Document:

Indenture between Greenery Rehabilitation Group Inc and The Connecticut National

 EXHIBIT 4.7 
  
 GREENERY REHABILITATION GROUP, INC. 
  

8-3/4% Convertible Senior Subordinated Notes Due 2015 
  

  
 INDENTURE 
  
 Dated as of April 1, 1990 
  

  
 The Connecticut National Bank, 
 Trustee 

  
 CROSS-REFERENCE
TABLE1 
 Indenture 
  

					
	 TIA Section

	  	Section

	 310
	 	 (a) (1)
	  	7.10
	 	 	 (a) (2)
	  	7.10
	 	 	 (a) (3)
	  	N.A.
	 	 	 (a) (4)
	  	N.A.
	 	 	 (b)
	  	7.8; 7.10; 12.2
	 	 	 (c)
	  	N.A.
	 311
	 	 (a)
	  	7.11
	 	 	 (b)
	  	7.11
	 	 	 (c)
	  	N.A.
	 312
	 	 (a)
	  	2.5
	 	 	 (b)
	  	12.3
	 	 	 (c)
	  	12.3
	 313
	 	 (a)
	  	7.6
	 	 	 (b)(1)
	  	N.A.
	 	 	 (b) (2)
	  	7.6
	 	 	 (c)
	  	7.6; 12.2
	 	 	 (d)
	  	7.6
	 314
	 	 (a)
	  	4.2; 12.2
	 	 	 (b)
	  	N.A.
	 	 	 (c) (1)
	  	12.4
	 	 	 (c) (2)
	  	12.4
	 	 	 (c) (3)
	  	N.A.
	 	 	 (d)
	  	N.A.
	 	 	 (e)
	  	12.5
	 	 	 (f)
	  	N.A.
	 315
	 	 (a)
	  	7.1(b)
	 	 	 (b)
	  	7.5; 12.2
	 	 	 (c)
	  	7.1 (a)
	 	 	 (d)
	  	7.1 (c)
	 	 	 (e)
	  	6.11
	 316
	 	 (a) (last sentence)
	  	12.6
	 	 	 (a) (1) (A)
	  	6.5
	 	 	 (a) (1) (B)
	  	6.4
	 	 	 (a) (2)
	  	N.A.
	 	 	 (b)
	  	6.7
	 317
	 	 (a) (1)
	  	6.8
	 	 	 (a) (2)
	  	6.9
	 	 	 (b)
	  	2.4
	 318
	 	 (a)
	  	12.1

 N.A. means Not Applicable 

	 	Note:    	This Cross-Reference Table shall not, for any purpose, be deemed to be part of the Indenture. 

  

  
 TABLE OF CONTENTS2 
  

					
	 Section

	  	 Heading

	  	Page

	 	  	ARTICLE 1	  	 
			
	 	  	DEFINITIONS AND INCORPORATION BY REFERENCE	  	 
			
	 1.1
	  	 Definitions
	  	1
	 1.2
	  	 Other Definitions
	  	4
	 1.3
	  	 Incorporation by Reference of Trust Indenture Act
	  	4
	 1.4
	  	 Rules of Construction
	  	4
			
	 	  	ARTICLE 2	  	 
			
	 	  	THE SECURITIES	  	 
			
	 2.1
	  	 Form and Dating
	  	5
	 2.2
	  	 Execution and Authentication
	  	5
	 2.3
	  	 Registrar, Paying Agent and Conversion Agent
	  	5
	 2.4
	  	 Paying Agent to Hold Money in Trust
	  	6
	 2.5
	  	 Securityholder Lists
	  	6
	 2.6
	  	 Transfer and Exchange
	  	6
	 2.7
	  	 Replacement Securities
	  	7
	 2.8
	  	 Outstanding Securities
	  	7
	 2.9
	  	 Temporary Securities
	  	8
	 2.10
	  	 Cancellation
	  	8
	 2.11
	  	 Defaulted Interest
	  	8
			
	 	  	ARTICLE 3	  	 
			
	 	  	REDEMPTION	  	 
			
	 3.1
	  	 Notices to Trustee
	  	8
	 3.2
	  	 Selection of Securities to be Redeemed
	  	9
	 3.3
	  	 Notice of Redemption
	  	9
	 3.4
	  	 Effect of Notice of Redemption
	  	10
	 3.5
	  	 Deposit of Redemption Price
	  	10
	 3.6
	  	 Securities Redeemed in Part
	  	10
	 3.7
	  	 Conversion Arrangement on Call for Redemption
	  	10
	 3.8
	  	 Purchase of Securities at Option of the Holder upon Risk Event
	  	11
	 3.9
	  	 Effect of Risk Event Purchase Notice
	  	14
	 3.10
	  	 Deposit of Purchase Price
	  	15
	 3.11
	  	 Securities Purchased in Part
	  	15
	 3.12
	  	 Covenant to Comply With Securities Laws Upon Purchase of Securities
	  	15
	 3.13
	  	 Repayment to the Company
	  	16

	2	This Table of Contents shall not, for any purpose, be deemed to be part of the Indenture. 

  

					
	 	  	ARTICLE 4	  	 
			
	 	  	COVENANTS	  	 
	 4.1
	  	 Payment of Securities
	  	16
	 4.2
	  	 SEC Reports
	  	16
	 4.3
	  	 Annual Review Certificate
	  	16
	 4.4
	  	 Corporate Existence
	  	17
	 4.5
	  	 Payment of Taxes and Other Claims
	  	17
	 4.6
	  	 Maintenance of Properties, etc.
	  	17
			
	 	  	ARTICLE 5	  	 
			
	 	  	SUCCESSOR CORPORATION	  	 
	 5.1
	  	 When Company May Merge, etc.
	  	18
			
	 	  	ARTICLE 6	  	 
			
	 	  	DEFAULTS AND REMEDIES	  	 
	 6.1
	  	 Events of Default
	  	19
	 6.2
	  	 Acceleration
	  	20
	 6.3
	  	 Other Remedies
	  	21
	 6.4
	  	 Waiver of Past Defaults
	  	21
	 6.5
	  	 Control by Majority
	  	21
	 6.6
	  	 Limitations on Suits by Holders
	  	21
	 6.7
	  	 Rights of Holders to Receive Payment
	  	22
	 6.8
	  	 Collection Suit by Trustee
	  	22
	 6.9
	  	 Trustee May file Proofs of Claim
	  	23
	 6.10
	  	 Priorities
	  	23
	 6.11
	  	 Undertaking for Costs
	  	24
	 6.12
	  	 Waiver of Usury Laws
	  	24
			
	 	  	ARTICLE 7	  	 
			
	 	  	TRUSTEE	  	 
	 7.1
	  	 Duties of Trustee
	  	25
	 7.2
	  	 Rights of Trustee
	  	26
	 7.3
	  	 Individual Rights of Trustee
	  	26
	 7.4
	  	 Trustee’s Disclaimer
	  	26
	 7.5
	  	 Notice of Defaults
	  	27
	 7.6
	  	 Reports by Trustee to Holders
	  	27
	 7.7
	  	 Compensation and Indemnity
	  	27
	 7.8
	  	 Replacement of Trustee
	  	28
	 7.9
	  	 Successor Trustee by Merger, etc.
	  	29
	 7.10
	  	 Eligibility; Disqualification
	  	29
	 7.11
	  	 Preferential Collection of Claims Against Company
	  	30

  

 -ii- 

					
	 	  	ARTICLE 8	  	 
			
	 	  	DISCHARGE OF INDENTURE	  	 
	 8.1
	  	 Termination of Company’s Obligations
	  	30
	 8.2
	  	 Application of Trust Money
	  	31
	 8.3
	  	 Repayment to Company
	  	31
	 8.4
	  	 Reinstatement
	  	31
			
	 	  	ARTICLE 9	  	 
			
	 	  	AMENDMENTS, SUPPLEMENTS AND WAIVERS	  	 
	 9.1
	  	 Without Consent of Holders
	  	31
	 9.2
	  	 With Consent of Holders
	  	32
	 9.3
	  	 Compliance with Trust Indenture Act
	  	33
	 9.4
	  	 Revocation and Effect of Consents
	  	33
	 9.5
	  	 Notation on or Exchange of Securities
	  	33
	 9.6
	  	 Trustee to Sign Amendments, etc.
	  	34
			
	 	  	ARTICLE 10	  	 
			
	 	  	CONVERSION	  	 
	 10.1
	  	 Conversion Privilege
	  	34
	 10.2
	  	 Conversion Procedure
	  	35
	 10.3
	  	 Fractional Shares
	  	36
	 10.4
	  	 Taxes on Conversion
	  	37
	 10.5
	  	 Company to Provide Stock
	  	37
	 10.6
	  	 Adjustment for Change in Capital Stock
	  	37
	 10.7
	  	 Adjustment for Rights Issue
	  	38
	 10.8
	  	 Adjustment for Other Distributions
	  	39
	 10.9
	  	 Voluntary Adjustment
	  	40
	 10.10
	  	 When Adjustment May be Deferred
	  	41
	 10.11
	  	 When Adjustment is not Required
	  	41
	 10.12
	  	 Notice of Adjustment
	  	41
	 10.13
	  	 Notice of Certain Transactions
	  	41
	 10.14
	  	 Consolidation, Merger or Sale of the Company
	  	42
	 10.15
	  	 Company Determination Final
	  	42
	 10.16
	  	 Trustee’s Disclaimer
	  	42
	 10.17
	  	 Simultaneous Adjustments
	  	43
	 10.18
	  	 Successive Adjustments
	  	43
			
	 	  	ARTICLE 11	  	 
			
	 	  	SUBORDINATION	  	 
	 11.1
	  	 Securities Subordinated to Senior Indebtedness
	  	43
	 11.2
	  	 Company Not to Make Payments with Respect to Securities in Certain Circumstances
	  	43
	 11.3
	  	 Securities Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization of
Company
	  	45

  

 -iii- 

					
	 11.4
	  	 Securityholders to be Subrogated to Right of Holders of Senior Indebtedness
	  	46
	 11.5
	  	 Obligation of the Company Unconditional
	  	47
	 11.6
	  	 Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice
	  	47
	 11.7
	  	 Application by Trustee of Monies Deposited with It
	  	48
	 11.8
	  	 Subordination Rights Not Impaired by Acts or Omissions of Company or Holders of Senior Indebtedness
	  	48
	 11.9
	  	 Securityholders Authorize Trustee to Effectuate Subordination of Securities
	  	48
	 11.10
	  	 Right of Trustee to Hold Senior Indebtedness; Compensation Not Prejudiced
	  	49
	 11.11
	  	 Article 11 Not to Prevent Events of Default
	  	49
			
	 	  	ARTICLE 12	  	 
			
	 	  	MISCELLANEOUS	  	 
	 12.1
	  	 Trust Indenture Act Controls
	  	49
	 12.2
	  	 Notices
	  	49
	 12.3
	  	 Communication by Holders with Other Holders
	  	50
	 12.4
	  	 Certificate and Opinion as to Conditions Precedent
	  	50
	 12.5
	  	 Statements Required in Certificate or Opinion
	  	50
	 12.6
	  	 When Treasury Securities Disregarded
	  	51
	 12.7
	  	 Rules by Trustee and Agents
	  	51
	 12.8
	  	 Legal Holidays
	  	51
	 12.9
	  	 Governing Law
	  	52
	 12.10
	  	 No Adverse Interpretation of Other Agreements
	  	52
	 12.11
	  	 No Recourse Against Others
	  	52
	 12.12
	  	 Successors
	  	52
	 12.13
	  	 Duplicate Originals
	  	52
	 12.14
	  	 Severability.
	  	52
			
	 	  	 Signatures
	  	53
			
	 	  	 Exhibit A - Form of Security
	  	 

  

 iv 

  
 INDENTURE dated as of April
1, 1990, between GREENERY REHABILITATION GROUP, INC., a Delaware corporation (“Company”), and THE CONNECTICUT NATIONAL BANK, a national banking association (“Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Company’s 8-3/4% Convertible Senior Subordinated Notes Due 2015 (“Securities”): 
  
 ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  

	SECTION 1.1  	Definitions. 

  
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person. For the purposes of this definition, “control” when used with respect to any specified person means the power to direct or cause the direction of the management and policies of
such person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

 
 “Agent” means any Registrar, Paying Agent, Conversion
Agent or co-Registrar. See Section 2.3. 
  
 “Board of
Directors” means the Board of Directors of the Company or any committee thereof. 
  
 “Company” means the party named as such in this Indenture until a successor replaces it and thereafter means the successor. 
  
 “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

  
 “Debentures” means the Company’s 6 1/2%
Convertible Subordinated Debentures Due 2011. 
  
 “Debt” means the principal of (and premium, if any) and Interest on and fees and other amounts payable with respect to: 
  

	 	(1)	 all indebtedness or obligations, contingent or otherwise, of the Company (i) for borrowed money; or (ii) evidenced by a note, debenture, similar instrument or
agreement (including, without limitation, a purchase money obligation) given in connection with the acquisition or improvement of any business, property or assets of any kind, including, without limitation, securities but excluding trade debt
incurred in the ordinary course of business; or (iii) as lessee under any lease of real property and any capitalized lease, in 

  

	 	 
either case, entered into after April 1, 1990 and which by its terms is expressly made senior to the Securities; 

  

	 	(2)	all indebtedness or obligations of others of the kind described in the preceding clause (1) which the Company has guaranteed or for which it is otherwise liable; and

  

	 	(3)	any amendment, renewal, extension, modification or refunding of any such debt described in (1) and (2) above. 

  
 “Default” means any event which is, or after notice or
passage of time would be, an Event of Default. 
  
 “Holder” or “Securityholder” means the person in whose name a Security is registered on the Registrar’s books. 
  

“Indenture” means this Indenture as amended or supplemented from time to time. 
  
 “Material Subsidiary” means (i) 99-111 Chestnut Hill Avenue
Corp., Heywood Corp. and Greenery Securities Corp., (ii) any other Subsidiary of the Company which is (or shall become in the future) a “significant subsidiary” as defined in Rule l-02(v) of Regulation S-X as promulgated by the SEC (as
such regulation is in effect on the date hereof) and (iii) any other Subsidiary of the Company that is material to the business, earnings, properties, assets or conditions, financial or otherwise, of the Company and its Subsidiaries taken as a
whole. 
  
 “Officer” means the Chairman of the
Board, the President, any Vice President, the Treasurer or the Secretary of the Company. 
  
 “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and an Assistant Treasurer or Assistant Secretary of the Company. See Sections 12.4 and 12.5. 
  
 “Opinion of Counsel” means a written opinion from legal
counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee. See Sections 12.4 and 12.5. 
  
 “Person” means any individual, corporation, partnership, Joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof. 
  
 “principal” of a debt security means the principal of the security plus the premium, if any, on the security. 
  

“Redemption Date” or “redemption date” shall mean the date specified for redemption of the Securities in accordance with the
terms of the Securities and this Indenture. 
  

 -2- 

 “Redemption Price” or “redemption price” shall have the meaning set
forth in paragraph 5 or 6 of the Securities, as applicable. 
  
 “Responsible Officer” means any Vice President, Senior Corporate Trust Officer or Corporate Trust Officer of the Trustee within the corporate trust administration department. 
  
 “SEC” means the Securities and Exchange Commission.

  
 “Securities” means the Company’s 8-3/4%
Convertible Senior Subordinated Notes Due 2015 that are issued under this Indenture, as amended or supplemented from time to time. 
  
 “Senior Indebtedness” means all Debt of the Company whether outstanding on the date of this Indenture or hereafter created, incurred or
assumed, with the sole exceptions of the Securities, the Extension Notes, the Debentures, and any Debt which by its terms is expressly subordinated in right of payment to the Securities or the Debentures or on a parity in right of payment with the
Securities. 
  
 “Stated Maturity”, when used with
respect to any Security, means the date specified in such Security as the fixed date on which an amount equal to the principal amount of such Security is due and payable. 
  
 “Subsidiary” means a corporation a majority of whose voting stock is owned by the Company or a Subsidiary.
Voting stock is capital stock having voting power under ordinary circumstances to elect directors. 
  
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture.

  
 “Trustee” means the party named as such in
this Indenture until a successor replaces it and thereafter means the successor. 
  
 “Trust Officer” means any officer or assistant officer within the corporate trust administration department of the Trustee assigned by the Trustee to administer its corporate trust matters.

  
 “United States” means the United State of
America. 
  

 -3- 

	SECTION 1.2  	Other Definitions. 

  

				
	 Term

	  	Defined in
Section

	 
	 “Associate”
	  	3.8	(a)
	 “Average Quoted Price”
	  	10.1	 
	 “Bankruptcy Law”
	  	6.1	 
	 “Common stock”
	  	10.1	 
	 “Conversion Agent”
	  	2.3	 
	 “Conversion Date”
	  	10.2	 
	 “Conversion Price”
	  	10.1	 
	 “Current Control Group”
	  	3.8	(a)
	 “Custodian”
	  	6.1	 
	 “Event of Default”
	  	6.1	 
	 “Exchange Act”
	  	3.8	(a)
	 “Legal Holiday”
	  	12.8	 
	 “Notice of Default”
	  	6.1	 
	 “Paying Agent”
	  	2.3	 
	 “Payment Default”
	  	11.2	(b)
	 “Quoted Price”
	  	10.1	 
	 “Registrar”
	  	2.3	 
	 “Risk Event”
	  	3.8	(a)
	 “Risk Event Purchase Date”
	  	3.8	(a)
	 “Risk Event Purchase notice”
	  	3.8	(c)
	 “Risk Event Purchase Price”
	  	3.8	(a)
	 “Time of Determination”
	  	10.1	 
	 “U.S. Government Obligations”
	  	8.1	 

  

	SECTION 1.3  	Incorporation by Reference of Trust Indenture Act. 

  
 Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following
TIA terms incorporated by reference in and made part of or used in this Indenture have the following meanings: 
  
 “Commission” means the SEC. 
  
 “indenture securities” means the Securities. 
  
 “indenture security holder” means a Securityholder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional
trustee” means the Trustee. 
  
 “Obligor” on the indenture securities means the Company. 
  
 All other TIA terms incorporated by reference in and made a part of or used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rules have the meanings assigned
to them therein. 
  

	SECTION 1.4  	Rules of Construction. 

  
 Unless the context otherwise requires: 
  

	 	(1)	a term has the meaning assigned to it; 

  

 -4- 

	 	(2)	an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles; 

  

	 	(3)	“or” is not exclusive; 

  

	 	(4)	words in the singular include the plural, and in the plural include the singular; and 

  

	 	(5)	provisions apply to successive transactions. 

  
 ARTICLE 2 
  
 THE SECURITIES 
  

	SECTION 2.1  	Form and Dating. 

  
 The Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A. The Securities may have notations,
legends or endorsements required by law, stock exchange rule or usage. The Company shall approve the form of the Securities and any notation, legend or endorsement on them. Each Security shall be dated the date of its authentication. 
  

	SECTION 2.2  	Execution and Authentication. 

  
 Two Officers shall sign the Securities for the Company by facsimile signature. The Company’s seal shall be reproduced on the Securities. 

 
 If an Officer whose signature is on a Security no longer holds that office
at the time the Trustee authenticates the Security, the Security shall be valid nevertheless. 
  
 A Security shall not be valid until the Trustee manually signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this
Indenture. 
  
 The Trustee shall authenticate Securities for
original issue in the aggregate principal amount specified in and upon a written order of the Company signed by the Treasurer or an Assistant Treasurer and by one other Officer of the Company. The aggregate principal amount of Securities outstanding
at any time shall be unlimited. 
  

	SECTION 2.3  	Registrar, Paying Agent and Conversion Agent. 

  
 The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange
(“Registrar”), an office or agency where Securities may be presented for purchase or payment (“Paying Agent”) and an office or agency where Securities may be presented for conversion 

  

 -5- 

 
(“Conversion Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one or
more co-Registrars, one or more additional Paying Agents and one or more additional Conversion Agents. The term “Paying Agent” includes any additional paying agent; the term “Conversion Agent” includes any
additional conversion agent. 
  
 The Company shall enter into an
appropriate agency agreement with any Agent not a party to this Indenture. The agreement shall implement the provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any such Agent. If
the Company fails to maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such. 
  
 The Company initially appoints the Trustee as Registrar, Paying Agent and Conversion Agent and Shawmut Trust Co. as an additional paying agent.

  

	SECTION 2.4  	Paying Agent to Hold Honey in Trust. 

  
 The Company shall require each Paying Agent to hold in trust for the benefit of Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of or interest on the Securities. Each Paying Agent shall notify the Trustee of any Default by the Company in making any such payment. While any such Default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. If the Company or a Subsidiary acts as Paying Agent, it shall segregate the money and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon
doing so the Paying Agent shall have no further liability for the money. 
  

	SECTION 2.5  	Securityholder Lists. 

  
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least semiannually, on April 1 and October 1, and at such other times as the Trustee may request in writing a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of Securityholders. 
  

	SECTION 2.6  	Transfer and Exchange. 

  
 The Securities will be issued only in fully registered form. When a Security is presented to the Registrar or a co-Registrar with a request to register a
transfer or to exchange it for an equal principal amount of Securities of other denominations, the Registrar or co-Registrar shall register the transfer as requested if its requirements are met. To permit transfer and exchanges, the Company, at its
expense, shall prepare and execute, and upon 

  

 -6- 

 
its request, the Trustee shall authenticate and deliver Securities at the Registrar’s or co-Registrar’s request. Any exchange or transfer shall be
without charge to the Securityholder, except that the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. 
  
 The Company shall not make, and the Registrar shall not register, transfers
or exchanges of Securities selected for redemption (except, in the case of Securities to be redeemed in part, the portion thereof not be to redeemed) or any Securities in respect of which a Risk Event Purchase Notice has been given and not withdrawn
by the Holder thereof in accordance with the terms of this Indenture (except, in the case of Securities to be purchased in part, the portion thereof not to be purchased) or any Securities for a period of 15 days before a selection of Securities to
be redeemed. 
  

	SECTION 2.7  	Replacement Securities. 

  
 If the Holder of a Security claims that the Security has been lost, destroyed or wrongfully taken and if there is delivered to the Company and the Trustee
evidence to their satisfaction of such loss, destruction or theft, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall issue and, upon its request, the Trustee
shall authenticate a replacement Security if the Trustee’s requirements are met. An indemnity bond must be sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee or any Agent from any loss which any of
them may suffer if a Security is replaced. The Company and the Trustee may charge for its expenses in replacing a Security. 
  
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, or is about to be purchased by the
Company pursuant to Article 3 hereof, the Company in its discretion may, instead of issuing a new Security, pay or purchase such Security, as the case may be. 
  

	SECTION 2.8  	Outstanding Securities. 

  
 Securities outstanding at any time are all Securities authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section. A Security does not cease to be outstanding because the Company or one of its Affiliates holds the Security. 
  

If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding. 
  
 If the Paying Agent holds on a redemption date or maturity date money sufficient to pay Securities payable on that date,
then on and after that date such Securities shall cease to be 

  

 -7- 

 
outstanding and interest on them shall cease to accrue. Such Securities carry no rights except the right to receive payment. 
  

	SECTION 2.9  	Temporary Securities. 

  
 Until definitive Securities are ready for delivery, the Company may prepare and execute, and, upon its request, the Trustee shall authenticate and deliver
temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. The Company shall promptly prepare and execute, and, upon
its request, the Trustee shall authenticate and deliver definitive Securities in exchange for temporary Securities. 
  

	SECTION 2.10  	Cancellation. 

  
 The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar, Paying Agent and Conversion Agent shall forward to the
Trustee any Securities surrendered to them for transfer, exchange, payment or conversion. The Trustee and no one else shall cancel and destroy all Securities surrendered for transfer, exchange, payment, conversion or cancellation. The Company may
not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation or that any Securityholder has converted pursuant to Article 10. 
  

	SECTION 2.11  	Defaulted Interest. 

  
 If the Company defaults in a payment of interest on the Securities, it shall pay the defaulted interest to the persons who are Securityholders on a
subsequent special record date. The Company shall fix the record date and payment date. At least 15 days before the record date, the Company shall mail to each Securityholder a notice that states the record date, the payment date and the amount of
defaulted interest to be paid. The Company may pay defaulted interest in any other lawful manner. 
  
 ARTICLE 3 
  
 REDEMPTION 
  

	SECTION 3.1  	Notices to Trustee. 

  
 If the Company wants to redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the Trustee of the redemption date and the principal
amount of Securities to be redeemed. 
  
 If the Company wants to
reduce the principal amount of securities to be redeemed pursuant to the sinking fund provisions of paragraph 6 of the Securities, it shall notify the Trustee of the amount of the reduction and the basis for it. If the Company 

  

 -8- 

 
wants to credit against any such redemption Securities it has not previously delivered to the Trustee for cancellation, it shall deliver the Securities with
the notice. 
  
 The Company shall give each notice provided for in
this Section at least 60 days before the redemption date. 
  

	SECTION 3.2  	Selection of Securities to Be Redeemed. 

  
 If less than all the Securities are to be redeemed, the Trustee shall select the Securities to be redeemed by lot. The Trustee shall make the selection no
more than 45 days before the redemption date from Securities outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal amount of Securities that have denominations larger than $1,000.
Securities and portions of them it selects shall be in principal amounts of $1,000 or integral multiples of $1,000. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for
redemption. The Trustee shall notify the Company promptly of the Securities or portions of Securities to be redeemed. 
  
 If any Security selected for partial redemption is converted in part before termination of the conversion right with respect to the portion of the
Security so selected, the converted portion of such Security shall be deemed (so far as may be) to be the portion selected for redemption. Securities which have been converted during a selection of Securities to be redeemed may be treated by the
Trustee as outstanding for the purpose of such selection. 
  

	SECTION 3.3  	Notice of Redemption. 

  
 At least 30 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder of
Securities to be redeemed. 
  
 The notice shall identify the
Securities to be redeemed and shall state: 
  

	 	(1)	the Redemption Date; 

  

	 	(2)	the Redemption Price; 

  

	 	(3)	the Conversion Price; 

  

	 	(4)	the name and address of the Paying Agent and Conversion Agent; 

  

	 	(5)	that Securities called for redemption may be converted at any time before the close of business on the day prior to the Redemption Date; 

  

	 	(6)	that Holders who want to convert Securities must satisfy the requirements in paragraph 9 of the Securities; 

  

 -9- 

	 	(7)	that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; 

  

	 	(8)	if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities to be redeemed; and 

 

	 	(9)	that, unless the Company defaults in making such redemption payment, interest on Securities called for redemption will cease to accrue on and after the Redemption Date.

  
 At the Company’s request, the Trustee shall
give the notice of redemption in the Company’s name and at its expense. 
  

	SECTION 3.4  	Effect of Notice of Redemption. 

  
 Once notice of redemption is mailed, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price. Upon
surrender to the Paying Agent, such Securities shall be paid at the Redemption Price, plus accrued interest to the Redemption Date. The Paying Agent shall make such payment as soon as practicable after the later of the Redemption Date or the date on
which such Security is surrendered, provided that the Company has made the deposit required pursuant to Section 3.5. 
  

	SECTION 3.5  	Deposit of Redemption Price. 

  
 On or before the Redemption Date, the Company shall deposit with the Paying Agent money sufficient to pay the Redemption Price of and accrued interest on
all Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which prior thereto have been delivered by the Company to the Trustee for cancellation or have been converted. The Paying Agent shall
return to the Company any money not required for that purpose because of conversion of Securities. 
  

	SECTION 3.6  	Securities Redeemed in Part. 

  
 Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security equal in principal amount to the
unredeemed portion of the Security surrendered. 
  

	SECTION 3.7  	Conversion Arrangement on Call for Redemption. 

  
 In connection with any redemption of Securities, the Company arrange for the purchase and conversion of any Securities called for redemption by an
agreement with one or more investment bankers or other purchasers to purchase such Securities by paying to the Trustee in trust for the Securityholders, on or before the 

  

 -10- 

 
close of business on the Redemption Date, an amount not less than the Redemption Price, together with interest accrued to the Redemption Date, of such
Securities. Notwithstanding anything to the contrary contained in this Article 3, the obligation of the Company to pay the Redemption Price of such Securities, including all accrued interest shall be deemed to be satisfied and discharged to the
extent such amount is so paid by such purchasers. If such an agreement is entered into, any Securities not duly surrendered for conversion by the Holders thereof may, at the option of the Company, be deemed, to the fullest extent permitted by law,
acquired by such purchasers from such Holders and (notwithstanding anything to the contrary contained in Article 10) surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the Redemption Date, subject
to payment of the above amount as aforesaid. The Trustee shall hold and pay to the Holders whose Securities are selected for redemption any such amount paid to it in the same manner as it would moneys deposited with it by the Company for the
redemption of Securities. Without the Trustee’s prior written consent, no arrangement between the Company and such purchasers for the purchase and conversion of any Securities shall increase or otherwise affect any of the powers, duties,
responsibilities or obligations of the Trustee as set forth in this Indenture, and the Company agrees to indemnify the Trustee from, and hold it harmless against, any loss, liability or expense arising out of or in connection with any such
arrangement for the purchase and conversion of any Securities between the Company and such purchasers, including the costs and expenses incurred by the Trustee in the defense of any claim or liability arising out of or in connection with the
exercise or performance of any of its powers, duties, responsibilities or obligations under this Indenture. 
  

	SECTION 3.8	Purchase of Securities at Option of the Holder upon Risk Event. 

  
 (a) If on or prior to April 1, 1995 there shall have occurred a Risk Event, Securities shall be purchased by the Company, at the option of the Holder
thereof, at the purchase price specified in paragraph 8 of the Securities (the “Risk Event Purchase Price”), as of the date that is 35 Business Days after the occurrence of the Risk Event (the “Risk Event Purchase
Date”), subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section 3.8(c). 
  
 A “Risk Event” shall be deemed to have occurred at such time as any of the following events shall occur: 
  
 (i) There is a report filed on Schedule 13D or 14D-1 (or any
successor schedule, form or report) pursuant to the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), disclosing that any person, other that the Current Control Group, their Affiliates and Associates or the
Company, its subsidiaries or employee benefit plans of any of 

  

 -11- 

 
the foregoing (for the purposes of this Section 3.8 only, as the term “person” is used in Section 13(d)(3) or Section 13(d)(2) of the
Exchange Act), has become the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act) of shares of the Company’s capital stock
entitled to cast more than 50% of all votes entitled to vote for the election of more than 50% of all directors; provided, however, that a person shall not be deemed the beneficial owner of, or to own beneficially, (A) any securities tendered
pursuant to a tender or exchange offer, made by or on behalf of such person or any of such person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange thereunder, or (B) any securities if such
beneficial ownership (1) arises solely as a result of a revocable proxy delivered in response to a proxy or consent solicitation made pursuant to the applicable rules and regulations under the Exchange Act, and (2) is not also then reportable on
Schedule 13D (or any successor schedule) under the Exchange Act; or 
  
 (ii) There shall be consummated any so-called “going private transaction”, recapitalization, consolidation or merger of the Company pursuant to which the Securities are no longer convertible into Common
Stock of the Company or of any successor or surviving company which is listed for trading on a national or regional stock exchange within the United States or included in NASDAQ or any successor thereto; or 
  
 (iii) Shares constituting less than 20% of the Common Stock
or common equity ownership of the Company are beneficially owned by persons other than the Company, its subsidiaries, employee benefit plans of the Company or its subsidiaries, directors or officers of the Company or any Affiliates or Associates of
any of the foregoing. 
  
 “Associate” shall have
the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date hereof. 
  
 “Current Control Group” shall mean any of Gerard M. Martin, Barry M. Portnoy, George M. Ferencik, Pelino Campea, members of their
immediate families and heirs, and trusts for the benefit of any of the foregoing. 
  
 (b) Within 15 Business Days after the occurrence of a Risk event, the Company shall mail a written notice of Risk Event by first class mail to the Trustee and to each Holder at its address
             in the register of the Registrar (and to beneficial owners              required by applicable law)
and within ten Business Days after filling of this notice, the Company shall cause a copy of such notice to be published in a daily newspaper of national
                . The notice shall state: 
  
 (1) the events causing a Risk Event and the date of such Risk Event; 
  

 -12- 

 (2) the date by which the Risk Event Purchase Notice pursuant to this Section 3.8 must be given and the
last day on which the purchase right may be exercised; 
  
 (3) the
Risk Event Purchase Date; 
  
 (4) the Risk Event Purchase Price;

  
 (5) the name and address of the Paying Agent and the
Conversion Agent; 
  
 (6) the Conversion Price and any adjustments
thereto; 
  
 (7) that Securities as to which a Risk Event Purchase
Notice has been given may be converted into Common Stock only if the Risk Event Purchase Notice has been withdrawn in accordance with the terms of this Indenture; 
  
 (8) the procedures the Holder must follow to exercise rights under this Section 3.8; 
  
 (9) briefly, the conversion rights of the Securities; and 
  
 (10) the procedures for withdrawing a Risk Event Purchase Notice. 

 
 (c) A Holder may exercise its rights specified in Section 3.8(a) upon
delivery of a written notice of purchase (a “Risk Event Purchase notice”) to the Paying Agent at any time prior to the close of business on the Risk Event Purchase Date, stating: 
  
 (1) the certificate number of the Security which the Holder
will deliver to be purchased; 
  
 (2) the portion
of the principal amount of the Security which the Holder will deliver to be purchased which portion must be $1,000 or an integral multiple thereof; and 
  
 (3) that such Security shall be purchased pursuant to the terms and conditions specified in paragraph 8 of the Securities. 
  
 The delivery of such Security to the Paying Agent prior to, on or after the
Risk Event Purchase Date (together with all necessary endorsements) at the offices of the Paying Agent shall be a condition to the receipt by the Holder of the Risk Event Purchase Price therefor; provided, however, that such Risk Event
Purchase Price shall be so paid pursuant to this Section 3.8 only if the Security so delivered to the Paying Agent shall conform in all respects to the description thereof set forth in the related Risk Event Purchase Notice. 
  

 -13- 

 The Company shall purchase from the Holder thereof, pursuant to this Section 3.8, a portion of a Security
if the principal amount of such portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to the purchase of all of a Security also apply to the purchase of such portion of such Security. 
  
 Any purchase by the Company contemplated pursuant to the provisions of this
Section 3.8 shall be consummated by the delivery of the Risk Event Purchase Price promptly following the later of the Risk Event Purchase Date and the time of delivery of the Security. 
  
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Risk Event Purchase Notice
contemplated by this Section 3.8(c) shall have the right to withdraw such Risk Event Purchase Notice at any time prior to the close of business on the Risk Event Purchase Date by delivery of a written notice of withdrawal to the Paying Agent in
accordance with Section 3.9. 
  

	SECTION 3.9	Effect of Risk Event Purchase Notice. 

  
 (a) Upon receipt by the Company of the Risk Event Purchase Notice specified in Section 3.8(c), the Holder of the Security in respect of which such Risk
Event Purchase Notice was given shall (unless such Risk Event Purchase Notice is withdrawn as specified in this Section 3.9) thereafter be entitled to receive solely the Risk Event Purchase Price with respect to such Security. Such Risk Event
Purchase Price shall be paid to such Holder promptly following the later of (x) the Risk Event Purchase Date with respect to such Security (provided the conditions referred to in Section 3.8(c) have been satisfied) and (y) the time of delivery of
such Security to the Paying Agent by the Holder thereof in the manner required by Section 3.8(c). Securities in respect of which a Risk Event Purchase Notice has been given by the Holder thereof may not be converted into shares of Common Stock on or
after the date of the delivery of such Risk Event Purchase Notice, unless such Risk Event Purchase Notice has first been validly withdrawn as specified in the following paragraph. 
  
 (b) A Risk Event Purchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the
Paying Agent at any time prior to the close of business on the Risk Event Purchase Date specifying: 
  
 (1) the certificate number of the Security in respect of which such notice of withdrawal is being submitted, 
  
 (2) the principal amount of the Security with respect to
which such notice of withdrawal is being submitted, and 
  

 -14- 

 (3) the principal amount, if any, of such Security which remains subject to the Risk
Event Purchase Notice and has been or will be delivered for purchase by the Company. 
  
 (c) There shall be no purchase of any Securities pursuant to Section 3.8 if there has occurred (prior to, on or after the giving by the Holders of such Securities of the required Risk Event Purchase Notice) and is
continuing an Event of Default (other than a default in the payment of the Risk Event Purchase Price with respect to such Securities). 
  

	SECTION 3.10	Deposit of Purchase Price. 

  
 On or before the Business Day following the Risk Event Purchase Date, the Company shall deposit with the Trustee or with the Paying Agent (or, if the
Company or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.4) an amount of money sufficient to pay the aggregate Risk Event Purchase Price of all the Securities
or portions thereof which are to be purchased as of the Risk Event Purchase Date. 
  

	SECTION 3.11	Securities Purchased in Part. 

  
 Any Security which is to be purchased only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing) and the Company shall issue and
execute and request that the Trustee authenticate and deliver to the Holder of such Security, without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder in aggregate principal amount equal to,
and in exchange for, the portion of the principal amount of the Security so surrendered which is not purchased. 
  

	SECTION 3.12	Covenant to Comply With Securities Laws Upon Purchase of Securities. 

  
 In connection with any offer to purchase or purchase of Securities under Section 3.8 hereof, the Company shall (i) comply with Rule 13e-4 (which term, as
used herein, includes any successor provision thereto) under the Exchange Act, if applicable, (ii) file the related Schedule 13E-4 (or any successor schedule, form or report) under the Exchange Act, if applicable, and (iii) otherwise comply
with all Federal and state securities laws so as to permit the rights and obligations under Section 3.8 to be exercised in the time and in the manner specified in Section 3.8. 
  

 -15- 

	SECTION 3.13 	Repayment to the Company. 

  
 The Trustee and the Paying Agent shall return to the Company any cash, together with interest thereon (subject to the provisions of Section 7.1(f)), held
by them for the payment of the Risk Event Purchase Price in respect of cash that remains unclaimed as provided in paragraph 13 of the Securities. 
  
 ARTICLE 4 
  
 COVENANTS 
  

	SECTION 4.1	Payment of Securities. 

  
 The Company shall promptly make all payments in respect of the Securities on the dates and in the manner provided in the Securities or pursuant to this
Indenture. Principal amount, premium, if any, and interest shall be considered paid on the applicable date due if on such date the Trustee or the Paying Agent holds, in accordance with this Indenture, money or securities, if permitted hereunder,
sufficient to pay all such amounts then due. The Company shall pay interest on overdue principal at the rate borne by the Securities; it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

	SECTION 4.2	SEC Reports. 

  
 The Company shall file with the Trustee within 15 days after it files them with the SEC, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall
comply with the other provisions of TIA § 314(a). 
  

	SECTION 4.3	Annual Review Certificate. 

  
 The Company shall file with the Trustee within four months after the end of each fiscal year of the Company an Officers’ Certificate stating:

  

	 	(1)	that the signing officers have supervised a review of the activities of the Company and its Subsidiaries during the preceding fiscal year to determine whether the Company has
observed and performed its obligations under this Indenture; 

  

	 	(2)	 that to the best knowledge of each officer signing such certificate the Company has observed and performed all of its covenants in this Indenture and is not in
default in the observance and performance of any of the terms, provisions and 

  

 -16- 

	 	 
conditions of this Indenture (or if the Company is in such default, specifying those defaults and the nature thereof of which he has knowledge); and

  

	 	(3)	that to the best knowledge of each such signing officer no event has occurred and is continuing which would prohibit payment of the principal of or interest on the Securities.

  

	SECTION 4.4	Corporate Existence. 

  
 Subject to Article 5, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect, its corporate existence
and the corporate, partnership or other existence of each Material Subsidiary in accordance with the respective organizational documents of each Material Subsidiary and the rights (charter and statutory) and material franchises of the Company and
its Material Subsidiaries; provided, however, that the Company shall not be required to preserve any such right or franchise, or the corporate existence of any Subsidiary, if such Subsidiary is merged into or consolidated with the Company or another
Subsidiary or if the Board of Directors shall determine that the preservation of such right, franchise or Subsidiary is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof
is not, and will not be, adverse in any material respect to the Holders. 
  

	SECTION 4.5	Payment of Taxes and Other Claims. 

  
 The Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (1) all material taxes, assessments and
governmental charges levied or imposed upon the Company or any Material Subsidiary or upon the income, profits or property of the Company or any Material Subsidiary and (2) all lawful claims for labor, materials and supplies which, if unpaid, might
by law become a material lien upon the property of the Company or any Material Subsidiary; provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim
whose amount, applicability or validity is being diligently contested in good faith by appropriate proceedings and for which appropriate provision has been made. 
  

	SECTION 4.6	Maintenance of Properties, etc. 

  
 The Company will cause all material properties owned by or leased to it or any Material Subsidiary and used or useful in the conduct of its business or
the business of any Material Subsidiary to be maintained and kept in normal condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company 

  

 -17- 

 
may be necessary, so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company or any Subsidiary from discontinuing the use, operation or maintenance of any of such properties, or disposing of any of them, if such discontinuance or disposal is, in the judgment of the Board of
Directors or of the board of directors, board of trustees or managing partners of the Subsidiary concerned, or of an officer (or other agent employed by the Company or of any of its Subsidiaries) of the Company of such Subsidiary having managerial
responsibility for any such property, desirable in the conduct of the business of the Company or any Subsidiary, and if such discontinuance or disposal is not disadvantageous in any material respect to the Holders. 
  
 The Company will, and will cause each of its Material Subsidiaries to,
maintain with financially sound and reputable insurers such insurance as may be required by law and such other insurance, in such amounts and against such risks and liabilities, as may be reasonably available and as is customarily maintained by
companies similarly situated, except to the extent that failure to so maintain such other insurance would not, upon the occurrence of the insured-against event, materially adversely affect the business, prospects, earnings, properties, assets or
condition, financial or otherwise, of the Company and its Material Subsidiaries taken as a whole. 
  
 The Company will, and will cause each of its Material Subsidiaries to, keep true books of records and accounts in which full and correct entries will be
made of all its business transactions, in accordance with sound business practices, and reflect in its financial statements adequate accruals and appropriations to reserves, all in accordance with generally accepted accounting principles.

  
 The Company will, and will cause each of its Material
Subsidiaries to, comply with all statutes, laws, ordinances or government rules and regulations to which it is subject, as to which non-compliance would materially adversely affect the business, prospects, earnings, properties, assets or condition,
financial or otherwise, of the Company and its Material Subsidiaries taken as a whole. 
  
 ARTICLE 5 
  
 SUCCESSOR CORPORATION

  

	SECTION 5.1	When Company May Merge, etc. 

  
 Except for a mortgage or pledge of all or substantially all of its assets to secure Debt, and except for a sale and leaseback of all or substantially all
of its assets, the Company shall not consolidate or merge with or into, or sell, convey or otherwise 

  

 -18- 

 
transfer or lease all or substantially all of its assets to, any person unless: 
  

	 	(1)	the Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale or conveyance shall have been made, is a corporation,
partnership or trust organized and existing under the laws of the United States, any State thereof or the District of Columbia; 

  

	 	(2)	the Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale or conveyance shall have been made, assumes by supplemental
indenture executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the Securities and this Indenture, except that it need not assume the obligations of the Company as to conversion of
Securities if, pursuant to Section 10.14, the Company or another Person enters into a supplemental indenture obligating it to deliver the securities, cash or other assets deliverable upon conversion of Securities; and 

  

	 	(3)	immediately after the transaction no Default or Event of Default exists. 

  
 The Company shall deliver to the Trustee prior to the proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel
stating that the proposed transaction and such supplemental indenture comply with this Indenture. 
  
 The surviving, transferee or lessee Person shall be the successor Company, and thereafter, except in the case of a lease, the predecessor Company shall be
released and discharged from all obligations and covenants under this Indenture and the Securities. 
  
 ARTICLE 6 
  
 DEFAULTS AND REMEDIES 
  

	SECTION 6.1	Events of Default. 

  
 An “Event of Default” occurs if: 
  

	 	(1)	the Company defaults in the payment of interest on any Security when the same becomes due and payable and the default continues for a period of 30 days; 

  

	 	(2)	 the Company defaults in the payment of the principal of any Security when the same becomes due and payable at 

  

 -19- 

	 	 
maturity, upon redemption or otherwise, or in the making of any sinking fund payment required by paragraph 6 of the Securities; 

 

	 	(3)	the Company fails to comply with any of its other covenants, conditions or agreements in the Securities or this Indenture and the default continues for the period and after the
notice specified below; 

  

	 	(4)	the Company or any Material Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

  

	 	(A)	commences a voluntary case, 

  

	 	(B)	consents to the entry of an order for relief against it in an involuntary case, 

  

	 	(C)	consents to the appointment of a Custodian of it or for all or substantially all of its property, or 

  

	 	(D)	makes a general assignment for the benefit of its creditors; or 

  

	 	(5)	a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

  

	 	(A)	is for relief against the Company or any Material Subsidiary in an involuntary case, 

  

	 	(B)	appoints a Custodian of the Company or any Material Subsidiary or for all or substantially all of its property, or 

  

	 	(C)	orders the liquidation of the Company or any Material Subsidiary, and the order or decree remains unstayed and in effect for 60 days. 

  
 The term “Bankruptcy Law” means Title 11, U.S. Code or any
similar Federal or State law for the relief of debtors. The term “Custodian” mans any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 
  
 A Default under clause (3) is not an Event of Default until the Trustee
notifies the Company, or the Holders of at least 25% in principal amount of the outstanding Securities notify the Company and the Trustee, of the Default and the Company does not cure the Default within 60 days after receipt of the notice. The
notice must specify the Default, demand that it be remedied and state that the notice is a “Notice of Default”. 
  

	SECTION 6.2  	Acceleration. 

  
 If an Event of Default occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in 

  

 -20- 

 
principal amount of the outstanding Securities by notice to the Company and the Trustee, may declare the principal of and accrued interest to the date of
declaration on all the Securities to be due and payable immediately. Upon such declaration such principal and interest shall be due and payable immediately. The Holders of a majority in principal amount of the outstanding Securities by notice to the
Trustee may rescind or annul an acceleration and its consequences if all existing Events of Default have been cured or waived (other than the nonpayment of principal of and accrued interest on the Securities which shall have become due by
acceleration) and if the rescission or annulment would not conflict with any judgment or decree. 
  

	SECTION 6.3  	Other Remedies. 

  
 If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of
principal of or interest on the Securities or to enforce the performance of any provision of the Securities or this Indenture. 
  
 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy, or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any
other remedy. All available remedies are cumulative. 
  

	SECTION 6.4  	Waiver of Past Defaults. 

  
 Subject to Section 9.2, the Holders of a majority in principal amount of the outstanding Securities by notice to the Trustee may waive an existing Default
or Event of Default and its consequences. When a Default is waived, it is cured and stops continuing. 
  

	SECTION 6.5  	Control by Majority. 

  
 The Holders of a majority in principal amount of the outstanding Securities may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on it. The Trustee, however, may refuse to follow any direction that conflicts with law or this Indenture, that is unduly prejudicial to the rights of another Securityholder,
that would involve the Trustee in personal liability, or if the Trustee does not have sufficient indemnification against any loss or expense. 
  

	SECTION 6.6  	Limitation on Suits by Holders. 

  
 No Holder of any Security shall have any right by virtue or by availing of any provision of this Indenture to institute any 

  

 -21- 

 
action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to this Indenture, or for the appointment of a
Custodian, or for any other remedy hereunder unless such Holder previously shall have given to the Trustee written notice of Default and of the continuance thereof, as hereinbefore provided, and unless the Holders of not less than 25% in aggregate
principal amount of the Securities then outstanding also shall have made written request upon the Trustee to institute such action or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity as
it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action or proceeding
and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 6.5; it being understood and intended, and being expressly covenanted by the Holder of every Security with every other Holder and the
Trustee that no one or more Holders of Securities shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder of Securities, or to obtain or
seek to obtain priority over or preference to any other such Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Securities. For the protection and
enforcement of the provisions of this Section 6.6, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 
  

	SECTION 6.7  	Rights of Holders to Receive Payment. 

  
 Subject to Article 11 and Section 6.4 and notwithstanding any other provision of this Indenture, the right of any Holder of a Security to receive payment
of the principal of and interest on the Security, on or after the respective due dates expressed in the Security or any Redemption Date, or to institute suit for the enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of the Holder. 
  
 Also,
notwithstanding any other provisions of this Indenture, the right of any Holder of a Security to bring suit for the enforcement of his right to convert the Security shall not be impaired or affected without the consent of the Holder. 
  

	SECTION 6.8  	Collection Suit by Trustee. 

  
 If an Event of Default in payment of principal or interest specified in Section 6.1(1) or (2) occurs and is continuing, the Trustee may recover judgment
in its own name and as trustee of an express trust against the Company for the whole amount of such principal and interest remaining unpaid with interest on overdue principal and, to the extent that payment of such interest is 

  

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lawful, interest on overdue installments of interest, in each case at the rate borne by the Securities and such further amount as shall be sufficient for the
costs and expenses of collection, including the reasonable compensation, expenses and disbursements of the Trustee, its agents and counsel. 
  

	SECTION 6.9  	Trustee May File Proofs of Claim. 

  
 The Trustee may, and is appointed the true and lawful attorney-in-fact for the Holders of the Securities to: 
  

	 	(1)	file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses and disbursements of the Trustee, its agents and counsel) and the Securityholders allowed in any judicial proceedings relative to the Company upon the Securities, its creditors or its property; and 

  

	 	(2)	collect and receive any monies or property payable or deliverable on account of such claims and to distribute the same, and any Custodian in any such judicial proceedings is hereby
authorized by each Securityholder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Securityholders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses and disbursements to the Trustee, its agents and counsel, and any other amounts due to the Trustee under Section 7.7. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or
adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder
in any such proceeding. 

  

	SECTION 6.10  	Priorities. 

  
 If the Trustee collects any money pursuant to this Article, it shall pay out the money in the following order: 
  
 First: to the Trustee for amounts due under Section 7.7; 
  
 Second: to holders of Senior Indebtedness to the extent required by Article 11; 
  
 Third: to Securityholders for amounts due and unpaid on the Securities for principal and interest, ratably, without
preference 

  

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or priority of any kind, according to the amounts due and payable on the Securities for principal and interest, respectively; and 
  
 Fourth: to the Company. 
  
 The Trustee may fix a record date and payment date for any payment to
Securityholders. 
  

	SECTION 6.11  	Undertaking for Costs. 

  
 In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard for the merits and good faith of the claims or defenses made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by any Holder pursuant to Section 6.6, or a
suit by Holders of more than 10% in principal amount of the outstanding Securities, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security, on or after the respective due dates
expressed in the Security. 
  

	SECTION 6.12  	Waiver of Usury Laws 

  
 The Company covenants (to the extent that it may lawfully do so) that it will not at any time voluntarily insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and covenants (to the extent it may lawfully do so) that it will not hinder, delay or impede the execution of any power herein granted to the Trustee as a result of any such law,
but will suffer and permit the execution of every such power as though no such law had been enacted. In the event that the benefit or advantage of any such usury law may not be waived by the Company, notwithstanding anything herein or in the
Securities, the maximum amount of interest and other charges in the nature thereof contracted for or payable hereunder or thereunder, shall not exceed the maximum amount which may be lawfully contracted for, charged or received. 
  

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 ARTICLE 7 
  
 TRUSTEE 
  

	SECTION 7.1  	Duties of Trustee. 

  
 (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise its rights and powers and use the same degree of care and skill in
their exercise as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 
  
 (b) Except during the continuance of an Event of Default : 
  

	 	(1)	The Trustee need perform only those duties that are specifically set forth in this Indenture and no others. 

  

	 	(2)	In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. The Trustee, however, shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture.

  
 (c) The Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that : 
  

	 	(1)	This paragraph does not limit the effect of paragraph (b) of this Section. 

  

	 	(2)	The Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent
facts. 

  

	 	(3)	The Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5, and the
Trustee shall be entitled from time to time to request such a direction. 

  
 (d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section. 
  
 (e) The Trustee shall be under no obligation and may refuse to perform any duty or exercise any right or power under this
Indenture unless it receives security or indemnity satisfactory to it against any loss, liability or expense. 
  

 -25- 

 (f) The Trustee shall not be liable for interest on any money received by it except as the Trustee may
agree with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
  

	SECTION 7.2	  Rights of the Trustee. 

  
 (a) The Trustee may rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine and to have been
signed or presented by the proper person. The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney, to the extent reasonably required by such inquiry or investigation. 
  
 (b) Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Certificate or Opinion. 
  
 (c) The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed
with due care. 
  
 (d) The Trustee shall not be liable for any
action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers. 
  

	SECTION 7.3	  Individual Rights of Trustee. 

  
 The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its
affiliates with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee, however, must comply with Section 7.10 and 7.11. 
  

	SECTION 7.4	  Trustee’s Disclaimer. 

  
 The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities; it shall not be accountable for the Company’s
use of the proceeds from the Securities; and it shall not be responsible for any statement in the Securities other than its certificate of authentication, or in any prospectus used in the sale of Securities, other than statements provided in writing
by the Trustee for use in such prospectus. 
  

 -26- 

	SECTION 7.5	  Notice of Defaults. 

  
 If a Default occurs and is continuing and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder, as
provided in Section 12.2, notice of Default within 90 days after it occurs. Except in the case of a Default in payment of principal of or interest on any Security or in the making of any sinking fund payment required by paragraph 6 of the
Securities, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interest of Securityholders. 
  

	SECTION 7.6  	Reports by Trustee to Holders. 

  
 Within 60 days after each May 15 beginning with the May 15 in the year following the date of this Indenture, the Trustee shall mail to each Securityholder
specified in TIA § 313(c) a brief report dated as of May 15 that complies with TIA § 313(a). The Trustee shall also comply with TIA § 313(b). 
  
 A copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each stock exchange on which the Securities are
listed. 
  

	SECTION 7.7	  Compensation and Indemnity. 

  
 The Company shall pay to the Trustee from time to time reasonable compensation for its services, which compensation shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses, disbursements and advances incurred by it in accordance with any provision of this
Indenture. Such expenses may include the reasonable compensation and expenses of the Trustee’s agents and counsel. 
  
 The Trustee shall not be under any obligation to institute any suit, or take any remedial action under this Indenture, or to enter any appearance or in
any way defend in any suit in which it may be a defendant, or to take any steps in the execution of the trusts created hereby or thereby or in the enforcement of any rights and powers under this Indenture, until it shall be indemnified to its
satisfaction against any and all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture, including compensation for services, costs, and expenses, outlays, and counsel fees
and other disbursements, and against all liability not due to its willful misconduct, negligence or bad faith. The Company shall indemnify the Trustee against any loss or liability incurred by it in connection with the acceptance and administration
of the trust and its duties hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of 

  

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its powers or duties hereunder. The Trustee hereby represents to the Company that it has no knowledge of any act or condition which would give rise to such a
loss or liability, including contractual arrangements, if any, which existed on or before the date hereof. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity, however, unless the position of the Company is
prejudiced by such failure, the failure of the Trustee to promptly notify the Company shall not limit its right to indemnification. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may retain separate
counsel and the Company shall reimburse the Trustee for the reasonable fees and expenses of such counsel. Once the Company assumes the defense of such claim, the Trustee shall pay all such fees and expenses incurred by the continued retention of
such counsel. If, however, such counsel advises the Company and the Trustee as to such claim that the posture of the Company is or may be inconsistent with the posture of the Trustee, then the Trustee may continue the defense of such claim with its
counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent. 
  
 The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee through the Trustee’s willful
misconduct, negligence or bad faith. 
  
 To secure the
Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities.

  
 When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.1(3) or (4) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. 
  

	SECTION 7.8.  	Replacement of Trustee. 

  
 The Trustee may resign at any time by giving written notice thereof to the Company. The Holders of a majority in principal amount of the outstanding
Securities may remove the Trustee by so notifying the removed Trustee and may appoint a successor with the Company’s consent. The Company may remove the Trustee if: 
  

	 	(1)	the Trustee fails to comply with Section 7.10; 

  

	 	(2)	the Trustee is adjudged a bankrupt or an insolvent; 

  

	 	(3)	a receiver or other public officer takes charge of the Trustee or its property; or 

  

	 	(4)	the Trustee becomes incapable of acting. 

  

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 If the Trustee resigns or is removed or if a vacancy exists in the office of the Trustee for any reason,
the Company shall promptly appoint a successor Trustee. 
  
 A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to
the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall
mail notice of its succession to each Securityholder. 
  
 If a
successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in principal amount of the outstanding Securities may petition any court of
competent jurisdiction for the appointment of a successor Trustee. 
  
 If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  

	SECTION 7.9.  	Successor Trustee by Merger, etc. 

  
 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust assets to, another corporation or
national banking association, the successor corporation or association without any further act shall be the successor Trustee; provided such corporation or association shall be otherwise eligible and qualified under this Article. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to
the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor
Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.7. 
  

	SECTION 7.10  	Eligibility; Disqualification. 

  
 This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1). The Trustee shall have a Combined capital and surplus
of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA § 310(b), including the optional provision permitted by the second sentence of TIA § 310(b)(9). 
  

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	SECTION 7.11  	Preferential Collection of Claims Against Company. 

  
 The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been
removed shall be subject to TIA § 311(a) to the extent indicated. 
  
 ARTICLE 8 
  
 DISCHARGE OF INDENTURE 
  

	SECTION 8.1  	Termination of Company’s Obligations. 

  
 The Company may terminate all of its obligations under the Securities and this Indenture if all Securities previously authenticated and delivered (other
than destroyed, lost or stolen Securities which have been replaced or paid) have been delivered to the Trustee cancelled or for cancellation, or if: 
  

	 	(1)	the Securities will mature within one year or all of them are to be called for redemption within one year under arrangements satisfactory to the Trustee for giving the notice of
redemption; and 

  

	 	(2)	the Company irrevocably deposits in trust with the Trustee money or U.S. Government Obligations sufficient to pay principal and interest on the Securities to the Stated Maturity or
Redemption Date, as the case may be. 

  
 The
Company’s obligations in paragraph 13 of the Securities and in Section 2.3, 2.4, 2.5, 2.6, 2.7, 7.7 and 7.8, and in Article 10, however, shall survive until the Securities are no longer outstanding. Thereafter the Company’s obligations in
such paragraph 13 and in Section 7.7 shall survive. 
  
 After a
deposit pursuant to Section 8.1(2) hereof the Trustee upon request shall acknowledge in writing the discharge of the Company’s obligations under the Securities and this Indenture except for those surviving obligations specified above.

  
 In order to have money available on a payment date to pay
principal of or interest on the Securities, the U.S. Government Obligations shall be payable as to principal or interest, without any reinvestment of interest, on or before such payment date in such amounts as will provide the necessary money. U.S.
Government Obligations shall not be callable at the issuer’s option. 
  
 “U.S. Government Obligations” means direct obligations of the United States for the payment of which the full faith and credit of the United States is pledged. 
  

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	SECTION 8.2  	Application of Trust Money. 

  
 The Trustee shall hold in trust any money or U.S. Government Obligations deposited with it pursuant to Section 8.1. It shall apply the deposited money and
the proceeds from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of and interest on the Securities. Money and securities so held in trust are not subject to the subordination
provisions of Article 11. 
  

	SECTION 8.3  	Repayment to Company. 

  
 The Trustee and the Paying Agent shall promptly pay to the Company upon request any excess money or securities held by them at any time. The Trustee and
the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal or interest that remains unclaimed for two years. After payment to the Company, Securityholders entitled to the money must look to the Company
for payment as general creditors unless an applicable abandoned property law designates another Person. 
  

	SECTION 8.4  	Reinstatement. 

  
 If (i) the Trustee or Paying Agent is unable to apply any money in accordance with Section 8.2 by reason of any order or judgement of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application and (ii) the Holders of at least a majority in principal amount of the then outstanding Securities so request by written notice to the Trustee, the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.2; provided, however, that if the Company makes any payment of principal or interest on any Securities following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such
Securities to receive such payment from the money held by the Trustee or Paying Agent. 
  
 ARTICLE 9 
  
 AMENDMENTS,
SUPPLEMENTS AND WAIVERS 
  

	SECTION 9.1  	Without Consent of Holders. 

  
 The Company may amend or supplement this Indenture or the Securities without notice to or consent of any Securityholder: 
  

	 	(1)	to cure any ambiguity, defect or inconsistency; 

  

	 	(2)	to comply with Sections 5.1 and 10.14; 

  

 -31- 

	 	(3)	to provide for uncertificated Securities in addition to or in place of certificated Securities so long as such uncertificated Securities are in registered form for purposes of the
Internal Revenue Code of 1986, as amended; or 

  

	 	(4)	to make any change that does not materially adversely affect the rights of any Securityholder (including but not limited to a supplement to this Indenture under Section 5.1).

  
 The Trustee may waive compliance by the Company
with any provision of this Indenture or the Securities without notice to or consent of any Securityholder if the waiver does not adversely affect the rights of any Securityholder. 
  

	SECTION 9.2  	With Consent of Holders. 

  
 The Company may amend or supplement this Indenture or the Securities without notice to any Securityholder but with the written consent of the Holders of
at least a majority in aggregate principal amount of the outstanding Securities. The Holders of a majority in principal amount of the outstanding Securities may waive compliance by the Company with any provision of this Indenture or the Securities
without notice to any Securityholder. Without the consent of each Securityholder affected, however, an amendment, supplement or waiver, including a waiver pursuant to Section 6.4, may not: 
  

	 	(1)	reduce the percentage in aggregate principal amount of Securities whose Holders must consent to an amendment, supplement or waiver; 

  

	 	(2)	reduce the rate of or extend the time for payment of interest on any Security; 

  

	 	(3)	reduce the principal amount of or extend the Stated Maturity of any Security; 

  

	 	(4)	change the amount or time of any sinking fund payment required by paragraph 6 of the Securities; 

  

	 	(5)	reduce the Redemption Price of any Security; 

  

	 	(6)	waive a default in the payment of the principal of or interest on any Security; 

  

	 	(7)	make any Security payable in money other than that stated in the Security; 

  

	 	(8)	make any change that adversely affects the right to convert any Security or that increases the Conversion Price of any Security; or 

  

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	 	(9)	make any change that adversely affects the right to require the Company to purchase the Securities in accordance with the terms thereof and this Indenture. 

 
 It shall not be necessary for the consent of the Holders under this
section to approve the particular form of any proposed supplement, but it shall be sufficient if such consent approves the substance thereof. 
  
 No amendment may be made to Article 11 which adversely affects the rights of any holder of Senior Indebtedness then outstanding, unless the holders of
such Senior Indebtedness consent to such change. 
  

	SECTION 9.3  	Compliance with Trust Indenture Act. 

  
 Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA as then in effect. 
  

	SECTION 9.4  	Revocation and Effect of Consents. 

  
 A consent to an amendment, supplement or waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. Any such Holder or subsequent Holder, however, may revoke the consent as to his Security or portion of a
Security. Such revocation shall be effective only if the Trustee receives the notice of revocation before the date the amendment, supplement or waiver becomes effective. 
  
 An amendment, supplement or waiver shall become effective when it has been approved as provided in Section 9.1 or 9.2. After
an amendment, supplement or waiver becomes effective, it shall bind every Securityholder unless it makes a change described in any of clauses (2) through (9) of Section 9.2. In that case the amendment, supplement or waiver shall bind each Holder of
a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security. 
  

	SECTION 9.5  	Notation on or Exchange of Securities. 

  
 If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee.
The Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall issue and execute and
request that the Trustee authenticate and deliver a new security that reflects the changed terms. 
  

 -33- 

	SECTION 9.6  	Trustee to Sign Amendments, etc. 

  
 The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article if the amendment, supplement or waiver does not adversely
affect the rights of the Trustee. If it does, the Trustee may but need not sign it. The Company may not sign an amendment or supplement until the Board of Directors approves it. 
  
 ARTICLE 10 
  
 CONVERSION 
  

	SECTION 10.1  	Conversion Privilege. 

  
 A Holder of a Security may convert such Security into Common Stock at any time during the period stated in paragraph 9 of the Securities. The number of
shares of Common Stock issuable upon conversion of a Security is determined as follows: Divide the principal amount converted by the Conversion Price. Round the result to the nearest l/100th of a share. 
  
 The initial Conversion Price is stated in paragraph 9 of Exhibit A. The
Conversion Price is subject to adjustment. See Sections 10.6 through 10.11. 
  
 A Holder may convert a portion of the principal amount of a Security if the portion is $1,000 or an integral multiple of $1,000. Provisions of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security. 
  
 “Quoted
Price” means, for any given day, the last reported per share sale price (or, if no sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and average ask prices) on
such day of the Common Stock on the New York Stock Exchange or, in the event shares of Common Stock are not listed on the New York Stock Exchange, such other national or regional securities exchange upon which the Common Stock is listed, or, if the
shares of Common Stock are not listed on a national or regional securities exchange, as quoted on the National Association of Securities Dealers Automated Quotation System or by the National Quotation Bureau Incorporated. In the absence of one or
more such quotations, the Company shall be entitled to determine the Quoted Price on the basis of such quotations as it considers appropriate. 
  
 “Average Quoted Price” means the average of the Quoted Prices of the Common Stock for the shorter of 
  
 (i) 30 consecutive trading days ending on the last full
trading day prior to the Time of Determination with respect to the rights or warrants or distribution in respect of which the Average Quoted Price is being calculated, or 
  

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 (ii) the period (x) commencing on the date next succeeding the first public announcement
of (a) the issuance of rights or warrants or (b) the distribution, in each case, in respect of which the Average Quoted Price is being calculated and (y) proceeding through the last full trading day prior to the Time of Determination with respect to
the rights, warrants or distribution in respect of which the Average Quoted Price is being calculated, or 
  
 (iii) the period, if any, (x) commencing on the date next succeeding the Ex-Dividend Time with respect to the next preceding (a) issuance
of rights or warrants or (b) distribution, in each case, for which an adjustment is required by the provisions of Section 10.6(4), 10.7 or 10.8 and (y) proceeding through the last full trading day prior to the Time of Determination with respect to
the rights, warrants or distribution in respect of which the Average Quoted Price is being calculated. 
  
 In the event that the Ex-Dividend Time (or in the case of a subdivision, combination or reclassification, the effective date with respect thereto) with
respect to a dividend, subdivision, combination or reclassification to which Section 10.6(1), (2), (3), or (5) applies occurs during the period applicable for calculating “Average Quoted Price” pursuant to the definition in the
preceding sentence, “Average Quoted Price” shall be calculated for such period in a manner determined by the Board of Directors to reflect the impact of such dividend, subdivision, combination or reclassification on the
Quoted Price of the Common Stock during such period. 
  
 “Time of Determination” means the time and date of the earlier of (i) the determination of stockholders entitled to receive rights, warrants or a distribution, in each case, to which Section 10.7 or 10.8 applies and (ii)
the time (“Ex-Dividend Time”) immediately prior to the commencement of “ex-dividend” trading for such rights, warrants or distribution on the New York Stock Exchange or such other national or regional exchange or market on
which the Common Stock is then listed or quoted. 
  
 “Common Stock” means Common Stock, $.01 par value, of the Company as it exists on the date of this Indenture as originally signed. 
  

	SECTION 10.2  	Conversion Procedure. 

  
 To convert a Security, a Holder must satisfy the requirements in paragraph 9 of the Securities. The date on which the Holder satisfies all those
requirements is the conversion date (the ‘“Conversion Date”). As soon as practicable after the Conversion date, the Company shall deliver through the Conversion Agent a certificate for the number of full shares of Common Stock
issuable upon the conversion and a check in lieu of any fractional share. 

  

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The Person in whose name the certificate is registered becomes a shareholder of record on the Conversion Date; provided, however, that no
surrender of a Security on any date when the stock transfer books of the Company shall be closed shall be effective to constitute the person or persons entitled to receive the shares of Common Stock upon such conversion as the record holder or
holders of such shares of Common Stock on such date, but such surrender shall be effective to constitute the person or persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the close of
business on the next succeeding day on which such stock transfer books are open; such conversion shall be at the Conversion Price in effect on the date that such Security shall have been surrendered for conversion, as if the stock transfer books of
the Company had not been closed. Upon conversion of a Security, such person shall no longer be a Holder of such Security. 
  
 Holders may surrender Securities for conversion by means of book entry delivery in accordance with paragraph 9 of the Securities and the regulations of
the applicable book entry facility. 
  
 No payment or adjustment
will be made for dividends on any Common Stock except as provided in this Article 10. Securities surrendered for conversion after the record date for the payment of interest but before the close of business on the interest payment date (other than
Securities called for redemption on a Redemption Date within such period) must be accompanied by payment of an amount equal to the interest payable on such interest payment date. 
  
 If a Holder converts more than one Security at the same time, the number of full shares issuable upon the conversion shall
be based on the total principal amount of the Securities converted. 
  
 Upon surrender of a Security that is converted in part, the Trustee shall authenticate for the Holder a new Security equal in principal amount to the unconverted portion of the Security surrendered. 
  
 If the last day on which a Security may be converted is a Legal Holiday in a
place where a Conversion Agent is located, the Security may be surrendered to that Conversion Agent on the next succeeding day that is not a Legal Holiday. 
  

	SECTION 10.3  	Fractional Shares. 

  
 The Company will not issue a fractional share of Common Stock upon conversion of a Security. Instead the Company will deliver its check for the current
market value of the fractional share. The current market value of a fraction of a share is determined as follows: Multiply the current market price of a full share by the fraction. Round the result to the nearest cent. 
  

 -36- 

 The current market price of a share of Common Stock for the purpose of this Section 10.3 shall be the
Quoted Price of the Common Stock on the last trading day prior to the Conversion Date. In the absence of any such quotation, the Company shall determine the current market price on the basis of such quotations as it considers appropriate.

  

	SECTION 10.4  	Taxes on Conversion. 

  
 If a Holder of a Security converts it, the Company shall pay any documentary, stamp or similar issue tax due on the issue of shares of Common Stock upon
the conversion. The Holder, however, shall pay any such tax which is due because the shares are issued in a name other than the Holder’s. 
  

	SECTION 10.5  	Company, to Provide Stock. 

  
 The Company shall reserve out of its authorized but unissued shares of Common Stock or its shares of Common Stock held in treasury enough shares of Common
Stock to permit the conversion of the Securities. 
  
 All shares
of Common Stock which may be issued upon conversion of the Securities shall be fully paid and non-assessable. 
  
 In order that the Company may issue shares of Common Stock upon conversion of the Securities, the Company will endeavor to comply with all applicable
Federal and State securities laws and will endeavor to list such shares on each national securities exchange, if any, on which the Common Stock is listed. 
  

	SECTION 10.6  	Adjustment for Change in Capital Stock. 

  
 Except as provided in Section 10.18, if the Company: 
  

	 	(1)	pays a stock dividend or makes a distribution in shares of its Common Stock; 

  

	 	(2)	subdivides its outstanding shares of Common Stock into a greater number of shares; 

  

	 	(3)	combines its outstanding shares of Common Stock into a smaller number of shares; 

  

	 	(4)	distributes to all holders of its Common Stock shares of its capital stock other than Common Stock; or 

  

	 	(5)	issues by reclassification of its shares of Common Stock any shares of its capital stock, 

  
 then the conversion privilege and the Conversion Price in effect immediately prior to such action shall be adjusted so that the Holder of
any Security thereafter converted may receive the number 

  

 -37- 

 
of shares of capital stock of the Company which he would have owned immediately following such action if he had converted the Security immediately prior to
such action. 
  
 For a dividend or distribution in shares, the
adjustment shall become effective immediately after the record date for the dividend or distribution. For a subdivision, combination or reclassification, the adjustment shall become effective immediately after the effective date of the subdivision,
combination or reclassification. 
  
 If after an adjustment a
Holder of a Security upon conversion of it may receive shares of two or more classes of capital stock of the Company, the Board of Directors shall determine the allocation of the adjusted Conversion Price between or among the classes of capital
stock. After such allocation, the conversion privilege and the Conversion Price of each class of capital stock shall thereafter be subject to adjustment on terms comparable to those applicable to Common Stock in this Indenture. 
  

	SECTION 10.7  	Adjustment for Rights Issue. 

  
 If the Company issues any rights or warrants to all holders of shares of its Common Stock entitling them for a period expiring within 60 days after the
record date mentioned below to purchase shares of Common Stock (or securities convertible into shares of Common Stock) at a price per share (or having a conversion price per share) less than the Quoted Price as of the Time of Determination, the
Conversion Rate shall be adjusted in accordance with the following formula: 
  

					
	C’	  	=	  	C x (O + ((N x P)/M))
	 	  	 	  	                O + N

  
 where: 
  

	 	C’ =	the adjusted Conversion Price. 

  

	 	C =	the current Conversion Price. 

  

	 	O =	the number of shares of Common Stock outstanding on the record date for the distribution to which this Section 10.7 is being applied. 

  

	 	N =	the number of additional shares of Common Stock offered pursuant to the distribution. 

  

	 	P =	the offering price (or conversion price) per share of the additional shares. 

  

	 	M =	 the Average Quoted Price, minus, in the case of (i) a distribution to which Section 10.6(4) applies or (ii) a distribution to which Section 10.8 applies, for
which, in each case, (x) the record date shall occur on or 

  

 -38- 

	 	 
before the record date for the distribution to which this Section 10.7 applies and (y) the Ex-Dividend Time shall occur on or after the date of the Time of
Determination for the distribution to which this Section 10.7 applies, the fair market value (on the record date for the distribution to which this Section 10.7 applies) of the 

  
 (1) capital stock of the Company distributed in respect of each share of
Common Stock in such Section 10.6(4) distribution and 
  
 (2)
debt securities or any rights, warrants or options to purchase securities of the Company distributed in respect of each share of Common Stock in such Section 10.8 distribution. 
  
 The Board of Directors shall determine fair market values for the purposes of this Section 10.7. 
  
 The adjustment shall be made successively whenever any such rights or
warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive the rights or warrants. If all of the shares of Common Stock or securities convertible into shares of Common
Stock subject to such rights or warrants have not been issued when such rights or warrants expire, then the conversion price shall promptly be readjusted to the conversion price which would then be in effect had the adjustment upon the issuance of
such rights or warrants been made on the basis of the actual number of shares, of Common Stock (or securities convertible into shares of Common Stock) issued upon the exercise of such rights or warrants. 
  

	SECTION 10.8  	Adjustment for Other Distributions. 

  
 If the Company distributes to all holders of shares of its Common Stock any of its assets or debt securities or any rights or warrants to purchase
securities of the Company, but excluding distributions of capital stock referred to in Section 10.6 and distributions of rights, warrants or options referred to in Section 10.7, the Conversion Price shall be adjusted in accordance with the following
formula. 
  
 C’ = C x M-F 
                 M 
  
 where: 
  

	 	C’ =	the adjusted Conversion Price. 

  

	 	C  =	the current Conversion Price. 

  

 -39- 

	 	M =	the Average Quoted Price, minus, in the case of a distribution to which Section 10.6(4) applies, for which (i) the record date shall occur on or before the record date for
the distribution to which this Section 10.8 applies and (ii) the Ex-Dividend Time shall occur on or after the date of the Time of Determination for the distribution to which this Sections 10.8 applies, the fair market value (on the record date for
the distribution to which this Section 10.8 applies) of any capital stock of the Company distributed in respect of each share of Common Stock in such Section 10.6(4) distribution. 

  

	 	F =	the fair market value (on the record date for the distribution to which this Section 10.8 applies) of the assets, securities, rights, warrants or options to be distributed in
respect of each share of Common Stock in the distribution to which this Section 10.8 is being applied. 

  
 The Board of Directors shall determine fair market values for the purposes of this Section 10.8, which determination shall be conclusive. 
  
 The adjustment shall be made successively whenever any such distribution is
made, and shall become effective immediately after the record date for the determination of stockholders entitled to receive the distribution. In the event that, with respect to any distribution to which this Section 10.8 would otherwise apply, the
difference “M-F” as defined in the above formula is less than $1.00 or “F” is greater than “M”, then the adjustment provided by this Section 10.8 shall not be made and in lieu thereof the provisions of Section 10.14
shall apply to such distribution. 
  
 This Section does not apply
to cash dividends or cash distributions paid out of consolidated current net income or retained earnings as shown on the books of the Company. Also, this Section does not apply to rights or warrants referred to in Section 10.7. 
  
 No adjustment in the conversion price need be made under Section 10.7 or this
Section for sales of shares of Common Stock pursuant to a Company plan providing for reinvestment of dividends or interest or a Company stock option plan under which options may be granted generally to employees or affiliates of the Company.

  

	SECTION 10.9  	Voluntary Adjustment. 

  
 The Company at any time after reasonable notice to the Trustee and to Holders, may decrease, either permanently or for a limited period of time, the
Conversion Price by any amount. 
  

 -40- 

	SECTION 10.10  	When Adjustment May be Deferred. 

  
 No adjustment in the conversion price need be made unless the adjustment would require an increase or decrease of at least $0.25 in the Conversion Price.
Any adjustments which are not made shall be carried forward and taken into account in any subsequent adjustment. 
  
 All calculations under this Article shall be made to the nearest cent or to the nearest l/100th of a share, as the case may be. 
  

	SECTION 10.11  	When Adjustment is Not Required. 

  
 Unless this Article provides otherwise, no adjustment in the Conversion Price shall be made because the Company issues, in exchange for cash, property or
services, shares of its capital stock including without limitation, Common Stock, or any securities convertible into or exchangeable for shares of its capital stock including without limitation, Common Stock, or securities carrying the right to
purchase shares of its capital stock including without limitation, Common Stock or such convertible or exchangeable securities. 
  

	SECTION 10.12  	Notice of Adjustment. 

  
 Whenever the Conversion Price is required to be adjusted, the Company shall promptly mail to Securityholders a notice of the adjustment and file with the
Trustee an Officers’ Certificate setting forth in reasonable detail facts requiring the adjustment and the manner of computing it. The Certificate shall be conclusive evidence that the adjustment is correct. 
  

	SECTION 10.13  	Notice of Certain Transactions. 

  
 If: 
  

	 	(1)	the Company takes any action which would required an adjustment in the conversion price pursuant to Section 10.6, 10.7 or 10.8; 

  

	 	(2)	the Company takes any action that would require a supplemental indenture pursuant to Section 10.14; or 

  

	 	(3)	there is a dissolution or liquidation of the Company, the Company shall mail to Securityholders and the Trustee a notice stating the proposed record or effective date, as the case
may be, of the transaction. 

  
 The Company shall mail the notice at
least 10 days before such date. Failure to mail the notice or any defect in it shall not affect the validity of any transaction referred to in clause (1), (2) or (3) of this Section. 
  

 -41- 

	SECTION 10.14  	Consolidation, Merger or Sale of the Company. 

  
 If the Company is a party to a transaction described in Section 5.1 or a merger which reclassifies or changes its outstanding Common Stock, the Person
obligated to deliver securities, cash or assets upon conversion of Securities shall enter into a supplemental indenture. If the issuer of securities deliverable upon conversion of Securities is an affiliate of the surviving, transferee or lessee
Person, the issuer shall join in the supplemental indenture. The supplemental indenture shall provide that the Holder of a Security may convert it into the kind and amount of securities or assets which he would have owned immediately after the
consolidation, merger or transfer if he had converted the Security immediately before the effective date of such transaction. The supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practical to the
adjustments provided for in this Article. The Trustee shall mail to each Securityholder a notice briefly describing the supplemental indenture. 
  
 If this Section applies, neither Section 10.6 nor Section 10 .7 apply. 
  
 If the Company makes a distribution to all holders of its Common Stock of any of its assets, or debt securities or any
rights, warrants or options to purchase securities of the Company that, but for the provisions of the antepenultimate paragraph of Section 10.8, would otherwise result in an adjustment in the Conversion Price pursuant to the provisions of Section
10.8, then, from and after the record date for determining the holders of Common Stock entitled to receive the distribution, a Holder of a Security that converts such Security in accordance with the provisions of this Indenture would upon such
conversion be entitled to receive, in addition to the shares of Common Stock into which the Security is convertible, the kind and amount of securities, cash or other assets comprising the distribution that such Holder would have received if such
Holder had converted the Security immediately prior to the record date for determining the holders of Common Stock entitled to receive the distribution, provided, however, that the Holders of Securities not converted on or prior to Stated Maturity
shall not receive such securities, cash or other assets which shall revert to the Company. 
  

	SECTION 10.15  	Company Determination Final. 

  
 Any determination which the Board of Directors must make pursuant to this Article 10 is conclusive. 
  

	SECTION 10.16  	Trustee’s Disclaimer. 

  
 The Trustee has no duty to determine when an adjustment under this Article should be made, how it should be made or what it should be. The Trustee has no
duty to determine whether any provisions of a supplemental indenture under Section 10.14 are 

  

 -42- 

 
correct. The Trustee makes no representation as to the validity or value of any securities or assets issued upon conversion of Securities. The Trustee shall
not be responsible for the Company’s failure to comply with this Article. Each Conversion Agent other than the Company shall have the same protection under this Section as the Trustee. 
  

	SECTION 10.17  	Simultaneous Adjustments. 

  
 In the event that this Article 10 requires adjustments to the Conversion Price under more than one of Sections 10.6(4), 10.7 or 10.8, and the record dates
for the distributions giving rise to such adjustments shall occur on the same date, then such adjustments shall be made by applying, first, the provisions of Section 10.6, second, the provisions of Section 10.8 and, third, the provisions of Section
10.7. 
  

	SECTION 10.18  	Successive Adjustments. 

  
 After an adjustment to the Conversion Price under this Article 10, any subsequent event requiring an adjustment under this Article 10 shall cause an
adjustment to the Conversion Price as so adjusted. 
  
 ARTICLE 11

  
 SUBORDINATION 
  

	SECTION 11.1  	Securities Subordinated to Senior Indebtedness. 

  
 The Company agrees, and each Holder of Securities by his acceptance thereof likewise agrees, that the payment of the principal of and interest on the
Securities is subordinated, to the extent and in the manner provided in this Article, to the prior payment in full of all Senior Indebtedness. 
  
 This Article shall constitute a continuing offer to all persons who, in reliance upon such provisions, become holders of, or continue to hold Senior
Indebtedness, and such provisions are made for the benefit of the holders of Senior Indebtedness, and such holders are made obligees hereunder and they and/or each of them may enforce such provisions. 
  

	SECTION 11.2  	Company Not to Make Payments with Respect to Securities in Certain Circumstances. 

  
 (a) Upon the maturity of any Senior Indebtedness by lapse of time, acceleration or otherwise, all principal thereof, and
accrued interest thereon shall first be paid in full, or such payment duly provided for in cash or in a manner satisfactory to the holders of such Senior Indebtedness, before any payment is made on account of the principal of or interest on the
Securities or to acquire any of the Securities or on account of the sinking 

  

 -43- 

 
fund provisions of paragraph 6 of the Securities (except sinking fund payments made in respect of Securities acquired by the Company before the maturity of
such Senior Indebtedness). 
  
 (b) Upon the happening of any
default in the payment of the principal of, sinking fund or interest on any Senior Indebtedness (a “Payment Default”), then, unless and until such Payment Default shall have cured or waived in writing or shall have ceased to exist,
no payment shall be made by the Company with respect to the principal of or interest on the Securities or to acquire any of the Securities or on account of the sinking fund provisions of paragraph 6 of the Securities (except sinking fund payments
made in respect of Securities acquired by the Company before such default and notice thereof). Nothing in this Article, however, shall relieve the holders of such Senior Indebtedness or their representative from any notice requirements set forth in
the instrument evidencing such Senior Indebtedness. 
  
 (c) During
the continuance of any other event of default with respect to Senior Indebtedness entitling the holders thereof to accelerate the maturity thereof, upon written notice given to the Company and the Trustee by any holder of Senior Indebtedness or
their representative no payment may be made by the Company upon or in respect of the Securities, unless such default is cured or waived or shall have ceased to exist, for a period of 179 days after the earlier of the date the Company or the Trustee
receives written notice of such default from a person entitled to give such notice but payments may thereafter be resumed if such default is not then the subject of a judicial proceeding. No new 179 day period of suspension of payments relating to
the same default (or another default in existence at the time of the prior notice) on the same issue of Senior Indebtedness may be commenced within one year after the first such notice relating thereto. 
  
 (d) In the event that, notwithstanding the provisions of this Section 11.2,
the Company shall make any payment to the Trustee on account of the principal of or interest on the Securities, or on account of the sinking fund provisions of paragraph 6 of the Securities, after the happening of a default with respect to Senior
Indebtedness specified in this Section 11.2, then, unless and until such default shall have been cured or waived or shall have ceased to exist, such payment (subject to the provisions of Sections 11.6 and 11.7) shall be held by the Trustee, in trust
for the benefit of, and shall be paid forthwith over and delivered to, the holders of Senior Indebtedness (pro rata as to each of such holders on the basis of the respective amounts of Senior Indebtedness held by them) or their representative or the
trustee under the indenture or other agreement (if any) pursuant to which Senior Indebtedness may have been issued, as their respective interests may appear, for application to the payment of all Senior Indebtedness remaining unpaid to the extent
necessary to pay all Senior Indebtedness in full in accordance with its terms, after giving effect to any concurrent payment or distribution to or for the holders of Senior 

  

 -44- 

 
Indebtedness. The Company shall give prompt written notice to the Trustee of any default with respect to Senior Indebtedness specified in this Section 11.2.

  
 (e) In the event the Securities are declared due and payable
prior to their Stated Maturity by reason of the occurrence of an Event of Default, the Company shall promptly notify holders of Senior Indebtedness of such acceleration; and the Company shall not make any payment in respect of the Securities until
the 121st day after such acceleration occurs; and thereafter may make payments in respect of the Securities only if this Indenture and the terms of then outstanding Senior Indebtedness otherwise permit such payments. 
  

	SECTION 11.3  	Securities Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation or Reorganization of Company. 

  
 Upon any distribution of assets of the Company upon any dissolution, winding
up, liquidation or reorganization of the Company (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or otherwise): 
  
 (a) the holders of all Senior Indebtedness shall first be entitled to receive payments in full of the principal thereof and
interest due thereon before the Holders of the Securities are entitled to receive any payment on account of the principal of or interest on the Securities; 
  
 (b) any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the
Securities or the Trustee on behalf of the Holders of the Securities would be entitled except for the provisions of this Article 11, shall be paid by the liquidating trustee or agent or other person making such payment or distribution directly to
the holders of Senior Indebtedness or their representative, or to the trustee under any indenture under which Senior Indebtedness may have been issued (pro rata as to each such holder, representative or trustee on the basis of the respective amounts
of unpaid Senior Indebtedness held or represented by each), to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution or provision therefor to the
holders of such Senior Indebtedness; and 
  
 (c) in the event that
notwithstanding the foregoing provisions of this Section 11.3, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, shall be received by the Trustee or the Holders of the Securities
on account of principal of or interest on the Securities before all Senior Indebtedness is paid in full, or effective provision made for its payment, such payment or distribution (subject to the provisions of Sections 11.6 and 11.7) 

  

 -45- 

 
shall be received and held in trust for and shall be paid over to the holders of the Senior Indebtedness remaining unpaid or unprovided for or their
representative, or to the trustee under any indenture under which such Senior Indebtedness may have been issued (pro rata as provided in subsection (b) above), for application to the payment of such Senior Indebtedness until all such Senior
Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution or provisions therefor to the holders of such Senior Indebtedness. 
  
 Upon any payment or distribution of assets of the Company referred to in this Article 11, the Trustee and the Holders shall
be entitled to rely upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, delivered to the Trustee or to the Holders, for the purpose of ascertaining the person
entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 11. The Trustee shall be entitled to rely on the delivery to it of a written notice by a person representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such
notice has been given by a holder of Senior Indebtedness or a trustee on behalf of any such holder. In the event that the Trustee determines, in good faith, that further evidence is required with respect to the right of any person as a holder of
Senior Indebtedness to participate in any payments or distribution pursuant to this Article 11, the Trustee may request such person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by
such person, as to the extent to which such person is entitled to participate in such payment or distribution, and as to other facts pertinent to the rights of such person under this Article 11, and if such evidence is not furnished, the Trustee may
defer any payment to such person pending judicial determination as to the right of such person to receive such payment. 
  
 The Company shall give prompt written notice to the Trustee any dissolution, winding up, liquidation or reorganization of the Company. 
  

	SECTION 11.4	Securityholders to Be Subrogated to Right of Holders of Senior Indebtedness. 

  

Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities shall be subrogated equally and ratably to the rights of the
holders of Senior Indebtedness to receive payments or distributions of assets of the Company applicable to the Senior Indebtedness until all amounts owing on the Securities shall be paid in full, and for the purpose of such subrogation no payments
or distributions to the holders of the senior Indebtedness by or on behalf of the Company or by or on 

  

 -46- 

 
behalf of the Holders of the Securities by virtue of this Article 11 which otherwise would have been made to the Holders of the Securities shall, as between
the Company, its creditors other than holders of Senior Indebtedness and the Holders of the Securities, be deemed to be payment by the Company to or on account of the Senior Indebtedness, it being understood that the provisions of this Article 11
are and are intended solely for the purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand. 
  

	SECTION 11.5	Obligations of the Company Unconditional. 

  
 Nothing contained in this Article 11 or elsewhere in this Indenture or in any Security is intended to or shall impair, as between the Company, its
creditors other than holders of Senior Indebtedness and the Holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Securities the principal of and interest on the Securities as and
when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of the Securities and creditors of the Company other than the holders of the Senior Indebtedness, nor
shall anything herein or therein prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article 11 of the
holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
  
 Nothing contained in this Article 11 or elsewhere in this Indenture or in any Security is intended to or shall affect the obligation of the Company to
make, or prevent the Company from making, at any time except during the pendency of any dissolution, winding up, liquidation or reorganization proceeding, and except during the continuance of any event of default specified in Section 11.2 (not cured
or waived) payments at any time of the principal of or interest on the Securities. 
  

	SECTION 11.6	Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice. 

  
 The Trustee shall not at any time be charged with knowledge of the existence of any facts which would prohibit the making of any payment to or by the
Trustee, unless and until a Responsible Officer of the Trustee shall have received written notice thereof from the Company or from one or more holders of Senior Indebtedness or from any representative thereof or from any trustee therefor; and, prior
to the receipt of any such written notice, the Trustee, subject to the provisions of Sections 7.1 and 7.2, shall be entitled to assume conclusively that no such facts exist. 
  

 -47- 

	SECTION 11.7	Application by Trustee of Monies Deposited with It. 

  
 Except as provided in Section 8.2, any deposit of monies by the Company with the Trustee or any Paying Agent (whether or not in trust) for the payment of
the principal of or interest on any Securities shall be subject to the provisions of Sections 11.1, 11.2, 11.3 and 11.4 except that, if prior to the date on which by the terms of this Indenture any such monies may become payable for any purpose
(including, without limitation, the payment of either the principal of or interest on any Security) the Trustee shall not have received with respect to such monies the notice provided for in Section 11.6, then the Trustee shall have full power and
authority to receive such monies and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such date. This section shall be construed solely for
the benefit of the Trustee and Paying Agent and shall not otherwise affect the rights of holders of such Senior Indebtedness. 
  

	SECTION 11.8	Subordination Rights Not Impaired by Acts or Omissions of Company or Holders of Senior Indebtedness. 

  
 No right of any present or future holders of any Senior Indebtedness to enforce subordination as provided herein shall at
any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder or by any noncompliance by the Company with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or be otherwise charged with. 
  

	SECTION 11.9	Securityholders Authorize Trustee to Effectuate Subordination of Securities. 

  

Each Holder of the Securities by his acceptance thereof authorizes and expressly directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this Article 11 and appoints the Trustee his attorney-in-fact for such purpose, including, in the event of any dissolution, winding up, liquidation or reorganization of the Company
(whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of creditors or otherwise) tending towards liquidation of the business and assets of the Company, the immediate filing of a claim for the unpaid
balance of its or his Securities in the form required in said proceedings and cause said claim to be approved. If the Trustee does not file a proper claim or proof of debt in the form required in such proceeding prior to 30 days before the
expiration of the time to file such claim or claims, then the holders of Senior Indebtedness are hereby authorized to have the right to file and are hereby authorized to file an appropriate claim for and on behalf of the Holders of said Securities.

  

 -48- 

 With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only
such of its covenants and obligations as are specifically set forth in this Article 11, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Section 7.1, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall mistakenly pay over or deliver to
Holders, the Company or any other Person, monies or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article 11 or otherwise. 
  

	SECTION 11.10	Right of Trustee to Hold Senior Indebtedness; Compensation Not Prejudiced. 

  
 The Trustee shall be entitled to all of the rights set forth in this Article 11 in respect of any Senior Indebtedness at any time held by it to the same
extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder. Nothing in this Article 11 shall apply to claims of or payments to the Trustee pursuant
to Section 7.7. 
  

	SECTION 11.11	Article 11 Not to Prevent Events of Default. 

  
 The failure to make a payment on account of principal or interest by reason of any provision in this Article 11 shall not be construed as preventing the
occurrence of an Event of Default under Section 6.1. 
  
 ARTICLE 12

  
 MISCELLANEOUS 
  

	SECTION 12.1	Trust Indenture Act Controls. 

  
 If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA,
the required provision shall control. 
  

	SECTION 12.2	Notices. 

  
 Any notice or communication shall be sufficiently given if in writing and delivered in person or mailed by registered or certified mail, return receipt requested addressed as follows: 
  
 if to the Company: 
  
 GREENERY REHABILITATION GROUP, INC. 
 400 Centre Street 
 Newton, Massachusetts 02158 
 Attention: Chief Financial Officer 
  

 -49- 

 if to the Trustee: 
  
 THE CONNECTICUT NATIONAL BANK 
 777 Main Street 
 Hartford, Connecticut 06115 

			
	 Attention:
	  	Jay T. Bauer, Corporate
	 	  	Trust Administration

  
 The Company or the
Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication mailed to a Securityholder shall be sufficiently given to him if mailed to him by first-class mail at his address as it
appears on the register kept by the Registrar and shall be so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders.
If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  

	SECTION 12.3	Communication by Holders with Other Holders. 

  
 Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
  

	SECTION 12.4	Certificate and Opinion as to Conditions Precedent. 

  
 Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

  

	 	(1)	an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with; and 

  

	 	(2)	an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 

  

	SECTION 12.5	Statements Required in Certificate or Opinion. 

  
 Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 
  

	 	(1)	a statement that the person making such certificate or opinion has read such covenant or condition; 

  

 -50- 

	 	(2)	a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

  

	 	(3)	a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such
covenant or condition has been complied with; and 

  

	 	(4)	a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 

  

	SECTION 12.6	When Treasury Securities Disregarded. 

  
 In determining whether Holders of the required principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the
Company or by any Affiliate of the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee knows are so
owned shall be so disregarded. Securities so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s rights so to act with respect to the Securities and if
the pledgee is not the Company or an Affiliate of the Company. Also, subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination. 
  

	SECTION 12.7	Rules by Trustee and Agents. 

  
 The Trustee may make reasonable rules for the administration of this Indenture. Such rules may cover matters relating to action by or a meeting of
Securityholders. The Registrar, Paying Agent or Conversion Agent may make reasonable rules for its functions. 
  

	SECTION 12.8	Legal Holidays. 

  
 A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions in The Commonwealth of Massachusetts or the State of
Connecticut are not required to be open. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

  

 -51- 

	SECTION 12.9	Governing Law. 

  
 THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS SHALL GOVERN THIS INDENTURE AND THE SECURITIES. 
  

	SECTION 12.10	No Adverse Interpretation of Other Agreements. 

  
 This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture. 
  

	SECTION 12.11	No Recourse Against Others. 

  
 All liability described in paragraph 18 of the Securities of any director, officer, employee or shareholder, as such, of the Company is waived and
released. 
  

	SECTION 12.12	Successors. 

  
 All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 
  

	SECTION 12.13	Duplicate Originals. 

  
 The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

  

	SECTION 12.14	Severability. 

  
 In case any one or more of the provisions contained in this Indenture or in the Securities shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities. 
  

 -52- 

  
 SIGNATURES 
  

									
	 Dated as of April 1, 1990
	 	 	 	 GREENERY REHABILITATION GROUP, INC.

					
	 	 	 	 	 	 	By: 	 	 /s/ Illegible

	 	 	 	 	 	 	 	 	 Chairman of the Board

			
	 [Seal]
	 	 	 	 
			
	 Attest:
	 	 	 	 
				
	 /s/ Illegible
	 	 	 	 	 	 
	 Secretary
	 	 	 	 	 	 
			
	 Dated as of April 1, 1990
	 	 	 	 THE CONNECTICUT NATIONAL BANK,
as Trustee

					
	 	 	 	 	 	 	By: 	 	 /s/ Jay T Bauer

	 	 	 	 	 	 	 	 	 Jay T Bauer

	 	 	 	 	 	 	 	 	 Corporate Trust Officer

	 [Seal]
	 	 	 	 	 	 

  

 -53- 

  
 EXHIBIT A 
  
 [FACE OF SECURITY] 
  
 No. 
  

GREENERY REHABILITATION GROUP, INC. 
  
 8-3/4% Convertible Senior Subordinated Note Due 2015 
  

					
	Interest	  	Payment Dates:	    	April 1 and October 1
	 	  	Record Dates:	    	March 15 and September 15

  
 Greenery Rehabilitation Group, Inc., a
Delaware corporation, promises to pay to _____________________________________ or registered assigns, the principal amount of _______________________________________ Dollars on April 1, 2015 
  
 Additional provisions of this Security are set forth on the other side of
this Security. 
  

									
	 	 	 	 	 	 	 Dated:

			
	 	 	 	 	 GREENERY REHABILITATION GROUP, INC.

	THE CONNECTICUT NATIONAL BANK, as Trustee, certifies that this is one of the Securities referred to in the within-mentioned Indenture.	 	 	 	 	 	 
					
	 	 	 	 	 	 	By 	 	 
	 	 	 	 	 	 	 Chairman of the Board

					
	By: 	 	 	 	 	 	By 	 	 
	 	 	 Authorized Officer
	 	 	 	 	 	 Treasurer

					
	 	 	 	 	 	 	 	 	 (SEAL)

  

  
 [REVERSE OF SECURITY]

  
 GREENERY REHABILITATION GROUP, INC. 
  
 8-3/4% Convertible Senior Subordinated Note Due 2015 
  
 (1) Interest. 
  
 GREENERY REHABILITATION GROUP, INC. (“Company”), a Delaware
corporation, promises to pay interest on the principal amount of this Security at the rate per annum shown above. The Company will pay interest semiannually on April 1 and October 1 of each year, commencing on October 1, 1990. Interest on the
Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of initial issuance. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 (2) Method of Payment. 
  
 Subject to the terms and conditions of the Indenture, the Company will pay
interest on the Securities (except defaulted interest) to the persons who are registered Holders of Securities at the close of business on the fifteenth day of the month preceding the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments in respect of the Securities. The Company will pay principal, premium, if any, and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts.
However, the Company may make such payments by check payable in such money. 
  
 (3) Paying Agent, Registrar, Conversion Agent. 
  
 Initially, The Connecticut National Bank (“Trustee”) will act as Paying Agent, Registrar and Conversion Agent. The Company may change any Paying Agent, Registrar, Conversion Agent or co-Registrar
without notice. The Company or any of its Subsidiaries may act as Paying Agent, Registrar, Conversion Agent or co-Registrar. 
  
 (4) Indenture. 
  
 The Company issued the Securities under an Indenture dated as April l, 1990 (“Indenture”) between the Company and the Trustee. The terms
of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of the Indenture (“Act”).
The Securities are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of them. In case of any conflict between the Indenture and the Securities, the Indenture shall control. The Securities
are general unsecured obligations 

  

 
of the Company. Securities in an unlimited aggregate principal amount may be issued under the Indenture. 
  
 (5) Optional Redemption. 
  
 The Securities are subject to redemption, as a whole or from time to time in
part (otherwise than through the operation of the sinking fund as contained in paragraph 6), at any time after April 1, 1993 (subject to the provisions of the Indenture), at the option of the Company, on not less than 30 nor more than 60 days’
prior notice given as provided in the Indenture, at the following redemption prices (expressed in percentages of principal amount), 
  

				
	 If redeemed during the 12-month
 period
commencing April 1

	  	Percentage

	 
	 1993
	  	106.125	%
	 1994
	  	105.25  	 
	 1995
	  	104.375	 
	 1996
	  	103.50  	 
	1997	  	102.625	%
	1998	  	101.75  	 
	1999	  	100.875	 

  
 and thereafter at 100% of the
principal amount, in each case together with accrued interest to the redemption date. 
  
 (6) Sinking Fund. 
  
 The Company will redeem five percent (5%) of the principal amount of the Securities issued as provided in paragraph 4 of this Security on April 1, 2000
and on each April 1 thereafter through April 1, 2014, at a redemption price of 100% of principal amount, plus accrued interest to the redemption date, by paying such amount to the Trustee, as a sinking fund payment, on or before each such April 1.
The Company may reduce the principal amount of Securities to be redeemed pursuant to this paragraph 6 by subtracting 100% of the principal amount (excluding premium) of any Securities that Securityholders have converted, or that the Company has
delivered to the Trustee for cancellation or redeemed other than pursuant to this paragraph 6. The Company may so subtract the same Security only once. 
  
 (7) Notice of Redemption. 
  
 Notice of redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at
the Holder’s registered address. If money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent prior to or on the Redemption Date, on and after
such date interest ceases to accrue on such Securities or portions thereof. Securities in denominations larger than $1,000 of principal amount may be redeemed in part but only in integral multiples of $1,000 of principal amount. 
  

 -2- 

 (8) Purchase By the Company at the Option of the Holder. 
  
 At the option of the Holder and subject to the terms and conditions of the
Indenture, the Company shall become obligated to purchase the Securities held by such Holder 35 Business Days after the occurrence of a Risk Event of the Company occurring on or prior to April 1, 1995 for a Risk Event Purchase Price equal to the
principal amount plus accrued interest to the Risk Event Purchase Date, which Risk Event Purchase Price shall be paid in cash. 
  
 (9) Conversion. 
  
 Subject to the next two succeeding sentences, a Holder of a Security may convert it into shares of Common Stock of the Company at any time before the
close of business on April 1, 2015. If the Security is called for redemption, the Holder may convert it at any time before the close of business on the Redemption Date. A Security in respect of which a Holder has delivered a notice of exercise of
the option to require the Company to purchase such Security may be converted only if the notice of exercise is withdrawn in accordance with the terms of the Indenture. 
  
 The initial Conversion Price is $13.50 per share of Common Stock, subject to adjustment in certain events described in the
Indenture. To determine the number of shares issuable upon conversion of a Security, divide the principal amount converted by the Conversion Price in effect on the Conversion Date. On conversion no adjustment for accrued interest or dividends will
be made. The Company will deliver cash or a check in lieu of any fractional shares of Common Stock. 
  
 To convert a Security a Holder must (1) complete and manually sign the conversion notice below (or complete and manually sign a facsimile of such notice)
and deliver such notice to the Conversion Agent or, if applicable, complete and deliver to The Depository Trust Company (“DTC”, which term includes any successor thereto) the appropriate instruction form for conversion pursuant to
DTC’s book entry conversion program, (2) surrender the Security to a Conversion Agent by physical or (in the case of conversion pursuant to DTC’s book entry conversion program) book entry delivery, (3) furnish appropriate endorsements and
transfer documents if required by the Conversion Agent, the Company or the Trustee and (4) pay any transfer or similar tax, if required. Book entry delivery of a Security to a Conversion Agent may be made by any financial institution that is a
participant in DTC. If a Holder surrenders a Security for conversion during the period from the close of business on the fifteenth business day of the month preceding an interest payment date to the close of business on such interest payment date,
the Security must be accompanied by payment of an amount equal to the interest payable on such interest payment date on the principal amount of the Security then 

  

 -3- 

 
being converted (unless called for redemption in whole or in part on a redemption date during such period). 
  
 A Holder may convert a portion of a Security if the principal amount of such
portion is $1,000 or an integral multiple of $1,000. No payment or adjustment will be made for dividends on the Common Stock except as provided in the Indenture. 
  
 The Conversion Price will be adjusted for dividends or distributions on Common Stock payable in Common Stock, or other
capital stock, unless excluded in the Indenture; subdivisions, combinations or certain reclassifications of Common Stock; distributions to all holders of Common Stock of certain rights to purchase Common Stock for a period of 60 days at less than
the Quoted Price at the Time of Determination; and distributions to such holders of assets, debt securities or certain rights to purchase securities of the Company. However, no adjustment need be made if Securityholders may participate in the
transaction or in certain other cases. The Company from time to time may voluntarily decrease the Conversion Price. No adjustment of the Conversion Price need be made until cumulative adjustments amount to at least $0.25, but any adjustment that
would otherwise be required to be made shall be carried forward and taken into account in any subsequent adjustment. 
  
 If the Company is a party to a consolidation, merger or binding share exchange or a transfer of all or substantially all of its assets, or upon certain
distributions described in the Indenture, the right to convert a Security into Common Stock may be changed into a right to convert it into securities, cash or other assets of the Company or another person. 
  
 (10) Subordination. 
  
 The Securities are subordinated in right of payment to Senior Indebtedness,
which is any Debt of the Company whether outstanding on the date of the Indenture or thereafter created, incurred or assumed, except the Company’s 6 1/2% Convertible Subordinated Debentures (the “Debentures”) and Debt which by its terms is expressly subordinated in right of payment to the Securities or the Debentures or is on a parity
in right of payment with the Securities. Debt is the principal of (and premium, if any) and interest on and fees and other amounts payable with respect to: (1) any indebtedness or obligation, contingent or otherwise, of the Company (i) for money
borrowed; or (ii) evidenced by a note, debenture, similar instrument or agreement (including, without limitation, a purchase money obligation) given in connection with the acquisition or improvement of any business, property or assets of any kind,
including, without limitation, securities, but excluding trade debt incurred in the ordinary course of business; or (iii) as lessee under any lease of real property and any capitalized lease, in either case, entered into after the date of the
Indenture and which by its terms is expressly made senior to the Notes; (2) any indebtedness or obligations of others of the 

  

 -4- 

 
kinds described in the preceding clause (1) which the Company has guaranteed or for which it is otherwise liable; and (3) any amendment, renewal, extension,
modification or refunding of any such debt described in (1) and (2) above. To the extent provided in the Indenture, Senior Indebtedness must be paid before the Securities may be paid. Each Securityholder by accepting a Security agrees to the
subordination and authorizes the Trustee to give it effect. 
  
 (11) Denominations, Transfers, Exchange. 
  
 The Securities are issuable only in registered form without coupons in denominations of $1,000 principal amount and integral multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not transfer or exchange
any Security selected for redemption, or transfer or exchange any Security (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities in respect of which a Risk Event Purchase Notice
has been given and not withdrawn (except, in the case of a Security to be purchased in part, the portion of the Security not to be purchased), or any Securities for a period of 15 days before a selection of Securities to be redeemed. 
  
 (12) Persons Deemed Owners. 
  
 The registered Holder of a Security may be treated as the owner of it for
all purposes. 
  
 (13) Unclaimed Money.

  
 If money for the payment of principal, premium, if any, or
interest remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company at its request. After that, Holders entitled to the money must look to the Company for payment unless an abandoned property law designates
another Person. 
  
 (14) Amendment, Supplement,
Waiver. 
  
 Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the outstanding Securities and any past default or compliance with any provision may be waived with the consent of the Holders of
a majority in principal amount of the outstanding Securities. Without the consent of any Securityholder, the Company may amend or supplement the Indenture or the Securities to cure any ambiguity, defect or inconsistency or to provide for
uncertificated Securities in addition to or in place of certificated Securities or to make any change that does not 

  

 -5- 

 
materially adversely affect the rights of any Securityholder. Without the consent of Holders, the Trustee may waive compliance by the Company with any
provision of the Indenture or the Securities if the waiver does not adversely affect the rights of any Holder. 
  
 (15) Successor. 
  
 Except as provided in the Indenture, when a successor partnership, trust or corporation or other Person assumes all the obligations of its predecessor
under the Securities and the Indenture, the predecessor will be released from those obligations. 
  
 (16) Defaults and Remedies. 
  
 Under the Indenture, Events of Default include (i) default for 30 days in payment of interest on the Securities or default in payment of principal on the
Securities or in the making of any sinking fund payment required by paragraph 6; (ii) failure by the Company to comply with other agreements in the Indenture or the Securities, subject to notice and lapse of time; and (iii) certain events of
bankruptcy or insolvency. If an Event of Default occurs and is continuing, the Trustee, or the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding, may declare all the Securities to be due and payable
immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities becoming due and payable immediately upon the occurrence of such Events of Default. 
  
 Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities
at the time outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of amounts specified in clause (i) above) if it
determines that withholding notice is in their interests. 
  
 (17) Trustee Dealings with Company. 
  
 The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its affiliates, and may otherwise deal with the Company or its affiliates, as if it
were not Trustee. 
  
 (18) No Recourse Against
Others. 
  
 A director, officer, employee or shareholder, as
such, of the Company shall not have any liability for any obligations of the 

  

 -6- 

 
Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation. Each
Securityholder by accepting a Security waives and releases all such liability on the part of any and all directors, officers, employees, or shareholders, as such, of the Company. The waiver and release are part of the consideration for the issue of
Securities. 
  
 (19) Authentication. 

 
 This Security shall not be valid until the Trustee signs the certificate
of authentication on the other side of this Security. 
  
 (20) Abbreviations. 
  
 Customary abbreviations may be
used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (=
Uniform Gifts to Minors Act). 
  
 (21) Inspection
of Indenture and Requests for Copies. 
  
 Holders may inspect the
Indenture at the principal executive office of the Company. 
  
 The Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture. Requests may be made to: Treasurer, Greenery Rehabilitation Group, Inc., 400 Centre Street, Newton, Massachusetts 02158.

  
 (22) CUSIP Numbers. 
  
 Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedure, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the holders of the Securities. No representation is made as to the accuracy of such numbers as printed on the Securities and
reliance may be placed only on the other identification numbers printed hereon. 
  

 -7- 

  

					
	 ASSIGNMENT FORM

	  	 	 	 CONVERSION NOTICE

			
	 If you the holder want to assign this Security, fill in the form below and have your signature guaranteed:
  
 For value received, I or we assign and transfer this Security to
	  	 	 	 If you the holder want to convert this Security into Common Stock of the Company, check the box  ̈
  
 If you want
to convert only part of this Security, state the amount:

	 	  	 	 	$                        ,000
	(Insert assignee’s social security or tax ID number)	  	 	 	 
	 	  	 	 	 
	 	  	 	 	If you want the stock certificate made out in another person’s name, fill in the form below and have your signature guaranteed:
	 	  	 	 
	 	  	 	 
	 	  	 	 
			
	 and irrevocably appoint
	  	 	 	 
	 	  	 	 	(Insert another person’s social security or tax ID number)
	 	  	 	 	 
	agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.	  	 	 	 
	  	 	 	 
	  	 	 	 
	 	  	 	 	 
	 	  	 	 	(Print or type other person’s name, address and zip code)
	 	  	 	 	 
	Date: _______________________________________________	  	 	 	Your signature: ______________________________________
	 	  	 	 	(Sign exactly as your name appears on the other side of Security)
	 	  	 	 	 
	 Signature Guarantee:
	  	 	 	 

  

 -8-Lease Agreement Between HealthSouth Corp and First Security Bank

 EXHIBIT 10.4.1 
  
 LEASE AGREEMENT 
  
 Dated as of October 31, 2000 
  
 between 
  
 FIRST SECURITY BANK, NATIONAL ASSOCIATION, 
 not individually, 
 but solely as Owner Trustee 
 under the
HEALTHSOUTH Corporation Trust 2000-1, 
 as Lessor 
  
 and 
  
 HEALTHSOUTH Corporation, as Lessee 
  
 This Lease Agreement (the “Lease Agreement”) is subject to a security interest in favor of UBS AG, Stamford Branch, as Administrative Agent (the “Agent”) under the Security Agreement dated as of the date
hereof among First Security Bank, National Association, not individually except as expressly stated therein, but solely as Owner Trustee under the HEALTHSOUTH Corporation Trust 2000-1, the Lenders and the Agent, as amended, modified, supplemented,
restated or replaced from time to time. This Lease Agreement has been executed in several counterparts. To the extent, if any, that this Lease Agreement constitutes chattel paper (as such term is defined in the Uniform Commercial Code as in effect
in any applicable jurisdiction), no security interest in this Lease Agreement may be created through the transfer or possession of any counterpart other than the original counterpart containing the receipt therefor executed by the Agent on the
signature page hereof. 
  

 Table of Contents 
  

					
	 	  	 	  	Page

	 ARTICLE I
	  	1
			
	 1.1.
	  	 Definitions
	  	1
		
	 ARTICLE II
	  	1
			
	 2.1.
	  	 Properties
	  	1
	 2.2.
	  	 Lease Term
	  	2
	 2.3.
	  	 Title
	  	2
		
	 ARTICLE III
	  	2
			
	 3.1.
	  	 Rent
	  	2
	 3.2.
	  	 Payment of Basic Rent
	  	2
	 3.3.
	  	 Supplemental Rent
	  	2
	 3.4.
	  	 Performance on a Non-Business Day
	  	3
	 3.5.
	  	 Rent Payment Provisions
	  	3
		
	 ARTICLE IV
	  	3
			
	 4.1.
	  	 Utility Charges; Taxes
	  	3
		
	 ARTICLE V
	  	4
			
	 5.1.
	  	 Quiet Enjoyment
	  	4
		
	 ARTICLE VI
	  	4
			
	 6.1.
	  	 Net Lease
	  	4
	 6.2.
	  	 No Termination or Abatement
	  	5
		
	 ARTICLE VII
	  	5
			
	 7.1.
	  	 Ownership of the Properties
	  	5
		
	 ARTICLE VIII
	  	6
			
	 8.1.
	  	 Condition of the Properties
	  	6
	 8.2.
	  	 Possession and Use of the Properties
	  	7
		
	 ARTICLE IX
	  	7
			
	 9.1.
	  	 Compliance with Legal Requirements and Insurance Requirements
	  	7

  

 i 

					
	 	  	 	  	Page

	 ARTICLE X
	  	8
			
	 10.1.
	  	 Maintenance and Repair; Return
	  	8
	 10.2.
	  	 Environmental Inspection
	  	9
		
	 ARTICLE XI
	  	9
			
	 11.1.
	  	 Modifications
	  	9
		
	 ARTICLE XII
	  	10
			
	 12.1.
	  	 Warranty of Title
	  	10
		
	 ARTICLE XIII
	  	11
			
	 13.1.
	  	 Permitted Contests Other Than in Respect of Indemnities
	  	11
		
	 ARTICLE XIV
	  	11
			
	 14.1.
	  	 Public Liability and Workers’ Compensation Insurance
	  	11
	 14.2.
	  	 Hazard and Other Insurance
	  	12
	 14.3.
	  	 Coverage
	  	12
		
	 ARTICLE XV
	  	13
			
	 15.1.
	  	 Casualty and Condemnation
	  	13
	 15.2.
	  	 Environmental Matters
	  	15
	 15.3.
	  	 Notice of Environmental Matters
	  	15
		
	 ARTICLE XVI
	  	16
			
	 16.1.
	  	 Termination Upon Certain Events
	  	16
	 16.2.
	  	 Procedures
	  	16
		
	 ARTICLE XVII
	  	16
			
	 17.1.
	  	 Lease Events of Default
	  	16
	 17.2.
	  	 Surrender of Possession
	  	19
	 17.3.
	  	 Reletting
	  	19
	 17.4.
	  	 Damages
	  	19
	 17.5.
	  	 Final Liquidated Damages
	  	20
	 17.6.
	  	 Waiver of Certain Rights
	  	21
	 17.7.
	  	 Assignment of Rights Under Contract
	  	21
	 17.8.
	  	 Environmental Costs
	  	21
	 17.9.
	  	 Remedies Cumulative
	  	22
	 17.10.
	  	 Notice of Default or Event of Default
	  	22

  

 ii 

					
	 	  	 	  	Page

	 ARTICLE XVIII
	  	22
			
	 18.1.
	  	 Lessor’s Right to Cure Lessee’s Lease Defaults
	  	22
		
	 ARTICLE XIX
	  	22
			
	 19.1.
	  	 Provisions Relating to Lessee’s Exercise of its Purchase Option
	  	22
	 19.2.
	  	 No Termination With Respect to Less than all of the Properties
	  	22
		
	 ARTICLE XX
	  	23
			
	 20.1.
	  	 Early Purchase Option
	  	23
	 20.2.
	  	 Purchase or Sale Option
	  	23
		
	 ARTICLE XXI
	  	24
			
	 21.1.
	  	 Intentionally Deleted
	  	24
		
	 ARTICLE XXII
	  	24
			
	 22.1.
	  	 Sale Procedure
	  	24
	 22.2.
	  	 Application of Proceeds of Sale
	  	26
	 22.3.
	  	 Indemnity for Excessive Wear
	  	26
	 22.4.
	  	 Appraisal Procedure
	  	26
	 22.5.
	  	 Certain Obligations Continue
	  	27
		
	 ARTICLE XXIII
	  	27
			
	 23.1.
	  	 Holding Over
	  	27
		
	 ARTICLE XXIV
	  	28
			
	 24.1.
	  	 Risk of Loss
	  	28
		
	 ARTICLE XXV
	  	28
			
	 25.1.
	  	 Assignment
	  	28
	 25.2.
	  	 Subleases
	  	28
		
	 ARTICLE XXVI
	  	29
			
	 26.1.
	  	 No Waiver
	  	29
		
	 ARTICLE XXVII
	  	29
			
	 27.1.
	  	 Acceptance of Surrender
	  	29
	 27.2.
	  	 No Merger of Title
	  	29

  

 iii 

					
	 	  	 	  	Page

	 ARTICLE XXVIII
	  	30
			
	 28.1.
	  	 Incorporation of Covenants
	  	30
	 28.2.
	  	 Additional Reporting Requirements
	  	31
		
	 ARTICLE XXIX
	  	31
			
	 29.1.
	  	 Notices
	  	31
		
	 ARTICLE XXX
	  	32
			
	 30.1.
	  	 Miscellaneous
	  	32
	 30.2.
	  	 Amendments and Modifications
	  	32
	 30.3.
	  	 Successors and Assigns
	  	33
	 30.4.
	  	 Headings and Table of Contents
	  	33
	 30.5.
	  	 Counterparts
	  	33
	 30.6.
	  	 GOVERNING LAW
	  	33
	 30.7.
	  	 Calculation of Rent
	  	33
	 30.8.
	  	 Memorandum of Lease
	  	33
	 30.9.
	  	 Allocations between the Lenders and the Holders
	  	33
	 30.10.
	  	 Limitations on Recourse
	  	34
	 30.11.
	  	 WAIVERS OF JURY TRIAL
	  	34
	 30.12.
	  	 Existing Agreements
	  	34
	 30.13.
	  	 Power of Sale
	  	34
	 30.14.
	  	 Exercise of Lessor Right
	  	34

  

 iv 

 LEASE AGREEMENT 
  

THIS LEASE AGREEMENT (as amended, supplemented or modified from time to time, this “Lease”), dated as of October 31,2000, is between FIRST SECURITY BANK,
NATIONAL ASSOCIATION, a national banking association, having its principal office at 79 South Main Street, Salt Lake City, Utah 84111, not individually, but solely as Owner Trustee under the HEALTHSOUTH Corporation Trust 2000-1, as Lessor (the
“Lessor”), and HEALTHSOUTH Corporation, a Delaware corporation, having its principal place of business at One HealthSouth Parkway, Birmingham, Alabama 35243, as Lessee (the “Lessee”). 
  
 W I T N E S S E
T H: 
  
 WHEREAS, subject to the terms and
conditions of the Participation Agreement (defined below), Lessor owns or leases under ground leases certain parcels of real property, the Improvements on such real property and certain Equipment; and 
  
 WHEREAS, the Basic Term shall commence with respect to the Properties as of
the date hereof; and 
  
 WHEREAS, the Lessor desires to lease to
the Lessee, and the Lessee desires to lease from the Lessor, the Properties; 
  
 NOW, THEREFORE, in consideration of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows: 
  
 ARTICLE I 
  

	 	1.1.	Definitions. 

  
 Capitalized terms used but not otherwise defined in this Lease have the respective meanings specified in Appendix A to the Participation Agreement of even
date herewith (as such may be amended, modified, supplemented, restated and/or replaced from time to time in accordance with the terms thereof, the “Participation Agreement”) among the Lessee, First Security Bank, National Association, not
individually, except as expressly stated therein, but as Owner Trustee under the HEALTHSOUTH Corporation Trust 2000-1, the Holders party thereto, the Lenders party thereto and the Agent. 
  
 ARTICLE II 
  

	 	2.1.	Properties. 

  
 Lessor hereby leases to Lessee and Lessee hereby leases from Lessor, each Property described in Exhibit A and Schedule I-A, Schedule I-B and Schedule I-C
attached thereto. 
  

	 	2.2.	Lease Term. 

  
 The term of this Lease with respect to each Property (the “Basic Term”) shall continue from the date hereof (the “Basic Term Commencement
Date” or the “Term Commencement Date”) and shall end on June 22, 2003 (the “Basic Term Expiration Date”), unless the Term is earlier terminated in accordance with the provisions of this Lease. 
  

	 	2.3.	Title. 

  
 Each Property is leased to Lessee without any representation or warranty, express or implied, by Lessor and subject to the rights of parties in possession
(if any), the existing state of title (including, without limitation, the Permitted Exceptions) and all applicable Legal Requirements. Lessee shall in no event have any recourse against Lessor for any defect in title to any Property other than for
Lessor Liens. 
  
 ARTICLE III 
  

	 	3.1.	Rent. 

  

	 	(a)	Lessee shall pay Basic Rent on each Payment Date, and on any date on which this Lease shall terminate. 

  

	 	(b)	Basic Rent shall be due and payable in lawful money of the United States and shall be paid in immediately available funds on the due date therefor (or within the applicable grace
period) to such account or accounts at such bank or banks as Lessor shall from time to time direct. 

  

	 	(c)	Lessee’s inability or failure to take possession of all or any portion of any Property on the Closing Date, whether or not attributable to any act or omission of the Lessor,
the Lessee, or any other Person, or for any other reason whatsoever, shall not delay or otherwise affect Lessee’s obligation to pay Rent for such Property in accordance with the terms of this Lease. 

  

	 	3.2.	Payment of Basic Rent. 

  
 Basic Rent shall be paid absolutely net to Lessor or its designee, so that this Lease shall yield to Lessor the full amount of Basic Rent, without setoff,
deduction or reduction. 
  

	 	3.3.	Supplemental Rent. 

  
 Lessee shall pay to Lessor or its designee or to the Person entitled thereto any and all Supplemental Rent promptly as the same shall become due and
payable, and if Lessee fails to pay any Supplemental Rent, Lessor shall have all rights, powers and remedies provided for herein or by law or equity or otherwise in the case of nonpayment of Basic Rent. Without limiting the generality of the
definition of “Supplemental Rent,” Lessee shall pay to Lessor as Supplemental Rent, among other things, on demand, to the extent permitted by applicable Legal Requirements, (a) any and all unpaid fees, charges, payments and other
obligations (except the obligations of Lessor to pay the principal amount of the Loans and the Holder Amount) due and 

  

 2 

 
owing by Lessor under the Credit Agreement, the Trust Agreement or any other Operative Agreement (including specifically without limitation any amounts owing
to the Lenders under Section 2.11 or Section 2.12 of the Credit Agreement and any amounts owing to the Holders under Section 3.9 or Section 3.10 of the Trust Agreement) and (b) interest at the applicable Base Rate on any installment of Basic Rent
not paid when due (subject to the applicable grace period) for the period for which the same shall be overdue and on any payment of Supplemental Rent not paid when due or demanded by the appropriate Person for the period from the due date or the
date of any such demand, as the case may be, until the same shall be paid. The expiration or other termination of Lessee’s obligations to pay Basic Rent hereunder shall not limit or modify the obligations of Lessee with respect to Supplemental
Rent. Unless expressly provided otherwise in this Lease, in the event of any failure on the part of Lessee to pay and discharge any Supplemental Rent as and when due, Lessee shall also promptly pay and discharge any fine, penalty, interest or cost
which may be assessed or added (a) by any party to an Operative Agreement pursuant to the terms of such agreement or (b) by any Person that is not a party to an Operative Agreement, in each case for nonpayment or late payment of such Supplemental
Rent, all of which shall also constitute Supplemental Rent. 
  

	 	3.4.	Performance on a Non-Business Day. 

  
 If any Basic Rent is required hereunder on a day that is not a Business Day, then such Basic Rent shall be due on the corresponding Scheduled Interest
Payment Date. If any Supplemental Rent is required hereunder on a day that is not a Business Day, then such Supplemental Rent shall be due on the next succeeding Business Day. 
  

	 	3.5.	Rent Payment Provisions. 

  
 Lessee shall make payment of all Basic Rent and Supplemental Rent when due regardless of whether any of the Operative Agreements pursuant to which same is
calculated and is owing shall have been rejected, avoided or disavowed in any bankruptcy or insolvency proceeding involving any of the parties to any of the Operative Agreements. Such provisions of such Operative Agreements and their related
definitions are incorporated herein by reference and shall survive any termination, amendment or rejection of any such Operative Agreements. 
  
 ARTICLE IV 
  

	 	4.1.	Utility Charges; Taxes. 

  
 Lessee shall pay or cause to be paid all charges for electricity, power, gas, oil, water, telephone, sanitary sewer service and all other rents and
utilities used in or on any Property and related real property during the Term. Lessee shall be entitled to receive any credit or refund with respect to any utility charge paid by Lessee. Unless a Lease Default or Lease Event of Default shall have
occurred and be continuing, the amount of any credit or refund received by Lessor on account of any utility charges paid by Lessee, net of the costs and expenses incurred by Lessor in obtaining such credit or refund, shall be promptly paid over to
Lessee. In addition, Lessee shall pay or cause to be paid all taxes or tax assessments against any Property. All charges for utilities and all taxes or tax assessments imposed with respect to any Property for a billing period (or in the cases of tax
assessments, a tax period) during which this 

  

 3 

 
Lease expires or terminates shall be adjusted and prorated on a daily basis between Lessor and Lessee, and each party shall pay or reimburse the other for
such party’s pro rata share thereof. 
  
 ARTICLE V 

 

	 	5.1.	Quiet Enjoyment. 

  
 Subject to the rights of Lessor contained in Sections 17.2 and 17.3 and the other terms of this Lease and the other Operative Agreements and so long as no
Lease Event of Default shall have occurred and be continuing, Lessee shall peaceably and quietly have, hold and enjoy each Property for the applicable Term, free of any claim or other action by Lessor or anyone rightfully claiming by, through or
under Lessor (other than Lessee) with respect to any matters arising from and after the Basic Term Commencement Date. 
  
 ARTICLE VI 
  

	 	6.1.	Net Lease. 

  
 This Lease shall constitute a net lease. Any present or future law to the contrary notwithstanding, this Lease shall not terminate, nor shall Lessee be
entitled to any abatement, suspension, deferment, reduction, setoff, counterclaim, or defense with respect to the Rent, nor shall the obligations of Lessee hereunder be affected (except as expressly herein permitted and by performance of the
obligations in connection therewith) by reason of (a) any damage to or destruction of any Property or any part thereof; (b) any taking of any Property or any part thereof or interest therein by Condemnation or otherwise; (c) any prohibition,
limitation, restriction or prevention of Lessee’s use, occupancy or enjoyment of any Property or any part thereof, or any interference with such use, occupancy or enjoyment by any Person or for any other reason; (d) any title defect, Lien or
any matter affecting title to any Property; (e) any eviction by paramount title or otherwise; (f) any default by Lessor hereunder; (g) any action for bankruptcy, insolvency, reorganization, liquidation, dissolution or other proceeding relating to or
affecting the Agent, any Lender, Lessor, Lessee, any Holder or any Governmental Authority; (h) the impossibility or illegality of performance by Lessor, Lessee or both, (i) any action of any Governmental Authority or any other Person; (j)
Lessee’s acquisition of ownership of all or part of any Property; (k) breach of any warranty or representation with respect to any Property or of any Operative Agreement; (1) any defect in the condition, quality or fitness for use of any
Property or any part thereof; or (m) any other cause or circumstance whether similar or dissimilar to the foregoing and whether or not Lessee shall have notice or knowledge of any of the foregoing. The foregoing clause (j) shall not prevent the
termination of the Lease in accordance with the terms hereof if the Lessee purchases all of the Properties pursuant to Section 20.1 or 20.2. The parties intend that the obligations of Lessee hereunder shall be covenants, agreements and obligations
that are separate and independent from any obligations of Lessor hereunder and shall continue unaffected unless such covenants, agreements and obligations shall have been modified or terminated in accordance with an express provision of this Lease.
Lessor and Lessee acknowledge and agree that the provisions of this Section 6.1 have been specifically reviewed and agreed to, and that this Lease has been negotiated by the parties. 
  

 4 

	 	6.2.	No Termination or Abatement. 

  
 Lessee 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 action for bankruptcy, insolvency, reorganization, liquidation, dissolution, or other proceeding affecting Lessor or any Governmental Authority, or any action with respect to this Lease or any Operative Agreement which may be
taken by any trustee, receiver or liquidator of Lessor or any Governmental Authority or by any court with respect to Lessor, Lessee, any Holder, or any Governmental Authority. Lessee hereby waives all right (a) to terminate or surrender this Lease
(except as permitted under the terms of the Operative Agreements) or (b) to avail itself of any abatement, suspension, deferment, reduction, setoff, counterclaim or defense with respect to any Rent. Lessee shall remain obligated under this Lease in
accordance with its terms and Lessee hereby waives any and all rights now or hereafter conferred by statute or otherwise to modify or to avoid strict compliance with its obligations under this Lease. Notwithstanding any such statute or otherwise,
Lessee shall be bound by all of the terms and conditions contained in this Lease. 
  
 ARTICLE VII 
  

	 	7.1.	Ownership of the Properties. 

  

	 	(a)	Lessor and Lessee intend that (i) for financial accounting purposes with respect to Lessee (A) this Lease will be treated as an “operating lease” pursuant to Statement of
Financial Accounting Standards No. 13, as amended, (B) Lessor will be treated as the owner and lessor of the Properties and (C) Lessee will be treated as the lessee of the Properties, but (ii) for federal and all state and local income tax purposes,
for bankruptcy purposes and all other purposes (A) this Lease will be treated as a financing arrangement and (B) Lessee will be treated as the owner of the Properties and will be entitled to all tax benefits ordinarily available to owners of
property similar to the Properties for such tax purposes, and (C) all payments of Basic Rent shall be deemed to be interest payments. Consistent with the foregoing, Lessee intends to claim depreciation and cost recovery deductions associated with
the Properties, and Lessor agrees not to take any inconsistent position on its income tax returns. Neither Lessor, the Agent, any Lender, any Holder, UBS Warburg LLC, Deutsche Bank Securities, Inc., The Chase Manhattan Bank nor Deutsche Bank AG, New
York Branch makes any representation or warranty with respect to the foregoing matters described in this Section 7.1 and will assume no liability for the Lessee’s accounting treatment of this transaction. 

  

	 	(b)	 For all purposes other than as set forth in Section 7.l(a)(i), Lessor and Lessee intend this Lease to constitute a finance lease and not a true lease. Lessor
and Lessee further intend and agree that, for the purpose of securing Lessee’s obligations hereunder (i) this Lease shall be deemed to be a security agreement and financing statement within the meaning of Article 9 of the Uniform Commercial
Code respecting each of the Properties to the extent such is personal property and an irrevocable grant and conveyance of each Property to the Lessor as security for the Lessee’s obligations hereunder to the extent such is real 

  

 5 

	 	 
property; (ii) the acquisition of title (or to the extent applicable, a leasehold interest) in the Properties referenced in Article II shall be deemed
to be (A) a grant by Lessee to Lessor of a lien on and security interest in all of Lessee’s right, title and interest in and to each Property and all proceeds (including without limitation insurance proceeds) of each Property, whether in the
form of cash, investments, securities or other property, and (B) an assignment by Lessee to Lessor of all rents, profits and income produced by each Property; and (iii) notifications to Persons holding such Property, and acknowledgments, receipts or
confirmations from financial intermediaries, bankers or agents (as applicable) of Lessee shall be deemed to have been given for the purpose of perfecting such security interest under applicable law. Lessor and Lessee shall promptly take such actions
as may be necessary or advisable in either party’s opinion (including without limitation the filing of Uniform Commercial Code Financing Statements or Uniform Commercial Code Fixture Filings) to ensure that the lien and security interest in the
Properties will be deemed to be a perfected lien and security interest of first priority under applicable law and will be maintained as such throughout the Term. 

  
 ARTICLE VIII 
  

	 	8.1.	Condition of the Properties. 

  
 LESSEE ACKNOWLEDGES AND AGREES THAT IT IS LEASING THE PROPERTIES “AS IS” WITHOUT REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR IMPLIED) BY
LESSOR AND IN EACH CASE SUBJECT TO (A) THE EXISTING STATE OF TITLE, (B) THE RIGHTS OF ANY PARTIES IN POSSESSION THEREOF (IF ANY), (C) ANY STATE OF FACTS WHICH AN ACCURATE SURVEY OR PHYSICAL INSPECTION MIGHT SHOW, (D) ALL APPLICABLE LEGAL
REQUIREMENTS AND (E) VIOLATIONS OF LEGAL REQUIREMENTS WHICH MAY EXIST ON THE DATE HEREOF. NEITHER LESSOR NOR THE AGENT NOR ANY LENDER NOR ANY HOLDER HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION, WARRANTY OR COVENANT (EXPRESS OR
IMPLIED) OR SHALL BE DEEMED TO HAVE ANY LIABILITY WHATSOEVER AS TO THE TITLE, VALUE, HABITABILITY, USE, CONDITION, DESIGN, OPERATION, MERCHANTABILITY OR FITNESS FOR USE OF ANY PROPERTY (OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION, WARRANTY OR
COVENANT WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY PROPERTY (OR ANY PART THEREOF), AND NEITHER LESSOR NOR THE AGENT NOR ANY LENDER NOR ANY HOLDER SHALL BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREON OR THE FAILURE OF ANY
PROPERTY, OR ANY PART THEREOF, TO COMPLY WITH ANY LEGAL REQUIREMENT. THE LESSEE HAS BEEN AFFORDED FULL OPPORTUNITY TO INSPECT EACH PROPERTY AND THE IMPROVEMENTS THEREON (IF ANY), IS (INSOFAR AS THE LESSOR, THE AGENT, EACH LENDER AND EACH HOLDER ARE
CONCERNED) SATISFIED WITH THE RESULTS OF ITS INSPECTIONS AND IS ENTERING INTO THIS LEASE SOLELY ON THE BASIS OF THE RESULTS OF ITS OWN INSPECTIONS, AND ALL RISKS INCIDENT TO THE MATTERS DESCRIBED IN THE PRECEDING SENTENCE, AS BETWEEN THE LESSOR, THE

  

 6 

 
AGENT, THE LENDERS AND THE HOLDERS, ON THE ONE HAND, AND THE LESSEE, ON THE OTHER HAND, ARE TO BE BORNE BY LESSEE. 
  

	 	8.2.	Possession and Use of the Properties. 

  

	 	(a)	At all times during the Term, the Properties shall be used by Lessee or any sublessee permitted under Section 25.2 for the provision of rehabilitation and other healthcare
services and related activities in the ordinary course of its business. Lessee shall pay, or cause to be paid, all charges and costs required in connection with the use of the Properties as contemplated by this Lease. Lessee shall not commit or
permit any waste of the Properties or any part thereof. 

  

	 	(b)	Lessee represents and warrants that the address stated in Section 29.1 of this Lease is the chief place of business and chief executive office of Lessee (as such terms are
used in Section 9-103 (or other corresponding section) of the Uniform Commercial Code of any applicable jurisdiction), and Lessee will provide Lessor with prior written notice of any change of location of its chief place of business or chief
executive office. Regarding the Properties, Lessee represents and warrants that Schedules I-A and I-B hereto correctly identify the initial location of the related Equipment and Improvements, and Schedule I-C hereto contains an accurate legal
description for the Land. Lessee has no other places of business where the Equipment or Improvements will be located other than as identified on Schedule I-C. 

  

	 	(c)	Lessee will not attach or incorporate any item of Equipment to or in any other item of equipment or personal property or to or in any real property (except the Land identified in
Schedule I-C) in a manner that could give rise to the assertion of any Lien on such item of Equipment by reason of such attachment or the assertion of a claim that such item of Equipment has become a fixture and is subject to a Lien in favor of a
third party that is prior to the Liens thereon created by the Operative Agreements. 

  

	 	(d)	At all times during the Term, Lessee will comply with all obligations under, and (to the extent no Event of Default has occurred and is continuing and provided that such exercise
will not impair the value of any Property) shall be permitted to exercise all rights and remedies under, all operation and easement agreements and related or similar agreements applicable to each Property. 

  
 ARTICLE IX 
  

	 	9.1.	Compliance with Legal Requirements and Insurance Requirements. 

  
 Subject to the terms of Article XIII relating to permitted contests, Lessee, at its sole cost and expense, shall (i) comply with all material Legal
Requirements (including without limitation all Environmental Laws), and all Insurance Requirements relating to the Properties, including the use, development, construction, operation, maintenance, repair, refurbishment and restoration thereof,
whether or not compliance therewith shall require structural or extraordinary changes in the Improvements or interfere with the use and enjoyment of any Property, and (ii) 

  

 7 

 
procure, maintain and comply with all material licenses, permits, orders, approvals, consents and other authorizations required for the construction, use,
maintenance and operation of any Property and for the use, development, construction, operation, maintenance, repair and restoration of the Improvements. 
  
 ARTICLE X 
  

	 	10.1.	Maintenance and Repair; Return. 

  

	 	(a)	Lessee, at its sole cost and expense, shall maintain each Property in good condition, repair and working order (ordinary wear and tear excepted) and make all necessary repairs
thereto, of every kind and nature whatsoever, whether interior or exterior, ordinary or extraordinary, structural or nonstructural, or foreseen or unforeseen, in each case as required by all Legal Requirements, Insurance Requirements, and
manufacturer’s specifications and standards and on a basis consistent with the operation and maintenance of properties or equipment comparable in type and function to such Property and in compliance with standard industry practice, subject,
however, to the provisions of Article XV with respect to Condemnation and Casualty. 

  

	 	(b)	Lessee shall not move, use or relocate any component of any Property beyond the boundaries of the Land without Lessor’s prior written consent, which consent shall not be
unreasonably withheld or delayed. 

  

	 	(c)	If any material component of any Property becomes worn out, lost, destroyed, damaged beyond repair or otherwise permanently rendered unfit for use, Lessee, at its own expense, will
within a reasonable time replace such component with a replacement component which is free and clear of all Liens (other than Permitted Liens) and has a value, utility and useful life at least equal to the component replaced. All components which
are added to any Property shall immediately become the property of, and title thereto shall vest in, Lessor, and shall be deemed incorporated in such Property and subject to the terms of this Lease as if originally leased hereunder.

  

	 	(d)	Upon reasonable advance notice, Lessor and its agents shall have the right to inspect each Property and the maintenance records with respect thereto at any reasonable time during
normal business hours but shall not materially disrupt the business of Lessee. 

  

	 	(e)	In addition to any Appraisal required by Section 5.3 of the Participation Agreement, Lessee shall cause to be delivered to Lessor (at Lessee’s sole expense) any additional
Appraisals (or reappraisals) as Lessor or the Agent may deem appropriate (i) if an Event of Default has occurred and is continuing, or (ii) if any one of Lessor, the Agent, any Lender or any Holder is required pursuant to any applicable Legal
Requirement to obtain such an Appraisal (or reappraisal). 

  

	 	(f)	 Lessor shall under no circumstances be required to build any improvements on any Property, make any repairs, replacements, alterations or renewals of any 

  

 8 

	 	 
nature or description to such Property, make any expenditure whatsoever in connection with this Lease or maintain any Property in any way. Lessor shall not
be required to maintain, repair or rebuild all or any part of any Property, and Lessee waives the right to (i) require Lessor to maintain, repair, or rebuild all or any part of any Property (unless such repairs are needed to cure damage to a
Property caused by the gross negligence or willful misconduct of the Lessor), or (ii) make repairs at the expense of Lessor pursuant to any Legal Requirement, Insurance Requirement, contract, agreement, covenants, condition or restriction at any
time in effect. 

  

	 	(g)	Lessee shall, upon the expiration or earlier termination of this Lease with respect to the Properties, if Lessee shall not have exercised its Purchase Option with respect to the
Properties, surrender the Properties to Lessor, or the third party purchaser, as the case may be, subject to Lessee’s obligations under this Lease (including without limitation Sections 9.1. l0.l(a)-(f), 10.2. 11.1 12.1, 22.1 and
23.1) and the other Operative Agreements. 

  

	 	10.2.	Environmental Inspection. 

  
 If (a) Lessee has not given notice of the exercise of its Purchase Option on the Expiration Date pursuant to Section 20.2, or (b) Lessee has
given notice, pursuant to Section 20.2 of its election to remarket the Properties pursuant to Section 22.1 then, in either case, not more than 120 days nor less than 60 days prior to the Expiration Date, Lessee shall, at its sole cost and
expense, provide to Lessor and the Agent a report by a reputable environmental consultant selected by Lessee, which report shall be in form and substance reasonably satisfactory to Lessor and the Agent and shall include without limitation a
“Phase I” environmental report (or update of a prior “Phase I” report that was previously delivered to the Lessor and the Agent) on each of the Properties. If the report delivered pursuant to the preceding sentence recommends
that a “Phase II” report or other supplemental report be obtained, the Lessee shall, at its own cost and expense, not less than thirty (30) days prior to such Expiration Date or Payment Date, provide to Lessor and the Agent such
“Phase II” or other report, in form and substance reasonably satisfactory to Lessor and the Agent. If Lessee fails to provide such Phase I, Phase II or other supplemental reports with respect to any Property within the time periods
required by this Section 10.2, or if such report or reports are not satisfactory in scope or content to the Agent or the Lessor (in their sole discretion), then notwithstanding any other provision of this Lease, Lessor may require Lessee to
purchase all of the Properties on such Expiration Date or Payment Date for the Termination Value thereof, plus all Rent due and payable, and all other amounts due and owing under any Operative Agreement. 
  
 ARTICLE XI 
  

	 	11.1.	Modifications. 

  
 Lessee at its sole cost and expense, at any time and from time to time without the consent of Lessor may make alterations, renovations, improvements and
additions to any Property or any part thereof and substitutions and replacements therefor (collectively, “Modifications”) and shall make any Modifications required by all applicable Legal 

  

 9 

 
Requirements; provided, that: (i) except for any Modification required to be made pursuant to a Legal Requirement, no Modification shall materially impair
the value, utility or useful life of any Property from that which existed immediately prior to such Modification; (ii) the Modification shall be done expeditiously and in a good and workmanlike manner; (iii) Lessee shall comply with all material
Legal Requirements (including all Environmental Laws) and Insurance Requirements applicable to the Modification, including without limitation the obtaining of all permits and certificates of occupancy, and the structural integrity of any Property
shall not be adversely affected; (iv) to the extent required by Section 14.2(a), Lessee shall maintain builders’ risk insurance at all times when a Modification is in progress; (v) subject to the terms of Article XIII relating to
permitted contests, Lessee shall pay all costs and expenses and discharge any Liens arising with respect to the Modification; (vi) such Modification shall comply with the requirements of this Lease (including without limitation Sections 8.2 and
10.1); and (vii) no Improvements shall be demolished. Modifications that (y) are not required for any Property or any part thereof pursuant to any Legal Requirement or otherwise and (z) are severable from the applicable Property without damage
or other loss of value to such Property (other than the value added by such Modification) shall become property of the Lessee, and title to such Modifications shall rest with the Lessee. Except as set forth in the immediately preceding sentence, all
Modifications shall become property of the Lessor and shall be subject to this Lease, and title to any component of any Property comprising any such Modifications shall immediately vest in Lessor. 
  
 ARTICLE XII 
  
 12.1. Warranty of Title. 
  
 (a) Lessee agrees that, except as otherwise provided herein and subject to the terms of Article XIII relating to permitted contests, Lessee shall
not directly or indirectly create or allow to remain, and shall promptly discharge at its sole cost and expense, (i) any Lien, defect, attachment, levy, title retention agreement or claim upon any Property or any Modifications or (ii) any Lien,
attachment, levy or claim with respect to the Rent or with respect to any amounts held by the Agent pursuant to the Credit Agreement, in each case other than Permitted Liens and Lessor Liens. Lessee shall promptly notify Lessor in the event it
receives actual knowledge that a Lien other than a Permitted Lien or Lessor Lien has occurred with respect to any Property, and Lessee represents and warrants to, and covenants with, Lessor that the Liens in favor of the Lessor created by the
Operative Agreements are first priority perfected Liens subject only to Permitted Liens. 
  
 (b) Nothing contained in this Lease shall be construed as constituting the consent or request of Lessor, expressed or implied, to or for the performance by any contractor, mechanic, laborer, materialman, supplier or
vendor of any labor or services or for the furnishing of any materials for any construction, alteration, addition, repair or demolition of or to any Property or any part thereof NOTICE IS HEREBY GIVEN THAT LESSOR IS NOT AND SHALL NOT BE LIABLE FOR
ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO LESSEE, OR TO ANYONE HOLDING A PROPERTY OR 

  

 10 

 
ANY PART THEREOF THROUGH OR UNDER LESSEE, AND THAT NO MECHANIC’S OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE
INTEREST OF LESSOR IN AND TO SUCH PROPERTY. 
  
 ARTICLE XIII

  

	 	13.1.	Permitted Contests Other Than in Respect of Indemnities. 

  
 Except to the extent otherwise provided for in Section 13 of the Participation Agreement, Lessee, on its own or on Lessor’s behalf but at
Lessee’s sole cost and expense, may contest, by appropriate administrative or judicial proceedings conducted in good faith and with due diligence, the amount, validity or application, in whole or in part, of any Legal Requirement, or utility
charges payable pursuant to Section 4.1 or any Lien, attachment, levy, encumbrance or encroachment, and Lessor agrees not to pay, settle or otherwise compromise any such item, provided that (a) the commencement and continuation of such
proceedings shall suspend the collection of any such contested amount from, and suspend the enforcement thereof against, the subject Property, Lessor, each Holder, the Agent and each Lender; (b) there shall not be imposed a Lien (other than
Permitted Liens) on any Property and no part of any Property nor any Rent shall be in any danger of being sold, forfeited, lost or deferred; (c) at no time during the permitted contest shall there be a risk of the imposition of criminal liability or
material civil liability on Lessor, any Holder, the Agent or any Lender for failure to comply therewith; and (d) in the event that, at any time, there shall be a material risk of extending the application of such item beyond the end of the Term,
then Lessee shall deliver to Lessor an Officer’s Certificate certifying as to the matters set forth in clauses (a), (b) and (c) of this Section 13.1. Lessor, at Lessee’s sole cost and expense, shall execute and deliver to Lessee
such authorizations and other documents as may reasonably be required in connection with any such contest and, if reasonably requested by Lessee, shall join as a party therein at Lessee’s sole cost and expense. 
  
 ARTICLE XIV 
  

	 	14.1.	Public Liability and Workers’ Compensation Insurance. 

  
 During the Term, Lessee shall procure and carry, at Lessee’s sole cost and expense, commercial general liability insurance for claims for injuries or
death sustained by persons or damage to property while on a Property or the premises where the Equipment is located and such other public liability coverages as are then customarily carried by similarly situated companies conducting business similar
to that conducted by Lessee. Such insurance shall be on terms and in amounts that are no less favorable than insurance maintained by Lessee with respect to similar properties and equipment that it owns and are then carried by similarly situated
companies conducting business similar to that conducted by Lessee. The policies shall be endorsed to name Lessor, the Holders, the Agent and the Lenders as additional insureds and, to the extent of their interest, loss payees. The policies shall
also specifically provide that such policies shall be considered primary insurance which shall apply to any loss or claim before any contribution by any insurance which Lessor, any Holder, the Agent or any Lender may have in force. Lessee shall, in
the operation of each Property, comply with the applicable workers’ 

  

 11 

 
compensation laws and protect Lessor, each Holder, the Agent and each Lender against any liability under such laws. 
  

	 	14.2.	Hazard and Other Insurance. 

  
 (a) During the Term, Lessee shall keep, or cause to be kept, each Property insured against loss or damage by fire and other risks and shall maintain
builders’ risk insurance during construction of any Improvements or Modifications in amounts not less than the replacement value from time to time of such Property and on terms that (a) are no less favorable than insurance covering other
similar properties owned by Lessee and (b) are then carried by similarly situated companies conducting business similar to that conducted by Lessee. The policies shall be endorsed to name Lessor, the Holders, the Agent and the Lenders, to the extent
of their respective interests, as additional loss payees; provided, that so long as no Lease Event of Default has occurred and is continuing, any loss payable under the insurance policies required by this Section will be paid to Lessee.

  
 (b) If, during the Term, the area in which a Property is
located is designated a “flood- prone” area pursuant to the Flood Disaster Protection Act of 1973, or any amendments or supplements thereto, then Lessee shall comply with the National Flood Insurance Program as set forth in the Flood
Disaster Protection Act of 1973. In addition, Lessee will fully comply with the requirements of the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, as each may be amended from time to time, and with any other
Legal Requirement concerning flood insurance to the extent that it may apply to any such Property. 
  

	 	14.3.	Coverage. 

  
 (a) As of the date of this Lease and annually thereafter so long as this Lease remains in effect, Lessee shall furnish Lessor and the Agent with
certificates prepared by the insurers or insurance broker of Lessee showing the insurance required under Sections 14.1 and 14.2 to be in effect, naming (except with respect to workers’ compensation insurance) Lessor, the Holders, the
Agent and the Lenders as additional insureds and loss payees and evidencing the other requirements of this Article XIV. All such insurance shall be at the cost and expense of Lessee and provided by nationally recognized, financially sound
insurance companies. Such certificates shall include a provision for thirty (30) days’ advance written notice by the insurer to Lessor and the Agent in the event of cancellation or material alteration of such insurance. If a Lease Event of
Default has occurred and is continuing and Lessor so requests, Lessee shall deliver to Lessor copies of all insurance policies required by Sections 14.1 and 14.2. 
  
 (b) Lessee agrees that any insurance policy required by Sections 14.1, 14.2(a) and 14.2(b) shall include an
appropriate provision that such policy will not be invalidated should Lessee waive, at any time, any or all rights of recovery against any party for losses covered by such policy or due to any breach of warranty, 

  

 12 

 
fraud, action, inaction or misrepresentation by Lessee or any Person acting on behalf of Lessee. Lessee hereby waives any and all such rights against the
Lessor, the Holders, the Agent and the Lenders to the extent of payments made to any such Person under any such policy. 
  

	 	(c)	Neither Lessor nor Lessee shall carry separate insurance concurrent in kind or form or contributing in the event of loss with any insurance required under this Article XIV,
except that Lessor may carry separate liability insurance at Lessor’s sole cost so long as (i) Lessee’s insurance is designated as primary and in no event excess or contributory to any insurance Lessor may have in force which would apply
to a loss covered under Lessee’s policy and (ii) each such insurance policy will not cause Lessee’s insurance required under this Article XIV to be subject to a coinsurance exception of any kind. 

  

	 	(d)	Lessee shall pay as they become due all premiums for the insurance required by Section 14.1 and Section 14.2, shall renew or replace each policy prior to the expiration date
thereto and shall otherwise maintain the coverage required by such Sections without any lapse in coverage. 

  

	 	(e)	Notwithstanding anything to the contrary contained in this Section, Lessee’s obligations to carry the insurance provided for herein may be brought within the coverage of a
so-called blanket policy or policies of insurance carried or maintained by Lessee; provided, however, that the coverage afforded Lessor will not be reduced or diminished or otherwise be different from that which would exist under separate policies
meeting all other requirements of this Lease, and that the requirements of this Article XIV are otherwise satisfied. 

  
 ARTICLE XV 
  

	 	15.1.	Casualty and Condemnation. 

  

	 	(a)	 Subject to the provisions of this Article XV and Article XVI (in the event Lessee delivers, or is obligated to deliver, a Termination Notice), and
prior to the occurrence and continuation of a Lease Default or Lease Event of Default, Lessee shall be entitled to receive (and Lessor hereby irrevocably assigns to Lessee all of Lessor’s right, title and interest in) any award, compensation or
insurance proceeds under Sections 14.2(a) or (b) hereof to which Lessee or Lessor may become entitled by reason of their respective interests in each Property (i) if all or a portion of such Property is damaged or destroyed in whole or in
part by a Casualty or (ii) if the use, access, occupancy, easement rights or title to such Property or any part thereof is the subject of a Condemnation; provided, however, that if a Lease Default or Lease Event of Default shall have
occurred and be continuing, such award, compensation or insurance proceeds shall be paid directly to Lessor or, if received by Lessee, shall be held in trust for Lessor, and shall be paid over by Lessee to Lessor and held in accordance with the
terms of this paragraph (a). All amounts held by Lessor hereunder on account of any award, compensation or insurance proceeds either paid directly to Lessor or turned over 

  

 13 

	 	 
to Lessor shall be held as security for the performance of Lessee’s obligations hereunder. 

  

	 	(b)	Lessee may appear in any proceeding or action to negotiate, prosecute, adjust or appeal any claim for any award, compensation or insurance payment on account of any such Casualty or
Condemnation and shall pay all expenses thereof. At Lessee’s reasonable request, and at Lessee’s sole cost and expense, Lessor and the Agent shall participate in any such proceeding, action, negotiation, prosecution or adjustment. Lessor
and Lessee agree that this Lease shall control the rights of Lessor and Lessee in and to any such award, compensation or insurance payment. 

  

	 	(c)	If Lessee shall receive notice of a Casualty or a possible Condemnation of a Property or any interest therein where damage to such Property is estimated to equal or exceed ten
percent (10%) of the Property Cost of such Property, Lessee shall give notice thereof to the Lessor and to the Agent promptly after the receipt of such notice. 

  

	 	(d)	In the event of a Casualty or a Condemnation (regardless of whether notice thereof must be given pursuant to paragraph (c)), this Lease shall terminate with respect to such Property
in accordance with Section 16.1 if Lessee, within thirty (30) days after such occurrence, delivers to Lessor and the Agent a Termination Notice to such effect. 

  

	 	(e)	If, pursuant to this Section 15.1, this Lease shall continue in full force and effect following a Casualty or Condemnation with respect to a Property, Lessee shall, at its sole cost
and expense and using, if available, the proceeds of any award, compensation or insurance with respect to such Casualty or Condemnation (including, without limitation, any such award, compensation or insurance which has been received by the Agent
and which should be turned over to Lessee pursuant to the terms of the Operative Agreements, and if not available or sufficient, using its own funds), promptly and diligently repair any damage to such Property caused by such Casualty or Condemnation
in conformity with the requirements of Sections 10.1 and 11.1, using the as-built plans and specifications or manufacturer’s specifications for the applicable Improvements or Equipment (as modified to give effect to any subsequent
Modifications, any Condemnation affecting the Property and all applicable Legal Requirements), so as to restore such Property to substantially the same condition, operation, function and value as existed immediately prior to such Casualty or
Condemnation. In such event, title to such Property shall remain with Lessor. 

  

	 	(f)	In no event shall a Casualty or Condemnation with respect to which this Lease remains in full force and effect under this Section 15.1 affect Lessee’s obligations to pay Rent
pursuant to Section 3.1. 

  

	 	(g)	 Notwithstanding anything to the contrary set forth in Section 15.1(a) or Section 15.1 (e), if during the Term, a Casualty occurs with respect to any Property or
Lessee receives notice of a Condemnation with respect to any Property, and 

  

 14 

	 	 
following such Casualty or Condemnation, (i) such Property cannot reasonably be restored, repaired or replaced on or before the 180th day prior to the
Expiration Date (if such Casualty or Condemnation occurs during the Term) to substantially the same condition as existed immediately prior to such Casualty or Condemnation, or (ii) on or before such day such Property is not in fact so restored,
repaired or replaced, then Lessee shall be required to purchase such Property on the next Payment Date and pay Lessor the Termination Value for such Property, plus any and all Rent then due and owing, plus all other amounts then due and owing
(including without limitation amounts described in clause FIRST of Section 22.2) 

  

	 	15.2. 	Environmental Matters. 

  
 Promptly upon Lessee’s actual knowledge of the presence of Hazardous Substances in any portion of a Property in concentrations and conditions that
constitute an Environmental Violation and as to which, in the reasonable opinion of Lessee, the cost to undertake any legally required response, clean up, remedial or other action might result in a cost to Lessee of more than $100,000, Lessee shall
notify Lessor in writing of such condition. In the event of any Environmental Violation (regardless of whether notice thereof must be given), Lessee shall, not later than thirty (30) days after Lessee has actual knowledge of such Environmental
Violation, either deliver to Lessor a Termination Notice pursuant to Section 16.1 if applicable, or, at Lessee’s sole cost and expense, promptly and diligently undertake and complete any response, clean up, remedial or other action necessary to
remove, cleanup or remediate the Environmental Violation in accordance with all Environmental Laws. If Lessee does not deliver a Termination Notice pursuant to Section 16.1, Lessee shall, upon completion of remedial action by Lessee, cause to be
prepared by a reputable environmental consultant acceptable to Lessor a report describing the Environmental Violation and the actions taken by Lessee (or its agents) in response to such Environmental Violation, and a statement by the consultant that
the Environmental Violation has been remedied in full compliance with applicable Environmental Law. 
  

	 	15.3. 	Notice of Environmental Matters. 

  
 Promptly, but in any event within thirty (30) days from the date Lessee has actual knowledge thereof, Lessee shall provide to Lessor written notice of any
pending or threatened Environmental Claim involving any Environmental Law or any Release on or in connection with any Property. All such notices shall describe in reasonable detail the nature of the claim, action or proceeding and Lessee’s
proposed response thereto. In addition, Lessee shall provide to Lessor, within five (5) Business Days of receipt, copies of all material written communications with any Governmental Authority relating to any Environmental Law in connection with the
Property. Lessee shall also promptly provide such detailed reports of any such material Environmental Claims as may reasonably be requested by Lessor. 
  

 15 

 ARTICLE XVI 
  

	 	16.1. 	Termination Upon Certain Events. 

  
 If any of the following occur: (i) if the requirements of Section 15.1(c) are satisfied, or (ii) if the requirements of Section 15.1(d) are satisfied and
Lessee has determined pursuant to such section that following the applicable Casualty or Condemnation this Lease shall terminate with respect to the affected Property, or (iii) Lessee has determined pursuant to the second sentence of Section 15.2
that, due to the occurrence of an Environmental Violation, this Lease shall terminate with respect to the affected Property, then Lessee shall be obligated to deliver, within thirty (30) days of its receipt of notice of the applicable Condemnation
or the occurrence of the applicable Casualty or Environmental Violation, a written notice to the Lessor in the form described in Section 16.2(a) (a ‘Termination Notice”) of the termination of this Lease with respect to the affected
Property. 
  

	 	16.2. 	Procedures. 

  

	 	(a)	A Termination Notice shall contain: (i) notice of termination of this Lease with respect to the affected Property on a Payment Date not more than sixty (60) days after Lessor’s
receipt of such Termination Notice (the ‘Termination Date”); and (ii) a binding and irrevocable agreement of Lessee to pay the Termination Value for the applicable Property, any and all Rent then due and owing and all other amounts then
due and owing from Lessee under any of the Operative Agreements (including without limitation amounts described in clause FIRST of Section 22.2) and purchase such Property on such Termination Date. 

  

	 	(b)	On the Termination Date, Lessee shall pay to Lessor the Termination Value for the applicable Property, any and all Rent then due and owing and all other amounts then due and owing
from Lessee under any of the Operative Agreements (including without limitation amounts described in clause FIRST of Section 22.2), and Lessor shall convey such Property, or the remaining portion thereof, if any, to Lessee (or
Lessee’s designee), all in accordance with Section 19.1. 

  
 ARTICLE XVII 
  

	 	17.1. 	Lease Events of Default. 

  
 If any one or more of the following events (each a “Lease Event of Default”) shall occur: 
  

	 	(a)	Lessee shall fail to make payment of (i) any Basic Rent (except as set forth in clause (ii)) within five (5) Business Days after the same has become due and payable or (ii) any
Termination Value, on the date any such payment is due, or any payment of Basic Rent or Supplemental Rent due on the due date of any such payment of Termination Value, or any amount due on the Expiration Date; 

  

 16 

	 	(b)	Lessee shall fail to make payment of any Supplemental Rent (other than Supplemental Rent referred to in Section 17.1(a)(ii)) due and payable within three (3) Business Days
after receipt of notice that such payment is due; 

  

	 	(c)	Lessee shall fail to maintain insurance as required by Article XIV of this Lease; 

  

	 	(d)	Lessee or any Consolidated Entity, as the case may be, shall fail to observe or perform any term, covenant or provision (including without limitation any term, covenant or provision
applying to Lessee and such Consolidated Entity under the Incorporated Covenants) of Lessee or any Consolidated Entity, as the case may be, under this Lease or any other Operative Agreement to which Lessee is a party other than those set forth in
Sections 17.1(a), (b) or (c) hereof, and such failure shall remain uncured for a period of thirty (30) days after the earlier of receipt of written notice from Lessor thereof or a Responsible Officer of Lessee becomes aware of such failure;

  

	 	(e)	Lessee shall default in the performance or observance of any other provision of this Lease or any other Operative Agreement to which Lessee is a party other than those set forth in
Sections 17.1(a), (b), (c) or (d) hereof, and shall not cure such default within thirty days after the first to occur of (i) the date the Agent, Lenders or Lessor gives written or telephonic notice of the default to Lessee, or (ii) the date
the Lessee otherwise has notice thereof; 

  

	 	(f)	A default shall be made (i) in the payment of any Indebtedness (other than obligations under the Operative Agreements) of the Lessee or any Consolidated Entity when due or (ii) in
the performance, observance or fulfillment of any term or covenant contained in any agreement or instrument under or pursuant to which any such Indebtedness may have been issued, created, assumed, guaranteed or secured by the Lessee or any
Consolidated Entity, if the effect of such default is to accelerate the maturity of such Indebtedness or to permit the holder thereof to cause such Indebtedness to become due prior to its stated maturity, and such default shall not be cured within
10 days after the occurrence of such default, and the amount of the Indebtedness involved exceeds $5,000,000; 

  

	 	(g)	The liquidation or dissolution of Lessee, or the suspension of the business of Lessee, or the filing by Lessee of a voluntary petition or an answer seeking reorganization,
arrangement, readjustment of its debts or for any other relief under the United States Bankruptcy Code, as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, or any other action of Lessee indicating its
consent to, approval of or acquiescence in, any such petition or proceeding; the application by Lessee for, or the appointment by consent or acquiescence of Lessee of a receiver, a trustee or a custodian of Lessee for all or a substantial part of
its property; the making by Lessee of any assignment for the benefit of creditors; the inability of Lessee or the admission by Lessee in writing of its inability to pay its debts as they mature; or Lessee taking any corporate action to authorize any
of the foregoing; 

  

 17 

	 	(h)	The filing of an involuntary petition against Lessee in bankruptcy or seeking reorganization, arrangement readjustment of its debts or for any other relief under the United States
Bankruptcy Code, as amended, or under any other insolvency act or law, state or federal, now or hereafter existing; or the involuntary appointment of a receiver, a trustee or a custodian of Lessee for all or a substantial part of its property; or
the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of Lessee, and the continuance of any of such events for ninety (90) days undismissed or undischarged; 

  

	 	(i)	The adjudication of Lessee as bankrupt or insolvent; 

  

	 	(j)	The entering of any order in any proceedings against Lessee decreeing the dissolution, divestiture or split-up of Lessee, and such order remains in effect for more than sixty (60)
days; 

  

	 	(k)	Any material report, certificate, financial statement or other instrument delivered to Lessor by or on behalf of Lessee pursuant to the terms of this Lease or any other Operative
Agreement shall be false or misleading in any material respect when made or delivered; 

  

	 	(1)	A final judgment (after all avenues of appeal and all applicable appeal periods have expired), which with other outstanding final judgments against Lessee exceeds an aggregate of
$500,000 shall be rendered against Lessee, and if within thirty (30) days after entry thereof such judgment shall not have been discharged, paid or bonded or execution thereon stayed pending appeal, or if within thirty (30) days after the expiration
of any such stay such judgment shall not have been discharged; 

  

	 	(m)	Any “Event of Default” (as defined in the Existing HEALTHSOUTH Credit Agreement, as such agreement may be amended, supplemented or restated from time to time, to the
extent the Majority Lenders and the Agent agree to any such amendments, otherwise the form of HEALTHSOUTH Credit Agreement existing before such amendment will continue to control with respect to the Operative Agreements) (hereinafter referred to as
“Existing HEALTHSOUTH Corporation Credit Agreement Event of Default”) shall have occurred and be continuing (or, in the event the Existing HEALTHSOUTH Credit Agreement has been terminated, would have occurred and be continuing had the
HEALTHSOUTH Credit Agreement continued to exist) beyond any applicable notice, grace or cure period (if any) included within the definition of such Existing HEALTHSOUTH Corporation Credit Agreement Event of Default; 

  

	 	(n)	 Any material Environmental Violation with respect to which notice to the Lessor is required to be given in accordance with Section 15.2 shall have occurred and be
continuing, unless (i) the Lessee shall completely remediate such Environmental Violation to the reasonable satisfaction of the Agent and the Lessor within 90 days following the date the Lessee has actual knowledge of such Environmental 

  

 18 

	 	 
Violation or (ii) the Lessee shall consummate the purchase of the affected Property in accordance with and at the price required by Section 16.2 by the
earlier of (A) 60 days after the Lessor’s receipt of the respective Termination Notice under Section 16.2(a) or (B) 90 days after the Lessee has actual knowledge of such Environmental Violation; 

  

	 	(o)	Any Operative Agreement shall cease to be in full force and effect, other than due to its expiration or termination in accordance with its terms; or 

  

	 	(p)	If the Guarantor shall default in the performance of any obligations under the Guarantee. 

  
 then, in any such event, (i) Lessor may, in addition to the other rights and remedies provided for in this Article XVII and in
Section 18.1, terminate this Lease by giving Lessee fifteen (15) days notice of such termination, and this Lease shall terminate, and all rights of Lessee under this Lease shall cease. Lessee shall, to the fullest extent permitted by law, pay
as Supplemental Rent all costs and expenses incurred by or on behalf of Lessor, including without limitation reasonable fees and expenses of counsel, as a result of any Lease Event of Default hereunder. 
  

	 	17.2. 	Surrender of Possession. 

  
 If a Lease Event of Default shall have occurred and be continuing, and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessee shall, upon thirty (30) days written notice, surrender to Lessor possession of the Properties. Lessor may enter upon and repossess the Properties by such means as are available at law or in equity, and may remove Lessee and all
other Persons and any and all personal property and Lessee’s equipment and personalty and severable Modifications from the Properties. Lessor shall have no liability by reason of any such entry, repossession or removal performed in accordance
with applicable law. Upon the written demand of Lessor, Lessee shall return the Properties promptly to Lessor, in the manner and condition required by, and otherwise in accordance with the provisions of, Section 22.1(c) hereof 
  

	 	17.3. 	Reletting. 

  
 If a Lease Event of Default shall have occurred and be continuing, and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessor may, but shall be under no obligation to, relet any Property, for the account of Lessee or otherwise, for such term or terms (which may be greater or less than the period which would otherwise have constituted the balance of the
Term) and on such conditions (which may include concessions or free rent) and for such purposes as Lessor may determine, and Lessor may collect, receive and retain the rents resulting from such reletting. Lessor shall not be liable to Lessee for any
failure to relet a Property or for any failure to collect any rent due upon such reletting. 
  

	 	17.4.	  Damages. 

  
 Neither (a) the termination of this Lease pursuant to Section 17.1; (b) the repossession of any Property; nor (c) the failure of Lessor to relet
any Property, the reletting of all or any portion thereof, nor the failure of Lessor to collect or receive any rentals due upon any 

  

 19 

 
such reletting, shall relieve Lessee of its liabilities and obligations hereunder, all of which shall survive any such termination, repossession or
reletting. If any Lease Event of Default shall have occurred and be continuing and notwithstanding any termination of this Lease pursuant to Section 17.1, Lessee shall forthwith pay to Lessor all Rent and other sums due and payable hereunder
to and including the date of such termination. Thereafter, on the days on which the Basic Rent or Supplemental Rent, as applicable, are payable under this Lease or would have been payable under this Lease if the same had not been terminated pursuant
to Section 17.1 and until the end of the Term hereof or what would have been the Term in the absence of such termination, Lessee shall pay Lessor, as current liquidated damages (it being agreed that it would be impossible accurately to
determine actual damages) an amount equal to the Basic Rent and Supplemental Rent that are payable under this Lease or would have been payable by Lessee hereunder if this Lease had not been terminated pursuant to Section 17.1, less the net
proceeds, if any, which are actually received by Lessor with respect to the period in question of any reletting of any Property or any portion thereof, provided that Lessee’s obligation to make payments of Basic Rent and Supplemental Rent under
this Section 17.4 shall continue only so long as Lessor shall not have received the amounts specified in Section 17.5. In calculating the amount of such net proceeds from reletting, there shall be deducted all of Lessor’s, any
Holder’s, the Agent’s and any Lender’s reasonable expenses in connection therewith, including repossession costs, reasonable brokerage or sales commissions, reasonable fees and expenses for counsel and any necessary repair or
alteration costs and expenses incurred in preparation for such reletting. To the extent Lessor receives any damages pursuant to this Section 17.4, such amounts shall be regarded as amounts paid on account of Rent. Lessee specifically
acknowledges and agrees that its obligations under this Section 17.4 shall be absolute and unconditional under any and all circumstances and shall be paid or performed, as the case may be, without notice or demand and without any abatement,
reduction, diminution, setoff, defense, counterclaim or recoupment whatsoever. 
  

	 	17.5 .	Final Liquidated Damages. 

  
 If a Lease Event of Default shall have occurred and be continuing, whether or not this Lease shall have been terminated pursuant to Section 17.1
and whether or not Lessor shall have collected any current liquidated damages pursuant to Section 17.4, Lessor shall have the right to recover, by demand to Lessee and at Lessor’s election, and Lessee shall pay to Lessor, as and for
final liquidated damages, but exclusive of the indemnities payable under Section 13 of the Participation Agreement, and in lieu of all current liquidated damages beyond the date of such demand (it being agreed that it would be impossible accurately
to determine actual damages) the sum of (a) the Termination Value of all Properties plus (b) all other amounts owing in respect of Rent and Supplemental Rent heretofore accruing under this Lease and all other amounts then due and owing by the Lessee
under any Operative Agreement. Upon payment of the amount specified pursuant to the first sentence of this Section 17.5, Lessee shall be entitled to receive from Lessor, either at Lessee’s request or upon Lessor’s election, in
either case at Lessee’s cost, an assignment of Lessor’s entire right, title and interest in and to the Properties, the Improvements, Fixtures, Modifications and Equipment, in each case in recordable form and otherwise in conformity with
local custom and free and clear of the Lien of this Lease (including the release of any memorandum of Lease recorded in connection therewith) and any Lessor Liens. The Properties shall be conveyed to Lessee “AS IS” ‘WHERE IS” and
in their then present physical condition. If any statute or rule of law shall limit the amount of such final 

  

 20 

 
liquidated damages to less than the amount agreed upon, Lessor shall be entitled to the maximum amount allowable under such statute or rule of law; provided,
however, Lessee shall not be entitled to receive an assignment of Lessor’s interest in the Property, the Improvements, Fixtures, Modifications or Equipment or documents unless Lessee shall have paid in full the Termination Value and all other
amounts due and owing hereunder and under the other Operative Agreements. Lessee specifically acknowledges and agrees that its obligations under this Section 17.5 shall be absolute and unconditional under any and all circumstances and shall be paid
or performed, as the case may be, without notice or demand (except as otherwise specifically provided herein) and without any abatement, reduction, diminution, setoff, defense, counterclaim or recoupment whatsoever. 
  

	 	17.6. 	Waiver of Certain Rights. 

  
 If this Lease shall be terminated pursuant to Section 17.1, Lessee waives, to the fullest extent permitted by law, (a) any notice of re-entry or
the institution of legal proceedings to obtain re-entry or possession; provided, however, that the Lessor or the Agent shall make a good faith effort to provide notice to the Lessee of any such action, but the failure to provide such notice for any
reason shall not result in the invalidity of any action so taken and shall not give rise to any rights on the part of the Lessee; (b) any right of redemption, re-entry or possession; (c) the benefit of any laws now or hereafter in force exempting
property from liability for rent or for debt, and (d) any other rights which might otherwise limit or modify any of Lessor’s rights or remedies under this Article XVII. 
  

	 	17.7. 	Assignment of Rights Under Contract. 

  
 If a Lease Event of Default shall have occurred and be continuing, and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessee shall upon Lessor’s demand immediately assign, transfer and set over to Lessor all of Lessee’s right, title and interest in and to each agreement executed by Lessee in connection with the purchase, construction,
development, use or operation of all Properties (including, without limitation, a right, title and interest of Lessee with respect to all warranty, performance, service and indemnity provisions), as and to the extent that the same relate to the
purchase, construction, use and operation of any Property. 
  

	 	17.8. 	Environmental Costs. 

  
 If a Lease Event of Default shall have occurred and be continuing, and whether or not this Lease shall have been terminated pursuant to Section
17.1, Lessee shall pay directly to any third party (or at Lessor’s election, reimburse Lessor) for the cost of any environmental testing or remediation work undertaken respecting any Property as such testing or work is deemed appropriate in
the reasonable judgment of Lessor, Lessee shall pay all amounts referenced in the immediately preceding sentence within ten (10) days of any request by Lessor for such payment. 
  

 21 

	 	17.9. 	Remedies Cumulative. 

  
 The remedies herein provided shall be cumulative and in addition to (and not in limitation of) any other remedies available at law, equity or otherwise,
including, without limitation, any mortgage foreclosure remedies. 
  

	 	17.10. 	Notice of Default or Event of Default. 

  
 Lessee shall promptly notify the Lessor and the Agent if any Responsible Officer of Lessee has received notice, or has actual knowledge, of any Default or
Event of Default. 
  
 ARTICLE XVIII 
  

	 	18.1. 	Lessor’s Right to Cure Lessee’s Lease Defaults. 

  
 Lessor, without waiving or releasing any obligation or Lease Event of Default, may (but shall be under no obligation to) remedy any Lease Event of Default
for the account and at the sole cost and expense of Lessee, including the failure by Lessee to maintain the insurance required by Article XIV, and may, to the fullest extent permitted by law, and notwithstanding any right of quiet enjoyment in favor
of Lessee, enter upon any Property, or real property owned or leased by Lessee and take all such action thereon as may be necessary or appropriate therefor. No such entry shall be deemed an eviction of any lessee. All reasonable out-of-pocket costs
and expenses so incurred (including without limitation reasonable fees and expenses of counsel), together with interest thereon at the Base Rate from the date on which such sums or expenses are paid by Lessor, shall be paid by Lessee to Lessor on
demand. 
  
 ARTICLE XIX 
  

	 	19.1. 	Provisions Relating to Lessee’s Exercise of its Purchase Option. 

  

Subject to Section 19.2, in connection with any termination of this Lease pursuant to the terms of Section 16.2, or in connection with
Lessee’s exercise of its Purchase Option or its option to purchase all the Properties pursuant to Section 20.1, upon the date on which this Lease is to terminate, and upon tender by Lessee of the amounts set forth in Sections 16.2(b),
20.1 or 20.2, as applicable, Lessor shall execute and deliver to Lessee (or to Lessee’s designee), at Lessee’s cost and expense a deed and an assignment of Lessor’s entire interest in the Properties, in recordable form and
otherwise in conformity with local custom and free and clear of the Lien of this Lease and any Lessor Liens attributable to Lessor but without any other warranties (of title or otherwise) from the Lessor. All Property shall be conveyed to Lessee
“AS IS” “WHERE IS” and in then present physical condition. 
  

	 	19.2. 	No Termination With Respect to Less than all of the Properties. 

  
 Lessee shall not be entitled to exercise its Purchase Option separately with respect to less than all of the Properties or that portion of any Property
consisting of Land, Equipment and Improvements but shall be required to exercise its Purchase Option with respect to all Properties. 
  

 22 

 ARTICLE XX 
  

	 	20.1. 	Early Purchase Option. 

  
 Provided that no Lease Default of the types specified in Sections 17.1 (a), (b), (h), (i) or (j) or any Lease Event of Default shall have occurred
and be continuing and provided that the Election Notice referred to in Section 20.2 has not been delivered, Lessee shall have the option, exercisable by giving the Agent and Lessor no more than one hundred twenty (120) days and no less than
sixty (60) days irrevocable written notice of Lessee’s election to exercise such option, to purchase all (but not less than all) of the Properties on a Scheduled Interest Payment Date as identified in such written notice, at a price equal to
the Termination Value for the Properties (which the parties do not intend to be a “bargain” purchase price), and Lessee at such time shall also pay any and all Rent then due and owing and all other amounts then due and owing by Lessee
under this Lease and under any other Operative Agreement (including without limitation amounts, if any, described in clause FIRST of Section 22.2). If Lessee exercises its option to purchase the Properties free and clear of the Lien of this
Lease and any Lessor Liens with respect to the Property pursuant to this Section 20.1, Lessor shall transfer to Lessee all of Lessor’s right, title and interest in and to each Property as of the Scheduled Interest Payment Date on which
such purchase occurs. 
  

	 	20.2. 	Purchase or Sale Option. 

  
 Not less than 120 days and no more than 180 days prior to the Expiration Date, Lessee may give Lessor and Agent irrevocable written notice (the
“Election Notice”) that Lessee is electing to exercise either (a) the option to purchase all, but not less than all, of the Properties on the Expiration Date (the “Purchase Option”) or (b) the option to remarket all of the
Properties and cause a sale of all of the Properties pursuant to the terms of Section 22.1 (the “Sale Option”), such sale to occur on the Expiration Date. If Lessee does not give an Election Notice indicating the Sale Option at
least 120 days and not more than 180 days prior to the then current Expiration Date, then Lessee shall be deemed to have elected the Purchase Option for the Expiration Date. Lessor shall have no obligation to sell any Property unless all of the
Properties are sold on the Expiration Date. If Lessee shall (i) elect (or be deemed to elect) to exercise the Purchase Option, or (ii) elect to remarket all of the Properties pursuant to Section 22.1 and fail to deliver the environmental
report required by Section 10.2 at the time specified in such Section, or (iii) elect to remarket all of the Properties pursuant to Section 22.1 and fail to cause all of the Properties to be sold in accordance with the terms of
Section 22.1 on the Expiration Date on which such a sale of all of the Properties is required in connection with such election, then in each case, Lessee shall pay to Lessor on the Expiration Date an amount equal to the Termination Value for
all the Properties (which the parties do not intend to be a “bargain” purchase) plus all Rent and other amounts then due and payable under this Lease or under any other Operative Agreement (including without limitation the amounts
described in clause FIRST of Section 22.2), and, upon receipt of such amount, Lessor shall transfer to Lessee all of Lessor’s right, title and interest in and to the Properties in accordance with Section 19.1. If the Lessee elects
the Purchase Option or the Sale Option and fails to perform its obligations under this Lease with respect to such option, a Lease Event of Default shall be deemed to occur. 
  

 23 

 ARTICLE XXI 
  

	 	21.1. 	Intentionally Deleted. 

  
 ARTICLE XXII 
  

	 	22.1. 	Sale Procedure. 

  

	 	(a)	 During the Marketing Period, Lessee, on behalf of the Lessor, shall obtain bids for the cash purchase of all of the Properties in connection with a sale to one or
more purchasers to be consummated on the Expiration Date for the highest price available, shall notify Lessor promptly of the name and address of each prospective purchaser and the cash price which each prospective purchaser shall have offered to
pay for the Properties and shall provide Lessor with such additional information about the bids and the bid solicitation procedure as Lessor may reasonably request from time to time. Lessor may reject any and all bids and may assume sole
responsibility for obtaining bids by giving Lessee written notice to that effect; provided, however, that notwithstanding the foregoing, Lessor may not reject the highest bid for the Properties submitted by the Lessee if such bid is
greater than or equal to the sum of the Limited Recourse Amount for the Properties, plus all reasonable costs and expenses referred to in clause FIRST of Section 22.2 and represent bona fide offers from one or more third party
purchasers and provided further, that Lessor may not reject a bid from the Houston Purchaser (defined below) with respect to all Property located in Houston, Texas, or a bid from the Topeka Purchaser (defined below) with respect to all
Property located in Topeka, Kansas in each case if and only if each of the following conditions in clauses (y) and (z) are met: (y) such bid is at least equal to the Termination Value of such Property (whether or not it is the highest bid for such
Property), plus all reasonable costs and expenses referred to in clause FIRST of Section 22.2 related to such Property. If the price which a prospective purchaser or purchasers shall have offered to pay for the Property is less than the sum
of the Limited Recourse Amount plus all reasonable costs and expenses referred to in clause FIRST of Section 22.2 and represents a bona fide offer from such purchaser and (z) with respect to all Properties other than such Property (the
“Other Properties”), the Lessee has received (and the Lessor has accepted) bids from one or more prospective purchasers, such bids are greater than or equal to the sum of the Limited Recourse Amounts for the Other Properties, plus all
reasonable costs and expenses referred to in clause FIRST of Section 22.2, Lessor may elect to retain the Properties by giving Lessee prior written notice of Lessor’s election to retain the Properties, and upon receipt of such notice,
Lessee shall surrender the Properties to Lessor pursuant to Section 10.1. Unless Lessor shall have elected to retain the Properties pursuant to the preceding sentence, Lessee shall arrange for Lessor to sell the Properties free and clear of
the Lien of this Lease and any Lessor Liens attributable to it, without recourse or warranty (of title or otherwise), for cash on the last day of the Marketing Period (such date being hereafter referred to as the “Sale Date”) to the
purchaser or purchasers identified by Lessee or Lessor, as the case may be; provided, however, solely as 

  

 24 

	 	 
to Lessor or the Trust Company, in its individual capacity, any Lessor Lien shall not constitute a Lessor Lien so long as Lessor or the Trust Company, in its
individual capacity, is diligently contesting such Lessor Lien by appropriate proceedings in good faith and Lessor indemnifies such purchaser with respect to such Lessor Lien. Lessee shall surrender the Properties so sold or subject to such
documents to the purchaser in the condition specified in Section 10.1. Lessee shall not take or fail to take any action which would have the effect of unreasonably discouraging bona fide third party bids for the Property. Lessor shall have no
obligation to sell any Property on the Sale Date unless all of the Properties are sold on the Sale Date. If the Properties are not either (i) sold on the Sale Date in accordance with the terms of this Section 22.1, or (ii) retained by the
Lessor pursuant to an affirmative election made by the Lessor pursuant to the third sentence of this Section 22.1 (a), then the Lessee shall be obligated to pay the Lessor on the Sale Date an amount equal to the Termination Value for the
Properties (plus all Rent .and other amounts then due and payable under this Lease and any other Operative Agreements) in accordance with the terms of Section 20.2. For the purposes of this paragraph, “Houston Purchaser” shall mean
Houston Rehabilitation Associates, a Delaware general partnership; and “Topeka Purchaser” shall mean Kansas Rehabilitation Hospital, Inc., a Delaware corporation. 

  

	 	(b)	If the Properties are sold on the Sale Date to a third party purchaser or purchasers in accordance with the terms of Section 22.1 (a) and the aggregate purchase price paid
for the Properties minus the sum of all costs and expenses referred to in clause FIRST of Section 22.2 is less than the sum of the Termination Value for the Properties plus all Rent and other amounts then due and payable under this
Lease and under any other Operative Agreements (hereinafter such difference shall be referred to as the “Deficiency Balance”), then the Lessee hereby unconditionally promises to pay to the Lessor on the Sale Date the lesser of (i) the
Deficiency Balance, or (ii) the Maximum Residual Guarantee Amount for the Properties. If the Properties are retained by the Lessor pursuant to an affirmative election made by the Lessor pursuant to the third sentence of Section 22.1 (a), then
the Lessee hereby unconditionally promises to pay to the Lessor on the Sale Date an amount equal to the Maximum Residual Guarantee Amount for the Properties. 

  

	 	(c)	 In the event that the Properties are either sold to a third party purchaser or purchasers on the Sale Date or retained by the Lessor in connection with an
affirmative election made by the Lessor pursuant to the third sentence of Section 22.1 (a), then in either case on the Sale Date the Lessee shall provide Lessor or such third party purchaser or purchasers with (i) all permits,
certificates of occupancy, governmental licenses and authorizations necessary to use and operate the Properties for their intended purposes, (ii) such easements, licenses, rights-of- way and other rights and privileges in the nature of an easement
as are reasonably necessary or desirable in connection with the use, repair, access to or maintenance of the Properties for its intended purpose or otherwise as the Lessor shall reasonably request, (iii) a services agreement covering such services
as Lessor or such third party purchaser may reasonably request and having a reasonable 

  

 25 

	 	 
duration, in order to use and operate the Properties for their intended purposes at such rates (not in excess of arm’s-length fair market rates) as
shall be acceptable to Lessee and Lessor or such third party purchaser or purchasers, and (iv) an assignment to the Lessor or such third party purchaser or purchasers (as the case may be) of any existing service agreements relating to the
Properties, to the extent such agreements are assignable. All assignments, licenses, easements, agreements and other deliveries required by clauses (i) and (ii) of this paragraph (c) shall be in form reasonably satisfactory to the Lessor or such
third party purchaser or purchasers, as applicable, and shall be fully assignable (including both primary assignments and assignments given in the nature of security) without payment of any fee, cost or other charge. 

  

	 	22.2. 	Application of Proceeds of Sale. 

  
 The Lessor shall apply the proceeds of sale of the Properties in the following order of priority: 
  

	 	(a)	FIRST, to pay or to reimburse Lessor for the payment of all reasonable costs and expenses incurred by Lessor in connection with the sale; 

  

	 	(b)	SECOND, so long as the Participation Agreement, the Credit Agreement or the Trust Agreement is in effect and any Loan, Holder Advance or any amount is owing to the Lenders,
the Holders or any other Person under any Operative Agreement, to the Agent to be applied pursuant to the terms in the Operative Agreements; and 

  

	 	(c)	THIRD, to the Lessee. 

  

	 	22.3. 	Indemnity for Excessive Wear. 

  
 If the proceeds of the sale described in Section 22.1 with respect to the Properties, less all expenses incurred by Lessor in connection with such
sale, shall be less than the Limited Recourse Amount with respect to the Properties, and at the time of such sale it shall have been reasonably determined (pursuant to the Appraisal Procedure) that the Fair Market Sales Value of the Properties,
shall have been impaired by greater than expected wear and tear during the term of the Lease, Lessee shall pay to Lessor within ten (10) days after receipt of Lessor’s written statement (i) the amount of such excess wear and tear determined by
the Appraisal Procedure or (ii) the amount of the Net Sale Proceeds Shortfall, whichever amount is less. 
  

	 	22.4. 	Appraisal Procedure. 

  
 For determining the Fair Market Sales Value of the Properties or any other amount which may, pursuant to any provision of any Operative Agreement, be
determined by an appraisal procedure, Lessor and Lessee shall use the following procedure (the “Appraisal Procedure”). Lessor and Lessee shall endeavor to reach a mutual agreement as to such amount for a period often (10) days from
commencement of the Appraisal Procedure under the applicable section of the Lease, and if they cannot agree within ten (10) days, then two qualified appraisers, one chosen by Lessee and one chosen by Lessor, shall mutually agree thereupon, but

  

 26 

 
if either party shall fail to choose an appraiser within twenty (20) days after notice from the other party of the selection of its appraiser, then the
appraisal by such appointed appraiser shall be binding on Lessee and Lessor. If the two appraisers cannot agree within twenty (20) days after both shall have been appointed, then a third appraiser shall be selected by the two appraisers or, failing
agreement as to such third appraiser within (30) days after both shall have been appointed, by the American Arbitration Association. The decisions of the three appraisers shall be given within twenty (20) days of the appointment of the third
appraiser and the decision of the appraiser most different from the average of the other two shall be discarded and such average shall be binding on Lessor and Lessee; provided that if the highest appraisal and the lowest appraisal are equidistant
from the third appraisal, the third appraisal shall be binding on Lessor and Lessee. The fees and expenses of each appraiser shall be paid by Lessee. 
  

	 	22.5. 	Certain Obligations Continue. 

  
 During the Marketing Period, the obligation of Lessee to pay Rent with respect to the Properties (including the installment of Basic Rent due on the
Expiration Date) shall continue undiminished until payment in full to Lessor of the sale proceeds, if any, the Maximum Residual Guarantee Amount, the amount due under Section 22.3, if any, and all other amounts due to Lessor with respect to
the Properties: Lessor shall have the right, but shall be under no duty, to solicit bids, to inquire into the efforts of Lessee to obtain bids or otherwise to take action in connection with any such sale, other than as expressly provided in this
Article XXII. 
  
 ARTICLE XXIII 
  

	 	23.1. 	Holding Over. 

  
 If Lessee shall for any reason remain in possession of the Properties after the expiration or earlier termination of this Lease (unless Properties are
conveyed to Lessee), such possession shall be as a tenancy at sufferance during which time Lessee shall continue to pay Supplemental Rent that would be payable by Lessee hereunder were the Lease then in full force and effect with respect to the
Properties and Lessee shall continue to pay Basic Rent at 110% of the Basic Rent that would otherwise be due and payable at such time. Such Basic Rent shall be payable from time to time upon demand by Lessor and such additional 10% amount shall be
applied by the Lessor to the payment of the Loans pursuant to the Credit Agreement and the Holder Advances pursuant to the Trust Agreement pro rata between the Loans and the Holder Advances. During any period of tenancy at sufferance, Lessee shall,
subject to the first sentence of this paragraph, be obligated to perform and observe all of the terms, covenants and conditions of this Lease, but shall have no rights hereunder other than the right, to the extent given by law to tenants at
sufferance, to continue their occupancy and use of the Properties. Nothing contained in this Article XXIII shall constitute the consent, express or implied, of Lessor to the holding over of Lessee after the expiration or earlier termination of this
Lease as to the Properties (unless the Properties are conveyed to Lessee) and nothing contained herein shall be read or construed as preventing Lessor from maintaining a suit for possession of the Properties or exercising any other remedy available
to Lessor at law or in equity. 
  

 27 

 ARTICLE XXIV 
  

	 	24.1. 	Risk of Loss. 

  
 During the Term, unless Lessee shall not be in actual possession of the Properties solely by reason of Lessor’s exercise of its remedies of
dispossession under Article XVII, the risk of loss or decrease in the enjoyment and beneficial use of the Properties as a result of the damage or destruction thereof by fire, the elements, casualties, thefts, riots, wars or otherwise is assumed by
Lessee, and Lessor shall in no event be answerable or accountable therefor. 
  
 ARTICLE XXV 
  

	 	25.1. 	Assignment. 

  

	 	(a)	Lessee may not assign, mortgage, pledge or encumber this Lease or any of its rights or obligations hereunder in whole or in part to any Person without the prior written consent of
the Agent, the Lessor, each Lender and each Holder, with such consent to be given or withheld in the sole discretion of each such party. 

  

	 	(b)	No such assignment or other relinquishment of possession to the Properties shall in any way discharge or diminish any of the obligations of Lessee to Lessor hereunder and Lessee
shall remain directly and primarily liable under this Leases 

  

	 	25.2. 	Subleases. 

  

	 	(a)	Except as set forth in this Section 25.2, Lessee may not sublet any Property or portion thereof without first obtaining the prior written consent of the Lessor and the Agent,
which consent may be given or withheld in the sole discretion of each such party. 

  

	 	(b)	Lessee may, without the consent of Lessor or the Agent, sublet a Property to a Subsidiary of Lessee, or sublet professional space constituting a portion of a Property to healthcare
providers, in each case if and only if: 

  

	 	(i)	Lessee remains fully liable for all obligations (including without limitation all Rent and other obligations with respect to such subleased Properties and any other Properties)
under this Lease and the other Operative Agreements; 

  

	 	(ii)	Such sublease is in writing and is expressly subject and subordinate to the rights of the Lessor, the Agent, the Lenders and the Holders under this Lease, the Security Agreement,
each Mortgage Instrument and all other Operative Agreements; and 

  

	 	(iii)	Such sublease is on commercially reasonable terms and at market rates, and has a term that does not extend past the Expiration Date, and such Property is at all times used for the
purposes set forth in this paragraph and in the definition of “Property”. 

  

 28 

	 	(c)	No sublease or other relinquishment of possession to any Property shall in any way discharge or diminish any of Lessee’s obligations to Lessor hereunder and Lessee shall remain
directly and primarily liable under this Lease as to the portion of the Property so sublet. 

  

	 	(d)	Each insurance policy carried by Lessee pursuant to Article XIV hereof shall be endorsed to name each sublessee, under any such sublease as an additional insured. Prior to
the effectiveness of any such sublease, Lessee shall deliver a copy thereof to the Lessor and the Agent. 

  

	 	(e)	Promptly but in any event at least thirty (30) days prior to the execution and delivery of any sublease permitted by this Article XXV, Lessee shall notify Lessor and the
Agent of the execution of such sublease. 

  
 ARTICLE
XXVI 
  

	 	26.1. 	No Waiver. 

  
 No failure by Lessor or Lessee to insist upon the strict performance of any term hereof or to exercise any right, power or remedy upon a default
hereunder, and no acceptance of full or partial payment of Rent during the continuance of any such default, shall constitute a waiver of any such default or of any such term. To the fullest extent permitted by law, no waiver of any default shall
affect or alter this Lease, and this Lease shall continue in full force and effect with respect to any other then existing or subsequent default. 
  
 ARTICLE XXVII 
  

	 	27.1. 	Acceptance of Surrender. 

  
 No surrender to Lessor of this Lease or of all or any portion of the Properties or of any interest therein shall be valid or effective unless agreed to
and accepted in writing by Lessor and the Agent and, prior to the payment or performance of all obligations under the Credit Documents, the Agent, and no act by Lessor or the Agent or any representative or agent of Lessor or the Agent, other than a
written acceptance, shall constitute an acceptance of any such surrender. 
  

	 	27.2. 	No Merger of Title. 

  
 There shall be no merger of this Lease or of the leasehold estate created hereby by reason of the fact that the same Person may acquire, own or hold,
directly or indirectly, in whole or in part, (a) this Lease or the leasehold estate created hereby or any interest in this Lease or such leasehold estate, (b) any right, title or interest in any Property, (c) any Notes, or (d) a beneficial interest
in Lessor. 
  

 29 

 ARTICLE XXVIII 
  

	 	28.1. 	Incorporation of Covenants. 

  

	 	(a)	Reference is made to that certain Credit Agreement dated as of October 31, 2000 (the “Existing HEALTHSOUTH Corporation Credit Agreement”) among HEALTHSOUTH Corporation,
UBS AG, Stamford Branch, as agent, and the other financial institutions party thereto. Further reference is made to the covenants contained in Articles VII and VIII of the Existing HEALTHSOUTH Corporation Credit Agreement (hereinafter
referred to as the “Incorporated Covenants”). The Lessee agrees with the Lessor that, effective as of the date hereof (whether or not the Basic Term has commenced), the Incorporated Covenants (and all other relevant provisions of the
Existing HEALTHSOUTH Corporation Credit Agreement related thereto) are hereby incorporated by reference into this Lease to the same extent and with the same effect as if set forth fully herein and shall inure to the benefit of the Lessor, without
giving effect to any waiver, amendment, modification or replacement of the Existing HEALTHSOUTH Corporation Credit Agreement or any term or provision of the Incorporated Covenants occurring subsequent to the date of this Lease, except to the extent
otherwise specifically provided in the following provisions of this paragraph. In the event a waiver is granted under the Existing HEALTHSOUTH Corporation Credit Agreement or an amendment or modification is executed with respect to the Existing
HEALTHSOUTH Corporation Credit Agreement, and such waiver, amendment or modification affects the Incorporated Covenants, then such waiver, amendment or modification shall be effective with respect to the Incorporated Covenants as incorporated by
reference into this Lease only if consented to in writing by the Majority Lenders. In the event of any replacement of the Existing HEALTHSOUTH Corporation Credit Agreement with a similar credit facility (the “New Facility”) the covenants
contained in the New Facility which correspond to the covenants contained in Articles VII and VIII of the Existing HEALTHSOUTH Corporation Credit Agreement shall become the Incorporated Covenants hereunder only if consented to in writing by
the Majority Lenders and, if such consent is not granted, then the covenants contained in Articles VII and VIII of the Existing HEALTHSOUTH Corporation Credit Agreement (together with any modifications or amendments approved in accordance with this
paragraph) shall continue to be the Incorporated Covenants hereunder. If the Existing HEALTHSOUTH Corporation Credit Agreement (or any such New Facility, as the case may be) is terminated and not replaced, then the covenants contained in Articles
VII and VIII of the Existing HEALTHSOUTH Corporation Credit Agreement (together with any modifications or amendments thereto, or to covenants of the New Facility, in each case approved in accordance with this paragraph) shall continue to be the
Incorporated Covenants hereunder. 

  

	 	(b)	 Financial Statements, Reports, etc. Without limiting the generality of the foregoing, from and after the date hereof (whether or not the Basic Term has
commenced with respect to any Property), to the extent that the Incorporated 

  

 30 

	 	 
Covenants require the Lessee or any of its Subsidiaries to deliver any financial statement, certificate, notice, report, or other document or information to
the Existing Credit Agent (or any other agent or lender under the applicable credit facility), the Lessee shall, and shall cause its Subsidiaries to, simultaneously deliver a copy of such financial statement, certificate, notice, report, document or
information to the Agent, each Lender, each Holder and (upon Lessor’s request) the Lessor. 

  

	 	28.2. 	Additional Reporting Requirements. 

  
 Without limiting the generality of the foregoing, from and after the date hereof, the Lessee will deliver, or will cause to be delivered, to the Agent,
each Lender, each Holder and (upon the Lessor’s request) the Lessor: 
  

	 	(i)	Such other information regarding the financial condition or operations of the Lessee or its Subsidiaries as the Agent shall reasonably request from time to time or at any time;

  

	 	(ii)	Promptly after the same shall have become known to any officer of the Lessee, a notice describing any action, suit or proceeding at law or in equity or by or before any Governmental
Authority that, if adversely determined, might impair the ability of the Lessee to perform its obligations under this Agreement or any other Operating Agreement or which might have a Material Adverse Effect; 

  

	 	(iii)	Prompt notice in writing of the occurrence of any Lease Default or Lease Event of Default. 

  
 ARTICLE XXIX 
  

	 	29.1. 	Notices. 

  
 All notices, demands, requests, consents, approvals and other communications hereunder shall be in writing and delivered personally or by a nationally
recognized overnight courier service or mailed (by registered or certified mail, return receipt requested, postage prepaid) or telecopied with a confirming notice, addressed to the respective parties, as follows: 
  
 If to Lessee: 
  
 HEALTHSOUTH Corporation 
 One HealthSouth Parkway 
 Birmingham, Alabama 35243 
 Attention: Malcolm E. McVay 
 Telephone No.: (205) 969-6140 
 Telecopy No.: (205) 969-4620 
 Email:
tadd.mcvay@healthsouth.com 
  

 31 

 With a copy to: 
  

HEALTHSOUTH Corporation 
 One HealthSouth
Parkway 
 Birmingham, Alabama 35243 
 Attention: William W. Horton 
 Telephone No.: (205) 969-4977 
 Telecopy No.: (205) 969-4730 
 Email:
bill.horton@healthsouth.com 
  
 If to Lessor: 
  
 First Security Bank, National Association 
 79 South Main Street 
 Salt Lake City, Utah
84111 
 Attention: Val T. Orton 
 Telephone No.: (801) 246-5630 
 Telecopy No.: (801) 246-5053 
 Email: 
  
 with a copy to the Agent: 
  
 UBS AG, Stamford Branch 
 677 Washington
Boulevard 
 Stamford, Connecticut 06901 
 Attention: Jennifer Poccia 
 Telephone No.: (203) 719-3834 
 Telecopy No.: (203) 719-3888 
 Email:
jennifer.poccia@ubsw.com 
  
 or such additional parties or other address as such
party may hereafter designate, and shall be effective upon receipt or refusal thereof. 
  
 ARTICLE XXX 
  

	 	30.1. 	Miscellaneous. 

  
 Anything contained in this Lease to the contrary notwithstanding, all claims against and liabilities of Lessee or Lessor arising from events commencing
prior to the expiration or earlier termination of this Lease shall survive such expiration or earlier termination. If any provision of this Lease shall be held to be unenforceable in any jurisdiction, such unenforceability shall not affect the
enforceability of any other provision of this Lease in such jurisdiction or of such provision or of any other provision hereof in any other jurisdiction. 
  

	 	30.2. 	Amendments and Modifications. 

  
 Neither this Lease nor any provision hereof may be amended, waived, discharged or terminated except by an instrument in writing in recordable form signed
by Lessor and Lessee. 
  

 32 

	 	30.3. 	Successors and Assigns. 

  
 All the terms and provisions of this Lease shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

  

	 	30.4. 	Headings and Table of Contents. 

  
 The headings and table of contents in this Lease are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

  

	 	30.5. 	Counterparts. 

  
 This Lease may be executed in any number of counterparts, each of which shall be an original, but all of which shall together constitute one and the same
instrument. 
  

	 	30.6. 	GOVERNING LAW. 

  
 AS TO MATTERS RELATING TO THE CREATION, PERFECTION, AND FORECLOSURE OF LIENS, AND ENFORCEMENT OF RIGHTS AND REMEDIES AGAINST ANY LEASED PROPERTY, THIS
LEASE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE IN WHICH THE APPLICABLE LEASED PROPERTY IS LOCATED. THIS LEASE SHALL IN ALL OTHER RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK. 
  

	 	30.7. 	Calculation of Rent. 

  
 All calculation of Rent payable hereunder shall be computed based on the actual number of days elapsed over a year of 360 days. 
  

	 	30.8. 	Memorandum of Lease. 

  
 This Lease shall not be recorded, provided Lessor and Lessee shall promptly record a Memorandum of this Lease (in substantially the form of Exhibit B
attached hereto) in the local filing office at Lessee’s cost and expense, and as required under applicable law to sufficiently evidence this Lease in the applicable real estate filing records. 
  

	 	30.9. 	Allocations between the Lenders and the Holders. 

  
 Notwithstanding any other term or provision of this Lease to the contrary, the allocations of the proceeds of the Properties and any and all other Rent
and other amounts received hereunder shall be subject to the inter-creditor provisions between the Lenders and the Holders contained in the Operative Agreements (or as otherwise agreed among the Lenders and the Holders from time to time).

  

 33 

	 	30.10. 	Limitations on Recourse. 

  
 Notwithstanding anything contained in this Lease to the contrary, Lessee agrees to look solely to Lessor’s estate and interest in the Properties for
the collection of any judgment requiring the payment of money by Lessor in the event of liability by Lessor, and no other property or assets of Lessor or any shareholder, owner or partner (direct or indirect) in or of Lessor, or any director,
officer, employee, beneficiary, Affiliate of any of the foregoing shall be subject to levy, execution or other enforcement procedure for the satisfaction of the remedies of Lessee under or with respect to this Lease, the relationship of Lessor and
Lessee hereunder or Lessee’s use of the Properties or any other liability of Lessor to Lessee. Nothing in this Section shall be interpreted so as to limit the terms of Sections 6.1 or 6.2. 
  

	 	30.11. 	WAIVERS OF JURY TRIAL. 

  
 THE LESSOR AND THE LESSEE IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS LEASE OR ANY COUNTERCLAIM
THEREIN. 
  

	 	30.12. 	Existing Agreements. 

  
 The single executed original of this Lease marked “THIS COUNTERPART IS THE ORIGINAL EXECUTED COUNTERPART” on the signature page thereof and
containing the receipt of the Agent therefor on or following the signature page thereof shall be the original executed counterpart of this Lease (the “Original Executed Counterpart”). To the extent that this Lease constitutes chattel
paper, as such term is defined in the Uniform Commercial Code as in effect in any applicable jurisdiction, no security interest in this Lease may be created through the transfer or possession of any counterpart other than the Original Executed
Counterpart. 
  

	 	30.13. 	Power of Sale. 

  
 Without limiting any other remedies set forth in this Lease, in the event that a court of competent jurisdiction rules that this Lease constitutes a
mortgage, deed of trust or other secured financing as is the intent of the parties, then the Lessor and the Lessee agree that the Lessee hereby grants, bargains, sells, conveys, mortgages, and grants a security interest in the Properties (and any
additional property described in Exhibit A) WITH POWER OF SALE, and that, upon the occurrence of any Event of Default, the Lessor shall have the power and authority, to the extent provided by law or the Operative Agreements, after prior notice and
lapse of such time as may be required by law, to foreclose its interest (or cause such interest to be foreclosed) in all or any part of any Property, to appoint or obtain the appointment of a receiver for all or any part of the Property, and to
exercise any other right or remedy that may be available under applicable law to the holder of a mortgage, deed of trust, security deed or other secured financing. 
  

	 	30.14. 	Exercise of Lessor Right. 

  
 The Lessee hereby acknowledges and agrees that the rights and powers of the Lessor under this Lease have been collaterally assigned to the Agent pursuant
to the terms of the Security Agreement and the other Operative Agreements, and that the Lessor has encumbered 

  

 34 

 
the Properties by various Mortgage Instruments made by the Lessor in favor of the Agent, all as security for certain indebtedness and obligations described
therein of the Lessor to the Agent, the Lenders and the Holders under the Operative Agreements. Lessee hereby consents to said assignment and said Mortgage Instruments in favor of the Agent and further acknowledges and agrees as follows: 

 

	 	(a)	In the event that a court of competent jurisdiction rules that this Lease constitutes a mortgage, deed of trust, security deed or other secured financing as is the intent of the
parties, then the Lessor and the Lessee agree that the Lessor’s collateral assignment of this Lease to the Agent shall be deemed to be a collateral assignment of such mortgage, deed of trust, security deed or other secured financing, and the
Agent as such collateral assignee shall be entitled to exercise any and all rights and remedies of the Lessor set forth herein during the existence of any Event of Default, including without limitation the Lessor’s rights to obtain a receiver,
to obtain possession of the Properties and the rents and revenues thereof, to foreclose this Lease, to sell the Lessee’s interest in the Properties, and to exercise any other rights or remedies that may then be available to the Lessor under
applicable law on account of such Event of Default. 

  

	 	(b)	Lessee’s interest in the Properties is junior and subordinate to the lien of any Mortgage Instruments made by the Lessor in favor of the Agent against the respective Properties
from time to time in connection with the Operative Agreements; provided, however, that for so long as no Event of Default shall have occurred and be continuing, (i) the Agent shall not disturb Lessee’s possession of the Properties through any
foreclosure or other remedial action against the Properties under any Mortgage Instrument, and (ii) if Lessor’s interest in any Property shall be transferred to any Person other than the Lessee as the result of the Agent’s foreclosure or
other remedial action under any Mortgage Instrument, the Lessee shall (upon request of the Agent) attorn to such transferee and recognize the transferee as the Lessee’s landlord under this Lease. 

  

	 	(c)	During the existence of an Event of Default, the Agent as holder of the Mortgage Instruments and as collateral assignee of this Lease may exercise any and all rights and remedies
that may then be available under applicable law to the Agent in either or both capacities, whether exercised singly, successively or concurrently. Without limiting the generality of the foregoing, the Agent as collateral assignee may enforce the
Lessee’s payment obligations under this Lease (regardless of whether this Lease shall be deemed a mortgage, deed of trust, security deed or other secured financing) even if Lessee’s interest and estate in any Property under this Lease
shall have been extinguished or forfeited under applicable law through the foreclosure or other enforcement of any Mortgage Instrument. 

  
 [Remainder of page intentionally left blank] 
  

 35 

 IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed and delivered as of the date
first above written. 
  

			
	HEALTHSOUTH Corporation, as Lessee
		
	By:	 	 /s/ Malcolm E. McVay

	 	 	 Name: Malcolm E. McVay

	 	 	 Title: Senior Vice President

  

			
	FIRST SECURITY BANK, NATIONAL ASSOCIATION, not individually, but solely as Owner Trustee under the HEALTHSOUTH Corporation Trust 2000-1, as Lessor
		
	By:	 	 /s/ Arge Pavlos

	 	 	 Name: ARGE PAVLOS

	 	 	 Title: TRUST OFFICER

  

 36 

 Receipt of this original counterpart of the foregoing Lease is hereby acknowledged on this 31st day of October, 2000. 
  

					
	UBS AG, Stamford Branch as Agent
		
	By:	 	 /s/ Daniel W. Ladd III

	 	 	 Name:
	 	 Daniel W. Ladd III

	 	 	 Title:
	 	 Executive Director

		
	By:	 	 /s/ Wilfred V. Saint

	 	 	 Name:
	 	 Wilfred V. Saint

	 	 	 Title:
	 	 Associate Director
 Banking Director

	 	 	 	 	 Services, US

  

 37 

 EXHIBIT A TO THE LEASE 
  
 Description of Properties 
  
 The Properties subject to this Lease includes the Land described on Schedule I-C attached hereto, and all Equipment on and Improvements to such Land,
including without limitation the Equipment described on Schedule I-B attached hereto and the Improvements described on Schedule I-C attached hereto. 
  
 In addition, to the extent that a court of competent jurisdiction rules that this Lease constitute a mortgage, deed of trust or other secured financing,
the Lessee hereby grants, bargains, sells, conveys, mortgage and grants a security interest WITH POWER OF SALE in each of the following: 
  
 1. All buildings, structures, fixtures, and other improvements of every kind existing at any time and from time to time on or under the real property
described on Schedule I-C (such real property, together with any and all appurtenances to such buildings, structures or improvements, including sidewalks, utility pipes, conduits and lines, parking areas and roadways, and including all Lease
Modifications and other additions to or changes in the Lease Improvements at any time (all of the foregoing in this paragraph 1 being referred to as the “Lease Improvements”); 
  
 2. All easements, rights-of-way, gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water
rights and passages, sewer rights, waters, water courses, water rights and powers, and all estate, rights, title, interests, privileges, liberties, tenements, hereditaments and appurtenances whatsoever, in any way belonging, relating or appertaining
to any of the Properties hereinabove described, or which hereafter shall in any way belong, relate or be appurtenant thereto, whether now owned or hereafter acquired by Lessee, and the reversion and reversions, remainder and remainders, rents,
issues and profits thereof, and all the estate, right, title, interest, property, possession, claim and demand whatsoever, at law as well as in equity, of Lessee in and to the same, including but not limited to all judgments, awards of damages and
settlements hereafter made resulting from condemnation proceedings involving Lessee taking the Properties described in Paragraphs 1 and 2 hereof, or any part thereof, under the power of eminent domain, or for any damage (whether caused by such
taking or otherwise) to the Properties hereinabove described or any part thereof or to any rights appurtenant thereto, and all proceeds of any sales or other dispositions of the Properties or any part thereof (all of the foregoing in this paragraph
2 being referred to as the “Lease Easements”); 
  
 3.
All right, title and interest of the Lessee in and to all of the fixtures, chattels, business machines, machinery, apparatus, equipment, furnishings, fittings and articles of personal property of every kind and nature whatsoever, and all
appurtenances and additions thereto and substitutions or replacements thereof (together with, in each case, attachments, components, parts and accessories) currently owned or subsequently acquired by the Lessee and now or subsequently attached to,
or contained in, comprising a portion of or used or usable in any way in connection with the Properties, including but without limiting the generality of the foregoing, all equipment referred to in the Appraisals and the Equipment Schedules pursuant
to the Lease or the Participation Agreement, all computer hardware, and all heating, electrical, and 

  

 
mechanical equipment, fighting, switchboards, plumbing, ventilation, air conditioning and air-cooling apparatus, refrigerating, and incinerating equipment,
escalators, elevators, loading and unloading equipment and systems, cleaning systems (including without limitation window cleaning apparatus), telephones, communication systems (including without limitation satellite dishes and antennae),
televisions, computers, sprinkler systems and other fire prevention and extinguishing apparatus and materials, security systems, motors, engines, machinery, pipes, pumps, tanks, conduits, appliances, fittings and fixtures of every kind and
description, but excluding Tangible Personal Property (all of the foregoing in this Paragraph 3 being referred to as the “Lease Equipment”); 
  
 4. All alterations, renovations, improvements and additions to the Land, any Lease Improvements or any Lease Equipment or any part thereof and
substitutions and replacements therefor (all of the foregoing in this Paragraph 4 being referred to as the “Lease Modifications”); 
  
 5. All right, title and interest of the Lessee in and to all of the fixtures, furnishings and fittings of every kind and nature whatsoever, and all
appurtenances and additions thereto and substitutions or replacements thereof (together with, in each case, attachments, components, parts and accessories) currently owned or subsequently acquired by the Lessee and now or subsequently attached to,
or contained in or used or usable in any way in connection with any of the Properties; together with (i) all property affixed to or located on the Properties which to the fullest extent permitted by law, shall be deemed fixtures and a part of the
real property, (ii) all materials delivered to the Properties for use in any construction being conducted thereon, and owned by Lessee, (iii) all contract rights, general intangibles, actions and rights in action including all rights to insurance
proceeds, arising out of or related to any of the foregoing property described in subparagraphs (i) and (ii) of this Paragraph 5 and Paragraphs 1,2 and 11, and (iv) all products, replacements, additions, substitutions, renewals and accessions of any
of the foregoing (all of the foregoing in this paragraph being referred to as the “Lease Fixtures”; all Land, Lease Fixtures, Lease Equipment, the Lease Improvements, Lease Easements and the Lease Modifications are being
collectively referred to herein as the “Property”); 
  
 6. All estate, right, title, claim or demand whatsoever of the Lessee, in possession or expectancy, in and to the Properties or any part thereof; 
  
 7. All right, title and interest of the Lessee in and to all substitutes, modifications and replacements of, and all additions, accessions and
improvements to the Properties, subsequently acquired by the Lessee or constructed, assembled or placed by the Lessee on the Land, immediately upon such acquisition, release, construction, assembling or placement, and in each such case, without any
further conveyance, assignment or other act by the Lessee; 
  
 8.
All right, title and interest of the Lessee in and to all unearned premiums under insurance policies now or subsequently obtained by the Lessee relating to the Properties and the Lessee’s interest in and to all proceeds of any such insurance
policies, including without limitation the right to collect and receive such proceeds; and all awards and other compensation, including without limitation the interest payable thereon and the right to collect and receive the same, made to the
present or any subsequent owner of the Properties for the taking by eminent domain, condemnation or otherwise, of all or any part of the Properties or any easement or other right therein; 
  

 2 

 9. All right, title and interest of the Lessee in and to (i) all consents, licenses, certificates and
other governmental approvals relating to construction, use or operation of the Properties or any part thereof and (ii) all Plans and Specifications relating to the Properties; 
  
 10. All rents, royalties, issues, profits, revenue, income and other benefits from the Properties; together with a right,
title and interest of Lessee in and to any and all leases now or hereafter on or affecting the Properties, together with all security therefor and monies payable thereunder; and 
  
 11. All proceeds, both cash and noncash, of any of the foregoing. 
  

 3 

 SCHEDULE I-A 
  
 (Equipment) 
  
 None. 
  

 SCHEDULE I-B 
  
 (Improvements) 
  
 All Improvements now or hereafter located on the Land described in Schedule I-C. 
  

 SCHEDULE I-C 
  
 (Land) 
  

 EXHIBIT B TO THE LEASE 
  
 FORM OF MEMORANDUM OF LEASE 
  

 When Recorded, Return To: 
  
 Dennis D. Kiely, Esq. 
 Simpson
Thacher & Bartlett 
 425 Lexington Avenue 
 New
York, NY 10017 
  
 For Recorder’s Use
Only             
  
 MEMORANDUM OF LEASE AGREEMENT, DEED OF TRUST, SECURITY AGREEMENT, 
 FINANCING STATEMENT

 AND TRANSFER AND ENCUMBRANCE OF RIGHTS (“MEMORANDUM”) 
  

			
	Name and Mailing Address of Lessor:	 	 First Security Bank, National Association
 79 South
Main Street
 Salt Lake City, Utah 84111,
 not individually, but
solely as
 Owner Trustee under the HEALTHSOUTH
 Corporation Trust
2000-1

		
	Name and Mailing Address of Lessee:	 	 HEALTHSOUTH Corporation
 One HealthSouth
Parkway
 Birmingham, Alabama 35243

		
	Name and Mailing Address of Trustee:	 	 Chicago Title Insurance Company
 6245 East Broadway,
Suite 400
 Tucson, Arizona 85711-4091

  
 Lessor and Lessee have
entered into a Lease Agreement dated as of October 31, 2000, (as such has been or may be amended, modified, extended, supplemented, restated, and/or replaced from time to time, the “Lease”), in connection with which this Memorandum is
executed. 
  
 SECTION 1. Description of Leased
Property Lessor is the owner of a leasehold interest in the Land described in Exhibit “A” attached hereto, and Lessor is or shall be the owner of all Improvements and Equipment now or hereafter located on the Land, including
without limitation the Improvements and Equipment described on Schedules I-B and I-A hereto, respectively. The Land, Improvements and Equipment are herein referred to as the “Leased Property.” 
  

 SECTION 2. Definitions: Rules of Usage For purposes of this Memorandum, capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to them in Appendix A to the Participation Agreement, dated as of October 31, 2000, among the Lessee, the Lessor, not individually, except as expressly stated
therein, but solely as Owner Trustee under the HEALTHSOUTH Corporation Trust 2000-1, the Holders party thereto, UBS AG, Stamford Branch, as Administrative Agent for the Lenders, and The Chase Manhattan Bank, as Documentation Agent (as such Agreement
may be amended, modified, extended, supplemented, and/or restated from time to time, the “Participation Agreement”). 
  
 SECTION 3. Term of Lease The Basic Term of the Lease as to the Leased Property commenced October 31, 2000, and shall end on June 22, 2003,
unless the Term is earlier terminated in accordance with the provisions of the Lease. 
  
 SECTION 4. Lessee’s Purchase or Sale Option Lessee has certain options to purchase or sell the Leased Property as provided in Article XX of the Lease. 
  
 SECTION 5. Use of Property At all times during the Term, Lessee
will comply with all obligations under and (to the extent no Event Default has occurred and is continuing) shall be permitted to exercise all rights and remedies under, all operation and easement agreements and related or similar agreements
applicable to the Leased Property. 
  
 SECTION 6. Ownership
of Leased Property 
  
 (a) Lessor and Lessee intend that
(i) for financial accounting purposes with respect to Lessee (A) the Lease will be treated as an “operating lease” pursuant to Statement of Financial Accounting Standards No. 13, as amended, (B) Lessor will be treated as the owner and
lessor of the Leased Property and (C) Lessee will be treated as the lessee of the Leased Property, but (ii) for federal and all state and local income tax purposes, for bankruptcy purposes and all other purposes (A) this Lease will be treated as a
financing arrangement, (B) Lessor will be treated as the owner of the Leased Property and will be entitled to all tax benefits ordinarily available to owners of property similar to the Leased Property for such tax purposes, and (C) all payments of
Basic Rent shall be deemed to be interest payments. Consistent with the foregoing, Lessee intends to claim depreciation and cost recovery deductions associated with the Leased Property, and Lessor agrees not to take any inconsistent position on its
income tax returns. Neither Lessor, the Agent, any Lender, nor any Holder makes any representation or warranty with respect to the foregoing matters described in this Section 6 and will assume no liability for the Lessee’s accounting
treatment of this transaction. 
  
 (b) For all purposes other than
as set forth in Section 6(a)(i), Lessor and Lessee intend the Lease to constitute a finance lease and not a true lease. Lessor and Lessee further intend and agree that, for the purpose of securing Lessee’s obligations hereunder and under
any other Operative Agreement (i) the Lease shall be deemed to be a security agreement and financing statement within the meaning of Article 9 of the Uniform Commercial Code respecting the Leased Property to the extent such is personal property and
an irrevocable grant and conveyance of the Leased Property to the Lessor as security for the Lessee’s obligations hereunder to the extent such is real property; (ii) the acquisition of title (or to the extent applicable, a leasehold interest)
in the Leased Property shall be deemed to be (A) a grant by Lessee to Lessor of a lien on and security interest in all of Lessee’s right, title and interest in and to the Leased Property and all proceeds (including without limitation insurance
proceeds) of the Leased Property, whether in the form of cash, investments, securities or other property, and (B) an assignment by Lessee to Lessor of all rents, profits and income produced by the Leased Property; and (iii) notifications to Persons
holding the Leased Property, and acknowledgements, receipts or confirmations from financial intermediaries, bankers or agents (as applicable) of Lessee shall be deemed to have been given for 

  

 2 

 
purpose of perfecting such security interest under applicable law. Lessor and Lessee shall promptly take such actions as may be necessary or advisable in
either party’s opinion (including without limitation the filing of Uniform Commercial Code Financing Statements or Uniform Commercial Code Fixture Filings) to ensure that the lien and security interest in the Leased Property will be deemed to
be a perfected lien and security interest of first priority under applicable law and will be maintained as such throughout the Term. 
  
 SECTION 7. Ratification Except as specifically modified hereby, the terms and provisions of the Lease and the Operative Agreements are
hereby ratified and confirmed and remain in full force and effect. 
  
 SECTION 8. GOVERNING LAW AS TO MATTERS RELATING TO THE CREATION, PERFECTION, AND FORECLOSURE OF LIENS, AND ENFORCEMENT OF RIGHTS AND REMEDIES AGAINST THE LEASED PROPERTY, THIS MEMORANDUM OF LEASE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF ARIZONA WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICT OF LAWS. THIS MEMORANDUM OF LEASE SHALL IN ALL OTHER RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK. 
  
 SECTION 9. Power of Sale
Without limiting any other remedies set forth in the Lease, Lessee, as trustor hereunder hereby irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Lessor, as beneficiary
hereunder, all right, title and interest of Lessee, now owned or hereafter acquired, in the Leased Property to secure the payment of all sums due and owing by Lessee hereunder or under any other Operative Agreement, and upon the occurrence of any
Event of Default, the Lessor shall have the power and authority to take the following actions: 
  
 (a) Declare all sums secured hereby to be immediately due and payable and either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court and without regard to
the adequacy of its security, enter upon and take possession of the Leased Property, or any part thereof, in its own name or in the name of Trustee, and do any acts that it deems necessary or desirable to preserve the value, marketability or
rentability of the Leased Property, or any part thereof or interest therein, increase the income therefrom or protect the security hereof and, with or without taking possession of the Leased Property, sue for or otherwise collect the Rents, or any
part thereof, including, without limitation, those past due and unpaid, and apply the same, less costs and expenses of operation and collection (including, without limitation, attorneys’ fees) upon the Liabilities, all in such order as lessor
may determine. The entering upon and taking possession of the Leased Property, the collection of such Rents and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done in
response to such default or pursuant to such notice of default and, notwithstanding the continuance in possession of all or any portion of the Leased Property or the collection, receipt and application of Rents, Trustee or Lessor shall be entitled
to exercise every right provided for in any of the Operative Agreements or by law upon occurrence of any Event of Default, including, without limitation, the right to exercise the power of sale. 
  
 (b) Commence an action to foreclose the lien of this Deed of Trust as a
mortgage, appoint a receiver, or specifically enforce any of the covenants hereof. 
  
 (c) Exercise of the power of sale herein contained and deliver to Trustee a written statement of breach, notice of default and election to cause Lessee’s interest in the Leased Property to be sold. If Lessor
elects to exercise the power of sale herein contained, Lessor shall notify Trustee and shall 

  

 3 

 
deposit with Trustee this Deed of Trust and the Note and such receipts and evidence of expenditures made and secured hereby as Trustee may require and in
addition: 
  
 (i) Upon receipt of such statement
and notice from Lessor, Trustee shall cause to be recorded, published and delivered to Lessee such Notice of Sale as then required by law. Trustee shall, without demand on Lessee, after lapse of such time as may then be required by law and after
recordation of such Notice of Sale and Notice of Sale having been given as required by law, sell the Leased Property at the time and place of sale fixed by it in said Notice of Sale, either as a whole, or in separate lots or parcels or items as
Trustee shall deem expedient, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof its
good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,
including, without limitation, Lessee, Trustee or Lessor, may purchase at such sale and Lessee hereby covenants to warrant and defend the title of such purchaser or purchasers. 
  
 (ii) After deducting all costs, fees and expenses of Trustee and of this Trust, including, without
limitation, Trustee’s fees and reasonable attorneys’ fees, and costs of evidence of title in connection with sale, Trustee shall apply the proceeds of sale in the following priority, to payment of: (i) first, all sums extended under
the terms of the Operative Agreements, not then repaid, with accrued interest at the Agreed Rate; (ii) second, all sums due under the Note; (iii) all other sums, then secured hereby; and (iv) the remainder, if any, to the person or persons
legally entitled thereto or as provided in A.R.S. Section 33-812 or any similar or successor statute. 
  
 (iii) Subject to A.R.S. Section 33-810.B, Trustee may postpone sale of all or any portion of the Leased Property by public announcement at
such time and place of sale, and from time to time thereafter may postpone such sale by public announcement or subsequently noticed sale, and without further notice make such sale at the time fixed by the last postponement, or may, in it discretion,
give a new notice of sale. 
  
 (iv) Exercise all
other rights and remedies provided herein, in any Loan Document or other document or agreement now or hereafter securing or guarantying all or any portion of the Liabilities, or by law, including, without limitation, the rights and remedies provided
in A.R.S. Section 33-702.B. 
  
 SECTION 10. Assignment of
Leases and Rents Lessee hereby absolutely and unconditionally assigns and transfers to Lessor (and has not heretofore otherwise so assigned or transferred to any other person or entity) all the leases (including all security deposits,
guarantees and other security at any time given as security for the performance of the obligations of the tenants thereunder), income, rents, revenues, issues, deposits, profits and proceeds of the Leased Property to which Lessee may be entitled,
whether now due, past due or to become due, and hereby gives to and confers upon Lessor the right, power and authority to collect such income, rents, revenues, issues, deposits, profits and proceeds. This assignment of the leases, income, rents,
revenues, issues, deposits, profits and proceeds constitutes an irrevocable direction and authorization of all tenants under the leases to pay all rent, revenues, income and profits to Lessor upon demand and without further consent or other action
by Lessor, This is an absolute assignment, not an assignment for security only, and Lessor’s right to rents, revenues, issues and profits is not contingent on Lessor’s possession of all or any portion of the Leased Property. Lessee
irrevocably appoints Lessor its true and lawful attorney, at the option of Lessor 

  

 4 

 
at any time, to demand, receive and enforce payment, to give receipts, releases and satisfactions, and to sue, either in the name of Lessee or in the name of
Lessor, for all such income, rents, revenues, issues, deposits, profits and proceeds and apply the same to the indebtedness secured hereby. It is understood and agreed that neither the foregoing assignment of leases, income, rents, revenues, issues,
deposits, profits and proceeds to Lessor nor the exercise by Lessor of any of its rights or remedies under this Section shall be deemed to make Lessor a “mortgagee-in-possession” or otherwise obligated, responsible or liable in any manner
with respect to the Leased Property or the use, occupancy, enjoyment or operation of all or any portion thereof. Notwithstanding anything to the contrary contained herein or in the Lease, so long as no event which is, or with notice or passage of
time or both would constitute, an Event of Default shall have occurred, Lessee shall have a license to collect all income, rents, revenues, issues, profits and proceeds from the Leased Property. Upon the occurrence of such event, such license shall
be deemed revoked, and any rents received thereafter by Lessee shall be delivered in kind to Lessor. Upon the occurrence of such event, Lessee agrees to deliver the original copies of all leases to Lessor. Lessee hereby irrevocably constitutes and
appoints Lessor its true and lawful attorney-in-fact to enforce, in Lessee’s name or in Lessor’s name or otherwise, all rights of Lessee in the instruments, including without limitation checks and money orders, tendered as payments of
rents and to do any and all things necessary and proper to carry out the purposes hereof. 
  
 SECTION 11. Exercise of Lessor Rights The Lessee hereby acknowledges and agrees that the rights and powers of the Lessor under the Lease have been assigned to the Agent pursuant to the terms of the
Security Agreement and the other Operative Agreements, and that the Lessor has encumbered the leased Property by a Mortgage Instrument made by the Lessor in favor of the Agent, all as security for certain indebtedness and obligations described
therein of the Lessor to the Agent, the Lenders and the Holders under the Operative Agreements. Lessee hereby consents to said assignment and said Mortgage Instrument in favor of the Agent and further acknowledges and agrees as follows: 

 
 (i) In the event that a court of competent jurisdiction
rules that the Lease constitutes a mortgage, security deed or other secured financing as is the intent of the parties, then the Lessor and the Lessee agree that the Lessor’s assignment of the Lease to the Agent shall be deemed to be an
assignment of such mortgage, security deed or other secured financing, and the Agent as such assignee shall be entitled to exercise any and all rights and remedies of the Lessor set forth herein during the existence of any Event of Default,
including without limitation the Lessor’s rights to obtain a keeper, to obtain possession of the Leased Property and the rents and revenues thereof, to foreclose the Lease, to sell the Lessee’s interest in the Leased Property, and to
exercise any other rights or remedies that may then be available to the Lessor under applicable law on account of such Event of Default. 
  
 (ii) Lessee’s interest in the Leased Property is junior and subordinate to the lien of the Mortgage Instrument and any other mortgage
instruments made by the Lessor in favor of the Agent against the Leased Property from time to time in connection with the Operative Agreements; provided, however, that for so long as no Event of Default shall have occurred and be continuing, (x) the
Agent shall not disturb Lessee’s possession of the Leased Property through any foreclosure or other remedial action against the Leased Property under any mortgage instrument, and (y) if Lessor’s interest in the Leased Property shall be
transferred to any Person other than the Lessee as the result of the Agent’s foreclosure or other remedial action under the Mortgage Instrument or any other mortgage instrument, the Lessee shall (upon request of the Agent) attorn to such
transferee and recognize the transferee as the Lessee’s landlord under the Lease. The provisions of this Section 11 (ii) shall not apply in the event of a foreclosure or other remedial action by the Agent referred to in Section 11 (i) above or
Section 11 (iii) below. 
  

 5 

 (iii) During the existence of an Event of Default, the Agent as holder of the Mortgage
Instrument and as assignee of the Lease may exercise any and all rights and remedies that may then be available under applicable law to the Agent in either or both capacities, whether exercised singly, successively or concurrently. Without limiting
the generality of the foregoing, the Agent as assignee may enforce the Lessee’s payment obligation under the Lease (regardless of whether the Lease shall be deemed a mortgage, deed of trust, security deed or other secured financing) even if
Lessee’s interest and estate in the Leased Property under this Lease shall have been extinguished or forfeited under applicable law through the foreclosure or other enforcement of any mortgage instrument. 
  
 SECTION 12. Counterpart Execution This Memorandum may be
executed in any number of counterparts and by each of the parties hereto in separate counterparts, all such counterparts together constituting but one and the same instrument. 
  
 SECTION 13. Incorporation of Lease The provisions set forth in the written Lease referred to above are hereby
incorporated by reference into this Memorandum. 
  
 SECTION 14.
Mechanic’s Liens Lessee shall not do or suffer anything to be done whereby the Leased Property may be encumbered by a mechanic’s lien, and Lessee shall, whenever a mechanic’s lien is filed against the Leased Property
purporting to be for labor, materials or services furnished or to be furnished to or on behalf of Lessee, discharge or remove the same of record. Notice is hereby given that Lessor’s interest in the Leased Property shall not be subject to
mechanic’s liens; that Lessor shall not be liable for any labor, materials or services furnished or to be furnished to or on behalf of Lessee upon credit; and that no mechanic’s or other liens for such labor, materials or services shall be
attached to or affect any interest of Lessor in the Leased Property. Pursuant to this notice Lessee shall notify all its contractors and subcontractors that liens shall not attach to the Leased Property. 
  
 SECTION 15. Limitation of Debt Secured and Future Advances
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE LEASE, TO THE EXTENT A SECURITY INTEREST IN FAVOR OF LESSOR IS GRANTED HEREUNDER OR UNDER THE LEASE, OR IN THE EVENT THE LEASE IS DEEMED OR HELD BY A COURT OF COMPETENT JURISDICTION
TO BE A DEED OF TRUST UNDER THE LAWS OF THE STATE OF ARIZONA AND SUBJECT TO THE SAME RULES OF FORECLOSURE AS ARE PRESCRIBED IN RELATION TO DEEDS OF TRUST, THEN (A) THE OBLIGATIONS SECURED BY THE LEASE SHALL NOT EXCEED $1,000,000,000.00 IN PRINCIPAL
PLUS ALL COSTS OF ENFORCEMENT AND COLLECTION OF THE AMOUNTS DUE LESSOR UNDER THE LEASE, PLUS ANY ADVANCES MADE BY LESSOR TO PROTECT THE PROPERTY AND THE LESSOR’S INTEREST THEREIN, TOGETHER WITH INTEREST ON ALL OF THE FOREGOING IN ACCORDANCE
WITH THE LEASE; (B) IT SHALL BE THE INTENT HEREOF TO SECURE PAYMENT OF THE LIABILITIES WHETHER THE ENTIRE AMOUNT SHALL HAVE BEEN ADVANCED TO THE LESSOR OR THE LESSEE AT THE DATE HEREOF, OR A LATER DATE, AND TO SECURE ANY OTHER AMOUNT OR AMOUNTS THAT
MAY BE ADDED TO SUCH INDEBTEDNESS UNDER THE TERMS OF THE OPERATIVE AGREEMENTS. THE TOTAL AMOUNT OF INDEBTEDNESS SECURED HEREBY MAY DECREASE OR INCREASE FROM TIME TO TIME, BUT THE TOTAL UNPAID BALANCE SO SECURED AT ANY ONE TIME SHALL NOT EXCEED AN
AMOUNT EQUAL TO ONE BILLION DOLLARS IN PRINCIPAL, PLUS INTEREST THEREON, AND ANY DISBURSEMENTS MADE FOR PAYMENT OF TAXES, LEVIES, OR INSURANCE ON THE LEASED PROPERTY, WITH INTEREST THEREON; AND (C) THIS DEED OF TRUST SHALL SECURE ANY AND ALL
ADDITIONAL OR FURTHER MONIES WHICH MAY BE ADVANCED TO LESSOR OR LESSEE CONSTITUTING LIABILITIES AS OF AND AFTER THE DATE HEREOF, BUT ANY AND ALL SUCH FUTURE ADVANCES SECURED 

  

 6 

 
BY THIS DEED OF TRUST SHALL BE MADE NOT MORE THAN TWENTY (20) YEARS AFTER THE DATE HEREOF. THE FOREGOING LIMITATION SHALL APPLY ONLY TO THE RIGHTS CREATED BY
THE LEASE AND SHALL NOT IN ANY MANNER LIMIT, AFFECT OR IMPAIR ANY RIGHT OF A SECURITY INTEREST OR OTHER RIGHT HERETOFORE OR HEREAFTER GRANTED IN FAVOR OF THE LESSOR PURSUANT TO THE PROVISIONS OF THE CREDIT AGREEMENT OR ANY OTHER OPERATIVE DOCUMENTS;
PROVIDED THAT TO THE EXTENT THE LEASE IS DEEMED TO SECURE THE SAME OBLIGATION AS THE MORTGAGE INSTRUMENT (DEFINED BELOW) OR IS COLLATERALLY ASSIGNED AS SECURITY FOR THE OBLIGATION SECURED BY THE MORTGAGE INSTRUMENT, THEN THE LEASE IS ADDITIONAL
COLLATERAL FOR SUCH OBLIGATION AND THE FOREGOING LIMITATION SHALL APPLY COLLECTIVELY TO THE RIGHTS CREATED BY THE LEASE AND THE MORTGAGE INSTRUMENT AND SHALL NOT IN ANY MANNER LIMIT, AFFECT OR IMPAIR ANY GRANT OF A SECURITY INTEREST OR OTHER RIGHT
HERETOFORE OR HEREAFTER GRANTED IN FAVOR OF THE LESSOR PURSUANT TO THE PROVISIONS OF THE CREDIT AGREEMENT OR ANY OTHER OPERATIVE DOCUMENTS. THE FOREGOING LIMITATIONS SHALL APPLY TO THE ARIZONA LEASED PROPERTY DESCRIBED HEREIN AND TO THE EXTENT OF
THE ARIZONA LEASED PROPERTY DESCRIBED HEREIN SHALL BECOME A PART OF THE LEASE RELATING THERETO. THE MORTGAGE INSTRUMENT HEREIN REFERRED TO IS THAT CERTAIN LEASEHOLD DEED OF TRUST, ASSIGNMENT OF LEASES, SECURITY AGREEMENT AND COLLATERAL ASSIGNMENT
MADE BY FIRST SECURITY BANK, NATIONAL ASSOCIATION, AS TRUSTOR, IN FAVOR OF UBS AG, STAMFORD BRANCH, AS BENEFICIARY, EXECUTED AND RECORDED IN THE PUBLIC RECORDS OF PIMA COUNTY, ARIZONA CONTEMPORANEOUSLY HEREWITH. 
  
 IN WITNESS WHEREOF, each of the parties has caused this Memorandum to be duly
executed by an officer thereunto duly authorized as of the date and year first above written. 
  

			
	 LESSOR:

	
	FIRST SECURITY BANK, NATIONAL ASSOCIATION, not individually, but solely as Owner Trustee under the HEALTHSOUTH Corporation Trust 2000-1
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	 LESSEE:

	
	HEALTHSOUTH Corporation, as Lessee
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 7 

 STATE OF 
 COUNTY OF

  
 On the
             day of
                                 in the year
                    , before me, the undersigned, personally appeared
                                        
                                , personally known to me or proved to me on the basis
of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/ their capacity(ies) and that by his / her / their signature(s) on
the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 
  

	
	
	  
	 Signature and Office of individual
 Taking
acknowledgement

  

 STATE OF 
 COUNTY OF

  
 On the
                         day of
                                 in the year
             before me, the undersigned, personally appeared
                                        
                                        ,
personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/ their
capacity(ies) and that by his / her / their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 
  

	
	
	  
	 Signature and Office of individual
 Taking
acknowledgement

  

 SCHEDULE I 
 TO MEMORANDUM OF LEASE 
  

 SCHEDULE I-A 
 TO MEMORANDUM OF LEASE 
  
 (Equipment) 
  
 None. 
  

 SCHEDULE I-B 
 TO MEMORANDUM OF LEASE 
  
 (Improvements) 
  

 EXHIBIT A 
  
 DESCRIPTION OF LAND 
  
 Parcel I: 
  
 Lot 10 of Tucson Medical Center, as shown by subdivision map recorded in Book 45 of Maps at Page 54, records of Pima County, Arizona. 
  
 Parcel II: 
  
 Non-exclusive Easement & Rights of Enjoyment in Common Areas set forth in Declaration of Covenants, Conditions, Restrictions and Easements for Tucson Medical Center
Campus (Lots-1-14, Common Areas A and B) Book 45 at Page 54 as recorded in Docket 9689 at Page 1677.

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