42
	Section 4.2.	Covenants on Environmental Matters.	 	42
	Section 4.3.	Allocation of Risks and Indemnity	 	43
	Section 4.4.	Administrative Agent’s Right to Protect Collateral	 	43
	Section 4.5.	No Waiver	 	44

 

    	i

    	 

    

 

	ARTICLE V	LEASING MATTERS	 	44
	 	 	 	 
	Section 5.1.	Representations and Warranties on Leases.	 	44
	Section 5.2.	[Reserved].	 	45
	Section 5.3.	Covenants.	 	45
	Section 5.4.	Tenant Estoppels.	 	46
	Section 5.5.	Payment of Rents Under Master Lease.	 	46
	 	 	 	 
	ARTICLE VI	REPRESENTATIONS AND WARRANTIES	 	47
	 	 	 	 
	Section 6.1.	Organization, Power and Authority; Formation Documents.	 	47
	Section 6.2.	Validity of Loan Documents	 	47
	Section 6.3.	Liabilities; Litigation.	 	48
	Section 6.4.	Taxes and Assessments	 	48
	Section 6.5.	Other Agreements; Defaults	 	48
	Section 6.6.	Compliance with Law	 	48
	Section 6.7.	Condemnation	 	48
	Section 6.8.	Access	 	49
	Section 6.9.	Location of Borrower	 	49
	Section 6.10.	ERISA; Employees.	 	49
	Section 6.11.	Margin Stock	 	49
	Section 6.12.	Forfeiture	 	49
	Section 6.13.	Tax Filings	 	49
	Section 6.14.	Solvency	 	50
	Section 6.15.	Full and Accurate Disclosure	 	50
	Section 6.16.	Flood Zone	 	50
	Section 6.17.	Single Purpose Entity/Separateness	 	50
	Section 6.18.	Compliance With International Trade Control Laws and OFAC Regulations	 	53
	Section 6.19.	Borrower’s Funds	 	54
	Section 6.20.	Operators’ Agreements	 	55
	Section 6.21.	Physical Condition	 	55
	Section 6.22.	Healthcare Representations	 	56
	Section 6.23.	No Change in Facts or Circumstances; Disclosure	 	57
	 	 	 	 
	ARTICLE VII	FINANCIAL REPORTING	 	57
	 	 	 	 
	Section 7.1.	Financial Statements	 	57
	Section 7.2.	Additional Reports	 	59
	Section 7.3.	Compliance Certificate	 	60
	Section 7.4.	Accounting Principles	 	60
	Section 7.5.	Other Information; Access	 	60
	Section 7.6.	Annual Budget	 	61
	Section 7.7.	Books and Records/Audits	 	61

 

    	ii

    	 

    

 

	ARTICLE VIII	COVENANTS	 	61
	 	 	 	 
	Section 8.1.	Transfers or Encumbrance of Property.	 	61
	Section 8.2.	Taxes; Utility Charges	 	64
	Section 8.3.	Management.	 	64
	Section 8.4.	Operation; Maintenance; Inspection	 	65
	Section 8.5.	Taxes on Security	 	65
	Section 8.6.	Legal Existence; Name, Etc	 	66
	Section 8.7.	Further Assurances	 	66
	Section 8.8.	Estoppel Certificates Regarding Loan	 	66
	Section 8.9.	Notice of Certain Events	 	67
	Section 8.10.	Indemnification	 	67
	Section 8.11.	[Intentionally Omitted].	 	67
	Section 8.12.	Payment For Labor and Materials	 	67
	Section 8.13.	Use and Proceeds, Revenues	 	68
	Section 8.14.	Compliance with Laws and Contractual Obligations.	 	68
	Section 8.15.	Operating and Financial Covenants	 	68
	Section 8.16.	Healthcare Laws and Covenants.	 	69
	Section 8.17.	Cooperation Regarding Licenses	 	71
	Section 8.18.	Transactions With Affiliates	 	72
	Section 8.19.	Representations and Warranties	 	72
	Section 8.20.	Alterations	 	72
	Section 8.21.	Business and Operations	 	72
	Section 8.22.	Severability of Covenants	 	72
	Section 8.23.	Required Repairs and Post Closing Requirements	 	72
	 	 	 	 
	ARTICLE IX	EVENTS OF DEFAULT	 	73
	 	 	 	 
	Section 9.1.	Events of Default	 	73
	Section 9.2.	Special Right to Cure with Respect to Operational Defaults	 	75
	 	 	 	 
	ARTICLE X	REMEDIES	 	76
	 	 	 	 
	Section 10.1.	Remedies - Insolvency Events	 	76
	Section 10.2.	Remedies - Other Events	 	77
	Section 10.3.	Administrative Agent’s Right to Perform the Obligations	 	77
	 	 	 	 
	ARTICLE XI	ADMINISTRATIVE AGENT	 	78
	 	 	 	 
	Section 11.1.	Appointment and Duties.	 	78
	Section 11.2.	Binding Effect	 	79
	Section 11.3.	Use of Discretion.	 	79
	Section 11.4.	Delegation of Rights and Duties	 	79
	Section 11.5.	Reliance and Liability.	 	80
	Section 11.6.	Administrative Agent Individually	 	81
	Section 11.7.	Lender Credit Decision	 	81
	Section 11.8.	Expenses; Indemnities.	 	81

 

    	iii

    	 

    

 

	Section 11.9.	Resignation of Administrative Agent.	 	82
	Section 11.10.	Additional Secured Parties	 	83
	 	 	 	 
	ARTICLE XII	MISCELLANEOUS	 	83
	 	 	 	 
	Section 12.1.	Notices	 	83
	Section 12.2.	Amendments and Waivers.	 	85
	Section 12.3.	Assignments and Participations; Binding Effect.	 	87
	Section 12.4.	Indemnities.	 	90
	Section 12.5.	Lender-Creditor Relationship	 	90
	Section 12.6.	Right of Setoff	 	91
	Section 12.7.	Sharing of Payments, Etc	 	91
	Section 12.8.	Marshaling; Payments Set Aside	 	91
	Section 12.9.	Limitation on Interest	 	92
	Section 12.10.	Invalid Provisions	 	92
	Section 12.11.	Reimbursement of Expenses.	 	93
	Section 12.12.	Approvals; Third Parties; Conditions	 	94
	Section 12.13.	Administrative Agent and Lenders Not in Control; No Partnership	 	94
	Section 12.14.	Contest of Certain Claims	 	95
	Section 12.15.	Time of the Essence	 	95
	Section 12.16.	Successors and Assigns	 	95
	Section 12.17.	Renewal, Extension or Rearrangement	 	95
	Section 12.18.	Waivers.	 	95
	Section 12.19.	Cumulative Rights; Joint and Several Liability	 	95
	Section 12.20.	Singular and Plural	 	96
	Section 12.21.	Exhibits and Schedules	 	96
	Section 12.22.	Titles of Articles, Sections and Subsections	 	96
	Section 12.23.	Promotional Material	 	96
	Section 12.24.	Survival	 	96
	Section 12.25.	WAIVER OF JURY TRIAL	 	96
	Section 12.26.	Waiver of Punitive or Consequential Damages	 	97
	Section 12.27.	Governing Law	 	97
	Section 12.28.	Entire Agreement	 	97
	Section 12.29.	Counterparts	 	97
	Section 12.30.	Consents and Approvals	 	97
	Section 12.31.	Right of First Refusal	 	98
	Section 12.32.	Effectiveness of Facsimile Documents and Signatures	 	98
	Section 12.33.	Venue	 	98
	Section 12.34.	Important Information Regarding Procedures for Requesting Credit	 	99
	Section 12.35.	Method of Payment	 	99
	Section 12.36.	Non-Public Information; Confidentiality; Disclosure	 	99
	Section 12.37.	Post-Closing Obligations of Borrower	 	99
	Section 12.38.	Release and Waiver Regarding Special Audits	 	100
	 	 	 	 
	ARTICLE XIII	LIMITATIONS ON LIABILITY	 	100
	 	 	 	 
	Section 13.1.	Limitation on Liability.	 	100

 

    	iv

    	 

    

 

	Section 13.2.	Limitation on Liability of Lender’s Officers, Employees, etc	 	103
	 	 	 	 
	ARTICLE XIV	CROSS-GUARANTY	 	104
	 	 	 	 
	Section 14.1.	Cross-Guaranty	 	104
	Section 14.2.	Waivers By Borrower	 	104
	Section 14.3.	Benefit of Guaranty	 	104
	Section 14.4.	Waiver of Subrogation, Etc	 	105
	Section 14.5.	Election of Remedies	 	105
	Section 14.6.	Limitation	 	105
	Section 14.7.	Contribution with respect to Guarantee Obligations.	 	106
	Section 14.8.	Liability Cumulative	 	107

 

Exhibits and Schedules

	Exhibit A         	Description of Projects and Operators; Allocated Loan Amounts
	Exhibit B	Loan Commitments
	Schedule 2.1	Conditions to Advance of Loan Proceeds
	Schedule 2.3(a)	Amortization Schedule
	Schedule 2.5(b)	Required Repairs
	Schedule 2.7	Sources and Uses
	Schedule 6.1	Organizational Information; Organizational Chart
	Schedule 6.22	Disclosures Regarding Healthcare Matters
	Schedule 6.22(a)	Third Party Payor Programs
	Schedule 6.22(b)	Primary Licenses
	Schedule 7.2	Form of Compliance Certificate
	Schedule 12.37	Post-Closing Obligations

  

    	v

    	 

    

  

LOAN AGREEMENT

 

This Loan Agreement
(this “Agreement”) is entered into as of September 13, 2012 by and among GENERAL ELECTRIC CAPITAL CORPORATION,
a Delaware corporation (“GE Capital”), as Administrative Agent and collateral agent for the Lenders (as
defined herein) (in such capacity and together with its successors and permitted assigns, the “Administrative Agent”),
THE FINANCIAL INSTITUTIONS WHO ARE OR HEREAFTER BECOME PARTIES TO THIS AGREEMENT as Lenders (together with their successors and
permitted assigns, each a “Lender” and collectively, the “Lenders”), and CHP
PORTLAND, LLC, CHP MEDFORD 1, LLC, and CHP FRIENDSWOOD SNF, LLC, each, a Delaware limited liability company (individually or collectively,
as the context may require, and together with such Affiliates of each as may from time to time become signatories hereto as “Borrowers”
“Borrower”).

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.1.    Certain Definitions. As used herein, the following terms have the meanings
indicated:

 

“Acceleration
Prepayment Premium” has the meaning assigned in Section 2.4(d).

 

“Acceptance
Notice” has the meaning assigned in Section 11.25.

 

“Account
Debtor” means “account debtor”, as defined in Article 9 of the UCC, and any other obligor
in respect of an Account.

 

“ACH”
has the meaning assigned in Section 2.6(c).

 

“Acknowledgement
of Property Manager” means any Collateral Assignment, Subordination and Agreement of a Property Manager (whether
one or more) executed by a Property Manager in favor of the Administrative Agent (on behalf of itself and the Lenders).

 

“Adjusted
Expenses” means actual operating expenses related to the Projects, excluding any rent and interest paid and depreciation
recorded by Operating Tenant on a stabilized accrual basis for the previous twelve (12) month period (as reasonably adjusted by
Administrative Agent), including: (i) recurring expenses as determined under GAAP, (ii) real estate taxes, (iii) management fees
(whether paid or not) in an amount not less than five percent (5%) of effective gross income (or the actual management fee paid,
if higher) and (iv) a replacement reserve (whether reserved or not) of not less than Three Hundred Fifty and No/100 Dollars ($350)
per Residential Unit.

 

“Adjusted
Net Operating Income” or “ANOI” means annualized Adjusted Revenue less Adjusted Expenses,
based upon the financial reports provided by Borrower under Article 7 and approved by Administrative Agent in its reasonable discretion.

 

    	1

    	 

    

  

“Adjusted
Revenue” means revenues generated by the Operator at the Projects for the period in question (and if none specified,
then for the most current twelve (12) months), as determined under GAAP, but excluding (a) nonrecurring income and non-property
related income (as determined by Administrative Agent in its sole discretion) and income from tenants that is classified as “bad
debt” under GAAP, and (b) late fees and interest income; provided, however, if actual occupancy of
the Projects, taken as a whole, exceeds 95%, Adjusted Revenue shall be proportionately reduced assuming an occupancy of 95%.

 

“Administrative
Agent” has the meaning assigned in the preamble to this Agreement.

 

“Affected
Lender” has the meaning assigned in Section 2.13(a).

 

“Affiliate”
means, with respect to a particular Person, (a) any corporation in which such Person or any partner, shareholder, director, officer,
member, or manager of such Person directly or indirectly owns or controls more than ten percent (10%) of the beneficial interest,
(b) any partnership, joint venture or limited liability company in which such Person or any partner, shareholder, director, officer,
member, or manager of such Person is a partner, joint venturer or member, (c) any trust in which such Person or any partner, shareholder,
director, officer, member or manager of such Person is a trustee or beneficiary, (d) any Person which is directly or indirectly
owned or controlled by such Person or any partner, shareholder, director, officer, member or manager of such Person, (e) any partner,
shareholder, director, officer, member, manager or employee of such Person, (f) any Person related by birth, adoption or marriage
to any partner, shareholder, director, officer, member, manager, or employee of such Person. Any Borrower Party shall be deemed
an Affiliate of Borrower.

 

“Affiliated
Manager” shall mean any property manager in which Borrower, or any Affiliate of Borrower has, directly or indirectly,
any legal, beneficial or economic interest.

 

“Agreement”
means this Loan Agreement, as amended, restated, supplemented, or otherwise modified from time to time.

 

“Anti-Money
Laundering Laws” means those laws, regulations and sanctions, state and federal, criminal and civil, that (a) limit
the use of and/or seek the forfeiture of proceeds from illegal transactions; (b) limit commercial transactions with designated
countries or individuals believed to be terrorists, narcotics dealers or otherwise engaged in activities contrary to the interests
of the United States; (c) require identification and documentation of the parties with whom a Financial Institution conducts business;
or (d) are designed to disrupt the flow of funds to terrorist organizations. Such laws, regulations and sanctions shall be deemed
to include the Patriot Act, the Bank Secrecy Act, the Trading with the Enemy Act, 50 U.S.C. App. Section 1, et seq., the
International Emergency Economic Powers Act, 50 U.S.C. Section 1701, et seq., and the sanction regulations promulgated pursuant
thereto by the OFAC, as well as laws relating to prevention and detection of money laundering in 18 U.S.C. Sections 1956 and 1957.

 

“Approved
Fund” means, with respect to Administrative Agent or any Lender, any Person (other than a natural Person) that (a)
is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit
in the ordinary course of its business and (b) is advised or managed by (i) Administrative Agent or such Lender, (ii) any Affiliate
of Administrative Agent or such Lender or (iii) any Person (other than an individual) or any Affiliate of any Person (other than
an individual) that administers or manages Administrative Agent or such Lender.

 

    	2

    	 

    

  

“Approved
Insurer” means any insurer (other than Medicaid/Medicare/TRICARE) as may be approved by Administrative Agent from
time to time in its sole discretion.

 

“Assignment”
means an assignment agreement entered into by a Lender, as assignor, and any Person, as assignee, pursuant to the terms and provisions
of Section 12.3 (with the consent of any party whose consent is required by Section 12.3), accepted by the Administrative
Agent, in form and substance satisfactory to Administrative Agent.

 

“Assignment
of Hedge Agreement” means one more collateral assignments of Hedge Agreements, as amended, restated, supplemented
or otherwise modified from time to time, which may be executed and delivered by Borrower and the counterparty under such Hedge
Agreement to Administrative Agent (on behalf of itself and the Lenders), in accordance with Section 2.9 hereof.

 

“Assignment
of Leases and Rents” means any Assignment of Leases and Rents (whether one or more), executed by any Borrower for
the benefit of Administrative Agent (on behalf of itself and the Lenders), and pertaining to the Leases, as amended, restated,
supplemented or otherwise modified from time to time.

 

“Assignment
of Membership Interests” means any Assignment of Membership Interests, executed by the sole member of any Borrower
for the benefit of Administrative Agent (on behalf of the Lenders), and pertaining to all of the membership interests in such Borrower,
as amended, restated, supplemented or otherwise modified from time to time.

 

“ASTM”
means the American Society for Testing and Materials.

 

“Award”
has the meaning assigned in Section 3.3.

 

“Bankruptcy
Party” has the meaning assigned in Section 9.7.

 

“Bank Secrecy
Act” means the Bank Secrecy Act, 31 U.S.C. Section 5311, et seq.

 

“Borrower”
has the meaning assigned in the preamble to this Agreement.

 

“Borrower
Formation Documents” has the meaning assigned in Section 6.1(b).

 

“Borrower
Party” means any Guarantor, any general partner of any Borrower, and any general partner in any partnership that
is a general partner of any Borrower, any manager or managing member of any Borrower, and any manager or managing member in any
limited liability company that is a managing member of any Borrower.

 

“Borrower’s
Knowledge” means the knowledge of any Borrower after diligent inquiry including, without limitation, review of existing
reports (e.g., environmental and property condition reports) regarding the Projects, inquiry of the current operator of the Projects.

 

    	3

    	 

    

  

“Business
Day” means a day other than a Saturday, a Sunday, or a legal holiday on which national banks located in the State
of Illinois are not open for general banking business.

 

“Cash Management
Agreement” means any agreement existing as of the date hereof or from time to time during the term of the Loan among
Administrative Agent (on behalf of itself and the Lenders), a Borrower, a Master Tenant (and any combination of the foregoing persons)
and a bank approved by Administrative Agent regarding the establishment and operation of a lockbox account, blocked account or
similar account into which rents and other Revenue are to be deposited, and includes the Deposit Account Control Agreement.

 

“Casualty”
has the meaning assigned in Section 3.2.

 

“Census
Report” means, with respect to the Projects, a report which records the number of licensed beds for the Projects,
as well s the number of patients and patient census days by Third Party Payor source.

 

“Closing
Date” means the date the Loan is funded by the Lenders.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form.

 

“Collateral”
means all real and personal property with respect to which Liens in favor of Administrative Agent are executed, identified or purported
to be granted pursuant to the Loan Documents and which secure the Obligations described in the Loan Documents and the Secured Hedge
Agreement, and includes, without limitation, all of a Borrower’s right, title and interest in, to and under all personal
property, real property, and other assets that arise from, are used in connection with, are related to or are located at the Projects,
whether now owned by or owing to, or hereafter acquired by or arising in favor of a Borrower (including all personal property and
other assets owned or acquired under any trade names, styles or derivations thereof), and whether owned or consigned by or to,
or leased from or to, a Borrower, and regardless of where located.

 

“Commercial
Lease” means any non-residential Lease of any portion of a Project, but excluding each Master Lease.

 

“Compliance
Certificate” means the compliance certificate in the form of Schedule 7.2 attached hereto.

 

“CON”
means a certificate of need or similar certificate, license or approval issued by the State Regulator for the requisite number
of Residential Units in each of the Projects.

 

“Condemnation”
has the meaning assigned in Section 3.3.

 

“Contest”
has the meaning assigned in Section 13.1(b).

 

“Contract
Rate” means a floating rate of interest equal to four and five tenths percent (4.50%) per annum in excess of the
LIBOR Rate.*

 

    	4

    	 

    

  

“Control”
or “controls” means, when used with respect to any specified Person, the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting securities or other beneficial interests,
by contract, by its position with such Person as general partner or managing member, or otherwise; and the terms “Controlling”
and “Controlled” have the meanings correlative to the foregoing.

 

“Debt”
means, for any Person, without duplication: (a) all indebtedness of such Person for borrowed money, for amounts drawn under a letter
of credit, or for the deferred purchase price of property for which such Person or any of its assets is liable, (b) all unfunded
amounts under a loan agreement, letter of credit, or other credit facility for which such Person or any of its assets would be
liable or subject, if such amounts were advanced under the credit facility, (c) all amounts required to be paid by such Person
as a guaranteed payment to partners or a preferred or special dividend, including any mandatory redemption of shares or interests,
(d) all indebtedness guaranteed by such Person, directly or indirectly, (e) all obligations under leases that constitute capital
leases for which such Person or any of its assets is liable or subject, and (f) all obligations of such Person under interest rate
swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person or any of its assets is liable
or subject contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise
assures a creditor against loss.

 

“Debt Service”
means, for any particular period, the aggregate interest, fixed principal (if applicable), and other payments due during such period
under the Loan and under any other permitted Debt relating to the Projects expressly approved by Administrative Agent (but not
including payments applied to escrows or reserves required by Administrative Agent or the Lenders). In the event that Debt Service
for a period of twelve (12) months (or other calculation period) is not available, Administrative Agent shall annualize the Debt
Service for such period of time as is available.

 

“Debt Service
Coverage Ratio” means the ratio of (i) Adjusted Net Operating Income for the Projects for a particular period, to
(ii) Debt Service for such period.

 

“Default
Rate” means the lesser of (a) the maximum rate of interest allowed by applicable law, and (b) five percent (5%) per
annum in excess of the Contract Rate.

 

“Defaulting
Lender” means a Lender that (a) has given written notice to Borrower, Administrative Agent, or any other Lender that
it will fail to fund any amounts to be funded by such Lender after the Closing Date under this Agreement or otherwise fails to
fund such amount under this Agreement; (b) is in default for failing to make payments under one or more syndicated credit facilities
(unless subject to a good faith dispute); (c) has declared (or the holding company of such Lender has declared) bankruptcy or is
otherwise involved in a liquidation proceeding and Administrative Agent has determined such Lender is reasonably likely to become
a Defaulting Lender or (d) is the subject of a receivership.

 

“Deposit
Account” means a “deposit account” (as defined in Article 9 of the UCC), an investment
account, or other account in which funds are held or invested for credit to or for the benefit of any Borrower.

 

    	5

    	 

    

  

“Deposit
Account Bank” means each bank in which any Borrower maintains a Deposit Account.

 

“Deposit
Account Control Agreement” means an agreement, in form and substance satisfactory to Administrative Agent, among
Administrative Agent, a Borrower and the Deposit Account Bank, which agreement provides that (a) such bank shall comply with instructions
originated by Administrative Agent directing disposition of the funds in such Deposit Account without further consent by Borrower,
and (b) such bank shall agree that it shall have no Lien on, or right of setoff or recoupment against, such Deposit Account or
the contents thereof, other than in respect of commercially reasonable fees and other items, in each such case expressly consented
to by Administrative Agent, and containing such other terms and conditions as Administrative Agent may require, as amended, restated,
supplemented or otherwise modified from time to time.

 

“Determination
Date” has the meaning assigned in Section 8.15(a).

 

“Dollars”
and the sign “$” each mean the lawful money of the United States of America.

 

“Electronic
Transmission” means any process of communication that does not directly involve the physical transfer of paper and
that is suitable for the retention, retrieval and reproduction of information by the recipient.

 

“Environmental
Indemnity Agreement” means that certain Hazardous Materials Indemnity Agreement dated of even date hereof in favor
of Administrative Agent (for itself and on behalf of the Lenders) executed by Borrower and Guarantor with respect to the Projects,
as amended, restated, supplemented or otherwise modified from time to time.

 

“Environmental
Laws” means any federal, state or local law (whether imposed by statute, ordinance, rule, regulation, administrative
or judicial order, or common law), now or hereafter enacted, governing health, safety, industrial hygiene, the environment or natural
resources, or Hazardous Materials, including, without limitation, such laws (a) governing or regulating the use, generation, storage,
removal, recovery, treatment, handling, transport, disposal, control, release, discharge of, or exposure to, Hazardous Materials,
(b) governing or regulating the transfer of property upon a negative declaration or other approval of a Governmental Authority
of the environmental condition of such property, or (c) requiring notification or disclosure of releases of Hazardous Materials
or other environmental conditions whether or not in connection with a transfer of title to or interest in property.

 

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

 

“ERISA
Affiliate” means each Restricted Party and all members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control that, together with such Restricted Party, are (or were at any time in the past
six years) treated as a single employer under Section 414 of the Internal Revenue Code.

 

“Event
of Default” has the meaning assigned in Article 9.

 

    	6

    	 

    

  

“Federal
Bankruptcy Code” means Chapter 11 of Title II of the United States Code (11 U.S.C. § 101, et seq.), as
amended.

 

“Financial
Institution” means a United States Financial Institution as defined in 31 U.S.C. 5312, as amended from time to time.

 

“Financing
Notice” has the meaning assigned in Section 12.32.

 

“FIRREA”
has the meaning assigned in Schedule 2.1.

 

“Friendswood
Project” means the Project described on Part 4 of Exhibit A.

 

“Funds”
means, collectively, the Replacement Escrow Fund, the HUD Fund and the Master Lease Fund.

 

“GAAP”
means general accepted accounting principles of the Accounting Principles Board of the American Institute of Certified Public Accountants
and the Financial Accounting Standards Board that are applicable on the date so indicated and consistently applied.

 

“GE Capital”
has the meaning assigned in the Preamble to this Agreement.

 

“GECB”
has the meaning specified in Section 12.3.

 

“Governmental
Account Debtor” means any Account Debtor that is a Governmental Authority, including, without limitation, Medicare
and Medicaid.

 

“Governmental
Approvals” means, collectively, all consents, licenses and permits and all other authorizations or approvals required
from any Governmental Authority to operate the Projects.

 

“Governmental
Authority” means any federal, state, county or municipal government or political subdivision thereof, any governmental
or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body (including, without
limitation, the State Regulator), or any court, administrative tribunal, or public body.

 

“Guarantor”
means Cornerstone Core Properties REIT, Inc.

 

    	7

    	 

    

  

“Hazardous
Materials” means (a) petroleum or chemical products, whether in liquid, solid, or gaseous form, or any fraction or
by product thereof, (b) asbestos or asbestos containing materials, (c) polychlorinated biphenyls (pcbs), (d) radon gas, (e) underground
storage tanks, (f)any explosive or radioactive substances, (g) lead or lead-based paint, (h) any other substance, material, waste
or mixture which is or shall be listed, defined, or otherwise determined by any Governmental Authority to be hazardous, toxic,
dangerous or otherwise regulated, controlled or giving rise to liability under any Environmental Laws, (i) any excessive moisture,
mildews, mold or other fungi in quantities and/or concentrations that could reasonably be expected to pose a risk to human health
or the environment, or negatively impact the value of the Projects or (j) any elements, material, compounds, mixtures, chemicals,
wastes, pollutants, contaminants or substances known to cause cancer or reproductive toxicity, that, because of its quantity, concentration
or physical or chemical characteristics, exposure is limited or regulated by any Governmental Authority having jurisdiction over
human health and safety, natural resources or the environment, or which poses a significant present or potential hazard to human
health and safety, or to the environment, if released into the workplace or the environment.

 

“Healthcare
Investigations” means any inquiries, investigations, probes, audits or proceedings concerning the business affairs,
practices, licensing or reimbursement entitlements of Borrower, Guarantor or any Operator (including, without limitation, inquiries
involving the Comprehensive Error Rate Testing and any inquiries, investigations, probes, audit or procedures initiated by Fiscal
Intermediary/Medicare Administrator Contractor, Medicaid Integrity Contractor, Recovery Audit Contractor, Program Safeguard Contractor,
Zone Program Integrity Contractor, Attorney General, Office of Inspector General, Department of Justice or similar governmental
agencies or contractors for such agencies).

 

“Healthcare
Laws” means all applicable state and federal statutes, codes, ordinances, orders, rules, regulations, and guidance
relating to patient healthcare and/or patient healthcare information, including HIPAA, the Health Information Technology for Economic
Clinical Health Act provisions of the American Recovery and Investment Act of 2009 and the respective rules and regulations promulgated
thereunder, and all other applicable state and federal laws regarding the privacy and security of protected health information
and other confidential patient information; the establishment, construction, ownership, operation, licensure, use or occupancy
of the Projects or any part thereof as a skilled nursing facility or other healthcare or senior living facility, and all conditions
of participation pursuant to Medicare and/or Medicaid certification; fraud and abuse, including without limitation, Section 1128B(b)
of the Social Security Act, as amended, 42 U.S.C. Section 1320a-7(b) (Criminal Penalties Involving Medicare or State Health Care
Programs), commonly referred to as the “Federal Anti-Kickback Statute,” and the Social Security Act,
as amended, Section 1877, 42 U.S.C. Section 1395nn (Prohibition Against Certain Referrals), commonly referred to as the “Stark
Statute”, 31 U.S.C Section 3729-33, and the “False Claims Act”.

 

“Hedge
Agreement” means any and all interest rate swap agreements, interest rate cap agreements, interest rate collar agreements
or other similar agreements pertaining to fluctuations in interest rates, now or hereafter entered into by any Borrower pursuant
to Section 2.9 of this Agreement, as the same may be renewed, extended, amended or replaced from time to time.

 

    	8

    	 

    

  

“HIPAA”
means the Health Insurance Portability and Accountability Act of 1996, as amended.

 

“HIPAA
Compliance Plan” has the meaning assigned in Section 8.16(a).

 

“HIPAA
Compliance Date” has the meaning assigned in Section 8.16(b).

 

“HIPAA
Compliant” has the meaning assigned in Section 8.16(a).

 

“HUD”
means the United States Department of Housing and Urban Development.

 

“HUD Commitment”
means a commitment letter or letter of intent entered into on or before September 13, 2013, by a lender insured by HUD and Borrower
that contemplates the funding of a HUD Loan, in an amount sufficient to repay the Loan in full, to Borrower on or before September
12, 2014.

 

“HUD Conditions”
means (a) no Event of Default has occurred and is continuing; (b) Borrower has delivered the HUD Commitment to Administrative
Agent; (c) the HUD Commitment remains in full force and effect; and (d) the HUD Commitment has not been amended or modified
in a manner that would reduce the funds available to Borrower to prepay the Loan to be less than the amount required to repay the
Obligations in full.

 

“HUD Fund” has
the meaning assigned in Section 2.5.

 

“HUD Loan”
means a loan to be advanced to Borrower by a lender insured by HUD, the proceeds of which shall be sufficient to repay the Obligations
in full.

 

“Indebtedness”
means all payment obligations of Borrower or any Borrower Party to Administrative Agent or to any Lender under the Loan or any
of the Loan Documents, including, without limitation, any and all interest, whether or not accruing after the filing of any petition
in bankruptcy or the commencement of any insolvency, reorganization or similar proceeding, and whether or not a claim for post-filing
or post petition interest is allowed in any such proceeding.

 

“Indemnitee”
has the meaning assigned in Section 11.3.

 

“Insurance
Impound” has the meaning assigned in Section 3.4.

 

“Insurance
Premiums” has the meaning assigned in Section 3.1(c).

 

“Interest
Only Period” means the first twelve (12) Payment Dates commencing with the first Payment Date on October 1, 2012,
and ending on the Payment Date on September 1, 2013.

 

“Land”
means the real property described in Exhibit A attached hereto.

 

“Laws”
means, collectively, all federal, state and local laws, statutes, codes, ordinances, orders, rules and regulations and guidances
and judicial opinions or presidential authority in the applicable jurisdiction, including quality and safety standards, accreditation
standards and requirements of any Governmental Authority or State Regulator having jurisdiction over Borrower or the ownership,
use, occupancy or operations of a Project, each as it may be amended from time to time.

 

    	9

    	 

    

  

“Lease
Party” means the party to any Lease that grants to the other party the right to use or occupy any portion of a Project,
whether it be Borrower or any Operator.

 

“Leases”
means all leases of, subleases of and occupancy agreements affecting a Project or any part thereof now existing or hereafter executed
(including all patient and resident care agreements and service agreements which include an occupancy agreement) and all amendments,
modifications or supplements thereto.

 

“Lender”
has the meaning assigned in the preamble to this Agreement. In addition to the foregoing, solely for the purpose of identifying
the Persons entitled to share in payments and collections from the Collateral and the benefit of any guarantees of the Obligations
as more fully set forth in this Agreement and the other Loan Documents, the term “Lender” shall include
Secured Hedge Providers. For the avoidance of doubt, any Person to whom any Obligations in respect of a Secured Hedge Agreement
are owed and which does not hold any portion of the Loan or commitments hereunder shall not be entitled to any other rights as
a “Lender” under this Agreement or the other Loan Documents.

 

“Lender
Transferee” has the meaning assigned in Section 12.3(f).

 

“Liabilities”
means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties, sanctions,
costs, fees, taxes, commissions, charges, disbursements and expenses, in each case of any kind or nature (including interest accrued
thereon or as a result thereto and fees, charges and disbursements of financial, legal and other advisors and consultants), whether
joint or several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise.

 

“Libor
Breakage Amount” means an amount, as reasonably calculated by any Lender, equal to the amount of any losses, expenses
and liabilities (including, without limitation, any loss (including interest paid) and lost opportunity cost in connection with
the re-employment of such funds) that such Lender or any of its Affiliates may sustain as a result of any payment of the Loan (or
any portion thereof) on any day that is not the last day of the Libor Interest Period applicable thereto (regardless of the source
of such prepayment and whether voluntary, by acceleration or otherwise).

 

“Libor
Business Day” means a Business Day on which banks in the City of London are generally open for interbank or foreign
exchange transactions.

 

“Libor
Interest Period” means each period commencing on the first day of a calendar month and ending on the last day of
the month that is three months thereafter; provided, any Libor Interest Period that would otherwise extend beyond the Maturity
Date shall end on the Maturity Date.

 

    	10

    	 

    

  

“Libor
Rate” means the greater of (a) five tenths percent (0.50%) per annum or (b) for each Libor Interest Period,
the rate determined by the Administrative Agent to be the offered rate for deposits in Dollars for the applicable Libor Interest
Period appearing on the Reuters Screen LIBOR01 page as of 11:00 a.m. (London time) two (2) Business Days prior to the next preceding
first day of each Libor Interest Period. In the event that such rate does not appear on the Reuters Screen LIBOR01 page at such
time, the “Libor Rate” shall be determined by reference to such other comparable publicly available service
for displaying the offered rate for deposit in Dollars in the London interbank market as may be selected by the Administrative
Agent and, in the absence of availability, such other method to determine such offered rate as may be selected by the Administrative
Agent in its sole discretion.

 

“Lien”
means any interest, or claim thereof, in a Project securing an obligation owed to, or a claim by, any Person other than the owner
of such Project, whether such interest is based on common law, statute or contract, including the lien or security interest arising
from a deed of trust, mortgage, assignment, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease,
consignment or bailment for security purposes. The term “Lien” shall include reservations, exceptions,
encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances
affecting such Project.

 

“Loan”
means the loan made by the Lenders to Borrower under this Agreement, together with all other amounts secured by the Loan Documents.

 

“Loan Commitment”
means, with respect to each Lender, the commitment of such Lender to make its Pro Rata Share of the Loan to Borrower, which commitment
is in the amount set forth opposite such Lender’s name on Exhibit B under the caption “Lender’s
Loan Commitment.” The aggregate amount of the Loan Commitments on the date hereof is specified on Exhibit B.

 

“Loan Documents”
means: (a) this Agreement, (b) the Note, (c) the Mortgage, (d) the Assignment of Leases and Rents, (e) Uniform Commercial Code
financing statements, (f) such assignments of management agreements, contracts and other rights as may be required under the Term
Sheet or otherwise requested by Administrative Agent or the Lenders, (g) the Business Associate Agreement, (h) the Recourse Guaranty
Agreement, (i) Collateral Assignment of Membership Interests, (j) the Security Agreement, (k) the Cash Management Agreement,
(l) [reserved], (m) Acknowledgment of Property Manager, (n) all other documents evidencing, securing, governing or otherwise pertaining
to the Loan, (o) any letter of credit provided to Administrative Agent (for itself and on behalf of the Lenders) in connection
with the Loan, and (p) all amendments, modifications, renewals, substitutions and replacements of any of the foregoing; provided
however, in no event shall the term “Loan Documents” include the Environmental Indemnity Agreement.

 

“Lockout
Period” means the period beginning on the Closing Date and ending on the last day of the calendar month that is twelve
(12) months thereafter.

 

“Management
Agreement” means, individually or collectively, as the context may require, any agreement, in the form approved by
Administrative Agent, between a Master Tenant and a Property Manager pursuant to which such Property Manager is engaged to manage
a Project.

 

    	11

    	 

    

  

“Master
Lease” means, individually and collectively, as the context may require, a lease (whether one or more), in the form
approved by Administrative Agent, between a Borrower, as landlord, and a Master Tenant, as tenant, demising a Project in its entirety,
together with all amendments, restatements, supplements and modifications thereto permitted under Section 5.3(b) hereof.

 

“Master
Lease Fund” has the meaning specified in Section 2.5(d).

 

“Master
Lease Subordination Agreement” means, individually and collectively, as the context may require, a Subordination,
Non-Disturbance and Attornment Agreement (whether one or more), in the form approved by Administrative Agent, executed by a Master
Tenant, a Borrower and Administrative Agent with respect to a Master Lease.

 

“Master
Tenant” means, individually or collectively as the context may require, each Person identified on Exhibit A
as the “Master Tenant” of a Project.

 

“Material
Action” means to file any insolvency, or reorganization case or proceeding, to institute proceedings to have a Borrower
or any Borrower Party be adjudicated bankrupt or insolvent, to institute proceedings under any applicable insolvency law, to seek
any relief under any law relating to relief from debts or the protection of debtors, to consent to the filing or institution of
bankruptcy or insolvency proceedings against a Borrower or any Borrower Party, to file a petition seeking, or consent to, reorganization
or relief with respect to a Borrower or any Borrower Party under any applicable federal or state law relating to bankruptcy or
insolvency, to seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian, or any
similar official of or for a Borrower or any Borrower Party or a substantial part of its respective property, to make any assignment
for the benefit of creditors of a Borrower or any Borrower Party, the admission in writing such Borrower’s or any Borrower
Party of such Person’s inability to pay its debts generally as they become due, or to take action in furtherance of any of
the foregoing.

 

“Material
Adverse Change” or “material adverse change” means, in Administrative Agent’s reasonable
discretion, the business prospects, operations or financial condition of a Person or property has changed in a manner which could
impair the value of the Collateral, prevent timely repayment of the Loan or otherwise prevent the applicable Person from timely
performing any of its material obligations under the Loan Documents or Environmental Indemnity Agreement.

 

“Material
Adverse Effect” or “material adverse effect” means, in Administrative Agent’s reasonable
discretion, a material adverse effect on (i) the condition (financial or otherwise), operations, business, assets, liabilities
or prospects of a Borrower, (ii) the ability of a Borrower to perform any material obligation under the Loan Documents, (iii) the
rights and remedies of the Administrative Agent and the Lenders under the Loan Documents, (iv) the ability of a Borrower or an
Operator to operate all or a material portion of the Projects owned by such Borrower or operated by such Operator or (v) the ability
of a Master Tenant to make the required rental payments under a Master Lease.

 

    	12

    	 

    

  

“Maturity
Date” means, as applicable, the earlier of (a) September 12, 2017; or (b) the date on which the Obligations
are otherwise required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents.

 

“Medicaid”
means Title XIX of the Social Security Act, which was enacted in 1965 to provide a cooperative federal-state program for low income
and medically indigent persons, which is partially funded by the federal government and administered by the states.

 

“Medicare”
means Title XVIII of the Social Security Act, which was enacted in 1965 to provide a federally funded and administered health program
for the aged and certain disabled persons.

 

“Mortgage”
means, collectively (whether one or more), as applicable, the Mortgage(s), Assignment of Leases and Rents, Security Agreement and
Fixture Filing, the Deed(s) of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, the Deed(s) to Secure
Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, or any similar security agreement encumbering a Project
executed by any Borrower in favor of Administrative Agent (for itself and on behalf of the Lenders), covering the Projects, as
amended, restated, supplemented or otherwise modified from time to time.

 

“Non-U.S.
Lender Party” means each of the Administrative Agent, the Lenders and each participant, in each case that is not
a Domestic Person.

 

“Note”
and “Notes” means, respectively, (a) each Promissory Note executed at any time by a Borrower and payable
to the order of a Lender in evidence of the Loan of such Lender and (b) all such Promissory Notes, together with all renewals,
modifications and extensions thereof and any replacement or additional notes executed by any Borrower pursuant to the terms hereof.

 

“Obligations”
means the Indebtedness and all other obligations of Borrower hereunder and under the other Loan Documents.

 

“OFAC”
means the Office of Foreign Assets Control, Department of the Treasury.

 

“Operational
Default” has the meaning assigned in Section 9.2.

 

“Operational
Default Forbearance Period” has the meaning assigned in Section 9.2.

 

“Operator”,
individually, and “Operators”, collectively, means the applicable Property Manager, Master Tenant, property
sublessee and/or operator under any Operating Agreement, approved by Administrative Agent and any successor to such Operator
approved by Administrative Agent. If there exists a Property Manager, Master Tenant and a property sublessee, or any combination
thereof, with respect to a Project, then “Operator” shall refer to all such entities, collectively and
individually as applicable and as the context may require.

 

“Operators’
Agreements” means, collectively, the Master Lease, the Management Agreement and/or other similar agreement regarding
the management and operation of a Project between a Borrower and a Master Tenant or a Master Tenant and a Property Manager.

 

    	13

    	 

    

  

“Other
Taxes” has the meaning assigned in Section 2.16(c).

 

“Partial
Release” has the meaning assigned in Section 2.17.

 

“Partial
Release Price” has the meaning assigned in Section 2.17(a)(viii).

 

“Partial
Release Principal Reduction Payment” shall mean a payment of a principal an amount that, if it had been made and
applied to the principal balance of the Loan on the last day of the applicable fiscal quarter, would have reduced the principal
balance of the Loan to an amount that would have enabled the Retained Project Debt Service Coverage Ratio and the Retained Project
Debt Yield to be in compliance with the requirements specified in Section 2.17(a)(v).

 

“Partial
Release Project” has the meaning assigned in Section 2.17.

 

“Patriot
Act” means the USA Patriot Act of 2001, Pub. L. No. 107-56.

 

“Payment
Date” means the first (1st) day of each calendar month.

 

“Permit”
means, with respect to any Person, any permit, approval, authorization, license, registration, certificate (including certificates
of occupancy), concession, grant, franchise, variance or permission from, and any other contractual obligations with, any Governmental
Authority, in each case whether or not having the force of law and applicable to or binding upon such Person or any of its property
or to which such Person or any of its property is subject.

 

“Permitted
Exceptions” means the exceptions to title contained in the Title Policy insuring the liens created pursuant to the
Mortgages and any other title matter to which Administrative Agent consents in writing.

 

“Permitted
Transfer” means (a) a Sale or Pledge expressly permitted under Section 8.1(c) or (b) a Prohibited Transfer
approved by the Required Lenders pursuant to Section 8.1(d) or 8.1(e).

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision
thereof, or any other form of entity.

 

“Post Closing
Obligations” means the post closing obligations described on Schedule 12.37.

 

“Potential
Default” means the occurrence of any event or condition which, with the giving of notice, the passage of time, or
both, would constitute an Event of Default.

 

“Primary
Licenses” means, with respect to a Project or Person operating a Project, as the case may be, the CON, permit or
license to operate as a skilled nursing facility, and each Medicaid/Medicare/TRICARE provider agreement.

 

    	14

    	 

    

  

“Prohibited
Transfer” has the meaning assigned in Section 8.1(a).

 

“Projects”
means the Land, and facilities located thereon, and all related facilities, amenities, fixtures and personal property owned by
Borrower and any improvements now or hereafter located on such Land, and any other real property and facilities owned by Borrower
that may from time to time be encumbered by a Mortgage. Each Project is more particularly described on Exhibit A
hereto.

 

“Project
Yield” means the ratio, as of any particular date, expressed as a percentage, of (a) annualized Adjusted Net Operating
Income from the Projects, as determined by Administrative Agent as of such date, to (b) the outstanding principal balance of the
Loan as of such date.

 

“Property
Condition Report” has the meaning assigned in Schedule 2.1.

 

“Property
Manager” means, individually or collectively as the context may require, each Person identified on Exhibit
A as the “Property Manager” of a Project, together with any successor thereto approved by Administrative Agent.

 

“Pro Rata
Outstandings” means, with respect to any Lender at any time, the outstanding principal amount of the Loan owing to
such Lender at such time.

 

“Pro Rata
Share” means, with respect to any Lender at any time (a) on or prior to the Closing Date, the percentage obtained
by dividing (i) the Loan Commitment of such Lender then in effect by (ii) the sum of the Loan Commitments and (b) after the making
of the Loan, the percentage obtained by dividing (i) the Pro Rata Outstandings of such Lender by (ii) the total outstanding principal
amount of the Loan; provided, however, that, if there are no Loan Commitments and no Pro Rata Outstandings, such
Lender’s Pro Rata Share shall be determined based on the Pro Rata Share most recently in effect, after giving effect to any
subsequent assignment and any subsequent non-pro rata payments of any Lender pursuant to the terms of this Agreement.

 

“Prorated
Interest” has the meaning assigned in Section 2.4(b).

 

“Rating
Agencies” means each of Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc., Moody’s
Investors Service, Inc., and Fitch, Inc., or any other nationally-recognized statistical rating agency which has been approved
by Administrative Agent to the extent that any of the foregoing have been or will be engaged by Administrative Agent or its designees.

 

“Rating
Agency Confirmation” means a written affirmation from each of the Rating Agencies (unless otherwise agreed by Administrative
Agent) that an action or event shall not result in the qualification, downgrade or withdrawal of any credit rating by such Rating
Agency.

 

“Recipient”
has the meaning assigned in Section 12.38.

 

    	15

    	 

    

 

“Recourse
Guaranty Agreement” means that certain Guaranty of Recourse Obligations executed by Guarantor, as amended, restated,
supplemented or otherwise modified from time to time.

 

“Register”
has the meaning specified in Section 2.12(b).

  

“Related
Persons” means, with respect to any Person, each of such Person’s Affiliates, officers, directors, employees,
agents, trustees, representatives, attorneys, accountants, and each insurance, environmental, legal, financial and other advisor
and other consultants and agents of or to such Person or any of its Affiliates, together with, if such Person is the Administrative
Agent, each other Person or individual designated, nominated or otherwise mandated by or helping the Administrative Agent pursuant
to and in accordance with Section 11.4 or any comparable provision of any Loan Document.

 

“Replacement
Escrow Fund” has the meaning assigned in Section 2.5.

 

“Replacement
Treasury Yield” means the rate of interest equal to the yield to maturity of the most recently issued U.S. Treasury
security as quoted in the Wall Street Journal on any prepayment date. If the remaining term is less than one year, the Replacement
Treasury Yield will equal the yield for 1-Year Treasury’s. If the remaining term of the Loan is 1-Year, 2-Year, etc., then
the Replacement Treasury Yield will equal the yield for the Treasury’s with a maturity equaling the remaining term. If the
remaining term of the Loan is longer than one year but does not equal one of the maturities being quoted, then the Replacement
Treasury Yield will equal the yield for Treasury’s with a maturity closest to but not exceeding the remaining term. If the
Wall Street Journal (i) quotes more than one such rate, the highest of such quotes shall apply, or (ii) ceases to publish such
quotes, the U.S. Treasury security shall be determined from such financial reporting service or source as Administrative Agent
shall determine.

 

“Reports”
has the meaning assigned in Section 12.38.

 

“Required
Lenders” means, at any time, Lenders whose Pro Rata Shares at such time are in excess of 50% in the aggregate; provided,
however, the Loan Commitment of, and the portion of the Obligations held or deemed held by, any Defaulting Lender shall
be excluded for purposes of making a determination of Required Lenders.

 

“Requirements
of Law” means, with respect to any Person, collectively, the common law and all federal, state, local, foreign, multinational
or international laws, statutes, codes, treaties, standards, rules and regulations, guidelines, ordinances, orders, judgments,
writs, injunctions, decrees (including administrative or judicial precedents or authorities) and the interpretation or administration
thereof by, and other determinations, directives, requirements or requests of, any Governmental Authority, in each case whether
or not having the force of law and that are applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

 

“Residential
Units” means, collectively, (a) each skilled nursing bed, Alzheimer’s unit and/or assisted living unit authorized
under the Primary Licenses and (b) each independent living unit comprising the Projects.

 

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“Restoration
Threshold” means, as of any date, the lesser of (a) two and one-half percent (2.5%) of the replacement value of the
improvements at the affected Project as of such date, and (b) $500,000.00.

 

“Restricted
Party” means Borrower, any Affiliated Manager, Guarantor or any shareholder, partner, member or non-member manager
of Borrower or of any Affiliated Manager, or of any direct or indirect legal or beneficial owner of Borrower, of any Affiliated
Manager or of any shareholder, partner, member or any non-member manager hereof.

 

“Retained
Project” means the Project that is not a Partial Release Project.

 

“Retained
Project Adjusted Expenses” means actual operating expenses (as adjusted by Administrative Agent) related to the Retained
Project on a stabilized accrual basis for the twelve (12) month period ending on a particular date, including: (i) recurring expenses
as determined under GAAP, (ii) real estate taxes, (iii) Insurance Premiums, (iv) management fees (whether paid or not) in an amount
not less than five percent (5%) of effective gross income (or the actual management fee paid, if higher) and (v) a replacement
reserve (whether reserved or not) of not less than Three Hundred Fifty and No/100 Dollars ($350.00) per Residential Unit per annum.

 

“Retained
Project Adjusted Net Operating Income” means the Retained Project Adjusted Revenue less the Retained Adjusted Expenses,
based upon the financial reports provided by Borrowers under Article 7 and approved by Administrative Agent in its reasonable discretion.

 

“Retained
Project Adjusted Revenue” means revenues (as adjusted by Administrative Agent) generated by the operation of the
Retained Project for any particular period, as determined under GAAP, but excluding (a) nonrecurring income and non-property related
income (as determined by Administrative Agent in its sole discretion) and income from tenants that is classified as “bad
debt” under GAAP, and (b) late fees and interest income; provided, however, if actual occupancy of the Retained Project exceeds
95%, Retained Project Adjusted Revenue shall be proportionately reduced assuming an occupancy of 95%.

 

“Retained
Project Debt Service” means, for any particular period, (1) the aggregate interest, fixed principal, and other payments
due during such period under the Loan and under any other permitted Debt relating to the Projects expressly approved by Administrative
Agent (but not including payments applied to escrows or reserves required by Administrative Agent or Lenders) minus (2) the aggregate
interest, fixed principal and other payments due during such period under the Loan that would not have been due had the Partial
Release Price been paid immediately prior to the commencement of such period. In the event that Retained Project Debt Service for
a period of twelve (12) months is not available, Administrative Agent shall annualize the Retained Project Debt Service for such
period of time as is available.

 

“Retained
Project Debt Service Coverage Ratio” means, as of any particular date, the ratio of (i) the Retained Project Adjusted
Net Operating Income for the twelve (12) calendar month period ending on such date, to (ii) Retained Project Debt Service for the
twelve (12) calendar month period ending on such date.

 

    	17

    	 

    

  

“Retained
Project Debt Yield” means the ratio, as of any particular date, expressed as a percentage, of (a) Retained Project
Adjusted Net Operating Income, as determined by Administrative Agent for the twelve (12) calendar month period ending on such date,
to (b) the outstanding principal balance of the Loan (determined on a pro forma basis after deducting the Partial Release Price
therefrom) as of such date.

 

“Sale or
Pledge” means a voluntary or involuntary sale, conveyance, mortgage, grant, bargain, master lease, encumbrance, pledge,
assignment, grant of any options with respect to, or any other transfer or disposition of (directly or indirectly, voluntarily
or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) a legal or beneficial interest.

 

“Secured
Hedge Agreement” means any Hedge Agreement between a Borrower (or Affiliate of Borrower) and a Secured Hedge Provider.

 

“Secured
Hedge Provider” means (i) a Lender or an Affiliate of a Lender (or a Person who was a Lender or an Affiliate of a
Lender at the time of execution and delivery of a Hedge Agreement) who has entered into a Hedge Agreement with any Borrower, or
(ii) a Person with whom Borrower has entered into a Hedge Agreement provided or arranged by GE Capital or an Affiliate of GE Capital,
and any assignee thereof.

 

“Secured
Parties” means the Lenders and the Administrative Agent and each such Person’s Related Persons.

 

“Security”
means all of the real and personal property securing the Obligations described in the Loan Documents and the Secured Hedge Agreements.

 

“Security
Agreement” means, collectively, the Security Agreement(s) executed by Borrower in favor of Administrative Agent (for
itself and on behalf of the Lenders) covering certain personal property described therein, as amended, restated, supplemented or
otherwise modified from time to time.

 

“Security
Deposits” means any and all security deposits and entrance fees from any tenant or occupant of a Project collected
or held by Borrower or any Operator.

 

“Single
Purpose Entity” means a Person (other than an individual, a government or any agency or political subdivision thereof),
which exists solely for the purpose of owning and leasing the Projects, observes corporate, company or partnership formalities,
as applicable, independent of any other entity, and which otherwise complies with the covenants set forth in Section 6.17
hereof.

 

“Site Assessment”
means an environmental engineering report for each Project prepared at Borrower’s expense by an engineer engaged by Borrower
or by Administrative Agent on behalf of Borrower, and approved by Administrative Agent, and in a manner reasonably satisfactory
to Administrative Agent, based upon an investigation relating to and making appropriate inquiries concerning the existence of Hazardous
Materials on or about such Project, and the past or present discharge, disposal, release or escape of any such substances, all
consistent with ASTM Standard E1527-05 (or any successor thereto published by ASTM) and good customary and commercial practice.

 

    	18

    	 

    

  

“Social
Security Act” means 42 U.S.C. 401 et seq., as enacted in 1935, and amended, restated or otherwise supplemented
thereafter from time to time and all rules and regulations promulgated thereunder.

 

“SPE Party”
has the meaning assigned in Section 6.17(d).

 

“Specially
Designated National and Blocked Persons” means those Persons that have been designated by executive order or by the
sanction regulations of OFAC as Persons with whom U.S. Persons may not transact business or must limit their interactions to types
approved by OFAC.

 

“State
Regulator” has the meaning assigned in Section 8.14(a).

 

“Substitute
Lender” has the meaning assigned in Section 2.13(a).

 

“Survey”
has the meaning assigned in Schedule 2.1.

 

“Tax Impound”
has the meaning assigned to such term in Section 3.5.

 

“Taxes”
has the meaning assigned in Section 8.2.

 

“Tenant”
means any tenant or occupant of a Project under a Lease.

 

“Term Sheet”
means that certain letter agreement dated June 1, 2012 from Administrative Agent and accepted by and on behalf of Borrower on June
7, 2012.

 

“Third
Party Payor Programs” means any participation or provider agreements with any third party payor, including Medicare,
Medicaid, TRICARE and any Approved Insurer, and any other private commercial insurance managed care and employee assistance program,
to which Borrower or any Operator may be subject with respect to any Project.

 

“Title
Policy” has the meaning assigned in Schedule 2.1.

 

“Transferee”
has the meaning assigned in Section 8.1(d).

 

“TWEA”
has the meaning assigned in Section 6.19(f).

 

“UCC”
means the Uniform Commercial Code as from time to time in effect in the State of Illinois; provided, however, that,
in the event that, by reason of mandatory provisions of any applicable Requirement of Law, any of the attachment, perfection or
priority of Administrative Agent’s or any other Lender’s security interest in any Collateral is governed by the Uniform
Commercial Code of a jurisdiction other than the State of Illinois, “UCC” shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority
and for purposes of the definitions related to or otherwise used in such provisions.

 

    	19

    	 

    

  

“U.S. Lender
Party” means each of Administrative Agent, the Lenders, and each participant of a Lender, in each case that is a
U.S. Person.

 

“U.S. Person”
means any United States citizen, any entity organized under the laws of the United States or its constituent states or territories,
or any entity, regardless of where organized, having its principal place of business within the United States or any of its territories.

 

“Withholding
Taxes” has the meaning assigned in Section 2.16.

 

“Zoning
Report” has the meaning assigned in Schedule 2.1.

 

Section
1.2.          Definitions. All terms defined in Section
1.1 above or otherwise in this Agreement shall, unless otherwise defined therein, have the same meanings when used in any other
Loan Document or Environmental Indemnity Agreement, or any certificate or other document made or delivered pursuant hereto. The
words “hereof”, “herein”, and “hereunder” and words
of similar import when used in this Agreement shall refer to this Agreement as a whole. The words “include”
and “include(s)” when used in this Agreement and the other Loan Documents or Environmental Indemnity
Agreement means “include(s), without limitation,” and the word “including”
means “including, but not limited to.”

 

Section
1.3.          Phrases. When used in this Agreement and
the other Loan Documents or Environmental Indemnity Agreement, the phrases “satisfactory to Administrative Agent,”
“satisfactory to Lenders,” and “satisfactory to Required Lenders” shall mean
“in form and substance satisfactory to the applicable Person in all respects”, the phrases “with
Administrative Agent’s consent,” “with the Lenders’ consent,” and “with
the Required Lenders’ consent,” or “with Administrative Agent’s approval,”
“with the Lenders’ approval,” and “with the Required Lenders’ approval”
shall mean such consent or approval at such Person’s sole discretion, and the phrases “acceptable to Administrative
Agent,” “acceptable to Lenders,” and “acceptable to the Required Lenders”
shall mean “acceptable to such Person at such Person’s sole discretion” unless otherwise specified
in this Agreement.

 

ARTICLE
II

 

LOAN
TERMS

 

Section
2.1.          The Loan. Upon satisfaction of all the
terms and conditions set forth in the Term Sheet and Schedule 2.1 attached hereto, each Lender severally, but not
jointly, agrees to make its Pro Rata Share of the Loan in Dollars to Borrower in the amount of such Lender’s Loan Commitment,
which shall be funded in one advance on the Closing Date and repaid in accordance with the terms of this Agreement and the Notes.
Each Borrower hereby agrees to accept the Loan on the Closing Date, subject to and upon the terms and conditions set forth herein.

 

    	20

    	 

    

  

Section
2.2.          Interest Rate; Late Charge; Default Rate.

 

(a)          Interest
Rate. The outstanding principal balance of the Loan shall bear interest, commencing on the Closing Date, at a floating
rate of interest equal to the Contract Rate.

 

(b)          Late
Charge. If any Borrower fails to pay any installment of interest or principal within five (5) days after the date on which
the same is due excluding the final installment due on the Maturity Date, Borrower shall pay to Administrative Agent, for the account
of the Lenders (other than any Defaulting Lender), a late charge on such past due amount, as liquidated damages and not as a penalty,
equal to five percent (5%) of such amount, but not in excess of the maximum amount of interest allowed by applicable law. The Administrative
Agent shall pay to each Lender (other than any Defaulting Lender) of the Loan its portion of the late charge based on each Lender’s
Pro Rata Share of the Loan in accordance with Section 2.6. The foregoing late charge is intended to compensate each Lender
for the expenses incident to handling any such delinquent payment and for the losses incurred by each Lender as a result of such
delinquent payment. Borrower agrees that, considering all of the circumstances existing on the date this Agreement is executed,
the late charge represents a reasonable estimate of the costs and losses each Lender will incur by reason of late payment. Borrower
and each Lender further agree that proof of actual losses would be costly, inconvenient, impracticable and extremely difficult
to fix. Acceptance of the late charge shall not constitute a waiver of the Event of Default arising from the overdue installment,
and shall not prevent any Lender from exercising any other rights or remedies available to such Lender with respect to such Event
of Default.

 

(c)          Default
Rate. While any Event of Default exists, the Loan shall bear interest at the Default Rate.

 

Section
2.3.          Terms of Payment. The Loan shall be payable
as follows:

 

(a)          Principal
and Interest.

 

(i)          Commencing
on October 1, 2012, and continuing on each Payment Date thereafter during the Interest Only Period, Borrower shall pay to Administrative
Agent for the account of the Lenders (other than a Defaulting Lender), interest only in arrears computed at the Contract Rate on
the outstanding principal balance of the Loan.

 

(ii)         Thereafter,
commencing on October 1, 2013, and continuing on each Payment Date thereafter through and including the Payment Date immediately
prior to the Maturity Date, Borrower shall pay to Administrative Agent for the account of the Lenders (other than a Defaulting
Lender) (A) interest in arrears computed at the Contract Rate on the outstanding principal balance of the Loan and (B)
installments of principal in accordance with the amortization schedule attached hereto as Schedule 2.3(a). Each of
such payments shall be applied (i) to the payment of interest computed at the Contract Rate and (ii) the balance applied
toward reduction of the principal sum. The constant payment required hereunder is based on a twenty-five (25) year amortization
schedule with an assumed interest rate of 6.0% per annum.

 

(b)          Maturity.
On the Maturity Date, Borrower shall pay to Administrative Agent, for the account of the Lenders (other than a Defaulting Lender),
all outstanding principal, accrued and unpaid interest, default interest, late charges, the Acceleration Prepayment Premium (if
applicable) and any and all other amounts due under the Loan Documents.

 

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Section
2.4.          Prepayment.

 

(a)          Lock-Out
Period. Except as set forth herein, the Loan is closed to prepayment in whole or in part. Notwithstanding the foregoing,
the Loan may be prepaid in whole, but not in part, at any time following the expiration of the Lockout Period without payment of
any Acceleration Prepayment Premium, provided Borrower pays with such prepayment all accrued interest and all other outstanding
amounts then due and unpaid under the Loan Documents.

 

(b)          Reserved.

 

(c)          Prepayment
Not Made on a Payment Date. If for any reason the Loan or any portion thereof is prepaid on a day other than a scheduled
monthly Payment Date, interest shall be prorated through the date of prepayment (the “Prorated Interest”).
On the prepayment date, Borrower shall pay to Administrative Agent, for the account of Lenders, the outstanding principal balance
of the Loan, Prorated Interest and Libor Breakage Amount, and any other amounts, if any, required under this Agreement.

 

(d)          Involuntary
Prepayment. If the Loan is accelerated for any reason other than casualty or condemnation, and the Loan is otherwise closed
to prepayment, Borrower shall pay to Administrative Agent, for the account of the Lenders, in addition to all other amounts outstanding
under the Loan Documents, a prepayment premium equal to the sum of (i) the Libor Breakage Amount and (ii) two percent (2%) of the
outstanding balance of the Loan (the “Acceleration Prepayment Premium”).

 

(e)          Prepayment
Due to Casualty or Condemnation. In the event of a prepayment resulting from the application of insurance or condemnation
proceeds pursuant to Article 3 hereof, no prepayment penalty or premium shall be imposed.

 

(f)          Character
of Acceleration Prepayment Premium.  The Acceleration Prepayment Premium does not constitute a penalty, but rather represents
the reasonable estimate, agreed to between Borrower and each Lender, of fair compensation for the loss that may be sustained by
such Lender due to the payment of the principal Indebtedness prior to the Maturity Date and/or the increased cost and expense to
such Lender resulting from an acceleration of the Loan. Any Acceleration Prepayment Premium shall be paid without prejudice to
the right of any Lender to collect on its behalf any of the amounts owing under the Note, this Loan Agreement or the other Loan
Documents or otherwise, to enforce any of its rights or remedies arising out of an Event of Default.

 

(g)          Partial
Prepayment. If, notwithstanding Section 2.4(a), Administrative Agent permits the Loan to be prepaid in part, Borrower
shall pay, in addition to the principal amount prepaid, pro-rated interest on the amount of such prepayment plus any Libor Breakage
Amount applicable to such principal being prepaid. Partial prepayments may be made from time to time following the expiration of
the Lockout Period to the extent permitted under Section 2.17.

 

Section
2.5.          Security; Establishment of Funds.

 

(a)          Security.
The Loan shall be secured by the Mortgage creating a first lien on the Projects, the Assignment of Leases and Rents and the other
Loan Documents.

 

    	22

    	 

    

  

(b)          Establishment
of Replacement Escrow Fund; Disbursement of Funds.

 

(i)          Borrower
shall deposit with Administrative Agent on each Payment Date, the product of Thirty Dollars ($30) multiplied by the number of Residential
Units in the Projects, which shall be held by Administrative Agent for replacements and repairs required to be made to the Projects
during the term of the Loan (the “Replacement Escrow Fund”).

 

(ii)         Administrative
Agent shall make disbursements from the Replacement Escrow Fund as requested by Borrower, and approved by Administrative Agent
in its reasonable discretion, on a monthly basis in increments of no less than $5,000.00 upon delivery by Borrower of Administrative
Agent’s standard form of draw request accompanied by copies of paid invoices for the amounts requested and, if required by
Administrative Agent, lien waivers and releases from all parties furnishing materials and/or services in connection with the requested
payment. Administrative Agent may require an inspection of the Projects at Borrower’s expense prior to making a monthly disbursement
in order to verify completion of replacements and repairs for which reimbursement is sought.

 

(c)          Establishment
of HUD Fund. If, on or before September 13, 2013, Borrower provides Administrative Agent with a HUD Commitment, then Administrative
Agent shall place, following receipt thereof, the scheduled installment of principal due and payable with respect to the Loan on
October 1, 2013, into a reserve (the “HUD Fund”) in lieu of releasing such installment to Lenders for
application to the outstanding principal balance of the Loan, provided the HUD Conditions are satisfied on such date. Commencing
on September 1, 2013, and continuing thereafter through and including September 1, 2014, Administrative Agent, following receipt
of each scheduled installment of principal due and payable with respect to the Loan, shall place such payment into the HUD Fund,
provided the HUD Conditions are satisfied on such date. If, on or before September 12, 2014, the Obligations are repaid in full,
the funds contained in the HUD Fund shall be released to Borrower in connection with such repayment. If the Obligations are not
repaid in full on or before September 12, 2014, or if at any time the HUD Conditions cease to be satisfied, the funds then contained
in the HUD Fund shall be released to Lenders and applied to the outstanding principal balance of the Loan on October 1, 2014 or,
if sooner, at any time following the date upon which the HUD Conditions cease to be satisfied. For avoidance of doubt, the outstanding
principal balance of the Loan, unreduced by the funds contained in HUD Fund, shall bear interest in accordance with Section
2.2.

 

(d)          Establishment
of Master Lease Fund. Each Borrower hereby agrees to the establishment of a reserve for each Project (each, a “Master
Lease Fund”), into which, during any period in which a Project is not in compliance with the “Minimum Rent
Coverage” (as defined under the Master Lease applicable to such Project) specified for such Project in the applicable Master
Lease, the applicable Borrower shall deposit an amount equal to the additional monthly deposit required under such Master Lease
to be deposited with Borrower by the Master Tenant thereunder. Upon such time as the applicable Borrower delivers evidence reasonably
satisfactory to Administrative Agent (and Administrative Agent confirms to its reasonable satisfaction) that such Project has been
in compliance with the “Minimum Rent Coverage” applicable thereto for a period of six (6) consecutive months, and provided
no Event of Default is then in existence, the funds contained in the applicable Master Lease Fund shall be released to the applicable
Borrower (or, at the option of Administrative Agent, directly to the applicable Master Tenant).

 

    	23

    	 

    

  

(e)          Funds,
Generally; Pledge of Security Interest. Borrower hereby pledges to Administrative Agent and the Lenders, and grants a security
interest in, any and all monies now or hereafter deposited in the Funds as additional security for the payment of the Loan. Administrative
Agent shall hold the Funds, and any and all other impounds or reserves otherwise provided for in this Agreement, for the benefit
of all Lenders. The Lenders and Borrower acknowledge and agree that the Funds may be commingled with Administrative Agent’s
own funds at financial institutions selected by Administrative Agent in its reasonable discretion and, except as otherwise expressly
provided herein, shall be held without interest in Administrative Agent’s name. Upon the occurrence of an Event of Default,
Administrative Agent may (and at the direction of the Required Lenders shall) apply any sums then present in the Funds to the payment
of the Loan in any order in the reasonable discretion of Administrative Agent. Until expended or applied as above provided, the
Funds shall constitute additional security for the Loan. Administrative Agent shall have no obligation to release any of the Funds
while any Event of Default or Potential Default exists or any Material Adverse Change has occurred in Borrower or any Borrower
Party or the Projects. All costs and expenses reasonably incurred by Administrative Agent in the disbursement of any of the Funds
shall be paid by Borrower promptly upon demand or, at Administrative Agent’s sole discretion, deducted from the Funds.

 

Section
2.6.          Application of Payments. 

 

(a)          Waterfall.
Prior to the occurrence of an Event of Default, all payments received by Administrative Agent under the Loan Documents shall be
applied, (i) first, to pay Obligations in respect of any cost or expense reimbursements, fees or indemnities then due to
the Administrative Agent pursuant to this Agreement or any Loan Document, (ii) second, to pay interest then due and payable
to the Lenders (other than a Defaulting Lender) calculated at the Contract Rate, (iii) third, to pay Obligations in respect
of any cost or expense reimbursements, fees or indemnities then due to the Lenders (other than a Defaulting Lender) in respect
of the Loan pursuant to this Agreement or any Loan Document, (iv) fourth, subject to Section 2.5(b), to principal
payments due under the Loan owing to the Lenders (other than a Defaulting Lender) and to the Obligations under the Secured Hedge
Agreements, (v) fifth, to any reserves, escrows or other impounds required to be maintained pursuant to the Loan Documents,
(vi) sixth, to the ratable payment of all other Obligations (other than Obligations owing to a Defaulting Lender); and (vii)
seventh, to repay all other Obligations owing to a Defaulting Lender. Upon the occurrence of an Event of Default, all payments
shall be applied in such order as the Administrative Agent shall determine in its sole discretion. Notwithstanding anything herein
to the contrary, if at any time following an Event of Default or acceleration of the Obligations or on or after the Maturity Date,
the Administrative Agent applies any payments received or the proceeds of any Collateral to principal payments on the Loan, the
Administrative Agent shall apply such payments or proceeds pro rata between such principal payments on the Loan and the Obligations
under the Secured Hedge Agreements based on the outstanding principal balance of the Loan and the Obligations under Secured Hedge
Agreements.

 

    	24

    	 

    

  

(b)          Application
of Payments Generally. All repayments of the Loan shall be applied to reduce ratably the remaining installments of such
outstanding principal amounts of the Loan in the inverse order of maturity. If sufficient amounts are not available to repay all
outstanding Obligations described in any priority level set forth in this Section 2.6, the available amounts shall be applied,
unless otherwise expressly specified herein, to such Obligations ratably based on the proportion of the Secured Parties’
interest in such Obligations. Any priority level set forth in this Section 2.6 that includes interest shall include all
such interest, whether or not accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization
or similar proceeding, and whether or not a claim for post-filing or post-petition interest is allowed in any such proceeding.
All prepayments of principal shall be applied in the inverse order of maturity.

 

(c)          Payments
and Computations.  Borrower shall make each payment under any Loan Document not later than 1:00 p.m. (Eastern Standard
or Daylight Savings time) on the day when due to the Administrative Agent by wire transfer or Automated Clearing House (“ACH”)
transfer (which shall be the exclusive means of payment hereunder) to the following account (or at such other account or by such
other means to such other address as the Administrative Agent shall have notified Borrower in writing within a reasonable time
prior to such payment) in immediately available Dollars and without setoff or counterclaim:

 

	Bank:	Deutsche Bank Trust Co.
	 	New York, New York
	ABA No.:	021001033
	Account Number:	50-256-477
	Account Name:	GE HFS - GEMSA
	Reference:	Cornerstone Portfolio

  

The Administrative Agent
shall promptly thereafter cause to be distributed immediately available funds relating to the payment of principal, interest or
fees to the Lenders, in accordance with the application of payments set forth in Section 2.6(a) on the same Business Day
as funds are deemed received. Payments received by the Administrative Agent after 1:00 p.m. (Eastern Standard or Daylight Savings
time) shall be deemed to be received on the next Business Day.

 

(d)          Computations
of Interest and Fees. All computations of interest and of fees shall be made by the Administrative Agent on the basis of
a fraction, the denominator of which is three hundred sixty (360) and the numerator of which is the actual number of days elapsed
from the Closing Date or the date of the preceding Payment Date, as the case may be, to the date of the next Payment Date or the
Maturity Date. Each determination of an interest rate or the amount of a fee hereunder shall be made by the Administrative Agent
and shall be conclusive, binding and final for all purposes, absent manifest error.

 

(e)          Payment
Dates. Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, the due date for such
payment shall be extended to the next succeeding Business Day without any increase in such payment as a result of additional interest
or fees.

 

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(f)          Advancing
Payments. Unless the Administrative Agent shall have received notice from Borrower prior to the date on which any payment
is due hereunder that Borrower will not make such payment in full, the Administrative Agent may assume that Borrower has made such
payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause
to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent that
Borrower shall not have made such payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent
on demand such amount distributed to such Lender together with interest thereon (at the Contract Rate) for each day from the date
such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent.

 

Section
2.7.          Sources and Uses. The sources and uses
of funds for the contemplated transaction are as described on Schedule 2.7 attached hereto. Borrower shall deliver
such information and documentation as Administrative Agent shall request to verify that the sources and uses are as indicated on
Schedule 2.7. A reduction in the amounts necessary for any of the uses may, at Administrative Agent’s election,
shall result in an equal reduction in the amount of the Loan. The proceeds of the Loan are intended and will be used for agricultural,
business and/or commercial purposes and are not intended and will not be used for personal, family or household purposes.

 

Section
2.8.          Capital Adequacy; Increased Costs; Illegality.

 

(a)          If
any Lender determines that any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or order regarding
capital adequacy, reserve requirements or similar requirements or compliance by such Lender with any request or directive regarding
capital adequacy, reserve requirements or similar requirements (whether or not having the force of law), in each case, adopted
after the Closing Date, from any central bank or other Governmental Authority increases or would have the effect of increasing
the amount of capital, reserves or other funds required to be maintained by Lender and thereby reducing the rate of return on such
Lender's capital as a consequence of its obligations hereunder, then Borrower shall from time to time upon demand by such Lender,
pay to Lender, additional amounts sufficient to compensate Lender for such reduction. A certificate as to the amount of that reduction
and showing the basis of the computation thereof submitted by the affected Lender to Borrower shall, absent manifest error, be
final, conclusive and binding for all purposes. Each Lender agrees that, as promptly as practicable after it becomes aware of any
circumstances referred to above which would result in any such increased cost, such Lender shall, to the extent not inconsistent
with such Lender's internal policies of general application, use reasonable commercial efforts to minimize costs and expenses incurred
by it and payable to it by Borrower pursuant to this Section 2.8(a).

 

(b)          If,
due to either (i) the introduction of or any change in any law or regulation (or any change in the interpretation thereof) (other
than changes in income taxes) or (ii) the compliance with any guideline or request from any central bank or other Governmental
Authority (whether or not having the force of law), in each case adopted after the Closing Date, there shall be any increase in
the cost to any Lender of agreeing to make or making, funding or maintaining the Loan, then Borrower shall from time to time, upon
demand by such Lender, pay to such Lender, additional amounts sufficient to compensate such Lender for such increased cost. A certificate
as to the amount of such increased cost, submitted to Borrower by such Lender, shall be conclusive and binding on Borrower for
all purposes, absent manifest error. Each Lender agrees that, as promptly as practicable after it becomes aware of any circumstances
referred to above which would result in any such increased cost, such Lender shall, to the extent not inconsistent with such Lender's
internal policies of general application, use reasonable commercial efforts to minimize costs and expenses incurred by it and payable
to it by Borrower pursuant to this Section 2.8(b).

 

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(c)          Notwithstanding
anything to the contrary contained herein, if the introduction of or any change in any law or regulation (or any change in the
interpretation thereof) shall make it unlawful, or any central bank or other Governmental Authority shall assert that it is unlawful,
for any Lender to agree to make or to make or to continue to fund or maintain any Loan bearing interest computed by reference to
the Libor Rate, then, unless such Lender is able to make or to continue to fund or to maintain the Loan at another office of such
Lender without, in such Lender's opinion, adversely affecting it or its Loan or the income obtained therefrom, on notice thereof
and demand therefor by such Lender to Borrower, (i) the obligation of such Lender to agree to make or to make or to continue to
fund or maintain the Loan shall terminate and (ii) Borrower shall prepay in full such Lender’s Pro Rata Share of the Loan,
together with interest accrued thereon, but without payment of any Acceleration Prepayment Premium, within thirty (30) days following
such Lender's demand for payment unless such Lender determines a replacement index and spread to approximate the Contract Rate
before such change in law or regulation. Each Lender will use its best efforts to determine such replacement index and spread and
will notify Borrower of the index and spread to be used and the same shall be applied to the Loan effective as of the date such
Lender determined that the Libor Rate was no longer available.

 

(d)          Notwithstanding
anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines
or directives thereunder or issued in connection therewith shall be deemed to be a change in a Requirement of Law under subsection
(b) above and/or a change in capital adequacy requirements under subsection (a) above, as applicable, regardless of the date enacted,
adopted or issued.

 

Section
2.9.          Interest Rate Protection. Borrower, at
its sole cost and expense, may obtain and maintain, at its option and otherwise in compliance with this Section, an interest rate
cap for the benefit of Borrower pursuant to one or more Hedge Agreements reasonably satisfactory to the Administrative Agent. The
Hedge Agreement shall, at Administrative Agent’s request, be collaterally assigned to Administrative Agent (for the benefit
of Lenders). Any such Hedge Agreement shall be provided by either Administrative Agent or any Lender (or an Affiliate of such Person)
or a bank or other financial institution whose long-term debt rating is equal to or greater than “A”.
Upon repayment of the Obligations in full, Administrative Agent shall assign the Hedge Agreement back to Borrower or an Affiliate
of Borrower. Except in connection with a Secured Hedge Agreement, the Projects shall not be pledged or encumbered in any manner
to secure any obligation under the Hedge Agreement. Borrower shall not enter into any interest rate swap agreement, interest rate
cap agreement, interest rate collar agreement or other similar agreement pertaining to fluctuations in interest rates, or any swaps,
caps or collar agreements or similar arrangements providing for protection against fluctuations in currency exchange rates, either
generally or under specific contingencies, other than the Hedge Agreement contemplated by this Section 2.9, and not for
speculative purposes.

 

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Section
2.10.         Libor Breakage Amount. Upon any payment of
the Loan (or any portion thereof) on any day that is not the last day of the Libor Interest Period applicable thereto (regardless
of the source of such prepayment and whether voluntary, by acceleration or otherwise), Borrower shall pay to Administrative Agent,
for the account of Lenders (other than a Defaulting Lender) the Libor Breakage Amount. For purposes of calculating the Libor Breakage
Amount payable to a Lender under this Section 2.10, each Lender shall be deemed to have actually funded the Loan through
the purchase of a deposit bearing interest at the Libor Rate in an amount equal to the amount of the Loan and having a maturity
and repricing characteristics comparable to the relevant Libor Interest Period; provided, however, that each Lender
may fund its Pro Rata Share of the Loan in any manner it sees fit, and the foregoing assumption shall be utilized only for the
calculation of amounts payable under this Section 2.10.

 

Section
2.11.         [Reserved].

 

Section
2.12.         Evidence of Debt.

 

(a)          Records
of Lenders. Each Lender shall maintain in accordance with its usual practice accounts evidencing the Indebtedness of Borrower
to each Lender resulting from the Pro Rata Share of the Loan of such Lender from time to time outstanding, including the amounts
of principal and interest payable and paid to such Lender from time to time under this Agreement. In addition, with respect to
each Lender having sold a participation interest in any of the Obligations owing to it, such Lender, acting as agent of Borrower
solely for this purpose and solely for tax purposes, shall establish and maintain at its address referred to in Section 12.1
(or at such other address as Administrative Agent shall notify Borrower) a record of ownership, in which such Lender shall register
by book entry (A) the name and address of each such participant (and each change thereto, whether by assignment or otherwise) and
(B) the rights, interest or obligation of each such participant in any Obligation owing to such Lender, in any Loan Commitment
or any portion of the Loan and in any right of such Lender to receive any payment hereunder.

 

(b)          Records
of Administrative Agent. The Administrative Agent, acting as agent of Borrower solely for tax purposes and solely with
respect to the actions described in this Section 2.12, shall establish and maintain at its address referred to in Section
12.1 (or at such other address as the Administrative Agent may notify Borrower) (i) a record of ownership (the “Register”)
in which the Administrative Agent agrees to register by book entry the interests (including any rights to receive payment hereunder)
of each Lender in the Loan and the Pro Rata Outstandings, and any assignment of any such interest, obligation or right and (ii)
accounts in the Register in accordance with its usual practice in which it shall record (A) the names and addresses of the Lenders
(and each change thereto pursuant to Section 2.13 (Substitution of Lenders) and Section 12.3 (Assignments and Participations;
Binding Effect)), (B) the Loan Commitments of each Lender, (C) the amount of each of the Pro Rata Outstandings and any assignment
of a Lender’s Pro Rata Share of the Loan, (D) the amount of any principal or interest due and payable or paid, and (E) any
other payment received by the Administrative Agent from Borrower and its application to the Obligations.

 

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(c)          Registered
Obligations. Notwithstanding anything to the contrary contained in this Agreement, the Loan (including any Notes evidencing
the Loan) shall constitute a registered obligation, the right, title and interest of the Lenders and their assignees in and to
the Loan shall be transferable only upon notation of such transfer in the Register and no assignment thereof shall be effective
until recorded therein. This Section 2.12 and Section 12.3 shall be construed so that the Loan is at all times maintained
in “registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any
related regulations (and any successor provisions).

 

(d)          Prima
Facie Evidence. The entries made in the Register and in the accounts maintained pursuant to clauses (a) and (b)
of this Section 2.12 shall, to the extent permitted by applicable Requirements of Law, be prima facie evidence of the existence
and amounts of the obligations recorded therein; provided, however, that no error in such account and no failure
of any Lender or the Administrative Agent to maintain any such account shall affect the obligations of Borrower or any Borrower
Party to repay the Loan in accordance with its terms. In addition, Borrower, the Administrative Agent, and the Lenders shall treat
each Person whose name is recorded in the Register as a Lender for all purposes of this Agreement. Information contained in the
Register with respect to any Lender shall be available for access by Borrower, the Administrative Agent and such Lender at any
reasonable time and from time to time upon reasonable prior notice. No Lender shall have access to or be otherwise permitted to
review any information in the Register other than information with respect to such Lender unless otherwise agreed by the Administrative
Agent.

 

Section
2.13.         Substitution of Lenders. 

 

(a)          In
the event that any Lender that is not an Affiliate of the Administrative Agent (an “Affected Lender”),
(i) makes a claim under Section 2.8 or notifies Borrower and the Administrative Agent pursuant to Section 2.8 that
it becomes illegal for such Lender to continue to fund or maintain its Pro Rata Share of the Loan using the Libor Rate or (ii)
does not consent to any amendment, waiver or consent to any Loan Document for which the consent of the Required Lenders is obtained
but that requires the consent of other Lenders, Borrower may, without regard to the Lock Out Period, either pay in full such Affected
Lender with respect to amounts due with the consent of the Administrative Agent or substitute for such Affected Lender any Lender
or any Affiliate or Approved Fund of any Lender or any other Person acceptable (which acceptance shall not be unreasonably withheld
or delayed) to the Administrative Agent (in each case, a “Substitute Lender”).

 

(b)          To
substitute such Affected Lender or pay in full the Obligations owed to such Affected Lender, Borrower shall deliver a notice to
the Administrative Agent and such Affected Lender. The effectiveness of such payment or substitution shall be subject to the delivery
to the Administrative Agent by Borrower (or, as may be applicable in the case of a substitution, by the Substitute Lender) of (i)
payment for the account of such Affected Lender, of, to the extent accrued through, and outstanding on, the effective date for
such payment or substitution, all Obligations owing to such Affected Lender (including those that will be owed because of such
payment and all Obligations that would be owed to such Lender if it was solely a Lender), and (ii) in the case of a substitution,
(A) payment of the assignment fee set forth in Section 12.3 and (B) an assumption agreement in form and substance satisfactory
to the Administrative Agent whereby the Substitute Lender shall, among other things, agree to be bound by the terms of the Loan
Documents and assume the Loan Commitment of the Affected Lender.

 

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(c)          Upon
satisfaction of the conditions set forth in clause (b) above, the Administrative Agent shall record such substitution or
payment in the Register, whereupon (i) in the case of any payment in full, such Affected Lender’s Loan Commitments shall
be terminated and (ii) in the case of any substitution, (A) the Affected Lender shall sell and be relieved of, and the Substitute
Lender shall purchase and assume, all rights and claims of such Affected Lender under the Loan Documents with respect to the Loan,
except that the Affected Lender shall retain such rights expressly providing that they survive the repayment of the Obligations
and the termination of the Loan Commitments, (B) the Substitute Lender shall become a “Lender” hereunder
having a Loan Commitment in the amount of such Affected Lender’s Loan Commitment and (C) the Affected Lender shall execute
and deliver to the Administrative Agent an Assignment to evidence such substitution and deliver any Note in its possession; provided,
however, that the failure of any Affected Lender to execute any such Assignment or deliver any such Note shall not render
such sale and purchase (or the corresponding assignment) invalid.

 

Section
2.14.         Defaulting Lenders.

 

(a)          Cure
of Defaulting Lender Status.  A Defaulting Lender may regain its status as a non-defaulting Lender hereunder upon satisfaction
of each of the following conditions, as applicable: (i) payment by such Defaulting Lender of all amounts owing hereunder (whether
to the Administrative Agent for indemnity purposes or otherwise); (ii) receipt by Administrative Agent of (A) a written revocation
by Defaulting Lender of any written notice by Defaulting Lender to Borrower, Administrative Agent, or any other Lender that such
Defaulting Lender will fail to fund under this Agreement, or (B) evidence satisfactory to Administrative Agent (in consultation
with the Required Lenders) that such Defaulting Lender has publicly revoked any public announcement of the same; (iii) evidence
satisfactory to Administrative Agent (in consultation with the Required Lenders) that such Defaulting Lender is no long in default
for failing to make payments under one or more syndicated credit facilities; and (iv) evidence satisfactory to Administrative Agent
(in consultation with the Required Lenders) that such Defaulting Lender (or the holding company of such Defaulting Lender) is no
longer the subject of a bankruptcy proceeding and is not otherwise involved in any liquidation proceeding, and Administrative Agent
has determined such Defaulting Lender is able to meet its obligations hereunder.

 

(b)          Right
of Offset.  Anything herein to the contrary notwithstanding, upon receipt of any payment from Borrower hereunder for the
account of the Lenders, Administrative Agent may, in its discretion, offset against a Defaulting Lender’s Pro Rata Share
of such payment, the amount of any unfunded reimbursement obligations of such Defaulting Lender.

 

(c)          Replacement
of Defaulting Lender. If any Lender is a Defaulting Lender, the Administrative Agent may, upon notice to such Lender and
Borrower, replace such Lender by causing such Lender to assign its Loan (with the related assignment fee to be paid by such Defaulting
Lender) pursuant to Section 12.3 to one or more Persons eligible under such Section procured by the Administrative Agent.
Borrower shall pay in full all principal, interest, fees and other amounts owing to such Defaulting Lender through the date of
replacement. Any Defaulting Lender being replaced under this Section 2.14(c) shall execute and deliver an Assignment with
respect to such Lender’s Loan.

 

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Section
2.15.         Fees and Expenses. Borrower agrees to pay to
the Administrative Agent for the benefit of the Lenders the fees and expenses provided in the Term Sheet.

 

Section
2.16.         Withholding Taxes.

 

(a)          Payments
Free and Clear of Withholding Taxes.  Except as otherwise provided in this Section 2.16, each payment by Borrower
under any Loan Document shall be made free and clear of all present or future taxes, levies, imposts, deductions, charges or withholdings
and all liabilities with respect thereto (and without deduction for any of them) (collectively, but excluding the taxes set forth
in clauses (i) and (ii) below, the “Withholding Taxes”) other than for (i) taxes measured
by net income (including branch profits taxes) and franchise taxes imposed in lieu of net income taxes, in each case imposed on
any Lender as a result of a connection between such Lender and the jurisdiction of the Governmental Authority imposing such tax
or any political subdivision or taxing authority thereof or therein (other than such connection arising solely from any Lender
having executed, delivered or performed its obligations or received a payment under, or enforced, any Loan Document) or (ii) taxes
that are directly attributable to the failure (other than as a result of a change in any Requirement of Law) by any Lender to deliver
the documentation required to be delivered pursuant to clause (f) below.

 

(b)          Gross-Up.
If any Withholding Taxes shall be required by law to be deducted from or in respect of any amount payable under any Loan Document
to any Lender (i) such amount shall be increased as necessary to ensure that, after all required deductions for Withholding Taxes
are made (including deductions applicable to any increases to any amount under this Section 2.16), such Lender receives
the amount it would have received had no such deductions been made, (ii) Borrower shall make such deductions, (iii) the relevant
Lender shall timely pay the full amount deducted to the relevant taxing authority or other authority in accordance with applicable
Requirements of Law and (iv) within 30 days after such payment is made, Borrower shall deliver to Administrative Agent an original
or certified copy of a receipt evidencing such payment; provided, however, that no such increase shall be made with
respect to, and Borrower shall not be required to indemnify any such Lender pursuant to clause (d) below for, Withholding
Taxes to the extent that the obligation to withhold amounts existed on the date that such Lender became a “Lender”
under this Agreement in the capacity under which such Lender makes a claim under this clause (b), except in each case to
the extent such Lender is a direct or indirect assignee (other than pursuant to Section 2.13 (Substitution of Lenders))
of any other Lender that was entitled, at the time the assignment of such other Lender became effective, to receive additional
amounts under this clause (b).

 

(c)          Other
Taxes. In addition, Borrower agrees to pay or cause to be paid, and authorizes Administrative Agent to pay in its name,
any stamp, documentary, excise or property tax, charges or similar levies imposed by any applicable Requirement of Law or Governmental
Authority and all Liabilities with respect thereto (including by reason of any delay in payment thereof), in each case arising
from the execution, delivery or registration of, or otherwise with respect to, any Loan Document or any transaction contemplated
therein (collectively, “Other Taxes”). Within thirty (30) days after the date of any payment of Withholding
Taxes or Other Taxes by Borrower, Borrower shall furnish to Administrative Agent, at its address referred to in Section 12.1,
the original or a certified copy of a receipt evidencing payment thereof.

 

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(d)          Indemnification.
Borrower shall reimburse and indemnify, within thirty (30) days after receipt of demand therefor (with copy to Administrative Agent),
each Lender for all Withholding Taxes and Other Taxes (including any Withholding Taxes and Other Taxes imposed by any jurisdiction
on amounts payable under this Section 2.16) paid by such Lender and any Liabilities arising therefrom or with respect thereto,
whether or not such Withholding Taxes or Other Taxes were correctly or legally asserted. A certificate of the Lender (or of Administrative
Agent on behalf of such Lender) claiming any compensation under this clause (d), setting forth the amounts to be paid thereunder
and delivered to Borrower with copy to Administrative Agent, shall be conclusive, binding and final for all purposes, absent manifest
error. In determining such amount, Administrative Agent and such Lender may use any reasonable averaging and attribution methods.

 

(e)          Mitigation.
 Any Lender claiming any additional amounts payable pursuant to this Section 2.16 shall use its reasonable efforts (consistent
with its internal policies and Requirements of Law) to change the jurisdiction of its lending office if such a change would reduce
any such additional amounts (or any similar amount that may thereafter accrue) and would not, in the sole determination of such
Lender, be otherwise disadvantageous to such Lender.

 

(f)          Tax
Forms. 

 

(i)          Each
Non-U.S. Lender Party that, at any of the following times, is entitled to an exemption from United States withholding tax or, after
a change in any Requirement of Law, is subject to such withholding tax at a reduced rate under an applicable tax treaty, shall
(w) on or prior to the date such Non-U.S. Lender Party becomes a “Non-U.S. Lender Party” hereunder, (x)
on or prior to the date on which any such form or certification expires or becomes obsolete, (y) after the occurrence of any event
requiring a change in the most recent form or certification previously delivered by it pursuant to this clause (i) and (z)
from time to time if requested by Borrower or Administrative Agent (or, in the case of a participant, the relevant Lender), provide
Administrative Agent and Borrower (or, in the case of a participant, the relevant Lender) with two completed originals of each
of the following, as applicable: (A) Forms W-8ECI (claiming exemption from U.S. withholding tax because the income is effectively
connected with a U.S. trade or business), W-8BEN (claiming exemption from, or a reduction of, U.S. withholding tax under an income
tax treaty) or any successor forms, (B) in the case of a Non-U.S. Lender Party claiming exemption under Sections 871(h) or 881(c)
of the Code, Form W-8BEN (claiming exemption from U.S. withholding tax under the portfolio interest exemption) or any successor
form and a certificate in form and substance acceptable to Administrative Agent that such Non-U.S. Lender Party is not (1) a “bank”
within the meaning of Section 881(c)(3)(A) of the Code, (2) a “10 percent shareholder” of Borrower within
the meaning of Section 881(c)(3)(B) of the Code or (3) a “controlled foreign corporation” described in
Section 881(c)(3)(C) of the Code or (C) any other applicable document prescribed by the IRS certifying as to the entitlement of
such Non-U.S. Lender Party to such exemption from United States withholding tax or reduced rate with respect to all payments to
be made to such Non-U.S. Lender Party under the Loan Documents. Unless Borrower and Administrative Agent have received forms or
other documents satisfactory to them indicating that payments under any Loan Document to or for a Non-U.S. Lender Party are not
subject to United States withholding tax or are subject to such tax at a rate reduced by an applicable tax treaty, Borrower and
Administrative Agent shall withhold amounts required to be withheld by applicable Requirements of Law from such payments at the
applicable statutory rate.

 

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(ii)         Each
U.S. Lender Party shall (A) on or prior to the date such U.S. Lender Party becomes a “U.S. Lender Party”
hereunder, (B) on or prior to the date on which any such form or certification expires or becomes obsolete, (C) after the occurrence
of any event requiring a change in the most recent form or certification previously delivered by it pursuant to this clause
(f) and (D) from time to time if requested by Borrower or Administrative Agent (or, in the case of a participant, the relevant
Lender), provide Administrative Agent and Borrower (or, in the case of a participant, the relevant Lender) with two completed originals
of Form W-9 (certifying that such U.S. Lender Party is entitled to an exemption from U.S. backup withholding tax) or any successor
form.

 

(iii)        Each
Lender having sold a participation in any of its Obligations shall collect from such participant the documents described in this
clause (f) and provide them to Administrative Agent.

 

(g)          Refunds.
If a Lender has received a refund of (or tax credit with respect to) any Withholding Taxes or Other Taxes as to which it has been
indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section 2.16, it
shall pay over such refund (or the benefit realized as a result of such tax credit) to Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by Borrower under this Section 2.16 with respect to the Withholding Taxes or
Other Taxes giving rise to such refund), net of all out of pocket expenses of the Lender (including any Withholding Taxes imposed
with respect to such refund) as is determined by the Lender in good faith, and without interest (other than any interest paid by
the relevant Governmental Authority with respect to such refund); provided, that Borrower, upon the request of the Lender, agree
to repay as soon as reasonably practicable the amount paid over to Borrower (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) to the Lender in the event the Lender is required to repay such refund to such Governmental
Authority. This Section 2.16 shall not be construed to require the Lender to make available its tax returns (or any other
information relating to its Withholding Taxes or Other Taxes which it deems in good faith to be confidential) to Borrower or any
other person.

 

Section 2.17.         Partial
Releases. 

 

(a)          General
Provisions. Notwithstanding anything contained in this Agreement, the Note, the Mortgage or any of the other Loan Documents
to the contrary, from time to time upon the sale of one or more of the Projects in an arms-length transaction to a Person who is
not an Affiliate of any Borrower Party, upon the request of Borrower, Administrative Agent agrees to release any of such Projects
(each, a “Partial Release Project”) from the Lien of the related Mortgage and the other Loan Documents,
provided that all of the following terms and conditions are satisfied (such release herein called a “Partial Release”):

 

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(i)          No
Potential Default or Event of Default shall be in existence at the time the request is made or at the time the Partial Release
occurs, and no Material Adverse Change shall have occurred (or be reasonably expected to occur in connection with the Partial Release).

 

(ii)         After
giving effect to a Partial Release and payment of the Partial Release Price there shall be at least two (2) Projects remaining
as security for the Loans, one of which shall be the Friendswood Project.

 

(iii)        Borrower
shall provide written notice to Administrative Agent of their desire to have the applicable Partial Release Project released as
security for the Loans, and provide Administrative Agent with all information (including any purchase and sale agreement and proposed
partial release forms) and documents relating to such release at least thirty (30) days prior to the closing of the sale or refinancing
of the Partial Release Project and such partial release forms must be reasonably satisfactory to Administrative Agent in form and
substance.

 

(iv)         Borrower
shall deliver, together with such request for the Partial Release, a certificate certifying to Administrative Agent that no Potential
Default or Event of Default is in existence at the time such request is made or will be in existence immediately after giving effect
to the Partial Release and the execution and delivery of all documents connected therewith.

 

(v)          Borrower
shall deliver, together with such request for the Partial Release, a Compliance Certificate showing (and Administrative Agent shall
have confirmed) that: as of the date of the most recent financial statements required to be delivered pursuant to Section 7.1(a)(i),
(A) the Retained Project Debt Service Coverage Ratio shall not be less than the Debt Service Coverage Ratio as of the most
recent Determination Date; and (B) the Retained Project Debt Yield shall not be less than the Project Yield as of the most recent
Determination Date.

 

(vi)         Such
release will not affect the priority of Lien or Liens on the remainder of the Security, or Administrative Agent’s or Lenders’
rights in and to the remainder of the Security.

 

(vii)        Administrative
Agent shall receive reasonable assurances that the Environmental Indemnity Agreement shall remain in full force and effect with
respect to the remaining Security and the Partial Release Project, provided that with respect to the Partial Release Project, such
indemnity will apply only to claims or violations or alleged violations for the period of time prior to the date of the Partial
Release.

 

(viii)      Borrower
shall pay all reasonable expenses of Administrative Agent, including reasonable attorneys fees and expenses, title insurance premiums,
recording costs and similar costs in connection with the Partial Release.

 

(ix)         Borrower
shall pay to Administrative Agent, for the account of Lenders, an amount equal to the Partial Release Price, plus the pro rata
portion of any applicable Prepayment Premium required and calculated on the Partial Release Price. As used herein, “Partial
Release Price” shall mean 105% of the portion of the Loan allocated to the Partial Release Project, as specified
on Exhibit A (the “Allocated Loan Amount”).

 

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(x)          Administrative
Agent shall receive (or the title company that issued the Title Policy shall be irrevocably committed to issue) such title insurance
endorsements as it may require, including partial release endorsements.

 

(b)          Partial
Release Principal Reduction Payment. If Borrower is unable to exercise any option to cause a Partial Release Project to be
released from the Lien of the related Mortgage solely because the Retained Project Debt Yield or the Retained Project Debt Service
Coverage Ratio or both do not meet the threshold required to exercise such option, Borrower, following receipt from Administrative
Agent of written notice setting forth the Partial Release Principal Reduction Payment and the amount of the applicable LIBOR Breakage
Amount (if any), may pay to Administrative Agent, for the benefit of Lenders, the applicable Partial Release Principal Reduction
Payment.

 

(c)          Effect
of Partial Release; Reamortization of Loans. Upon satisfaction of the requirements contained
in this Section 2.17, in addition to releasing the applicable Project from the Lien of the applicable Mortgage, Assignment
of Leases and Rents and other Loan Documents specific to the Partial Release Project, Administrative Agent shall also partially-release
all obligations of Borrower under all other Loan Documents as, but only to the extent, they relate to the Project being released.
Following each Partial Release, the monthly principal payments required under Section 2.3(a) shall be recalculated based
upon the outstanding principal balance of the Loan after the Partial Release Payment (and Partial Release Principal Reduction
Payment, if made) is applied by Lenders and assuming a 25-year amortization period, less the full
or partial months elapsed since the Closing Date. Such recalculated monthly payment shall be due and payable commencing on the
first Payment Date following the month in which the Partial Release occurs. 

 

ARTICLE
III

 

INSURANCE,
CONDEMNATION, AND IMPOUNDS

 

Section
3.1.          Insurance. Borrower shall maintain (or
cause to be maintained) insurance as follows:

 

(a)          Casualty;
Business Interruption. Borrower shall keep (or cause to be kept) the Projects insured against damage by fire and the other
hazards covered by a standard extended coverage and all-risk insurance policy for the full insurable value thereof on a replacement
cost claim recovery basis (without reduction for depreciation or co-insurance and without any exclusions or reduction of policy
limits for acts of domestic and foreign terrorism and other specified action/inaction), and shall maintain boiler and machinery
insurance, acts of domestic and foreign terrorism endorsement coverage and such other casualty insurance as reasonably required
by Administrative Agent. Administrative Agent reserves the right to require from time to time the following additional insurance:
flood; earthquake/sinkhole; windstorm; worker’s compensation; and/or building law or ordinance. Borrower shall keep a Project
insured against loss by flood if such Project is located currently or at any time in the future in an area identified by the Federal
Emergency Management Agency as an area having special flood hazards and in which flood insurance has been made available under
the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act
of 1994 (as such acts may from time to time be amended) in an amount at least equal to the lesser of (i) the portion of the Loan
allocated to such Project by Administrative Agent, acting in its reasonable discretion or (ii) the maximum limit of coverage available
under said acts. Any such flood insurance policy shall be issued in accordance with the requirements and current guidelines of
the Federal Insurance Administration. Borrower shall maintain business interruption insurance, including use and occupancy, rental
income loss and extra expense, for all periods covered by Borrower’s property insurance for a limit equal to twelve (12)
calendar months’ exposure, all without any exclusions or reduction of policy limits for acts of domestic and foreign terrorism
or other specified action/inaction. Borrower shall not maintain any separate or additional insurance which is contributing in the
event of loss unless it is properly endorsed and otherwise reasonably satisfactory to Administrative Agent in all respects. The
proceeds of insurance paid on account of any damage or destruction to any Project shall be paid to Administrative Agent, on behalf
of the Lenders, to be applied as provided in Section 3.2.

 

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(b)          Liability.
 Borrower shall maintain (or cause to be maintained) (i) commercial general liability insurance with respect to the each Project
providing for limits of liability in the amount approved by Administrative Agent for both injury to or death of a person and for
property damage per occurrence, (ii) umbrella liability coverage in the amount and to the extent required by Administrative Agent,
and (iii) other liability insurance as reasonably required by Administrative Agent. In addition, Borrower shall cause each Operator
to maintain (A) worker’s compensation insurance and employer’s liability insurance covering employees at the Projects
employed by such Operator (in the amounts required by applicable Laws) and (B) professional liability insurance. In no event shall
Borrower consent to any decrease in the amount or scope of coverage or increase the deductibles from those previously approved
by Administrative Agent.

 

(c)          Form
and Quality. All insurance policies shall be endorsed in form and substance acceptable to Administrative Agent to name
Administrative Agent as an additional insured, loss payee or mortgagee thereunder, as its interest may appear, with loss payable
to Administrative Agent, without contribution, under a standard New York (or local equivalent) mortgagee clause and shall not contain
a Protective Safeguard Endorsement. Administrative Agent shall act on behalf of the Lenders in respect of insurance matters. All
such insurance policies and endorsements shall be fully paid for and contain such provisions and expiration dates and be in such
form and issued by such insurance companies licensed to do business in the state in which the applicable Project is located, with
a rating of “AX” or better as established by Best’s Rating Guide with respect to property and casualty insurance
and a rating of “AX” or better as established by Best’s Rating Guide or “A” or better by Standard
& Poor’s Ratings Group with respect to liability insurance. Each policy shall provide that such policy may not be canceled
or materially changed except upon thirty (30) days’ prior written notice of intention of non-renewal, cancellation or material
change to Administrative Agent and that no act or thing done by Borrower shall invalidate any policy as against Administrative
Agent. Blanket policies shall be permitted only if (i) Administrative Agent receives appropriate endorsements and/or duplicate
policies containing Administrative Agent’s right to continue coverage on a pro rata pass-through basis and that coverage
will not be affected by any loss on other properties covered by the policies and (ii) the policy contains a sublimit equal to the
replacement cost of the Projects in an amount approved by Administrative Agent which is expressly allocated for each Project, and
any such policy shall in all other respects comply with the requirements of this Section. Borrower authorizes Administrative Agent
to pay the premiums for such policies (the “Insurance Premiums”) from the Insurance Impound as the same
become due and payable annually in advance. If Borrower fails to deposit funds into the Insurance Impound sufficient to permit
Administrative Agent to pay the Insurance Premiums when due, Administrative Agent may obtain such insurance and pay the premium
therefor and Borrower shall, on demand, reimburse Administrative Agent for all expenses incurred in connection therewith.

 

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(d)          Assignment.
Borrower shall assign (or cause to be assigned) the policies or proofs of insurance to Administrative Agent (for the benefit of
the Lenders), in such manner and form that Administrative Agent and its successors and assigns shall at all times have and hold
the same as security for the payment of the Loan. If requested by Administrative Agent, Borrower shall deliver copies of all original
policies certified to Administrative Agent by the insurance company or authorized agent as being true copies, together with the
endorsements required hereunder. If Borrower elects to obtain any insurance which is not required under this Agreement, all related
insurance policies shall be endorsed in compliance with Section 3.1(c), and such additional insurance shall not be canceled
without prior notice to Administrative Agent . From time to time upon Administrative Agent’s request, Borrower shall identify
to Administrative Agent all insurance maintained by Borrower or Operator with respect to the Projects. The proceeds of insurance
policies coming into the possession of Administrative Agent shall not be deemed trust funds, and Administrative Agent shall be
entitled to apply such proceeds as herein provided.

 

(e)          Adjustments.
Borrower shall give (or cause to be given) immediate written notice of any loss to the insurance carrier and to Administrative
Agent. Borrower hereby irrevocably authorizes and empowers Administrative Agent, as attorney in fact for Borrower coupled with
an interest, to notify any of Borrower’s insurance carriers to add Administrative Agent (for itself and the benefit of the
Lenders) as a loss payee, mortgagee insured or additional insured, as the case may be, to any policy maintained by Borrower (regardless
of whether such policy is required under this Agreement), to make proof of loss, to adjust and compromise any claim under insurance
policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds,
and to deduct therefrom Administrative Agent’s reasonable expenses incurred in the collection of such proceeds. Nothing contained
in this Section 3.1(e), however, shall require Administrative Agent to incur any expense or take any action hereunder.

 

(f)          WARNING
REGARDING RIGHT OF ADMINISTRATIVE AGENT TO PURCHASE INSURANCE: If Borrower fails to provide Administrative Agent with evidence
of the insurance coverages required by this Agreement, Administrative Agent may purchase insurance at Borrower’s expense
to protect the interest of Administrative Agent and Lenders. This insurance may, but need not, also protect Borrower’s interest.
If the Collateral becomes damaged, the coverage Administrative Agent purchases may not pay any claim Borrower makes or any claim
made against Borrower. Borrower may later cancel this coverage by providing evidence that the required property coverage was purchased
elsewhere. Borrower is responsible for the cost of any insurance purchased pursuant to this provision and such cost is payable
on demand; if Borrower fails to pay such cost, it may be added to the Indebtedness and bear interest at the Default Rate. The effective
date of coverage may be the date Borrower’s prior coverage lapsed or the date Borrower failed to provide proof of coverage.
The coverage Administrative Agent purchases may be considerably more expensive than insurance Borrower can obtain and may not satisfy
any need for property damage coverage or any mandatory liability insurance imposed by applicable Laws.

 

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Section
3.2.          Use and Application of Insurance Proceeds.

 

(a)          Notice;
Repair Obligation. If any of the Projects shall be damaged or destroyed, in whole or in part, by fire or other casualty
(a “Casualty”), Borrower shall give prompt notice thereof to Administrative Agent. Following the occurrence
of a Casualty, Borrower, regardless of whether insurance proceeds are available, shall promptly proceed to restore, repair, replace
or rebuild the same to be of at least equal value and of substantially the same character as prior to such damage or destruction,
all to be effected in accordance with applicable law.

 

(b)          Application
of Insurance Proceeds. Administrative Agent shall make insurance proceeds available to Borrower for application to the
costs of restoring the affected Project or to the payment of the Loan as follows:

 

(i)          if
the loss is less than or equal to the Restoration Threshold, Administrative Agent shall make the insurance proceeds available to
Borrower, which proceeds shall be used by Borrower for the restoration of the damaged Project provided (A) no Event of Default
or Potential Default exists, and (B) Borrower promptly commences and is diligently pursuing restoration of the damaged Project;

 

(ii)         if
the loss exceeds the Restoration Threshold but is not more than 25% of the replacement value of the improvements constructed on
the damaged Project, Administrative Agent shall disburse the insurance proceeds to Borrower, which proceeds shall be used by Borrower
for the restoration of the damaged Project provided that (A) at all times during such restoration no Event of Default or Potential
Default exists; (B) Administrative Agent determines throughout the restoration that there are sufficient funds available
to restore and repair the Project to a condition approved by Administrative Agent and if the Administrative Agent reasonably determines
there is any such insufficiency, Borrower provides additional security to address such insufficiency to Administrative Agent’s
satisfaction; (C) Administrative Agent determines that the Adjusted Net Operating Income of the Projects (including the damaged
Projects) during restoration, taking into account rent loss or business interruption insurance, will be sufficient to pay Debt
Service; (D) Administrative Agent determines that the ratio of the outstanding principal balance of the Loan to appraised
value of the Projects after restoration of the damaged Project will not exceed the loan-to-value ratio that existed on the Closing
Date (or, to the extent that a Project was not encumbered on the Closing Date, the loan-to-value ratio that existed on the date
upon which Borrower granted a Mortgage to Administrative Agent to secure the Loan); (E) Administrative Agent determines that
after restoration of the damaged Project and Borrower will comply with the financial covenants in Section 8.15; (F) Administrative
Agent determines that restoration and repair of the damaged Project to a condition approved by Administrative Agent will
be completed within six months after the date of loss or casualty and in any event ninety (90) days prior to the Maturity Date;
(G) Borrower promptly commences and is diligently pursuing restoration of the damaged Project; and (H) the damaged Project after
the restoration will be in compliance with and permitted under all applicable zoning, building and land use laws, rules, regulations
and ordinances; and

 

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(iii)        if
the conditions set forth in (i) and (ii) above are not satisfied or the loss exceeds the maximum amount specified in Section
3.2(b)(ii) above, (A) if no Event of Default exists hereunder, in Required Lenders’ reasonable discretion, Required Lenders
may direct Administrative Agent to apply any insurance proceeds Administrative Agent receives as a prepayment of the Loan pursuant
to Section 2.4(e), or allow all or a portion of such proceeds to be used for the restoration of the damaged Project and
(B) if an Event of Default exists hereunder, Administrative Agent shall apply any insurance proceeds Administrative Agent receives
as a prepayment of the Loan pursuant to Section 2.4(e), unless the Required Lenders otherwise consent in writing to allow
all or a portion of the proceeds to be used for the restoration of the damaged Project.

 

(c)          Disbursement
of Insurance Proceeds. Insurance proceeds received by Administrative Agent and to be applied to restoration pursuant to
the terms of this Section 3.2 will be disbursed by Administrative Agent to Borrower on a monthly basis, commencing within ten (10)
Business Days following receipt by Administrative Agent of plans and specifications, contracts and subcontracts, schedules, budgets,
lien waivers and architects’ certificates all in form reasonably satisfactory to Administrative Agent, and otherwise in accordance
with prudent commercial construction lending practices for construction loan advances (including appropriate retainages to ensure
that all work is completed in a workmanlike manner).

 

Section
3.3.          Condemnation Awards. Borrower shall promptly
give Administrative Agent written notice of the actual or threatened commencement of any condemnation or eminent domain proceeding
affecting any Project (a “Condemnation”) and shall deliver to Administrative Agent copies of any and
all papers served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower, regardless of whether
any award or compensation (an “Award”) is available, shall promptly proceed to restore, repair, replace
or rebuild the same to the extent practicable to be of at least equal value and of substantially the same character as prior to
such Condemnation, all to be effected in accordance with applicable law. Administrative Agent may participate in any such proceeding
(for itself and on behalf of the Lenders) and Borrower will deliver to Administrative Agent all instruments necessary or required
by Administrative Agent to permit such participation. Without Administrative Agent’s prior consent, Borrower (a) shall not
agree to any Award, and (b) shall not take any action or fail to take any action which would cause the Award to be determined.
All Awards for the taking or purchase in lieu of condemnation of the a Project or any part thereof are hereby assigned to and shall
be paid to Administrative Agent. Administrative Agent is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled
with an interest, with exclusive power to collect, receive and retain any Award and to make any compromise or settlement in connection
with any such Condemnation and to give proper receipts and acquittances therefor, and in Administrative Agent’s sole discretion
(in consultation with the Required Lenders) to apply the same toward the payment of the Loan, notwithstanding that the Loan may
not then be due and payable, or to the restoration of the applicable Project; provided, however, if the Award is
less than or equal to $100,000 and Borrower requests that such proceeds be used for nonstructural site improvements (such as landscape,
driveway, walkway and parking area repairs) required to be made as a result of such Condemnation, Administrative Agent will apply
the Award to such restoration in accordance with disbursement procedures applicable to insurance proceeds provided there exists
no Potential Default or Event of Default. Borrower, upon request by Administrative Agent, shall execute all instruments requested
to confirm the assignment of the Awards to Administrative Agent, free and clear of all liens, charges or encumbrances. Anything
herein to the contrary notwithstanding, if a Potential Default or Event of Default exists, Administrative Agent is authorized to
adjust such Award without the consent of Borrower and to collect such Award in the name of Administrative Agent (on behalf of itself
and the Lenders) and Borrower.

 

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Section
3.4.          Insurance Impounds. Borrower shall deposit
(or cause to be deposited) with Administrative Agent, monthly on each Payment Date, a sum of money (the “Insurance
Impound”) equal to one-twelfth (l/12th) of the annual charges for the Insurance Premiums. At or before the initial
advance of the Loan, Borrower shall deposit (or cause to be deposited) with Administrative Agent a sum of money which together
with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency
or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Administrative Agent’s estimate
from time to time of the Insurance Premiums for the current year. All funds so deposited shall be held by Administrative Agent.
These sums may be commingled with the general funds of Administrative Agent, and shall not be deemed to be held in trust for the
benefit of Borrower. Borrower hereby grants to Administrative Agent (for its benefit and the benefit of the Lenders) a security
interest in all funds so deposited with Administrative Agent for the purpose of securing the Loan. Until an Event of Default exists,
Administrative Agent shall apply the funds deposited to pay Insurance Premiums as provided herein. While an Event of Default exists,
the funds deposited may be applied in payment of the Insurance Premiums for which such funds have been deposited, or to the payment
of the Loan or any other charges affecting the security of Administrative Agent, as Administrative Agent may elect, but no such
application shall be deemed to have been made by operation of law or otherwise until actually made by Administrative Agent. Borrower
shall furnish Administrative Agent with bills for the Insurance Premiums for which such deposits are required at least thirty (30)
days prior to the date on which the Insurance Premiums first become payable. If at any time the amount on deposit with Administrative
Agent, together with amounts to be deposited by Borrower or Operator before such Insurance Premiums are payable, is insufficient
to pay such Insurance Premiums, Borrower shall deposit (or cause to be deposited) any deficiency with Administrative Agent immediately
upon demand. Administrative Agent shall pay such Insurance Premiums when the amount on deposit with Administrative Agent is sufficient
to pay such Insurance Premiums and Administrative Agent has received a bill for such Insurance Premiums. On the Maturity Date,
the monies then remaining on deposit with Administrative Agent under this Section 3.4 shall, at Administrative Agent’s
option, be applied against the Indebtedness or if no Event of Default exists hereunder, returned to Borrower. Notwithstanding the
foregoing, if, with respect to a Project, the Insurance Premiums are paid via a premium financing arrangement to which Administrative
Agent has given its written consent, then (i) the amount to be escrowed with Administrative Agent at any given time in respect
of the Insurance Premiums payable with respect to such Project (as determined by Administrative Agent in its reasonable discretion)
shall be an amount equal to three months of the allocated amounts payable under such premium finance arrangement, (ii) at Administrative
Agent’s request, the applicable Borrower shall tender to Administrative Agent evidence reasonably satisfactory to Administrative
Agent that such Borrower or the applicable Master Tenant (or the owner of the policy if the applicable Borrower or the applicable
Master Tenant shares in a blanket policy) has paid the applicable premium finance amount due for the preceding month, and (iii)
Administrative Agent shall have no obligation to remit such escrowed sums in payment of the premium finance amounts.

 

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Section
3.5.          Real Estate Tax Impounds. Borrower shall
deposit (or cause to be deposited) with Administrative Agent, monthly on each Payment Date, a sum of money (the “Tax
Impound”) equal to one-twelfth (1/12th) of the annual Taxes. At or before the initial advance of the Loan, Borrower
shall deposit (or cause to be deposited) with Administrative Agent a sum of money which together with the monthly installments
will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with
respect to such payments. Deposits shall be made on the basis of Administrative Agent’s estimate from time to time of the
Taxes for the current year (after giving effect to any reassessment or, at Administrative Agent’s election, on the basis
of the Taxes for the prior year, with adjustments when the Taxes are fixed for the then current year). All funds so deposited shall
be held by Administrative Agent. Borrower and Lenders acknowledge and agree that these sums may be commingled with Administrative
Agent’s general funds and shall not be deemed to be held in trust for the benefit of Borrower. Borrower hereby grants to
Administrative Agent (for its benefit and the benefit of the Lenders) a security interest in all funds so deposited with Administrative
Agent for the purpose of securing the Loan. Until an Event of Default exists, Administrative Agent shall apply the funds deposited
to pay the Taxes as provided herein. While an Event of Default exists, the funds deposited may be applied in payment of the charges
for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Administrative
Agent, as Administrative Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise
until actually made by Administrative Agent. Borrower shall furnish Administrative Agent with bills for the Taxes for which such
deposits are required at least thirty (30) days prior to the date on which the Taxes first become payable. If at any time the amount
on deposit with Administrative Agent, together with amounts to be deposited by Borrower or Operator before such Taxes are payable,
is insufficient to pay such Taxes, Borrower shall deposit (or cause to be deposited) any deficiency with Administrative Agent immediately
upon demand. Administrative Agent shall pay such Taxes when the amount on deposit with Administrative Agent is sufficient to pay
such Taxes and Administrative Agent has received a bill for such Taxes. The obligation of Borrower to pay the Taxes, as set forth
in the Loan Documents, is not affected or modified by the provision of this paragraph; provided, however, that Borrower
shall not be in default under the Loan for failure to pay Taxes if and to the extent there are sufficient funds on deposit in the
Tax Impound to timely pay such Taxes. On the Maturity Date, the monies then remaining on deposit with Administrative Agent under
this Section 3.5 shall, at Administrative Agent’s option, be applied against the Indebtedness or if no Event of Default
exists hereunder, returned to Borrower.

 

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ARTICLE
IV

 

ENVIRONMENTAL
MATTERS

 

Section
4.1.          Representations and Warranties on Environmental
Matters. To Borrower’s Knowledge, except as set forth in the Site Assessment, (a) no Hazardous Material is now or
was formerly used, stored, generated, manufactured, installed, treated, discharged, disposed of or otherwise present at or about
the Projects or any property adjacent to a Project (except for cleaning and other products currently used in connection with the
routine maintenance or repair of the Projects in full compliance with Environmental Laws) and no Hazardous Material was removed
or transported from any Project, (b) all permits, licenses, approvals and filings required by Environmental Laws have been obtained,
and the use, operation and condition of each Project does not, and did not previously, violate any Environmental Laws, (c) no civil,
criminal or administrative action, suit, claim, hearing, investigation or proceeding is pending or threatened, nor have any settlements
been reached by or with any parties or any liens imposed in connection with any Project concerning Hazardous Materials or Environmental
Laws; (d) no underground storage tanks exist on any part of any Project; and (e) Borrower has not received and no prior owner or
current or prior tenant, subtenant, or other occupant of all or any part of the Projects has received, any notice from any Person,
public or private, alleging any violation of or potential liability under any Environmental Law with regard to the Projects, nor
has Borrower, nor have any of the third-parties described above, received any administrative order or entered into any administrative
consent order with any governmental agency with respect to Hazardous Materials on or at the Projects.

 

Section
4.2.          Covenants on Environmental Matters.

 

(a)          Borrower
shall (i) comply strictly and in all respects with applicable Environmental Laws; (ii) notify Administrative Agent immediately
upon Borrower’s discovery of any spill, discharge, release or presence of any Hazardous Material at, upon, under, within,
contiguous to or otherwise affecting any Project; (iii) promptly remove such Hazardous Materials and remediate the applicable Project
in full compliance with Environmental Laws or as reasonably required by Administrative Agent based upon the recommendations and
specifications of an independent environmental consultant approved by Administrative Agent; and (iv) promptly forward to Administrative
Agent copies of all orders, notices, permits, applications or other communications and reports in connection with any spill, discharge,
release or the presence of any Hazardous Material or any other matters relating to the Environmental Laws or any similar laws or
regulations, as they may affect any Project or Borrower.

 

(b)          Borrower
shall not cause and shall prohibit any other Person from (i) causing any spill, discharge or release, or the use, storage, generation,
manufacture, installation, or disposal, of any Hazardous Materials at, upon, under, within or about any Project or the transportation
of any Hazardous Materials to or from any Project (except for cleaning and other products used in connection with routine maintenance
or repair of such Project in full compliance with Environmental Laws), (ii) installing any underground storage tanks at any Project,
or (iii) conducting any activity that requires a permit or other authorization under Environmental Laws.

 

(c)          Borrower
shall provide to Administrative Agent, at Borrower’s expense promptly upon the written request of Administrative Agent from
time to time, a Site Assessment or, if required by Administrative Agent, an update to any existing Site Assessment for the applicable
Project, to assess the presence or absence of any Hazardous Materials and the potential costs in connection with abatement, cleanup
or removal of any Hazardous Materials found on, under, at or within such Project. Borrower shall pay the cost of no more than one
such Site Assessment or update for a Project in any twelve (12) month period, unless Administrative Agent’s request for a
Site Assessment is based on information provided under Section 4.2(a), a reasonable suspicion of Hazardous Materials at
or near such Project, a breach of representations under Section 4.1, or an Event of Default, in which case any such Site
Assessment or update shall be at Borrower’s expense.

 

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(d)          Each
Borrower covenants and agrees that it shall comply in all material respects with the terms and conditions of each operation and
maintenance program reasonably required by the Administrative Agent and/or Lenders to be maintained with respect to any Project.

 

Section
4.3.          Allocation of Risks and Indemnity. As
between Borrower and Administrative Agent and each Lender, all risk of loss associated with non-compliance with Environmental Laws,
or with the presence of any Hazardous Material at, upon, within, contiguous to or otherwise affecting the Projects, shall lie solely
with Borrower. Accordingly, Borrower shall bear all risks and costs associated with any loss (including any loss in value attributable
to Hazardous Materials), damage or liability therefrom, including all costs of removal of Hazardous Materials or other remediation
required by Administrative Agent or by law. Borrower shall indemnify, defend and hold Administrative Agent and each Lender and
their respective shareholders, directors, officers, employees and agents harmless from and against all loss, liabilities, damages,
claims, costs and expenses (including reasonable costs of defense and consultant fees, investigation and laboratory fees, court
costs, and other litigation expenses) arising out of or associated, in any way, with (a) the non-compliance with Environmental
Laws, or (b) the existence of Hazardous Materials in, on, or about the Projects, (c) any personal injury (including wrongful death)
or property damage (real or personal) arising out of or related to Hazardous Materials; (d) any lawsuit brought or threatened,
settlement reached, or government order relating to such Hazardous Materials, (e) a breach of any representation, warranty or covenant
contained in this Article 4, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil
statute or common law, or (f) the imposition of any environmental lien encumbering the Projects; provided, however,
Borrower shall not be liable under such indemnification to the extent such loss, liability, damage, claim, cost or expense results
solely from such indemnified Person’s gross negligence or willful misconduct as determined by a final non-appealable judgment
of a court of competent jurisdiction. Borrower’s obligations under this Section 4.3 shall arise whether or not any
Governmental Authority has taken or threatened any action in connection with the presence of any Hazardous Material, and whether
or not the existence of any such Hazardous Material or potential liability on account thereof is disclosed in the Site Assessment
and shall continue notwithstanding the repayment of the Loan or any transfer or sale of any right, title and interest in any Project
(by foreclosure, deed in lieu of foreclosure or otherwise).

 

Section
4.4.          Administrative Agent’s Right to Protect
Collateral. If any discharge of Hazardous Materials or the threat of any discharge of Hazardous Materials affecting any
Project occurs or Borrower fails to comply with any Environmental Laws and Borrower has not, within ten (10) Business Days of the
occurrence of such event, taken commercially reasonable steps to begin the remediation of such condition as required by Section
4.3, Administrative Agent may (but shall not be obligated to) give such notices and take such actions as it deems necessary
or advisable at the expense of Borrower in order to abate the discharge of any Hazardous Materials or remove the Hazardous Materials.
Any amounts payable to Administrative Agent by reason of the application of this Section 4.4 shall become immediately due
and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Administrative Agent until
paid. The obligations and liabilities of Borrower under this Section 4.4 shall survive any termination, satisfaction, assignment,
entry of a judgment of foreclosure or delivery of a deed in lieu of foreclosure.

 

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Section
4.5.          No Waiver. Notwithstanding any provision
in this Article 4 or elsewhere in the Loan Documents, or any rights or remedies granted by the Environmental Indemnity Agreement
or the Loan Documents, neither Administrative Agent nor any Lender waives and each of them expressly reserves all rights and benefits
now or hereafter accruing to Administrative Agent and the Lenders under the “security interest” or “secured
creditor” exception under applicable Environmental Laws, as the same may be amended. No action taken by Administrative
Agent or any Lender pursuant to the Environmental Indemnity Agreement or the Loan Documents shall be deemed or construed to be
a waiver or relinquishment of any such rights or benefits under the “security interest exception.”

 

ARTICLE
V

 

LEASING
MATTERS

 

Section
5.1.          Representations and Warranties on Leases.

 

(a)          Leases.
Borrower represents and warrants to Administrative Agent and the Lenders with respect to the Leases for residential occupancy,
(i) the rent roll or Census Report for each Project delivered to Administrative Agent is true and correct; (ii) such Leases are
valid and in and full force and effect; and (iii) the interests of the landlord and the rents under such Leases have not been assigned
or pledged. Borrower represents and warrants to Administrative Agent and Lenders with respect to the Commercial Leases, if any,
(i) the rent roll with respect to such Commercial Leases, if any, delivered to Administrative Agent is true and correct; (ii) such
Commercial Leases are in full force and effect; (iii) the Commercial Leases (including amendments) are in writing, and there are
no oral agreements with respect thereto; (iv) the copies of the Leases delivered to Administrative Agent are true and complete;
(v) neither the landlord nor any tenant is in default under any of the Commercial Leases; (vi) Borrower has no knowledge of any
notice of termination or default with respect to any Commercial Lease; (vii) Borrower has not assigned or pledged any of the Commercial
Leases, the rents or any interests therein except to Administrative Agent and the Lender; (viii) no Tenant or other party has an
option to purchase all or any portion of Projects; (ix) no Tenant has the right to terminate its Commercial Lease prior to expiration
of the stated term of such Commercial Lease; (x) no Tenant has prepaid more than one month’s rent in advance (except for
bona fide security deposits not in excess of an amount equal to two months’ rent); and (xi) all existing Commercial Leases
are subordinate to the Mortgage either pursuant to their terms or a recorded subordination agreement.

 

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(b)          Master
Lease. Each Borrower represents and warrants to Administrative Agent and the Lenders with respect to the Master Lease to
which such Borrower is party that: (i) such Master Lease is valid and in and full force and effect; (ii) such Master Lease (including
amendments) is in writing, and there are no oral agreements with respect thereto; (iii) the copy of such Master Lease delivered
to Administrative Agent is true and complete; (iv) neither such Borrower nor the Master Tenant party to such Master Lease is (or
as to the other party is, to such party’s knowledge), in default under such Master Lease; (v) neither such Borrower nor the
Master Tenant party to such Lease has any knowledge of any notice of termination or default with respect to such Master Lease;
(vi) such Borrower has not assigned or pledged such Master Lease, the rents or any interests therein, except to Administrative
Agent and the Lenders or except in connection with a Permitted Transfer; (vii) except as set forth in such Master Lease, the Master
Tenant party thereto does not have an option to purchase all or any portion of the Project demised thereunder; (viii) except as
set forth in such Master Lease, the Master Tenant party thereto does not have the right to terminate such Master Lease prior to
expiration of the stated term of such Master Lease (unless due to casualty or condemnation of the Project demised thereunder);
and (ix) the Master Tenant party to such Master Lease has not prepaid more than one month’s rent in advance.

 

Section 5.2.          [Reserved].

 

Section 5.3.          Covenants.

 

(a)          Leases.
Borrower shall (or cause Operator to) (i) perform the obligations which any Lease Party is required to perform under the Leases;
(ii) enforce the obligations to be performed by the Tenants under the Leases; (iii) promptly furnish to Administrative Agent any
notice of default or termination received by Borrower from any Tenant under a Commercial Lease, and any notice of default or termination
given by any Borrower to any Tenant under a Commercial Lease; (iv) not collect any rents for more than one month in advance of
the time when the same shall become due, except for bona fide Security Deposits not in excess of an amount equal to two month’s
rent; (v) not enter into any ground lease or master lease of any part of the Projects other than the Master Lease; (vi) not further
assign or encumber any Lease; (vii) not, except with Administrative Agent’s prior written consent, cancel or accept
surrender or termination of any Commercial Lease; (viii) not, except with Administrative Agent’s prior written
consent, modify or amend any Lease (except for minor modifications and amendments entered into in the ordinary course of business,
consistent with prudent property management practices, not affecting the economic terms of the Lease); and (ix) assign to Administrative
Agent any letter of credit evidencing a security deposit on such terms as may be required by Administrative Agent and shall deliver
the original of such letter(s) of credit to Administrative Agent. Any action in violation of clauses (v), (vi),
(vii), and (viii) of this Section 5.3(a) shall be void at the election of Administrative Agent. Borrower and
Operator, as applicable, will not suffer or permit any breach or default to occur in any of any Lease Party’s obligations
under any of the Leases, nor suffer or permit the same to terminate by reason of any failure of Lease Party to meet any requirement
of any Lease.

 

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(b)          Master
Lease. Each Borrower shall (i) perform the obligations which such Borrower is required to perform under the Master Lease
to which such Borrower is party; (ii) enforce the material obligations to be performed by the Master Tenant under the Master Lease
to which such Borrower is party; (iii) promptly furnish to Administrative Agent any notice of default or termination received by
such Borrower from the Master Tenant, and any notice of default or termination given by such Borrower to such Master Tenant, under
the Master Lease to which such Borrower is party; (iv) not collect any rents for more than one month in advance of the time when
the same shall become due under the Master Lease to which such Borrower is party, except for bona fide security deposits not in
excess of an amount equal to two months rent; (v) not enter into any ground lease or master lease of any part of the Projects other
than the Master Lease to which such Borrower is party; (vi) not further assign or encumber the Master Lease to which such Borrower
is party; (vii) not, except with Administrative Agent’s prior written consent, cancel or accept surrender or termination
of the Master Lease to which such Borrower is party; and (viii) not, except with Administrative Agent’s prior written consent,
modify or amend the Master Lease to which such Borrower is party, and any action in violation of clauses (v), (vi),
(vii), and (viii) of this Section 5.3(b) shall be void at the election of Administrative Agent. For avoidance
of doubt, Administrative Agent may withhold its consent to any amendment or modification of any Master Lease that would provide
for a reduction in the amount of base rent payable thereunder. No Borrower will suffer or permit any breach or default to occur
in any of such Borrower’s obligations under the Master Lease to which such Borrower is party nor suffer or permit the same
to terminate by reason of any failure of such Borrower to meet any requirement under the Master Lease to which such Borrower is
party.

 

Section 5.4.          Tenant
Estoppels.

 

(a)          Leases.
 At Administrative Agent’s request, Borrower shall obtain and furnish (or cause Operator to obtain and furnish) to Administrative
Agent, written estoppels in form and substance reasonably satisfactory to Administrative Agent, executed by Tenants under Commercial
Leases in excess of 3,000 square feet of a Project and confirming the term, rent, and other provisions and matters relating to
such Commercial Leases.

 

(b)          Master
Lease. At Administrative Agent’s request, Master Tenant shall furnish to Administrative Agent, a written estoppel
in form and substance satisfactory to Administrative Agent, executed by Master Tenant and confirming the term, rent and other provisions
and matters relating to the Master Lease.

 

Section 5.5.          Payment
of Rents Under Master Lease.

 

(a)          Commencing
on the Closing Date and continuing so long as the Loan are outstanding, Borrower shall direct Master Tenant to make all payments
of rent and all other amounts due under the Master Lease (such net amount herein called the “Master Lease Payments”)
to the Deposit Account Bank for deposit in the account subject to the Deposit Account Control Agreement. So long as no Potential
Default or Event of Default is continuing, Deposit Account Bank shall be authorized to transfer on a daily basis the funds in the
account to the operating account of Borrower, excluding the Security Deposit and any supplements thereto and amounts deposited
by the Master Tenant in connection with future payments of Taxes and insurance premiums, which shall remain on deposit in a Deposit
Account subject to a Deposit Account Control Agreement.

 

(b)          If
a Potential Default or an Event of Default exists, Administrative Agent shall have the right in its sole discretion to direct the
Deposit Account Bank to disburse all amounts in the account held by the Deposit Account Bank to Administrative Agent or as otherwise
directed by Administrative Agent, and to the extent disbursed to Administrative Agent. Administrative Agent shall apply such amounts
to the Obligations, in such order as Administrative Agent, in its sole discretion, may elect.

 

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ARTICLE
VI

 

REPRESENTATIONS
AND WARRANTIES

 

Borrower and
Master Tenant, as applicable represents, warrants and covenants to Administrative Agent and Lenders unless otherwise specified,
as of the Closing Date and as of the date of each Compliance Certificate delivered to Administrative Agent pursuant to Section
7.2 hereof that:

 

Section 6.1.          Organization,
Power and Authority; Formation Documents.

 

(a)          Organization,
etc. Borrower and each Borrower Party (a) is duly organized, validly existing and in good standing under the laws of the
state of its formation or existence and is in compliance with all legal requirements applicable to doing business in each state
in which a Project is located. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code.
Borrower and each Borrower Party has only one state of incorporation or organization. All other information regarding Borrower
and each Borrower Party contained in Schedule 6.1, including the ownership structure of Borrower and its constituent
entities, is true and correct as of the Closing Date.

 

(b)          Formation
Documents. A true and complete copy of the formation documents creating Borrower and each Borrower Party and any and all
amendments thereto (collectively, the “Borrower Formation Documents”) has been furnished to Administrative
Agent. The Borrower Formation Documents constitute the entire agreement regarding Borrower and each Borrower Party among the members
of Borrower and shareholders of each Borrower Party and are binding upon and enforceable against each of the members or shareholders,
as applicable, in accordance with their terms. No breach exists under the Borrower Formation Documents and no condition exists
which, with the giving of notice or the passage of time would constitute a breach under the Borrower Formation Documents.

 

Section 6.2.          Validity
of Loan Documents.  The execution, delivery and performance by Borrower and each Borrower
Party of the Loan Documents and the Environmental Indemnity Agreement: (a) are duly authorized and do not require the consent or
approval of any other party or Governmental Authority which has not been obtained; and (b) will not violate any law or result in
the imposition of any lien, charge or encumbrance upon the assets of any such party, except as contemplated by the Loan Documents
and/or the Environmental Indemnity Agreement. The Loan Documents and/or the Environmental Indemnity Agreement constitute the legal,
valid and binding obligations of Borrower and each Borrower Party who is a party to the Loan Documents and/or the Environmental
Indemnity Agreement, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, or similar
laws generally affecting the enforcement of creditors’ rights.

 

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Section 6.3.          Liabilities;
Litigation.

 

(a)          Financial
Statements. The financial statements delivered by Borrower and each Borrower Party are true and correct with no significant
change since the date of preparation. Except as disclosed in such financial statements, there are no liabilities (fixed or contingent)
affecting any Project, Borrower or any Borrower Party. Except as disclosed in such financial statements, there is no litigation,
administrative proceeding, investigation or other legal action (including any proceeding under any state or federal bankruptcy
or insolvency law) pending or, to Borrower’s Knowledge, threatened, against any Project, Borrower or any Borrower Party which
if adversely determined could have a Material Adverse Effect on such party, any Project or the Loan.

 

(b)          Contemplated
Actions. None of Borrower or any Borrower Party is contemplating either the filing of a petition by it under state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property, and none of Borrower, or
any Borrower Party has knowledge of any Person contemplating the filing of any such petition against it.

 

Section 6.4.          Taxes
and Assessments.  There are no unpaid or outstanding real estate or other taxes or assessments
on or against the Projects or any part thereof, except general real estate taxes not due or payable. Each Project is comprised
of one or more parcels, each of which constitutes a separate tax lot and none of which constitutes a portion of any other tax lot.
There are no pending or, to Borrower’s Knowledge, proposed, special or other assessments for public improvements or otherwise
affecting any Project, nor are there any contemplated improvements to any Project that may result in such special or other assessments.

 

Section 6.5.          Other
Agreements; Defaults. None of Borrower or any Borrower Party is a party to any agreement
or instrument or subject to any court order, injunction, permit, or restriction which might adversely affect any Project or the
business, operations, or condition (financial or otherwise) of Borrower or any Borrower Party. None of Borrower or any Borrower
Party is in violation of any agreement which violation could reasonably be expected to have a Material Adverse Effect on Borrower
or any Borrower Party or Borrower’s or any Borrower Party’s business, properties, or assets, operations or condition,
financial or otherwise.

 

Section 6.6.          Compliance
with Law. Borrower has all requisite Permits to own and lease the Projects and carry
on its business and to Borrower’s Knowledge each Operator has all requisite Primary Licenses and Permits to operate the Projects
and carry on its business. Except as described in each Zoning Report and Property Condition Report delivered to Administrative
Agent prior to the Closing Date, each Project in compliance with all applicable zoning and building requirements and is free of
structural defects. Except as described in the Property Condition Report delivered to Administrative Agent prior to the Closing
Date, all of the building systems contained in each Project are in good working order, subject to ordinary wear and tear. Except
as set forth in the Zoning Report, no Project constitutes, in whole or in part, a legally non-conforming use under applicable legal
requirements.

 

Section 6.7.          Condemnation.
 No condemnation has been commenced or, to Borrower’s Knowledge, is contemplated with
respect to all or any portion of the Projects or for the relocation of roadways providing access to any Project.

 

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Section 6.8.          Access.
Each Project has adequate rights of access to public ways and is served by adequate water, sewer, sanitary sewer and storm drain
facilities. All public utilities necessary or convenient to the full use and enjoyment of each Project are located in the public
right-of-way abutting the applicable Project, and all such utilities are connected so as to serve such Project without passing
over other property, except to the extent such other property is subject to a perpetual easement for such utility benefitting such
Project. All roads necessary for the full utilization of each Project for its current purpose have been completed and dedicated
to public use and accepted by all Governmental Authorities.

 

Section 6.9.          Location
of Borrower. Borrower’s principal place of business and chief executive offices
are located at the address stated in Schedule 6.1, and, except as otherwise set forth in Schedule
6.1, Borrower at all times has maintained its principal place of business and chief executive office at such location
or at other locations within the same state.

 

Section 6.10.         ERISA;
Employees.

 

(a)          As
of the Closing Date hereof and throughout the term of the Loan, (i) Borrower is not and will not be an “employee benefit
plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, and (ii) the assets of Borrower
do not and will not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA.

 

(b)          As
of the Closing Date hereof and throughout the term of the Loan (i) Borrower is not and will not be a “governmental
plan” within the meaning of Section 3(3) of ERISA and (ii) transactions by or with Borrower are not and will not
be subject to state statutes applicable to Borrower regulating investments of and fiduciary obligations with respect to governmental
plans.

 

(c)          Borrower
has no employees.

 

Section 6.11.         Margin
Stock. No part of proceeds of the Loan will be used for purchasing or acquiring any “margin
stock” within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System.

 

Section 6.12.         Forfeiture.
 There has not been and shall never be committed by Borrower or any other person in occupancy
of or involved with the operation or use of a Project any act or omission affording the federal government or any state or local
government the right of forfeiture as against such Project or any part thereof or any monies paid in performance of Borrower’s
obligations under any of the Loan Documents or the Environmental Indemnity Agreement. Borrower hereby covenants and agrees not
to commit, permit or suffer to exist any act or omission affording such right of forfeiture.

 

Section 6.13.         Tax
Filings.  Borrower and each Borrower Party have filed (or have obtained effective extensions
for filing) all federal, state and local tax returns required to be filed and have paid or made adequate provision for the payment
of all federal, state and local taxes, charges and assessments payable by Borrower and each Borrower Party, respectively. Borrower
and each Borrower Party believe that their respective tax returns properly reflect the income and taxes of Borrower and each Borrower
Party, respectively, for the periods covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service
or other applicable tax authority upon audit.

 

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Section 6.14.         Solvency.
After giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the
making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed
and contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately following the making of
the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on
its Debts as such Debts become absolute and matured, and Borrower’s assets do not and, immediately following the making of
the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted.
Borrower does not intend to, and does not believe that it will, incur Debts and liabilities (including contingent liabilities and
other commitments) beyond its ability to pay such Debts as they mature (taking into account the timing and amounts of cash to be
received by Borrower and the amounts to be payable on or in respect of obligations of Borrower). Except as expressly disclosed
to Administrative Agent in writing, no petition in bankruptcy has been filed against Borrower or any Borrower Party in the last
seven (7) years, and neither Borrower nor any Borrower Party in the last seven (7) years has ever made an assignment for the benefit
of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any Borrower Party is contemplating
either the filing of a petition by it under state or federal bankruptcy or insolvency laws or the liquidation of all or a major
portion of its assets or property, and neither Borrower nor any Borrower Party has knowledge of any Person contemplating the filing
of any such petition against it.

 

Section 6.15.         Full
and Accurate Disclosure. No statement of fact made by or on behalf of Borrower or any
Borrower Party in this Agreement, in any of the other Loan Documents or the Environmental Indemnity Agreement contains any untrue
statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading.
There is no fact presently known to Borrower which has not been disclosed to Administrative Agent which adversely affects, nor
as far as Borrower can foresee, might adversely affect, any Project or the business, operations or condition (financial or otherwise)
of Borrower or any Borrower Party. All information supplied by Borrower regarding any other Collateral is accurate and complete
in all material respects. All evidence of Borrower’s and each Borrower Party’s identity provided to Administrative
Agent and Lenders is genuine, and all related information is accurate.

 

Section 6.16.         Flood
Zone. No portion of the improvements comprising the Projects is located in an area identified
by the Secretary of Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to
the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Act of 1994,
as amended, or any successor law, or, if located within any such area, Borrower has obtained and will maintain the insurance prescribed
in Section 3.1 hereof.

 

Section 6.17.         Single
Purpose Entity/Separateness. Borrower represents, warrants and covenants, from and after
the Closing Date and for so long as any obligation under the Loan Documents remains outstanding, as follows:

 

(a)          Limited
Purpose.  The sole purpose conducted or promoted by Borrower is to engage in the following activities:

 

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(i)          to
acquire, own, hold, lease, operate, manage, maintain, develop and improve the Projects (or an undivided interest therein) and to
contract for the operation, maintenance, management and development of the Projects;

 

(ii)         to
enter into and perform its obligations under the Loan Documents and Environmental Indemnity Agreement;

 

(iii)        to
sell, transfer, service, convey, dispose of, pledge, assign, borrow money against, finance, refinance or otherwise deal with the
Projects to the extent permitted under the Loan Documents; and

 

(iv)        to
engage in any lawful act or activity and to exercise any powers permitted to limited liability companies organized under the laws
of its jurisdiction of formation that are related or incidental to and necessary, convenient or advisable for the accomplishment
of the above mentioned purposes.

 

(b)          Limitations
on Debt, Actions. Notwithstanding anything to the contrary in the Loan Documents or in any other document governing the
formation, management or operation of Borrower, Borrower shall not:

 

(i)          guarantee
any obligation of any Person, including any Affiliate, or become obligated for the debts of any other Person or hold out its credit
as being available to pay the obligations of any other Person;

 

(ii)         engage,
directly or indirectly, in any business other than as required or permitted to be performed under this Section 6.17;

 

(iii)        incur,
create or assume any Debt other than (A) the Loan and (B) unsecured trade payables incurred in the ordinary course of its business
that are related to the ownership and operation of the Projects and which shall (1) not exceed two percent (2%) of the outstanding
balance of the Loan, (2) not be evidenced by a note, (3) be paid within sixty (60) days, and (4) otherwise expressly be permitted
under the Loan Documents;

 

(iv)        make
or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person, except that Borrower
may invest in those investments permitted under the Loan Documents;

 

(v)         to
the fullest extent permitted by law, engage in any dissolution, liquidation, consolidation, merger, sale or other transfer of any
of its assets outside the ordinary course of Borrower’s business;

 

(vi)        buy
or hold evidence of indebtedness issued by any other Person (other than cash or investment-grade securities);

 

(vii)       form,
acquire or hold any subsidiary (whether corporate, partnership, limited liability company or other) or own any equity interest
in any other entity;

 

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(viii)      own
any asset or property other than the Projects (or an undivided interest therein) and incidental personal property necessary for
the ownership or operation of the Projects; or

 

(ix)         take
any Material Action without the unanimous written approval of all members of Borrower.

 

(c)          Separateness
Covenants.  In order to maintain its status as a separate entity and to avoid any confusion or potential consolidation
with any Affiliate, Borrower represents and warrants that in the conduct of its operations since its organization it has observed,
and covenants that it will continue to observe, the following covenants:

 

(i)          maintain
books and records and bank accounts separate from those of any other Person;

 

(ii)         maintain
its assets in such a manner that it is not costly or difficult to segregate, identify or ascertain such assets;

 

(iii)        comply
with all organizational formalities necessary to maintain its separate existence;

 

(iv)        hold
itself out to creditors and the public as a legal entity separate and distinct from any other entity;

 

(v)         maintain
separate financial statements, showing its assets and liabilities separate and apart from those of any other Person and not have
its assets listed on any financial statement of any other Person; except that Borrower’s assets may be included in a consolidated
financial statement of its Affiliate so long as appropriate notation is made on such consolidated financial statements to indicate
the separateness of Borrower from such Affiliate and to indicate that Borrower’s assets and credit are not available to satisfy
the debts and other obligations of such Affiliate or any other Person;

 

(vi)        other
than with respect to the consolidated tax return of its Affiliates, prepare and file its own tax returns separate from those of
any Person to the extent required by applicable law, and pay any taxes required to be paid by applicable law;

 

(vii)       allocate
and charge fairly and reasonably any common employee or overhead shared with Affiliates;

 

(viii)      not
enter into any transaction with any Person owned or controlled by an Affiliate of Borrower except on an arm’s-length basis
on terms which are intrinsically fair and no less favorable than would be available for unaffiliated third parties, and pursuant
to written, enforceable agreements;

 

(ix)         conduct
business in its own name, and use separate stationery, invoices and checks;

 

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(x)          not
commingle its assets or funds with those of any other Person other than as required or permitted by this Agreement;

 

(xi)         not
assume, guarantee or pay the debts or obligations of any other Person;

 

(xii)        correct
any known misunderstanding as to its separate identity;

 

(xiii)       not
permit any Affiliate to guarantee or pay its obligations (other than limited guarantees and indemnities set forth in the Loan Documents
and in the Environmental Indemnity Agreement);

 

(xiv)      not
make loans or advances to any other Person;

 

(xv)       pay
its liabilities and expenses out of and to the extent of its own funds;

 

(xvi)      maintain
a sufficient number of employees in light of its contemplated business purpose and pay the salaries of its own employees, if any,
only from its own funds;

 

(xvii)     maintain
adequate capital in light of its contemplated business purpose, transactions and liabilities; provided, however,
that the foregoing shall not require any equity owner to make additional capital contributions to Borrower;

 

(xviii)    cause
the managers, officers, employees, agents and other representatives of Borrower to act at all times with respect to Borrower consistently
and in furtherance of the foregoing and in the best interests of Borrower;

 

(xix)       not
have any obligation to, and will not, indemnify its partners, officers, directors or members, as the case may be, unless such an
obligation is fully subordinated to the Indebtedness and will not constitute a claim against it in the event that cash flow in
excess of the amount required to pay the Indebtedness is insufficient to pay such obligation;

 

(xx)        not
pledge its assets for the benefit of any other Person other than to Administrative Agent and Lenders in connection with the Loan;
and

 

(xxi)       observe
all partnership, corporate or limited liability company formalities, as applicable.

 

Failure of Borrower to comply with any
of the foregoing covenants or any other covenants contained in this Agreement shall not affect the status of Borrower as a separate
legal entity.

 

(d)          SPE
Party. So long as any obligation under the Loan Documents remains outstanding, Borrower shall at all times have a corporate
or limited liability company member having provisions in its organizational documents the provisions limiting its purpose and authority
approved by Administrative Agent (“SPE Party”).

 

Section 6.18.         Compliance
With International Trade Control Laws and OFAC Regulations.  Borrower represents, warrants
and covenants to Administrative Agent and Lenders that:

 

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(a)          No
Borrower Party and no Person who owns a direct interest in Borrower is now nor shall be at any time until after the Loan is fully
repaid, a Person with whom a U.S. Person, including a Financial Institution, is prohibited from transacting business of the type
contemplated by this Agreement, whether such prohibition arises under U.S. law, regulation, executive orders and lists published
by the OFAC (including those executive orders and lists published by OFAC with respect to Specially Designated Nationals and Blocked
Persons) or otherwise.

 

(b)          Each
Borrower Party and Person who owns a direct interest in Borrower is now, and Borrower will remain, in compliance (and will cause
each Borrower Party and Person who owns a direct interest in Borrower to remain in compliance) in all material respects with all
U.S. economic sanctions laws, Executive Orders and implementing regulations as promulgated by OFAC and all applicable Anti-Money
Laundering Laws.

 

Section 6.19.         Borrower’s
Funds. Borrower represents, warrants and covenants to each Lender and the Administrative
Agent that:

 

(a)          It
has taken, and shall continue to take until after the Loan is fully repaid, such measures as are required by law to verify that
the funds invested in Borrower are derived (i) from transactions that do not violate U.S. law and, to the extent such funds originate
outside the United States, do not violate the laws of the jurisdiction in which they originated; and (ii) from permissible sources
under U.S. law and to the extent such funds originate outside the United States, under the laws of the jurisdiction in which they
originated.

 

(b)          To
Borrower’s Knowledge, no Borrower Party, nor any Person who owns a direct interest in Borrower, nor any Person providing
funds to Borrower (i) is under investigation by any governmental authority for, or has been charged with, or convicted of, money
laundering, drug trafficking, terrorist related activities, any crimes which in the United States would be predicate crimes to
money laundering, or any violation of any Anti-Money Laundering Laws; (ii) has been assessed civil or criminal penalties under
any Anti-Money Laundering Laws; and (iii) has had any of its/his/her funds seized or forfeited in any action under any Anti-Money
Laundering Laws.

 

(c)          Borrower
shall make payments on the Loan using funds invested in Borrower, Adjusted Revenues or insurance proceeds unless otherwise agreed
to by Administrative Agent.

 

(d)          To
Borrower’s Knowledge, as of the Closing Date and at all times during the term of the Loan, all revenues arising from the
Projects are and will be derived from lawful business activities of Tenants of the Projects or other permissible sources under
U.S. law.

 

(e)          On
the Maturity Date, Borrower will take reasonable steps to verify that funds used to repay the Loan in full (whether in connection
with a refinancing, asset sale or otherwise) are from sources permissible under U.S. law and to the extent such funds originate
outside the United States, permissible under the laws of the jurisdiction in which they originated.

 

(f)          Each
Borrower Party and Person who owns a direct interest in Borrower is now, and Borrower will remain in compliance (and will cause
each Borrower Party and Person who owns a direct interest in Borrower to remain in compliance) with the Office of Foreign Assets
Control sanctions and regulations promulgated under the authority granted by the Trading with the Enemy Act (“TWEA”),
50 U.S.C. App. Section 1 et seq., and the International Emergency Economic Powers Act (“IEEPA”),
50 U.S.C. Section 1701 et seq., as the TWEA and the IEEPA may apply to Borrower’s activities;

 

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(g)          Each
Borrower Party and Person who owns a direct interest in Borrower is now, and Borrower will remain in compliance (and will cause
each Borrower Party and Person who owns a direct interest in Borrower to remain in compliance) with (i) the Patriot Act and all
rules and regulations promulgated under the Patriot Act applicable to Borrower and (ii) other federal or state laws relating to
“know your customer” and other anti-money laundering rules and regulations; and

 

(h)          Each
Borrower Party and Person who owns a direct interest in Borrower i) is not now, nor has ever been, under investigation by any Governmental
Authority for, nor has been charged with or convicted for a crime under, 18 U.S.C. Sections 1956 or 1957 or any predicate offense
thereunder, or a violation of the Bank Secrecy Act; ii) has never been assessed a civil penalty under any Anti-Money Laundering
Laws or predicate offenses thereunder; iii) has not had any of its funds seized, frozen or forfeited in any action relating to
any Anti-Money Laundering Laws or predicate offenses thereunder; iv) has taken such steps and implemented such policies as are
reasonably necessary to ensure that such party is not promoting, facilitating or otherwise furthering, intentionally or unintentionally,
the transfer, deposit or withdrawal of criminally derived property, or of money or monetary instruments which are (or which such
party suspects or has reason to believe are) the proceeds of any illegal activity or which are intended to be used to promote or
further any illegal activity; and v) has taken such steps and implemented such policies as are reasonably necessary to ensure that
such party is in compliance with all laws and regulations applicable to its business for the prevention of money laundering and
with anti-terrorism laws and regulations, with respect both to the source of funds from its investors and from its operations,
and that such steps include the development and implementation of an anti money laundering compliance program within the meaning
of Section 352 of the Patriot Act, to the extent any such party is required to develop such a programs under the rules and regulations
promulgated pursuant to Section 352 of the Patriot Act.

 

Section 6.20.         Operators’
Agreements. A true, correct and complete copy of each of the Operators’ Agreements,
together with all amendments thereto, have been delivered to Administrative Agent; and the Operators’ Agreements and all
amendments thereto are in full force and effect as of the Closing Date.

 

Section 6.21.         Physical
Condition. Except as specifically set forth in the Property Condition Report, to Borrower’s
Knowledge, (a) the Projects, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage
systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings
and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material
respects; and (b) there exists no structural or other material defects or damages in any Project, whether latent or otherwise.
Borrower has not received written notice from any insurance company or bonding company of any defects or inadequacies in any Project,
or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums
or charges thereon or of any termination or threatened termination of any policy of insurance or bond.

 

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Section 6.22.         Healthcare
Representations. Borrower represents and warrants to Administrative Agent and Lenders
that:

 

(a)          Each
Project (i) is being operated as a skilled nursing facility or intermediate care facility, having the number of Residential Units
as set forth on Exhibit A, attached hereto, (ii) if applicable, has a current provider agreement that is in full
force and effect under Medicare and Medicaid, and (iii) is in all material respects in compliance with all applicable Requirements
of Law (and, to the extent that failure to comply with any such Requirements of Law would materially and adversely affect the operation
of a Project, is in compliance with such Requirement of Law) including (A) staffing requirements, (B) health and fire safety codes,
including quality and safety standards, (C) accepted professional standards and principles that apply to professionals providing
services at the Projects; (D) federal, state or local laws, rules, regulations or published interpretations or policies relating
to the prevention of fraud and abuse, (E) insurance, reimbursement and cost reporting requirements, (F) government payment program
requirements and disclosure of ownership and related information requirements, (G) requirements of applicable Governmental Authorities,
including those relating to the Projects’ physical structure and environment, licensing, quality and adequacy of medical
care, distributions of pharmaceuticals, rate setting, equipment, personnel, operating policies and services and fee splitting,
and (H) any other applicable laws, regulations or agreements for reimbursement for the type of care or services provided by Operator
with respect to the Projects. There is no threatened in writing, existing or pending revocation, suspension, termination, probation,
restriction, limitation, or nonrenewal proceeding by any third-party payor under a Third Party Payor Program. The Third Party Payor
Programs to which Borrower or any Operator may presently be subject with respect to any Project are listed on Schedule 6.22(a).

 

(b)          All
Primary Licenses necessary for using and operating the Projects for the uses described in clause (a), above are listed on
Schedule 6.22(b), are either held by, or will be held by, Borrower or the applicable Operator, as required under
applicable Law, and are in full force and effect.

 

(c)          Except
as set forth on Schedule 6.22 hereof, with respect to any Project, there are no inquiries, investigations, probes,
audits or proceedings by any Governmental Authority or notices thereof, or any other third party or any patient, employee or resident
(including whistleblower suits, or suits brought pursuant to federal or state “false claims acts” and
Medicaid, Medicare or state fraud and/or abuse laws) that are reasonably likely directly or indirectly, or with the passage of
time (i) to have a material adverse impact on Operators’ ability to accept and/or retain patients or residents or operate
such Project for its current use or result in the imposition of a fine, a sanction, a lower rate certification or a lower reimbursement
rate for services rendered to eligible patients or residents, (ii) to modify, limit or result in the transfer, suspension, revocation
or imposition of probationary use of any of the Primary Licenses, (iii) to affect any Operator’s continued participation
in the Medicaid or Medicare programs or any other Third-Party Payor Programs, or any successor programs thereto at then current
rate certifications, or (iv) result in any other civil or criminal penalty or remedy, or which could result in the appointment
of a receiver.

 

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(d)          With
respect to any Project, except as set forth on Schedule 6.22, no Project has received a notice of violation at a
level that under applicable Law requires the immediate or accelerated filing of a plan of corrections, and no statement of charges
or deficiencies has been made or penalty enforcement action has been undertaken against any Project, no Operator currently has
outstanding any violation, and no statement of charges or deficiencies has been made or penalty enforcement action has been undertaken
each that remain outstanding against any Project, any Operator or against any officer, director, partner, member or stockholder
of any Operator, by any Governmental Authority, and there have been no violations threatened against any Project’s, or any
Operator’s certification for participation in Medicare or Medicaid or the other Third-Party Payor Programs that remain open
or unanswered.

 

(e)          With
respect to any Project, there are no current, pending or outstanding Third-Party Payor Programs reimbursement audits, appeals or
recoupment efforts actually pending at the Project, and there are no years that are subject to an open audit in respect of any
Third-Party Payor Program that would, in each case, adversely affect any Operator, other than customary audit rights pursuant to
Medicare/Medicaid/TRICARE programs or other Approved Insurer’s programs that would materially adversely affect Operators
or Borrower.

 

(f)          Neither
Borrower nor any Operator has received federal funds authorized under the Hill-Burton Act (42 U.S.C. 291, et seq.), as it
may be amended.

 

(g)          With
respect to each Project, substantially all of the patient and resident care agreements with respect to such Project conform in
all material respects with the form patient or resident care agreements that have been delivered to Administrative Agent and all
such agreements are in compliance with Healthcare Laws.

 

(h)          Borrower’s
and Operator’s private payor, Medicaid, Medicare, and/or managed care company, insurance company or other third party insurance
accounts receivable with respect to the Projects are free of any Liens and neither Borrower nor Operators have pledged any of their
respective receivables as collateral security for any loan or indebtedness.

 

(i)          Neither
Borrower nor Operator is a party to any collective bargaining agreement or other labor contract applicable to persons employed
by it at the Projects and there are no threatened or pending labor disputes at the Projects.

 

Section 6.23.         No
Change in Facts or Circumstances; Disclosure. To Borrower’s Knowledge, there has
been no material adverse change in any condition, fact, circumstance or event that would make the financial statements, rent rolls,
reports, certificates or other documents submitted in connection with the Loan inaccurate, incomplete or otherwise misleading in
any material respect or that otherwise materially and adversely affects the business operations or the financial condition of Borrower
or the Projects.

 

ARTICLE
VII

 

FINANCIAL
REPORTING

 

Section 7.1.          Financial
Statements. Borrower shall furnish to Administrative Agent and shall cause each Borrower
Party to furnish to Administrative Agent such financial statements and other financial information as may be required pursuant
to this Article 7 and such other financial information as Administrative Agent may require pursuant to this Article 7 and such
other financial information as Administrative Agent may reasonably request from time to time. All such financial statements shall
reflect all material contingent liabilities in accordance with GAAP and shall accurately and fairly present the results of operations
and the financial condition of Borrower at the dates and for the period indicated and shall be sufficient to permit Administrative
Agent and Lenders to calculate and/or verify Borrower’s calculation of Debt Service Coverage Ratio, Project Yield and Adjusted
Net Operating Income.

 

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(a)          Financial
Information. In furtherance of the foregoing, Borrower will furnish to Administrative Agent (or cause to be furnished to Administrative
Agent) the following financial information and reports with respect to Borrower, each Project and/or Operator (as applicable),
in each case in form and format and providing information satisfactory to Administrative Agent in its discretion:

 

(i)          within
forty-five (45) days after the end of each calendar month, internally prepared monthly financial statements (including income statements
and balance sheets) prepared for each Borrower and each Project which fairly present the financial condition for each Borrower
and each Project for such period;

 

(ii)         within
forty-five (45) days after the end of each calendar month, (A) a detailed operating statement (showing monthly activity and year-to-date)
stating operating revenues, operating expenses, operating income and net cash flow for the calendar month just ended and year-to-date
for each Project and (B) a current Census Report for each Project;

 

(iii)        following
Administrative Agent’s request therefor, within forty-five (45) days after the end of each fiscal quarter, a description
of the type and amount of all capital expenditures incurred at the Projects during such period;

 

(iv)        within
thirty (30) days before the end of each fiscal year, annual projected (A) profit and loss statements and (B) operating and capital
budgets (each prepared on a monthly basis) for the succeeding fiscal year;

 

(v)         within
sixty (60) days after the end of each fiscal year, internally prepared annual financial statements prepared for each Borrower in
accordance with GAAP (except for the absence of footnotes and year-end adjustments) and based on an accrual basis of accounting
consistent with industry standards;

 

(vi)        within
one hundred twenty (120) days after the end of each fiscal year, annual consolidated audited financial statements prepared (A)
for each Borrower in accordance with GAAP and prepared by a firm of independent public accountants reasonably satisfactory to Administrative
Agent and (B) for Operator (which may be on a consolidated basis with respect to the Master Tenant and Operating Tenants) in accordance
with GAAP on an accrual basis and prepared by a firm of independent public accountants reasonably satisfactory to Administrative
Agent;

 

(vii)       evidence
satisfactory to Administrative Agent that all federal and state taxes, including, without limitation, payroll taxes, that are due
have been paid in full by each Borrower, and each Borrower Party, to be delivered to Administrative Agent (A) with respect to federal
and state taxes (other than payroll taxes), within ten (10) days after the required filing date of the applicable tax return (taking
into account available extensions) and (B) with respect to payroll taxes, within thirty-five (35) days following the end of each
calendar month;

 

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(viii)      copies
of all cost reports and rate letters filed with Medicare and Medicaid or any other Third Party Payor by Operator and/or Borrower;

 

(ix)         within
forty-five (45) days after the end of each calendar quarter, financial statements (including income statements and balance sheets)
prepared for Operator, or if the Operator is a Single Purpose Entity, prepared for the parent of Operator, on a consolidated basis;

 

(x)          within
ten (10) days after Administrative Agent’s request, a written statement, duly acknowledged by Operator, setting forth any
right of set-off, counterclaim or other defense that may exist under any Leases;

 

(xi)         copies
of state and local health inspection and regulatory surveys (including complaint surveys), to be provided within twenty-five (25)
days after the completion of such surveys;

 

(xii)        within
forty-five (45) days after the end of each fiscal quarter, internally prepared monthly financial statements (including income statements
and balance sheets) prepared for Guarantor which fairly present the financial condition of Guarantor for such period;

 

(xiii)       within
one hundred twenty (120) days after the end of each fiscal year, annual consolidated audited financial statements prepared for
Guarantor in accordance with GAAP and prepared by a firm of independent public accountants reasonably satisfactory to Administrative
Agent; and

 

(xiv)      such
additional information, reports or statements regarding the Borrower, the Projects, Guarantor or Operator as Administrative Agent
may from time to time reasonably request.

 

(b)          Certification
of Financial Statements. Each financial statement provided hereunder shall be in scope and detail reasonably satisfactory
to Administrative Agent and certified by the chief financial representative of each Borrower. Borrower will maintain a system of
accounting established and administered in accordance with sound business practices to (i) permit preparation of financial statements
on an accrual basis consistent with industry standards and substantially in accordance with GAAP, and (ii) provide the information
required to be delivered to Administrative Agent hereunder.

 

Section 7.2.          Additional
Reports. Borrower shall deliver to Administrative Agent as soon as reasonably available
but in no event later than thirty (30) days after such items become available to Borrower in final form:

 

(i)          copies
of any final engineering or environmental reports prepared for Borrower with respect to any Project;

 

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(ii)         a
copy of any notice received by Borrower from any Governmental Authority with respect to an environmental condition existing or
alleged to exist or emanate from or at any Project;

 

(iii)        if
requested by Administrative Agent, and to the extent there are Commercial Leases encumbering a Project, a summary report listing
Tenants under Commercial Leases and square footage occupied by such Tenants;

 

(iv)        From
time to time, if any Lender determines that obtaining appraisals is necessary in order for such Lender to comply with applicable
Laws (including any appraisals required to comply with FIRREA), Borrower shall furnish to Administrative Agent appraisal reports
in form and substance and from appraisers reasonably satisfactory to Administrative Agent stating the then current fair market
value of each Project; provided, however, that such report shall not be required during the term of the Loan unless
(A) a Potential Default or Event of Default exists, (B) any Lender is required to obtain such report under applicable Law more
frequently than once during the term of the Loan or (C) Administrative Agent or any Lender elects to obtain such report at its
cost and expense.

 

(b)          Tax
Reports. Promptly upon receipt or filing thereof, Borrower shall deliver to Administrative Agent copies of any reports
or notices related to any material taxes and any other material reports or notices received by Borrower or any Guarantor from,
or filed by Borrower or any Guarantor with, any Governmental Authority.

 

Section 7.3.          Compliance
Certificate. Within forty-five (45) days after the end of each calendar quarter, Borrower
shall deliver and shall cause Guarantor to deliver such financial reports and information as Administrative Agent shall require
evidencing compliance with the applicable financial covenants, together with a fully completed Compliance Certificate executed
by an officer of Borrower or Guarantor (or an officer of its manager, managing member or general partner), and, if requested by
Administrative Agent, back-up documentation as Administrative Agent shall reasonably require evidencing compliance.

 

Section 7.4.          Accounting
Principles. All financial statements shall be prepared in accordance with GAAP (or such
other accounting basis reasonably acceptable to Administrative Agent). Notwithstanding the foregoing, all financial statements
delivered hereunder shall be prepared, and all financial covenants contained herein shall be calculated, without giving effect
to any election under Statement of Financial Accounting Standards 159 (or any similar accounting principle) permitting a Person
to value its financial liabilities at the fair value thereof.

 

Section 7.5.          Other
Information; Access. Borrower shall deliver to Administrative Agent such additional information
regarding Borrower, its subsidiaries, its business, any Borrower Party, and the Projects within thirty (30) days after Administrative
Agent’s request therefor, including, if requested by Administrative Agent, (a) copies of the regular monthly bank statements
provided to Borrower or Operator and such other information relating to the Borrower’s operating accounts as shall reasonably
be requested by Administrative Agent, in each case, to the extent such bank has the operational ability to do so, by providing
Administrative Agent with internet access to such statements or information, (b) cash flow statements for the Operator and (c)
an accounts receivable and accounts payable aging report. Borrower shall permit Administrative Agent to examine such records, books
and papers of Borrower which reflect upon its financial condition and the income and expenses of the Projects. In the event that
Borrower fails to forward the financial statements required in this Article 7 within thirty (30) days after written request, Administrative
Agent shall have the right to audit such records, books and papers at Borrower’s expense.

 

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Section 7.6.          Annual
Budget.  At least thirty (30) days prior to the commencement of each fiscal year, Borrower
will provide to Administrative Agent the Operator’s proposed annual operating and capital improvements budget for the Projects
for such fiscal year for review by Administrative Agent.

 

Section 7.7.          Books
and Records/Audits.  Borrower shall keep and maintain or cause to be kept and maintained
at all times at the Projects, or such other place as Administrative Agent may approve in writing, complete and accurate books of
accounts and records adequate to reflect the results of the operation of the Projects and to provide the financial statements required
to be provided to Administrative Agent pursuant to Section 7.1 above and copies of all written contracts, material correspondence,
and other material documents affecting the Projects. Administrative Agent and its designated agents shall have the right to inspect
and copy any of the foregoing, subject to compliance with Healthcare Laws. Additionally, if a Potential Default or Event of Default
exists or if Administrative Agent or any Lender has a reasonable basis to believe that Borrower’s records are materially
inaccurate, Administrative Agent and each Lender may, subject to compliance with Healthcare Laws conduct a joint audit and determine,
in such Person’s reasonable discretion, the accuracy of Borrower’s records and computations.

 

ARTICLE
VIII

 

COVENANTS

 

Borrower covenants
and agrees with each Lender and Administrative Agent as follows:

 

Section 8.1.          Transfers
or Encumbrance of Property.

 

(a)          Borrower
shall not cause or permit a Sale or Pledge of any Project or any part thereof or any legal or beneficial interest therein nor permit
a Sale or Pledge of an interest in any Restricted Party (in each case, a “Prohibited Transfer”) without
the prior written consent of the Administrative Agent, other than pursuant to Leases of space in the improvements to Tenants in
accordance with the provisions of Article 5.

 

(b)          A
Prohibited Transfer shall include, but not be limited to, (i) an installment sale agreement wherein Borrower agrees to sell any
Project or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial
part of any Project for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of, or
the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any rents (other than pursuant
to the Master Lease); (iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such corporation’s
stock or the creation or issuance of new stock in one or a series of transactions; (iv) if a Restricted Party is a limited or general
partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner
or the Sale or Pledge of the partnership interest of any general or limited partner or any profits or proceeds relating to such
partnership interests or the creation or issuance of new partnership interests; (v) if a Restricted Party is a limited liability
company, any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member manager
(or if no managing member, any member) or the Sale or Pledge of the membership interest of any member or any profits or proceeds
relating to such membership interest; (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the
Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial
interests; or (vii) the removal or the resignation of the Property Manager (including an Affiliated Manager) other than in accordance
with Section 8.3.

 

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(c)          Notwithstanding
the provisions of Section 8.1(b), any of the following transfers shall not be deemed to be a Prohibited Transfer: (i) a
transfer by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted Party;
or (ii) the Sale or Pledge, in one or a series of transactions after the date hereof, of not more than forty-nine percent (49%)
of the stock, limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party; provided,
however, any such transfer shall be subject to the following additional conditions: (A) no such transfers shall result in
a change in Control in the Restricted Party or change in control of any Project, (B) no transfer shall be made to any Person that
is not in compliance with Section 6.18, and (C) Administrative Agent shall receive not less than thirty (30) days prior
written notice of such proposed transfer; or (iii) any Sale or Pledge of the stock in any publicly traded company whose shares
are listed on the New York Stock Exchange or such other nationally recognized stock exchange. Notwithstanding the foregoing, any
transfer that results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in a Restricted Party
must comply with the requirements of Section 8.1(d) hereof.

 

(d)          Administrative
Agent’s consent to any proposed Prohibited Transfer will be conditioned upon satisfaction of the following, it being understood
that Administrative Agent is under no obligation to consent to any proposed Prohibited Transfer:

 

(i)          no
Potential Default or Event of Default shall have occurred and remain uncured;

 

(ii)         the
proposed transferee (“Transferee”) and its principals, owners, officers and directors meet all of the
eligibility, credit, management and other standards customarily applied by Administrative Agent and the Required Lenders at the
time of the proposed transfer to the approval of borrowers in connection with the origination or purchase of similar mortgages
on healthcare facilities, to be determined by Administrative Agent in its sole discretion, including any standards with respect
to (i) previous relationships between Administrative Agent or any Lender and the Transferee and its principals, (ii) the reputation
for integrity, honesty and veracity of the Transferee and its principals, owners, officers and directors, and (iii) OFAC, money-laundering,
anti-terrorism, SEC and other similar regulations and activities;

 

(iii)        the
Transferee and its property manager shall have sufficient experience in the ownership and management of properties similar to the
Projects, and Administrative Agent shall be provided with reasonable evidence thereof (and Administrative Agent reserves the right
to approve the Transferee without approving the substitution of the property manager);

 

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(iv)        If
required by Administrative Agent, Administrative Agent shall have received Rating Agency Confirmation with respect to the transfer
and the Transferee;

 

(v)         Administrative
Agent shall have received evidence satisfactory to it that the single purpose nature and bankruptcy remoteness of Borrower and
its shareholders, partners, or members, as the case may be, following such transfer are in accordance with the standards of the
Rating Agencies and the requirements of Section 6.17;

 

(vi)        to
the extent that the Transfer results in the Transferee holding fee simple title to the Projects, the Transferee shall have executed
and delivered to Administrative Agent an assumption agreement in form and substance acceptable to Administrative Agent, evidencing
such Transferee’s agreement to abide and be bound by the terms of the Note, the Mortgage and the other Loan Documents, and
containing such modification to the Loan Documents as Administrative Agent may require, together with such legal opinions and title
insurance endorsements as may be reasonably requested by Administrative Agent;

 

(vii)       Administrative
Agent shall have received on or prior to the date of the sale or transfer (A) any transfer fee charged by Administrative Agent
as a condition to approving such sale, (B) a rating confirmation fee for each of the Rating Agencies delivering a Rating Agency
Confirmation pursuant to clause (iv) above, which confirmation fees shall be equal to the then customary fees charged by
each applicable Rating Agency for such confirmation, and (C) the payment of all costs and expenses reasonably incurred by Administrative
Agent and any Lender in connection with such assumption (including reasonable attorneys’ fees and costs);

 

(viii)      Administrative
Agent shall have received such additional documentation as Administrative Agent may require in connection with the sale or transfer,
including a new Recourse Guaranty Agreement and Environmental Indemnity Agreement (substantially in the form delivered to Administrative
Agent contemporaneously herewith) from Persons acceptable to Administrative Agent affiliated with the Transferee, amendments to
financing statements naming the Transferee as debtor and documentary evidence of the organization and good standing of the Transferee
and authorization of the sale or transfer;

 

(ix)         the
satisfaction of such other conditions and/or legal opinions as Administrative Agent shall determine in its sole discretion to be
in the interest of the Lenders; and

 

(x)          Without
limiting the foregoing, if Administrative Agent shall consent to a transfer of the Projects, the written assumption agreement described
in Subsection 8.1(e)(vi) above shall provide for the release of Borrower, but only as to acts or events occurring, or obligations
arising, after the closing of such transfer.

 

(xi)         All
expenses incurred by Administrative Agent and Lenders shall be payable by Borrower whether or not the Required Lenders consent
to the Prohibited Transfer. Neither Administrative Agent nor any Lender shall be required to demonstrate any actual impairment
of its security or any increased risk of default hereunder in order to declare the Indebtedness immediately due and payable upon
a Prohibited Transfer made without the Required Lenders’ consent. This provision shall apply to each and every Prohibited
Transfer, whether or not the Required Lenders have consented to any previous Prohibited Transfer.

 

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Section 8.2.          Taxes;
Utility Charges. Except to the extent sums sufficient to pay all Taxes (defined herein)
have been previously deposited with Administrative Agent as part of the Tax Impound and subject to Borrower’s right to contest
in accordance with Section 12.14 hereof, Borrower shall pay before any fine, penalty, interest or cost may be added thereto,
and shall not enter into any agreement to defer, any real estate taxes and assessments, franchise taxes and charges, and other
governmental charges (the “Taxes”) that may become a Lien upon any Project or become payable during the
term of the Loan. Borrower’s compliance with Section 3.4 of this Agreement relating to impounds for Taxes shall, with
respect to payment of such Taxes, be deemed compliance with this Section 8.2. Borrower shall not suffer or permit the joint
assessment of any Project with any other real property constituting a separate tax lot or with any other real or personal property.
Borrower shall promptly pay for all utility services provided to each Project.

 

Section 8.3.          Management.

 

(a)          Borrower
acknowledges that the Lenders are making the Loan, in part, based upon the operational expertise of the Property Manager. Borrower
shall not, and shall not permit Master Tenant to, surrender, terminate, cancel, modify in any material respect, renew, amend, or
extend the Management Agreement, or enter into any other agreement relating to the management or operation of the Projects with
Property Manager or any other Person, or consent to the assignment by the Property Manager of its interest under the Management
Agreement, in each case without the express written consent of Administrative Agent, which consent shall not be unreasonably withheld,
conditioned or delayed and shall be based upon Administrative Agent’s evaluation of the proposed substitute manager’s
and operator’s financial condition, credit history and credit worthiness, experience in operating and managing properties
similar to the Projects, performance and compliance history in connection with healthcare facilities, reputation for honesty and
integrity and prior experience with Administrative Agent and the Lenders; provided, further, however, with respect to a new manager
such consent may be conditioned upon Borrower delivering a Rating Agency Confirmation as to such new manager and management agreement.
If at any time Administrative Agent consents to the appointment of a new manager, such new manager and Borrower shall, as a condition
of Administrative Agent’s consent, execute an Acknowledgment and Agreement of Property Manager in form and substance similar
to the Acknowledgment and Agreement of Property Manager executed by the Property Manager as of the Closing Date. Any change in
ownership or control of the Property Manager shall be cause for Administrative Agent to re-approve such Property Manager and Management
Agreement. Each Property Manager shall hold and maintain all necessary licenses, certifications and permits required by law to
operate and manage the Project for which it is providing management services.

 

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(b)          Borrower
and Master Tenant shall cause each Property Manager to manage the Projects in accordance with the applicable Management Agreement.
Borrower and/or Master Tenant, as the case may be shall (a) diligently perform and observe all of the terms, covenants and conditions
of the applicable Management Agreement on the part of Borrower or Master Tenant, respectively, to be performed and observed, (b)
promptly notify Administrative Agent of any notice received by Borrower or Master Tenant of any default by Borrower in the performance
or observance of any of the material terms, covenants or conditions of the applicable Management Agreement on the part of Borrower
or Master Tenant, respectively, to be performed and observed, and (c) promptly deliver to Administrative Agent a copy of each financial
statement, business plan or capital expenditures plan received by it under the Management Agreement. The management fee payable
under each Management Agreement shall not exceed Five Percent (5.0%) of rental collections.

 

(c)          Administrative
Agent shall have the right to require Borrower and/or Master Tenant to replace the Property Manager with a Person which is not
an Affiliate of, but is chosen by, Borrower and approved by Administrative Agent, such approval not to be unreasonably withheld
or delayed, upon the occurrence of any one or more of the following events: (a) at any time following the occurrence and continuance
of an Event of Default, and/or (b) if Property Manager shall be in default under the Management Agreement beyond any applicable
notice and cure period or if at any time the Manager has engaged in gross negligence, fraud or willful misconduct or if at any
time the Manager is insolvent or a debtor in a bankruptcy proceeding.

 

Section 8.4.          Operation;
Maintenance; Inspection.  Borrower shall observe and comply with all legal requirements
applicable to the ownership, use and operation of the Projects. Borrower shall maintain the Projects in good condition and promptly
repair any damage or casualty, normal wear and tear excepted. Borrower shall permit Administrative Agent and its agents, representatives
and employees, upon reasonable prior notice to Borrower, to inspect the Projects and conduct such environmental and engineering
studies as Administrative Agent may require, provided such inspections and studies do not materially interfere with the use and
operation of the Projects.

 

Section 8.5.          Taxes
on Security. Borrower shall pay all taxes, charges, filing, registration and recording
fees, excises and levies payable with respect to the Note or the Liens created or secured by the Loan Documents, other than income,
franchise and doing business taxes imposed on Administrative Agent or any Lender. If there shall be enacted any law (a) deducting
the Loan from the value of any Project for the purpose of taxation, (b) affecting any Lien on the Projects, or (c) changing existing
laws of taxation of mortgages, deeds of trust, security deeds, or debts secured by real property, or changing the manner of collecting
any such taxes, Borrower shall promptly pay to Administrative Agent, on demand, all taxes, costs and charges for which Administrative
Agent or any Lender is or may be liable as a result thereof; however, if such payment would be prohibited by law or would render
the Loan usurious, then instead of collecting such payment, Administrative Agent may declare all amounts owing under the Loan Documents
to be immediately due and payable.

 

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Section 8.6.          Legal
Existence; Name, Etc.  Borrower and each SPE Party shall preserve and keep in full force
and effect its existence as, and at all times operate as, a Single Purpose Entity, and shall preserve and keep in full force and
effect its entity status, franchises, rights and privileges under the laws of the state of its formation, and all qualifications,
licenses and permits applicable to the ownership, use and operation of the Projects. Neither Borrower nor any general partner or
managing member of Borrower shall wind up, liquidate, dissolve, reorganize, merge, or consolidate with or into any Person, or permit
any subsidiary or Affiliate of Borrower to do so. Without limiting the foregoing, Borrower shall not reincorporate or reorganize
itself under the laws of any jurisdiction other than the jurisdiction in which it is incorporated or organized as of the Closing
Date. Borrower and each general partner or managing member in Borrower shall conduct business only in its own name and shall not
change its name, identity, state of formation, or organizational structure, or the location of its chief executive office or principal
place of business unless Borrower (a) shall have obtained the prior written consent of Administrative Agent to such change, and
(b) shall have taken all actions necessary or requested by Administrative Agent to file or amend any financing statement or continuation
statement to assure perfection and continuation of perfection of security interests under the Loan Documents. If Borrower does
not have an organizational identification number and later obtains one, such Borrower shall promptly notify Administrative Agent
of its organizational identification number. Borrower (and each general partner or managing member in Borrower, if any) shall maintain
its separateness as an entity, including maintaining separate books, records, and accounts and observing corporate and partnership
formalities independent of any other entity, shall pay its obligations with its own funds and shall not commingle funds or assets
with those of any other entity.

 

Section 8.7.          Further
Assurances.  Borrower shall promptly (a) cure any defects in the execution and delivery
of the Loan Documents and the Environmental Indemnity Agreement, (b) provide, and cause each Borrower Party to provide, Administrative
Agent such additional information and documentation on Borrower’s and each Borrower Party’s legal or beneficial ownership,
policies, procedures, and sources of funds as Administrative Agent deems necessary or prudent to enable Administrative Agent and
each Lender to comply with Anti-Money Laundering Laws as now in existence or hereafter amended, and (c) execute and deliver, or
cause to be executed and delivered, all such other documents, agreements and instruments as Administrative Agent may reasonably
request to further evidence and more fully describe the Collateral for the Loan, to correct any omissions in the Loan Documents
or the Environmental Indemnity Agreement to perfect, protect or preserve any liens created under any of the Loan Documents and
the Environmental Indemnity Agreement, or to make any recordings, file any notices, or obtain any consents, as may be necessary
or appropriate in connection therewith. Borrower grants Administrative Agent an irrevocable power of attorney coupled with an interest
for the purpose of exercising and perfecting any and all rights and remedies available to Administrative Agent and the Lenders
under the Loan Documents and the Environmental Indemnity Agreement, at law and in equity, including without limitation such rights
and remedies available to Administrative Agent pursuant to this Section 8.7. From time to time upon the written request
of Administrative Agent, Borrower shall deliver to Administrative Agent a schedule of the name, legal domicile address and jurisdiction
of organization, if applicable, for each Borrower Party and each holder of a legal interest in Borrower.

 

Section 8.8.          Estoppel
Certificates Regarding Loan. Each Borrower, within ten (10) days after request, shall
furnish to Administrative Agent a written statement, duly acknowledged, setting forth the amount due on the Loan, the terms of
payment of the Loan, the date to which interest has been paid, whether any offsets or defenses exist against the Loan and, if any
are alleged to exist, the nature thereof in detail, and such other matters as Administrative Agent reasonably may request.

 

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Section 8.9.          Notice
of Certain Events.  Borrower shall promptly notify Administrative Agent of (a) any Potential
Default or Event of Default, together with a detailed statement of the steps being taken to cure such Potential Default or Event
of Default; (b) any notice of default received by Borrower under other obligations relating to the Projects or otherwise material
to Borrower’s business, including any notices of violations of any laws, regulations, codes or ordinances; (c) any threatened
or pending legal, judicial or regulatory proceedings, including any dispute between Borrower and any Governmental Authority, materially
adversely affecting Borrower, any Borrower Party or the Projects; (d) a copy of each notice of default or termination given or
made to any Operator by Borrower or received by Borrower from any Operator; and (e) a copy of each notice of default or termination
under any license or permit necessary for the operation of the Projects in the manner required by this Agreement; and (f) any threatened
or actual ban on admissions as to the Projects; and in the case of clauses (b), (d) or (e), promptly provide
Administrative Agent with copies of such notices referred to therein.

 

Section 8.10.         Indemnification.
Borrower shall protect, defend, indemnify and save harmless Administrative Agent and each Lender, their respective shareholders,
directors, officers, employees and agents (each, an “Indemnified Person”) from and against all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses (including without limitation reasonable attorneys’
fees and expenses and other costs of investigation, or defense, including those uncured upon any appeal or in connection with responding
to subpoenas, third parties or otherwise), imposed upon or incurred by or asserted against any Indemnified Person by reason of
(a) credit having been extended, suspended or terminated under this Agreement and the other Loan Documents and the administration
of such credit, and in connection with or arising out of the transactions contemplated hereunder and thereunder and any actions
or failures to act in connection therewith; (b) ownership of the Mortgage, the Projects or any interest therein or receipt of any
rents and the exercise of rights and remedies thereunder; (c) any accident, injury to or death of persons or loss of or damage
to property occurring in, on or about the Projects or any part thereof or on the adjoining sidewalks, curbs, adjacent property
or adjacent parking areas, streets or ways; (d) any use, nonuse or condition in, on or about the Projects or any part thereof or
on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (e) performance of any labor or
services or the furnishing of any materials or other property in respect of the Projects or any part thereof; and (e) the failure
of any Person to file timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of Proceeds from
Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Agreement, or to supply a copy
thereof in a timely fashion to the recipient of the proceeds of the transaction in connection with which this Agreement is made.
Any amounts payable to Administrative Agent or any Lender by reason of the application of this Section shall become immediately
due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Administrative Agent or
such Lender until paid.

 

Section 8.11.         [Intentionally
Omitted].

 

Section 8.12.         Payment
For Labor and Materials.  Subject to Borrower’s right to contest in accordance
with Section 12.14 hereof, Borrower will promptly pay when due all bills and costs for labor, materials, and specifically
fabricated materials incurred in connection with the Projects and never permit to exist beyond the due date thereof in respect
of any Project or any part thereof any Lien, even though inferior to the Liens hereof, and in any event never permit to be created
or exist in respect of any Project or any part thereof any other or additional Lien other than the Liens hereof, except for the
Permitted Encumbrances (defined in the Mortgage).

 

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Section 8.13.         Use
and Proceeds, Revenues.  Each Borrower shall use the proceeds of the Loan for proper
business purposes. No portion of the proceeds of the Loan shall be used by Borrower in any manner that might cause the borrowing
or the application of such proceeds to violate Regulation D, Regulation T or Regulation X or any other regulation of the Board
of Governors of the Federal Reserve System or to violate the Securities Act of 1933 or the Securities Exchange Act of 1934. Except
as otherwise specifically provided in the Loan Documents, revenues and other proceeds from the Projects received by Borrower shall
be applied to the Indebtedness then due and payable, actual operating expenses relating to the Projects of the type included in
the definition of “Adjusted Expenses”, or other budgeted capital improvements, repairs or replacements
for the Projects before distribution by Borrower to any Borrower Party.

 

Section 8.14.         Compliance
with Laws and Contractual Obligations.

 

(a)          Borrower
will (and will cause Operator to) comply in all material respects with (or, to the extent that failure to comply could reasonably
be expected to materially and adversely affect the operation of a Project, will comply in all respects with) (i) the requirements
of all applicable laws, rules, regulations and orders of any Governmental Authority (including, without limitation, laws, rules,
regulations and orders relating to all building, zoning, density, land use, covenants, conditions and restrictions, subdivision
requirements, taxes, employer and employee contributions, securities, employee retirement and welfare benefits, environmental protection
matters, employee health and safety, quality and safety standards, accreditation standards and requirements of the applicable state
department of health or other applicable state regulatory agency (each a “State Regulator”)), as are
now in effect and which may be imposed upon Borrower or Operator or the maintenance, use or operation of the Projects or the provision
of services to the occupants of the Projects and (ii) the obligations, covenants and conditions contained in all other material
contractual obligations of Borrower, and as they relate to the Projects and Operator.

 

(b)          Borrower
will obtain and maintain and will cause Operator to obtain and maintain, all licenses, qualifications and permits now held or hereafter
required to be held by Borrower or Operator for which the loss, suspension, revocation or failure to obtain or renew, could reasonably
be expected to have a material adverse effect upon the financial condition of Borrower or the ability to operate the Projects in
compliance with the requirements of the Loan Documents and as it has been operated prior to the date hereof.

 

Section 8.15.         Operating
and Financial Covenants. The Projects shall satisfy each of the following covenants as
of the end of each calendar quarter (the “Determination Date”):

 

(a)          Occupancy.
The Projects shall maintain (on a combined basis) average occupancy during the calendar quarter prior to each Determination Date
of not less than 66%.

 

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(b)          Debt
Service Coverage. The Debt Service Coverage Ratio as to each Determination Date shall be equal to or greater than 2.00
to 1.00 based upon the trailing twelve (12) full calendar months prior to the Determination Date; provided, if on any Determination
Date within twelve (12) months following acquisition by Borrower of a Project, operating statements for the prior twelve (12) month
period are not available for such Project, the operating statements covering any lesser period of time will be annualized to determine
compliance with this Section 8.15(b).

 

(c)          Project
Yield. The Project Yield as of each Determination Date shall be equal to or greater than 15.3% based on the trailing twelve
(12) full calendar months prior to the Determination Date; provided, if on any Determination Date within twelve (12) months following
acquisition by Borrower of a Project, operating statements for the prior twelve (12) month period are not available for such Project,
the operating statements covering any lesser period of time will be annualized to determine compliance with this Section 8.15(c).

 

Section 8.16.         Healthcare
Laws and Covenants.

 

(a)          Without
limiting the generality of any other provision of this Agreement, Borrower and Operator and their employees and contractors (other
than contracted agencies) in the exercise of their duties on behalf of Borrower or Operator (with respect to its operation of the
Projects) shall be in compliance in all material respects with all applicable Healthcare Laws. Borrower and Operator will have
maintained and shall have continued to maintain in all material respects all records required to be maintained by any Governmental
Authority or otherwise under the Healthcare Laws and to Borrower’s Knowledge there are no presently existing circumstances
which would result or likely would result in material violations of the Healthcare Laws. Borrower and Operator have and will maintain
all Primary Licenses, Permits and other Governmental Approvals necessary under applicable Laws to own and/or operate the Projects,
as applicable (including such Governmental Approvals as are required under such Healthcare Laws); or, if applicable Licenses have
been applied for, but not yet issued to, Operator, Operator have entered into applicable agreements with the prior operator of
the Projects to operate the Projects under the current Primary Licenses.

 

(b)          Borrower
represents that it is neither (i) a “covered entity” within the meaning of HIPAA or submits claims or
reimbursement requests to Third Party Payor Programs “electronically” (within the meaning of HIPAA) nor
(ii) subject to the “Administrative Simplification” provisions of HIPAA. If Borrower at any time becomes,
and during any period during which Operator is, a “covered entity” or subject to the “Administrative
Simplification” provisions of HIPAA, then such Person (during any period during which such Person is a covered entity
or subject to the co-called “Administrative Simplification” provisions of HIPAA) (x) will promptly undertake all necessary
surveys, audits, inventories, reviews, analyses and/or assessments (including any necessary risk assessments) of all areas of its
business and operations required by HIPAA and/or that could be adversely affected by the failure of such Person(s) to be HIPAA
Compliant (as defined below); (y) will promptly develop a detailed plan and time line for becoming HIPAA Compliant (a “HIPAA
Compliance Plan”); and (z) will implement those provisions of such HIPAA Compliance Plan in all material respects
necessary to ensure that such Person(s) are or become HIPAA Compliant. For purposes hereof, “HIPAA Compliant”
shall mean that Person (A) is or will be in material compliance with each of the applicable requirements of the so-called “Administrative
Simplification” provisions of HIPAA on and as of each date that any party thereof, or any final rule or regulation thereunder,
becomes effective in accordance with its or their terms, as the case may be (each such date, a “HIPAA Compliance Date”)
if and to the extent such Person is subject to such provisions, rules or regulations, and (B) is not and could not reasonably be
expected to become, as of any date following any such HIPAA Compliance Date, the subject of any civil or criminal penalty, process,
claim, action or proceeding, or any administrative or other regulatory review, survey, process or proceeding (other than routine
surveys or reviews conducted by any government health plan or other accreditation entity) that could result in any of the foregoing
or that could reasonably be expected to adversely affect such Person’s business, operations, assets, properties or condition
(financial or otherwise), in connection with any actual or potential violation by such Person of the then effective provisions
of HIPAA.

 

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(c)          If
and to the extent required under applicable Laws, Borrower and/or each Operator shall maintain in full force and effect throughout
the term of the Loan (i) a valid Primary License for the requisite number of Residential Units in the Projects, free from restrictions
or known conflicts, and such Primary License shall not be provisional, probationary or restricted in any manner that would materially
impair the use or operation of the Projects for the use described in Section 6.22(a) above, and (ii) a provider agreement
or other required documentation of approved provider status for each Third-Party Payor Programs, if applicable. The Projects shall
be operated in a manner such that the Primary Licenses shall remain in full force and effect.

 

(d)          Neither
Borrower nor any Operator shall do (or suffer to be done) any of the following with respect to any Project without the prior written
consent of Administrative Agent:

 

(i)          Transfer
the Primary Licenses to any location other than the Projects.

 

(ii)         Rescind,
withdraw, revoke, or amend the number of Residential Units permitted under the Primary Licenses, or otherwise amend the Primary
Licenses in such a manner that results in a material adverse effect on the rates charged or otherwise diminish or impair the nature,
tenor or scope of the Primary Licenses;

 

(iii)        Amend
or otherwise change any Project’s authorized units/beds capacity and/or the number of Residential Units approved by the State
Regulator, if applicable;

 

(iv)        Replace
or transfer all or any part of any Project’s units or beds to another site or location other than to another Project; or

 

(v)         Voluntarily
transfer or encourage the transfer of any resident of any Project to any other facility (other than to another Project), unless
such transfer is (A) at the request of the resident, (B) for reasons relating to the health, required level of medical care or
safety of the resident to be transferred or the residents remaining at the facility or (C) as a result of the disruptive behavior
of the transferred resident that is detrimental to the facility.

 

(e)          If
and when Borrower or Operator participates in any Medicare or Medicaid or other Third-Party Payor Programs with respect to the
Projects, the Projects will remain in compliance with all requirements necessary for participation in Medicare and Medicaid, including
the Medicare and Medicaid Patient Protection Act of 1987, as it may be amended, and such other Third-Party Payor Programs. Each
Project is and will remain in conformance in all material respects with all insurance, reimbursement and cost reporting requirements,
and, if applicable, have a current provider agreement that is in full force and effect under Medicare and Medicaid.

 

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(f)          To
Borrower’s Knowledge, there exists no Healthcare Investigations affecting the Projects. If Borrower becomes aware of any
Healthcare Investigation after the Closing Date, Borrower will promptly provide to Administrative Agent the following information
with respect thereto: (i) number of records requested, (ii) dates of service, (iii) dollars at risk, (iv) date records submitted,
(v) determinations, findings, results and denials (including number, percentage and dollar amount of claims denied, (vi) additional
remedies proposed or imposed, (vii) status update, including appeals, and (viii) any other pertinent information related thereto.1

 

Section 8.17.         Cooperation
Regarding Licenses. From time to time, upon the request of Administrative Agent, if a
Potential Default or Event of Default exists hereunder, Borrower shall, and shall cause Operator to, complete, execute and deliver
to Administrative Agent any applications, notices, documentation, and other information necessary or desirable, in Administrative
Agent’s judgment, to permit Administrative Agent or its designee (including a receiver) to obtain, maintain or renew any
one or more of the Primary Licenses for the Projects (or to become the owner of the existing Primary Licenses for the Projects)
and to the extent permitted by applicable Laws to obtain any other provider agreements or Governmental Approvals then necessary
or desirable for the operation of the Projects by Administrative Agent or its designee for their current use (including, without
limitation, any applications for change of ownership of the existing Primary Licenses or change of control of the owner of the
existing Primary Licenses). To the extent permitted by applicable Laws, (i) Administrative Agent is hereby authorized (without
the consent of Borrower or Operator) to submit any such applications, notices, documentation or other information which Borrower
caused to be delivered to Administrative Agent in accordance with the above provisions to the applicable Governmental Authorities,
or to take such other steps as Administrative Agent may deem advisable to obtain, maintain or renew any Primary License or Permits
or other Governmental Approvals in connection with the operation of the Projects for their current use, and Borrower agrees to
cooperate and to cause Operator to cooperate with Administrative Agent in connection with the same and (ii) Borrower, upon demand
by Administrative Agent, shall take any action and cause Operator to take any action necessary or desirable, in Administrative
Agent’s sole judgment, to permit Administrative Agent or its designee (including a receiver) to use, operate and maintain
each Project for its current use. If Borrower fails to comply with the provisions of this Section 8.17 for any reason whatsoever,
Borrower hereby irrevocably appoints Administrative Agent and its designee as Borrower’s attorney-in-fact, with full power
of substitution, to take any action and execute any documents and instruments necessary or desirable in Administrative Agent’s
sole judgment to permit Administrative Agent or its designee to undertake Borrower’s obligations under this Section 8.17,
including obtaining any Licenses or Governmental Approvals then required for the operation of the Projects by Administrative Agent
or its designee for their current uses. The foregoing power of attorney is coupled with an interest and is irrevocable and Administrative
Agent may exercise its rights thereunder in addition to any other remedies which Administrative Agent may have against Borrower
or any Borrower Party as a result of Borrower’s breach of the obligations contained in this Section 8.17.

 

 

		1	Please note that a broader covenant with respect to Healthcare Investigations will need to be added
to the Lease.

 

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Section 8.18.         Transactions
With Affiliates. Without the prior written consent of Administrative Agent, Borrower
shall not engage in any transaction affecting the Projects with an Affiliate of Borrower, except as expressly contemplated by this
Agreement.

 

Section 8.19.         Representations
and Warranties.  Borrower shall cause all representations and warranties in the Loan
Documents and Environmental Indemnity Agreement to remain true and correct at all times while any portion of the Loan remains outstanding.

 

Section 8.20.         Alterations.
 Administrative Agent’s prior approval shall be required in connection with any alterations
to the Projects (except tenant improvements under any Lease approved by Administrative Agent or under any Lease for which approval
was not required by Administrative Agent under this Agreement) (a) that adversely affect the structural components of the Projects,
utilities, HVAC or the exterior of the Projects, (b) that are reasonably likely to cause a Material Adverse Change or (c) the cost
of which (including any related alteration, improvement or replacement) is reasonably anticipated to exceed the Restoration Threshold,
which approval may be granted or withheld in Administrative Agent’s sole discretion. If the total unpaid amounts incurred
and to be incurred with respect to such alterations to the Projects shall at any time exceed the Restoration Threshold, Borrower
shall promptly deliver to Administrative Agent as security for the payment of such amounts and as additional security for Borrower’s
obligations under the Loan Documents any of the following: (i) cash, (ii) letters of credit, (iii) U.S. Obligations, (iv) other
securities acceptable to Administrative Agent, or (v) a completion bond in form acceptable to Administrative Agent. Such security
shall be in an amount equal to the excess of the total unpaid amounts incurred and to be incurred with respect to such alterations
to the Projects (other than such amounts to be paid or reimbursed by Tenants under the Leases) over the Restoration Threshold.

 

Section 8.21.         Business
and Operations. Borrower will continue to engage only in the businesses currently conducted
by it on the date hereof, as and to the extent the same are necessary for the ownership and leasing of the Projects. Borrower shall
at all times cause the Projects to be maintained in accordance with the Projects’ use as a senior housing and healthcare
facility.

 

Section 8.22.         Severability
of Covenants.  Any representations, warranties or covenants made by Borrower regarding
such entities or their Affiliates (as contrasted with the Projects) shall be deemed to have been made solely on behalf of such
entity, and neither Borrower shall be deemed to be making such representations or covenants or warranties regarding any other entity.

 

Section 8.23.         Required
Repairs and Post Closing Requirements.  Borrower shall provide evidence reasonably satisfactory
to Administrative Agent that the Required Repairs have been completed within the time periods set forth on Schedule 2.5(b),
all of which shall be performed in a manner satisfactory to Administrative Agent and shall be subject to inspection by Administrative
Agent. Borrower shall also satisfy the Post Closing Requirements within the time periods set forth on Schedule 12.37.

 

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ARTICLE
IX

 

EVENTS
OF DEFAULT

 

Section 9.1.          Events
of Default. Each of the following shall constitute an Event of Default hereunder and
under the Loan:

 

(a)          Payments.
Failure of Borrower to pay any regularly scheduled installment of principal, interest or other amount due under the Loan Documents
within five (5) days of (and including) the date when due, or failure of Borrower to pay the Loan at the Maturity Date, whether
by acceleration or otherwise.

 

(b)          Insurance.
Borrower’s failure to maintain insurance as required under Section 3.1 of this Agreement.

 

(c)          Sale,
Encumbrance, Etc. The sale, transfer, conveyance, pledge, mortgage or assignment of any part or all of any Project, or
any interest therein, or of any interest in Borrower, in violation of this Agreement.

 

(d)          Covenants.
Borrower’s failure to perform, observe or comply with any of the agreements, covenants or provisions contained in this Agreement
or in any of the other Loan Documents or Environmental Indemnity Agreement (other than those agreements, covenants and provisions
referred to elsewhere in this Article 9), and the continuance of such failure for ten (10) days after notice by Administrative
Agent to Borrower; however, subject to any shorter period for curing any failure by Borrower as specified in any of the other Loan
Documents or Environmental Indemnity Agreement, Borrower shall have an additional sixty (60) days to cure such failure if (a)such
failure does not involve the failure to make payments on a monetary obligation; (b)such failure cannot reasonably be cured within
ten (10) days; (c) Borrower is diligently undertaking to cure such default; and (d) Borrower has provided Administrative Agent
with security reasonably satisfactory to Administrative Agent against any interruption of payment or impairment of collateral under
the Loan Documents as a result of such continuing failure. The notice and cure provisions of this Section 9.4 do not apply
to the other Events of Default described in this Article 9 or to Borrower’s failure to perform, observe or comply with any
of the agreements, covenants or provisions referenced elsewhere in this Article 9 (for which no notice and cure period shall apply).

 

(e)          Representations
and Warranties. Any representation or warranty made in any Loan Document or the Environmental Indemnity Agreement or the
Compliance Certificate proves to be untrue in any material respect when made or deemed made.

 

(f)          Other
Encumbrances. Any default under any document or instrument, other than the Loan Documents, evidencing or creating a Lien
on any Project or any part thereof, is not cured within any applicable grace or cure period therein.

 

(g)          Involuntary
Bankruptcy or Other Proceeding. Commencement of an involuntary case or other proceeding against Borrower, any Borrower
Party or any other Person having an ownership or security interest in the Projects (each, a “Bankruptcy Party”)
which seeks liquidation, reorganization or other relief with respect to it or its debts or other liabilities under any bankruptcy,
insolvency or other similar law now or hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any of its property, and such involuntary case or other proceeding shall remain undismissed
or unstayed for a period of sixty (60) days; or an order for relief against a Bankruptcy Party shall be entered in any such case
under the Federal Bankruptcy Code.

 

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(h)          Voluntary
Petitions, etc. Commencement by a Bankruptcy Party of a voluntary case or other proceeding seeking liquidation, reorganization
or other relief with respect to itself or its Debts or other liabilities under any bankruptcy, insolvency or other similar law
or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official for it or any of its property,
or consent by a Bankruptcy Party to any such relief or to the appointment of or taking possession by any such official in an involuntary
case or other proceeding commenced against it, or the making by a Bankruptcy Party of a general assignment for the benefit of creditors,
or the failure by a Bankruptcy Party, or the admission by a Bankruptcy Party in writing of its inability, to pay its debts generally
as they become due, or any action by a Bankruptcy Party to authorize or effect any of the foregoing.

 

(i)          Default
Under Operating Agreement. The occurrence of a default by Borrower under any of the Operators’ Agreements, which
remains uncured beyond any applicable grace or cure periods available to Borrower.

 

(j)          Certain
Covenants. Borrower’s failure to (i) maintain its status as a Single Purpose Entity; (ii) timely deliver the Compliance
Certificate; (iii) comply with the provisions of Section 8.15; (iv) comply with the provisions of Section 8.16(c);
and (v) provide Administrative Agent with ten (10) days subsequent written notice of changes of the state of Borrower’s formation
or Borrower’s name.

 

(k)          Financial
Information. Borrower’s failure to deliver financial statements and reports as required by Article 7 and the continuance
of such failure (i) in connection with the first such failure, for a period of ten (10) days after delivery of written notice to
Borrower by Administrative Agent of such failure and (ii) thereafter, for ten (10) days after the required delivery date of such
financial statement or report.

 

(l)          Default
Under Guaranty. The occurrence of a default under the Recourse Guaranty Agreement and such default is not cured within
any grace or cure periods provided therein.

 

(m)          Criminal
Act. Borrower’s or any Borrower Party’s being charged with a felony crime or a crime involving moral turpitude
and the individual charged in connection therewith is not terminated within five (5) days of Borrower’s knowledge of such
indictment as an officer, employee or director of Borrower or Borrower Party.

 

(n)          Master
Lease. The occurrence of a material default under the Master Lease which continues uncured beyond any applicable notice
and grace period provided under the Master Lease.

 

(o)          [Reserved]

 

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(p)          Environmental
Indemnity Agreement. There shall have occurred any default under the Environmental Indemnity Agreement which remains uncured
beyond any applicable grace or cure periods available under the Environmental Indemnity Agreement.

 

(q)          Required
Repairs and Post Closing Requirements. The failure to satisfy the Post Closing Obligations within the time periods
set forth on Schedule 12.37, provided, however, that, if Borrower has made good faith efforts to satisfy, and diligently
pursued the completion of, such Post Closing Obligations within the time periods specified on such Schedule, Borrower shall have
an additional thirty (30) days to cure such failure, provided Borrower is diligently pursuing such cure.

 

(r)          Death
of Guarantor. If any Guarantor is an individual, the death of such Guarantor.

 

(s)          Admissions
Restrictions. Any Governmental Authority ceases to permit new residents or tenants to be admitted to any of the Projects
or causes the Operator to discharge any residents or tenants from any of the Projects.

 

(t)          Healthcare
Investigations. The occurrence of a Healthcare Investigation affecting any of the Projects that results in a deficiency
finding by the relevant authority.

 

(u)          Cash
Management Agreement. The occurrence of a default under a Cash Management Agreement which remains uncured beyond any applicable
grace or cure periods provided therein.

 

Section 9.2.          Special
Right to Cure with Respect to Operational Defaults. Notwithstanding anything contained
in Section 9.1 to the contrary, if an event that would otherwise constitute an Event of Default under Section 9.1(t)
occurs solely as a result of an act or omission of a Master Tenant or any Operator (and such act, omission or failure is outside
Borrower’s control and not otherwise caused by Borrower) (each such failure, an “Operational Default”),
such Operational Default shall not constitute an “Event of Default” under Section 9.1(t) hereunder if (and only
if) all of the following conditions are satisfied, as determined by Administrative Agent in its reasonable discretion:

 

(a)          There
exists no other Event of Default hereunder.

 

(b)          Borrower
sends written notice to Administrative Agent describing in reasonable detail such breach within three (3) Business Days following
the date upon which Borrower becomes aware of such Operational Default.

 

(c)          All
debt service payments and all other amounts due under the Loan Documents are paid current at all times (regardless of whether or
not there is available revenue from the Projects or rent from the Master Lease to make such payments).

 

(d)          Neither
the value of the Collateral nor the ability to operate the Projects is materially impaired as a result of the act or omission that
caused the Operational Default.

 

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(e)          Borrower
diligently pursues all rights and remedies available to Borrower under the Master Lease and under applicable Laws to cure (or cause
the Operator to cure) such Operational Default, and if Borrower elects to cure (or cause the Operator to cure) such Operational
Default, such Operational Default is actually cured within ninety (90) days of the occurrence of such Operational Default (such
ninety (90) day period from the occurrence of the Operational Default is referred to as the “Operational Default Forbearance
Period”).

 

(f)          Borrower
take commercially reasonable steps to cause the Primary Licenses required to operate the Projects as assisted living or skilled
nursing facilities and the reimbursement agreements with respect to the Projects to remain in full force and effect under the Requirements
of Law.

 

(g)          Borrower
pays all of Administrative Agent’s and each Lender's reasonable costs and expenses (including, without limitation, reasonable
attorneys' fees) in connection with the matters set forth in this Section 9.2.

 

(h)          On
a bi-weekly basis during the pendency of the Operational Default Forbearance Period, Borrower furnishes to Administrative Agent
a detailed written statement summarizing the then current status of Borrower’s attempts to cure such Operational Default.

 

(i)          Borrower
at all times during the Operational Default Forbearance Period takes such additional action and/or executes such additional documents
(and/or causes Operator to take such additional action and/or execute such additional documents) as Administrative Agent may reasonably
require in connection with the matters set forth in this Section 9.2.

 

Anything herein to the contrary notwithstanding,
Administrative Agent and Lenders shall have no obligation to forbear from exercising remedies by reason of an Operational Default
of any type as to which Borrower elects to cure more than twice in the aggregate during the term of the Loan or more than once
in any twelve (12) month period during the term of the Loan. For the avoidance of doubt, Administrative Agent and Lenders shall
have no obligation to forbear from submitting any pleadings in any bankruptcy or other proceeding to the extent that a failure
to do so could result in any prejudice to Lenders, a rejection or termination of the Master Lease or otherwise adversely affect
the Collateral securing the Loan.

 

ARTICLE
X

 

REMEDIES

 

Section 10.1.          Remedies
- Insolvency Events.  Upon the occurrence of any Event of Default described in Sections
9.7 or 9.8, all amounts due under the Loan Documents immediately shall become due and payable, all without written notice
and without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice
of acceleration of the maturity thereof, or any other notice of default of any kind, all of which are hereby expressly waived by
Borrower; however, if the Bankruptcy Party under Section 9.7 or 9.8 is other than Borrower, then all amounts due
under the Loan Documents shall become immediately due and payable at Administrative Agent’s election, in Administrative Agent’s
sole discretion.

 

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Section 10.2.          Remedies
- Other Events. Except as set forth in Section 10.1 above, while any Event of
Default exists, Administrative Agent may and at the direction of the Required Lenders shall (a) by written notice to Borrower,
declare the entire Loan to be immediately due and payable without presentment, demand, protest, notice of protest or dishonor,
notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice of default
of any kind, all of which are hereby expressly waived by Borrower, and (b) exercise all rights and remedies therefor under the
Loan Documents and at law or in equity. Notwithstanding anything to the contrary contained in the Loan Documents or the Environmental
Indemnity Agreement, the enforcement of the obligations of Borrower and the Borrower Parties under the Loan Documents and the Environmental
Indemnity Agreement and the exercise of rights and remedies thereunder shall be undertaken solely by Administrative Agent in its
capacity as agent for the Lenders.

 

Section 10.3.          Administrative
Agent’s Right to Perform the Obligations.  If Borrower shall fail, refuse or neglect
to make any payment or perform any act required by the Loan Documents or the Environmental Indemnity Agreement, then while any
Event of Default exists, and without notice to or demand upon Borrower and without waiving or releasing any other right, remedy
or recourse Administrative Agent may have because of such Event of Default, Administrative Agent may (but shall not be obligated
to) make such payment or perform such act for the account of and at the expense of Borrower, and shall have the right to enter
upon the Projects for such purpose and to take all such action thereon and with respect to the Projects as it may deem necessary
or appropriate. If Administrative Agent shall elect to pay any sum due with reference to the Projects, Administrative Agent may
do so in reliance on any bill, statement or assessment procured from the appropriate Governmental Authority or other issuer thereof
without inquiring into the accuracy or validity thereof. Similarly, in making any payments to protect the security intended to
be created by the Loan Documents, Administrative Agent shall not be bound to inquire into the validity of any apparent or threatened
adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same.
Borrower shall indemnify, defend and hold Administrative Agent harmless from and against any and all losses, liabilities, claims,
damages, expenses, obligations, penalties, actions, judgments, suits, costs, or disbursements of any kind or nature whatsoever,
including reasonable attorneys’ fees, incurred or accruing by reason of any acts performed by Administrative Agent pursuant
to the provisions of this Section 10.3, including those arising from the joint, concurrent, or comparative negligence of
Administrative Agent, except as a result of Administrative Agent’s gross negligence or willful misconduct. All sums paid
by Administrative Agent pursuant to this Section 10.3, and all other sums expended by Administrative Agent to which it shall
be entitled to be indemnified, together with interest thereon at the Default Rate from the date of such payment or expenditure
until paid, shall constitute additions to the Loan, shall be secured by the Loan Documents and shall be paid by Borrower to Administrative
Agent upon demand.

 

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ARTICLE
XI

 

ADMINISTRATIVE
AGENT

 

Section 11.1.          Appointment
and Duties.

 

(a)          Each
Lender hereby appoints GE Capital (together with any successor Administrative Agent pursuant to Section 11.9) as the Administrative
Agent hereunder and authorizes the Administrative Agent to (i) execute and deliver the Loan Documents and the Environmental Indemnity
Agreement and accept delivery thereof on its behalf from Borrower or any Borrower Party, (ii) take such action on its behalf and
to exercise all rights, powers and remedies and perform the duties as are expressly delegated to the Administrative Agent under
such Loan Documents the Environmental Indemnity Agreement, and (iii) exercise such powers as are reasonably incidental thereto.

 

(b)          Without
limiting the generality of clause (a) above, the Administrative Agent shall have the sole and exclusive right and authority
(to the exclusion of the Lenders), and is hereby authorized, to (i) act as the disbursing and collecting agent for the Lenders
with respect to all payments and collections arising in connection with the Loan Documents and the Environmental Indemnity Agreement
(including in any proceeding described in Section 9.7 or Section 9.8 or any other bankruptcy, insolvency or similar
proceeding), and each Person making any payment in connection with any Loan Document and the Environmental Indemnity Agreement
to any Secured Party is hereby authorized to make such payment to the Administrative Agent, (ii) file and prove claims and file
other documents necessary or desirable to allow the claims of the Secured Parties with respect to any Obligation in any proceeding
described in Section 9.7 or Section 9.8 or any other bankruptcy, insolvency or similar proceeding (but not to vote,
consent or otherwise act on behalf of such Secured Party), (iii) act as collateral agent for each Secured Party for purposes of
the perfection of all Liens created by such agreements and all other purposes stated therein, (iv) manage, supervise and otherwise
deal with the Collateral, (v) take such other action as is necessary or desirable to maintain the perfection and priority of the
Liens created or purported to be created by the Loan Documents, (vi) except as may be otherwise specified in any Loan Document
or the Environmental Indemnity Agreement, exercise all remedies given to the Administrative Agent and the other Secured Parties
with respect to the Collateral, whether under the Loan Documents or the Environmental Indemnity Agreement, applicable law or otherwise,
(vii) execute any amendment, consent or waiver under the Loan Documents and the Environmental Indemnity Agreement on behalf of
any Lender that has consented in writing to such amendment, consent or waiver; provided, however, that the Administrative
Agent hereby appoints, authorizes and directs each Lender to act as collateral sub-agent for the Administrative Agent and the Lenders
for purposes of the perfection of all Liens with respect to the Collateral, including any deposit account maintained by Borrower
or a Borrower Party with, and cash and cash equivalents held by, such Lender, and may further authorize and direct the Lenders
to take further actions as collateral sub-agents for purposes of enforcing such Liens or otherwise to transfer the Collateral subject
thereto to the Administrative Agent, and each Lender hereby agrees to take such further actions to the extent, and only to the
extent, so authorized and directed and (viii) provide each Lender within ten (10) Business Days following receipt, copies of the
reports and financial information received from Borrower under Article 7 and notices of default delivered by or received by Administrative
Agent under this Agreement.

 

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(c)          Under
the Loan Documents and the Environmental Indemnity Agreement, the Administrative Agent (i) is acting solely on behalf of the Lenders
(except to the limited extent provided in Section 2.13(b) with respect to the Register and in Section 11.10), with
duties that are entirely administrative in nature, notwithstanding the use of the defined term “Administrative Agent”,
the terms “agent”, “administrative agent” and “collateral agent”
and similar terms in any Loan Document and the Environmental Indemnity Agreement to refer to the Administrative Agent, which terms
are used for title purposes only, (ii) is not assuming any obligation under any Loan Document or the Environmental Indemnity Agreement
other than as expressly set forth therein or any role as agent, fiduciary or trustee of or for any Lender or any other Secured
Party and (iii) shall have no implied functions, responsibilities, duties, obligations or other liabilities under any Loan Document
or the Environmental Indemnity Agreement, and each Lender hereby waives and agrees not to assert any claim against the Administrative
Agent based on the roles, duties and legal relationships expressly disclaimed in clauses (i) through (iii) above.

 

Section 11.2.          Binding
Effect. Each Lender agrees that (i) any action taken by the Administrative Agent or the
Required Lenders (or, if expressly required hereby, a greater proportion of the Lenders) in accordance with the provisions of the
Loan Documents or the Environmental Indemnity Agreement, (ii) any action taken by the Administrative Agent in reliance upon the
instructions of Required Lenders (or, where so required, such greater proportion) and (iii) the exercise by the Administrative
Agent or the Required Lenders (or, where so required, such greater proportion) of the powers set forth herein or therein, together
with such other powers as are reasonably incidental thereto, shall be authorized and binding upon all of the Secured Parties.

 

Section 11.3.          Use
of Discretion.

 

(a)          The
Administrative Agent shall not be required to exercise any discretion or take, or to omit to take, any action, including with respect
to enforcement or collection, except any action it is required to take or omit to take (i) under any Loan Document or the Environmental
Indemnity Agreement or (ii) pursuant to instructions from the Required Lenders (or, where expressly required by the terms of this
Agreement, a greater proportion of the Lenders).

 

(b)          Notwithstanding
clause (a) of this Section 11.3, the Administrative Agent shall not be required to take, or to omit to take, any
action (i) unless, upon demand, the Administrative Agent receives an indemnification satisfactory to it from the Lenders (or, to
the extent applicable and acceptable to the Administrative Agent, any other Secured Party) against all Liabilities that, by reason
of such action or omission, may be imposed on, incurred by or asserted against the Administrative Agent or any Related Person thereof
or (ii) that is, in the opinion of the Administrative Agent or its counsel, contrary to any Loan Document or the Environmental
Indemnity Agreement or applicable Requirement of Law.

 

Section 11.4.          Delegation
of Rights and Duties. The Administrative Agent may, upon any term or condition it specifies,
delegate or exercise any of its rights, powers and remedies under, and delegate or perform any of its duties or any other action
with respect to, any Loan Document or the Environmental Indemnity Agreement by or through any trustee, co-agent, employee, attorney-in-fact
and any other Person (including any Secured Party). Any such Person shall benefit from this Article 11 to the extent provided by
the Administrative Agent.

 

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Section 11.5.          Reliance
and Liability.

 

(a)          The
Administrative Agent may, without incurring any liability hereunder, (i) treat the payee of any Note as its holder until such Note
has been assigned in accordance with Section 12.3, (ii) rely on the Register to the extent set forth in Section 2.13,
(iii) consult with any of its Related Persons and, whether or not selected by it, any other advisors, accountants and other experts
(including advisors to, and accountants and experts engaged by, any Borrower or any Borrower Party) and (iv) rely and act upon
any document and information (including those transmitted by Electronic Transmission) and any telephone message or conversation,
in each case believed by it to be genuine and transmitted, signed or otherwise authenticated by the appropriate parties.

 

(b)          None
of the Administrative Agent and its Related Persons shall be liable for any action taken or omitted to be taken by any of them
under or in connection with any Loan Document or the Environmental Indemnity Agreement, and each Lender and Borrower and the Borrower
Parties hereby waive and shall not assert any right, claim or cause of action based thereon, except to the extent of liabilities
resulting primarily from the gross negligence or willful misconduct of the Administrative Agent or, as the case may be, such Related
Person (each as determined in a final, non-appealable judgment by a court of competent jurisdiction) in connection with the duties
expressly set forth herein. Without limiting the foregoing, the Administrative Agent:

 

(i)          shall
not be responsible or otherwise incur liability for any action or omission taken in reliance upon the instructions of the Required
Lenders or for the actions or omissions of any of its Related Persons selected with reasonable care (other than employees, officers
and directors of the Administrative Agent, when acting on behalf of the Administrative Agent);

 

(ii)         shall
not be responsible to any Secured Party for the due execution, legality, validity, enforceability, effectiveness, genuineness,
sufficiency or value of, or the attachment, perfection or priority of any Lien created or purported to be created under or in connection
with, any Loan Document or the Environmental Indemnity Agreement;

 

(iii)        makes
no warranty or representation, and shall not be responsible, to any Secured Party for any statement, document, information, representation
or warranty made or furnished by or on behalf of any Related Person or Borrower or any Borrower Party in connection with any Loan
Document or any transaction contemplated therein or any other document or information with respect to any Borrower or any Borrower
Party, whether or not transmitted or (except for documents expressly required under any Loan Document to be transmitted to the
Lenders) omitted to be transmitted by the Administrative Agent, including as to completeness, accuracy, scope or adequacy thereof,
or for the scope, nature or results of any due diligence performed by the Administrative Agent in connection with the Loan Documents;
and

 

(iv)        shall
not have any duty to ascertain or to inquire as to the performance or observance of any provision of any Loan Document, whether
any condition set forth in any Loan Document is satisfied or waived, as to the financial condition of any Borrower or any Borrower
Party or as to the existence or continuation or possible occurrence or continuation of any Potential Default or Event of Default
and shall not be deemed to have notice or knowledge of such occurrence or continuation unless it has received a notice from a Borrower,
any Lender describing such Potential Default or Event of Default clearly labeled “notice of default”
(in which case the Administrative Agent shall promptly give notice of such receipt to all Lenders);

 

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and, for each of the items set forth in
clauses (i) through (iv) above, each Lender and Borrower and the Borrower Parties hereby waives and agrees not to
assert any right, claim or cause of action it might have against the Administrative Agent based thereon.

 

Section 11.6.          Administrative
Agent Individually. The Administrative Agent and its Affiliates may make loans and other
extensions of credit to, acquire stock and stock equivalents of, engage in any kind of business with, Borrower or any Borrower
Party or Affiliate thereof as though it were not acting as Administrative Agent and may receive separate fees and other payments
therefor. To the extent the Administrative Agent or any of its Affiliates makes any Loan or otherwise becomes a Lender hereunder,
it shall have and may exercise the same rights and powers hereunder and shall be subject to the same obligations and liabilities
as any other Lender and the terms “Lender,” and “Required Lender,” and any
similar terms shall, except where otherwise expressly provided in any Loan Document or the Environmental Indemnity Agreement, include,
without limitation, the Administrative Agent or such Affiliate, as the case may be, in its individual capacity as Lender or as
one of the Required Lenders, respectively.

 

Section 11.7.          Lender
Credit Decision. Each Lender acknowledges that it shall, independently and without reliance
upon the Administrative Agent, any other Lender or any of their Related Persons or upon any document solely or in part because
such document was transmitted by the Administrative Agent or any of its Related Persons, conduct its own independent investigation
of the financial condition and affairs of Borrower and each Borrower Party and make and continue to make its own credit decisions
in connection with entering into, and taking or not taking any action under, any Loan Document or the Environmental Indemnity Agreement
or with respect to any transaction contemplated in any Loan Document or the Environmental Indemnity Agreement, in each case based
on such documents and information as it shall deem appropriate. Except for documents expressly required by any Loan Document or
the Environmental Indemnity Agreement to be transmitted by the Administrative Agent to the Lenders, the Administrative Agent shall
not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of Borrower or any Borrower Party or any Affiliate of Borrower
or any Borrower Party that may come into the possession of the Administrative Agent or any of its Related Persons.

 

Section 11.8.          Expenses;
Indemnities.

 

(a)          Each
Lender agrees to reimburse the Administrative Agent and each of its Related Persons (to the extent not reimbursed by Borrower or
any Borrower Party) promptly upon demand for such Lender’s Pro Rata Share with respect to the Loan of any costs and expenses
(including fees, charges and disbursements of financial, legal and other advisors and other taxes paid in the name of, or on behalf
of, Borrower or any Borrower Party) that may be incurred by the Administrative Agent or any of its Related Persons in connection
with the preparation, syndication, execution, delivery, administration, modification, consent, waiver or enforcement (whether through
negotiations, through any work-out, bankruptcy, restructuring or other legal or other proceeding or otherwise) of, or legal advice
in respect of its rights or responsibilities under, any Loan Document and the Environmental Indemnity Agreement.

 

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(b)          Each
Lender further agrees to indemnify the Administrative Agent and each of its Related Persons (to the extent not reimbursed by Borrower
or any Borrower Party), from and against such Lender’s aggregate Pro Rata Share with respect to the Loan of the Liabilities
(including taxes, interests and penalties imposed for not properly withholding or backup withholding on payments made to on or
for the account of any Lender) that may be imposed on, incurred by or asserted against the Administrative Agent or any of its Related
Persons in any matter relating to or arising out of, in connection with or as a result of any Loan Document or the Environmental
Indemnity Agreement, any Related Document or any other act, event or transaction related, contemplated in or attendant to any such
document, or, in each case, any action taken or omitted to be taken by the Administrative Agent or any of its Related Persons under
or with respect to any of the foregoing; provided, however, that no Lender shall be liable to the Administrative
Agent or any of its Related Persons to the extent such liability has resulted primarily from the gross negligence or willful misconduct
of the Administrative Agent or, as the case may be, such Related Person, as determined by a court of competent jurisdiction in
a final non-appealable judgment or order.

 

Section 11.9.          Resignation
of Administrative Agent.

 

(a)          The
Administrative Agent may resign at any time by delivering notice of such resignation to the Lenders and Borrower, effective on
the date set forth in such notice or, if no such date is set forth therein, upon the date such notice shall be effective. If the
Administrative Agent delivers any such notice, the Required Lenders shall have the right to appoint a successor Administrative
Agent. If, within 30 days after the retiring Administrative Agent having given notice of resignation, no successor Administrative
Agent has been appointed by the Required Lenders that has accepted such appointment, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent from among the Lenders. Each appointment under this clause
(a) shall be subject to the prior consent of Borrower, which may not be unreasonably withheld, but shall not be required during
the continuance of a Potential Default or Event of Default.

 

(b)          Effective
immediately upon its resignation, (i) the retiring Administrative Agent shall be discharged from its duties and obligations under
the Loan Documents and the Environmental Indemnity Agreement, (ii) the Lenders shall assume and perform all of the duties of the
Administrative Agent until a successor Administrative Agent shall have accepted a valid appointment hereunder, (iii) the retiring
Administrative Agent and its Related Persons shall no longer have the benefit of any provision of any Loan Document or the Environmental
Indemnity Agreement other than with respect to any actions taken or omitted to be taken while such retiring Administrative Agent
was, or because such Administrative Agent had been, validly acting as Administrative Agent under the Loan Documents and (iv) subject
to its rights under Section 10.3, the retiring Administrative Agent shall take such action as may be reasonably necessary
to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents and the Environmental
Indemnity Agreement. Effective immediately upon its acceptance of a valid appointment as Administrative Agent, a successor Administrative
Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Administrative Agent
under the Loan Documents and the Environmental Indemnity Agreement.

 

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(c)          Administrative
Agent may be removed as Administrative Agent upon the request of all Lenders (other than Affiliates of Administrative Agent) upon
the determination by a court of competent jurisdiction that Administrative Agent has committed actions constituting gross negligence
or willful misconduct under this Agreement. The provisions of subsection (b) above shall apply upon such removal.

 

Section 11.10.         Additional
Secured Parties. The benefit of the provisions of the Loan Documents and the Environmental
Indemnity Agreement directly relating to the Collateral or any Lien granted thereunder shall extend to and be available to any
Secured Party that is not a Lender as long as, by accepting such benefits, such Secured Party agrees, as among the Administrative
Agent and all other Secured Parties, that such Secured Party is bound by (and, if requested by the Administrative Agent, shall
confirm such agreement in a writing in form and substance acceptable to the Administrative Agent) this Article 11, Section 12.6
(Right of Setoff), Section 12.7 (Sharing of Payments, Etc.) and Section 12.36 (Non-Public Information; Confidentiality)
and the decisions and actions of the Administrative Agent and the Required Lenders (or, where expressly required by the terms of
this Agreement, a greater proportion of the Lenders) to the same extent a Lender is bound; provided, however, that,
notwithstanding the foregoing, (a) such Secured Party shall be bound by Section 11.8 only to the extent of Liabilities,
costs and expenses with respect to or otherwise relating to the Collateral held for the benefit of such Secured Party, in which
case the obligations of such Secured Party thereunder shall not be limited by any concept of Pro Rata Share or similar concept,
(b) except as set forth specifically herein, each of the Administrative Agent and each Lender shall be entitled to act at its sole
discretion, without regard to the interest of such Secured Party, regardless of whether any Obligation to such Secured Party thereafter
remains outstanding, is deprived of the benefit of the Collateral, becomes unsecured or is otherwise affected or put in jeopardy
thereby, and without any duty or liability to such Secured Party or any such Obligation and (c) except as set forth specifically
herein, such Secured Party shall not have any right to be notified of, consent to, direct, require or be heard with respect to,
any action taken or omitted in respect of the Collateral or under any Loan Document or the Environmental Indemnity Agreement.

 

ARTICLE
XII

 

MISCELLANEOUS

 

Section 12.1.          Notices.
Any notice required or permitted to be given under this Agreement shall be in writing and either shall be mailed by certified mail,
postage prepaid, return receipt requested, or sent by overnight air courier service, or personally delivered to a representative
of the receiving party, or sent by facsimile (provided an identical notice is also sent simultaneously by mail, overnight courier,
or personal delivery as otherwise provided in this Section 12.1). All such communications shall be mailed, sent or delivered,
addressed to the party for whom it is intended at its address set forth below.

 

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	If to Borrower:	CHP Portland LLC
	 	CHP Medford 1, LLC
	 	CHP Friendswood SNF, LLC
	 	1920 Main Street, Suite 400
	 	Irvine, California 92614
	 	Attention:	General Counsel
	 	Facsimile:	(949) 250-0592
	 	 	 
	If to Administrative	 	 
	Agent:	General Electric Capital Corporation
	 	Loan No. 07-0004432
	 	500 West Monroe Street
	 	Chicago, Illinois 60661
	 	Attention:	Dague Retzlaff, Vice President
	 	Facsimile:	(866) 579-3042
	 	 	 
	with a copy to:	General Electric Capital Corporation
	 	Loan No. 07-0004432
	 	500 West Monroe Street
	 	Chicago, Illinois  60661
	 	Attention:	Jeffrey M. Muchmore, Managing Director
	 	Facsimile:	(866) 254-1971
	 	 	 
	with a copy to:	General Electric Capital Corporation
	 	Loan No. 07-0004432
	 	5804 Trailridge Drive
	 	Austin, Texas  78731
	 	Attention:	Diana Pennington, Chief Counsel- HFS Real Estate
	 	Facsimile:	(866) 221-0433
	 	 	 
	If to a Lender:	To the address set forth on Exhibit B attached hereto.

 

Any notice or request so addressed and
sent by United States mail or overnight courier shall be deemed to be given on the earliest of (1) when actually delivered, (2)
on the first Business Day after deposit with an overnight air courier service, or (3) on the third Business Day after deposit in
the United States mail, postage prepaid, in each case to the address of the intended addressee (except as otherwise provided in
the Mortgage). Any notice or request so delivered in person shall be deemed to be given when receipted for by, or actually received
by Administrative Agent, a Lender, or Borrower, as the case may be. If given by facsimile, a notice or request shall be deemed
given and received when the facsimile is transmitted to the party’s facsimile number specified above and confirmation of
complete receipt is received by the transmitting party during normal business hours or on the next Business Day if not confirmed
during normal business hours, and an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery
as otherwise provided in this Section 12.1. If given by electronic mail, a notice shall be deemed given and received when
the electronic mail is transmitted to the recipient’s electronic mail address specified above and electronic confirmation
of receipt (either by reply from the recipient or by automated response to a request for delivery receipt) is received by the sending
party during normal business hours or on the next Business Day if not confirmed during normal business hours, and an identical
notice is also sent simultaneously by mail, overnight courier or personal delivery as otherwise provided in this Section 12.1.
Except for facsimile and electronic mail notices sent as expressly described above, no notice hereunder shall be effective if sent
or delivered by electronic means. Either party may designate a change of address by written notice to the other by giving at least
ten (10) days prior written notice of such change of address.

 

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Section 12.2.          Amendments
and Waivers.

 

(a)          No
amendment or waiver of any provision of the Environmental Indemnity Agreement or any Loan Document and no consent to any departure
by Borrower or any Borrower Party therefrom shall be effective unless the same shall be in writing and signed (1) in the case of
an amendment, consent or waiver to cure any ambiguity, omission, defect or inconsistency or granting a new Lien for the benefit
of the Secured Parties or extending an existing Lien over additional property, by the Administrative Agent and Borrower, (2) in
the case of any other waiver or consent, by the Required Lenders (or by the Administrative Agent with the consent of the Required
Lenders) and (3) in the case of any other amendment, by the Required Lenders (or by the Administrative Agent with the consent of
the Required Lenders) and Borrower; provided, however, that no amendment, consent or waiver described in clause
(2) or (3) above shall be effective, unless in writing and signed by each Lender (or by the Administrative Agent with
the consent of the Lenders), in addition to any other Person the signature of which is otherwise required pursuant to any Loan
Document, and such amendment, consent or waiver does any of the following:

 

(i)          waives
any condition precedent to the effectiveness of this Agreement, except any condition referring to any other provision of any Loan
Document;

 

(ii)         increases
the Loan Commitment of any Lender or subjects any Lender to any additional obligation or otherwise increases the principal amount
of the Loan;

 

(iii)        reduces
(including through release, forgiveness, assignment or otherwise) (A) the principal amount of, the interest rate on, or any obligation
of Borrower to repay (whether or not on a fixed date), any outstanding amount under the Loan owing to Lenders or (B) any fee or
accrued interest payable to any Lender; provided, however, that this clause (iii) does not apply to (x) any
change to any provision increasing any interest rate or fee during the continuance of an Event of Default or to any payment of
any such increase or (y) any modification to any financial covenant set forth in Article 8 or in any definition set forth therein
or principally used therein;

 

(iv)        waives
or postpones any scheduled maturity date or other scheduled date fixed for the payment, in whole or in part, of principal of or
interest on the Loan (including any agreement to forbear that would have the same effect) or fee owing to such Lender or for the
reduction of such Lender’s Loan Commitment; provided, however, that this clause (iv) does not apply
to any change to mandatory prepayments, including those required under Section 2.5(c), or to the application of any payment,
including as set forth in Section 2.7;

 

(v)         releases
all or substantially all of the Collateral or any Guarantor from its guaranty of any Obligation of Borrower;

 

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(vi)        reduces
or increases the proportion of Lenders required for the Lenders (or any subset thereof) to take any action hereunder or change
the definition of the terms “Required Lenders,” “Pro Rata Share,” or “Pro
Rata Outstandings”; or

 

(vii)       amends
Section 12.7 (Sharing of Payments, Etc.) or this Section 12.2;

 

(b)          Anything
herein to the contrary notwithstanding, (A) any waiver of any payment applied pursuant to Section 2.6 (Application of Payments)
to, and any modification of the application of any such payment to the Loan shall require the consent of the Required Lenders,
(B) no amendment, waiver or consent shall affect the rights or duties under any Loan Document of, or any payment to, the Administrative
Agent (or otherwise modify any provision of Article 11 or the application thereof), and (C) (1) no Defaulting Lender shall have
any right to approve or disapprove any amendment, waiver or consent hereunder, except that (x) the Loan Commitment or of such Lender
may not be increased or extended without the consent of such Lender, (y) the outstanding balance of such Lender’s Pro Rata
Share of the Loan may not be forgiven without the consent of such Lender, and (z) the interest rate on the Loan cannot be reduced
unless the Defaulting Lender is treated the same as all other Lenders; (2) each Lender is entitled to vote as such Lender sees
fit on any bankruptcy or insolvency reorganization plan that affects the Loan; (3) each Lender acknowledges that the provisions
of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions set forth herein; and (4) the Required Lenders
may consent to allow a Borrower to use cash collateral in the context of a bankruptcy or insolvency proceeding.

 

(c)          Each
waiver or consent under any Loan Document, the Guaranty or the Environmental Indemnity Agreement shall be effective only in the
specific instance and for the specific purpose for which it was given. No notice to or demand on Borrower or any Borrower Party
shall entitle such Person to any notice or demand in the same, similar or other circumstances. No failure on the part of any Secured
Party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.

 

(d)          This
Agreement and the other Loan Documents and the Environmental Indemnity Agreement shall not be executed, entered into, altered,
amended, or modified by electronic means. Without limiting the generality of the foregoing, Borrower, Administrative Agent, and
each Lender hereby agree that the transactions contemplated by this Agreement shall not be conducted by electronic means, except
as specifically set forth in Section 12.1 regarding notices.  Any reference to a Loan Document or the Environmental
Indemnity Agreement, whether in this Agreement or in any other Loan Document or the Environmental Indemnity Agreement, shall be
deemed to be a reference to such Loan Document or the Environmental Indemnity Agreement as it may hereafter from time to time be
amended, modified, supplemented and restated in accordance with the terms hereof.

 

(e)          Unless
also consented to in writing by such Secured Hedge Provider or, in the case of a Secured Hedge Agreement provided or arranged by
GE Capital or an Affiliate of GE Capital, GE Capital, no such amendment, waiver or consent with respect to this Credit Agreement
or any other Loan Document shall (A) alter the ratable treatment of Obligations arising under Secured Hedge Agreements such that
such Obligations become junior in right of payment to principal on the Loan or (B) result in Obligations owing to any Secured Hedge
Provider becoming unsecured (other than releases of Liens applicable to all Lenders and otherwise permitted in accordance with
the terms hereof), in each case in a manner adverse to such Secured Hedge Provider.

 

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Section 12.3.          Assignments
and Participations; Binding Effect.

 

(a)          This
Agreement shall become effective when it shall have been executed by the Administrative Agent, the Lenders party hereto, and Borrower.
Thereafter, it shall be binding upon and inure to the benefit of Borrower (except for Article 11), the Administrative Agent, each
Lender and, to the extent provided in Section 12.4, each other Indemnitee and Secured Party and, in each case, their respective
successors and permitted assigns. Except as expressly provided in any Loan Document or the Environmental Indemnity Agreement none
of Borrower, the Master Tenant, or the Administrative Agent shall have the right to assign any rights or obligations hereunder
or any interest herein.

 

(b)          Each
Lender (other than a Defaulting Lender) may sell, transfer, negotiate or assign all or a portion of its rights and obligations
hereunder (including all or a portion of its Loan Commitment and its rights and obligations with respect to the Loan) to (i) any
existing Lender (other than a Defaulting Lender), (ii) any Affiliate or Approved Fund of any existing Lender (so long as such Person
would not, upon acceptance of such rights and obligations hereunder, constitute a Defaulting Lender) or (iii) any other Person
acceptable (which acceptance shall not be unreasonably withheld or delayed) to the Administrative Agent and, provided no Potential
Default or Event of Default is in existence, to Borrower; provided, however, that the aggregate outstanding principal
amount (determined as of the effective date of the applicable Assignment) of the Loan subject to any such sale shall be in a minimum
amount of $1,000,000, unless such sale is made to an existing Lender or an Affiliate or Approved Fund of any existing Lender, is
of the assignor’s (together with its Affiliates and Approved Funds) entire interest in the Loan or is made with the prior
consent of the Administrative Agent. For purposes of clarification, any sale, transfer, conveyance or other assignment, however
described, by GE Capital to GE Capital Bank, formerly known as GE Capital Financial Inc. (“GECB”), and/or
to any Affiliate of GECB, and by GECB to any of its Affiliates (including GE Capital) or to GE Capital, is expressly approved,
and each signatory hereto, including Borrower, acknowledges that no further consent or approval will be required in connection
with any such sale, transfer, conveyance or other assignment. A Defaulting Lender may not sell, transfer, negotiate or assign all
or a portion of its rights and obligations hereunder except with Administrative Agent’s consent or at Administrative Agent’s
direction in accordance with Section 2.14(c) hereof. A Defaulting Lender (or Person that would constitute a Defaulting Lender
upon acceptance of rights and obligations hereunder) may not be the recipient of the sale, transfer, negotiation or assignment
of any rights or obligations hereunder except with the consent of the Administrative Agent and, provided no Potential Default or
Event of Default is then in existence, Borrower.

 

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(c)          The
parties to each transfer or sale made in reliance on clause (b) above (other than those described in clause (d) or
(e) below) shall execute and deliver to the Administrative Agent an Assignment via an electronic settlement system designated
by the Administrative Agent (or if previously agreed with the Administrative Agent, via a manual execution and delivery of the
assignment) evidencing such transfer or sale, together with any existing Note subject to such transfer or sale (or any affidavit
of loss therefor acceptable to the Administrative Agent), any tax forms or other forms required to be delivered by the Administrative
Agent, and payment of an assignment fee in the amount of $3,500, provided that (1) if a transfer or sale by a Lender is made to
an Affiliate or an Approved Fund of such assigning Lender, then no assignment fee shall be due in connection with such transfer
or sale, and (2) if a transfer or sale by a Lender is made to an assignee that is not an Affiliate or Approved Fund of such assignor
Lender, and concurrently to one or more Affiliates or Approved Funds of such assignee, then only one assignment fee of $3,500 shall
be due in connection with such transfer or sale. Upon receipt of all the foregoing, and conditioned upon such receipt and, if such
assignment is made in accordance with Section 12.3(b)(iii), upon the Administrative Agent (and Borrower, if applicable)
consenting to such Assignment, from and after the effective date specified in such Assignment, the Administrative Agent shall record
or cause to be recorded in the Register the information contained in such Assignment.

 

(d)          Subject
to the recording of an Assignment by the Administrative Agent in the Register pursuant to Section 2.13(b), (i) the assignee
thereunder shall become a party hereto and, to the extent that rights and obligations under the Loan Documents and the Environmental
Indemnity Agreement have been assigned to such assignee pursuant to such Assignment, shall have the rights and obligations of a
Lender, (ii) any applicable Note shall be transferred to such assignee through such entry and (iii) the assignor thereunder shall,
to the extent that rights and obligations under this Agreement have been assigned by it pursuant to such Assignment, relinquish
its rights (except for those surviving the termination of the Loan Commitments and the payment in full of the Obligations) and
be released from its obligations under the Loan Documents and the Environmental Indemnity Agreement, other than those relating
to events or circumstances occurring prior to such assignment (and, in the case of an Assignment covering all or the remaining
portion of an assigning Lender’s rights and obligations under the Loan Documents and the Environmental Indemnity Agreement,
such Lender shall cease to be a party hereto except that each Lender agrees to remain bound by Article 11, Section 12.6
(Right of Setoff), Section 12.7 (Sharing of Payments) and Section 12.36 (Non-Public Information; Confidentiality).

 

(e)          In
addition to the other rights provided in this Section 12.3, each Lender may grant a security interest in, or otherwise assign
as collateral, any of its rights under this Agreement, whether now owned or hereafter acquired (including rights to payments of
principal or interest on the Loan), to (A) any federal reserve bank (pursuant to Regulation A of the Federal Reserve Board), without
notice to the Administrative Agent or (B) any holder of, or trustee for the benefit of the holders of, such Lender’s securities
by notice to the Administrative Agent; provided, however, that no such holder or trustee, whether because of such
grant or assignment or any foreclosure thereon (unless such foreclosure is made through an assignment in accordance with clause
(b) above), shall be entitled to any rights of such Lender hereunder and no such Lender shall be relieved of any of its obligations
hereunder.

 

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EACH LENDER
AT ANY TIME AND FROM TIME TO TIME MAY (I) DIVIDE AND RESTATE ITS PRO RATA SHARE OF THE LOAN OR ITS NOTE, AND/OR (II) SELL, ASSIGN
OR GRANT PARTICIPATING INTERESTS IN OR TRANSFER ALL OR ANY PART OF ITS RIGHTS OR OBLIGATIONS UNDER ANY LOAN DOCUMENT, THE ENVIRONMENTAL
INDEMNITY AGREEMENT, THE LOAN, ITS NOTE, THE OBLIGATIONS AND/OR THE COLLATERAL TO OTHER PERSONS (EACH SUCH TRANSFEREE, ASSIGNEE
OR PURCHASER, A “LENDER TRANSFEREE”). Borrower agrees to cooperate with Lenders in connection with any
such restatement, division, sale, assignment or transfer. Each Lender Transferee shall have all of the rights and benefits with
respect to the Loan, Obligations, any Notes, the Collateral and/or the Loan Documents and the Environmental Indemnity Agreement
held by it as fully as if the original holder thereof, and either Lender or any Lender Transferee may be designated as the sole
agent to manage the transactions and obligations contemplated therein. Notwithstanding any other provision of any Loan Document
or the Environmental Indemnity Agreement, a Lender may disclose to any Lender Transferee all information, reports, financial statements,
certificates and documents obtained under any provision of any Loan Document.

 

(f)          In
addition to the other rights provided in this Section 12.3, each Lender may, without notice to or consent from the Administrative
Agent or Borrower, sell participations to one or more Persons in or to all or a portion of its rights and obligations under the
Loan Documents and the Environmental Indemnity Agreement; provided, however, that, whether as a result of any term
of any Loan Document or of such grant or participation, (i) no such participant shall have a commitment, or be deemed to have made
an offer to commit, to make advances of the Loan hereunder, and, except as provided in the applicable option agreement, none shall
be liable for any obligation of such Lender hereunder, (ii) such Lender’s rights and obligations, and the rights and obligations
of the Loan Parties and the Secured Parties towards such Lender, under any Loan Document and the Environmental Indemnity Agreement
shall remain unchanged and each other party hereto shall continue to deal solely with such Lender, which shall remain the holder
of the Obligations in the Register, except that (A) each such participant shall be entitled to the benefit of Sections 2.8
(Capital Adequacy; Increased Costs; Illegality), 2.9 (Interest Rate Protection), and 2.10 (Libor Breakage Amount); provided,
however, that in no case shall a participant have the right to enforce any of the terms of any Loan Document, and (iii)
the consent of such participant shall not be required (either directly, as a restraint on such Lender’s ability to consent
hereunder or otherwise) for any amendments, waivers or consents with respect to any Loan Document and the Environmental Indemnity
Agreement or to exercise or refrain from exercising any powers or rights such Lender may have under or in respect of the Loan Documents
and the Environmental Indemnity Agreement (including the right to enforce or direct enforcement of the Obligations), except for
those described in clauses (iii), (iv), and (v) of Section 12.2(a) with respect to amounts, or dates
fixed for payment of amounts, to which such participant would otherwise be entitled.

 

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Section 12.4.          Indemnities.

 

(a)          Borrower
agrees to indemnify, hold harmless and defend the Administrative Agent, each Lender, and each of their respective Related Persons
(each such Person being an “Indemnitee”) from and against all Liabilities (including brokerage commissions,
fees and other compensation) that may be imposed on, incurred by or asserted against any such Indemnitee in any matter relating
to or arising out of, in connection with or as a result of (i) any Loan Document, any Obligation (or the repayment thereof), any
related transaction, or any securities filing of, or with respect to, Borrower, any Borrower Party or the Projects, (ii) any commitment
letter, proposal letter or term sheet with any Person and any contractual obligation entered into in connection with any E-Systems
or other Electronic Transmissions, (iii) any actual or prospective investigation, litigation or other proceeding, whether or not
brought by any such Indemnitee or any of its Related Persons, any holders of securities or creditors (and including attorneys’
fees in any case), whether or not any such Indemnitee, Related Person, holder or creditor is a party thereto, and whether or not
based on any securities or commercial law or regulation or any other Requirement of Law or theory thereof, including common law,
equity, contract, tort or otherwise, or (iv) any other act, event or transaction related, contemplated in or attendant to any of
the foregoing (collectively, the “Indemnified Matters”); provided, however, that Borrower
shall have no liability under this Section 12.4 to any Indemnitee with respect to any Indemnified Matter, and no Indemnitee
shall have any liability with respect to any Indemnified Matter other than (to the extent otherwise liable), to the extent such
liability has resulted from the gross negligence or willful misconduct of such Indemnitee, as determined by a court of competent
jurisdiction in a final non-appealable judgment or order. Furthermore, Borrower and each Borrower Party waives and agrees not to
assert against any Indemnitee any right of contribution with respect to any Liabilities that may be imposed on, incurred by or
asserted against any Related Person.

 

(b)          Without
limiting the foregoing, “Indemnified Matters” includes all environmental Liabilities as set forth in
Article 4 whether or not, with respect to any such environmental Liabilities, any Indemnitee is a mortgagee pursuant to any leasehold
mortgage, a mortgagee in possession, the successor-in-interest to any Related Person or the owner, lessee or operator of any property
of any Related Person through any foreclosure action, in each case except to the extent such environmental Liabilities (i) are
incurred solely following foreclosure by any Secured Party or following any Secured Party having become the successor-in-interest
to Borrower or any Borrower Party and (ii) are attributable solely to acts of such Indemnitee.

 

(c)          Any
indemnification or other protection provided to any Indemnitee pursuant to any Loan Document and all representations and warranties
made in any Loan Document shall (i) survive the termination of the Loan Commitment and the payment in full of other Obligations
and (ii) inure to the benefit of any Person that at any time held a right thereunder (as an Indemnitee or otherwise) and, thereafter,
its successors and permitted assigns.

 

(d)          In
no event shall any Indemnitee be liable on any theory of liability for any special, indirect, consequential or punitive damages
(including any loss of profits, business or anticipated savings). Each of Borrower and Borrower Parties hereby waives, releases
and agrees not to sue upon any such claim for any special, indirect, consequential or punitive damages, whether or not accrued
and whether or not known or suspected to exist in its favor.

 

Section 12.5.          Lender-Creditor
Relationship.  The relationship between the Lenders and the Administrative Agent, on
the one hand, and Borrower, on the other hand, is solely that of lender and creditor. No Secured Party has any fiduciary relationship
or duty to Borrower or Borrower Party arising out of or in connection with, and there is no agency, tenancy or joint venture relationship
between the Secured Parties and Borrower and Borrower Parties by virtue of, any Loan Document or any transaction contemplated therein.

 

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Section 12.6.          Right
of Setoff.  Each of the Administrative Agent, each Lender, and each Affiliate (including
each branch office thereof) of any of them is hereby authorized, without notice or demand (each of which is hereby waived by Borrower),
at any time and from time to time during the continuance of any Event of Default and to the fullest extent permitted by applicable
Requirements of Law, to set off and apply any and all deposits (whether general or special, time or demand, provisional or final)
at any time held and other indebtedness, claims or other obligations at any time owing by the Administrative Agent, such Lender,
or any of their respective Affiliates to or for the credit or the account of Borrower against any Obligation of Borrower or any
Borrower Party now or hereafter existing, whether or not any demand was made under any Loan Document with respect to such Obligation
and even though such Obligation may be unmatured. Each of the Administrative Agent and each Lender agrees promptly to notify Borrower
and the Administrative Agent after any such setoff and application made by such Lender or its Affiliates; provided, however,
that the failure to give such notice shall not affect the validity of such setoff and application. The rights under this Section
12.6 are in addition to any other rights and remedies (including other rights of setoff) that the Administrative Agent, the
Lenders, and their Affiliates and other Secured Parties may have.

 

Section 12.7.          Sharing
of Payments, Etc. If any Lender, directly or through an affiliate or branch office thereof,
obtains any payment of any Obligation of Borrower or any Borrower Party (whether voluntary, involuntary or through the exercise
of any right of setoff or the receipt of any Collateral or “proceeds” (as defined under the applicable
UCC) of Collateral) other than pursuant to Sections 2.8 (Capital Adequacy; Increased Costs; Illegality), 2.9 (Interest Rate
Protection), and 2.10 (Libor Breakage Amount) and such payment exceeds the amount such Lender would have been entitled to receive
if all payments had gone to, and been distributed by, the Administrative Agent in accordance with the provisions of the Loan Documents,
such Lender shall purchase for cash from other Secured Parties such participations in their Obligations as necessary for such Lender
to share such excess payment with such Secured Parties to ensure such payment is applied as though it had been received by the
Administrative Agent and applied in accordance with this Agreement (or, if such application would then be at the discretion of
Borrower, applied to repay the Obligations in accordance herewith); provided, however, that (a) if such payment is
rescinded or otherwise recovered from such Lender in whole or in part, such purchase shall be rescinded and the purchase price
therefor shall be returned to such Lender without interest and (b) such Lender shall, to the fullest extent permitted by applicable
Requirements of Law, be able to exercise all its rights of payment (including the right of setoff) with respect to such participation
as fully as if such Lender were the direct creditor of Borrower in the amount of such participation.

 

Section 12.8.          Marshaling;
Payments Set Aside. No Secured Party shall be under any obligation to marshal any property
in favor of Borrower or any Borrower Party or any other party or against or in payment of any Obligation. To the extent that any
Secured Party receives a payment from Borrower, from the proceeds of the Collateral, from the exercise of its rights of setoff,
any enforcement action or otherwise, and such payment is subsequently, in whole or in part, invalidated, declared to be fraudulent
or preferential, set aside or required to be repaid to a trustee, receiver or any other party, then to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be revived
and continued in full force and effect as if such payment had not occurred.

 

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Section 12.9.          Limitation
on Interest. It is the intention of the parties hereto to conform strictly to applicable
usury laws. Accordingly, all agreements between Borrower, Administrative Agent and Lenders with respect to the Loan are hereby
expressly limited so that in no event, whether by reason of acceleration of maturity or otherwise, shall the amount paid or agreed
to be paid to Administrative Agent and any Lender or charged by Administrative Agent or any Lender for the use, forbearance or
detention of the money to be lent hereunder or otherwise, exceed the maximum amount allowed by law. If the Loan would be usurious
under applicable law (including the laws of the State of Illinois and the laws of the United States of America), then, notwithstanding
anything to the contrary in the Loan Documents: (a) the aggregate of all consideration which constitutes interest under applicable
law that is contracted for, taken, reserved, charged or received under the Loan Documents and the Environmental Indemnity Agreement
shall under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited
on the Note by the holder thereof (or, if the Note has been paid in full, refunded to Borrower); and (b) if maturity is accelerated
by reason of an election by Administrative Agent, or in the event of any prepayment, then any consideration which constitutes interest
may never include more than the maximum amount allowed by applicable law. In such case, excess interest, if any, provided for in
the Loan Documents and the Environmental Indemnity Agreement or otherwise, to the extent permitted by applicable law, shall be
amortized, prorated, allocated and spread from the date of advance until payment in full so that the actual rate of interest is
uniform through the term hereof. If such amortization, proration, allocation and spreading is not permitted under applicable law,
then such excess interest shall be canceled automatically as of the date of such acceleration or prepayment and, if theretofore
paid, shall be credited on the Note (or, if the Note has been paid in full, refunded to Borrower). The terms and provisions of
this Section 12.9 shall control and supersede every other provision of the Loan Documents. The Loan Documents and the Environmental
Indemnity Agreement are contracts made under and shall be construed in accordance with and governed by the laws of the State of
Illinois, except that if at any time the laws of the United States of America permit Administrative Agent or the Lenders to contract
for, take, reserve, charge or receive a higher rate of interest than is allowed by the laws of the State of Illinois (whether such
federal laws directly so provide or refer to the law of any state), then such federal laws shall to such extent govern as to the
rate of interest which Administrative Agent or the Lenders may contract for, take, reserve, charge or receive under the Loan Documents
and the Environmental Indemnity Agreement.

 

Section 12.10.         Invalid
Provisions. If any provision of any Loan Document or the Environmental Indemnity Agreement
is held to be illegal, invalid or unenforceable, such provision shall be fully severable; the Environmental Indemnity Agreement
and the Loan Documents shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised
a part thereof; the remaining provisions thereof shall remain in full effect and shall not be affected by the illegal, invalid,
or unenforceable provision or by its severance therefrom; and in lieu of such illegal, invalid or unenforceable provision there
shall be added automatically as a part of such Environmental Indemnity Agreement and/or such Loan Document a provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible to be legal, valid and enforceable.

 

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Section 12.11.         Reimbursement
of Expenses.

 

(a)          Any
action taken by Borrower or any Borrower Party under or with respect to any Loan Document, even if required under any Loan Document
or at the request of any Secured Party, shall be at the expense of Borrower or such Borrower Party, and no Secured Party shall
be required under any Loan Document to reimburse any Borrower or Borrower Party therefor except as expressly provided therein.
In addition, Borrower agrees to pay or reimburse upon demand (a) the Administrative Agent for all reasonable out-of-pocket costs
and expenses incurred by it or any of its Related Persons in connection with the investigation, development, preparation, negotiation,
syndication, execution, interpretation or administration of, any modification of any term of or termination of, any Loan Document,
any commitment or proposal letter therefor, any other document prepared in connection therewith or the consummation and administration
of any transaction contemplated therein (including periodic audits in connection therewith and environmental audits and assessments),
in each case including the reasonable fees, charges and disbursements of legal counsel to the Administrative Agent or such Related
Persons, fees, costs and expenses incurred in connection with Intralinks® or any other E-System and allocated to the Loan by
the Administrative Agent in its reasonable discretion and fees, charges and disbursements of the auditors, appraisers, printers
and other of their Related Persons retained by or on behalf of any of them or any of their Related Persons, (b) the Administrative
Agent and each Lender for all reasonable costs and expenses incurred by them or any of their Related Persons in connection with
internal audit reviews, field examinations, financial investigation, and Collateral examinations, including, without limitation,
any tax service company (which shall be reimbursed, in addition to the out-of-pocket costs and expenses of such examiners, at the
per diem rate per individual charged by the Administrative Agent for its examiners), (c) each of the Administrative Agent, its
Related Persons, and each Lender for all costs and expenses incurred in connection with (i) any refinancing or restructuring of
the credit arrangements provided hereunder in the nature of a “work-out”, (ii) the enforcement or preservation
of any right or remedy under any Loan Document, any Obligation, with respect to the Collateral or any other related right or remedy
or (iii) the commencement, defense, conduct of, intervention in, or the taking of any other action with respect to, any proceeding
(including any bankruptcy or insolvency proceeding) related to Borrower or any Borrower Party or Master Tenant, Loan Document,
Obligation or related transaction (or the response to and preparation for any subpoena or request for document production relating
thereto), including reasonable fees and disbursements of counsel (including allocated costs of internal counsel), (d) costs incurred
in connection with settlement of condemnation and casualty awards, premiums for title insurance and endorsements thereto, and (e)
fees and costs for Uniform Commercial Code and litigation searches and background checks, and Rating Agency fees and expenses in
connection with a Rating Agency Confirmation, if required.

 

(b)          Borrower
shall also pay to Administrative Agent on the first (1st) day of each month during the term of the Loan, in addition to all other
amounts due under the Loan Documents, the sum of One Hundred Fifty and No/100 Dollars ($150.00) per Project, which Administrative
Agent shall apply against the cost and expenses incurred in connection with the annual on-site audit and inspection of the Projects.

 

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Section 12.12.         Approvals;
Third Parties; Conditions. All approval rights retained or exercised by Administrative
Agent or the Lenders with respect to the Leases, contracts, plans, studies and other matters are solely to facilitate Administrative
Agent’s and the Lenders’ credit underwriting, and shall not be deemed or construed as a determination that Administrative
Agent or the Lenders have passed on the adequacy thereof for any other purpose and may not be relied upon by Borrower or any other
Person. This Agreement is for the sole and exclusive use of Administrative Agent (and its successors and permitted assigns), the
Lenders (and their successors and permitted assigns and participants), and Borrower and may not be enforced, nor relied upon, by
any Person other than Administrative Agent (and its successors and permitted assigns), the Lenders (and their successors and permitted
assigns and participants), and Borrower. All conditions of the obligations of Administrative Agent and the Lenders hereunder, including
the obligation to make advances, are imposed solely and exclusively for the benefit of Administrative Agent and the Lenders, its
successors and assigns, and no other Person shall have standing to require satisfaction of such conditions or be entitled to assume
that any Lender will refuse to make advances in the absence of strict compliance with any or all of such conditions, and no other
Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be freely waived
in whole or in part by any Lender at any time in such Lender’s sole discretion.

 

Section 12.13.         Administrative
Agent and Lenders Not in Control; No Partnership. None of the covenants or other provisions
contained in this Agreement shall, or shall be deemed to, give Administrative Agent or the Lenders the right or power to exercise
control over the affairs or management of Borrower, the power of Administrative Agent and the Lenders being limited to the rights
to exercise the remedies referred to in the Environmental Indemnity Agreement or the Loan Documents. No covenant or provision of
the Environmental Indemnity Agreement or the Loan Documents is intended, nor shall it be deemed or construed, to create a partnership,
joint venture, agency or common interest in profits or income among Administrative Agent and the Lenders or any of them, on the
one hand, and Borrower, on the other hand, or to create an equity interest in the Projects in Administrative Agent or any Lender.
None of Administrative Agent nor any Lender undertakes or assumes any responsibility or duty to Borrower or to any other Person
with respect to the Projects or the Loan, except as expressly provided in the Environmental Indemnity Agreement and the Loan Documents;
and notwithstanding any other provision of the Environmental Indemnity Agreement or the Loan Documents: (a) none of Administrative
Agent or any Lender are, and shall not be construed as, a partner, joint venturer, alter ego, manager, controlling person or other
business associate or participant of any kind of Borrower or its stockholders, members, or partners and Administrative Agent and
the Lenders do not intend to ever assume such status; (b) Administrative Agent and the Lenders shall in no event be liable for
any Debts, expenses or losses incurred or sustained by Borrower; and (c) Administrative Agent and the Lenders shall not be deemed
responsible for or a participant in any acts, omissions or decisions of Borrower or its stockholders, members, or partners. Administrative
Agent and the Lenders and Borrower disclaim any intention to create any partnership, joint venture, agency or common interest in
profits or income among the Administrative Agent and the Lenders or any of them, on the one hand, and Borrower, on the other hand,
or to create an equity interest in the Projects in Administrative Agent or the Lenders, or any sharing of liabilities, losses,
costs or expenses.

 

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Section
12.14. Contest of Certain Claims. Borrower may contest the validity of Taxes or any mechanic’s or
materialman’s lien asserted against any Project so long as (a) Borrower notifies Administrative Agent that it intends to
contest such Taxes or liens, as applicable, (b) Borrower provides Administrative Agent with an indemnity, bond or other security
reasonably satisfactory to Administrative Agent assuring the discharge of Borrower’s obligations for such Taxes or liens,
as applicable, including interest and penalties, (c) Borrower is diligently contesting the same by appropriate legal proceedings
in good faith and at its own expense and concludes such contest prior to the tenth (10th) day preceding the earlier to occur of
the Maturity Date or the date on which any Project is scheduled to be sold for non-payment, (d) Borrower promptly upon final determination
thereof pays the amount of any such Taxes or liens, as applicable, together with all costs, interest and penalties which may be
payable in connection therewith, and (e) notwithstanding the foregoing, Borrower shall immediately upon request of Administrative
Agent pay any such Taxes or liens, as applicable, notwithstanding such contest if, in the opinion of Administrative Agent, any
Project or any part thereof or interest therein may be in danger of being sold, forfeited, foreclosed, terminated, canceled or
lost. Administrative Agent may pay over any cash deposit or part thereof to the claimant entitled thereto at any time when, in
the reasonable judgment of Administrative Agent, the entitlement of such claimant is established.

 

Section
12.15.  Time of the Essence. Time is of the essence with respect to this Agreement.

 

Section
12.16. Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of Administrative
Agent, the Lenders and Borrower and their respective successors and assigns, provided that neither Borrower nor any other Borrower
Party shall, without the prior written consent of the Lenders, assign any of its rights, duties or obligations hereunder.

 

Section
12.17. Renewal, Extension or Rearrangement. All provisions of the Environmental Indemnity Agreement and
the Loan Documents shall apply with equal effect to each and all promissory notes and amendments thereof hereinafter executed which
in whole or in part represent a renewal, extension, increase or rearrangement of the Loan.

 

Section
12.18.  Waivers.

 

(a)          No
course of dealing on the part of Administrative Agent or the Lenders or their respective officers, employees, consultants or agents,
nor any failure or delay by Administrative Agent or any Lender with respect to exercising any right, power or privilege of Administrative
Agent or the Lenders under the Environmental Indemnity Agreement and any of the Loan Documents, shall operate as a waiver thereof.

 

(b)          Borrower
hereby waives any right under the UCC or any other applicable law to receive notice and/or copies of any filed or recorded financing
statements, amendments thereto, continuations thereof or termination statements and releases and excuses Administrative Agent and
each Lender from any obligation under the UCC or any other applicable law to provide notice or a copy of any such filed or recorded
documents.

 

Section
12.19. Cumulative Rights; Joint and Several Liability.  Rights and remedies of Administrative Agent (on
behalf of the Lenders) under the Environmental Indemnity Agreement and the Loan Documents shall be cumulative, and the exercise
or partial exercise of any such right or remedy shall not preclude the exercise of any other right or remedy. If more than one
person or entity has executed this Agreement as “Borrower,” the obligations of all such persons or entities
hereunder shall be joint and several.

 

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Section
12.20. Singular and Plural. Words used in this Agreement, the other Loan Documents and the Environmental
Indemnity Agreement, in the singular, where the context so permits, shall be deemed to include the plural and vice versa. The definitions
of words in the singular in this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement shall apply to
such words when used in the plural where the context so permits and vice versa.

 

Section
12.21. Exhibits and Schedules. The exhibits and schedules attached to this Agreement are incorporated
herein and shall be considered a part of this Agreement for the purposes stated herein.

 

Section
12.22. Titles of Articles, Sections and Subsections. All titles or headings to articles, sections, subsections
or other divisions of this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement or the exhibits hereto
and thereto are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to
the other content of such articles, sections, subsections or other divisions, such other content being controlling as to the agreement
between the parties hereto.

 

Section
12.23. Promotional Material. Borrower authorizes Administrative Agent and any Lender to issue press releases,
advertisements and other promotional materials in connection with Administrative Agent’s or such Lender’s own promotional
and marketing activities, subject to Borrower’s reasonable approval of the form of such materials, and such materials may
describe the Loan in general terms and Administrative Agent’s and such Lender’s participation therein in the Loan.
All references to Administrative Agent or any Lender contained in any press release, advertisement or promotional material issued
by Borrower shall be approved in writing by Administrative Agent in advance of issuance.

 

Section
12.24. Survival. All of the representations, warranties, covenants, and indemnities hereunder (including
environmental matters under Article 4), under the indemnification provisions of the other Loan Documents and under the Environmental
Indemnity Agreement, shall survive the repayment in full of the Loan and the release of the liens evidencing or securing the Loan,
and shall survive the transfer (by sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title
and interest in and to the Projects to any party, whether or not an Affiliate of Borrower.

 

Section
12.25. WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER, ADMINISTRATIVE AGENT AND
EACH LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, OR THE ENVIRONMENTAL INDEMNITY AGREEMENT,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER PARTY OR ANY EXERCISE BY
ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS AND THE ENVIRONMENTAL INDEMNITY AGREEMENT OR IN ANY WAY RELATING
TO THE LOAN OR THE PROJECTS (INCLUDING, WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT, AND ANY CLAIM OR DEFENSE
ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). THIS WAIVER IS A MATERIAL INDUCEMENT
FOR ADMINISTRATIVE AGENT AND EACH LENDER TO ENTER INTO THIS AGREEMENT.

 

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Section
12.26. Waiver of Punitive or Consequential Damages. None of Administrative Agent, any Lender nor Borrower
shall be responsible or liable to the other or to any other Person for any punitive, exemplary or consequential damages which may
be alleged as a result of the Loan or the transaction contemplated hereby, including any breach or other default by any party hereto.
Borrower represents and warrants to Administrative Agent and each Lender that as of the Closing Date neither Borrower nor any Borrower
Party has any claims against Administrative Agent or any Lender in connection with the Loan.

 

Section
12.27.  Governing Law. UNLESS OTHERWISE NOTED THEREIN TO THE CONTRARY, THE LOAN DOCUMENTS AND
THE ENVIRONMENTAL INDEMNITY AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES THEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS (WITHOUT GIVING EFFECT TO ILLINOIS’ PRINCIPLES
OF CONFLICTS OF LAW) AND APPLICABLE UNITED STATES FEDERAL LAW, EXCEPT FOR THOSE PROVISIONS IN THE LOAN DOCUMENTS AND THE ENVIRONMENTAL
INDEMNITY PERTAINING TO THE CREATION, PERFECTION OR VALIDITY OF OR EXECUTION ON LIENS OR SECURITY INTERESTS ON PROPERTY LOCATED
IN THE STATES WHERE THE PROJECTS ARE LOCATED, WHICH PROVISIONS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATES WHERE THE PROJECTS ARE LOCATED AND APPLICABLE UNITED STATES FEDERAL LAW.

 

Section
12.28.  Entire Agreement. This Agreement, the other Loan Documents and the Environmental Indemnity
Agreement embody the entire agreement and understanding between Administrative Agent and each Lender and Borrower and supersede
all prior agreements and understandings between such parties relating to the subject matter hereof and thereof. Accordingly, the
Loan Documents and the Environmental Indemnity Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent
oral agreements of the parties. There are no unwritten oral agreements between the parties. If any conflict or inconsistency exists
between the Term Sheet and this Agreement, any of the other Loan Documents, or the Environmental Indemnity Agreement, the terms
of this Agreement, the other Loan Documents, and the Environmental Indemnity Agreement, as applicable, shall control.

 

Section
12.29.  Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall constitute an original, but all of which shall constitute one document.

 

Section
12.30.  Consents and Approvals. To the extent that Administrative Agent, Lenders and/or Required
Lenders provide any consent or approval as provided for in this Agreement, such consent shall be limited to the specific matter
approved and shall NOT be construed to (a) relieve Borrower from compliance with all of the other terms and obligations of this
Agreement, or (b) constitute a consent to any further similar action (as to which a prospective consent or approval shall be required
and may not necessarily be granted), or (c) constitute a consent to any other obligation to which any Lender may be a party.

 

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Section
12.31.  Right of First Refusal. Borrower shall not borrow any money for the acquisition of healthcare
real estate asset(s) or refinancing of the Loan (other than obtaining a HUD Commitment and any related funding) without first providing
Administrative Agent and Lenders with written notice of the intention to incur said financing, which notice shall contain all terms
and conditions of the offered and contemplated financing to be obtained from a third party (“Financing Notice”).
Borrower shall give Administrative Agent the exclusive first right to provide said financing on the same terms and conditions as
contemplated in the Financing Notice. Administrative Agent shall have the right to provide said financing to Borrower by sending
Borrower notice of Administrative Agent’s intent to provide the financing (“Acceptance Notice”)
within five (5) Business Days of receipt by Administrative Agent of the Financing Notice. If Administrative Agent timely sends
an Acceptance Notice to Borrower, then Administrative Agent or Lenders and Borrower shall consummate the proposed loan in accordance
with the terms and conditions of the Financing Notice within sixty (60) days after receipt of the Acceptance Notice by Borrower.
Borrower and Administrative Agent shall reasonably cooperate with each other to permit such Lender or Lenders to ascertain if Administrative
Agent wants to provide such financing, and if so, to close said loan and to reasonably negotiate all open terms and conditions
of said loan. If no Lender timely sends an Acceptance Notice to Borrower, Borrower may close said loan under the terms and conditions
of the Financing Notice with the applicable lender referenced therein, subject to the other provisions of this Agreement.

 

Section
12.32.  Effectiveness of Facsimile Documents and Signatures. The Loan Documents and Environmental
Indemnity Agreement may be transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures shall,
subject to applicable law, have the same force and effect as manually signed originals and shall be binding on all parties to the
Loan Documents and Environmental Indemnity Agreement, as applicable. Administrative Agent may also require that any such documents
and signatures be confirmed by a manually signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile document or signature.

 

Section
12.33.  Venue. EACH PARTY HERETO HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN THE COUNTY OF COOK, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT, SUBJECT TO ADMINISTRATIVE AGENT’S
ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED
IN SUCH COURTS. EACH PARTY HERETO EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE
OF FORUM NON CONVENIENS. BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS
MAY BE MADE UPON BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER, AT THE ADDRESS SET
FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

 

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Section
12.34.  Important Information Regarding Procedures for Requesting Credit. Each of the Administrative
Agent and Lenders hereby notifies the Borrower Parties that in order to help the government fight the funding of terrorism and
money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies
each individual or business that requests credit. Accordingly, in connection with the Loan or any other request for credit, Administrative
Agent and the Lenders will ask for the business name, business address, Employer Identification Number, and other information which
allows them to identify each Borrower Party, and may ask for other identifying documents showing existence of each Borrower Party.

 

Section
12.35.  Method of Payment. All amounts payable under this Agreement and the other Loan Documents
must be paid by Borrower in accordance with Section 2.6(c). Payments in the form of cash, money order, third party payment,
cashier’s check, a check drawn on a foreign bank or non-bank financial institution, or any form of payment other than those
provided in the preceding sentence will not be accepted.

 

Section
12.36.  Non-Public Information; Confidentiality; Disclosure. Borrower authorizes Administrative
Agent and each Lender to disclose information about Borrower and any Borrower Party that Administrative Agent or such Lender may
at any time possess to any Affiliate of a Lender or Administrative Agent, whether such information was supplied by Borrower or
otherwise obtained by Administrative Agent or the Lender; provided to the extent Administrative Agent or any Lender receives material
non-public information hereunder concerning Borrower, the Borrower Parties, and the Master Tenant and their Affiliates and agrees
to use such information in compliance with all relevant policies, procedures and contractual obligations and applicable Requirements
of Laws (including United States federal and state securities laws and regulations).

 

Section
12.37.  Post-Closing Obligations of Borrower. Notwithstanding the fact that Borrower have not
satisfied certain of the conditions to the advance of the Loan proceeds as of the Closing Date, Lenders have agreed to advance
the proceeds of the Loan to Borrower, subject to the satisfaction of the other conditions to funding contained herein and each
of the requirements set forth in Schedule 12.37 attached hereto. Borrower shall complete the same (or cause the same
to be completed) within the time periods specified in Schedule 12.37, which time period may be extended by Administrative
Agent in its sole discretion.

 

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Section
12.38.  Release and Waiver Regarding Special Audits. Borrower and Lenders acknowledge that from
time to time during the term of the Loan, one or more Lenders and/or Borrower may request that GE Capital provide Borrower and/or
the Lenders (collectively, the “Recipient”) with certain internally generated reports (whether oral and/or
written, the “Reports”), which Reports may include oral and/or written information, assessments, notes,
memoranda and analyses prepared by employees of GE Capital for the limited purpose of preparing an audit of the progress of one
or more of the Projects has made with respect to a plan of correction (or similar remedial obligation of Borrower or any Operator
under any Healthcare Laws) that may be issued from time to time with respect to one or more of the Projects. With respect to any
Reports that may be provided to the Recipient from time to time during the term of the Loan, Lenders and Borrower hereby acknowledge
and agree as follows: (a) the Reports may be prepared based on procedures that may not include all procedures deemed necessary
for the Recipient’s own purposes; (b) GE Capital will not be able or willing to make any recommendations based on the Reports
and GE Capital shall not in any way be deemed a consultant, agent or other representative to the Recipient in any manner; (c) the
Recipient does not acquire any rights as a result of the disclosure of the Reports and its access thereto, and GE Capital assumes
no duties or obligations in connection with, or as a result of, such access; (d) the Recipient is not entitled to rely on the Report;
(e) the Recipient will not distribute or disclose the Reports or the information contained therein to any third party, except if
compelled by legal process, and it will, to the extent permitted by applicable Law, indemnify and hold harmless GE Capital, together
with its employees, officers, advisors and Affiliates from and against any and all claims, losses or expenses (including attorneys’
fees) arising as a result of GE Capital having disclosed the Reports to the Recipient; (f) the Recipient waives its right to recover
from, and releases and discharges any legal action against, GE Capital with respect to any and all suits, actions, proceedings,
investigations, demands, claims, liabilities, fines, penalties, liens, judgments, losses, injuries, damages, settlement expenses
or costs of whatever kind or nature, whether direct or indirect, known or unknown, contingent or otherwise, including, without
limitation, attorneys’ and experts’ fees and expenses, and investigation and remediation costs that may arise on account
of or in any way be connected with the Report; and (g) and with respect to the Reports, GE Capital is not acting as an agent, fiduciary
or representative for the Recipient, and the Recipient will (i) make its own independent investigation of the subject matter of
the Reports and (ii) be solely responsible for its own review, assessments, conclusions and decisions with respect to the Loan,
the Projects and the relevant Borrower and/or Operator.

 

ARTICLE
XIII

 

LIMITATIONS
ON LIABILITY

 

Section
13.1.  Limitation on Liability.

 

(a)          Subject
to the qualifications below, neither the Administrative Agent nor any Lender shall enforce the liability and obligation of Borrower
to perform and observe the Obligations by any action or proceeding wherein a money judgment shall be sought against Borrower, except
that Administrative Agent and the Lenders may bring a foreclosure action, an action for specific performance or any other appropriate
action or proceeding to enable Administrative Agent and the Lenders to enforce and realize upon its interest under the Note, this
Agreement, the Mortgage and the other Loan Documents, or in the Projects, or any other Collateral given to Administrative Agent
and the Lenders pursuant to the Loan Documents; provided, however, that, except as specifically provided herein,
any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest
in the Projects and in any other collateral given to Administrative Agent and the Lenders to secure the Obligations, and Administrative
Agent and each Lender, as applicable, by accepting the Note, this Agreement, the Mortgage and the other Loan Documents, shall not
sue for, seek or demand any deficiency judgment against Borrower in any such action or proceeding under or by reason of or under
or in connection with the Note, this Agreement, the Mortgage or the other Loan Documents.

 

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(b)          The
provisions of this Section 13.1 shall not, however, (i) constitute a waiver, release or impairment of any Obligation evidenced
or secured by any of the Loan Documents; (ii) impair the right of Administrative Agent or any Lender to name Borrower as a party
defendant in any action or suit for foreclosure and sale under the Mortgage; (iii) affect the validity or enforceability of any
guaranty made in connection with the Loan or any of the rights and remedies of Administrative Agent or any Lender thereunder; (iv)
impair the right of Administrative Agent or any Lender to obtain the appointment of a receiver; (v) impair the enforcement of the
Assignment of Leases and Rents; (vi) constitute a prohibition against Administrative Agent or any Lender to commence any appropriate
action or proceeding in order for Administrative Agent or any Lender to exercise its remedies against the Projects; or (vii) constitute
a waiver of the right of Administrative Agent or any Lender to enforce the liability and obligation of Borrower, by money judgment
or otherwise, to the extent of any loss, damage, cost, expense, liability, claim or other obligation (including attorneys’
fees and costs reasonably incurred), causes of action, suits, claims, demands and judgments of any nature or description whatsoever,
which may be imposed upon, incurred by or awarded against Administrative Agent or any Lender or any affiliate thereof as a result
of, arising out of or in connection with (and Borrower shall be personally liable and shall indemnify Administrative Agent and
such Lender for) the following:

 

		(A)	any failure by Borrower or any Guarantor or any of their Affiliates or their respective employees,
managers, contractors, agents or other representatives after the occurrence and during the continuance of any Event of Default
to apply any portion of the gross income from the Projects at any time received by or payable to Borrower or any Guarantor or any
of their Affiliates or their respective employers, managers, contractors, agents or other representatives to the Loan or to customary
operating expenses of the Projects;

 

		(B)	Borrower’s commission of a criminal act;

 

		(C)	Borrower’s failure to permit on-site inspections of any Project or to provide the financial
reports and other financial information, each as required by, and in accordance with the terms and provisions of, this Agreement
and the other Loan Documents;

 

		(D)	the failure by Borrower or any Borrower Party to apply any funds derived from the Projects, including
Security Deposits, Adjusted Revenue, insurance proceeds and condemnation awards as required by the Loan Documents;

 

		(E)	any intentional misrepresentation by Borrower or any Borrower Party made in or in connection with
the Loan Documents or the Loan;

 

		(F)	Borrower’s collection of rents more than one month in advance or entering into or modifying
or canceling Leases, or receipt of monies by Borrower or any Borrower Party in connection with the modification or cancellation
of any Leases, in violation of this Agreement or any of the other Loan Documents;

 

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		(G)	Borrower, any Guarantor or any Affiliate of any of them contesting or in any way interfering with,
directly or indirectly (collectively, a “Contest”), any foreclosure action or sale commenced by Administrative
Agent or any Lender or with any other enforcement of Administrative Agent’s or any Lender’s rights, powers or remedies
under any of the Loan Documents or under any document evidencing, securing or otherwise relating to any of the Security (whether
by making any motion, bringing any counterclaim, claiming any defense, seeking any injunction or other restraint, commencing any
action seeking to consolidate any such foreclosure or other enforcement with any other action, or otherwise);

 

		(H)	Borrower’s failure to turn over to Administrative Agent all Security Deposits upon Administrative
Agent’s demand following an Event of Default;

 

		(I)	any amendment or modification of the Master Lease, or any guaranty thereof, or any termination
or surrender of the Master Lease or any guaranty thereof (except only to the extent expressly permitted under this Agreement),
without the prior written consent of Administrative Agent in each instance;

 

		(J)	Borrower’s failure to maintain insurance as required by this Agreement or to pay any Taxes
or assessments affecting the Projects;

 

		(K)	damage or destruction to any Project caused by the negligent or intentional acts or omissions of
Borrower, its agents, employees, or contractors;

 

		(L)	Borrower’s failure to perform its obligations under the Environmental Indemnity Agreement
or with respect to environmental matters under Article 4;

 

		(M)	Borrower’s failure to pay for any loss, liability or expense (including attorneys’
fees) incurred by Administrative Agent or any Lender arising out of any claim or allegation made by Borrower, its successors or
assigns, or any creditor of Borrower, that this Agreement or the transactions contemplated by the Loan Documents and the Environmental
Indemnity Agreement establish a joint venture, partnership or other similar arrangement among Borrower, the Administrative Agent,
or any Lender;

 

		(N)	any brokerage commission or finder’s fees claimed in connection with the transactions contemplated
by the Loan Documents;

 

		(O)	uninsured damage to any Project resulting from acts of terrorism;

 

		(P)	the physical waste of any Project;

 

		(Q)	the removal or disposal of any personal property from any Project in which Administrative Agent
or the Lenders have a security interest in violation of the terms and conditions of the Loan Documents;

 

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		(R)	the payment of any distributions to Borrower or any Guarantor or any of their Affiliates, employees,
managers or contractors, other than as permitted in this Agreement; or

 

		(S)	any fees paid by Borrower to any Guarantor or any of their Affiliates, employees, managers or contractors
after the occurrence and during the continuation of an Event of Default under the Loan Documents.

 

(c)          Notwithstanding
anything to the contrary in this Agreement, the Note or any of the Loan Documents, all of the Obligations shall be fully recourse
to Borrower and Borrower shall be personally liable therefor in the event of: (i) any Sale or Pledge of any Project or any part
thereof or a Sale or Pledge of an interest in any Restricted Party in breach of any of the covenants in this Agreement or the Mortgage,
(ii) Borrower’s or SPE Party’s failure to comply with the covenants in Section 6.17 hereof; (iii) the commission
of fraud by Borrower or any Borrower Party in connection with the Loan, or (iv) the filing by Borrower or any Borrower Party or
the filing against Borrower or any Borrower Party by Borrower, any Borrower Party or any Affiliate of Borrower of any proceeding
for relief under any federal or state bankruptcy, insolvency or receivership laws or any assignment for the benefit of creditors
made by Borrower or any Borrower Party or the consenting to, acquiescing in or joining in any such proceeding by Borrower or Borrower
Party.

 

(d)          Borrower
also shall be personally liable to Administrative Agent and the Lenders for any and all attorneys’ fees and expenses and
court costs incurred by Administrative Agent and the Lenders in enforcing this Section 13.1 or otherwise incurred by Administrative
Agent or any Lender in connection with any of the foregoing matters, regardless whether such matters are legal or equitable in
nature or arise under tort or contract law. The limitation on the personal liability of Borrower in this Section 13.1 shall
not modify, diminish or discharge the personal liability of any Guarantor. Nothing herein shall be deemed to be a waiver of any
right which Administrative Agent or any Lender may have under Sections 506(a), 506(b), 1111(b) or any other provision of the United
States Bankruptcy Code, as such sections may be amended, or corresponding or superseding sections of the Bankruptcy Amendments
and Federal Judgeship Act of 1984, to file a claim for the full amount due to Administrative Agent and the Lenders under the Loan
Documents or to require that all collateral shall continue to secure the amounts due under the Loan Documents.

 

Section
13.2.  Limitation on Liability of Lender’s Officers, Employees, etc. Any obligation or
liability whatsoever of Administrative Agent or any Lender which may arise at any time under this Agreement, any other Loan Document,
or the Environmental Indemnity Agreement shall be satisfied, if at all, out of the Administrative Agent’s or such Lender’s
assets only. No such obligation or liability shall be personally binding upon, nor shall resort for the enforcement thereof be
had to, the property of any of Administrative Agent’s or such Lender’s shareholders, directors, officers, employees
or agents, regardless of whether such obligation or liability is in the nature of contract, tort or otherwise.

 

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ARTICLE
XIV

cross-guaranty

 

Section
14.1.  Cross-Guaranty. Each Borrower hereby agrees that such Borrower is jointly and
severally liable for, and hereby absolutely and unconditionally guarantees to the Administrative Agent and Lenders and their respective
successors and assigns, the full and prompt payment (whether at stated maturity, by acceleration or otherwise) and performance
of, all Obligations owed or hereafter owing to Administrative Agent and Lenders by each other Borrower. Each Borrower agrees that
its guaranty obligation hereunder is a continuing guaranty of payment and performance and not of collection, that its obligations
under this Article XIV shall not be discharged until payment and performance, in full, of the Obligations has occurred,
and that its obligations under this Article XIV shall be absolute and unconditional, irrespective of, and unaffected by:

 

(a)          the
genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any other Loan Document
or any other agreement, document or instrument to which any Borrower is or may become a party;

 

(b)          the
absence of any action to enforce this Agreement (including this Article XIV) or any other Loan Document or the waiver or
consent by Administrative Agent and Lenders with respect to any of the provisions thereof;

 

(c)          the
existence, value or condition of, or failure to perfect its Lien against, any security for the Obligations or any action, or the
absence of any action, by Agent and Lenders in respect thereof (including the release of any such security);

 

(d)          the
insolvency of any Borrower or Guarantor; or

 

(e)          any
other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor.

 

Each Borrower
shall be regarded, and shall be in the same position, as principal debtor with respect to the Obligations guaranteed hereunder.

 

Section
14.2.  Waivers By Borrower. Each Borrower expressly waives all rights it may have now
or in the future under any statute, or at common law, or at law or in equity, or otherwise, to compel Administrative Agent or Lenders
to marshal assets or to proceed in respect of the Obligations guaranteed hereunder against any other Borrower, any other party
or against any security for the payment and performance of the Obligations before proceeding against, or as a condition to proceeding
against, such Borrower. It is agreed among each Borrower, Administrative Agent and Lenders that the foregoing waivers are of the
essence of the transaction contemplated by this Agreement and the other Loan Documents and that, but for the provisions of this
Article XIV and such waivers, Administrative Agent and Lenders would decline to enter into this Agreement.

 

Section
14.3.  Benefit of Guaranty. Each Borrower agrees that the provisions of this Article
XIV are for the benefit of Administrative Agent and Lenders and their respective successors, transferees, endorsees and assigns,
and nothing herein contained shall impair, as between any other Borrower and Administrative Agent or Lenders, the obligations of
such other Borrower under the Loan Documents.

 

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Section
14.4.  Waiver of Subrogation, Etc. Notwithstanding anything to the contrary in this Agreement
or in any other Loan Document, and except as set forth in Section 14.7, each Borrower hereby expressly and irrevocably waives
any and all rights at law or in equity to subrogation, reimbursement, exoneration, contribution, indemnification or set off and
any and all defenses available to a surety, guarantor or accommodation co-obligor. Each Borrower acknowledges and agrees that this
waiver is intended to benefit Administrative Agent and Lenders and shall not limit or otherwise affect such Borrower's liability
hereunder or the enforceability of this Article XIV, and that Agent, Lenders and their respective successors and assigns
are intended third party beneficiaries of the waivers and agreements set forth in this Section 14.4.

 

Section
14.5.  Election of Remedies. If Administrative Agent or any Lender may, under applicable law,
proceed to realize its benefits under any of the Loan Documents giving Administrative Agent or such Lender a Lien upon any Collateral,
whether owned by any Borrower or by any other Person, either by judicial foreclosure or by non-judicial sale or enforcement, Administrative
Agent or any Lender may, at its sole option, determine which of its remedies or rights it may pursue without affecting any of its
rights and remedies under this Article XIV. If, in the exercise of any of its rights and remedies, Administrative Agent
or any Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment against any Borrower
or any other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, each
Borrower hereby consents to such action by Administrative Agent or such Lender and waives any claim based upon such action, even
if such action by Administrative Agent or such Lender shall result in a full or partial loss of any rights of subrogation that
each Borrower might otherwise have had but for such action by Administrative Agent or such Lender. Any election of remedies that
results in the denial or impairment of the right of Administrative Agent or any Lender to seek a deficiency judgment against any
Borrower shall not impair any other Borrower's obligation to pay the full amount of the Obligations. In the event Administrative
Agent or any Lender shall bid at any foreclosure or trustee's sale or at any private sale permitted by law or the Loan Documents,
Administrative Agent or such Lender may bid all or less than the amount of the Obligations and the amount of such bid need not
be paid by Administrative Agent or such Lender but shall be credited against the Obligations. The amount of the successful bid
at any such sale, whether Administrative Agent, Lender or any other party is the successful bidder, shall be conclusively deemed
to be the fair market value of the Collateral and the difference between such bid amount and the remaining balance of the Obligations
shall be conclusively deemed to be the amount of the Obligations guaranteed under this Article XIV, notwithstanding that
any present or future law or court decision or ruling may have the effect of reducing the amount of any deficiency claim to which
Administrative Agent or any Lender might otherwise be entitled but for such bidding at any such sale.

 

Section
14.6.  Limitation. Notwithstanding any provision herein contained to the contrary, each
Borrower's liability under this Article XIV (which liability is in any event in addition to amounts for which such Borrower
is primarily liable under Article II) shall be limited to an amount not to exceed as of any date of determination the greater
of:

 

    	105

    	 

    

 

(a)          the
net amount of all Loan advanced to any other Borrower under this Agreement and then re-loaned or otherwise transferred to, or for
the benefit of, such Borrower; and

 

(b)          the
amount that could be claimed by Agent and Lenders from such Borrower under this Article XIV without rendering such claim
voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into account, among other things, such Borrower's
right of contribution and indemnification from each other Borrower under Section 14.7.

 

Section
14.7.  Contribution with respect to Guarantee Obligations.

 

(a)          To
the extent that any Borrower shall make a payment under this Article XIV of all or any of the Obligations (other than Loan
made to that Borrower for which it is primarily liable) (a “Guarantor Payment”) that, taking into account all
other Guarantor Payments then previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would
otherwise have paid if each Borrower had paid the aggregate Obligations satisfied by such Guarantor Payment in the same proportion
that such Borrower's “Allocable Amount” (as defined below) (as determined immediately prior to such Guarantor Payment)
bore to the aggregate Allocable Amounts of each of the Borrowers as determined immediately prior to the making of such Guarantor
Payment, then, following indefeasible payment in full in cash of the Obligations and termination of the Commitments, such Borrower
shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower for the
amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.

 

(b)          As
of any date of determination, the “Allocable Amount” of any Borrower shall be equal to the maximum amount of
the claim that could then be recovered from such Borrower under this Article XIV without rendering such claim voidable or
avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act,
Uniform Fraudulent Conveyance Act or similar statute or common law.

 

(c)          This
Section 14.7 is intended only to define the relative rights of Borrowers and nothing set forth in this Section 14.7
is intended to or shall impair the obligations of Borrowers, jointly and severally, to pay any amounts as and when the same shall
become due and payable in accordance with the terms of this Agreement, including Section 14.1. Nothing contained in this
Section 14.7 shall limit the liability of any Borrower to pay the Loan made directly or indirectly to that Borrower and
accrued interest, fees and expenses with respect thereto for which such Borrower shall be primarily liable.

 

(d)          The
parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of the Borrower
to which such contribution and indemnification is owing.

 

(e)          The
rights of the indemnifying Borrower against each other Borrower under this Section 14.7 shall be exercisable upon the full
and indefeasible payment of the Obligations.

 

    	106

    	 

    

 

Section
14.8.  Liability Cumulative. The liability of Borrower under this Article XIV
is in addition to and shall be cumulative with all liabilities of each Borrower to Administrative Agent and Lenders under this
Agreement and the other Loan Documents to which such Borrower is a party or in respect of any Obligations or obligation of the
other Borrower, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

 

[Signatures Begin on
Following Page]

 

    	107

    	 

    

 

EXECUTED as of the date
first written above.

 

	ADMINISTRATIVE AGENT:	GENERAL ELECTRIC CAPITAL CORPORATION,
	 	a Delaware corporation
	 	 	 
	 	By: 	/s/ Dague Retzlaff
	 	Dague Retzlaff, its Duly Authorized Signatory
	 	 	 
	LENDERS:	GENERAL ELECTRIC CAPITAL CORPORATION,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Dague Retzlaff
	 	Dague Retzlaff, its Duly Authorized Signatory

 

Signature Page – Loan Agreement

[Cornerstone Portfolio]

 

    	 

    	 

    

 

	BORROWER:	CHP PORTLAND, LLC,
	 	CHP MEDFORD 1, LLC,
	 	CHP FRIENDSWOOD SNF, LLC,
	 	each, a Delaware limited liability company
	 	 	 	 
	 	By:     	Cornerstone Core Properties REIT, Inc.,
	 	 	a Maryland corporation, its Manager
	 	 	 	 
	 	 	By: 	/s/ Kent Eikanas
	 	 	 	Kent Eikanas, its Chief Operating Officer

 

Signature Page – Loan Agreement

[Cornerstone Portfolio]

 

    	 

    	 

    

 

EXHIBIT
A

 

Description
of Projects

 

	Part 1.          Portland
    Project:
	 	 	 
	Name of Facility:	 	Fernhill Manor
	Address of Land:	 	5737 NE 37th Avenue
	 	 	Portland, Oregon
	 	 	 
	Number of Residential Units:	 	51 skilled nursing beds (up to 62 permitted under existing Conditional Use Permit)
	Number of Parking Spaces:	 	10
	 	 	 
	Name of Master Tenant:	 	Fernhill Estates LLC, an Oregon limited liability company doing business as Fernhill Estates
	 	 	 
	Name of Property Manager:	 	Dakavia Management, Corp.
	 	 	 
	Allocated Loan Amount:	 	$5,800,000 (collectively with the Project described on Part 2 of this Exhibit A, allocated between such Projects in such manner as Administrative Agent may deem reasonably satisfactory)
	 	 	 
	Legal Description of Land:	 	 

 

Lots 12, 13, 14 and 15, the East 50 feet of Lot 3, the East
50 feet of Lot 4 and the South 30 feet of Lot 5, Block 2, KENNEDY'S ADDITION TO EAST PORTLAND, in the City of Portland, Multnomah
County, Oregon.

 

EXHIBIT
A

 

    	 

    	 

    

 

	Part 2.          Sheridan
    Project
	 	 	 
	Name of Facility:	 	Sheridan Care Center
	Address of Land:	 	411 SE Sheridan Road
	 	 	Sheridan, Oregon
	 	 	 
	Number of Residential Units:	 	51 skilled nursing beds
	Number of Parking Spaces:	 	24
	 	 	 
	Name of Master Tenant:	 	Sheridan Care Center LLC, an Oregon limited liability company doing business as Sheridan Care Center
	 	 	 
	Name of Property Manager:	 	Dakavia Management, Corp.
	 	 	 
	Allocated Loan Amount:	 	Allocated Loan Amount: $5,800,000 (collectively with the Project described on Part 1 of this Exhibit A, allocated between such Projects in such manner as Administrative Agent may deem reasonably satisfactory)
	 	 	 
	Legal Description of Land:	 	 

 

Parcel 1:

 

A tract of land in Section 35, Township 5 South, Range 6 West
of the Willamette Meridian in Yamhill County, Oregon, more particularly described as follows:

 

Beginning at a point in the center of Sheridan Road, which said
point is reached by running South 78° East 455.40 feet; South 77° East 50.16 feet and South 70° 15' East 142.56 feet
from the intersection of the center lines of Schley Street and Second Street in South Sheridan, said beginning point being the
Southeast corner of that certain tract conveyed by Helen and Robert Dixon to Mark and Bernice Smith by Deed as recorded on Page
334 of Volume 148 of the Deed Records of Yamhill County, and being also the Southwest corner of that certain tract described in
Deed from Emil and Maude Schuman and others to George and Delia Epley as recorded on Page 298 of Volume 103 of the Deed Records
of Yamhill County, and running thence from said point of beginning North 1° East along the East line of said Smith Tract, 428.0
feet to the South bank of the Yamhill River, from which point an iron pipe bears South 1° West 40.0 feet; thence continuing
North 1° East to the North line of said Graves Claim; thence North 77° West along said Claim line 96.8 feet; thence South
1° West to a point on the South bank of the Yamhill River, from which point an iron pipe bears South 1° West 40.0 feet;
thence continuing South 1° West 412.4 feet to a point in the center of Sheridan Road, from which point an iron pipe bears North
1° East 26.4 feet; thence South 70° 15' East along center of said Road, 100.0 feet to the place of beginning.

 

EXHIBIT
A

 

    	 

    	 

    

 

Parcel 2:

 

Being a part of the Charles B. Graves Donation Land Claim No.
57, Notification No. 5329 in Section 35, Township 5 South, Range 6 West of the Willamette Meridian in Yamhill County, Oregon, said
part being described as follows:

 

Beginning at a point which is North 1° East 207 feet from
a stone set South 78° East 6.90 chains from the intersection of the lines of Schley and Second Streets in South Sheridan in
Yamhill County; thence North 1° East 340.8 feet to the North line of said Graves Donation Land Claim; thence South 77°
East to the Northwest corner of a certain tract of land conveyed by Mark D. Smith, et ux. to Charles A. Casteel, et ux. by deed
recorded November 25, 1957 in Book 186, Page 110 (erroneously described as Book 185, Page 662), Deed Records; thence South 1°
West along the West line of said Casteel tract 340.8 feet; thence North 77° West to the place of beginning.

 

Parcel 3:

 

Beginning at a 1/2 inch iron pipe at the Southeast corner of
a tract of land described in a deed recorded November 25, 1957 in Book 185, Page 662, Deed Records of Yamhill County, Oregon, being
South 80° 58 1/2' East 277.54 feet and North 70° 15' West 121.6 feet from the Northeast corner of Block 1 of Gutbrod Addition
to the City of Sheridan in Township 5 South, Range 6 West of the Willamette Meridian in Yamhill County, Oregon; thence South 70°
15' East 67.2 feet to an iron rod; thence North 01° 11' East 86.71 feet to an iron rod; thence North 01° 33' West to the
North boundary of the C.B. Graves Donation Land Claim; thence along the North boundary of the Graves Donation Land Claim North
77° West 50 feet, more or less, to a point North 01° 00' East of the point of beginning; thence South 01° West 560
feet, more or less, to the point of beginning.

 

SAVING AND EXCEPTING the following described tract of land:

 

Beginning at a 1/2 inch iron pipe at the Southeast corner of
a tract of land described in deed recorded November 25, 1957 in Book 185, Page 662, Deed Records, said iron pipe being South 80°
50' 30" East 277.54 feet and North 70° 15' West 121.6 feet from the Northeast corner of Block 1 of Gutbrod's Addition
to the Town of Sheridan in Yamhill County, Oregon; thence South 70° 15' East 67.2 feet to an iron rod; thence North 01°
11' East 86.71 feet to an iron rod; thence North 01° 33' West 104.60 feet to a 1/2 inch iron rod; thence South 89° West
59.26 feet to a 1/2 inch iron rod; thence South 1° West 169.60 feet to the place of beginning.

 

Parcel 4:

 

Beginning at a point in Section 35, Township 5 South, Range
6 West of the Willamette Meridian, Yamhill County, Oregon, said point being 207.00 feet North 1° East of a stone, said stone
being 455.40 feet South 78° East of the intersection of the lines of Schley and Second Streets in South Sheridan; thence South
77° East 91.36 feet; thence North 87° 04' 54" West 89.42 feet; thence North 1° East 16.00 feet to the place of
beginning.

 

EXHIBIT
A

 

    	 

    	 

    

 

	Part 3.          Medford
    Project
	 	 	 
	Name of Facility:	 	Medford Memory Care
	Address of Land:	 	1530 Poplar Drive
	 	 	Medford, Oregon
	 	 	 
	Number of Residential Units:	 	71 Alzheimer’s beds
	Number of Parking Spaces:	 	32
	 	 	 
	Name of Master Tenant:	 	RSL Medford, LLC, an Oregon limited liability company
	 	 	 
	Name of Property Manager:	 	Radiant Senior Living, Inc.
	 	 	 
	Allocated Loan Amount:	 	$5,800,000
	 	 	 
	Legal Description of Land:	 	 

 

Commencing at the northwest corner of Donation Land Claim No.
40, Township 37 South, Range 1 West of the Willamette Meridian in Jackson County, Oregon, from which the northwest corner of Donation
Land Claim No. 61, Township 37 South, Range 2 West of the Willamette Meridian, bears West 20.46 chains; thence North 89° 57'
East, along the north line of Donation Land Claim No. 40, a distance of 157.73 feet to the east line of the Old Pacific and Eastern
Railroad right of way, as described in Volume 80, Page 609, of the Deed Records of Jackson County, Oregon; thence continue North
89° 57' East, along the north line of said Donation Land Claim No. 40, a distance of 465.5 feet; thence South 00° 05' East
579.0 feet, to the south right of way line of Morrow Road; thence South 89° 57' 22" East (Record South 89° 57' East),
along said south right of way line, 1105.73 feet, to the northwest corner of parcel described in Volume 413, Page 420, Deed Records;
thence continue South 89° 57' 22" East (Record South 89° 57' East) 22.11 feet, to the True Point of Beginning; thence
continue South 89° 57' 22" East (Record South 89° 57' East) 147.30 feet, to the east line of tract described in No.
88-17233, of the Official Records of Jackson County, Oregon; thence along said east line, along the center of a drain ditch, the
following courses: South 14° 36' 27" East 29.18 feet; South 12° 44' 16" East 22.12 feet; South 10° 56' 59"
East 24.29 feet; South 21° 28' 11" East , 14.50 feet; South 17° 51' 23" East 17.51 feet; South 15° 50' 57"
East 23.19 feet; South 18° 36' 50" East 21.90 feet; South 16° 03' 34" East 21.64 feet; South 16° 05' 03"
East 20.96 feet; South 17° 34' 04" East 26.28 feet; South 16° 14' 39" East 30.02 feet; South 16° 23' 24"
East 23.56 feet; South 12° 59' 47" East 21.77 feet; South 19° 39' 18" East 26.58 feet; South 14° 38' 52"
East 22.65 feet; South 16° 59' 48" East 21.80 feet; South 09° 52' 27" East 18.69 feet; South 16° 50' 22"
East 24.00 feet; South 12° 44' 27" East 15.77 feet, to the northeast corner of tract described in No. 73-11542, Official
Records; thence West, along the northerly line of said tract and its westerly prolongation, 320.19 feet to the easterly right of
way line of Poplar Drive, as described in No. 89-00633, Official Records; thence along said easterly right of way line, North 10°
23' 02" East 189.51 feet; thence North 00° 35' 20" East 20.94 feet; thence North 10° 10' 46" East 97.05
feet; thence along the arc of a 425.00 foot radius curve to the left, through a central angle of 09° 35' 26", a distance
of 71.14 feet; thence North 00° 35' 20" East 36.70 feet, to the True Point of Beginning. EXCEPTING THEREFROM a 5.0 foot
strip of land adjoining Morrow Road, deeded to the City of Medford by No. 89-19214, Official Records of Jackson County, Oregon.
ALSO EXCEPTING THEREFROM a strip of land along the west boundary of Poplar Drive deeded to the City of Medford by instrument recorded
July 16, 1993 as No. 93-23314, Official Records.

 

EXHIBIT
A

 

    	 

    	 

    

 

	Part 4.          Friendswood
    Project
	 	 	 
	Name of Facility:	 	Friendship Haven Healthcare and Rehabilitation Center
	Address of Land:	 	1500 Sunset Drive
	 	 	Friendswood, Texas
	 	 	 
	Number of Residential Units:	 	150 skilled nursing beds
	Number of Parking Spaces:	 	79
	 	 	 
	Name of Master Tenant:	 	HMG Services, LLC
	 	 	 
	Name of Property Manager:	 	Radiant Senior Living, Inc.
	 	 	 
	Allocated Loan Amount:	 	$10,700,000
	 	 	 
	Legal Description of Land:	 	 

 

TRACT I:

 

A tract or parcel of land containing 4.3698
acres of land, more or less, being out of Reserve "A", Tract "A" of Commercial Reserve of Regency Estates,
Section II, a subdivision in Galveston County, Texas, according to the map or plat thereof recorded in Volume 18, Page 304, in
the Office of the County Clerk of Galveston County, Texas, and being more particularly described by metes and bounds as follows:

 

BEGINNING at a point in the southwesterly
right-of-way line of Sunset Drive (80 feet wide) for the northerly corner of said 7.7763-acre Commercial Reserve, for the northerly
corner of said 4.5660-acre tract, and for the northerly corner of said tract herein described,

 

THENCE South 45 deg. 21 min. 35 sec. East
along the southwesterly right-of-way line of said Sunset Drive, a distance of 265.02 feet to a 1/2 inch iron rod set with cap "Survey
1" for corner,

 

THENCE South 45 deg. 00 min. 00 sec. West,
a distance of 90.00 feet to an "X" in concrete set for corner,

 

THENCE South 45 deg. 21 min. 35 sec. East,
a distance of 95.00 feet to a 5/8-inch iron found for corner,

 

THENCE South 45 deg. 00 min. 00 sec. West,
along the northwesterly line of Parkwood Commercial Center recorded in 9523542, a distance of 468.60 feet to a 1/2 inch iron rod
set with cap "Survey 1", for corner,

 

THENCE North 45 deg. 00 min. 00 sec. West,
a distance of 300.01 feet to a 1/2-inch iron rod set with cap "Survey 1", for corner,

 

THENCE North, a distance of 84.66 feet
to a 1/2 inch iron rod with cap "Survey 1", for corner,

 

EXHIBIT
A

 

    	 

    	 

    

 

THENCE North 45 deg. 00 min. 00 sec. East,
a distance of 496.34 feet to the POINT-OF-BEGINNING of the herein described tract of land, and containing 4.3698 acres of land.

 

TRACT II:

 

A tract or parcel of land containing 0.1963
acre of land, more or less, being out of Reserve "A", Tract "A", of Commercial Reserve of Regency Estates,
Section II, a subdivision in Galveston County, Texas, according to the map or plat thereof recorded in Volume 18, Page 304, in
the Office of the County Clerk of Galveston County, Texas, and being more particularly described by metes and bounds as follows,

 

COMMENCING at a point in the Southwesterly
right-of-way line of Sunset Drive (80.00' ROW) for the Northerly corner of said 7.7763 acre Commercial Reserve and for the Northerly
corner of said 4.5660 acre tract,

 

THENCE South 45 deg. 21 min. 35 sec. East,
with the Southwesterly right-of-way line of said Sunset Drive, a distance of 265.02 feet to a 1/2 inch iron rod set with cap "Survey
1" to the POINT OF BEGINNING of the herein described tract of land,

 

THENCE continuing South 45 deg. 21 min.
35 sec. East, continuing along the Southwesterly right-of-way line of said Sunset Drive, a distance of 95.00 feet to 1/2 inch iron
rod set with cap "Survey 1", for corner,

 

THENCE South 45 deg. 00 min. 00 sec. West,
a distance of 90.00 feet to a 5/8 inch iron rod found for corner,

 

THENCE North 45 deg. 21 min. 35 sec. West,
a distance of 95.00 feet to an "X" in concrete set for corner,

 

THENCE North 45 deg. 00 min. 00 sec. East,
a distance of 90.00 feet to the POINT OF BEGINNING of the herein described tract of land, and containing 0.1963 acres of land,
more or less.

 

EXHIBIT
A

 

    	 

    	 

    

 

EXHIBIT
B

 

Loan
Commitments

 

	Lender’s Name	 	Lender’s Address
 for Notices	 	Lender’s Loan
 Commitment	 	 	Lender’s Pro Rata
 Share	 
	General Electric Capital Corporation	 	See Section 12.1	 	$	22,300,000	 	 	 	100	%

 

EXHIBIT
B

 

    	 

    	 

    

 

SCHEDULE
2.1

 

CONDITIONS
TO ADVANCE OF LOAN PROCEEDS

 

The advance of the
proceeds of the Loan shall be subject to the terms of the Term Sheet, and Administrative Agent’s receipt, review, approval
and/or confirmation of the following items set forth in Part A of this Schedule 2.1 and in the items specified in
the Term Sheet, at Borrower’s cost and expense, each in form and content satisfactory to Administrative Agent in its sole
discretion:

 

		1.	Loan Documents. The Loan Documents and Environmental Indemnity Agreement executed by Borrower,
any Borrower Party and/or Operator, as applicable.

 

		2.	Title Insurance Policy. An ALTA (or equivalent) mortgagee policy or policies of title insurance
in the maximum amount of the Loan, with reinsurance and endorsements as Administrative Agent may require, containing no exceptions
to title (printed or otherwise) which are unacceptable to Administrative Agent, and insuring that the Mortgage creates a first-priority
Lien on the Projects and related collateral (the “Title Policy”).

 

		3.	Organizational and Authority Documents. Certified copies of all documents evidencing the formation,
organization, valid existence, good standing, and due authorization of and for Borrower and each Borrower Party for the execution,
delivery, and performance of the Loan Documents and the Environmental Indemnity Agreement by each Borrower and each Borrower Party,
as applicable.

 

		4.	Legal Opinions. Legal opinions issued by counsel for Borrower and each Borrower Party, opining
as to the due organization, valid existence and good standing of Borrower and each Borrower Party, and the due authorization, execution,
delivery, enforceability and validity of the Loan Documents and Environmental Indemnity Agreement with respect to, Borrower and
each Borrower Party; that the Loan, as reflected in the Loan Documents is not usurious; and as to such other matters as Administrative
Agent and Administrative Agent’s counsel reasonably may specify, including, without limitation, non-consolidation opinions.

 

		5.	Searches. Current Uniform Commercial Code, tax, judgment lien and litigation searches for Borrower
and each Borrower Party, and the immediately preceding owner of the Projects.

 

		6.	Insurance. Evidence of insurance as required by this Agreement, and conforming in all respects
to the requirements of Administrative Agent.

 

		7.	Survey. Three (3) originals of a current “as built” survey of each Project,
dated or updated to a date not earlier than forty-five (45) days prior to the Closing Date, prepared by a registered land surveyor
in accordance with the American Land Title Association/ American Congress on Surveying and Mapping Standards and containing Administrative
Agent’s approved form of certification in favor of Administrative Agent (on behalf of itself and the Lenders) and the title
insurer (collectively, the “Survey”). The Survey shall conform to Administrative Agent’s current
survey requirements and shall be sufficient for the title insurer to remove the general survey exception.

 

SCHEDULE
2.1

 

    	1

    	 

    

 

		8.	Property Condition Report. A current engineering report or architect’s certificate with respect
to each Project, covering, among other matters, inspection of heating and cooling systems, roof and structural details and showing
no failure of compliance with building plans and specifications, applicable legal requirements (including requirements of the Americans
with Disabilities Act) and fire, safety and health standards (the “Property Condition Report”, whether
one or more). As requested by Administrative Agent, the Property Condition Report shall also include an assessment of each Project’s
tolerance for earthquake and seismic activity.

 

		9.	Environmental Reports. A current Site Assessment (as defined in the Environmental Indemnity Agreement)
for each Project.

 

		10.	Rent Roll. A current rent roll or Census Report for each Project, certified by Borrower or the
current owner of such Project. Such rent roll and/or Census Report shall include such information as reasonably required by Administrative
Agent.

 

		11.	Operators’ Agreements. A copy of each fully executed Operators’ Agreement in form and
substance satisfactory to Administrative Agent, certified by Borrower as being true, correct and complete.

 

		12.	Tax and Insurance Impounds. Borrower’s deposit with Administrative Agent of the amount required
under this Agreement to impound for taxes and assessments, insurance premiums and to fund any other required escrows or reserves.

 

		13.	Compliance With Laws. Evidence that each Project and the operation thereof comply with all legal
requirements, including that all requisite certificates of occupancy, building permits, and other licenses, certificates, approvals
or consents required of any Governmental Authority have been issued without variance or condition and that there is no litigation,
action, citation, injunctive proceedings, or like matter pending or threatened with respect to the validity of such matters. If
title insurance with respect to a Project described in item 3 above does not include a Zoning 3.1 (with parking) endorsement because
such an endorsement is not available in the state where such Project is located, then Borrower shall furnish to Administrative
Agent a zoning letter from the applicable municipal agency with respect to such Project or a zoning report that verifies the zoning
classification of such Project and such Project’s compliance with such zoning classification (the “Zoning Report”).

 

		14.	No Casualty or Condemnation. No condemnation or adverse zoning or usage change proceeding shall
have occurred or shall have been threatened against the Projects; the Projects shall not have suffered any significant damage by
fire or other casualty which has not been repaired; no law, regulation, ordinance, moratorium, injunctive proceeding, restriction,
litigation, action, citation or similar proceeding or matter shall have been enacted, adopted, or threatened by any Governmental
Authority, which would have, in Administrative Agent’s judgment, a material adverse effect on Borrower, any Borrower Party
or the Projects.

 

SCHEDULE
2.1

 

    	2

    	 

    

 

		15.	Broker’s Fees. All fees and commissions payable to real estate brokers, mortgage brokers,
or any other brokers or lenders in connection with the Loan or the acquisition of the Projects have been paid, such evidence to
be accompanied by any waivers or indemnifications deemed necessary by Administrative Agent.

 

		16.	Costs and Expenses. Payment of Administrative Agent’s and each Lender’s costs and expenses
in underwriting, documenting, and closing the transaction, including fees and expenses of Administrative Agent’s and such
Lender’s inspecting engineers, consultants and counsel.

 

		17.	Representations and Warranties. The representations and warranties contained in this Loan Agreement
and in all other Loan Documents and Environmental Indemnity Agreement are true and correct.

 

		18.	No Defaults. No Potential Default or Event of Default or default shall have occurred or exist.

 

		19.	Appraisal. Administrative Agent shall obtain an appraisal report for each Project, in form and
content acceptable to Administrative Agent, prepared by an independent MAI appraiser in accordance with the Financial Institutions
Reform, Recovery and Enforcement Act (“FIRREA”) and the regulations promulgated pursuant to such act.

 

		20.	Management. The Operator and any Operators’ Agreement for each Project shall be satisfactory
to Administrative Agent in its sole discretion.

 

		21.	Other Items. Administrative Agent and the Lenders shall have received such other items as Administrative
Agent and the Lenders may reasonably require.

 

SCHEDULE
2.1

 

    	3

    	 

    

 

SCHEDULE
2.3(a)

 

AMORTIZATION
SCHEDULE

 

	Period	 	 	Date	 	 	Days	 	 	Ending
 Balance	 	 	Principal	 	 	Prepayment	 	 	Balloon Amount	 
	 	0	 	 	 	9/13/2012	 	 	 	 	 	 	 	22,300,000.00	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1	 	 	 	10/1/2012	 	 	 	17	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	2	 	 	 	11/1/2012	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	3	 	 	 	12/1/2012	 	 	 	30	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	4	 	 	 	1/1/2013	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	5	 	 	 	2/1/2013	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	6	 	 	 	3/1/2013	 	 	 	28	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	7	 	 	 	4/1/2013	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	8	 	 	 	5/1/2013	 	 	 	30	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	9	 	 	 	6/1/2013	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	10	 	 	 	7/1/2013	 	 	 	30	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	11	 	 	 	8/1/2013	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	12	 	 	 	9/1/2013	 	 	 	31	 	 	 	22,300,000.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 
	 	13	 	 	 	10/1/2013	 	 	 	30	 	 	 	22,267,820.79	 	 	 	32,179.21	 	 	 	0.00	 	 	 	0.00	 
	 	14	 	 	 	11/1/2013	 	 	 	31	 	 	 	22,239,191.98	 	 	 	28,628.81	 	 	 	0.00	 	 	 	0.00	 
	 	15	 	 	 	12/1/2013	 	 	 	30	 	 	 	22,206,708.73	 	 	 	32,483.25	 	 	 	0.00	 	 	 	0.00	 
	 	16	 	 	 	1/1/2014	 	 	 	31	 	 	 	22,177,764.18	 	 	 	28,944.55	 	 	 	0.00	 	 	 	0.00	 
	 	17	 	 	 	2/1/2014	 	 	 	31	 	 	 	22,148,670.08	 	 	 	29,094.10	 	 	 	0.00	 	 	 	0.00	 
	 	18	 	 	 	3/1/2014	 	 	 	28	 	 	 	22,108,351.33	 	 	 	40,318.75	 	 	 	0.00	 	 	 	0.00	 
	 	19	 	 	 	4/1/2014	 	 	 	31	 	 	 	22,078,898.60	 	 	 	29,452.73	 	 	 	0.00	 	 	 	0.00	 
	 	20	 	 	 	5/1/2014	 	 	 	30	 	 	 	22,045,613.88	 	 	 	33,284.72	 	 	 	0.00	 	 	 	0.00	 
	 	21	 	 	 	6/1/2014	 	 	 	31	 	 	 	22,015,837.00	 	 	 	29,776.87	 	 	 	0.00	 	 	 	0.00	 
	 	22	 	 	 	7/1/2014	 	 	 	30	 	 	 	21,982,236.98	 	 	 	33,600.03	 	 	 	0.00	 	 	 	0.00	 
	 	23	 	 	 	8/1/2014	 	 	 	31	 	 	 	21,952,132.66	 	 	 	30,104.32	 	 	 	0.00	 	 	 	0.00	 
	 	24	 	 	 	9/1/2014	 	 	 	31	 	 	 	21,921,872.80	 	 	 	30,259.86	 	 	 	0.00	 	 	 	0.00	 
	 	25	 	 	 	10/1/2014	 	 	 	30	 	 	 	21,887,802.95	 	 	 	34,069.85	 	 	 	0.00	 	 	 	0.00	 
	 	26	 	 	 	11/1/2014	 	 	 	31	 	 	 	21,857,210.72	 	 	 	30,592.23	 	 	 	0.00	 	 	 	0.00	 
	 	27	 	 	 	12/1/2014	 	 	 	30	 	 	 	21,822,817.56	 	 	 	34,393.16	 	 	 	0.00	 	 	 	0.00	 
	 	28	 	 	 	1/1/2015	 	 	 	31	 	 	 	21,791,889.57	 	 	 	30,927.99	 	 	 	0.00	 	 	 	0.00	 
	 	29	 	 	 	2/1/2015	 	 	 	31	 	 	 	21,760,801.79	 	 	 	31,087.78	 	 	 	0.00	 	 	 	0.00	 
	 	30	 	 	 	3/1/2015	 	 	 	28	 	 	 	21,718,672.98	 	 	 	42,128.80	 	 	 	0.00	 	 	 	0.00	 
	 	31	 	 	 	4/1/2015	 	 	 	31	 	 	 	21,687,206.91	 	 	 	31,466.07	 	 	 	0.00	 	 	 	0.00	 
	 	32	 	 	 	5/1/2015	 	 	 	30	 	 	 	21,651,963.73	 	 	 	35,243.18	 	 	 	0.00	 	 	 	0.00	 
	 	33	 	 	 	6/1/2015	 	 	 	31	 	 	 	21,620,153.00	 	 	 	31,810.73	 	 	 	0.00	 	 	 	0.00	 
	 	34	 	 	 	7/1/2015	 	 	 	30	 	 	 	21,584,574.55	 	 	 	35,578.45	 	 	 	0.00	 	 	 	0.00	 
	 	35	 	 	 	8/1/2015	 	 	 	31	 	 	 	21,552,415.64	 	 	 	32,158.91	 	 	 	0.00	 	 	 	0.00	 
	 	36	 	 	 	9/1/2015	 	 	 	31	 	 	 	21,520,090.58	 	 	 	32,325.07	 	 	 	0.00	 	 	 	0.00	 
	 	37	 	 	 	10/1/2015	 	 	 	30	 	 	 	21,484,011.82	 	 	 	36,078.76	 	 	 	0.00	 	 	 	0.00	 
	 	38	 	 	 	11/1/2015	 	 	 	31	 	 	 	21,451,333.33	 	 	 	32,678.48	 	 	 	0.00	 	 	 	0.00	 
	 	39	 	 	 	12/1/2015	 	 	 	30	 	 	 	21,414,910.79	 	 	 	36,422.55	 	 	 	0.00	 	 	 	0.00	 
	 	40	 	 	 	1/1/2016	 	 	 	31	 	 	 	21,381,875.28	 	 	 	33,035.51	 	 	 	0.00	 	 	 	0.00	 
	 	41	 	 	 	2/1/2016	 	 	 	31	 	 	 	21,348,669.09	 	 	 	33,206.19	 	 	 	0.00	 	 	 	0.00	 
	 	42	 	 	 	3/1/2016	 	 	 	29	 	 	 	21,308,175.11	 	 	 	40,493.98	 	 	 	0.00	 	 	 	0.00	 
	 	43	 	 	 	4/1/2016	 	 	 	31	 	 	 	21,274,588.14	 	 	 	33,586.97	 	 	 	0.00	 	 	 	0.00	 

 

SCHEDULE
2.3(a)

 

    	 

    	 

    

 

	 	44	 	 	 	5/1/2016	 	 	 	30	 	 	 	21,237,281.87	 	 	 	37,306.27	 	 	 	0.00	 	 	 	0.00	 
	 	45	 	 	 	6/1/2016	 	 	 	31	 	 	 	21,203,328.61	 	 	 	33,953.26	 	 	 	0.00	 	 	 	0.00	 
	 	46	 	 	 	7/1/2016	 	 	 	30	 	 	 	21,165,666.04	 	 	 	37,662.57	 	 	 	0.00	 	 	 	0.00	 
	 	47	 	 	 	8/1/2016	 	 	 	31	 	 	 	21,131,342.77	 	 	 	34,323.27	 	 	 	0.00	 	 	 	0.00	 
	 	48	 	 	 	9/1/2016	 	 	 	31	 	 	 	21,096,842.16	 	 	 	34,500.61	 	 	 	0.00	 	 	 	0.00	 
	 	49	 	 	 	10/1/2016	 	 	 	30	 	 	 	21,058,647.16	 	 	 	38,195.00	 	 	 	0.00	 	 	 	0.00	 
	 	50	 	 	 	11/1/2016	 	 	 	31	 	 	 	21,023,770.96	 	 	 	34,876.20	 	 	 	0.00	 	 	 	0.00	 
	 	51	 	 	 	12/1/2016	 	 	 	30	 	 	 	20,985,210.60	 	 	 	38,560.36	 	 	 	0.00	 	 	 	0.00	 
	 	52	 	 	 	1/1/2017	 	 	 	31	 	 	 	20,949,954.97	 	 	 	35,255.62	 	 	 	0.00	 	 	 	0.00	 
	 	53	 	 	 	2/1/2017	 	 	 	31	 	 	 	20,914,517.20	 	 	 	35,437.78	 	 	 	0.00	 	 	 	0.00	 
	 	54	 	 	 	3/1/2017	 	 	 	28	 	 	 	20,868,439.06	 	 	 	46,078.13	 	 	 	0.00	 	 	 	0.00	 
	 	55	 	 	 	4/1/2017	 	 	 	31	 	 	 	20,832,580.12	 	 	 	35,858.94	 	 	 	0.00	 	 	 	0.00	 
	 	56	 	 	 	5/1/2017	 	 	 	30	 	 	 	20,793,063.81	 	 	 	39,516.31	 	 	 	0.00	 	 	 	0.00	 
	 	57	 	 	 	6/1/2017	 	 	 	31	 	 	 	20,756,815.43	 	 	 	36,248.38	 	 	 	0.00	 	 	 	0.00	 
	 	58	 	 	 	7/1/2017	 	 	 	30	 	 	 	20,716,920.29	 	 	 	39,895.14	 	 	 	0.00	 	 	 	0.00	 
	 	59	 	 	 	8/1/2017	 	 	 	31	 	 	 	20,680,278.50	 	 	 	36,641.79	 	 	 	0.00	 	 	 	0.00	 
	 	60	 	 	 	9/1/2017	 	 	 	31	 	 	 	20,643,447.39	 	 	 	36,831.11	 	 	 	0.00	 	 	 	0.00	 
	 	61	 	 	 	9/11/2017	 	 	 	10	 	 	 	0.00	 	 	 	109,273.47	 	 	 	20,534,173.92	 	 	 	20,643,447.39	 

 

SCHEDULE
2.3(a)

 

    	 

    	 

    

 

SCHEDULE
2.5(b)

 

REQUIRED
REPAIRS

 

None.

 

SCHEDULE
2.5(b)

 

    	 

    	 

    

 

SCHEDULE
2.7

 

SOURCES
AND USES

 

Sources

 

	Source	 	Amount	 
	Loan:	 	$	22,300,000	 
	Borrower Equity Contribution:	 	$	9,873,000	 
	Total:	 	$	32,173,000	 

 

Uses

 

	Use	 	Amount	 
	Acquisition of Projects:	 	$	31,400,000	 
	Acquisition Fee:	 	$	350,000	 
	Commitment Fee:	 	$	223,000	 
	Closing Costs (est.)	 	$	200,000	 
	Total:	 	$	32,173,000	 

 

SCHEDULE
2.7

 

    	 

    	 

    

 

SCHEDULE
6.1

 

ORGANIZATION;
FORMATION

 

A.           Borrower’s
Organizational Structure. See attached chart.

 

B.           Organizational
Information. (Borrower and each entity comprising Borrower Party).

 

	Legal Name	 	State of
 Formation	 	 	Type of Entity	 	State
 Organization ID
 No.	 	 	Federal Tax ID
 No.
	CHP Portland, 

LLC	 	 	Delaware	 	 	Limited liability company	 	 	5165986	 	 	45-5475756
	CHP Medford 1, 

LLC	 	 	Delaware	 	 	Limited liability company	 	 	5165987	 	 	46-0854163
	CHP Friendswood SNF 1, LLC	 	 	Delaware	 	 	Limited liability company	 	 	5200025	 	 	46-0862893
	Cornerstone Healthcare Holdings 1, LLC	 	 	Delaware	 	 	Limited liability company	 	 	5165903	 	 	45-5495453
	Cornerstone Core Properties REIT, Inc.	 	 	Maryland	 	 	Corporation	 	 	D10272573	 	 	73-1721791

 

C.           Location
Information.

 

	1.	 	Borrower:	 
	 	 	 	 
	 	a.	Chief Executive Office:	1920 Main Street, Suite 400 Irvine, California 92614
	 	 	 	 
	 	b.	Location of any prior Chief Executive Office (during last 5 years):	N/A
	 	 	 	 
	 	c.	Other Office Location:	N/A
	 	 	 	 
	 	d.	Location of Collateral:	At the Projects
	 	 	 	 
	2.	 	Borrower Parties:	 
	 	 	 	 
	 	a.	Chief Executive Office:	1920 Main Street, Suite 400 Irvine, California 92614
	 	 	 	 
	 	b.	Location of any prior Chief Executive Office (during last 5 years):	N/A
	 	 	 	 
	 	c.	Other Office Location:	N/A

 

ORGANIZATIONAL
CHART

 

[See
Attached]

 

SCHEDULE
6.1

 

    	1

    	 

    

 

SCHEDULE
6.22

 

DISCLOSURES
REGARDING HEALTHCARE MATTERS

 

None.

 

SCHEDULE
6.22

 

    	1

    	 

    

 

SCHEDULE
6.22(a)

 

THIRD PARTY
PAYOR PROGRAMS

 

Sheridan Project

Medicare Provider No. 385275

Medicaid Provider No. 800092

NPI Number 1316992347

 

Portland Project

Medicare Provider No. 385237

Medicaid Provider No. 800034

NPI Number 1811987779

 

Medford Project

Medicaid Provider No. 135955

 

Friendswood Project

Medicaid Vendor No.     4286

Medicare Provider No.  67-5744

 

SCHEDULE
6.22(a)

 

    	1

    	 

    

 

SCHEDULE
6.22(b)

 

PRIMARY
LICENSES

 

		1.	Nursing Facility License #1780937313, issued for Fernhill Estates, 5737 NE 37th, Portland, OR 97211 (expiration:
12/31/2012).

 

		2.	Nursing Facility License #1361721217, issued for Sheridan Care Center, 411 SE Sheridan Rd., Sheridan, OR 97378 (expiration:
12/31/2012).

 

		3.	Residential Care Facility License #1845022081, issued for Farmington Square – Medford, 1530 Poplar Drive, Medford, OR
97504 (expiration 9/3/2014).

 

		4.	Nursing Facility License #132738, issued for Friendship Haven Healthcare and Rehabilitation Center, 1500 Sunset Drive, Friendswood,
Galveston County, Texas. 77546.

 

SCHEDULE
6.22(b)

 

    	1

    	 

    

 

SCHEDULE
7.2

 

FORM OF
COMPLIANCE CERTIFICATE

 

Compliance Certificate

 

Date: ________________, ______

 

General Electric Capital Corporation,

as Administrative Agent

500 West Monroe Street

Chicago, Illinois 60661

		Attention:	Managing Director, HFS Real Estate

Portfolio Management Group

 

Re: Compliance Certificate – Loan No. 07-0004432

 

Ladies and Gentlemen:

 

This certificate is given in accordance with Section 7.2
and Section 9.10 of the Loan Agreement dated __________________ (as amended from time to time, the “Loan Agreement”),
among CHP Portland, LLC, CHP Medford 1, LLC and CHP Friendswood SNF, LLC (the foregoing, collectively, “Borrower”)
and General Electric Capital Corporation, as Administrative Agent on behalf of the financial institutions from time to time party
to the Loan Agreement (in such capacity, the “Administrative Agent”). Capitalized terms used but not
otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

 

I hereby certify that:

 

		1.	I am an officer of the manager of each Borrower, and

 

		2.	Based on my review of the financial statements delivered with this certificate in accordance with
the Section 7.1 of the Loan Agreement, such (a) financial statements fairly present the financial condition of each Borrower
as the dates of such financial statements in all material respects and (b) have been prepared in accordance with GAAP consistently
applied. There have been no material changes in accounting policies or financial reporting practices of any Borrower Party since
____________, 201_ [insert date of last year-end financial statement provided by Borrower], or, if any such change has occurred,
I have attached a description of such changes.

 

SCHEDULE
7.2

 

    	1

    	 

    

 

		3.	I have reviewed the terms of the Loan Agreement and have made, or caused to be made under my supervision,
a review in reasonable detail of the transactions and condition of each Borrower during the accounting period covered by such financial
statements.

 

		4.	Such review has not disclosed the existence during or at the end of such accounting period, and
I have no knowledge whether arising out of such review or otherwise, of the existence during or at the end of such accounting period
or as of the date hereof, of any condition or event that constitutes a Potential Default or an Event of Default, or if any Potential
Default or Event or Default existed or exists, attached as Schedule 1 hereto is a description of the nature and period
of existence thereof and what action Borrower has taken or propose to take with respect thereto.

 

		5.	Guarantor is in compliance with the covenants contained in the Recourse Guaranty constituting a
part of the Loan Documents, except as set forth in Schedule 4 attached hereto.

 

		6.	Except as noted on Schedule 2 attached hereto, the undersigned has no knowledge of
any federal or state tax liens having been filed against the Borrower, Guarantor, the Operator or all or any portion of any Project.

 

		7.	Except as noted on Schedule 2 attached hereto, the undersigned has no knowledge of
any failure of any Borrower, Guarantor or Operator to make required payments of withholding or other tax obligations of such Borrower,
Guarantor or Operator during the accounting period to which the attached statements pertain or any subsequent period.

 

		8.	If the Loan Agreement contemplates payments into a lockbox or restricted account, or directly to
Lender, Administrative Agent, Borrower and Operator (as required under the Loan Agreement or in the Loan Documents) have directed
all of its account debtors, residents and/or lessees, as applicable, to make payments into such account or to Administrative Agent.

 

		9.	If the Loan Agreement contemplates a lien on the deposit accounts of the Borrower in favor of Administrative
Agent, Schedule 3 attached hereto contains a complete and accurate statement of all deposit or investment accounts
maintained by Borrower, Guarantor or any Operator.

 

		10.	With respect to each Project:

 

		(a)	there are no current, pending or threatened proceedings relating to a condemnation or other public
taking of such Project;

 

		(b)	the Project has suffered no casualty or other damage or loss of the type typically covered by hazard
insurance;

 

SCHEDULE
7.2

 

    	2

    	 

    

 

		(c)	all insurance required to be maintained by Borrower, Guarantor or Operator under the Loan Agreement
is in force;

 

		(d)	all real estate taxes or other assessments pertaining to such Project have been paid as and when
due.

 

		(e)	the undersigned has no knowledge of any current, pending or threatened changes to the zoning classification
or permitted uses of such Project.

 

		11.	All of the other covenants (i.e., those not specifically described in the prior paragraphs above)
set forth in the Loan Agreement and Security Documents are fully performed and the representations and warranties set forth in
the Loan Agreement and Security Documents are and remain true, correct, and complete (except as set forth on Schedule 4
attached hereto).

 

		12.	Except as set forth in the Loan Agreement or on Schedule 5 attached hereto, Borrower
not has received (a) any notice of default under other obligations relating to the Projects or otherwise material to Borrower’s
business, including any notices of violations of any laws, regulations, codes or ordinances; (b) any notice of threatened or pending
legal, judicial or regulatory proceedings, including any dispute between Borrower and any Governmental Authority, materially adversely
affecting Borrower, any Borrower Party or Projects; (c) Healthcare Investigations; (d) any notice of default or termination given
or made to any Operator by Borrower or received from any Operator; and (e) any notice of default or termination under any license
or permit necessary for the operation of the Projects in the manner required by the Loan Agreement. If any such notices or Healthcare
Investigations have been received or commenced, they are listed on Schedule 5 and Borrower has provided (or are providing
concurrently with this Certificate) Administrative Agent with copies of such notices and relevant materials referred to herein.
With respect to any such notices or Healthcare Investigations, Borrower is providing the following information: (a) number of records
requested, (b) dates of service, (c) dollars at risk, (d) date records submitted, (e) determinations, findings, results and denials
(including number, percentage and dollar amount of claims denied, (f) additional remedies proposed or imposed, (g) status update,
including appeals, and (h) any other pertinent information related thereto.

 

		13.	The calculations set forth on Schedule 6 have been made to determine Borrower’s
compliance with Section 8.15 of the Loan Agreement, which calculations are true, correct, and complete.

 

SCHEDULE
7.2

 

    	3

    	 

    

 

The foregoing certification and computations are made as of
_____________, 20___ and delivered this _____day of _____________, 20___.

 

	 	Sincerely,
	 	 
	 	___________________________________
	 	in his capacity as _____________________ of Cornerstone Core Properties REIT, Inc., the manager of each of CHP Portland, LLC, CHP Medford 1, LLC and CHP Friendswood SNF, LLC

 

SCHEDULE
7.2

 

    	4

    	 

    

 

Schedule 1

 

Description of Defaults or Potential

Defaults and Cures Being Undertaken

 

SCHEDULE
7.2

 

    	5

    	 

    

 

Schedule 2

 

Tax Liens or Withholding Obligations

 

SCHEDULE
7.2

 

    	6

    	 

    

 

Schedule 3

 

List of all Deposit Accounts

 

SCHEDULE
7.2

 

    	7

    	 

    

 

Schedule 4

 

Exceptions to Covenant Compliance

 

SCHEDULE
7.2

 

    	8

    	 

    

 

Schedule 5

 

Schedule of Notices of Default, Litigation,
etc.

 

SCHEDULE
7.2

 

    	9

    	 

    

 

Schedule 6

 

Financial Covenant Analysis

 

As of: ____________ __, 20__

 

	A.           NET OPERATING INCOME (“NOI”):	 	 
	 	 	 
	(1)          Name of Borrower:	 	CHP Portland, LLC
	 	 	 
	(a)          Calculation Period:	 	(a) Trailing 12 Months
	 	 	 
	(b)          Adjusted Revenue	 	(b) $___________________
	 	 	 
	(c)          Less Adjusted Expenses:	 	(c) $___________________
	(including real estate tax, management fee equal to 5% of effective gross income regardless of whether paid & replacement reserve of $350 per licensed bed/unit)	 	 
	 	 	 
	(d)          Adjusted Net Operating Income:	 	(d) $___________________
	 	 	 
	(2)         Name of Borrower:	 	CHP Medford 1, LLC
	 	 	 
	(a)          Calculation Period:	 	(a) Trailing 12 Months
	 	 	 
	(b)          Adjusted Revenue	 	(b) $___________________
	 	 	 
	(c)          Less Adjusted Expenses:	 	(c) $___________________
	(including real estate tax, management fee equal to 5% of effective gross income regardless of whether paid & replacement reserve of $350 per licensed bed/unit)	 	 
	 	 	 
	(d)          Adjusted Net Operating Income:	 	(d) $___________________
	 	 	 
	(3)         Name of Borrower:	 	CHP Friendswood, SNF, LLC
	 	 	 
	(a)          Calculation Period:	 	(a) Trailing 12 Months
	 	 	 
	(b)          Adjusted Revenue	 	(b) $___________________
	 	 	 
	(c)          Less Adjusted Expenses:	 	(c) $___________________
	(including real estate tax, management fee equal to 5% of effective gross income regardless of whether paid & replacement reserve of $350 per licensed bed/unit)	 	 
	 	 	 
	(d)          Adjusted Net Operating Income:	 	(d) $___________________

 

SCHEDULE
7.2

 

    	10

    	 

    

 

	B.          DEBT SERVICE OF BORROWER:	 	 
	 	 	 
	(1)         Calculation Period:	 	(1) Trailing 12 Months
	 	 	 
	(2)         Debt Service Calculation:	 	 
	 	 	 
	(a)          Interest Expense	 	(a) $___________________
	 	 	 
	(b)          Scheduled Amortization of Principal	 	(b) $___________________
	 	 	 
	(c)          Other Payments on Permitted Debt	 	(c) $___________________
	 	 	 
	(d)          Total Debt Service	 	(d) $___________________
	 	 	 
	(3)         Debt Service Coverage Ratio (ANOI/Debt Service):	 	(3)  :1.00
	 	 	 
	(4)         Required Minimum Debt Service Coverage Pursuant to Section 8.15):	 	(4) 2.00:1.00
	 	 	 
	(5)         In Compliance:	 	(5)  ̈ Yes       ̈ No
	 	 	 
	C.           AVERAGE OCCUPANCY RATE:	 	 
	 	 	 
	(1)         Calculation Period:	 	(1) Trailing 3 Months
	 	 	 
	(2)         Average Occupancy Rate for Calculation Period – Portland Project (described on Part 1 of Exhibit A to the Loan Agreement):	 	(2) _______________%
	 	 	 
	(3)         Average Occupancy Rate for Calculation Period – Sheridan Project (described on Part 2 of Exhibit A to the Loan Agreement)	 	(3) _______________%
	 	 	 
	(4)         Average Occupancy Rate for Calculation Period – Medford Project (described on Part 3 of Exhibit A to the Loan Agreement)	 	(4) _______________%
	 	 	 
	(5)         Average Occupancy Rate for Calculation Period – Friendswood Project (described on Part 4 of Exhibit A to the Loan Agreement)	 	(5) _______________%
	 	 	 
	(6)         Average Occupancy Rate for Calculation Period (average of lines 2, 3, 4 and 5):	 	(6) _______________%
	 	 	 
	(7)         Required Minimum Occupancy Rate:	 	(7)    66%
	 	 	 
	(8)         In Compliance:	 	(8)  ̈ Yes       ̈ No

 

SCHEDULE
7.2

 

    	11

    	 

    

 

	D.           PROJECT YIELD:	 	 
	 	 	 
	(1)         Calculation Period:	 	(1) Trailing ___ Months
	 	 	 
	(2)         NOI:	 	(2) $___________________
	 	 	 
	(a)          Interest Expense	 	 
	 	 	 
	(3)         Outstanding Principal Balance of Loan:	 	(3) $___________________
	 	 	 
	(4)         Project Yield for Calculation Period (ANOI ÷ Principal Balance of Loan):	 	(4) $___________________
	 	 	 
	(5)         Required Project Yield:	 	(5) 15.3%
	 	 	 
	(6)         In Compliance:	 	(6)  ̈ Yes       ̈ No

 

SCHEDULE
7.2

 

    	12

    	 

    

 

SCHEDULE
12.37

 

POST-CLOSING
OBLIGATIONS

 

	Project	 	Description of Post Closing
 Obligation	 	Required Completion Date
	Friendswood Project	 	Remove and remediate existing mold growth; identify site of water intrusion into site of mold incursion and restore same to watertight condition; deliver evidence reasonably acceptable to Administrative Agent confirming completion of work.	 	Within ninety days following the Closing Date
	 	 	 	 	 
	Portland Project	 	Deliver evidence reasonably satisfactory to Administrative Agent that commercial general liability insurance that complies with the requirements specified in Sections 3.1(b) and 3.1(c) and otherwise reasonably acceptable to Administrative Agent has been obtained from an insurance company in compliance with the requirements specified in Section 3.1(c); deliver to Administrative Agent the endorsements to such policy required under Section 3.1(c).	 	On or before October 1, 2012
	 	 	 	 	 
	Medford Project	 	Deliver to Administrative documentation reasonably acceptable to Administrative Agent evidencing premium financing arrangement.	 	Within thirty (30) days following the Closing Date
	 	 	 	 	 
	Medford Project	 	Deliver to Administrative Agent a waiver of subrogation for insurance policies in form reasonably acceptable to Administrative Agent.	 	Within 5 Business Days following Closing Date

 

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	Medford Project	 	Deliver to Administrative Agent mortgagee/loss payee endorsements to insurance policies as required under Section 3.1(c).	 	Within 10 Business Days following Closing Date
	Friendswood Project	 	 	 	 
	Sheridan Project	 	Deliver evidence reasonably satisfactory to Administrative Agent that Borrowers have obtained excess flood insurance coverage amount providing additional coverage in an amount equal to or in excess of $500,000	 	Within 5 Business Days following the Closing Date
	 	 	 	 	 
	All Projects	 	Deliver information for deposit accounts form which debt service payments will be made.	 	Within five (5) business days following the Closing Date
	 	 	 	 	 
	All Projects	 	Deliver Deposit Account Control Agreement, in form and substance reasonably satisfactory to Agent, executed by each Deposit Account Bank and Borrower and covering each Borrower’s Deposit Accounts.	 	Within thirty (30) days following the Closing Date, which period may be extended by Agent in its reasonable discretion
	 	 	 	 	 

 

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