Document:

Loan Agreement

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  
 Exhibit 10.1 
 

 
 LOAN AGREEMENT 
 This Agreement dated as of September 1, 2006, is among Bank of America, N.A. (the “Bank”), Ambassadors International, Inc. (“Borrower 1”), Ambassadors Marine Group, LLC (“Borrower 2”), Ambassadors, LLC
(“Borrower 3”), Ambassadors Cruise Group, LLC (“Borrower 4”) and Cypress Reinsurance, Ltd. (“Borrower 5”) (Borrower 1, Borrower 2, Borrower 3, Borrower 4 and Borrower 5 are sometimes referred to collectively as the
“Borrowers” and individually as the “Borrower”). 
  

	1.	FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS 

  

	1.1	Line of Credit Amount. 

  

	(a)	During the availability period described below, the Bank will provide a line of credit to the Borrowers. The amount of the line of credit (the “Facility No. 1
Commitment”) is Twenty Million and 00/100 Dollars ($20,000,000.00). 

  

	(b)	This is a revolving line of credit. During the availability period, the Borrowers may repay principal amounts and reborrow them. 

  

	(c)	The Borrowers agree not to permit the principal balance outstanding under this Facility No. 1, including cash advances plus the amount of any letters of credit outstanding,
including amounts drawn on any letters of credit and not yet reimbursed, to exceed the Facility No. 1 Commitment. In addition, the amount of cash advances outstanding at any one time must not exceed Fifteen Million and 00/100 Dollars
($15,000,000.00). If the Borrower exceeds either of these limits, the Borrower will immediately pay the excess to the Bank upon the Bank’s demand. 

  

	1.2	Availability Period. The line of credit is available between the date of this Agreement and September 1, 2007, or such earlier date as the availability may terminate as
provided in this Agreement (the “Facility No. 1 Expiration Date”). 

 The availability period for this line of credit will be
considered renewed if and only if the Bank has sent to the Borrowers a written notice of renewal effective as of the Facility No. 1 Expiration Date for the line of credit (the “Renewal Notice”). If this line of credit is renewed, it
will continue to be subject to all the terms and conditions set forth in this Agreement except as modified by the Renewal Notice. If this line of credit is renewed, the term “Expiration Date” shall mean the date set forth in the Renewal
Notice as the Expiration Date and the same process for renewal will apply to any subsequent renewal of this line of credit. A renewal fee may be charged at the Bank’s option. The amount of the renewal fee will be specified in the Renewal
Notice. 
  

	1.3	Repayment Terms. 

  

	(a)	The Borrowers will pay interest on October 1, 2006, and then on the same day of each month thereafter until payment in full of any principal outstanding under this facility.

  

	(b)	The Borrowers will repay in full any principal, interest or other charges outstanding under this facility no later than the Facility No. 1 Expiration Date.

  

	1.4	Interest Rate. 

  

	(a)	The interest rate is a rate per year equal to the Bank’s Prime Rate. 

  

	(b)	The Prime Rate is the rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the
Bank’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans. The Bank may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime Rate
shall take effect at the opening of business on the day specified in the public announcement of a change in the Bank’s Prime Rate. 

  

	1.5	Letters of Credit. 

  

	(a)	During the availability period, at the request of the Borrowers, the Bank will issue: 

  

					
	 Standard Loan Agreement
	 	1	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	 	(i)	commercial letters of credit with a maximum maturity of two hundred ten (210) days but not to extend more than two hundred ten (210) days beyond the Facility No. 1
Expiration Date. 

  

	 	(ii)	standby letters of credit with a maximum maturity of three hundred sixty-five (365) days but not to extend more than three hundred sixty-five (365) days beyond the
Facility No. 1 Expiration Date. The standby letters of credit may include a provision providing that the maturity date will be automatically extended each year for an additional year unless the Bank gives written notice to the contrary;
provided, however, that each letter of credit must include a final maturity date which will not be subject to automatic extension. 

  

	(b)	The amount of the letters of credit outstanding at any one time (including the drawn and unreimbursed amounts of the letters of credit) may not exceed Twenty Million and 00/100
Dollars ($20,000,000). 

  

	(c)	In calculating the principal amount outstanding under the Facility No. 1 Commitment, the calculation shall include the amount of any letters of credit outstanding, including
amounts drawn on any letters of credit and not yet reimbursed. 

  

	(d)	The following letters of credit are outstanding from the Bank for the account of the Borrowers: 

  

			
	 Letter of Credit Number
	  	 Amount

	 ***
	  	$50,000.00
	 ***
	  	$70,000.00
	 ***
	  	$1,262,645.00
	 ***
	  	$1,752,875.00
	 ***
	  	$629,500.00
	 ***
	  	$1,973,033.00
	 ***
	  	$1,909,115.00
	 ***
	  	$1,638,750.00
	 ***
	  	$560,000.00
	 ***
	  	$1,145,000.00
	 ***
	  	$25,000.00
	 ***
	  	$888,774.00

 As of the date of this Agreement, these letters of credit shall be deemed to be outstanding under this
Agreement, and shall be subject to all the terms and conditions stated in this Agreement. 
  

	(e)	The Borrowers agree: 

  

	 	(i)	Any sum drawn under a letter of credit may, at the option of the Bank, be added to the principal amount outstanding under this Agreement. The amount will bear interest and be due as
described elsewhere in this Agreement. 

  

	 	(ii)	If there is a default under this Agreement, to immediately prepay and make the Bank whole for any outstanding letters of credit. 

  

	 	(iii)	The issuance of any letter of credit and any amendment to a letter of credit is subject to the Bank’s written approval and must be in form and content satisfactory to the Bank
and in favor of a beneficiary acceptable to the Bank. 

  

	 	(iv)	To sign the Bank’s form Application and Agreement for Commercial Letter of Credit or Application and Agreement for Standby Letter of Credit, as applicable.

  

	 	(v)	To pay any issuance and/or other fees that the Bank notifies the Borrowers will be charged for issuing and processing letters of credit for the Borrowers. 

 

	 	(vi)	To allow the Bank to automatically charge its checking account for applicable fees, discounts, and other charges. 

  

					
	 Standard Loan Agreement
	 	2	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	2.	FEES AND EXPENSES 

  

	2.1	Fees. 

  

	(a)	Waiver Fee. If the Bank, at its discretion, agrees to waive or amend any terms of this Agreement, the Borrowers will, at the Bank’s option, pay the Bank a fee for each
waiver or amendment in an amount advised by the Bank at the time the Borrowers request the waiver or amendment. Nothing in this paragraph shall imply that the Bank is obligated to agree to any waiver or amendment requested by the Borrowers. The Bank
may impose additional requirements as a condition to any waiver or amendment. 

  

	(b)	Late Fee. To the extent permitted by law, the Borrowers agree to pay a late fee in an amount not to exceed four percent (4%) of any payment that is more than fifteen
(15) days late. The imposition and payment of a late fee shall not constitute a waiver of the Bank’s rights with respect to the default. 

 2.2 Expenses. The Borrowers agree to immediately repay the Bank for expenses that include, but are not limited to, filing, recording and search fees, appraisal fees, title report fees, and documentation fees. 
  

	2.3	Reimbursement Costs. 

  

	(a)	The Borrowers agree to reimburse the Bank for any expenses it incurs in the preparation of this Agreement and any agreement or instrument required by this Agreement. Expenses
include, but are not limited to, reasonable attorneys’ fees, including any allocated costs of the Bank’s in-house counsel to the extent permitted by applicable law. 

  

	3.	DISBURSEMENTS, PAYMENTS AND COSTS 

  

	3.1	Disbursements and Payments. 

  

	(a)	Each payment by the Borrowers will be made in U.S. Dollars and immediately available funds by direct debit to a deposit account as specified below or, for payments not required to
be made by direct debit, by mail to the address shown on the Borrowers’ statement or at one of the Bank’s banking centers in the United States. 

  

	(b)	Each disbursement by the Bank and each payment by the Borrowers will be evidenced by records kept by the Bank. In addition, the Bank may, at its discretion, require the Borrowers to
sign one or more promissory notes. 

 3.2 Requests for Credit; Equal Access by all Borrowers. If there is more than one Borrower, any
Borrower (or a person or persons authorized by any one of the Borrowers), acting alone, can borrow up to the full amount of credit provided under this Agreement. Each Borrower will be liable for all extensions of credit made under this Agreement to
any other Borrower. 
  

	3.3	Telephone and Telefax Authorization. 

  

	(a)	The Bank may honor telephone or telefax instructions for advances or repayments and telefax requests for the issuance of letters of credit given, or purported to be given, by any
one of the individuals authorized to sign loan agreements on behalf of any of the Borrowers, or any other individual designated by any one of such authorized signers. 

  

	(b)	Advances will be deposited in and repayments will be withdrawn from account number     ***     owned by the Borrowers or such other of the
Borrowers’ accounts with the Bank as designated in writing by the Borrowers. 

  

	(c)	The Borrowers will indemnify and hold the Bank harmless from all liability, loss, and costs in connection with any act resulting from telephone or telefax instructions the Bank
reasonably believes are made by any individual authorized by the Borrowers to give such instructions. This paragraph will survive this Agreement’s termination, and will benefit the Bank and its officers, employees, and agents.

 3.4 Direct Debit (Pre-Billing). 
  

	(a)	 The Borrowers agree that the Bank will debit deposit account number     ***     owned by the Borrowers or such other of the
Borrowers’ accounts with the Bank as designated in writing by the Borrowers (the “Designated 

  

					
	 Standard Loan Agreement
	 	3	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	 	 
Account”) on the date each payment of principal and interest and any fees from the Borrowers become due (the “Due Date”).

  

	(b)	Prior to each Due Date, the Bank will mail to the Borrowers a statement of the amounts that will be due on that Due Date (the “Billed Amount”). The bill will be mailed a
specified number of calendar days prior to the Due Date, which number of days will be mutually agreed from time to time by the Bank and the Borrowers. The calculations in the bill will be made on the assumption that no new extensions of credit or
payments will be made between the date of the billing statement and the Due Date, and that there will be no changes in the applicable interest rate. 

  

	(c)	The Bank will debit the Designated Account for the Billed Amount, regardless of the actual amount due on that date (the “Accrued Amount”). If the Billed Amount debited to
the Designated Account differs from the Accrued Amount, the discrepancy will be treated as follows: 

  

	 	(i)	If the Billed Amount is less than the Accrued Amount, the Billed Amount for the following Due Date will be increased by the amount of the discrepancy. The Borrowers will not be in
default by reason of any such discrepancy. 

  

	 	(ii)	If the Billed Amount is more than the Accrued Amount, the Billed Amount for the following Due Date will be decreased by the amount of the discrepancy. 

 Regardless of any such discrepancy, interest will continue to accrue based on the actual amount of principal outstanding without compounding. The Bank
will not pay the Borrowers interest on any overpayment. 
  

	(d)	The Borrowers will maintain sufficient funds in the Designated Account to cover each debit. If there are insufficient funds in the Designated Account on the date the Bank enters any
debit authorized by this Agreement, the Bank may reverse the debit. 

  

	(e)	The Borrowers may terminate this direct debit arrangement at any time by sending written notice to the Bank at the address specified at the end of this Agreement. If the Borrowers
terminate this arrangement, then the principal amount outstanding under this Agreement will at the option of the Bank bear interest at a rate per annum which is 0.5 percentage point(s) higher than the rate of interest otherwise provided under this
Agreement. 

 3.5 Banking Days. Unless otherwise provided in this Agreement, a banking day is a day other than a Saturday, Sunday or
other day on which commercial banks are authorized to close, or are in fact closed, in the state where the Bank’s lending office is located, and, if such day relates to amounts bearing interest at an offshore rate (if any), means any such day
on which dealings in dollar deposits are conducted among banks in the offshore dollar interbank market. All payments and disbursements which would be due on a day which is not a banking day will be due on the next banking day. All payments received
on a day which is not a banking day will be applied to the credit on the next banking day. 
 3.6 Interest Calculation. Except as otherwise stated in
this Agreement, all interest and fees, if any, will be computed on the basis of a 360-day year and the actual number of days elapsed. This results in more interest or a higher fee than if a 365-day year is used. Installments of principal which are
not paid when due under this Agreement shall continue to bear interest until paid. 
 3.7 Default Rate. Upon the occurrence of any default or after
maturity or after judgement has been rendered on any obligation under this Agreement, all amounts outstanding under this Agreement, including any interest, fees, or costs which are not paid when due, will at the option of the Bank bear interest at a
rate which is 6.0 percentage point(s) higher than the rate of interest otherwise provided under this Agreement. This may result in compounding of interest. This will not constitute a waiver of any default. 
 3.8 Taxes. If any payments to the Bank under this Agreement are made from outside the United States, the Borrowers will not deduct any foreign taxes from any
payments it makes to the Bank. If any such taxes are imposed on any payments made by the Borrowers (including payments under this paragraph), the Borrowers will pay the taxes and will also pay to the Bank, at the time interest is paid, any
additional amount which the Bank specifies as necessary to preserve the after-tax yield the Bank would have received if such taxes had not been imposed. The Borrowers will confirm that they have paid the taxes by giving the Bank official tax
receipts (or notarized copies) within thirty (30) days after the due date. 
  

					
	 Standard Loan Agreement
	 	4	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	4.	CONDITIONS 

 Before the Bank is required to extend any credit to the
Borrowers under this Agreement, it must receive any documents and other items it may reasonably require, in form and content acceptable to the Bank, including any items specifically listed below. 
 4.1 Authorizations. If any Borrower or any guarantor is anything other than a natural person, evidence that the execution, delivery and performance by such
Borrower and/or such guarantor of this Agreement and any instrument or agreement required under this Agreement have been duly authorized. 
 4.2 Governing
Documents. If required by the Bank, a copy of the Borrowers’ organizational documents. 
 4.3 Payment of Fees. Payment of all fees and other
amounts due and owing to the Bank, including without limitation payment of all accrued and unpaid expenses incurred by the Bank as required by the paragraph entitled “Reimbursement Costs.” 
 4.4 Good Standing. Certificates of good standing for each Borrower as applicable from its state of formation and from any other state in which such Borrowers is
required to qualify to conduct its business. 
 4.5 Insurance. Evidence of insurance coverage, as required in the “Covenants” section of
this Agreement. 
  

	5.	REPRESENTATIONS AND WARRANTIES 

 When the Borrowers sign this Agreement,
and until the Bank is repaid in full, the Borrowers make the following representations and warranties. Each request for an extension of credit constitutes a renewal of these representations and warranties as of the date of the request: 

5.1 Formation. If any Borrower is anything other than a natural person, it is duly formed and existing under the laws of the state or other jurisdiction where
organized. 
 5.2 Authorization. This Agreement, and any instrument or agreement required hereunder, are within each Borrower’s powers, have been
duly authorized, and do not conflict with any of its organizational papers. 
 5.3 Enforceable Agreement. This Agreement is a legal, valid and binding
agreement of each Borrower, enforceable against each Borrower in accordance with its terms, and any instrument or agreement required hereunder, when executed and delivered, will be similarly legal, valid, binding and enforceable. 
 5.4 Good Standing. In each state in which each Borrower does business, it is properly licensed, in good standing, and, where required, in compliance with
fictitious name statutes. 
 5.5 No Conflicts. This Agreement does not conflict with any law, agreement, or obligation by which any Borrower is bound.

 5.6 Financial Information. All financial and other information that has been or will be supplied to the Bank is sufficiently complete to give the
Bank accurate knowledge of the Borrowers’ (and any guarantor’s) financial condition, including all material contingent liabilities. Since the date of the most recent financial statement provided to the Bank, there has been no material
adverse change in the business condition (financial or otherwise), operations, properties or prospects of any Borrower (or any guarantor). If any Borrower is comprised of the trustees of a trust, the foregoing representations shall also pertain to
the trustor(s) of the trust. 
 5.7 Lawsuits. There is no lawsuit, tax claim or other dispute pending or threatened against any Borrower which, if
lost, would impair such Borrower’s financial condition or ability to repay the loan, except as have been disclosed in writing to the Bank. 
 5.8
Permits, Franchises. Each Borrower possesses all permits, memberships, franchises, contracts and licenses required and all trademark rights, trade name rights, patent rights, copyrights and fictitious name rights necessary to enable it to
conduct the business in which it is now engaged. 
  

					
	 Standard Loan Agreement
	 	5	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  
 5.9 Other Obligations. No Borrower is in default on any obligation for borrowed money,
any purchase money obligation or any other material lease, commitment, contract, instrument or obligation, except as have been disclosed in writing to the Bank. 
 5.10 Tax Matters. No Borrower has any knowledge of any pending assessments or adjustments of its income tax for any year and all taxes due have been paid, except as have been disclosed in writing to the Bank. 
 5.11 No Event of Default. There is no event which is, or with notice or lapse of time or both would be, a default under this Agreement. 
 5.12 Insurance. Each Borrower has obtained, and maintained in effect, the insurance coverage required in the “Covenants” section of this Agreement.

  

	6.	COVENANTS 

 The Borrowers agree, so long as credit is available under this
Agreement and until the Bank is repaid in full: 
  

	6.1	Use of Proceeds. 

  

	(a)	To use the proceeds of Facility No. 1 only for working capital and issuance of letters of credit. 

  

	(b)	The proceeds of the credit extended under this Loan Agreement may not be used directly or indirectly to purchase or carry any “margin stock” as that term is defined in
Regulation U of the Board of Governors of the Federal Reserve System, or extend credit to or invest in other parties for the purpose of purchasing or carrying any such “margin stock,” or to reduce or retire any indebtedness incurred for
such purpose. 

 6.2 Financial Information. To provide the following financial information and statements in form and content acceptable
to the Bank, and such additional information as requested by the Bank from time to time. 
  

	(a)	Within ninety (90) days of the fiscal year end, the annual financial statements of Borrower 1. These financial statements must be audited (with an opinion satisfactory to the
Bank) by a Certified Public Accountant acceptable to the Bank. The statements shall be prepared on a consolidated basis. 

  

	(b)	Within forty five (45) days of the period’s end, quarterly financial statements of Borrower 1, certified and dated by an authorized financial officer. These financial
statements may be company-prepared. The statements shall be prepared on a consolidated basis. 

  

	(c)	Within ninety (90) days of the end of each fiscal year and within forty five (45) days of the end of each quarter, a compliance certificate of each Borrower signed by an
authorized financial officer, and setting forth (i) the information and computations (in sufficient detail) to establish that each Borrower is in compliance with all financial covenants at the end of the period covered by the financial
statements then being furnished and (ii) whether there existed as of the date of such financial statements and whether there exists as of the date of the certificate, any default under this Agreement and, if any such default exists, specifying
the nature thereof and the action the Borrowers are taking and propose to take with respect thereto. 

 6.3 Unencumbered Liquid Assets.
To maintain Unencumbered Liquid Assets having an aggregate market value of not less than Forty Million and 00/100 Dollars ($40,000,000.00). 
 “Unencumbered Liquid Assets” means the following assets (excluding assets of any retirement plan) which (i) are not the subject of any lien, pledge, security interest or other arrangement with any creditor to have his claim
satisfied out of the asset (or proceeds thereof) prior to the general creditors of the owner of the asset, and (ii) may be converted to cash within five (5) days: 
  

	(a)	Cash or cash equivalents held in the United States; 

  

	(b)	United States Treasury or governmental agency obligations which constitute full faith and credit of the United States of America; 

  

	(c)	Commercial paper rated P-1 or A1 by Moody’s or S&P, respectively; 

  

					
	 Standard Loan Agreement
	 	6	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	(d)	Medium and long-term securities rated investment grade by one of the rating agencies described in (c) above; 

  

	(e)	Eligible Stocks; 

  

	(f)	Mutual funds quoted in The Wall Street Journal which invest primarily in the assets described in (a) – (e) above. 

 “Eligible Stocks” includes any common or preferred stock which (i) is not subject to statutory or contractual restrictions on sales, (ii) is traded
on a U. S. national stock exchange or included in the National Market tier of NASDAQ and (iii) has, as of the close of trading on the applicable exchange (excluding after hours trading), a per share price of at least Fifteen Dollars ($15).

 The Borrowers will provide the Bank a Form U-1 Purpose Statement, confirming that none of the proceeds of the loan will be used to buy or carry any margin
stock. 
 6.4 Debt to Worth Ratio. To maintain on a consolidated basis a ratio of Total Liabilities (excluding the non-current portion of Subordinated
Liabilities) to Tangible Net Worth not exceeding 1.75:1.0. 
 “Total Liabilities” means the sum of current liabilities plus long term liabilities.

 “Tangible Net Worth” means the value of total assets (including leaseholds and leasehold improvements and reserves against assets but excluding
goodwill, patents, trademarks, trade names, organization expense, unamortized debt discount and expense, capitalized or deferred research and development costs, deferred marketing expenses, and other like intangibles, and monies due from affiliates,
officers, directors, employees, shareholders, members or managers) less total liabilities, including but not limited to accrued and deferred income taxes, but excluding the non-current portion of Subordinated Liabilities. 
 “Subordinated Liabilities” means liabilities subordinated to the Borrowers’ obligations to the Bank in a manner acceptable to the Bank in its sole
discretion. 
 6.5 Bank as Principal Depository. With respect to Borrower 1, to maintain the Bank as its principal depository bank, including for the
maintenance of business, cash management, operating and administrative deposit accounts. 
 6.6 Other Debts. Not to have outstanding or incur any
direct or contingent liabilities or lease obligations (other than those to the Bank), or become liable for the liabilities of others, without the Bank’s written consent. This does not prohibit: 
  

	(a)	Acquiring goods, supplies, or merchandise on normal trade credit. 

  

	(b)	Endorsing negotiable instruments received in the usual course of business. 

  

	(c)	Obtaining surety bonds in the usual course of business. 

  

	(d)	Liabilities, lines of credit and leases in existence on the date of this Agreement disclosed in writing to the Bank. 

  

	(e)	Additional debts assumed in connection with acquisitions permitted under this Agreement. 

 6.7 Other Liens. Not to create, assume, or allow any security interest or lien (including judicial liens) on property any Borrower now or later owns, except: 
  

	(a)	Liens and security interests in favor of the Bank. 

  

	(b)	Liens for taxes not yet due. 

  

	(c)	Liens outstanding on the date of this Agreement disclosed in writing to the Bank. 

  

	d)	Liens securing debts assumed in connection with acquisitions permitted under this Agreement. 

 6.8 Maintenance of Assets. 
  

	(a)	Not to sell, assign, lease, transfer or otherwise dispose of any part of any Borrower’s business or any Borrower’s assets except in the ordinary course of business.

  

					
	 Standard Loan Agreement
	 	7	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	(b)	Not to sell, assign, lease, transfer or otherwise dispose of any assets for less than fair market value, or enter into any agreement to do so. 

  

	(c)	Not to enter into any sale and leaseback agreement covering any of its fixed assets. 

  

	(d)	To maintain and preserve all rights, privileges, and franchises the Borrowers now have. 

  

	(e)	To make any repairs, renewals, or replacements to keep the Borrowers’ properties in good working condition. 

 6.9 Investments. Not to have any existing, or make any new, investments in any individual or entity, or make any capital contributions or other transfers of
assets to any individual or entity, except for: 
  

	(a)	Existing investments disclosed to the Bank in writing. 

  

	(b)	Investments in the Borrowers’ current subsidiaries. 

  

	(c)	Investments in any of the following: 

  

	 	(i)	certificates of deposit; 

  

	 	(ii)	U.S. treasury bills and other obligations of the federal government; 

  

	 	(iii)	readily marketable securities (including commercial paper, but excluding restricted stock and stock subject to the provisions of Rule 144 of the Securities and Exchange Commission).

 6.10 Loans. Not to make any loans, advances or other extensions of credit to any individual or entity, except for: 
  

	(a)	Existing extensions of credit disclosed to the Bank in writing. 

  

	(b)	Extensions of credit to the Borrowers’ current subsidiaries. 

  

	(c)	Extensions of credit in the nature of accounts receivable or notes receivable arising from the sale or lease of goods or services in the ordinary course of business to
non-affiliated entities. 

 6.11 Change of Management. Not to make any substantial change in the present executive or management
personnel of the Borrowers. 
 6.12 Change of Ownership. Not to cause, permit, or suffer any change in capital ownership such that there is a change
of more than twenty-five percent (25%) in the direct or indirect capital ownership of any Borrower. 
 6.13 Additional Negative Covenants. Not
to, without the Bank’s written consent: 
  

	 	(a)	Enter into any consolidation, merger, or other combination, or become a partner in a partnership, a member of a joint venture, or a member of a limited liability company.

  

	 	(b)	Acquire or purchase a business or its assets unless all of the following conditions have been met: 

  

	 	(i)	The acquisition or purchase has been approved by the board of directors or similar governing body of the business to be acquired; 

  

	 	(ii)	The business to be acquired is in a similar or related line of business as the Borrower’s line of business; and 

  

	 	(iii)	The Borrower has delivered to the Bank a certificate, executed by a responsible officer of the Borrower, stating that, on a pro forma basis, the acquisition will not cause the
Borrower to violate any financial covenants set forth in this Agreement. 

  

	 	(c)	Engage in any business activities substantially different from each Borrower’s present business. 

  

					
	 Standard Loan Agreement
	 	8	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	 	(d)	Liquidate or dissolve any Borrower’s business. 

  

	 	(e)	Voluntarily suspend any Borrower’s business for more than thirty (30) days in any three hundred sixty five (365) day period. 

  

	6.14	Notices to Bank. To promptly notify the Bank in writing of: 

  

	(a)	Any lawsuit over Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) against any Borrower (or any guarantor or, if any Borrower is comprised of the trustees of a trust, any
trustor). 

  

	(b)	Any substantial dispute between any governmental authority and any Borrower (or any guarantor or, if any Borrower is comprised of the trustees of a trust, any trustor).

  

	(c)	Any event of default under this Agreement, or any event which, with notice or lapse of time or both, would constitute an event of default. 

  

	(d)	Any material adverse change in any Borrower’s (or any guarantor’s, or, if any Borrower is comprised of the trustees of a trust, any trustor’s) business condition
(financial or otherwise), operations, properties or prospects, or ability to repay the credit. 

  

	(e)	Any change in any Borrower’s name, legal structure, place of business, or chief executive office if such Borrower has more than one place of business. 

 

	(f)	Any actual contingent liabilities of any Borrower (or any guarantor or, if any Borrower is comprised of the trustees of a trust, any trustor), and any such contingent liabilities
which are reasonably foreseeable, where such liabilities are in excess of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) in the aggregate. 

 6.15 Insurance. 
  

	(a)	General Business Insurance. To maintain insurance as is usual for the business it is in. 

 6.16 Compliance with Laws. To comply with the laws (including any fictitious or trade name statute), regulations, and orders of any government body with authority over any Borrower’s business. The Bank
shall have no obligation to make any advance to any Borrowers except in compliance with all applicable laws and regulations and any Borrowers shall fully cooperate with the Bank in complying with all such applicable laws and regulations. 

6.17 ERISA Plans. Promptly during each year, to pay and cause any subsidiaries to pay contributions adequate to meet at least the minimum funding standards
under ERISA with respect to each and every Plan; file each annual report required to be filed pursuant to ERISA in connection with each Plan for each year; and notify the Bank within ten (10) days of the occurrence of any Reportable Event that
might constitute grounds for termination of any capital Plan by the Pension Benefit Guaranty Corporation or for the appointment by the appropriate United States District Court of a trustee to administer any Plan. “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time. Capitalized terms in this paragraph shall have the meanings defined within ERISA. 
 6.18 Books and Records. To maintain adequate books and records. 
 6.19 Audits. To allow the Bank and its agents to inspect each
Borrower’s properties and examine, audit, and make copies of books and records at any reasonable time. If any of the Borrowers’ properties, books or records are in the possession of a third party, the Borrowers authorize that third party
to permit the Bank or its agents to have access to perform inspections or audits and to respond to the Bank’s requests for information concerning such properties, books and records. 
 6.20 Cooperation. To take any action reasonably requested by the Bank to carry out the intent of this Agreement. 
  

	7.	DEFAULT AND REMEDIES 

 If any of the following events of default occurs,
the Bank may do one or more of the following: declare the Borrowers in default, stop making any additional credit available to the Borrowers, and require the Borrowers to repay their entire debt immediately and without prior notice. If an event
which, with notice or the passage of time, will constitute an event of default has occurred and is continuing, the Bank has no obligation to make advances or extend additional credit under this 

  

					
	 Standard Loan Agreement
	 	9	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  
 
Agreement. In addition, if any event of default occurs, the Bank shall have all rights, powers and remedies available under any instruments and agreements
required by or executed in connection with this Agreement, as well as all rights and remedies available at law or in equity. If an event of default occurs under the paragraph entitled “Bankruptcy,” below, with respect to any Borrower, then
the entire debt outstanding under this Agreement will automatically be due immediately. 
  

	7.1	Failure to Pay. The Borrowers fail to make a payment under this Agreement when due. 

 7.2 Other Bank Agreements. Any default occurs under any other agreement any Borrower (or any Obligor) or any of the Borrowers’ related entities or affiliates has with the Bank or any affiliate of the Bank.
For purposes of this Agreement, “Obligor” shall mean any guarantor, any party pledging collateral to the Bank, or, if any Borrower is comprised of the trustees of a trust, any trustor. 
 7.3 Cross-default. Any default occurs under any agreement in connection with any credit any Borrower (or any Obligor) or any of the Borrowers’ related
entities or affiliates has obtained from anyone else or which any Borrower (or any Obligor) or any of the Borrowers’ related entities or affiliates has guaranteed. 
 7.4 False Information. Any Borrower or any Obligor has given the Bank false or misleading information or representations. 
 7.5 Bankruptcy. Any Borrower, any Obligor, or any general partner of any Borrower or of any Obligor files a bankruptcy petition, a bankruptcy petition is filed against any of the foregoing parties, or any Borrower, any Obligor, or
any general partner of any Borrower or of any Obligor makes a general assignment for the benefit of creditors. 
 7.6 Receivers. A receiver or similar
official is appointed for a substantial portion of any Borrower’s or any Obligor’s business, or the business is terminated, or, if any Obligor is anything other than a natural person, such Obligor is liquidated or dissolved. 
 7.7 Judgments. Any judgments or arbitration awards are entered against any Borrower or any Obligor, or any Borrower or any Obligor enters into any settlement
agreements with respect to any litigation or arbitration, in an aggregate amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) or more in excess of any insurance coverage. 
 7.8 Material Adverse Change. A material adverse change occurs, or is reasonably likely to occur, in any Borrower’s (or any Obligor’s) business condition
(financial or otherwise), operations, properties or prospects, or ability to repay the credit. 
 7.9 Government Action. Any government authority
takes action that the Bank believes materially adversely affects any Borrower’s or any Obligor’s financial condition or ability to repay. 
 7.10
Default under Related Documents. Any default occurs under any guaranty, subordination agreement, security agreement, deed of trust, mortgage, or other document required by or delivered in connection with this Agreement or any such document is
no longer in effect, or any guarantor purports to revoke or disavow the guaranty. 
 7.11 ERISA Plans. Any one or more of the following events occurs
with respect to a Plan of any Borrower subject to Title IV of ERISA, provided such event or events could reasonably be expected, in the judgment of the Bank, to subject any Borrower to any tax, penalty or liability (or any combination of the
foregoing) which, in the aggregate, could have a material adverse effect on the financial condition of such Borrower: 
  

	(a)	A reportable event shall occur under Section 4043(c) of ERISA with respect to a Plan. 

  

	(b)	Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or partial withdrawal from a Plan by any Borrower or any ERISA Affiliate.

 7.12 Other Breach Under Agreement. A default occurs under any other term or condition of this Agreement not specifically referred to
in this Article. This includes any failure or anticipated failure by any Borrower (or any other party named in the Covenants section) to comply with the financial covenants set forth in this Agreement, whether such failure is evidenced by financial
statements delivered to the Bank or is otherwise known to the Borrowers or the Bank. 
  

					
	 Standard Loan Agreement
	 	10	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	8.	ENFORCING THIS AGREEMENT; MISCELLANEOUS 

 8.1 GAAP. Except as
otherwise stated in this Agreement, all financial information provided to the Bank and all financial covenants will be made under generally accepted accounting principles, consistently applied. 
  

	8.2	California Law. This Agreement is governed by California state law. 

 8.3 Successors and Assigns. This Agreement is binding on the Borrowers’ and the Bank’s successors and assignees. The Borrowers agree that they may not assign this Agreement without the Bank’s prior consent. The Bank
may sell participations in or assign this loan, and may exchange information about the Borrowers (including, without limitation, any information regarding any hazardous substances) with actual or potential participants or assignees. If a
participation is sold or the loan is assigned, the purchaser will have the right of set-off against the Borrowers. 
 8.4 Dispute Resolution
Provision. This paragraph, including the subparagraphs below, is referred to as the “Dispute Resolution Provision.” This Dispute Resolution Provision is a material inducement for the parties entering into this agreement. 
  

	(a)	This Dispute Resolution Provision concerns the resolution of any controversies or claims between the parties, whether arising in contract, tort or by statute, including but not
limited to controversies or claims that arise out of or relate to: (i) this agreement (including any renewals, extensions or modifications); or (ii) any document related to this agreement (collectively a “Claim”). For the
purposes of this Dispute Resolution Provision only, the term “parties” shall include any parent corporation, subsidiary or affiliate of the Bank involved in the servicing, management or administration of any obligation described or
evidenced by this agreement. 

  

	(b)	At the request of any party to this agreement, any Claim shall be resolved by binding arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the
“Act”). The Act will apply even though this agreement provides that it is governed by the law of a specified state. 

  

	(c)	Arbitration proceedings will be determined in accordance with the Act, the then-current rules and procedures for the arbitration of financial services disputes of the American
Arbitration Association or any successor thereof (“AAA”), and the terms of this Dispute Resolution Provision. In the event of any inconsistency, the terms of this Dispute Resolution Provision shall control. If AAA is unwilling or unable to
(i) serve as the provider of arbitration or (ii) enforce any provision of this arbitration clause, the Bank may designate another arbitration organization with similar procedures to serve as the provider of arbitration.

  

	(d)	The arbitration shall be administered by AAA and conducted, unless otherwise required by law, in any U.S. state where real or tangible personal property collateral for this credit
is located or if there is no such collateral, in the state specified in the governing law section of this agreement. All Claims shall be determined by one arbitrator; however, if Claims exceed Five Million Dollars ($5,000,000), upon the request of
any party, the Claims shall be decided by three arbitrators. All arbitration hearings shall commence within ninety (90) days of the demand for arbitration and close within ninety (90) days of commencement and the award of the arbitrator(s)
shall be issued within thirty (30) days of the close of the hearing. However, the arbitrator(s), upon a showing of good cause, may extend the commencement of the hearing for up to an additional sixty (60) days. The arbitrator(s) shall
provide a concise written statement of reasons for the award. The arbitration award may be submitted to any court having jurisdiction to be confirmed and have judgment entered and enforced. 

  

	(e)	The arbitrator(s) will give effect to statutes of limitation in determining any Claim and may dismiss the arbitration on the basis that the Claim is barred. For purposes of the
application of any statutes of limitation, the service on AAA under applicable AAA rules of a notice of Claim is the equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or whether a Claim is arbitrable shall be
determined by the arbitrator(s), except as set forth at subparagraph (j) of this Dispute Resolution Provision. The arbitrator(s) shall have the power to award legal fees pursuant to the terms of this agreement. 

  

	(f)	The procedure described above will not apply if the Claim, at the time of the proposed submission to arbitration, arises from or relates to an obligation to the Bank secured by real
property. In this case, all of the parties to this agreement must consent to submission of the Claim to arbitration. 

  

	(g)	To the extent any Claims are not arbitrated, to the extent permitted by law the Claims shall be resolved in court by a judge without a jury, except any Claims which are brought in
California state court shall be determined by judicial reference as described below. 

  

					
	 Standard Loan Agreement
	 	11	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	(h)	Any Claim which is not arbitrated and which is brought in California state court will be resolved by a general reference to a referee (or a panel of referees) as provided in
California Code of Civil Procedure Section 638. The referee (or presiding referee of the panel) shall be a retired Judge or Justice. The referee (or panel of referees) shall be selected by mutual written agreement of the parties. If the parties
do not agree, the referee shall be selected by the Presiding Judge of the Court (or his or her representative) as provided in California Code of Civil Procedure Section 638 and the following related sections. The referee shall determine all
issues in accordance with existing California law and the California rules of evidence and civil procedure. The referee shall be empowered to enter equitable as well as legal relief, provide all temporary or provisional remedies, enter equitable
orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation motions for summary judgment or summary adjudication . The award that results from the decision of the referee(s)
will be entered as a judgment in the court that appointed the referee, in accordance with the provisions of California Code of Civil Procedure Sections 644(a) and 645. The parties reserve the right to seek appellate review of any judgment or order,
including but not limited to, orders pertaining to class certification, to the same extent permitted in a court of law. 

  

	(i)	This Dispute Resolution Provision does not limit the right of any party to: (i) exercise self-help remedies, such as but not limited to, setoff; (ii) initiate judicial or
non-judicial foreclosure against any real or personal property collateral; (iii) exercise any judicial or power of sale rights, or (iv) act in a court of law to obtain an interim remedy, such as but not limited to, injunctive relief, writ
of possession or appointment of a receiver, or additional or supplementary remedies. The filing of a court action is not intended to constitute a waiver of the right of any party, including the suing party, thereafter to require submittal of the
Claim to arbitration or judicial reference. 

  

	(j)	Any arbitration, judicial reference or trial by a judge of any Claim will take place on an individual basis without resort to any form of class or representative action (the
“Class Action Waiver”). Regardless of anything else in this Dispute Resolution Provision, the validity and effect of the Class Action Waiver may be determined only by a court or referee and not by an arbitrator. The parties to this
Agreement acknowledge that the Class Action Waiver is material and essential to the arbitration of any disputes between the parties and is nonseverable from the agreement to arbitrate Claims. If the Class Action Waiver is limited, voided or found
unenforceable, then the parties’ agreement to arbitrate shall be null and void with respect to such proceeding, subject to the right to appeal the limitation or invalidation of the Class Action Waiver. The Parties acknowledge and agree that
under no circumstances will a class action be arbitrated. 

  

	(k)	By agreeing to binding arbitration or judicial reference, the parties irrevocably and voluntarily waive any right they may have to a trial by jury as permitted by law in respect of
any Claim. Furthermore, without intending in any way to limit this Dispute Resolution Provision, to the extent any Claim is not arbitrated or submitted to judicial reference, the parties irrevocably and voluntarily waive any right they may have to a
trial by jury to the extent permitted by law in respect of such Claim. This waiver of jury trial shall remain in effect even if the Class Action Waiver is limited, voided or found unenforceable. WHETHER THE CLAIM IS DECIDED BY ARBITRATION, BY
JUDICIAL REFERENCE, OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW. 

 8.5 Severability; Waivers. If any part of this Agreement is not enforceable, the rest of the Agreement may be enforced. The Bank retains all rights, even if it
makes a loan after default. If the Bank waives a default, it may enforce a later default. Any consent or waiver under this Agreement must be in writing. 
 8.6 Attorneys’ Fees. The Borrowers shall reimburse the Bank for any reasonable costs and attorneys’ fees incurred by the Bank in connection with the enforcement or preservation of any rights or remedies under this Agreement
and any other documents executed in connection with this Agreement, and in connection with any amendment, waiver, “workout” or restructuring under this Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing party is
entitled to recover costs and reasonable attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or against the Borrowers under the
Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related to the preservation, protection, or enforcement of any rights
of the Bank in such a case. As used in this paragraph, “attorneys’ fees” includes the allocated costs of the Bank’s in-house counsel. 
  

					
	 Standard Loan Agreement
	 	12	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	8.7	Joint and Several Liability. This paragraph shall apply if two or more Borrowers sign this agreement: 

  

	(a)	Each Borrower agrees that it is jointly and severally liable to the Bank for the payment of all obligations arising under this Agreement, and that such liability is independent of
the obligations of the other Borrower(s). Each obligation, promise, covenant, representation and warranty in this Agreement shall be deemed to have been made by, and be binding upon, each Borrower, unless this Agreement expressly provides otherwise.
The Bank may bring an action against any Borrower, whether an action is brought against the other Borrower(s). 

  

	(b)	Each Borrower agrees that any release which may be given by the Bank to the other Borrower(s) or any guarantor will not release such Borrower from its obligations under this
Agreement. 

  

	(c)	Each Borrower waives any right to assert against the Bank any defense, setoff, counterclaim, or claims which such Borrower may have against the other Borrower(s) or any other party
liable to the Bank for the obligations of the Borrowers under this Agreement. 

  

	(d)	Each Borrower waives any defense by reason of any other Borrower’s or any other person’s defense, disability, or release from liability. The Bank can exercise its rights
against each Borrower even if any other Borrower or any other person no longer is liable because of a statute of limitations or for other reasons. 

  

	(e)	Each Borrower agrees that it is solely responsible for keeping itself informed as to the financial condition of the other Borrower(s) and of all circumstances which bear upon the
risk of nonpayment. Each Borrower waives any right it may have to require the Bank to disclose to such Borrower any information which the Bank may now or hereafter acquire concerning the financial condition of the other Borrower(s).

  

	(f)	Each Borrower waives all rights to notices of default or nonperformance by any other Borrower under this Agreement. Each Borrower further waives all rights to notices of the
existence or the creation of new indebtedness by any other Borrower and all rights to any other notices to any party liable on any of the credit extended under this Agreement. 

  

	(g)	The Borrowers represent and warrant to the Bank that each will derive benefit, directly and indirectly, from the collective administration and availability of credit under this
Agreement. The Borrowers agree that the Bank will not be required to inquire as to the disposition by any Borrower of funds disbursed in accordance with the terms of this Agreement. 

  

	(h)	Until all obligations of the Borrowers to the Bank under this Agreement have been paid in full and any commitments of the Bank or facilities provided by the Bank under this
Agreement have been terminated, each Borrower (a) waives any right of subrogation, reimbursement, indemnification and contribution (contractual, statutory or otherwise), including without limitation, any claim or right of subrogation under the
Bankruptcy Code (Title 11, United States Code) or any successor statute, which such Borrower may now or hereafter have against any other Borrower with respect to the indebtedness incurred under this Agreement; (b) waives any right to enforce
any remedy which the Bank now has or may hereafter have against any other Borrower, and waives any benefit of, and any right to participate in, any security now or hereafter held by the Bank. 

  

	(i)	Each Borrower waives any right to require the Bank to proceed against any other Borrower or any other person; proceed against or exhaust any security; or pursue any other remedy.
Further, each Borrower consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of the Borrowers under this Agreement or which, but for this provision, might operate as a discharge of the
Borrowers. 

 8.8 Individual Liability. If any Borrower is a partnership, the Bank may proceed against the business and non-business
property of each general partner of such Borrower in enforcing this Agreement and other agreements relating to this loan. 
 8.9 One Agreement. This
Agreement and any related security or other agreements required by this Agreement, collectively: 
  

	(a)	represent the sum of the understandings and agreements between the Bank and the Borrowers concerning this credit; 

  

	(b)	replace any prior oral or written agreements between the Bank and the Borrowers concerning this credit; and 

  

					
	 Standard Loan Agreement
	 	13	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

	(c)	are intended by the Bank and the Borrowers as the final, complete and exclusive statement of the terms agreed to by them. 

 In the event of any conflict between this Agreement and any other agreements required by this Agreement, this Agreement will prevail. Any reference in any related
document to a “promissory note” or a “note” executed by the Borrowers and dated as of the date of this Agreement shall be deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or restated.

 8.10 Indemnification. The Borrowers will indemnify and hold the Bank harmless from any loss, liability, damages, judgments, and costs of any kind
relating to or arising directly or indirectly out of (a) this Agreement or any document required hereunder, (b) any credit extended or committed by the Bank to the Borrowers hereunder, and (c) any litigation or proceeding related to
or arising out of this Agreement, any such document, or any such credit. This indemnity includes but is not limited to attorneys’ fees (including the allocated cost of in-house counsel). This indemnity extends to the Bank, its parent,
subsidiaries and all of their directors, officers, employees, agents, successors, attorneys, and assigns. This indemnity will survive repayment of the Borrowers’ obligations to the Bank. All sums due to the Bank hereunder shall be obligations
of the Borrowers, due and payable immediately without demand. 
 8.11 Notices. Unless otherwise provided in this Agreement or in another agreement
between the Bank and the Borrowers, all notices required under this Agreement shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of this Agreement, or sent by
facsimile to the fax numbers listed on the signature page, or to such other addresses as the Bank and the Borrowers may specify from time to time in writing. Notices and other communications shall be effective (i) if mailed, upon the earlier of
receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, (ii) if telecopied, when transmitted, or (iii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram), when
delivered. 
 8.12 Headings. Article and paragraph headings are for reference only and shall not affect the interpretation or meaning of any
provisions of this Agreement. 
 8.13 Counterparts. This Agreement may be executed in as many counterparts as necessary or convenient, and by the
different parties on separate counterparts each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same agreement. 
 8.14 Prior Agreement Superseded. This Agreement supersedes the Loan Agreement entered into as of January 28, 2005, between the Bank and the Borrowers, and any credit outstanding thereunder shall be deemed
to be outstanding under this Agreement. 
  

					
	 Standard Loan Agreement
	 	14	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

									
		 		 	This Agreement is executed as of the date stated at the top of the first page.
			
	 Borrower:
	 		 	 Bank:

			
	 Ambassadors International, Inc.
	 		 	 Bank of America, N.A.

					
	 By:
	 	 /s/ Brian R. Schaefgen
	 		 	 By:
	 	 /s/ David Surch

		 	 Brian R. Schaefgen, Chief Financial Officer
	 		 		 	David Surch, Senior Vice President and Credit Products Senior Manager
					
	 By:
	 	 /s/ Laura L. Tuthill
	 		 		 	
		 	 Laura L. Tuthill, Vice President
 and Corporate Controller
	 		 		 	
			
	 Borrower:
	 		 	
			
	 Ambassadors Marine Group, LLC
	 		 	
					
	 By:
	 	 Ambassadors International, Inc., Member
	 		 		 	
					
	 By:
	 	 /s/ Brian R. Schaefgen
	 		 		 	
		 	 Brian R. Schaefgen, Chief Financial Officer,
 Treasurer
and Secretary
	 		 		 	
			
	 Borrower:
	 		 	
			
	 Ambassadors, LLC
	 		 	
					
	 By:
	 	 Ambassadors International, Inc., Member
	 		 		 	
					
		 	 /s/ Brian R. Schaefgen
	 		 		 	
		 	By: Brian R. Schaefgen, Chief Financial Officer, Treasurer and Secretary	 		 		 	
			
	 Borrower:
	 		 	
			
	 Ambassadors Cruise Group, LLC
	 		 	
					
	 By:
	 	 Ambassadors International, Inc., Member
	 		 		 	
					
		 	 /s/ Brian R. Schaefgen
	 		 		 	
		 	By: Brian R. Schaefgen, Chief Financial Officer, Treasurer and Secretary	 		 		 	

  

					
	 Standard Loan Agreement
	 	15	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  

									
	 Borrower:
	 		 	
			
	 Cypress Reinsurance, Ltd.
	 		 	
					
		 	/s/ Joseph J. Ueberroth	 		 		 	
		 	 By: Joseph J. Ueberroth, President
	 		 		 	
					
		 	 /s/ Brian R. Schaefgen
	 		 		 	
		 	 By: Brian R. Schaefgen, Vice President, Chief Financial Officer and Secretary
	 		 		 	

  

			
	 Address where notices to Ambassadors International, Inc.
 are to be sent:
	 	Address where notices to the Bank are to be sent:
		
	 1071 Camelback Street
 Newport Beach, CA
92660
	 	 Pasadena – Attn: Notice Desk
 CA9-702-05-71
 101 S. Marengo Avenue, 5th Floor
 Pasadena, CA 91101-2428

		
	Telephone: (949) 759-5900	 	
		
	 Address where notices to Ambassadors Marine Group,
 LLC
are to be sent:
	 	
		
	 1071 Camelback Street
 Newport Beach, CA
92660
	 	
		
	Address where notices to Ambassadors, LLC are to be sent:	 	
		
	 1071 Camelback Street
 Newport Beach, CA
92660
	 	
		
	 Address where notices to Ambassadors Cruise Group, LLC
 are to be sent:
	 	
		
	 1071 Camelback Street
 Newport Beach, CA
92660
	 	
		
	 Address where notices to Cypress Reinsurance, Ltd. are to
 be sent:
	 	
		
	 1071 Camelback Street
 Newport Beach, CA
92660
	 	

  

					
	 Standard Loan Agreement
	 	16	 	Revised 2/2005

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
ARE DENOTED BY A TRIPLE ASTERISK (***). THE CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
  
 Affiliate Sharing Notice. Notice to Individual Borrowers, Guarantors and Pledgors
(“Obligors”): From time to time Bank of America, N.A. (the “Bank”) may share information about the Obligor’s experience with Bank of America Corporation (or any successor company) and its subsidiaries and affiliated
companies (the “Affiliates”). The Bank may also share with the Affiliates credit-related information contained in any applications, from credit reports and information it may obtain about the Obligor from outside sources. If the Obligor is
an individual, the Obligor may instruct the Bank not to share this information with the Affiliates. The Obligor can make this election by (1) calling the Bank at 1.888.341.5000, (2) visiting the Bank online at www.bankofamerica.com,
selecting “Privacy & Security,” and then selecting “Set Your Privacy Preferences,” or (3) contacting the Obligor’s client manager or local banking center. To help the Bank complete the Obligor’s request,
the Obligor should include the Obligor’s name, address, phone number, account number(s) and social security number. If the Obligor makes this election, certain products or services may not be made available to the Obligor. This request will
apply to information from applications, consumer reports and other outside sources only, and may take six to eight weeks to be fully effective. Through the normal course of doing business, including servicing the Obligor’s accounts and better
serving the Obligor’s financial needs, the Bank will continue to share transaction and account experience information, as well as other general information among the Affiliates. The Bank may change this policy from time to time. Visit our
website, www.bankofamerica.com, for the latest policy. 
 USA Patriot Act Notice. Federal law requires all financial institutions to obtain,
verify and record information that identifies each person who opens an account or obtains a loan. The Bank will ask for the Borrower’s legal name, address, tax ID number or social security number and other identifying information. The Bank may
also ask for additional information or documentation or take other actions reasonably necessary to verify the identity of the Borrower, guarantors or other related persons. 
  

					
	 Standard Loan Agreement
	 	17	 	Revised 2/2005Master Lease Agreement

 Exhibit 10.1 
 MASTER LEASE AGREEMENT 
 BETWEEN 
 HEALTH CARE REIT, INC. 
 AND 
 LCI HEALTHCARE HOLDINGS, INC. 
 September 1, 2006 

 TABLE OF CONTENTS 
  

					
	 SECTION
	  	PAGE
	 ARTICLE 1:
	  	LEASED PROPERTY, TERM AND DEFINITIONS	  	1
	 1.1
	  	Leased Property	  	1
	 1.2
	  	Indivisible Lease	  	1
	 1.3
	  	Term	  	2
	 1.4
	  	Definitions	  	2
	 1.5
	  	Landlord as Agent	  	13
			
	 ARTICLE 2:
	  	RENT	  	13
	 2.1
	  	Construction Rent	  	13
	 2.2
	  	Base Rent	  	13
	 2.3
	  	Base Rent Adjustments	  	13
		  	2.3.1    Annual Increase of Base Rent	  	13
		  	2.3.2    Additional Landlord Payments	  	14
	 2.4
	  	Additional Rent	  	14
	 2.5
	  	Place of Payment of Rent	  	14
	 2.6
	  	Net Lease	  	14
	 2.7
	  	No Termination, Abatement, Etc.	  	14
	 2.8
	  	Transaction Fee	  	15
			
	 ARTICLE 3:
	  	IMPOSITIONS AND UTILITIES	  	15
	 3.1
	  	Payment of Impositions	  	15
	 3.2
	  	Definition of Impositions	  	16
	 3.3
	  	Escrow of Impositions	  	17
	 3.4
	  	Utilities	  	17
	 3.5
	  	Discontinuance of Utilities	  	17
	 3.6
	  	Business Expenses	  	17
	 3.7
	  	Permitted Contests	  	17
			
	 ARTICLE 4:
	  	INSURANCE	  	18
	 4.1
	  	Property Insurance	  	18
	 4.2
	  	Liability Insurance	  	19
	 4.3
	  	Builder’s Risk Insurance	  	19
	 4.4
	  	Insurance Requirements	  	20
	 4.5
	  	Replacement Value	  	20
	 4.6
	  	Blanket Policy	  	21
	 4.7
	  	No Separate Insurance	  	21
	 4.8
	  	Waiver of Subrogation	  	21
	 4.9
	  	Mortgages	  	21
	 4.10
	  	Escrows	  	22
			
	 ARTICLE 5:
	  	INDEMNITY	  	22
	 5.1
	  	Tenant’s Indemnification	  	22

  

 (i) 

					
		  	5.1.1    Notice of Claim	  	22
		  	5.1.2    Survival of Covenants	  	22
		  	5.1.3    Reimbursement of Expenses	  	23
	 5.2
	  	Environmental Indemnity; Audits	  	23
	 5.3
	  	Limitation of Landlord’s Liability	  	23
			
	 ARTICLE 6:
	  	USE AND ACCEPTANCE OF PREMISES	  	24
	 6.1
	  	Use of Leased Property	  	24
	 6.2
	  	Acceptance of Leased Property	  	24
	 6.3
	  	Conditions of Use and Occupancy	  	24
			
	 ARTICLE 7:
	  	MAINTENANCE AND MECHANICS’ LIENS	  	25
	 7.1
	  	Maintenance	  	25
	 7.2
	  	Required Alterations	  	25
	 7.3
	  	Mechanic’s Liens	  	25
	 7.4
	  	Replacements of Fixtures and Landlord’s Personal Property	  	26
			
	 ARTICLE 8:
	  	DEFAULTS AND REMEDIES	  	26
	 8.1
	  	Events of Default	  	26
	 8.2
	  	Remedies	  	28
	 8.3
	  	Right of Setoff	  	31
	 8.4
	  	Performance of Tenant’s Covenants	  	31
	 8.5
	  	Late Payment Charge	  	31
	 8.6
	  	Default Rent	  	32
	 8.7
	  	Attorneys’ Fees	  	32
	 8.8
	  	Escrows and Application of Payments	  	32
	 8.9
	  	Remedies Cumulative	  	32
	 8.10
	  	Waivers	  	32
	 8.11
	  	Obligations Under the Bankruptcy Code	  	33
			
	 ARTICLE 9:
	  	DAMAGE AND DESTRUCTION	  	33
	 9.1
	  	Notice of Casualty	  	33
	 9.2
	  	Substantial Destruction	  	33
	 9.3
	  	Partial Destruction	  	35
	 9.4
	  	Restoration	  	35
	 9.5
	  	Insufficient Proceeds	  	35
	 9.6
	  	Not Trust Funds	  	36
	 9.7
	  	Landlord’s Inspection	  	36
	 9.8
	  	Landlord’s Costs	  	36
	 9.9
	  	No Rent Abatement	  	36
			
	 ARTICLE 10:
	  	CONDEMNATION	  	36
	 10.1
	  	Total Taking	  	36
	 10.2
	  	Partial Taking	  	37
	 10.3
	  	Condemnation Proceeds Not Trust Funds	  	37

  

 (ii) 

					
	 ARTICLE 11:
	  	TENANT’S PROPERTY	  	37
	 11.1
	  	Tenant’s Property	  	37
	 11.2
	  	Requirements for Tenant’s Property	  	38
			
	 ARTICLE 12:
	  	RENEWAL OPTIONS	  	39
	 12.1
	  	Renewal Options	  	39
	 12.2
	  	Effect of Renewal	  	39
			
	 ARTICLE 13:
	  	OPTION TO PURCHASE	  	40
	 13.1
	  	Option to Purchase	  	40
	 13.2
	  	Option Price	  	40
	 13.3
	  	Fair Market Value	  	41
	 13.4
	  	Closing	  	42
	 13.5
	  	Failure to Close Option	  	42
	 13.6
	  	Failure to Exercise Option to Purchase and Renewal Option	  	42
			
	 ARTICLE 14:
	  	NEGATIVE COVENANTS	  	43
	 14.1
	  	No Debt	  	43
	 14.2
	  	No Liens	  	43
	 14.3
	  	No Guaranties	  	43
	 14.4
	  	No Transfer	  	43
	 14.5
	  	No Dissolution	  	43
	 14.6
	  	No Change in Operation	  	43
	 14.7
	  	No Investments	  	43
	 14.8
	  	Contracts	  	44
	 14.9
	  	Subordination of Payments to Affiliates	  	44
	 14.10
	  	Change of Location or Name	  	44
			
	 ARTICLE 15:
	  	AFFIRMATIVE COVENANTS	  	44
	 15.1
	  	Perform Obligations	  	44
	 15.2
	  	Proceedings to Enjoin or Prevent Construction	  	44
	 15.3
	  	Documents and Information	  	44
		  	15.3.1    Furnish Documents	  	44
		  	15.3.2    Furnish Information	  	45
		  	15.3.3    Further Assurances and Information	  	45
		  	15.3.4    Material Communications	  	45
		  	15.3.5    Requirements for Financial Statements	  	45
	 15.4
	  	Compliance With Laws	  	46
	 15.5
	  	Broker’s Commission	  	46
	 15.6
	  	Existence and Change in Ownership	  	46
	 15.7
	  	Financial Covenants	  	46
		  	15.7.1    Definitions	  	46
		  	15.7.2    Coverage Ratio	  	47
		  	15.7.3    Net Worth	  	47
		  	15.7.4    Current Ratio	  	47
	 15.8
	  	Facility Licensure and Certification	  	47
	 15.9
	  	Transfer of License and Facility Operations	  	47

  

 (iii) 

					
		  	15.9.1    Licensure	  	47
		  	15.9.2    Facility Operations	  	48
	 15.10
	  	Bed Operating Rights	  	48
	 15.11
	  	Power of Attorney	  	48
	 15.12
	  	Project Submissions	  	49
			
	 ARTICLE 16:
	  	ALTERATIONS, CAPITAL IMPROVEMENTS, AND SIGNS	  	49
	 16.1
	  	Prohibition on Alterations and Improvements	  	49
	 16.2
	  	Approval of Alterations	  	49
	 16.3
	  	Permitted Alterations	  	49
	 16.4
	  	Requirements for Permitted Alterations	  	49
	 16.5
	  	Ownership and Removal of Permitted Alterations	  	50
	 16.6
	  	Minimum Qualified Capital Expenditures	  	50
	 16.7
	  	Signs	  	51
			
	 ARTICLE 17:
	  	RESERVED	  	51
			
	 ARTICLE 18:
	  	ASSIGNMENT AND SALE OF LEASED PROPERTY	  	51
	 18.1
	  	Prohibition on Assignment and Subletting	  	51
	 18.2
	  	Requests for Landlord’s Consent to Assignment, Sublease or Management Agreement	  	51
	 18.3
	  	Sale of Leased Property	  	52
	 18.4
	  	Assignment by Landlord	  	53
			
	 ARTICLE 19:
	  	HOLDOVER AND SURRENDER	  	53
	 19.1
	  	Holding Over	  	53
	 19.2
	  	Surrender	  	53
	 19.3
	  	Indemnity	  	53
			
	 ARTICLE 20:
	  	LETTER OF CREDIT	  	54
	 20.1
	  	Terms of Letter of Credit	  	54
	 20.2
	  	Replacement Letter of Credit	  	54
	 20.3
	  	Draws	  	54
	 20.4
	  	Partial Draws	  	55
	 20.5
	  	Substitute Letter of Credit	  	55
	 20.6
	  	Retention of Letter of Credit	  	55
	 20.7
	  	Working Capital Letter of Credit	  	55
			
	 ARTICLE 21:
	  	QUIET ENJOYMENT, SUBORDINATION, ATTORNMENT AND ESTOPPEL CERTIFICATES	  	56
	 21.1
	  	Quiet Enjoyment	  	56
	 21.2
	  	Subordination	  	56
	 21.3
	  	Attornment	  	56
	 21.4
	  	Estoppel Certificates	  	57
			
	 ARTICLE 22:
	  	CONTINGENT PAYMENTS	  	57
	 22.1
	  	Contingent Payments	  	57

  

 (iv) 

					
	 22.2
	  	Contingent Payments for Capital Expenditures	  	58
		  	22.2.1    Conditions	  	58
		  	22.2.2    No Commitment	  	58
	 22.3
	  	Contingent Payments for Project Improvements	  	58
		  	22.3.1    Conditions	  	58
		  	22.3.2    No Commitment	  	58
	 22.4
	  	Contingent Payments for Development Projects	  	58
		  	22.4.1    Conditions	  	58
		  	22.4.2    Contingent Payments for the Meridian Facility	  	58
			
	 ARTICLE 23:
	  	SECURITY INTEREST	  	58
	 23.1
	  	Collateral	  	58
	 23.2
	  	Additional Documents	  	59
	 23.3
	  	Notice of Sale	  	59
	 23.4
	  	Recharacterization	  	60
			
	 ARTICLE 24:
	  	MISCELLANEOUS	  	60
	 24.1
	  	Notices	  	60
	 24.2
	  	Advertisement of Leased Property	  	60
	 24.3
	  	Entire Agreement	  	60
	 24.4
	  	Severability	  	60
	 24.5
	  	Captions and Headings	  	60
	 24.6
	  	Governing Law	  	60
	 24.7
	  	Memorandum of Lease	  	61
	 24.8
	  	Waiver	  	61
	 24.9
	  	Binding Effect	  	61
	 24.10
	  	No Offer	  	61
	 24.11
	  	Modification	  	61
	 24.12
	  	Landlord’s Modification	  	61
	 24.13
	  	No Merger	  	62
	 24.14
	  	Laches	  	62
	 24.15
	  	Limitation on Tenant’s Recourse	  	62
	 24.16
	  	Construction of Lease	  	62
	 24.17
	  	Counterparts	  	62
	 24.18
	  	Landlord’s Consent	  	62
	 24.19
	  	Custody of Escrow Funds	  	62
	 24.20
	  	Landlord’s Status as a REIT	  	62
	 24.21
	  	Exhibits	  	62
	 24.22
	  	WAIVER OF JURY TRIAL	  	62
	 24.23
	  	CONSENT TO JURISDICTION	  	63
	 24.24
	  	Attorney’s Fees and Expenses	  	63
	 24.25
	  	Survival	  	64
	 24.26
	  	Time	  	64
	 24.27
	  	Subtenant	  	64

  

 (v) 

 MASTER LEASE AGREEMENT 
 This MASTER LEASE AGREEMENT (“Lease”) is made effective as of August 31, 2006 (the “Effective Date”) between HEALTH CARE
REIT, INC., a corporation organized under the laws of the State of Delaware (“HCN” and a “Landlord” as further defined in §1.4 below), having its principal office located at One SeaGate, Suite 1500, P.O.
Box 1475, Toledo, Ohio 43603-1475, and LCI HEALTHCARE HOLDINGS, INC., a corporation organized under the laws of the State of Delaware (“Tenant”), having its chief executive office located at 5560 Tennyson Parkway,
Plano, Texas 75024. 
 RECITALS 
 A. As of the date hereof, Landlord acquired the Leased Property (defined below) and paid the initial Acquisition Payment (defined below) towards the purchase price for the Leased Property. The amount paid by Tenant for the acquisition costs
of the Leased Property, if any, shall be considered Tenant’s contribution. 
 B. Landlord desires to lease the Leased Property to Tenant
and Tenant desires to lease the Leased Property from Landlord upon the terms set forth in this Lease. 
 NOW, THEREFORE, Landlord and Tenant
agree as follows: 
 ARTICLE 1: LEASED PROPERTY, TERM AND DEFINITIONS 
 1.1 Leased Property. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Leased Property, subject, however, to the
Permitted Exceptions and subject to the terms and conditions of this Lease. 
 1.2 Indivisible Lease. This Lease constitutes one
indivisible lease of the entire Leased Property. The Leased Property constitutes one economic unit and the Base Rent and all other provisions have been negotiated and agreed to based on a lease of all of the Leased Property as a single, composite,
inseparable transaction. This Lease would not have been made on these terms if it was not a single indivisible lease. Except as expressly provided herein for specific, isolated purposes (and then only to the extent expressly otherwise stated), all
provisions of this Lease shall apply equally and uniformly to all the Leased Property as one unit and any Event of Default under this Lease is an Event of Default as to the entire Leased Property. The parties intend that the provisions of this Lease
shall at all times be construed, interpreted and applied so as to carry out their mutual objective to create a single indivisible lease of all the Leased Property and, in particular but without limitation, that for purposes of any assumption,
rejection or assignment of this Lease under the Bankruptcy Code, this is one indivisible and nonseverable lease and executory contract dealing with one legal and economic unit which must be assumed, rejected or assigned as a whole with respect to
all (and only all) the Leased Property covered hereby. The parties agree that the existence of more than one Landlord under this Lease does not affect the indivisible, nonseverable nature of this Lease. The parties may amend this Lease from time to
time to include one or more additional Facility Properties as part of the Leased Property and such future addition to the Leased Property shall not in any way change the indivisible and nonseverable nature of this Lease and all of the foregoing
provisions shall continue to apply in full force. 

 1.3 Term. The initial term (“Initial Term”) of this Lease commences on the Effective
Date and expires at 12:00 Midnight Eastern Time on the day before the 15th anniversary of the Fixed Term Commencement Date (the “Expiration Date”); provided, however, that [i] Tenant has one or more options to renew the Lease
pursuant to Article 12, and [ii] that any addition to the Leased Property pursuant to amendment of this Lease shall extend the Initial Term so that the Initial Term shall expire on the day before the 15th anniversary of the Amendment Fixed Term Commencement Date as set forth in such amendment. In addition, if Landlord or any Landlord Affiliate
enters into a lease transaction with Tenant or any Affiliate, the Initial Term shall automatically be extended to be coterminous with the most recently closed lease transaction. 
 1.4 Definitions. Except as otherwise expressly provided, [i] the terms defined in this section have the meanings assigned to them in this
section and include the plural as well as the singular; [ii] all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles as of the time applicable; and
[iii] the words “herein”, “hereof” and “hereunder” and similar words refer to this Lease as a whole and not to any particular section. 
 “Acquisition Payment” means any payment by Landlord to acquire Leased Property. 
 “ADA”
means the federal statute entitled Americans with Disabilities Act, 42 U.S.C. §12101, et seq. 
 “Additional
Rent” has the meaning set forth in §2.4. 
 “Affiliate” means any person, corporation, partnership, limited liability
company, trust, or other legal entity that, directly or indirectly, controls, or is controlled by, or is under common control with Tenant or Guarantor. “Control” (and the correlative meanings of the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity. “Affiliate” includes, without limitation, each Entity
Guarantor. 
 “Affiliate Facility” means each facility that is leased under an Affiliate Lease, whether now or hereafter existing.

 “Affiliate Lease” means each lease now or hereafter made between Landlord or any Landlord Affiliate and Tenant or any Affiliate
(except this Lease), as amended, modified, extended or renewed from time to time. 
 “Affiliate Tenant” means each tenant under an
Affiliate Lease. 
 “Amendment Commencement Date” means the Amendment Effective Date if such date is the first day of a month, and
if it is not, the first day of the first month following the Amendment Effective Date. 
  

 (2) 

 “Amendment Effective Date” means the Amendment Effective Date set forth in the introductory
paragraph of an amendment to this Lease. 
 “Amendment Fixed Term Commencement Date” means the Fixed Term Commencement Date for the
most recent Development Project to be completed. 
 “Annual Budget” means such entity’s projection of its financial statement
for the next fiscal year (or the 12-month rolling forward period, if applicable), which shall include the balance sheet, statement of income, statement of cash flows, statement of shareholders’ equity and statement of capital expenditures for
the applicable period. 
 “Annual Facility Budget” means Tenant’s projection of the Facility Financial Statement for the next
fiscal year (or the 12-month rolling forward period, if applicable). 
 “Annual Financial Statements” means [i] an audited
balance sheet, statement of income, and statement of cash flows for the most recent fiscal year provided by LifeCare Holdings on a consolidated basis, to include all Affiliates including, but not limited to, Company, Tenant and Guarantor;
[ii] for Tenant and Subtenant an unaudited balance sheet, statement of income, and statement of cash flows for the most recent fiscal year on an individual facility and consolidated basis; [iii] for each Facility, an unaudited Facility
Financial Statement for the most recent fiscal year; and [iii] for each Entity Guarantor, an unaudited balance sheet and statement of income for the most recent fiscal year. 
 “Annual Rent Increase” means the sum of the product of the Investment Amount as of the Rent Adjustment Date times the applicable Increaser
Rate. 
 “Average Daily Census” means the number determined by dividing the total resident days for a Facility during a specific
month by the actual number of days contained in that month. 
 “Bankruptcy Code” means the United States Bankruptcy Code set forth
in 11 U.S.C. §101, et seq., as amended from time to time. 
 “Base Rent” has the meaning set forth in
§2.1, as increased from time to time pursuant to §2.2. 
 “Business Day” means any day other than a Saturday, Sunday, or
national holiday. 
 “C of O” means a certificate of occupancy issued for a Development Project or for Project Improvements.

 “C of O Date” means the date of the issuance of a C of O. 
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time. 
  

 (3) 

 “Closing” means, for each Facility, the closing with Tenant of the lease for the Leased
Property relating to such Facility. 
 “Collateral” has the meaning set forth in §23.1. 
 “Commencement Date” means the Effective Date if such date is the first day of a month, and if it is not, the first day of the first month
following the Effective Date. 
 “Company” means Lifecare Management Services, L.L.C., a limited liability company organized under
the laws of the Commonwealth of Louisiana. 
 “Construction Commencement Date” means the date by which construction of a
Development Project must commence. The Construction Commencement Date for each Development Project is set forth in §22.4. 
 “Construction Term” means, with respect to each Development Project, the period of time commencing on the date that Landlord acquires title to the Land for a Development Project and ending on the C of O Date. 
 “Contingent Payment” means any payment by Landlord pursuant to the terms of this Lease excluding Acquisition Payments. 
 “Contingent Payment Request” means Tenant’s written request for a Contingent Payment on the form attached as Exhibit H. 

“CPI” means the Consumer Price Index for Urban Wage Earners and Clerical Workers, U.S. Cities Average, All Items (1982-84 = 100)
published by the Bureau of Labor Statistics of the U.S. Department of Labor; provided that if compilation of the CPI in its present form and calculated on its present basis is discontinued or transferred to any other governmental department or
bureau, then the index most nearly the same as the CPI published by the Bureau of Labor Statistics shall be used. If there is no such similar index, a substitute index which is then generally recognized as being similar to the CPI shall be used,
such substitute index to be reasonably selected by Landlord. 
 “Default Rent” has the meaning set forth in §8.6. 

“Development Project” means the construction of a new Facility for which Contingent Payments are made by Landlord pursuant to §22.4.

 “Development Project Budget” means the budget of total costs of acquiring, developing, construction, furnishing and equipping a
Development Project Facility. The Development Project Budget is attached as Exhibit J. 
 “Development Project Contingent Payment
Schedule” means the schedule attached as Exhibit K setting forth Tenant’s estimate of the dates and amounts of the Contingent Payments required for a Development Project. 
  

 (4) 

 “Disbursing Agreement” means any Disbursing Agreement between Landlord and Tenant setting forth
the terms and conditions pursuant to which Landlord shall make Contingent Payments to Tenant for certain Project Improvements or Development Projects and any amendments thereto or substitutions and replacements therefor. 
 “Effective Date” means the date of this Lease. 
 “Entity Guarantor” means each Subtenant, individually and collectively. 
 “Environmental
Laws” means all federal, state, and local laws, ordinances and policies the purpose of which is to protect human health and the environment, as amended from time to time, including, but not limited to, [i] CERCLA; [ii] the Resource
Conservation and Recovery Act; [iii] the Hazardous Materials Transportation Act; [iv] the Clean Air Act; [v] Clean Water Act; [vi] the Toxic Substances Control Act; [vii] the Occupational Safety and Health Act;
[viii] the Safe Drinking Water Act; and [ix] analogous state laws and regulations. 
 “Event of Default” has the meaning
set forth in §8.1. 
 “Expiration Date” has the meaning set forth in §1.3. 
 “Facility” means each facility located or to be constructed on a portion of the Land, including the Facility Property associated with such
Facility. References in this Lease to “the Facility” shall mean each Facility individually unless expressly stated otherwise. 
 “Facility Financial Statement” means an unaudited financial statement for each Facility which shall include the balance sheet, statement of income, statement of cash flows, statement of shareholders’ equity, occupancy census
data (including payor mix), statement of capital expenditures and a comparison of the actual financial data versus the Annual Facility Budget for the applicable period. 
 “Facility Name” means the name under which a Facility has done or will do business during the Term. The Facility Name in use by each Facility on the Effective Date (or upon commencement of operations in the
case of a Development Project) is set forth on the attached Exhibit C. Exhibit C shall be amended for each Development Project that does not have an identified Facility Name on the date of the Lease. Further, Tenant will have the right to
change the Facility Name from time to time during the Term by giving written notice to Landlord 30 days prior to a change in the Facility Name. 
 “Facility Property” means the portion of the Land on which a Facility is located or will be constructed, the legal description of which is set forth beneath the applicable Facility Name on Exhibit A,
the Improvements on such portion of the Land, the Related Rights with respect to such portion of the Land, and Landlord’s Personal Property with respect to such Facility. 
 “Facility State” means the State in which a respective Facility is located or will be constructed. 
  

 (5) 

 “Facility States” means, collectively, the States in which the Leased Property is located or
will be constructed. 
 “Facility Uses” means the uses relating to the operation of a Facility as an acute care hospital and
operating the number of beds and units set forth on Exhibit C with respect to such Facility. Beginning no later than 12 months after the issuance of a C of O for a Facility, a Facility receiving reimbursement by Medicare as a long term
acute care hospital and operating the number of beds and units set forth on Exhibit C with respect to such Facility. 
 “Fair
Market Value” has the meaning set forth in §13.3. 
 “Fixed Term” means, with respect to each Development Project, the
period of time commencing on the day following the completion of the Construction Term and ending on the last day of the Initial Term. 
 “Fixed Term Commencement Date” means the first day of the first month following the completion of the Construction Term for the respective Development Project. 
 “Fixtures” means all permanently affixed equipment, machinery, fixtures and other items of real and/or personal property (excluding
Landlord’s Personal Property and Tenant’s Property), including all components thereof, now and hereafter located in, on or used in connection with, and permanently affixed to or incorporated into the Improvements, including, without
limitation, all furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating, refrigerating, incineration, air and water pollution control, waste disposal, air-cooling and air-conditioning systems and apparatus,
sprinkler systems and fire and theft protection equipment, built-in oxygen and vacuum systems, towers and other devices for the transmission of radio, television and other signals, all of which, to the greatest extent permitted by law, are hereby
deemed by the parties hereto to constitute real estate, together with all replacements, modifications, alterations and additions thereto. 
 “Government Authorizations” means all permits, licenses, approvals, consents, and authorizations required to comply with all Legal Requirements, including, but not limited to, [i] zoning permits, variances, exceptions,
special use permits, conditional use permits, and consents; [ii] the permits, licenses, provider agreements and approvals required for licensure and operation of each Facility in accordance with its respective Facility Uses and certified as a
provider under the federal Medicare and state Medicaid programs; [iii] environmental, ecological, coastal, wetlands, air, and water permits, licenses, and consents; [iv] curb cut, subdivision, land use, and planning permits, licenses,
approvals and consents; [v] building, sign, fire, health, and safety permits, licenses, approvals, and consents; and [vi] architectural reviews, approvals, and consents required under restrictive covenants. 
 “Guarantor” means each Entity Guarantor, individually and collectively. 
 “Guaranty” means each Unconditional and Continuing Lease Guaranty entered into by a Guarantor to guarantee payment and performance of the
Obligor Group Obligations and any amendments thereto or substitutions or replacements therefor. 
  

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 “Hazardous Materials” means any substance [i] the presence of which poses a hazard to the
health or safety of persons on or about the Land, including, but not limited to, asbestos containing materials; [ii] which requires removal or remediation under any Environmental Law, including, without limitation, any substance which is toxic,
explosive, flammable, radioactive, or otherwise hazardous; or [iii] which is regulated under or classified under any Environmental Law as hazardous or toxic, including, but not limited to, any substance within the meaning of “hazardous
substance”, “hazardous material”, “hazardous waste”, “toxic substance”, “regulated substance”, “solid waste” or “pollutant” as defined in any Environmental Law. 
 “HCN” means Health Care REIT, Inc., a corporation organized under the laws of the State of Delaware. 
 “HIPDB” means the Healthcare Integrity and Protection Data Bank maintained by the Department of Health and Human Services. 
 “Impositions” has the meaning set forth in §3.2. 
 “Improvements” means all buildings, structures, Fixtures and other improvements of every kind on any portion of the Land, including, but not limited to, alleys, sidewalks, utility pipes, conduits and lines
(on-site and off-site), parking areas and roadways appurtenant to such buildings and structures, now or hereafter situated upon any portion of the Land. 
 “Increaser Rate” means the most recent annual Medicare market basket inflation increase to the standard federal rate for long term acute care hospitals as determined by the Centers for Medicare and Medicaid
Services and as published annually in the Federal Register (or a comparable measure if the same ceases to be used), but in no event will the cumulative average exceed .25% per annum. 
 “Initial Term” has the meaning set forth in §1.3. The Initial Term consists of each Construction Term and each Fixed Term. 
 “Investment Amount” is an aggregate concept and means the sum of all Landlord Payments outstanding at the applicable time. 
 “Issuer” means a financial institution satisfactory to Landlord issuing the Letter of Credit and such Issuer’s successors and assigns. Any
“Issuer” shall have a Lace Financial Service Rating of “C+” or higher at all times throughout the Term. 
 “Land” means the real property described in Exhibit A attached hereto. 
 “Landlord” means HCN. 

“Landlord Affiliate” means any person, corporation, partnership, limited liability company, trust, or other legal entity that, directly or
indirectly, controls, or is controlled by, or is under common control with Landlord. “Control” (and the correlative meanings of the terms “controlled by” and “under common control with”) means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of such entity. 
  

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 “Landlord Payment” means any Acquisition Payment or Contingent Payment. 
 “Landlord’s Personal Property” means all Personal Property owned by Landlord on the Effective Date and located at the Facility or, in the
case of a Development Project, will be owned by Landlord and located at the Facility upon commencement of operations of the Facility, including, without limitation, all personal property listed on any bills of sale delivered to Landlord in
connection with the Facility, together with any and all replacements thereof, and all Personal Property that pursuant to the terms of this Lease becomes the property of Landlord during the Term, but expressly excluding Tenant’s Property.

 “LC Proceeds” has the meaning set forth in §20.3. 
 “Lease” means this Master Lease Agreement, as amended from time to time. 
 “Lease Documents” means this Lease and all documents executed by Landlord and Tenant relating to this Lease or the Facility. 
 “Lease Payments” means the sum of the Base Rent payments (as increased from time to time) for the applicable period. 
 “Lease Year” means each consecutive period of 365 or 366 days throughout the Term. The first Lease Year commences on the Commencement Date
and expires on the day before the first anniversary of the Commencement Date. 
 “Leased Property” means all of the Land,
Improvements, Related Rights and Landlord’s Personal Property. 
 “Legal Requirements” means all laws, regulations, rules,
orders, writs, injunctions, decrees, certificates, requirements, agreements, conditions of participation and standards of any federal, state, county, municipal or other governmental entity, administrative agency, insurance underwriting board,
architectural control board, private third-party payor, accreditation organization, or any restrictive covenants applicable to the development, construction, condition and operation of the Facility by Tenant, including, but not limited to,
[i] zoning, building, fire, health, safety, sign, and subdivision regulations and codes; [ii] certificate of need laws (if applicable); [iii] licensure to operate as each Facility in accordance with its respective Facility Uses;
[iv] Medicare and Medicaid certification requirements (if applicable); [v] the ADA; [vi] any Environmental Laws; and [vii] requirements, conditions and standards for participation in third-party payor insurance programs.

 “Letter of Credit” means an irrevocable and transferable Letter of Credit in the amount required under the Term Sheet, issued by
Issuer in favor of Landlord as security for the Lease and in form acceptable to Landlord, and any amendments thereto or replacements or substitutions therefor. 
 “LIBOR Business Day” means a Business Day on which dealings in dollar deposits are carried out in the London interbank market. 
  

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 “LIBOR Rate” means, as of any date, the rate per annum (rounded to the nearest
1/100th of one percent) quoted by the Reference Bank at approximately 11:00 a.m. London time (or as soon
thereafter as practicable) two LIBOR Business Days prior to such date as the rate at which the Reference Bank is offered dollar deposits in the London interbank market where the LIBOR and foreign currency and exchange operations of the Reference
Bank are customarily conducted, having a term of one month and in an amount comparable to the applicable Investment Amount. 
 “LifeCare
Holdings” means LifeCare Holdings, Inc., a Delaware corporation and the parent of Tenant and Company. 
 “Mandatory Completion
Date” means the date by which construction of a Development Project must be substantially completed, which date may be extended pursuant to the force majeure provisions of the Disbursing Agreement. 
 “Material Obligation” means [i] any indebtedness secured by a security interest in the accounts receivable of Tenant, Subtenant or Entity
Guarantor or any Tenant’s Property; [ii] any indebtedness or lease (other than this Lease) of Tenant, Subtenant or Guarantor or of any other party that has been guaranteed by Tenant, Subtenant or Guarantor that has an outstanding principal
balance or obligation in an amount greater than $500,000.00; [iii] any obligation to or agreement with the Issuer relating to the Letter of Credit; and [iv] any sublease of the Leased Property. 
 “Maximum Contingent Payments Amount” means the maximum amount of Contingent Payments that Landlord has committed to make for a particular
purpose pursuant to Article 22. 
 “Maximum Investment Amount” has the meaning set forth in the Term Sheet or Project Approval
Letter for a Development Project. In the case of the Meridian Facility, there is no Maximum Investment Amount 
 “Meridian Contingent
Payment Amount” means the amount of Contingent Payments that Landlord makes for the construction of the Meridian Facility as set forth on the Development Project Budget attached hereto as Exhibit J and any additional amounts required to
complete construction of the Facility (but excluding any Equipment Financing, as set forth on Exhibit J. 
 “Meridian Facility”
means the facility to be constructed in Meridian, Idaho. 
 “Net Operating Income” means the pre-tax net income of Tenant or
Subtenant plus [i] the amount of the provision for depreciation and amortization; plus [ii] the amount of the provision for interest and lease payments, if any; plus [iii] the amount of the provision for Rent payments; plus
[iv] the amount of the provision for management fees. 
 “Net Worth” has the meaning set forth in §15.7.1. 
 “Obligor Group Obligations” means all payment and performance obligations of Tenant, Subtenant and Guarantor to Landlord or any Landlord
Affiliate, including, but not 
  

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 limited to, all obligations under this Lease, any loans extended to Tenant, Subtenant or Guarantor by Landlord or any
Landlord Affiliate and all documents executed by Tenant, Subtenant or Guarantor in connection with this Lease, any loan or any other obligation. 
 “Option Price” has the meaning set forth in §13.2. 
 “Option to Purchase” has the meaning set forth in
§13.1. 
 “Organization State” means the State in which an entity is organized. 
 “Organizational Documents” means [i] for a corporation, its Articles of Incorporation certified by the Secretary of State of the
Organization State, as amended to date, and its Bylaws certified by such entity, as amended to date; [ii] for a partnership, its Partnership Agreement certified by such entity, as amended to date, and the Partnership Certificate, certified by
the appropriate authority, as amended to date; and [iii] for a limited liability company, its Articles of Organization certified by the Secretary of State of the Organization State, as amended to date, and its Operating Agreement certified by
such entity, as amended to date. 
 “Payment Amount” means the amount of any Landlord Payment. The first Landlord Payment is the
Acquisition Payment made on the Effective Date. 
 “Payment Date” means the date on which Landlord makes a Landlord Payment.

 “Periodic Financial Statements” means [i] for Tenant and Subtenant, an unaudited balance sheet and statement of income for
the most recent quarter; [ii] for the Facility, an unaudited Facility Financial Statement for the most recent month; and [iii] for each Entity Guarantor, an unaudited balance sheet and statement of income of Guarantor for the most recent
quarter. 
 “Permitted Exceptions” means all easements, liens, encumbrances, restrictions, agreements and other title matters
existing as of the Effective Date, including, without limitation, the exceptions to title set forth on Exhibit B attached hereto, and any sublease of any portion of the Leased Property made in complete accordance with Article 18.

 “Permitted Liens” means [i] liens granted to Landlord; [ii] liens customarily incurred by Tenant or Subtenant in the
ordinary course of business for items not delinquent, including mechanic’s liens and deposits and charges under workers’ compensation laws; [iii] liens for taxes and assessments not yet due and payable; [iv] any lien, charge, or
encumbrance which is being contested in good faith pursuant to this Lease; [v] the Permitted Exceptions; and [vi] purchase money financing and capitalized equipment leases for the acquisition of personal property provided, however, that
Landlord obtains a nondisturbance agreement from the purchase money lender or equipment lessor in form and substance as may be satisfactory to Landlord if the original cost of the equipment exceeds $150,000.00. 
 “Personal Property” means all machinery, equipment, furniture, furnishings, movable walls or partitions, computers (and all associated
software), trade fixtures and other personal property (but excluding consumable inventory and supplies owned by Tenant) used in connection with the Leased Property, together with all replacements and alterations thereof and additions thereto, except
items, if any, included within the definition of Fixtures or Improvements. 
  

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 “Portfolio Cash Flow” has the meaning set forth in §15.7.1. 
 “Portfolio Coverage Ratio” has the meaning set forth in §15.7.1. 
 “Pro Forma Statement” means a financial forecast for the Facility for the next five-year period (or in the case of a Development Project, the
first five-year period of operation) prepared in accordance with the standards for forecasts established by the American Institute of Certified Public Accountants. 
 “Project Approval Letter” means the letter issued by Landlord pursuant to the Term Sheet setting forth the terms for each Development Project approved by Landlord. 
 “Project Improvements” means any addition to or major renovation of a Facility for which Contingent Payments are made by Landlord pursuant to
§22.3. 
 “Purchase Notice” has the meaning set forth in §13.1. 
 “Qualified Capital Expenditures” means the expenditures capitalized on the books of Tenant or Subtenant for any of the following: replacement
of furniture, fixtures and equipment, including refrigerators, ranges, major appliances, bathroom fixtures, doors (exterior and interior), central air conditioning and heating systems (including cooling towers, water chilling units, furnaces,
boilers and fuel storage tanks) and major replacement of siding; major roof replacements, including major replacements of gutters, downspouts, eaves and soffits; major repairs and replacements of plumbing and sanitary systems; overhaul of elevator
systems; major repaving, resurfacing and sealcoating of sidewalks, parking lots and driveways; repainting of entire building exterior; but excluding major alterations, renovations, additions and normal maintenance and repairs. 
 “Receivables” means [i] all of Tenant’s or Subtenant’s rights to receive payment for providing resident care and services as set
forth in any accounts, contract rights, and instruments, and [ii] those documents, chattel paper, inventory proceeds, provider agreements, participation agreements, ledger sheets, files, records, computer programs, tapes, and agreements
relating to Tenant’s or Subtenant’s rights to receive payment for providing resident care services. 
 “Reference Bank”
means a bank appearing on the display designated as page “LIBOR” on the Reuters Monitor Money Rates Service (or such other page as may replace the LIBOR page on that service for the purpose of displaying London interbank offered rates of
major banks); provided, that, if no such offered rate shall appear on such display, “Reference Bank” shall mean a bank in the London interbank market as selected by Landlord. 
 “Related Rights” means all easements, rights (including bed operating rights) and appurtenances relating to the Land and the Improvements.

 “Renewal Date” means the first day of each Renewal Term. 
  

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 “Renewal Fee” means a fee equal to 1% of the Investment Amount. 
 “Renewal Option” has the meaning set forth in §12.1. 
 “Renewal Term” has the meaning set forth in §12.1. 
 “Rent” means Construction
Rent, Base Rent, Additional Rent and Default Rent. 
 “Rent Adjustment Date” means each anniversary of the Commencement Date.

 “Rent Schedule” means the schedule issued by Landlord to Tenant showing the Base Rent to be paid by Tenant pursuant to the terms
of this Lease, as such schedule is amended from time to time by Landlord. The initial Rent Schedule is attached to this Lease as Schedule 1 or will be attached following Closing if the Rent Schedule cannot be determined until the day of
Closing. 
 “Replacement Operator” has the meaning set forth in §15.9.1. 
 “Secured Party” has the meaning set forth in §23.1. 
 “Stabilization” means the earlier of [i] two years after a C of O has been issued for a Facility, or [ii] the date a Facility achieves an average occupancy of 75% or more for a period of three
months. 
 “Stabilized Facility” means any Facility that is not a Development Project and any Development Project Facility that has
achieved Stabilization, individually and collectively. 
 “Subtenant” means the entity identified on Exhibit C that subleases
the Facility from Tenant and is the licensed operator of the Facility, individually and collectively. References in this Lease to “Subtenant” shall mean each Subtenant individually and shall relate to such Subtenant’s respective
Facility unless expressly stated otherwise. 
 “Tenant” has the meaning set forth in the introductory paragraph of this Lease.

 “Tenant’s Property” has the meaning set forth in §11.1. 
 “Term” means the Initial Term and each Renewal Term. 
 “Term Sheet” means the Term Sheet for the Lease dated August 15, 2006, as supplemented by any Project Approval Letter. 
 “Transaction Fee” has the meaning set forth in §2.8. 
 “Working Capital Letter of
Credit” means for each Development Project, the Letter of Credit provided to Landlord at the time of the issuance of the C of O for such Development Project in an amount to be calculated by Landlord in accordance with the terms of the Term
Sheet. 
  

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 “Working Capital Shortfall” is equal to the net pre tax loss at the Facility, plus the
provision for depreciation and amortization and an adjustment for any other non-cash expenses or revenues. 
 1.5 Landlord as Agent.
With respect to its respective Facility, each Landlord appoints HCN as the agent and lawful attorney-in-fact of such Landlord to act for such Landlord for all purposes and actions of Landlord under this Lease and the other Lease Documents. All
notices, consents, waivers and all other documents and instruments executed by HCN pursuant to the Lease Documents from time to time and all other actions of HCN as Landlord under the Lease Documents shall be binding upon such Landlord. All Rent
payable under this Lease shall be paid to HCN. If HCN is the only Landlord, this section shall have no force or effect. 
 ARTICLE 2: RENT

 2.1 Construction Rent. Tenant shall pay Landlord construction rent (“Construction Rent”) in arrears in consecutive
monthly installments payable commencing on the first day of each month during the Construction Term after receipt of a Construction Rent invoice prepared in accordance with the terms of the Term Sheet. Landlord can make a Contingent Payment to pay
the monthly Construction Rent. The Construction Rent for each Development Project will be based upon the aggregate amount of Contingent Payments made for such Development Project as of the applicable date and Landlord’s rate of return equal to
the LIBOR Rate plus 1.35%, adjusted from month to month at the time and in accordance with the Term Sheet to reflect each change in the LIBOR Rate. 
 2.2 Base Rent. Tenant shall pay Landlord base rent (“Base Rent”) in advance in consecutive monthly installments payable on the first day of each month during the Fixed Term and Renewal Term commencing on the Fixed Term
Commencement Date. If the first day of the Fixed Term is not the first day of a month, Tenant shall pay Landlord Base Rent on the first day of the Fixed Term for the period from the first day of the Fixed Term until the Fixed Term Commencement Date.
The estimated Base Rent payable for the first Lease Year of the Fixed Term is as shown on the Rent Schedule, subject to [i] adjustment pursuant to §2.3.2 (if applicable); [ii] completion of the Rent Schedule with the actual date of
the Fixed Term Commencement Date; and [iii] calculation of Landlord’s rate of return for the Fixed Term in accordance with the Term Sheet. Landlord will deliver the final Rent Schedule to Tenant no later than the Fixed Term Commencement
Date. For the second and each subsequent Lease Year of the Fixed Term, the Base Rent shall be paid in accordance with the most recent revised Rent Schedule provided by Landlord pursuant to §2.3, as applicable. The Base Rent for each Renewal
Term will be determined in accordance with §12.2. 
 2.3 Base Rent Adjustments. 
 2.3.1 Annual Increase of Base Rent. Commencing on the second Rent Adjustment Date and on each Rent Adjustment Date thereafter, the monthly
installment of Base Rent shall increase by an amount equal to 1/12th of the Annual Rent Increase. As of each Rent Adjustment Date, Landlord shall promptly calculate the Annual Rent Increase and shall deliver the revised Rent Schedule to Tenant no
later than 30 days after the Rent Adjustment Date. Until the revised Rent Schedule is delivered to Tenant, Tenant shall pay the monthly Base Rent with 
  

 (13) 

 the Annual Rent Increase calculated based upon an Increaser Rate of .25%. After the revised Rent Schedule is delivered to
Tenant, if the actual monthly Base Rent is more than the monthly Base Rent paid pursuant to the preceding sentence, the difference shall be added to the monthly Base Rent payment made for the following month. Thereafter, Tenant shall make monthly
Base Rent payments in accordance with the revised Rent Schedule. 
 2.3.2 Additional Landlord Payments. If Landlord makes a Landlord
Payment other than the initial Acquisition Payment, the Base Rent will be increased effective on the Payment Date based upon the applicable rate of return to Landlord as set forth in the Term Sheet. Until Tenant receives a revised Rent Schedule from
Landlord, Tenant shall for each month [i] continue to make installments of Base Rent according to the Rent Schedule in effect on the day before the Payment Date; and [ii] within 10 days following Landlord’s issuance of an
invoice, pay the difference between the installment of Base Rent that Tenant paid to Landlord for such month and the installment of Base Rent actually due to Landlord for such month as a result of the Landlord Payment. On the first day of the month
following receipt of the revised Rent Schedule, Tenant shall pay the monthly installment of Base Rent specified in the revised Rent Schedule. 
 2.4 Additional Rent. In addition to Base Rent, Tenant shall pay all other amounts, liabilities, obligations and Impositions which Tenant assumes or agrees to pay under this Lease including any fine, penalty, interest, charge and cost
which may be added for nonpayment or late payment of such items (collectively the “Additional Rent”). 
 2.5 Place of Payment of
Rent. Tenant shall make all payments of Rent to Landlord by electronic wire transfer in accordance with the wiring instructions set forth in Exhibit D attached hereto, subject to change in accordance with other written instructions provided
by Landlord from time to time. 
 2.6 Net Lease. This Lease shall be deemed and construed to be an “absolute net lease”, and
Tenant shall pay all Rent and other charges and expenses in connection with the Leased Property throughout the Term, without abatement, deduction, recoupment or setoff. Landlord shall have all legal, equitable and contractual rights, powers and
remedies provided either in this Lease or by statute or otherwise in the case of nonpayment of the Rent. 
 2.7 No Termination, Abatement,
Etc. Except as otherwise specifically provided in this Lease, Tenant shall remain bound by this Lease in accordance with its terms. Tenant shall not, without the consent of Landlord, modify, surrender or terminate the Lease, nor seek nor be
entitled to any abatement, deduction, deferment or reduction of Rent, or setoff or recoupment against the Rent. Except as expressly provided in this Lease, the obligations of Landlord and Tenant shall not be affected by reason of [i] any damage
to, or destruction of, the Leased Property or any part thereof from whatever cause or any Taking (as hereinafter defined) of the Leased Property or any part thereof; [ii] the lawful or unlawful prohibition of, or restriction upon, Tenant’s
use of the Leased Property, or any part thereof, the interference with such use by any person, corporation, partnership or other entity, or by reason of eviction by paramount title; [iii] any claim which Tenant has or might have against
Landlord or by reason of any default or breach of any warranty by Landlord under this Lease or any other agreement between Landlord and Tenant, or to which Landlord and Tenant are parties; [iv] any bankruptcy, 
  

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 insolvency, reorganization, composition, readjustment, liquidation, dissolution, winding up or other proceeding affecting
Landlord or any assignee or transferee of Landlord; or [v] any other cause, whether similar or dissimilar to any of the foregoing, other than a discharge of Tenant from any such obligations as a matter of law. Except as otherwise specifically
provided in this Lease, Tenant hereby specifically waives all rights, arising from any occurrence whatsoever, which may now or hereafter be conferred upon it by law [a] to modify, surrender or terminate this Lease or quit or surrender the
Leased Property or any portion thereof; or [b] entitling Tenant to any abatement, reduction, suspension or deferment of the Rent or other sums payable by Tenant hereunder. The obligations of Landlord and Tenant hereunder shall be separate and
independent covenants and agreements and the Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events unless the obligations to pay the same shall be terminated pursuant to the express provisions of this Lease
or by termination of this Lease other than by reason of an Event of Default. 
 2.8 Transaction Fee. Tenant shall pay transaction fees
to Landlord (individually and collectively “Transaction Fee”) in the amount and on the dates set forth in the Term Sheet, except that the Transaction Fee required to be paid under the Term Sheet at the time of the Closing, shall be due and
payable with the first draw for the construction of the Meridian Facility. Additionally, Tenant shall pay a transaction fee during the Construction Term in accordance with the terms of the Disbursing Agreement. 
 ARTICLE 3: IMPOSITIONS AND UTILITIES 
 3.1 Payment of Impositions. Tenant shall pay, as Additional Rent, all Impositions that may be levied or become a lien on the Leased Property or any part thereof at any time (whether prior to or during the Term), without regard to
prior ownership of said Leased Property, before any fine, penalty, interest, or cost is incurred; provided, however, Tenant may contest any Imposition in accordance with §3.7 and further provided that for an Imposition that is levied prior to
expiration of the Term but relates to periods accruing after the Term, Tenant shall only be responsible for that portion of the Imposition accruing during the Term. Tenant shall deliver to Landlord [i] not more than five days after the due date
of each Imposition, copies of the invoice for such Imposition and the check delivered for payment thereof, but only for Impositions that are not paid on a monthly basis; and [ii] not more than 30 days after the due date of each Imposition,
a copy of the official receipt evidencing such payment or other proof of payment satisfactory to Landlord. Tenant’s obligation to pay such Impositions shall be deemed absolutely fixed upon the date such Impositions become a lien upon the Leased
Property or any part thereof. Tenant, at its expense, shall prepare and file all tax returns and reports in respect of any Imposition as may be required by governmental authorities. Tenant shall be entitled to any refund due from any taxing
authority if no Event of Default shall have occurred hereunder and be continuing and if Tenant shall have paid all Impositions due and payable as of the date of the refund. Landlord shall be entitled to any refund from any taxing authority if an
Event of Default has occurred and is continuing. Any refunds retained by Landlord due to an Event of Default shall be applied as provided in §8.8. Landlord and Tenant shall, upon request of the other, provide such data as is maintained by the
party to whom the request is made with respect to the Leased Property as may be necessary to prepare any required returns and reports. In the event governmental authorities classify any property covered by this Lease as personal property, Tenant
shall file all personal property tax returns in such jurisdictions where it may legally so 
  

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 file. Landlord, to the extent it possesses the same, and Tenant, to the extent it possesses the same, will provide the
other party, upon request, with cost and depreciation records necessary for filing returns for any property so classified as personal property. Where Landlord is legally required to file personal property tax returns, Tenant will be provided with
copies of assessment notices indicating a value in excess of the reported value in sufficient time for Tenant to file a protest. Tenant may, upon notice to Landlord, at Tenant’s option and at Tenant’s sole cost and expense, protest,
appeal, or institute such other proceedings as Tenant may deem appropriate to effect a reduction of real estate or personal property assessments and Landlord, at Tenant’s expense as aforesaid, shall fully cooperate with Tenant in such protest,
appeal, or other action. Tenant shall reimburse Landlord for all personal property taxes paid by Landlord within 30 days after receipt of billings accompanied by copies of a bill therefor and payments thereof which identify the personal
property with respect to which such payments are made. Impositions imposed in respect to the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Landlord and Tenant, whether or not such Imposition is imposed
before or after such termination, and Tenant’s obligation to pay its prorated share thereof shall survive such termination. 
 3.2
Definition of Impositions. Subject to the last sentence of §3.2, “Impositions” means, collectively, [i] taxes (including, without limitation, all capital stock and franchise taxes of Landlord imposed by the Facility State
or any governmental entity in the Facility State due to this lease transaction or Landlord’s ownership of the Leased Property and the income arising therefrom, or due to Landlord being considered as doing business in the Facility State because
of Landlord’s ownership of the Leased Property or lease thereof to Tenant), all real estate and personal property ad valorem, sales and use, business or occupation, single business, gross receipts, commercial activity, transaction
privilege, rent or similar taxes; [ii] assessments (including, without limitation, all assessments for public improvements or benefits, whether or not commenced or completed prior to the date hereof and whether or not to be completed within the
Term); [iii] ground rents, water, sewer or other rents and charges, excises, tax levies, and fees (including, without limitation, license, permit, inspection, authorization and similar fees); [iv] all taxes imposed on Tenant’s
operations of the Leased Property, including, without limitation, employee withholding taxes, income taxes and intangible taxes; [v] all taxes imposed by the Facility State or any governmental entity in the Facility State with respect to the
conveyance of the Leased Property by Landlord to Tenant or Tenant’s designee, including, without limitation, conveyance taxes, capital gains taxes, and commercial activity taxes; and [vi] all other governmental charges, in each case
whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Leased Property or any part thereof and/or the Rent (including all interest and penalties thereon due to any failure in payment by
Tenant), which at any time prior to, during or in respect of the Term hereof may be assessed or imposed on or in respect of or be a lien upon [a] Landlord or Landlord’s interest in the Leased Property or any part thereof; [b] the
Leased Property or any part thereof or any rent therefrom or any estate, right, title or interest therein; or [c] any occupancy, operation, use or possession of, or sales from, or activity conducted on, or in connection with the Leased Property
or the leasing or use of the Leased Property or any part thereof. Tenant shall not, however, be required to pay any tax based on net income imposed on Landlord by any governmental entity other than the capital stock and franchise taxes described in
clause [i] above, nor shall Tenant be required to pay any capital gains tax imposed upon Landlord in connection with the sale of the Leased Property or sums due in connection with any easement agreement entered into by Landlord after the
Effective Date without Tenant’s prior written consent. 
  

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 3.3 Escrow of Impositions. Tenant shall deposit with Landlord on the first day of each month a sum
equal to 1/12th of the Impositions assessed against the Leased Property for the preceding tax year for real estate taxes, which sums shall be used by Landlord toward payment of such Impositions. In addition, if an Event of Default occurs and while
it remains uncured, Tenant shall, at Landlord’s election, deposit with Landlord on the first day of each month a sum equal to 1/12th of the Impositions assessed against the Leased Property for the preceding tax year other than for real estate
taxes, which sums shall be used by Landlord toward payment of such Impositions. Tenant, on demand, shall pay to Landlord any additional funds necessary to pay and discharge the obligations of Tenant pursuant to the provisions of this section. The
receipt by Landlord of the payment of such Impositions by and from Tenant shall only be as an accommodation to Tenant, the mortgagees, and the taxing authorities, and shall not be construed as rent or income to Landlord, Landlord serving, if at all,
only as a conduit for delivery purposes. 
 3.4 Utilities. Tenant shall pay, as Additional Rent, all taxes, assessments, charges,
deposits, and bills for utilities, including, without limitation, charges for water, gas, oil, sanitary and storm sewer, electricity, telephone service, and trash collection, which may be charged against the occupant of the Improvements during the
Term. If an Event of Default occurs and while it remains uncured, Tenant shall, at Landlord’s election, deposit with Landlord on the first day of each month a sum equal to 1/12th of the amount of the annual utility expenses for the preceding
Lease Year, which sums shall be used by Landlord to pay such utilities. Tenant shall, on demand, pay to Landlord any additional amount needed to pay such utilities. Landlord’s receipt of such payments shall only be an accommodation to Tenant
and the utility companies and shall not constitute rent or income to Landlord. Tenant shall at all times maintain that amount of heat necessary to ensure against the freezing of water lines. Tenant hereby agrees to indemnify and hold Landlord
harmless from and against any liability or damages to the utility systems and the Leased Property that may result from Tenant’s failure to maintain sufficient heat in the Improvements. 
 3.5 Discontinuance of Utilities. Landlord will not be liable for damages to person or property or for injury to, or interruption of, business for
any discontinuance of utilities nor will such discontinuance in any way be construed as an eviction of Tenant or cause an abatement of rent or operate to release Tenant from any of Tenant’s obligations under this Lease. 
 3.6 Business Expenses. Tenant acknowledges that it is solely responsible for all expenses and costs incurred in connection with the operation of
the Facility on the Leased Property, including, without limitation, employee benefits, employee vacation and sick pay, consulting fees, and expenses for inventory and supplies. 
 3.7 Permitted Contests. Tenant, on its own or on Landlord’s behalf (or in Landlord’s name), but at Tenant’s expense, may contest,
by appropriate legal proceedings conducted in good faith and with due diligence, the amount or validity or application, in whole or in part, of any Imposition or any Legal Requirement or insurance requirement or any lien, attachment, levy,
encumbrance, charge or claim provided that [i] in the case of an unpaid 
  

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 Imposition, lien, attachment, levy, encumbrance, charge or claim, the commencement and continuation of such proceedings
shall suspend the collection thereof from Landlord and from the Leased Property; [ii] neither the Leased Property nor any Rent therefrom nor any part thereof or interest therein would be in any immediate danger of being sold, forfeited,
attached or lost; [iii] in the case of a Legal Requirement, Landlord would not be in any immediate danger of civil or criminal liability for failure to comply therewith pending the outcome of such proceedings; [iv] in the event that any
such contest shall involve a sum of money or potential loss in excess of $50,000.00, Tenant shall deliver to Landlord and its counsel an opinion of Tenant’s counsel to the effect set forth in clauses [i], [ii] and [iii], to the extent
applicable; [v] in the case of a Legal Requirement and/or an Imposition, lien, encumbrance or charge, Tenant shall give such reasonable security as may be demanded by Landlord to insure ultimate payment of the same and to prevent any sale or
forfeiture of the affected Leased Property or the Rent by reason of such nonpayment or noncompliance; provided, however, the provisions of this section shall not be construed to permit Tenant to contest the payment of Rent (except as to contests
concerning the method of computation or the basis of levy of any Imposition or the basis for the assertion of any other claim) or any other sums payable by Tenant to Landlord hereunder; [vi] in the case of an insurance requirement, the coverage
required by Article 4 shall be maintained; and [vii] if such contest be finally resolved against Landlord or Tenant, Tenant shall, as Additional Rent due hereunder, promptly pay the amount required to be paid, together with all interest
and penalties accrued thereon, or comply with the applicable Legal Requirement or insurance requirement. Landlord, at Tenant’s expense, shall execute and deliver to Tenant such authorizations and other documents as may be reasonably required in
any such contest, and, if reasonably requested by Tenant or if Landlord so desires, Landlord shall join as a party therein. Tenant hereby agrees to indemnify and save Landlord harmless from and against any liability, cost or expense of any kind that
may be imposed upon Landlord in connection with any such contest and any loss resulting therefrom. 
 ARTICLE 4: INSURANCE 

4.1 Property Insurance. At Tenant’s expense, Tenant shall maintain in full force and effect a property insurance policy or policies
insuring the Leased Property against the following: 
 (a) Loss or damage commonly covered by a “Special Form” policy insuring
against physical loss or damage to the Improvements and Personal Property, including, but not limited to, risk of loss from fire, windstorm and other hazards, collapse, transit coverage, vandalism, malicious mischief, theft, earthquake (if the
Leased Property is in earthquake zone 1 or 2) and sinkholes (if usually recommended in the area of the Leased Property). The policy shall be in the amount of the full replacement value (as defined in §4.5) of the Improvements and Personal
Property and shall contain a deductible amount acceptable to Landlord. Landlord shall be named as an additional insured. The policy shall include a stipulated value endorsement or agreed amount endorsement and endorsements for contingent liability
for operations of building laws, demolition costs, and increased cost of construction. 
 (b) If applicable, loss or damage by explosion of
steam boilers, pressure vessels, or similar apparatus, now or hereafter installed on the Leased Property, in commercially reasonable amounts acceptable to Landlord. 
  

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 (c) Consequential loss of rents and income coverage insuring against all “Special Form” risk of
physical loss or damage with limits and deductible amounts acceptable to Landlord covering risk of loss during the first nine months of reconstruction, and containing an endorsement for extended period of indemnity of at least six months, and shall
be written with a stipulated amount of coverage if available at a reasonable premium. 
 (d) If the Leased Property is located, in whole or
in part, in a federally designated 100-year flood plain area, flood insurance for the Improvements in an amount equal to the lesser of [i] the full replacement value of the Improvements; or [ii] the maximum amount of insurance available
for the Improvements under all federal and private flood insurance programs. 
 (e) Loss or damage caused by the breakage of plate glass in
commercially reasonable amounts acceptable to Landlord. 
 (f) Loss or damage commonly covered by blanket crime insurance, including employee
dishonesty, loss of money orders or paper currency, depositor’s forgery, and loss of property of patients accepted by Tenant for safekeeping, in commercially reasonable amounts acceptable to Landlord. 
 4.2 Liability Insurance. At Tenant’s expense, Tenant shall maintain liability insurance against the following: 
 (a) Claims for personal injury or property damage commonly covered by comprehensive general liability insurance with endorsements for incidental
malpractice, contractual, personal injury, owner’s protective liability, voluntary medical payments, products and completed operations, broad form property damage, and extended bodily injury, with commercially reasonable amounts for bodily
injury, property damage, and voluntary medical payments acceptable to Landlord, but with a combined single limit of not less than $5,000,000.00 per occurrence. 
 (b) Claims for personal injury and property damage commonly covered by comprehensive automobile liability insurance, covering all owned and non-owned automobiles, with commercially reasonable amounts for bodily
injury, property damage, and for automobile medical payments acceptable to Landlord, but with a combined single limit of not less than $5,000,000.00 per occurrence. 
 (c) Claims for personal injury commonly covered by medical malpractice and professional liability insurance in commercially reasonable amounts acceptable to Landlord. 
 (d) Claims commonly covered by workers’ compensation insurance for all persons employed by Tenant on the Leased Property. Such workers’
compensation insurance shall be in accordance with the requirements of all applicable local, state, and federal law. 
 4.3 Builder’s
Risk Insurance. In connection with any construction, Tenant shall maintain in full force and effect a builder’s completed value risk policy (“Builder’s Risk 
  

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 Policy”) of insurance in a nonreporting form insuring against all “Special Form” risk of physical loss or
damage to the Improvements, including, but not limited to, risk of loss from fire, windstorm and other hazards, collapse, transit coverage, vandalism, malicious mischief, theft, earthquake (if Leased Property is in earthquake zone 1 or 2) and
sinkholes (if usually recommended in the area of the Leased Property). The Builder’s Risk Policy shall include endorsements providing coverage for building materials and supplies and temporary premises. The Builder’s Risk Policy shall be
in the amount of the full replacement value of the Improvements and shall contain a deductible amount acceptable to Landlord. Landlord shall be named as an additional insured. The Builder’s Risk Policy shall include an endorsement permitting
initial occupancy. 
 4.4 Insurance Requirements. The following provisions shall apply to all insurance coverages required hereunder:

 (a) For Development Projects, the insurance coverage set forth in §§4.1 and 4.2 shall not be required until the Facility being
constructed is completed as set forth in the Disbursing Agreement. 
 (b) The form and substance of all policies shall be subject to the
approval of Landlord, which approval will not be unreasonably withheld, conditioned or delayed. 
 (c) The carriers of all policies shall
have a Best’s Rating of “A-1” or better and a Best’s Financial Category of XII or higher and shall be authorized to do insurance business in the Facility State. 
 (d) Tenant shall be the “named insured” and Landlord shall be an “additional insured” on each policy. 
 (e) Tenant shall deliver to Landlord certificates or copies of policies showing the required coverages and endorsements. The policies of insurance shall
provide that the policy may not be canceled or not renewed, and no material change or reduction in coverage may be made, without at least 30 days’ prior written notice to Landlord. 
 (f) The policies shall contain a severability of interest and/or cross-liability endorsement, provide that the acts or omissions of Tenant or Landlord
will not invalidate the coverage of the other party, and provide that Landlord shall not be responsible for payment of premiums. 
 (g) All
loss adjustment shall require the written consent of Landlord and Tenant, as their interests may appear. 
 (h) At least 30 days prior
to the expiration of each insurance policy, Tenant shall deliver to Landlord a certificate showing renewal of such policy and payment of the annual premium therefor and a current Certificate of Compliance (in the form delivered at the time of
Closing) completed and signed by Tenant’s insurance agent. 
 4.5 Replacement Value. The term “full replacement value”
means the actual replacement cost thereof from time to time, including increased cost of construction 
  

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 endorsement, with no reductions or deductions. Tenant shall, in connection with each annual policy renewal, deliver to
Landlord a redetermination of the full replacement value by the insurer or an endorsement indicating that the Leased Property is insured for its full replacement value. If Tenant makes any Permitted Alterations (as hereinafter defined) to the Leased
Property, Landlord may have such full replacement value redetermined at any time after such Permitted Alterations are made, regardless of when the full replacement value was last determined. 
 4.6 Blanket Policy. Notwithstanding anything to the contrary contained in this Article 4, Tenant may carry the insurance required by this
Article under a blanket policy of insurance, provided that the coverage afforded Tenant will not be reduced or diminished or otherwise be different from that which would exist under a separate policy meeting all of the requirements of this Lease.

 4.7 No Separate Insurance. Tenant shall not take out separate insurance concurrent in form or contributing in the event of loss
with that required in this Article, or increase the amounts of any then existing insurance, by securing an additional policy or additional policies, unless all parties having an insurable interest in the subject matter of the insurance, including
Landlord and any mortgagees, are included therein as additional insureds or loss payees, the loss is payable under said insurance in the same manner as losses are payable under this Lease, and such additional insurance is not prohibited by the
existing policies of insurance. Tenant shall immediately notify Landlord of the taking out of such separate insurance or the increasing of any of the amounts of the existing insurance by securing an additional policy or additional policies.

 4.8 Waiver of Subrogation. Each party hereto hereby waives any and every claim which arises or may arise in its favor and against
the other party hereto during the Term for any and all loss of, or damage to, any of its property located within or upon, or constituting a part of, the Leased Property, which loss or damage is covered by valid and collectible insurance policies, to
the extent that such loss or damage is recoverable under such policies. Said mutual waiver shall be in addition to, and not in limitation or derogation of, any other waiver or release contained in this Lease with respect to any loss or damage to
property of the parties hereto. Inasmuch as the said waivers will preclude the assignment of any aforesaid claim by way of subrogation (or otherwise) to an insurance company (or any other person), each party hereto agrees immediately to give each
insurance company which has issued to it policies of insurance, written notice of the terms of said mutual waivers, and to have such insurance policies properly endorsed, if necessary, to prevent the invalidation of said insurance coverage by reason
of said waivers, so long as such endorsement is available at a reasonable cost. 
 4.9 Mortgages. The following provisions shall apply
if Landlord now or hereafter places a mortgage on the Leased Property or any part thereof: [i] Tenant shall obtain a standard form of lender’s loss payable clause insuring the interest of the mortgagee; [ii] Tenant shall deliver
evidence of insurance to such mortgagee; [iii] loss adjustment shall require the consent of the mortgagee; and [iv] Tenant shall provide such other information and documents as may be required by the mortgagee. 
  

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 4.10 Escrows. After an Event of Default occurs hereunder, Tenant shall make such periodic payments
of insurance premiums in accordance with Landlord’s requirements after receipt of notice thereof from Landlord. 
 ARTICLE 5:
INDEMNITY 
 5.1 Tenant’s Indemnification. Tenant hereby indemnifies and agrees to hold harmless Landlord, any successors or
assigns of Landlord, and Landlord’s and such successor’s and assign’s directors, officers, employees and agents from and against any and all demands, claims, causes of action, fines, penalties, damages (including consequential
damages), losses, liabilities (including strict liability), judgments, and expenses (including, without limitation, reasonable attorneys’ fees, court costs, and the costs set forth in §8.7) incurred in connection with or arising from:
[i] the use or occupancy of the Leased Property by Tenant or any persons claiming under Tenant; [ii] any activity, work, or thing done, or permitted or suffered by Tenant in or about the Leased Property; [iii] any acts, omissions, or
negligence of Tenant or any person claiming under Tenant, or the contractors, agents, employees, invitees, or visitors of Tenant or any such person; [iv] any breach, violation, or nonperformance by Tenant or any person claiming under Tenant or
the employees, agents, contractors, invitees, or visitors of Tenant or of any such person, of any term, covenant, or provision of this Lease or any law, ordinance, or governmental requirement of any kind, including, without limitation, any failure
to comply with any applicable requirements under the ADA; [v] any injury or damage to the person, property or business of Tenant, its employees, agents, contractors, invitees, visitors, or any other person entering upon the Leased Property,
provided the foregoing indemnification provisions shall not apply to any demand, claim, cause of action caused by the gross negligence or willful misconduct of Landlord or its employees or agents (provided that Tenant and any of Tenant’s
employees, agents, contractors or invitees shall not be an agent of Landlord); [vi] any construction, alterations, changes or demolition of the Facility performed by or contracted for by Tenant or its employees, agents or contractors; and
[vii] any obligations, costs or expenses arising under any Permitted Exceptions. If any action or proceeding is brought against Landlord, its employees, or agents by reason of any such claim, Tenant, upon notice from Landlord, will defend the
claim at Tenant’s expense with counsel reasonably satisfactory to Landlord. All amounts payable to Landlord under this section shall be payable on written demand and any such amounts which are not paid within 10 days after demand therefor
by Landlord shall bear interest at Landlord’s rate of return as provided in the Term Sheet. In case any action, suit or proceeding is brought against Tenant by reason of any such occurrence, Tenant shall use its best efforts to defend such
action, suit or proceeding; provided Tenant may settle on terms acceptable to Tenant. 
 5.1.1 Notice of Claim. Landlord shall notify
Tenant in writing of any claim or action brought against Landlord in which indemnity may be sought against Tenant pursuant to this section. Such notice shall be given in sufficient time to allow Tenant to defend or participate in such claim or
action, but the failure to give such notice in sufficient time shall not constitute a defense hereunder nor in any way impair the obligations of Tenant under this section unless the failure to give such notice precludes Tenant’s defense of any
such action. 
 5.1.2 Survival of Covenants. The covenants of Tenant contained in this section shall remain in full force and effect
after the termination of this Lease until the expiration of the period stated in the applicable statute of limitations during which a claim or cause of action may 
  

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 be brought and payment in full or the satisfaction of such claim or cause of action and of all expenses and charges
incurred by Landlord relating to the enforcement of the provisions herein specified. 
 5.1.3 Reimbursement of Expenses. Unless
prohibited by law, Tenant hereby agrees to pay to Landlord all of the reasonable fees, charges and reasonable out-of-pocket expenses related to the Facility and required hereby, or incurred by Landlord in enforcing the provisions of this Lease.

 5.2 Environmental Indemnity; Audits. Tenant hereby indemnifies and agrees to hold harmless Landlord, any successors to
Landlord’s interest in this Lease, and Landlord’s and such successors’ directors, officers, employees and agents from and against any losses, claims, damages (including consequential damages), penalties, fines, liabilities (including
strict liability), costs (including cleanup and recovery costs), and expenses (including expenses of litigation and reasonable consultants’ and attorneys’ fees) incurred by Landlord or any other indemnitee or assessed against any portion
of the Leased Property by virtue of any claim or lien by any governmental or quasi-governmental unit, body, or agency, or any third party, for cleanup costs or other costs pursuant to any Environmental Law. Tenant’s indemnity shall survive the
termination of this Lease. Provided, however, Tenant shall have no indemnity obligation with respect to [i] Hazardous Materials first introduced to the Leased Property subsequent to the date that Tenant’s occupancy of the Leased Property
shall have fully terminated; or [ii] Hazardous Materials introduced to the Leased Property by Landlord, its agent, employees, successors or assigns. If at any time during the Term of this Lease any governmental authority notifies Landlord or
Tenant of a violation of any Environmental Law or Landlord in good faith reasonably believes that a Facility may violate any Environmental Law, Landlord may require one or more environmental audits of such portion of the Leased Property, in such
form, scope and substance as specified by Landlord, at Tenant’s expense. Tenant shall, within 30 days after receipt of an invoice from Landlord, reimburse Landlord for all costs and expenses incurred in reviewing any environmental audit,
including, without limitation, reasonable attorneys’ fees and costs. 
 5.3 Limitation of Landlord’s Liability. Landlord,
its agents, and employees, will not be liable for any loss, injury, death, or damage (including consequential damages) to persons, property, or Tenant’s business occasioned by theft, act of God, public enemy, injunction, riot, strike,
insurrection, war, court order, requisition, order of governmental body or authority, fire, explosion, falling objects, steam, water, rain or snow, leak or flow of water (including water from the elevator system), rain or snow from the Leased
Property or into the Leased Property or from the roof, street, subsurface or from any other place, or by dampness or from the breakage, leakage, obstruction, or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning,
or lighting fixtures of the Leased Property, or from construction, repair, or alteration of the Leased Property or from any acts or omissions of any other occupant or visitor of the Leased Property, or from any other cause beyond Landlord’s
control. 
  

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 ARTICLE 6: USE AND ACCEPTANCE OF PREMISES 
 6.1 Use of Leased Property. Tenant shall use and occupy the Leased Property exclusively for the Facility Uses specified for each Facility and for
all lawful and licensed ancillary uses, and for no other purpose without the prior written consent of Landlord. Notwithstanding the foregoing, Landlord and Tenant acknowledge that due to Medicare reimbursement and regulatory changes, the Facility
Uses as defined herein may not be the highest and best use of a Facility in the future. If Landlord and Tenant mutually agree using their reasonable business judgment that there is an alternative healthcare use for a Facility that reasonably can be
expected to provide sustainable Net Operating Income in excess of the Net Operating Income provided by the current Facility Use, then Landlord and Tenant will mutually agree to an alternative Facility Use for that Facility. If Landlord and Tenant
mutually agree to an alternative healthcare use for a Facility, the Master Lease will be amended, as appropriate, to reflect the alternative use. Tenant shall obtain and maintain all approvals, licenses, and consents needed to use and operate the
Leased Property as herein permitted. Tenant shall deliver to Landlord complete copies of surveys, examinations, certification and licensure inspections, compliance certificates, and other similar reports issued to Tenant by any governmental agency
within 10 days after Tenant’s receipt of each item. 
 6.2 Acceptance of Leased Property. Tenant acknowledges that
[i] Tenant and its agents have had an opportunity to inspect the Leased Property; [ii] Tenant has found the Leased Property fit for Tenant’s use; [iii] Landlord will deliver the Leased Property to Tenant in “as-is”
condition; [iv] Landlord is not obligated to make any improvements or repairs to the Leased Property; and [v] the roof, walls, foundation, heating, ventilating, air conditioning, telephone, sewer, electrical, mechanical, elevator, utility,
plumbing, and other portions of the Leased Property are in good working order or in the case of a Development Project, will be in good working order upon completion of construction of the Facility. Tenant waives any claim or action against Landlord
with respect to the condition of the Leased Property. LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED PROPERTY OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR
USE OR PURPOSE OR OTHERWISE, OR AS TO QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY TENANT. 
 6.3 Conditions of Use and Occupancy. Tenant agrees that during the Term it shall use and keep the Leased Property in a careful, safe and proper manner; not commit or suffer waste thereon; not use or occupy the
Leased Property for any unlawful purposes; not use or occupy the Leased Property or permit the same to be used or occupied, for any purpose or business deemed extra-hazardous on account of fire or otherwise; keep the Leased Property in such repair
and condition as may be required by the Board of Health, or other city, state or federal authorities, free of all cost to Landlord; not permit any acts to be done which will cause the cancellation, invalidation, or suspension of any insurance
policy; and permit Landlord and its agents to enter upon the Leased Property at all reasonable times after prior notice to examine the condition thereof. Landlord shall have the right to have an annual inspection of the Leased Property performed and
Tenant shall pay an inspection fee of $1,500.00 per Facility plus Landlord’s reasonable out-of-pocket expenses within 30 days after receipt of Landlord’s invoice. 
  

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 ARTICLE 7: MAINTENANCE AND MECHANICS’ LIENS 
 7.1 Maintenance. Tenant shall maintain, repair, and replace the Leased Property, including, without limitation, all structural and nonstructural
repairs and replacements to the roof, foundations, exterior walls, HVAC systems, equipment, parking areas, sidewalks, water, sewer and gas connections, pipes and mains. Tenant shall pay, as Additional Rent, the full cost of maintenance, repairs, and
replacements. Tenant shall maintain all drives, sidewalks, parking areas, and lawns on or about the Leased Property in a clean and orderly condition, free of accumulations of dirt, rubbish, snow and ice. Tenant shall at all times maintain, operate
and otherwise manage the Leased Property on a basis and in a manner consistent with the standards of the highest quality competing facilities in the market areas served by the Leased Property. All repairs shall, to the extent reasonably achievable,
be at least equivalent in quality to the original work or the property to be repaired shall be replaced. Tenant will not take or omit to take any action the taking or omission of which might materially impair the value or the usefulness of the
Leased Property or any parts thereof for the Facility Uses. Tenant shall permit Landlord to inspect the Leased Property at all reasonable times after prior notice, and if Landlord gives Tenant notice of maintenance problem areas, Tenant shall
deliver to Landlord a plan of correction within 15 Business Days after receipt of the notice. Tenant shall diligently pursue correction of all problem areas within 60 days after receipt of the notice and, upon expiration of the 60-day
period, shall deliver evidence of completion to Landlord or an interim report evidencing Tenant’s diligent progress towards completion and, at the end of the next 60-day period, evidence of satisfactory completion. Landlord shall waive an Event
of Default for failure to complete any repairs upon presentation to Landlord of evidence reasonably satisfactory to Landlord, in Landlord’s sole discretion, that Tenant has diligently pursued correction all problems. Upon completion, Landlord
shall have the right to re-inspect the Facility and Tenant shall pay Landlord’s reasonable out-of-pocket expenses within 30 days after receipt of Landlord’s invoice. At each inspection of the Leased Property by Landlord, the Facility
employee in charge of maintenance shall be available to tour the Facility with Landlord and answer questions. 
 7.2 Required
Alterations. Tenant shall, at Tenant’s sole cost and expense, make any additions, changes, improvements or alterations to the Leased Property, including structural alterations, which may be required by any governmental authorities,
including those required to maintain licensure or certification under the Medicare and Medicaid programs (if so certified), whether such changes are required by Tenant’s use, changes in the law, ordinances, or governmental regulations, defects
existing as of the date of this Lease, or any other cause whatsoever. All such additions, changes, improvements or alterations shall be deemed to be Permitted Alterations and shall comply with all laws requiring such alterations and with the
provisions of §16.4. 
 7.3 Mechanic’s Liens. Tenant shall have no authority to permit or create a lien against
Landlord’s interest in the Leased Property, and Tenant shall post notices or file such documents as may be required to protect Landlord’s interest in the Leased Property against liens. Tenant hereby agrees to defend, indemnify, and hold
Landlord harmless from and against any mechanic’s liens against the Leased Property by reason of work, labor, services or materials supplied or claimed to have been supplied on or to the Leased Property. Tenant shall remove, bond-off, or
otherwise obtain the release of any mechanic’s lien filed against the Leased Property 
  

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 within 10 days after notice of the filing thereof. Tenant shall pay all expenses in connection therewith, including,
without limitation, damages, interest, court costs and reasonable attorneys’ fees. 
 7.4 Replacements of Fixtures and
Landlord’s Personal Property. Tenant shall not remove Fixtures and Landlord’s Personal Property from the Leased Property except to replace the Fixtures and Landlord’s Personal Property by other similar items of equal quality and
value. Items being replaced by Tenant may be removed and shall become the property of Tenant and items replacing the same shall be and remain the property of Landlord. Tenant shall execute, upon written request from Landlord, any and all documents
necessary to evidence Landlord’s ownership of Landlord’s Personal Property and replacements therefor. Tenant may finance replacements for the Fixtures and Landlord’s Personal Property by equipment lease or by a security agreement and
financing statement if [i] Landlord has consented to the terms and conditions of the equipment lease or security agreement; and [ii] the equipment lessor or lender has entered into a nondisturbance agreement with Landlord upon terms and
conditions reasonably acceptable to Landlord, including, without limitation, the following: [a] Landlord shall have the right (but not the obligation) to assume such security agreement or equipment lease upon the occurrence of an Event of
Default under this Lease; [b] the equipment lessor or lender shall notify Landlord of any default by Tenant under the equipment lease or security agreement and give Landlord a reasonable opportunity to cure such default; and [c] Landlord
shall have the right to assign its rights under the equipment lease, security agreement, or nondisturbance agreement. Tenant shall, within 30 days after receipt of an invoice from Landlord, reimburse Landlord for all costs and expenses incurred
in reviewing and approving the equipment lease, security agreement, and nondisturbance agreement, including, without limitation, reasonable attorneys’ fees and costs. 
 ARTICLE 8: DEFAULTS AND REMEDIES 
 8.1 Events of Default. The occurrence of any one or more of
the following shall be an event of default (“Event of Default”) hereunder without any advance notice to Tenant unless specified herein: 
 (a) Tenant fails to pay in full any installment of Base Rent, any Additional Rent or any other monetary obligation payable by Tenant under this Lease (including the Option Price), within 10 days after such payment is due. 

(b) Tenant, Subtenant or Guarantor (where applicable) fails to comply with any covenant set forth in Article 14, §15.6, §15.7,
§15.8 or Article 20 of this Lease. 
 (c) Tenant fails to observe and perform any other covenant, condition or agreement under this
Lease to be performed by Tenant and [i] such failure continues for a period of 30 days after written notice thereof is given to Tenant by Landlord; or [ii] if, by reason of the nature of such default it cannot be remedied within
30 days, Tenant fails to proceed with diligence reasonably satisfactory to Landlord after receipt of the notice to cure the default or, in any event, fails to cure such default within 60 days after receipt of the notice (subject to
extensions in accordance with §7.1). The foregoing notice and cure provisions do not apply to any Event of Default otherwise specifically described in any other subsection of §8.1. 
  

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 (d) Tenant or Subtenant abandons or vacates any Facility Property or any material part thereof, ceases to
operate any Facility, ceases to do business or ceases to exist for any reason for any one or more days. 
 (e) [i] The filing by Tenant,
Subtenant or Guarantor of a petition under the Bankruptcy Code or the commencement of a bankruptcy or similar proceeding by Tenant, Subtenant or Guarantor; [ii] the failure by Tenant, Subtenant or Guarantor within 90 days to dismiss an
involuntary bankruptcy petition or other commencement of a bankruptcy, reorganization or similar proceeding against such party, or to lift or stay any execution, garnishment or attachment of such consequence as will impair its ability to carry on
its operation at the Leased Property; [iii] the entry of an order for relief under the Bankruptcy Code in respect of Tenant, Subtenant or Guarantor; [iv] any assignment by Tenant, Subtenant or Guarantor for the benefit of its creditors;
[v] the entry by Tenant, Subtenant or Guarantor into an agreement of composition with its creditors; [vi] the approval by a court of competent jurisdiction of a petition applicable to Tenant, Subtenant or Guarantor in any proceeding for
its reorganization instituted under the provisions of any state or federal bankruptcy, insolvency, or similar laws; [vii] appointment by final order, judgment, or decree of a court of competent jurisdiction of a receiver of a whole or any
substantial part of the properties of Tenant, Subtenant or Guarantor (provided such receiver shall not have been removed or discharged within 90 days of the date of his qualification). 
 (f) [i] Any receiver, administrator, custodian or other person takes possession or control of any of the Leased Property and continues in possession
for 60 days; [ii] any writ against any of the Leased Property is not released within 60 days; [iii] any judgment is rendered or proceedings are instituted against the Leased Property, Tenant or Subtenant which affect the Leased
Property or any part thereof, which is not dismissed for 60 days (except as otherwise provided in this section); [iv] all or a substantial part of the assets of Tenant, Subtenant or Guarantor are attached, seized, subjected to a writ or
distress warrant, or are levied upon, or come into the possession of any receiver, trustee, custodian, or assignee for the benefit of creditors; [v] Tenant, Subtenant or Guarantor is enjoined, restrained, or in any way prevented by court order,
or any proceeding is filed or commenced seeking to enjoin, restrain or in any way prevent Tenant, Subtenant or Guarantor from conducting all or a substantial part of its business or affairs; or [vi] except as otherwise permitted hereunder, a
final notice of lien, levy or assessment is filed of record with respect to all or any part of the Leased Property or any property of Tenant or Subtenant located at the Leased Property and is not dismissed, discharged, or bonded-off within
30 days. 
 (g) Any representation or warranty made by Tenant, Subtenant or Guarantor in this Lease or any other document executed in
connection with this Lease, any guaranty of or other security for this Lease, or any report, certificate, application, financial statement or other instrument furnished by Tenant, Subtenant or Guarantor pursuant hereto or thereto shall prove to be
false or incorrect in any material respect as of the date made. 
 (h) Tenant, any Subtenant, any Guarantor, or any Affiliate defaults on any
indebtedness or obligation to Landlord or any Landlord Affiliate, any Obligor Group Obligation or any agreement with Landlord or any Landlord Affiliate, including, without limitation, any lease with Landlord or any Landlord Affiliate or any
Disbursing Agreement, or 
  

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 the occurrence of a default under any Material Obligation, and any applicable grace or cure period with respect to
default under such indebtedness or obligation expires without such default having been cured. This provision applies to all such indebtedness, obligations and agreements as they may be amended, modified, extended, or renewed from time to time.

 (i) Any guarantor of this Lease dies, dissolves, terminates, is adjudicated incompetent, files a petition in bankruptcy, or is adjudicated
insolvent under the Bankruptcy Code or any other insolvency law, or fails to comply with any covenant or requirement of such guarantor set forth in this Lease or in the guaranty of such guarantor, and in the case of the death or incompetency of an
individual guarantor only, Tenant fails within 30 days to deliver to Landlord a substitute guaranty or other collateral reasonably satisfactory to Landlord. 
 (j) The license for the Facility or any other Government Authorization is canceled, suspended, reduced to provisional or temporary, or otherwise invalidated and not reinstated within 60 days thereafter, or
license revocation or decertification proceedings are commenced against Tenant or Subtenant and not dismissed within 60 days, or any reduction occurs in the number of licensed beds or units at the Facility and such original number of beds is
not reinstated within 60 days, or an admissions ban is issued for the Facility and not dismissed within 60 days. 
 8.2
Remedies. Upon the occurrence of an Event of Default under this Lease or any Lease Document, and at any time thereafter until Landlord waives the default in writing or acknowledges cure of the default in writing, at Landlord’s option,
without declaration, notice of nonperformance, protest, notice of protest, notice of default, notice to quit or any other notice or demand of any kind, Landlord may exercise any and all rights and remedies provided in this Lease or any Lease
Document or otherwise provided under law or in equity, including, without limitation, any one or more of the following remedies: 
 (a)
Landlord may re-enter and take possession of the Leased Property without terminating this Lease, and lease the Leased Property for the account of Tenant, holding Tenant liable for all costs of Landlord in reletting the Leased Property and for the
difference in the amount received by such reletting and the amounts payable by Tenant under the Lease. 
 (b) Landlord may terminate this
Lease by written notice to Tenant, exclude Tenant from possession of the Leased Property and use efforts to lease the Leased Property to others, holding Tenant liable for the difference in the amounts received from such reletting and the amounts
payable by Tenant under this Lease. 
 (c) Landlord may re-enter the Leased Property and have, repossess and enjoy the Leased Property as if
this Lease had not been made, and in such event, Tenant and its successors and assigns shall remain liable for any contingent or unliquidated obligations or sums owing at the time of such repossession. 
 (d) Landlord may have access to and inspect, examine and make copies of the books and records and any and all accounts, data and income tax and other
returns of Tenant insofar as they pertain to the Leased Property. 
  

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 (e) Landlord may accelerate all of the unpaid Rent hereunder based on the then current Rent Schedule and
Tenant shall be liable for the present value of the aggregate Rent for the unexpired term of this Lease, discounted at an annual rate equal to the then-current U.S. Treasury Note rate for the closest comparable term. 
 (f) Landlord may demand payment from Tenant of an amount equal to the Outstanding Straight Line Rent Receivable accrued by Landlord under this Lease as
of the date that Tenant surrenders possession of the Leased Property (“Surrender Date”). As used herein, the “Outstanding Straight Line Rent Receivable” means [i] the amount of Base Rent that would have accrued under this
Lease, up to the Surrender Date, if the Base Rent were calculated based upon the mathematical average of Landlord’s rate of return over the entire Initial Term after taking into account the Inflation Adjustment (as defined in the Term Sheet)
for each Lease Year of the entire Initial Term, minus [ii] the amount of Base Rent payable under this Lease, up to the Surrender Date, based upon the Rent Schedule, i.e. based upon Landlord’s rate of return including the annual Inflation
Adjustment imposed for each Lease Year up to the Surrender Date, as computed in accordance with generally accepted accounting principles. 
 (g) Landlord may take whatever action at law or in equity as may appear necessary or desirable to collect the Rent and other amounts payable under this Lease then due and thereafter to become due, or to enforce performance and observance of
any obligations, agreements or covenants of Tenant under this Lease. 
 (h) With respect to the Collateral or any portion thereof and Secured
Party’s security interest therein, Secured Party may exercise all of its rights as secured party under Article 9 of the Uniform Commercial Code. Secured Party may sell the Collateral by public or private sale upon five days’ notice to
Tenant or Subtenant. Tenant and Subtenant agree that a commercially reasonable manner of disposition of the Collateral shall include, without limitation and at the option of Secured Party, a sale of the Collateral, in whole or in part, concurrently
with the sale of the Leased Property. 
 (i) Secured Party may obtain control over and collect the Receivables and apply the proceeds of the
collections to satisfaction of the Obligor Group Obligations unless prohibited by law. Tenant and Subtenant appoint HCN or its designee as attorney for Tenant and Subtenant, respectively, with powers [i] to receive, to endorse, to sign and/or
to deliver, in Tenant’s or Subtenant’s name or Secured Party’s name, any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, and to waive demand, presentment, notice of dishonor,
protest, and any other notice with respect to any such instrument; [ii] to sign Tenant’s or Subtenant’s name on any invoice or bill of lading relating to any Receivable, drafts against account debtors, assignments and verifications of
Receivables, and notices to account debtors; [iii] to send verifications of Receivables to any account debtor; and [iv] to do all other acts and things necessary to carry out this Lease. Secured Party shall not be liable for any omissions,
commissions, errors of judgment, or mistakes in fact or law made in the exercise of any such powers. At Secured Party’s option, Tenant and Subtenant shall [i] provide Secured Party a full accounting of all amounts received on account of
Receivables with such frequency and in such form as Secured Party may require, either with or without applying all collections on Receivables in payment of the Obligor Group Obligations or [ii] deliver to Secured Party on the day of receipt all
such collections in the form received and duly endorsed 
  

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 by Tenant or Subtenant, as applicable. At Secured Party’s request, Tenant and Subtenant shall institute any action
or enter into any settlement determined by Secured Party to be necessary to obtain recovery or redress from any account debtor in default of Receivables. Secured Party may give notice of its security interest in the Receivables to any or all account
debtors with instructions to make all payments on Receivables directly to Secured Party, thereby terminating Tenant’s and Subtenant’s authority to collect Receivables. After terminating Tenant’s and Subtenant’s authority to
enforce or collect Receivables, Secured Party shall have the right to take possession of any or all Receivables and records thereof and is hereby authorized to do so, and only Secured Party shall have the right to collect and enforce the
Receivables. Prior to the occurrence of an Event of Default, at Tenant’s and Subtenant’s cost and expense, but on behalf of Secured Party and for Secured Party’s account, Tenant and Subtenant shall collect or otherwise enforce all
amounts unpaid on Receivables and hold all such collections in trust for Secured Party, but Tenant and Subtenant may commingle such collections with Tenant’s and Subtenant’s own funds, until Tenant’s and Subtenant’s authority to
do so has been terminated, which may be done only after an Event of Default. Notwithstanding any other provision hereof, Secured Party does not assume any of Tenant’s or Subtenant’s obligations under any Receivable, and Secured Party shall
not be responsible in any way for the performance of any of the terms and conditions thereof by Tenant or Subtenant. 
 (j) Without waiving
any prior or subsequent Event of Default, Landlord may waive any Event of Default or, with or without waiving any Event of Default, remedy any default. 
 (k) Landlord may terminate its obligation, if any, to disburse any further Landlord Payments. 
 (l) Landlord
may enter and take possession of the Land or any portion thereof and any one or more Facilities without terminating this Lease and complete construction and renovation of the Improvements (or any part thereof) and perform the obligations of Tenant
under the Lease Documents. Without limiting the generality of the foregoing and for the purposes aforesaid, Tenant hereby appoints HCN its lawful attorney-in-fact with full power to do any of the following: [i] complete construction, renovation
and equipping of the Improvements in the name of Tenant; [ii] use unadvanced funds remaining under the Investment Amount or Maximum Contingent Payments Amount, as applicable, or funds that may be reserved, escrowed, or set aside for any
purposes hereunder at any time, or to advance funds in excess of the Investment Amount or Maximum Contingent Payments Amount, as applicable, to complete the Improvements; [iii] make changes in the plans and specifications that shall be
necessary or desirable to complete the Improvements in substantially the manner contemplated by the plans and specifications; [iv] retain or employ new general contractors, subcontractors, architects, engineers, and inspectors as shall be
required for said purposes; [v] pay, settle, or compromise all existing bills and claims, which may be liens or security interests, or to avoid such bills and claims becoming liens against the Facility or security interest against fixtures or
equipment, or as may be necessary or desirable for the completion of the construction and equipping of the Improvements or for the clearance of title; [vi] execute all applications and certificates, in the name of Tenant, that may be required
in connection with any construction; [vii] do any and every act that Tenant might do in its own behalf, to prosecute and defend all actions or proceedings in connection with the Improvements; and [viii] to execute, deliver and file all
applications and 
  

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 other documents and take any and all actions necessary to transfer the operations of the Facility to Secured Party or
Secured Party’s designee. This power of attorney is a power coupled with an interest and cannot be revoked; provided, however, it expires upon Tenant’s exercise of the Option to Purchase or upon expiration of all obligations of Tenant
under the Lease. 
 (m) Landlord may apply, with or without notice to Tenant, for the appointment of a receiver (“Receiver”) for
Tenant or Tenant’s business or for the Leased Property. Unless prohibited by law, such appointment may be made either before or after termination of Tenant’s possession of the Leased Property, without notice, without regard to the solvency
or insolvency of Tenant at the time of application for such Receiver and without regard to the then value of the Leased Property, and Secured Party may be appointed as Receiver. After the occurrence of an Event of Default, Landlord shall be entitled
to appointment of a receiver as a matter of right and without the need to make any showing other than the existence of an Event of Default. The Receiver shall have the power to collect the rents, income, profits and Receivables of the Leased
Property during the pendency of the receivership and all other powers which may be necessary or are usual in such cases for the protection, possession, control, management and operation of the Leased Property during the whole of said proceeding. All
sums of money received by the Receiver from such rents and income, after deducting therefrom the reasonable charges and expenses paid or incurred in connection with the collection and disbursement thereof, shall be applied to the payment of the Rent
or any other monetary obligation of Tenant under this Lease, including, without limitation, any losses or damages incurred by Landlord under this Lease. Tenant, if requested to do so, will consent to the appointment of any such Receiver as
aforesaid. 
 (n) Landlord may terminate any management agreement with respect to any of the Leased Property and shall have the right to
retain one or more managers for the Leased Property at the expense of Tenant, such manager(s) to serve for such term and at such compensation as Landlord reasonably determines is necessary under the circumstances. 
 8.3 Right of Setoff. Landlord may, and is hereby authorized by Tenant to, at any time and from time to time without advance notice to Tenant (any
such notice being expressly waived by Tenant), setoff or recoup and apply any and all sums held by Landlord, any indebtedness of Landlord to Tenant, and any claims by Tenant against Landlord, against any obligations of Tenant hereunder and against
any claims by Landlord against Tenant, whether or not such obligations or claims of Tenant are matured and whether or not Landlord has exercised any other remedies hereunder. The rights of Landlord under this section are in addition to any other
rights and remedies Landlord may have against Tenant. 
 8.4 Performance of Tenant’s Covenants. Landlord may perform any
obligation of Tenant which Tenant has failed to perform within five days after Landlord has sent a written notice to Tenant informing it of its specific failure. Tenant shall reimburse Landlord on demand, as Additional Rent, for any reasonable
expenditures thus incurred by Landlord and shall pay interest thereon at Landlord’s rate of return as provided in the Term Sheet. 
 8.5
Late Payment Charge. Tenant acknowledges that any default in the payment of any installment of Rent payable hereunder will result in loss and additional expense to Landlord in servicing any indebtedness of Landlord secured by the Leased
Property, handling 
  

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 such delinquent payments, and meeting its other financial obligations, and because such loss and additional expense is
extremely difficult and impractical to ascertain, Tenant agrees that in the event any Rent payable to Landlord hereunder is not paid within 10 days after the due date, Tenant shall pay a late charge of 5% of the amount of the overdue payment as
a reasonable estimate of such loss and expenses, unless applicable law requires a lesser charge, in which event the maximum rate permitted by such law may be charged by Landlord. The 10-day grace period set forth in this section shall not extend the
time for payment of Rent or the period for curing any default or constitute a waiver of such default. 
 8.6 Default Rent. At
Landlord’s option at any time after the occurrence of an Event of Default and while such Event of Default remains uncured, the Base Rent payable under this Lease shall be increased to reflect Landlord’s rate of return of 18.5% per
annum on the Investment Amount (“Default Rent”); provided, however, that if a court of competent jurisdiction determines that any other amounts payable under this Lease are deemed to be interest, the Default Rent shall be adjusted to
ensure that the aggregate interest payable under this Lease does not accrue at a rate in excess of the maximum legal rate. 
 8.7
Attorneys’ Fees. Tenant shall pay all reasonable costs and expenses incurred by Landlord in enforcing or preserving Landlord’s rights under this Lease, whether or not an Event of Default has actually occurred or has been declared
and thereafter cured, including, without limitation, [i] the fees, expenses, and costs of any litigation, appellate, receivership, administrative, bankruptcy, insolvency or other similar proceeding; [ii] reasonable attorney, paralegal,
consulting and witness fees and disbursements, whether in-house counsel or outside counsel; and [iii] the expenses, including, without limitation, lodging, meals, and transportation, of Landlord and its employees, agents, attorneys, and
witnesses in preparing for litigation, administrative, bankruptcy, insolvency or other similar proceedings and attendance at hearings, depositions, and trials in connection therewith. All such reasonable costs, expenses, charges and fees payable by
Tenant shall be deemed to be Additional Rent under this Lease. 
 8.8 Escrows and Application of Payments. As security for the
performance of the Obligor Group Obligations, Tenant hereby assigns to Landlord all its right, title, and interest in and to all monies escrowed with Landlord under this Lease and all deposits with utility companies, taxing authorities and insurance
companies; provided, however, that Landlord shall not exercise its rights hereunder until an Event of Default has occurred. Any payments received by Landlord under any provisions of this Lease during the existence or continuance of an Event of
Default shall be applied to the Obligor Group Obligations in the order which Landlord may determine. 
 8.9 Remedies Cumulative. The
remedies of Landlord herein are cumulative to and not in lieu of any other remedies available to Landlord at law or in equity. The use of any one remedy shall not be taken to exclude or waive the right to use any other remedy. 
 8.10 Waivers. Tenant waives [i] any notice required by statute or other law as a condition to bringing an action for possession of, or
eviction from, any of the Leased Property, [ii] any right of re-entry or repossession, [iii] any right to a trial by jury in any action or proceeding arising out of or relating to this Lease, [iv] any objections, defenses, claims or
rights with respect to the exercise by Landlord of any rights or remedies, [v] any right of redemption 
  

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 whether pursuant to statute, at law or in equity, [vi] all presentments, demands for performance, notices of
nonperformance, protest, notices of protest, notices of dishonor, notices to quit and any other notice or demand of any kind, and [vii] all notices of the existence, creation or incurring of any obligation or advance under this Lease before or
after this date. 
 8.11 Obligations Under the Bankruptcy Code. Upon filing of a petition by or against Tenant under the Bankruptcy
Code, Tenant, as debtor and as debtor-in-possession, and any trustee who may be appointed with respect to the assets of or estate in bankruptcy of Tenant, agree to pay monthly in advance on the first day of each month, as reasonable compensation for
the use and occupancy of the Leased Property, an amount equal to all Rent due pursuant to this Lease. Included within and in addition to any other conditions or obligations imposed upon Tenant or its successor in the event of the assumption and/or
assignment of this Lease are the following: [i] the cure of any monetary defaults and reimbursement of pecuniary loss within not more than five Business Days of assumption and/or assignment; [ii] the deposit of an additional amount equal
to not less than three months’ Base Rent, which amount is agreed to be a necessary and appropriate deposit to adequately assure the future performance under this Lease of the Tenant or its assignee; and [iii] the continued use of the
Leased Property for the Facility Uses. Nothing herein shall be construed as an agreement by Landlord to any assignment of this Lease or a waiver of Landlord’s right to seek adequate assurance of future performance in addition to that set forth
hereinabove in connection with any proposed assumption and/or assignment of this Lease. 
 ARTICLE 9: DAMAGE AND DESTRUCTION

 9.1 Notice of Casualty. If the Leased Property shall be destroyed, in whole or in part, or damaged by fire, flood, windstorm or
other casualty in excess of $100,000.00 (a “Casualty”), Tenant shall give written notice thereof to Landlord within one Business Day after the occurrence of the Casualty. Within 15 days after the occurrence of the Casualty or as soon
thereafter as such information is reasonably available to Tenant, Tenant shall provide the following information to Landlord: [i] the date of the Casualty; [ii] the nature of the Casualty; [iii] a description of the damage or
destruction caused by the Casualty, including the type of Leased Property damaged and the area of the Improvements damaged; [iv] a preliminary estimate of the cost to repair, rebuild, restore or replace the Leased Property; [v] a
preliminary estimate of the schedule to complete the repair, rebuilding, restoration or replacement of the Leased Property; [vi] a description of the anticipated property insurance claim, including the name of the insurer, the insurance
coverage limits, the deductible amount, the expected settlement amount, and the expected settlement date; and [vii] a description of the business interruption claim, including the name of the insurer, the insurance coverage limits, the
deductible amount, the expected settlement amount, and the expected settlement date. Within five days after request from Landlord, Tenant will provide Landlord with copies of all correspondence to the insurer and any other information reasonably
requested by Landlord. 
 9.2 Substantial Destruction. 
 9.2.1 If any Facility’s Improvements are substantially destroyed at any time other than during the final 18 months of the Initial Term or any Renewal Term, Tenant shall promptly rebuild and restore such
Improvements in accordance with §9.4 and Landlord shall 
  

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 make the insurance proceeds available to Tenant for such restoration. The term “substantially destroyed” means
any casualty resulting in the loss of use of 50% or more of the licensed beds at any one Facility. 
 9.2.2 If any Facility’s
Improvements are substantially destroyed during the final 18 months of the Initial Term or any Renewal Term, Landlord may elect to terminate this Lease with respect to the entire Leased Property or terminate this Lease and all Affiliate Leases,
at Landlord’s option, and retain the insurance proceeds unless Tenant exercises its option to renew as set forth in §9.2.3 or exercises its option to purchase as set forth in §9.2.4. If Landlord elects to terminate, Landlord shall
give notice (“Termination Notice”) of its election to terminate this Lease (or this Lease and all Affiliate Leases, if elected by Landlord) within 30 days after receipt of Tenant’s notice of the damage. If Tenant does not
exercise its option to renew under §9.2.3 or its option to purchase under §9.2.4 within 15 days after delivery of the Termination Notice, this Lease (or this Lease and all Affiliate Leases, if elected by Landlord) shall terminate on
the 15th day after delivery of the Termination Notice. If this Lease (or this Lease and all Affiliate Leases,
if elected by Landlord) is so terminated, Tenant shall be liable to Landlord for all Rent and all other obligations accrued under this Lease through the effective date of termination and each Affiliate shall be liable to Landlord for all Rent and
all other obligations accrued under its respective Affiliate Lease through the effective date of termination. 
 9.2.3 If any Facility’s
Improvements are substantially destroyed during the final 18 months of the Initial Term or the Renewal Term and Landlord gives the Termination Notice, Tenant shall have the option to renew this Lease with respect to the entire Leased Property
(but not any part thereof). Tenant shall give Landlord irrevocable notice of Tenant’s election to renew, and each Affiliate Tenant shall give irrevocable notice of renewal, within 15 days after delivery of the Termination Notice. If Tenant
and each Affiliate Tenant elect to renew, the Renewal Term will be in effect for the balance of the then current Term plus a 15 -year period. The Renewal Term will commence on the third day following Landlord’s receipt of Tenant’s and each
Affiliate Tenant’s notice of renewal. All other terms of this Lease for the Renewal Term shall be in accordance with Article 12. The Improvements will be restored by Tenant in accordance with the provisions of this Article 9 regarding
partial destruction. 
 9.2.4 If any Facility’s Improvements are substantially destroyed during the final 18 months of the Initial
Term or any Renewal Term and Landlord gives the Termination Notice, Tenant shall have the option to purchase the entire Leased Property (but not any part thereof). Tenant shall give Landlord notice of Tenant’s election to purchase, and if
required by Landlord, each Affiliate Tenant shall give notice of its election to purchase its respective Affiliate Facility, within 15 days after delivery of the Termination Notice. If Tenant and each Affiliate Tenant elect to purchase their
respective Leased Property, the Option Price will be determined in accordance with §13.2 and the Fair Market Value will be determined in accordance with §13.3 except as otherwise provided in this section. For purposes of determining the
Fair Market Value, the Leased Property will be valued as if it had been restored to be equal in value to the Leased Property existing immediately prior to the occurrence of the damage. All other terms of the option to purchase shall be in accordance
with Article 13. Landlord shall hold the insurance proceeds until the closing of the purchase of the Leased Property and at closing shall deliver the proceeds to Tenant. 
  

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 9.3 Partial Destruction. If any Facility’s Improvements are not substantially destroyed, then
Tenant shall comply with the provisions of §9.4 and Landlord shall make the insurance proceeds available to Tenant for such restoration. 
 9.4 Restoration. Tenant shall promptly repair, rebuild, or restore the damaged Leased Property, at Tenant’s expense, so as to make the Leased Property at least equal in value to the Leased Property existing immediately prior to
such occurrence and as nearly similar to it in character as is practicable and reasonable. Before beginning such repairs or rebuilding, or letting any contracts in connection with such repairs or rebuilding, Tenant will submit for Landlord’s
approval, which approval Landlord will not unreasonably withhold or delay, plans and specifications meeting the requirements of §16.2 for such repairs or rebuilding. Promptly after receiving Landlord’s approval of the plans and
specifications and receiving the proceeds of insurance, Tenant will begin such repairs or rebuilding and will prosecute the repairs and rebuilding to completion with diligence, subject, however, to strikes, lockouts, acts of God, embargoes,
governmental restrictions, and other causes beyond Tenant’s reasonable control. Landlord will make available to Tenant the net proceeds of any fire or other casualty insurance paid to Landlord for such repair or rebuilding as the same
progresses, after deduction of any costs of collection, including attorneys’ fees. Payments will be made against properly certified vouchers of a competent architect in charge of the work and approved by Landlord. Payments for deposits for the
repairing or rebuilding or delivery of materials to the Facility will be made upon Landlord’s receipt of evidence reasonably satisfactory to Landlord that such payments are required in advance. Prior to commencing the repairing or rebuilding,
Tenant shall deliver to Landlord for Landlord’s approval a schedule setting forth the estimated monthly draws for such work. Landlord will contribute to such payments out of the insurance proceeds an amount equal to the proportion that the
total net amount received by Landlord from insurers bears to the total estimated cost of the rebuilding or repairing, multiplied by the payment by Tenant on account of such work. Landlord may, however, withhold 10% from each payment until the work
is completed and proof has been furnished to Landlord that no lien or liability has attached or will attach to the Leased Property or to Landlord in connection with such repairing or rebuilding. Upon the completion of rebuilding and the furnishing
of such proof, the balance of the net proceeds of such insurance payable to Tenant on account of such repairing or rebuilding will be paid to Tenant. Tenant will obtain and deliver to Landlord a temporary or final certificate of occupancy before the
damaged Leased Property is reoccupied for any purpose. Tenant shall complete such repairs or rebuilding free and clear of mechanic’s or other liens, and in accordance with the building codes and all applicable laws, ordinances, regulations, or
orders of any state, municipal, or other public authority affecting the repairs or rebuilding, and also in accordance with all requirements of the insurance rating organization, or similar body. Any remaining proceeds of insurance after such
restoration will be Tenant’s property. 
 9.5 Insufficient Proceeds. If the proceeds of any insurance settlement are not
sufficient to pay the costs of Tenant’s repair, rebuilding or restoration under §9.4 in full, Tenant shall deposit with Landlord at Landlord’s option, and within 10 days of Landlord’s request, an amount sufficient in
Landlord’s reasonable judgment to complete such repair, rebuilding or restoration. Tenant shall not, by reason of the deposit or payment, be entitled to any reimbursement from Landlord or diminution in or postponement of the payment of the
Rent. 
  

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 9.6 Not Trust Funds. Notwithstanding anything herein or at law or equity to the contrary, none of
the insurance proceeds paid to Landlord as herein provided shall be deemed trust funds, and Landlord shall be entitled to dispose of such proceeds as provided in this Article 9. Tenant expressly assumes all risk of loss, including a decrease in
the use, enjoyment or value, of the Leased Property from any casualty whatsoever, whether or not insurable or insured against. 
 9.7
Landlord’s Inspection. During the progress of such repairs or rebuilding, Landlord and its architects and engineers may, from time to time, inspect the Leased Property and will be furnished, if required by them, with copies of all plans,
shop drawings, and specifications relating to such repairs or rebuilding. Tenant will keep all plans, shop drawings, and specifications at the building, and Landlord and its architects and engineers may examine them at all reasonable times. If,
during such repairs or rebuilding, Landlord and its architects and engineers determine that the repairs or rebuilding are not being done in accordance with the approved plans and specifications, Landlord will give prompt notice in writing to Tenant,
specifying in detail the particular deficiency, omission, or other respect in which Landlord claims such repairs or rebuilding do not accord with the approved plans and specifications. Upon the receipt of any such notice, Tenant will cause
corrections to be made to any deficiencies, omissions, or such other respect. Tenant’s obligations to supply insurance, according to Article 4, will be applicable to any repairs or rebuilding under this section. 
 9.8 Landlord’s Costs. Tenant shall, within 30 days after receipt of an invoice from Landlord, pay the reasonable costs, expenses, and
fees of any architect or engineer employed by Landlord to review any plans and specifications and to supervise and approve any construction, or for any services rendered by such architect or engineer to Landlord as contemplated by any of the
provisions of this Lease, or for any services performed by Landlord’s attorneys in connection therewith. 
 9.9 No Rent
Abatement. Rent will not abate pending the repairs or rebuilding of the Leased Property. 
 ARTICLE 10: CONDEMNATION 
 10.1 Total Taking. If, by exercise of the right of eminent domain or by conveyance made in response to the threat of the exercise of such right
(“Taking”), any entire Facility Property is taken, or so much of any Facility Property is taken that the Facility Property cannot be used by Tenant for the purposes for which it was used immediately before the Taking, then this Lease will
end with respect to such Facility Property only on the earlier of the vesting of title to the Facility Property in the condemning authority or the taking of possession of the Facility Property by the condemning authority. Upon such termination, the
Investment Amount shall be reduced by the actual net award for such Taking received by Landlord and Rent hereunder shall be reduced accordingly unless there is only one Facility Property subject to this Lease in which case the Lease will terminate.
The termination of this Lease as to one Facility Property due to a taking is the result of circumstances beyond the control of Landlord and Tenant and the parties affirm that, except for such specific isolated situation, this Lease is intended to be
a single indivisible lease. All damages awarded for such Taking under the power of eminent domain shall be the property of Landlord, whether such damages shall be awarded as 
  

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 compensation for diminution in value of the leasehold or the fee of the Facility Property, provided Tenant shall be
entitled to file a claim for all amounts permitted Tenant under applicable law. 
 10.1.1 If any Facility Property is taken during the final
18 months of the Initial Term or any Renewal Term, Landlord shall have the option to terminate this Lease with respect to all Leased Property. If Landlord elects to terminate this Lease with respect to all Leased Property, Tenant shall have the
option to purchase all of the Leased Property. Tenant shall give Landlord notice of Tenant’s election to purchase within 15 days after delivery of the notice of Landlord’s intent to terminate. If Tenant elects to purchase all of the
Leased Property, the Option Price will be determined in accordance with §13.2 and the Fair Market Value will be determined in accordance with §13.3. All other terms of the option to purchase shall be in accordance with Article 13.

 10.2 Partial Taking. If, after a Taking, so much of the Facility Property remains that the Facility Property can be used for
substantially the same purposes for which it was used immediately before the Taking, then [i] this Lease will end as to the part taken on the earlier of the vesting of title to such Leased Property in the condemning authority or the taking of
possession of such Leased Property by the condemning authority and the Rent will be adjusted accordingly in a fair and equitable manner; [ii] at its cost, Tenant shall restore so much of the Facility Property as remains to a sound architectural
unit substantially suitable for the purposes for which it was used immediately before the Taking, using good workmanship and new, first-class materials; [iii] upon completion of the restoration, Landlord will pay Tenant the lesser of the net
award made to Landlord on the account of the Taking (after deducting from the total award, attorneys’, appraisers’, and other fees and costs incurred in connection with the obtaining of the award and amounts paid to the holders of
mortgages secured by the Facility Property), or Tenant’s actual out-of-pocket costs of restoring the Facility Property; and [iv] Landlord shall be entitled to the balance of the net award to be applied to any outstanding Obligor
Obligation. The restoration shall be completed in accordance with §§9.4, 9.5, 9.7, 9.8 and 9.9 with such provisions deemed to apply to condemnation instead of casualty. 
 10.3 Condemnation Proceeds Not Trust Funds. Notwithstanding anything in this Lease or at law or equity to the contrary, none of the condemnation
award paid to Landlord shall be deemed trust funds, and Landlord shall be entitled to dispose of such proceeds as provided in this Article 10. Tenant expressly assumes all risk of loss, including a decrease in the use, enjoyment, or value, of
the Leased Property from any Condemnation. 
 ARTICLE 11: TENANT’S PROPERTY 
 11.1 Tenant’s Property. Tenant shall install, place, and use on the Leased Property such fixtures, furniture, equipment, inventory and other
personal property in addition to Landlord’s Personal Property as may be required or as Tenant may, from time to time, deem necessary or useful to operate the Leased Property for its permitted purposes. All fixtures, furniture, equipment,
inventory, and other personal property installed, placed, or used on the Leased Property which is owned by Tenant or leased by Tenant from third parties is hereinafter referred to as “Tenant’s Property”. 
  

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 11.2 Requirements for Tenant’s Property. Tenant shall comply with all of the following
requirements in connection with Tenant’s Property: 
 (a) Tenant shall, at Tenant’s sole cost and expense, maintain, repair, and
replace Tenant’s Property. 
 (b) Tenant shall, at Tenant’s sole cost and expense, keep Tenant’s Property insured against loss
or damage by fire, vandalism and malicious mischief, sprinkler leakage, earthquake, and other physical loss perils commonly covered by fire and extended coverage, boiler and machinery, and difference in conditions insurance in an amount not less
than 90% of the then full replacement cost thereof. Tenant shall use the proceeds from any such policy for the repair and replacement of Tenant’s Property to the extent needed to operate the Facility in accordance with the terms set forth
herein. The insurance shall meet the requirements of §4.3. 
 (c) Tenant shall pay all taxes applicable to Tenant’s Property.

 (d) If Tenant’s Property is damaged or destroyed by fire or any other cause, Tenant shall promptly repair or replace Tenant’s
Property unless Landlord elects to terminate this Lease pursuant to §9.2.2. 
 (e) Unless an Event of Default or any event which, with
the giving of notice or lapse of time, or both, would constitute an Event of Default has occurred, Tenant may remove Tenant’s Property from the Leased Property from time to time provided that [i] the items removed are not required to
operate the Leased Property for the Facility Uses (unless such items are being replaced by Tenant); and [ii] Tenant repairs any damage to the Leased Property resulting from the removal of Tenant’s Property. 
 (f) Tenant shall not, without the prior written consent of Landlord or as otherwise provided in this Lease, remove any Tenant’s Property or Leased
Property. Tenant shall, at Landlord’s option, remove Tenant’s Property upon the termination or expiration of this Lease and shall repair any damage to the Leased Property resulting from the removal of Tenant’s Property. If Tenant
fails to remove Tenant’s Property within 30 days after request by Landlord, then Tenant shall be deemed to have abandoned Tenant’s Property, Tenant’s Property shall become the property of Landlord, and Landlord may remove, store
and dispose of Tenant’s Property. In such event, Tenant shall have no claim or right against Landlord for such property or the value thereof regardless of the disposition thereof by Landlord. Tenant shall pay Landlord, upon demand, all expenses
incurred by Landlord in removing, storing, and disposing of Tenant’s Property and repairing any damage caused by such removal. Tenant’s obligations hereunder shall survive the termination or expiration of this Lease. 
 (g) Tenant shall perform its obligations under any equipment lease or security agreement for Tenant’s Property. For equipment loans or leases for
equipment having an original cost in excess of $150,000.00, Tenant shall cause such equipment lessor or lender to enter into a nondisturbance agreement with Landlord upon terms and conditions reasonably acceptable to Landlord, including, without
limitation, the following: [i] Landlord shall have the right (but not the obligation) to assume such equipment lease or security agreement upon the 
  

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 occurrence of an Event of Default by Tenant hereunder; [ii] such equipment lessor or lender shall notify Landlord of
any default by Tenant under the equipment lease or security agreement and give Landlord a reasonable opportunity to cure such default; and [iii] Landlord shall have the right to assign its interest in the equipment lease or security agreement
and nondisturbance agreement. Tenant shall, within 30 days after receipt of an invoice from Landlord, reimburse Landlord for all costs and expenses incurred in reviewing and approving the equipment lease, security agreement and nondisturbance
agreement, including, without limitation, reasonable attorneys’ fees and costs. 
 ARTICLE 12: RENEWAL OPTIONS 
 12.1 Renewal Options. Tenant has the option to renew (“Renewal Option”) this Lease for one 15-year renewal term (“Renewal
Term”). Tenant can exercise the Renewal Option only upon satisfaction of the following conditions: 
 (a) There shall be no uncured Event
of Default, or any event which with the passage of time or giving of notice would constitute an Event of Default(except that for this limited purpose, any unrepaired casualty or condemnation of a Facility shall not be an Event of Default prohibiting
Tenant from exercising the Renewal Option), at the time Tenant exercises its Renewal Option nor on the date the Renewal Term is to commence. 
 (b) Tenant shall give Landlord irrevocable written notice of renewal no later than the date which is [i] 90 days prior to the expiration date of the then current Term; or [ii] 20 days after Landlord’s delivery of
the Termination Notice as set forth in §9.2.3. 
 (c) Each Affiliate Tenant shall concurrently give irrevocable notice of renewal for
each Affiliate Lease (if applicable). 
 (d) Tenant shall pay all amounts, costs, expenses, charges, Rent and other items payable by Tenant
to Landlord, including, but not limited to, enforcement costs as set forth in §8.7, and the Renewal Fee to Landlord on the Renewal Date. 
 12.2 Effect of Renewal. The following terms and conditions will be applicable if Tenant renews the Lease: 
 (a) Effective
Date. Except as otherwise provided in §9.2.3, the effective date of any Renewal Term will be the first day after the expiration date of the then current Term. The first day of each Renewal Term is also referred to as the Renewal Date.

 (b) Investment Amount. Effective as of the Renewal Date, a single Investment Amount will be computed by summing all Landlord
Payments made to date. 
 (c) Rent Adjustment. Effective as of the Renewal Date, Landlord shall calculate Base Rent for the Renewal
Term based upon the applicable rate of return to Landlord as set forth in the Term Sheet and shall issue a new Rent Schedule reflecting the Base Rent adjustment. Until Tenant receives a revised Rent Schedule from Landlord, Tenant shall for each
month [i] continue to make installments of Base Rent according to the Rent Schedule in effect on the day before the Renewal Date; and [ii] within 10 days following Landlord’s issuance 
  

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 of an invoice, pay the difference between the installment of Base Rent paid to Landlord for such month and the
installment of Base Rent actually due for such month as a result of the renewal of the Lease. 
 (d) Other Terms and Conditions.
Except for the modifications set forth in this §12.2, all other terms and conditions of the Lease will remain the same for the Renewal Term. 
 ARTICLE 13: OPTION TO PURCHASE 
 13.1 Option to Purchase. Landlord hereby grants to Tenant an option to purchase
(“Option to Purchase”) all of the Leased Property (but not any part thereof except as specifically provided herein) in accordance with the terms and conditions of this Article 13. Tenant may exercise its Option to Purchase only by
giving an irrevocable notice of Tenant’s election to purchase the Leased Property (“Purchase Notice”) in accordance with the following except as specifically provided herein: 
 (a) During the Initial Term or any Renewal Term, Tenant and each Affiliate Tenant (if any) must give a Purchase Notice no earlier than the date which is
180 days, and no later than the date which is 90 days, prior to the expiration date of the then current Term of this Lease and each Affiliate Lease (if any). 
 (b) If any Facility’s Improvements are substantially destroyed during the final 18 months of the Initial Term or any Renewal Term, Tenant (and each Affiliate Tenant if required by Landlord) must give a
Purchase Notice within 15 days after Landlord gives the Termination Notice pursuant to §9.2.4. 
 (c) If any Facility Property is
taken during the final 18 months of the Initial Term or any Renewal Term by exercise of the right of eminent domain or by conveyance made in response to the threat of the exercise of such right, Tenant must give a Purchase Notice within
30 days after delivery of the notice of Landlord’s intent to terminate pursuant to §10.1.1. 
 Tenant shall have no right to exercise the
Option to Purchase other than in accordance with the terms of this Article 13. 
 13.2 Option Price. The option price (“Option
Price”) will be an amount equal to the greater of [i] the Investment Amount; or [ii] the Fair Market Value at the time of the option exercise. In addition to the Option Price, Tenant shall pay all closing costs and expenses in
connection with the transfer of the Leased Property to Tenant, including, but not limited to, the following: [a] real property conveyance or transfer fees or deed stamps; [b] title search fees, title insurance commitment fees, and title
insurance premiums; [c] survey fees; [d] environmental assessment fees; [e] recording fees; [f] reasonable attorneys’ fees of Landlord’s counsel; and [g] fees of any escrow agent. Tenant shall also pay all amounts,
costs, expenses, charges, Rent and other items payable by Tenant to Landlord, including, but not limited to, enforcement costs as set forth in §8.7. 
  

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 13.3 Fair Market Value. The fair market value (the “Fair Market Value”) of the Leased
Property shall be determined as follows. 
 13.3.1 The parties shall attempt to determine the Fair Market Value by mutual agreement within
15 days after giving the Purchase Notice. However, if the parties do not agree on the Fair Market Value within such 15-day period, the following provisions shall apply. 
 13.3.2 Landlord and Tenant shall each give the other party notice of the name of an acceptable appraiser 15 days after giving of the Purchase
Notice. The two appraisers will then select a third appraiser within an additional five days. Each appraiser must demonstrate to the reasonable satisfaction of both Landlord and Tenant that it has significant experience in appraising properties
similar to the Leased Property. Within five days after designation, each appraiser shall submit a resume to Landlord and Tenant setting forth such appraiser’s qualifications, including education and experience with similar properties. A notice
of objections to the qualifications of any appraiser shall be given within 10 days after receipt of such resume. If a party fails to timely object to the qualifications of an appraiser, then the appraiser shall be conclusively deemed
satisfactory. If a party gives a timely notice of objection to the qualifications of an appraiser, then the disqualified appraiser shall be replaced by an appraiser selected by the qualified appraisers or, if all appraisers are disqualified, then by
an appraiser selected by a commercial arbitrator acceptable to Landlord and Tenant. 
 13.3.3 The Fair Market Value shall be determined by
the appraisers within 60 days thereafter as follows. Each of the appraisers shall be instructed to prepare an appraisal of the Leased Property in accordance with the following instructions: 
 The Leased Property is to be valued upon the three conventional approaches to estimate value known as the Income, Sales Comparison and Cost Approaches.
Once the approaches are completed, the appraiser correlates the individual approaches into a final value conclusion. 
 The
three approaches to estimate value are summarized as follows: 
 Income Approach: This valuation approach recognizes that the value of
the operating tangible and intangible assets can be represented by the expected economic viability of the business giving returns on and of the assets. 
 Sales Comparison Approach: This valuation approach is based upon the principle of substitution. When a facility is replaceable in the market, the market approach assumes that value tends to be set at the price
of acquiring an equally desirable substitute facility. Since healthcare market conditions change and frequently are subject to regulatory and financing environments, adjustments need to be considered. These adjustments also consider the operating
differences such as services and demographics. 
  

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 Cost Approach: This valuation approach estimates the value of the tangible assets only. Value is
represented by the market value of the land plus the depreciated reproduction cost of all improvements and equipment. 
 In general, the Income and Sales
Comparison Approaches are considered the best representation of value because they cover both tangibles and intangible assets, consider the operating characteristics of the business and have the most significant influence on attracting potential
investors. 
 The appraised values submitted by the three appraisers shall be ranked from highest value to middle value to lowest value, the appraised value
(highest or lowest) which is furthest from the middle appraised value shall be discarded, and the remaining two appraised values shall be averaged to arrive at the Fair Market Value. 
 13.3.4 In the event of any condemnation, similar taking or threat thereof with respect to any part of the Leased Property or any insured or partially
insured casualty loss to any part of the Leased Property after Tenant has exercised an Option to Purchase, but before settlement, the Fair Market Value of the Leased Property shall be redetermined as provided in this §13.3 to give effect to
such condemnation, taking or loss and shall take into account all available condemnation awards and insurance proceeds. 
 13.3.5 Tenant
shall pay, or reimburse Landlord for, all costs and expenses in connection with the appraisals. 
 13.4 Closing. The purchase of the
Leased Property by Tenant shall close on a date agreed to by Landlord and Tenant which shall be not less than 60 days after Landlord’s receipt of the Purchase Notice and not more than 60 days after the Fair Market Value of the Leased
Property has been determined. At the closing, Tenant shall pay the Option Price and all amounts payable under §13.2 in immediately available funds and Landlord shall convey title to the Leased Property to Tenant by a transferable and recordable
quitclaim deed and quitclaim bill of sale. 
 13.5 Failure to Close Option. If Tenant for any reason fails to purchase the Leased
Property after Tenant has given the Purchase Notice, then Tenant shall pay Landlord all costs and expenses incurred by Landlord as a result of the failure to close, including costs of unwinding swap transactions or other interest rate protection
devices and preparing for the closing. Tenant shall continue to be obligated as lessee hereunder for the remainder of the Term. 
 13.6
Failure to Exercise Option to Purchase and Renewal Option. If Tenant for any reason does not exercise its Option to Purchase or Renewal Option in accordance with the terms and conditions of this Lease before the expiration of the then current
Term, Tenant shall be deemed to have forfeited all of Tenant’s rights to exercise the Option to Purchase and Renewal Option. 
  

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 ARTICLE 14: NEGATIVE COVENANTS 
 Until the Obligor Group Obligations shall have been performed in full, Tenant, Subtenant and Guarantor covenant and agree that Tenant and Subtenant (and
Guarantor where applicable) shall not do any of the following without the prior written consent of Landlord: 
 14.1 No Debt. Tenant
and Subtenant shall not create, incur, assume, or permit to exist any indebtedness other than [i] trade debt incurred in the ordinary course of business; [ii] indebtedness relating to the Letter of Credit or Working Capital Letter of
Credit; and [iii] indebtedness that is secured by any Permitted Lien. 
 14.2 No Liens. Tenant and Subtenant shall not create,
incur, or permit to exist any lien, charge, encumbrance, easement or restriction upon the Leased Property or any lien upon or pledge of any interest in Tenant or Subtenant, except for Permitted Liens. 
 14.3 No Guaranties. Tenant and Subtenant shall not create, incur, assume, or permit to exist any guarantee of any loan or other indebtedness
except for the endorsement of negotiable instruments for collection in the ordinary course of business. 
 14.4 No Transfer. Tenant
and Subtenant shall not sell, lease, sublease, mortgage, convey, assign or otherwise transfer any legal or equitable interest in the Leased Property or any part thereof, except for transfers made in connection with any Permitted Lien. 
 14.5 No Dissolution. Company, Tenant, Subtenant, or Entity Guarantor shall not dissolve, liquidate, merge, consolidate or terminate its existence
or sell, assign, lease, or otherwise transfer (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired). 
 14.6 No Change in Operation. No material change shall occur in the licensed operation of the Facility. Each Subtenant shall remain the licensed
operator of the Facility as specified on Exhibit C. 
 14.7 No Investments. Tenant and Subtenant shall not purchase or otherwise
acquire, hold, or invest in securities (whether capital stock or instruments evidencing indebtedness) of or make loans or advances to any person, including, without limitation, any Guarantor, any Affiliate, or any shareholder, member or partner of
Tenant, Guarantor or any Affiliate, except for (i) cash balances temporarily invested in short-term or money market securities; and (ii) investments in capital stock or loans to a wholly-owned subsidiary that becomes a Subtenant and
Guarantor under this Lease. Notwithstanding the foregoing, this negative covenant shall not prohibit Tenant or Subtenant from making a distribution or paying a dividend so long as (a) at the time of such distribution or payment of a dividend no
Event of Default exists; and (b) immediately after such distribution or payment of a dividend, Tenant and Guarantor are not in violation of a financial covenant set forth herein or in the Guaranty, without regard to the time periods provided
for a financial covenant. The financial covenant will be tested on the date of the distribution or payment of the dividend and not at the end of the fiscal quarter. 
  

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 14.8 Contracts. Tenant and Subtenant shall not execute or modify any material contracts or
agreements with respect to the Facility except for contracts and modifications approved by Landlord. Contracts made in the ordinary course of business and in an amount less than $150,000.00 shall not be considered “material” for purposes
of this paragraph. 
 14.9 Subordination of Payments to Affiliates. After the occurrence of an Event of Default and until such Event
of Default is cured, Tenant, Subtenant and Guarantor shall not make any payments or distributions (including, without limitation, salary, bonuses, fees, principal, interest, dividends, liquidating distributions, management fees, cash flow
distributions or lease payments) to Guarantor, any Affiliate, or any shareholder, member or partner of Tenant, Guarantor, or any Affiliate. 
 14.10 Change of Location or Name. Tenant and Subtenant shall not change any of the following: [i] the location of the principal place of business or chief executive office of Tenant or Subtenant, or any office where any of
Tenant’s or Subtenant’s books and records with respect to the Facility are maintained, except after providing Landlord with 30 days prior written notice; [ii] the name under which Tenant or Subtenant conducts any of its business
or operations, except after providing Landlord with 30 days prior written notice; or [iii] reorganize or otherwise change its respective Organization State. 
 ARTICLE 15: AFFIRMATIVE COVENANTS 
 15.1 Perform Obligations. Tenant and Subtenant shall each
perform all of its obligations under this Lease, the Government Authorizations, the Permitted Exceptions, and all Legal Requirements. If applicable, Tenant and each Subtenant shall take all necessary action to obtain all Government Authorizations
required for the operation of the Facility as soon as possible after the Effective Date. 
 15.2 Proceedings to Enjoin or Prevent
Construction. If any proceedings are filed seeking to enjoin or otherwise prevent or declare invalid or unlawful Tenant’s construction, occupancy, maintenance, or operation of the Facility or any portion thereof, Tenant will cause such
proceedings to be vigorously contested in good faith, and in the event of an adverse ruling or decision, prosecute all allowable appeals therefrom, and will, without limiting the generality of the foregoing, resist the entry or seek the stay of any
temporary or permanent injunction that may be entered, and use its best efforts to bring about a favorable and speedy disposition of all such proceedings and any other proceedings. 
 15.3 Documents and Information. 
 15.3.1 Furnish Documents. Tenant and each Subtenant shall periodically during the term of the Lease deliver to Landlord the Annual Financial Statements, Periodic Financial Statements, Annual Facility Budget, Annual Budget and all
other documents, reports, schedules and copies described on Exhibit E within the specified time periods. With each delivery of Annual Financial Statements and Periodic Financial Statements (other than the monthly Facility Financial Statement)
to Landlord, Tenant and each Subtenant shall also deliver to Landlord a certificate signed by the Chief Financial Officer, general partner or managing member (as applicable) of Tenant and each Subtenant, and Quarterly Facility Accounts Receivable
and 
  

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 Accounts Payable Aging Reports all in the form of Exhibit F. After the occurrence of an Event of Default and receipt
of Landlord’s written request, Tenant shall deliver to Landlord an updated Annual Facility Budget and Annual Budget (based on a 12-month rolling forward period) within 10 Business Days after receipt of Landlord’s request. 

15.3.2 Furnish Information. Tenant and each Subtenant shall [i] promptly supply Landlord with such information concerning its financial
condition, affairs and property, as Landlord may reasonably request from time to time hereafter; [ii] promptly notify Landlord in writing of any condition or event that constitutes a breach or event of default of any term, condition, warranty,
representation, or provisions of this Lease or any other agreement, and of any material adverse change in its financial condition; [iii] maintain a standard and modern system of accounting; [iv] permit Landlord or any of its agent or
representatives to have access to and to examine all of its books and records regarding the financial condition of the Facility at any time or times hereafter during business hours and after reasonable oral or written notice; and [v] permit
Landlord to copy and make abstracts from any and all of said books and records, provided Landlord shall maintain the confidentiality of such books and records and financial conditions reflected therein. 
 15.3.3 Further Assurances and Information. Tenant shall, on request of Landlord from time to time, execute, deliver, and furnish documents as may
be necessary to fully consummate the transactions contemplated under this Lease. Within 15 days after a request from Landlord, Tenant and each Subtenant shall provide to Landlord such additional information regarding Tenant, Tenant’s
financial condition, Subtenant, each Subtenant’s financial condition or the Facility as Landlord, or any existing or proposed creditor of Landlord, or any auditor or underwriter of Landlord, may require from time to time, including, without
limitation, a current Tenant’s Certificate and Facility Financial Report in the form of Exhibit F. Upon Landlord’s request, but not more than once every three years, Tenant shall provide to Landlord, at Tenant’s expense, an
appraisal prepared by an MAI appraiser setting forth the current fair market value of the Leased Property. 
 15.3.4 Material
Communications. Tenant and each Subtenant shall transmit to Landlord, within five Business Days after receipt thereof, any material communication affecting a Facility, this Lease, the Legal Requirements or the Government Authorizations (except
that any material communication regarding termination or revocation of a license to operate a Facility, shall be provided within one Business Day of receipt), and Tenant and each Subtenant will promptly respond to Landlord’s inquiry with
respect to such information. Tenant and each Subtenant shall notify Landlord in writing within five Business Days after Tenant or any Subtenant has knowledge of any potential, threatened or existing litigation or proceeding against, or investigation
of, Tenant, Subtenant, Guarantor, or the Facility that may affect the right to operate the Facility or Landlord’s title to the Facility or Tenant’s interest therein. 
 15.3.5 Requirements for Financial Statements. Tenant shall meet or cause the following requirements to be met in connection with the preparation
of the financial statements: [i] all audited financial statements shall be prepared in accordance with general accepted accounting principles consistently applied; [ii] all unaudited financial statements shall be prepared in a manner
substantially consistent with prior unaudited financial statements submitted to Landlord; [iii] all financial statements shall fairly present the financial condition and 
  

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 performance for the relevant period in all material respects; [iv] the audited financial statements shall include
all notes to such audited financial statements and a complete schedule of contingent liabilities and transactions with Affiliates; and [v] the audited financial statements shall contain an unqualified opinion. 
 15.4 Compliance With Laws. Tenant and each Subtenant shall comply with all Legal Requirements and keep all Government Authorizations in full force
and effect. Tenant and each Subtenant shall pay when due all taxes and governmental charges of every kind and nature that are assessed or imposed upon Tenant and each Subtenant, respectively, at any time during the term of the Lease, including,
without limitation, all income, franchise, capital stock, property, sales and use, business, intangible, employee withholding, and all taxes and charges relating to Tenant’s and each Subtenant’s respective business and operations. Tenant
and each Subtenant shall be solely responsible for compliance with all Legal Requirements, including the ADA, and Landlord shall have no responsibility for such compliance. 
 15.5 Broker’s Commission. Tenant shall indemnify Landlord from claims of brokers arising through Tenant by the execution hereof or the
consummation of the transactions contemplated hereby and from expenses incurred by Landlord in connection with any such claims (including attorneys’ fees). 
 15.6 Existence and Change in Ownership. Company, Tenant, Subtenant and each Entity Guarantor shall maintain its existence throughout the term of this Lease. Any change in the equity ownership of Company,
Tenant, Subtenant or any Entity Guarantor that results in a change in Control (as defined within the definition of “Affiliate” in §1.4 hereof) of such entity, shall require Landlord’s prior written consent. Any change in Control
or equity ownership of LCI Holding Company, Inc., LCI Intermediate Holdco, Inc., LCI Holdco, LLC or LifeCare Holdings, Inc. shall not be governed by or restricted by any provision of this Lease. 
 15.7 Financial Covenants. The defined terms used in this section are defined in §15.7.1. The method of calculating Net Worth and valuing
assets shall be consistent with the Financial Statements. The following financial covenants shall be met throughout the term of this Lease: 
 15.7.1 Definitions. 
 (a) “Net Worth” means an amount equal to the total consolidated fair market value of the
tangible assets of the person (excluding good will and other intangible assets) minus the total consolidated liabilities of such person. 
 (b) “Portfolio Cash Flow” means the aggregate net income arising from all Stabilized Facilities under this Lease as reflected on the Facility Financial Statement of each Stabilized Facility plus [i] the amount of the
provision for depreciation and amortization; plus [ii] the amount of the provision for management fees; plus [iii] the amount of the provision for income taxes; plus [iv] the amount of the provision for Base Rent payments and interest
and equipment lease payments, if any, relating to the Stabilized Facilities; and minus [v] an imputed management fee equal to 5% of gross revenues of the Stabilized Facilities (net of contractual allowances). 
  

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 (c) “Portfolio Coverage Ratio” is the ratio of [i] Portfolio Cash Flow for each applicable
period; to [ii] the Base Rent payments under this Lease allocated to the Stabilized Facilities for the applicable period. 
 15.7.2
Coverage Ratio. Tenant shall maintain for each fiscal quarter a Portfolio Coverage Ratio of not less than 2.50 to 1.00. 
 15.7.3
Net Worth. Commencing with the 4th anniversary of the issuance of a C of O for a Facility, Tenant shall cause
the applicable Subtenant to maintain for each fiscal quarter thereafter a Net Worth of at least $1,000,000, with cash and cash equivalents of at least $1,000,000. Guarantor shall maintain a Net Worth as specified in the Guaranty. 
 15.7.4 Current Ratio. Commencing with the first full calendar quarter after a Facility receives a C of O, Tenant shall cause the Subtenant
operating such Facility to maintain for each fiscal quarter thereafter a ratio of current assets to current liabilities of not less than 1.2 to 1.00. 
 15.8 Facility Licensure and Certification. Tenant and each Subtenant, as applicable, shall [i] give written notice to Landlord within one Business Day after an inspection of the Facility with respect to
health care licensure or certification has occurred; and [ii] deliver to Landlord copies of each of the reports, notices, correspondence and all other items and documents listed under item no. 18 of Exhibit E within one Business Day
after receipt thereof. Tenant and Subtenant acknowledge that each has reviewed Exhibit E and agrees to the foregoing obligation. If Tenant or Subtenant receives a Facility survey or inspection report with material deficiencies, notice of
failure to comply with a plan of correction or an HIPDB adverse action report, Tenant and the respective Subtenant shall cure all deficiencies and implement all corrective actions by the date required by the regulatory authority. 
 15.9 Transfer of License and Facility Operations. If this Lease is terminated due to expiration of the Term, pursuant to an Event of Default or
for any reason other than Tenant’s purchase of the Leased Property, or if Tenant or Subtenant vacates the Leased Property (or any part thereof) without termination of this Lease, the following provisions shall be immediately effective:

 15.9.1 Licensure. Landlord and any replacement operator designated by Landlord (“Replacement Operator”) shall have the
right and option to purchase from Tenant or Subtenant, as applicable, the Medicare provider agreement/number relating to a Facility (or any comparable agreement or right to receive payments under the federal Medicare program or any federal program
implemented in lieu thereof or in addition thereto). The purchase price will be the lesser of [i] the fair market value thereof; or [ii] 50% of the Working Capital Shortfall during the Demonstration Period. The “Demonstration
Period” is defined as the period between the date the Facility admits its first patient and the effective date of the Facility’s qualification to receive reimbursement from Medicare as a long term acute care hospital. For purposes of the
purchase price calculation, in no event will the Demonstration Period last for a period of more than nine months. Landlord or the Replacement Operator, as applicable, will provide written notification to Tenant of its decision to exercise this
option to purchase no later than the Expiration Date of the Lease. Landlord or Replacement Operator, as applicable, will close the 
  

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 acquisition within 60 days of the determination of the purchase price (as computed above), subject to extensions to
accommodate any required governmental or other regulatory approvals. Tenant and each Subtenant shall execute, deliver, and file all documents and statements reasonably requested by Landlord to effect the transfer of the Facility license and
Government Authorizations (including any provider agreements or provider numbers if the same are acquired as provided above) to a Replacement Operator, subject to any required approval of governmental regulatory authorities, and Tenant and each
Subtenant shall provide to Landlord all information and records required by Landlord in connection with the transfer of the license and Government Authorizations. 
 15.9.2 Facility Operations. In order to facilitate a responsible and efficient transfer of the operations of the Facility, Tenant and Subtenant shall, if and to the extent requested by Landlord and subject to
all applicable law and Tenant’s written requirements for strict confidentiality provided to Landlord, [i] deliver to Landlord the most recent updated reports, notices, schedules and documents listed under item nos. 12, 13, 14, 15 and
16 of Exhibit E; [ii] continue and maintain the operation of the Facility in the ordinary course of business, to the fullest extent reasonably practicable and consistent with applicable laws and regulations, until transfer of the Facility
operations to the Replacement Operator is completed; [iii] enter into such management agreements, operations transfer agreements and other types of agreements that may be reasonably requested by Landlord or the Replacement Operator; and
[iv] provide reasonable access for Landlord and its agents to show the Facility to potential replacement operators. Tenant and Subtenant consent to the distribution by Landlord to potential replacement operators of Facility financial
statements, licensure reports, financial and property due diligence materials and other documents, materials and information relating to the Facility. The provisions of this section do not create or establish any rights in Tenant, Subtenant or any
third party and Landlord reserves all rights and remedies relating to termination of this Lease. 
 15.10 Bed Operating Rights. Tenant
and Subtenant acknowledge and agree that the rights to operate the beds located at the Facility as set forth on Exhibit C under the law of the applicable Facility State [i] affect the value of the Leased Property, and [ii] the grant
of this Lease is conditioned upon the existence of such rights. Tenant and Subtenant shall not relocate any licensed bed to any other location and shall not transfer any bed operating rights to any other party without the prior written consent of
Landlord. 
 15.11 Power of Attorney. Effective upon [i] the occurrence and during the continuance of an Event of Default, or
[ii] termination of this Lease for any reason other than Tenant’s purchase of the Leased Property, Tenant and Subtenant hereby irrevocably and unconditionally appoint Landlord, or Landlord’s authorized officer, agent, employee or
designee, as Tenant’s and Subtenant’s true and lawful attorney-in-fact, to act for Tenant and Subtenant in Tenant’s and Subtenant’s respective name, place, and stead, to execute, deliver and file all applications and any and all
other necessary documents and statements to effect the issuance, transfer, reinstatement, renewal and/or extension of the Facility license and all Governmental Authorizations issued to Tenant and Subtenant or applied for by Tenant and Subtenant in
connection with Tenant’s and Subtenant’s operation of the Facility, to permit any designee of Landlord or any other transferee to operate the Facility under the Governmental Authorizations, and to do any and all other acts incidental to
any of the foregoing. Tenant and Subtenant irrevocably and unconditionally grant to Landlord as their respective attorney-in-fact full power 
  

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 and authority to do and perform every act necessary and proper to be done in the exercise of any of the foregoing powers
as fully as Tenant and Subtenant might or could do if personally present or acting, with full power of substitution, hereby ratifying and confirming all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of
attorney is coupled with an interest and is irrevocable prior to Tenant’s purchase of the Leased Property. 
 15.12 Project
Submissions. Until August 15, 2009, Company shall submit all future projects to Landlord as provided in the Term Sheet; provided, however, that the exclusive option shall be limited to Facilities that the Company or one of its Affiliates
develops or acquires with financing from a real estate investment trust. 
 ARTICLE 16: ALTERATIONS, CAPITAL IMPROVEMENTS, AND SIGNS

 16.1 Prohibition on Alterations and Improvements. Except for Permitted Alterations (as hereinafter defined), Tenant shall not
make any structural or nonstructural changes, alterations, additions and/or improvements (hereinafter collectively referred to as “Alterations”) to the Leased Property. 
 16.2 Approval of Alterations. If Tenant desires to perform any Permitted Alterations, Tenant shall deliver to Landlord plans, specifications,
drawings, and such other information as may be reasonably requested by Landlord (collectively the “Plans and Specifications”) showing in reasonable detail the scope and nature of the Alterations that Tenant desires to perform. It is the
intent of the parties hereto that the level of detail shall be comparable to that which is referred to in the architectural profession as “design development drawings” as opposed to working or biddable drawings. Landlord agrees not to
unreasonably delay its review of the Plans and Specifications. Within 30 days after receipt of an invoice, Tenant shall reimburse Landlord for all reasonable costs and expenses incurred by Landlord in reviewing and, if required, approving or
disapproving the Plans and Specifications, inspecting the Leased Property, and otherwise monitoring compliance with the terms of this Article 16. Tenant shall comply with the requirements of §16.4 in making any Permitted Alterations.

 16.3 Permitted Alterations. Permitted Alterations means any one of the following: [i] Alterations approved by Landlord;
[ii] Alterations required under §7.2; [iii] Alterations having a total cost of less than $150,000.00; provided, however, that any change in the number or configuration of units in a Facility shall require Landlord’s prior
approval; or [iv] repairs, rebuilding and restoration required or undertaken pursuant to §9.4. Permitted Alterations do not include alterations for which Contingent Payments are made under Article 22 and for which separate approvals
are given and requirements imposed pursuant to Article 22 or a Disbursing Agreement. 
 16.4 Requirements for Permitted
Alterations. Tenant shall comply with all of the following requirements in connection with any Permitted Alterations: 
 (a) The Permitted
Alterations shall be made in accordance with the approved Plans and Specifications. 
 (b) The Permitted Alterations and the installation
thereof shall comply with all applicable legal requirements and insurance requirements. 
  

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 (c) The Permitted Alterations shall be done in a good and workmanlike manner, shall not impair the value
or the structural integrity of the Leased Property, and shall be free and clear of all mechanic’s liens. 
 (d) For any Permitted
Alterations having a total cost of $150,000.00 or more, Tenant shall deliver to Landlord a payment and performance bond, with a surety acceptable to Landlord, in an amount equal to the estimated cost of the Permitted Alterations, guaranteeing the
completion of the work free and clear of liens and in accordance with the approved Plans and Specifications, and naming Landlord and any mortgagee of Landlord as joint obligees on such bond. 
 (e) Tenant shall, at Tenant’s expense, obtain a builder’s completed value risk policy of insurance insuring against all risks of physical loss,
including collapse and transit coverage, in a nonreporting form, covering the total value of the work performed, and equipment, supplies, and materials, and insuring initial occupancy. Landlord and any mortgagee of Landlord shall be additional
insureds of such policy. Landlord shall have the right to approve the form and substance of such policy. 
 (f) Tenant shall pay the premiums
required to increase the amount of the insurance coverages required by Article 4 to reflect the increased value of the Improvements resulting from installation of the Permitted Alterations, and shall deliver to Landlord a certificate evidencing
the increase in coverage. 
 (g) Tenant shall, not later than 60 days after completion of the Permitted Alterations, deliver to Landlord
a revised “as-built” survey of the respective Facility if the Permitted Alterations altered the Land or “footprint” of the Improvements and an “as-built” set of Plans and Specifications for the Permitted Alterations in
form and substance satisfactory to Landlord. 
 (h) Tenant shall, not later than 30 days after Landlord sends an invoice, reimburse
Landlord for any reasonable costs and expenses, including attorneys’ fees and architects’ and engineers’ fees, incurred in connection with reviewing and approving the Permitted Alterations and ensuring Tenant’s compliance with
the requirements of this section. The daily fee for Landlord’s consulting engineer is $750.00. 
 16.5 Ownership and Removal of
Permitted Alterations. The Permitted Alterations shall become a part of the Leased Property, owned by Landlord, and leased to Tenant subject to the terms and conditions of this Lease. Tenant shall not be required or permitted to remove any
Permitted Alterations. 
 16.6 Minimum Qualified Capital Expenditures. During each calendar year of the Term, Tenant shall expend or
escrow at least $1,000.00 per bed for Qualified Capital Expenditures to improve the Facilities (provided that as to any Facility with respect to which a C of O was not issued prior to the end of the first calendar year, the minimum qualified capital
expenditures required by this section shall be waived until the calendar year immediately following the year in which such C of O is issued). Thereafter throughout the Term, Tenant shall expend or escrow such minimum amount each calendar year,
increased annually in proportion to 
  

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 increases in the CPI. Within 60 days after the end of each fiscal year, Tenant shall deliver to Landlord a
certificate in the form of Exhibit G listing the Qualified Capital Expenditures made in the prior year. If the entire minimum amount was not expended in such year, the certificate will include certification that the balance of the current
minimum amount has been deposited in a reserve account to be used solely for Qualified Capital Expenditures for the Facilities. At least annually, at the request of Landlord, Landlord and Tenant shall review capital expenditures budgets and agree on
modifications, if any, required by changed circumstances and the changed conditions of the Leased Property. 
 16.7 Signs. Tenant may,
at its own expense, erect and maintain identification signs at the Leased Property, provided such signs comply with all laws, ordinances, and regulations. Upon the termination or expiration of this Lease, Tenant shall, within 30 days after
notice from Landlord, remove the signs and restore the Leased Property to its original condition. 
 ARTICLE 17: RESERVED 

ARTICLE 18: ASSIGNMENT AND SALE OF LEASED PROPERTY 
 18.1 Prohibition on Assignment and Subletting. Tenant acknowledges that Landlord has entered into this Lease in reliance on the personal services and business expertise of Tenant. Tenant may not assign, sublet,
mortgage, hypothecate, pledge, grant a right of first refusal or transfer any interest in this Lease, or in the Leased Property, in whole or in part, without the prior written consent of Landlord, which Landlord may withhold in its sole and absolute
discretion. The following transactions will be deemed an assignment or sublease requiring Landlord’s prior written consent: [i] an assignment by operation of law; [ii] an imposition (whether or not consensual) of a lien, mortgage, or
encumbrance upon Tenant’s interest in the Lease; [iii] an arrangement (including, but not limited to, management agreements, concessions, licenses, and easements) which allows the use or occupancy of all or part of the Leased Property by
anyone other than Tenant; and [iv] a change of ownership of Tenant. Landlord’s consent to any assignment, right of first refusal or sublease will not release Tenant (or any guarantor) from its payment and performance obligations under this
Lease, but rather Tenant, any guarantor, and Tenant’s assignee or sublessee will be jointly and severally liable for such payment and performance. An assignment, right of first refusal or sublease without the prior written consent of Landlord
will be void at Landlord’s option. Landlord’s consent to one assignment, right of first refusal or sublease will not waive the requirement of its consent to any subsequent assignment or sublease. Notwithstanding the foregoing, Tenant may
enter into a Sublease with each Subtenant for each Facility provided that each Sublease complies with §18.2 and Tenant may grant a sublease, concession, or license within the Facility or on the Leased Property, without Landlord’s consent,
to any entity providing services within the Facility or on the Leased Property to Tenant’s inpatients and employees including, without limitation, pharmacy, radiology, cafeteria and gift shop services; provided each agreement shall be in
writing, a fully executed copy shall be provided to Landlord within 10 Business Days of execution, and each agreement shall expressly provide that such agreement terminates if and when the Lease terminates. 
 18.2 Requests for Landlord’s Consent to Assignment, Sublease or Management Agreement. If Tenant is required to obtain Landlord’s consent
to a specific assignment, 
  

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 sublease, or management agreement, Tenant shall give Landlord [i] the name and address of the proposed assignee,
subtenant or manager; [ii] a copy of the proposed assignment, sublease or management agreement; [iii] reasonably satisfactory information about the nature, business and business history of the proposed assignee, subtenant, or manager and
its proposed use of the Leased Property; and [iv] banking, financial, and other credit information, and references about the proposed assignee, subtenant or manager sufficient to enable Landlord to determine the financial responsibility and
character of the proposed assignee, subtenant or manager. Any assignment, sublease or management agreement shall contain provisions to the effect that [a] such assignment, sublease or management agreement is subject and subordinate to all of
the terms and provisions of this Lease and to the rights of Landlord and that the assignee, subtenant or manager shall comply with all applicable provisions of this Lease; [b] such assignment, sublease or management agreement may not be
modified without the prior written consent of Landlord not to be unreasonably withheld or delayed; [c] if this Lease shall terminate before the expiration of such assignment, sublease or management agreement, the assignee, subtenant or manager
thereunder will, solely at Landlord’s option and only upon the express written notice of attornment from Landlord, attorn to Landlord and waive any right the assignee, subtenant or manager may have to terminate the assignment, sublease or
management agreement or surrender possession thereunder as a result of the termination of this Lease; and [d] if the assignee, subtenant or manager receives a written notice from Landlord stating that Tenant is in default under this Lease, the
assignee, subtenant or manager shall thereafter pay all rentals or payments under the assignment, sublease or management agreement directly to Landlord until such default has been cured. Any attempt or offer by an assignee, subtenant or manager to
attorn to Landlord shall not be binding or effective without the express written consent of Landlord. Tenant hereby collaterally assigns to Landlord, as security for the performance of its obligations hereunder, all of Tenant’s right, title,
and interest in and to any assignment, sublease or management agreement now or hereafter existing for all or part of the Leased Property. Tenant shall, at the request of Landlord, execute such other instruments or documents as Landlord may request
to evidence this collateral assignment. If Landlord, in its sole and absolute discretion, consents to such assignment, sublease, or management agreement, such consent shall not be effective until [i] a fully executed copy of the instrument of
assignment, sublease or management agreement has been delivered to Landlord; [ii] in the case of an assignment, Landlord has received a written instrument in which the assignee has assumed and agreed to perform all of Tenant’s obligations
under the Lease; and [iii] Tenant has paid to Landlord a fee in the amount of $2,500.00 (applies only to consent requests after the Closing); and [iv] Landlord has received reimbursement from Tenant or the assignee for all attorneys’
fees and expenses and all other reasonable out-of-pocket expenses incurred in connection with determining whether to give its consent, giving its consent and all matters relating to the assignment (applies only to consent requests after the
Closing). 
 18.3 Sale of Leased Property. If Landlord or any subsequent owner of the Leased Property sells the Leased Property, its
liability for the performance of its agreements in this Lease will end on the date of the sale of the Leased Property, provided the liability of the Landlord under this Lease is expressly assumed by such purchaser, and Tenant will look solely to the
purchaser for the performance of those agreements. For purposes of this section, any holder of a mortgage or security agreement which affects the Leased Property at any time, and any landlord under any lease to which this Lease is subordinate at any
time, will be a subsequent owner of the Leased Property when it succeeds to the interest of Landlord or any subsequent owner of the Leased Property. 
  

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 18.4 Assignment by Landlord. Landlord may transfer, assign, mortgage, collaterally assign, or
otherwise dispose of Landlord’s interest in this Lease or the Leased Property. 
 ARTICLE 19: HOLDOVER AND SURRENDER 

19.1 Holding Over. If Tenant, with or without the express or implied consent of Landlord, continues to hold and occupy the Leased Property (or
any part thereof) after the expiration of the Term or earlier termination of this Lease (other than pursuant to Tenant’s purchase of the Leased Property), such holding over beyond the Term and the acceptance or collection of Rent in the amount
specified below by Landlord shall operate and be construed as creating a tenancy from month to month and not for any other term whatsoever. Said month-to-month tenancy may be terminated by Landlord by giving Tenant five days’ written notice,
and at any time thereafter Landlord may re-enter and take possession of the Leased Property. If Tenant continues after the expiration of the Term or earlier termination of this Lease to hold and occupy the Leased Property whether as a month-to-month
tenant or a tenant at sufferance or otherwise, Tenant shall pay Rent for each month in an amount equal to the sum of [i] one and one-half (1 1/2) times the Base Rent payable during the month in which such expiration or termination occurs, plus [ii] all Additional Rent accruing during the month, plus [iii] any and all other sums
payable by Tenant pursuant to this Lease. During any continued tenancy after the expiration of the Term or earlier termination of this Lease, Tenant shall be obligated to perform and observe all of the terms, covenants and conditions of this Lease,
but shall have no rights hereunder other than the right, to the extent given by applicable law, to continue its occupancy and use of the Leased Property until the tenancy is terminated. Nothing contained herein shall constitute the consent, express
or implied, of Landlord to the holding over of Tenant after the expiration or earlier termination of this Lease. 
 19.2
Surrender. Except for [i] Permitted Alterations; [ii] normal and reasonable wear and tear (subject to the obligation of Tenant to maintain the Leased Property in good order and repair during the Term); and [iii] damage and
destruction not required to be repaired by Tenant, Tenant shall surrender and deliver up the Leased Property at the expiration or termination of the Term in as good order and condition as of the Commencement Date. 
 19.3 Indemnity. If Tenant fails to surrender the entire Leased Property or any part thereof upon the expiration or termination of this Lease in a
timely manner and in accordance with the provisions of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall defend, indemnify and hold Landlord, its principals, officers, directors, agents, and employees
harmless from loss or liability resulting from such failure, including, without limiting the generality of the foregoing, loss of rental with respect to any new lease in which the rental payable thereunder exceeds the Rent collected by Landlord
pursuant to this Lease during Tenant’s holdover and any claims by any proposed new tenant founded on Tenant’s failure to surrender the Leased Property. The provisions of this Article 19 shall survive the expiration or termination of this
Lease. 
  

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 ARTICLE 20: LETTER OF CREDIT 
 20.1 Terms of Letter of Credit. If required under the Term Sheet as a condition for the granting of this Lease, Tenant shall provide or cause
Company to provide Landlord with the Letter of Credit at the Closing. Tenant shall maintain the Letter of Credit in favor of Landlord until the Obligor Group Obligations are performed in full. The Letter of Credit shall permit partial and full draws
and shall permit drawing upon presentation of a draft drawn on the Issuer and a certificate signed by Landlord stating that an Event of Default has occurred under this Lease. The Letter of Credit shall be for an initial term of one year and shall be
automatically renewed annually for successive terms of at least one year unless Landlord receives notice from the Issuer, by certified mail, at least 60 days prior to the expiry date then in effect that the Letter of Credit will not be extended
for an additional one-year period. 
 20.2 Replacement Letter of Credit. Tenant shall provide a replacement Letter of Credit which
satisfies the requirements of §20.1 from an Issuer acceptable to Landlord within 30 days after the occurrence of any of the following: [i] Landlord’s receipt of notice from the Issuer that the Letter of Credit will not be
extended for an additional one-year period; [ii] Landlord gives notice to Tenant that the Lace Financial Service Rating (or rating of a comparable rating service) of the Issuer is less than a “C+” (or the comparable rating of
such other rating service); [iii] Landlord gives notice to Tenant of the admission by Issuer in writing of its inability to pay its debts generally as they become due, or Issuer’s filing of a petition in bankruptcy or petitions to take
advantage of any insolvency act, making an assignment for the benefit of its creditors, consenting to the appointment of a receiver of itself or of the whole or any substantial part of its property, or filing a petition or answer seeking
reorganization or arrangement under the federal bankruptcy laws or any other applicable law, regulation, or statute of the United States of America or any state thereof or [iv] Issuer is at any time determined not to be at least
“adequately capitalized”, as that term is defined and used in the “Prompt Corrective Action” statute, 12 U.S.C. §1831, and implementing regulations. Tenant’s failure to comply with the requirements of this section
shall be an immediate Event of Default without any notice (other than as provided for in this section), cure or grace period. Upon such Event of Default, Landlord shall be entitled to draw upon the Letter of Credit and Landlord may, solely at its
option and without any obligation to do so, require Tenant to obtain a replacement Letter of Credit satisfactory to Landlord with the Letter of Credit proceeds made available to Tenant solely to secure Tenant’s reimbursement obligation for the
replacement Letter of Credit. 
 20.3 Draws. Landlord may draw under the Letter of Credit upon the occurrence of an Event of Default
hereunder. Any such draw shall not cure an Event of Default, unless such draw is sufficient to cure all then outstanding Obligor Group Obligations and Tenant causes the Letter of Credit to be reinstated under §20.4. The proceeds from the Letter
of Credit (“LC Proceeds”) shall be the sole property of Landlord and may be used, retained and invested by Landlord without restriction or limitation. Landlord shall have no obligation to account for its use of the LC Proceeds and Tenant
shall have no interest in or claim against the LC Proceeds. Landlord shall have the right and option, but not the obligation, to apply all or any portion of the LC Proceeds to pay all or any portion of [i] the Obligor Group Obligations; plus
[ii] all reasonable expenses and costs incurred by Landlord in enforcing or preserving Landlord’s rights under this Lease or any security for the Obligor Group Obligations, including, without limitation, [a] the fees, expenses, and
costs of any litigation, appellate, receivership, administrative, 
  

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 bankruptcy, insolvency, or other similar proceeding; [b] attorney, paralegal, consulting and witness fees and
disbursements; and [c] the expenses, including, without limitation, lodging, meals and transportation of Landlord and its employees, agents, attorneys, and witnesses in preparing for litigation, administrative, bankruptcy, insolvency, or
similar proceedings and attendance at hearings, depositions, and trials in connection therewith. 
 20.4 Partial Draws. Upon the
occurrence of a monetary Event of Default under the Obligor Group Obligations, Landlord may, at its option, make a partial draw on the Letter of Credit in an amount not to exceed the amount of the Obligor Group Obligations then past due. If Landlord
then applies the proceeds from such partial draw on the Letter of Credit to payment of all or any portion of the Obligor Group Obligations then past due, Tenant shall, within 10 days after notice from Landlord of such partial draw and payment,
cause the amount of the Letter of Credit to be reinstated to the amount in effect prior to such partial draw. Tenant’s failure to comply with the requirements of this section shall be an immediate Event of Default under the Lease Documents
without any notice (other than as provided for in this section), cure or grace period. Landlord’s rights under this §20.4 are in addition to, and not in limitation of, Landlord’s rights under §20.3. 
 20.5 Substitute Letter of Credit. Tenant may, from time to time, deliver to Landlord a substitute Letter of Credit meeting the requirements of
this Lease and issued by an Issuer acceptable to Landlord. Upon Landlord’s approval of the substitute Letter of Credit, Landlord shall release the previous Letter of Credit to Tenant. 
 20.6 Retention of Letter of Credit. Upon termination of this Lease due to expiration of the Term, pursuant to an Event of Default or for any
reason other than Tenant’s purchase of the Leased Property, Landlord shall be entitled to hold the Letter of Credit until the Obligor Group Obligations are performed in full or are released by Landlord and thereafter Landlord shall return the
Letter of Credit to the Issuer and release all rights thereto. 
 20.7 Working Capital Letter of Credit. Within five Business Days of
the C of O Date for each Development Project, Tenant shall deliver or cause to be delivered to Landlord the Working Capital Letter of Credit. The Working Capital Letter of Credit shall comply with all of the terms and conditions applicable to the
Letter of Credit, and shall be in a form acceptable to Landlord. Each month after the applicable Working Capital Letter of Credit has been issued and until the full amount of such Working Capital Letter of Credit has been drawn, Tenant shall certify
to Landlord the amount of the Working Capital Shortfall, which certificate shall include written documentation evidencing such Working Capital Shortfall. Tenant may elect to either (a) provided no Event of Default exists, request that Landlord
draw on the Working Capital Letter of Credit to reimburse Tenant for the Working Capital Shortfall; or (b) elect to not be reimbursed (“Unreimbursed Working Capital Shortfall”). Landlord shall have the right to apply any amount so
drawn against any outstanding Obligor Group Obligations, and shall distribute the balance of the draw to Tenant within eight Business Days. On a quarterly basis, Tenant shall have the right to request that Landlord reduce the Working Capital Letter
of Credit by the amount of Unreimbursed Working Capital Shortfall. If for six consecutive months, the Tenant certificate indicates that there is no Working Capital Shortfall, then Landlord shall release the applicable Working Capital Letter of
Credit. Notwithstanding anything to the contrary contained in this §20.7, Landlord shall have the right to draw on the Working Capital Letter of Credit if there is an Event of Default and apply proceeds as set forth in §20.3. 

 

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 ARTICLE 21: QUIET ENJOYMENT, SUBORDINATION, ATTORNMENT AND ESTOPPEL CERTIFICATES 
 21.1 Quiet Enjoyment. So long as Tenant performs all of its obligations under this Lease, Tenant’s possession of the Leased Property will not
be disturbed by Landlord or any party claiming by, through or under Landlord. 
 21.2 Subordination. Subject to the terms and
conditions of this section, this Lease and Tenant’s rights under this Lease are subordinate to any ground lease or underlying lease, first mortgage, first deed of trust, or other first lien against the Leased Property, together with any
renewal, consolidation, extension, modification or replacement thereof, which now or at any subsequent time affects the Leased Property or any interest of Landlord in the Leased Property, except to the extent that any such instrument expressly
provides that this Lease is superior. The foregoing subordination provision is expressly conditioned upon any lessor or mortgagee being obligated and bound to recognize Tenant as the tenant under this Lease, and such lessor or mortgagee shall have
no right to disturb Tenant’s possession, use and occupancy of the Leased Property or Tenant’s enjoyment of its rights under this Lease unless and until an Event of Default occurs hereunder. Any foreclosure action or proceeding by any
mortgagee with respect to the Leased Property shall not affect Tenant’s rights under this Lease and shall not terminate this Lease unless and until an Event of Default occurs hereunder. The foregoing provisions will be self-operative, and no
further instrument will be required in order to effect them. However, Tenant shall execute, acknowledge and deliver to Landlord, at any time and from time to time upon demand by Landlord, such documents as may be requested by Landlord or any
mortgagee or any holder of any mortgage or other instrument described in this section, to confirm or effect any such subordination, provided that any such document shall include a nondisturbance provision as set forth in this section satisfactory to
Tenant. Any mortgagee of the Leased Property shall be deemed to be bound by the nondisturbance provision set forth in this section. If Tenant fails or refuses to execute, acknowledge, and deliver any such document within 20 days after written
demand, Landlord may execute acknowledge and deliver any such document on behalf of Tenant as Tenant’s attorney-in-fact. Tenant hereby constitutes and irrevocably appoints Landlord, its successors and assigns, as Tenant’s attorney-in-fact
to execute, acknowledge, and deliver on behalf of Tenant any documents described in this section. This power of attorney is coupled with an interest and is irrevocable. 
 21.3 Attornment. If any holder of any mortgage, indenture, deed of trust, or other similar instrument described in §21.2 succeeds to Landlord’s interest in the Leased Property, Tenant will pay to such
holder all Rent subsequently payable under this Lease. Tenant shall, upon request of anyone succeeding to the interest of Landlord, automatically become the tenant of, and attorn to, such successor in interest without changing this Lease. The
successor in interest will not be bound by [i] any payment of Rent for more than one month in advance; [ii] any amendment or modification of this Lease thereafter made without its consent as provided in this Lease; [iii] any claim
against Landlord arising prior to the date on which the successor succeeded to Landlord’s interest; or [iv] any claim or offset of Rent against Landlord. Upon request by Landlord or such successor in interest and without cost to Landlord
or such successor 
  

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 in interest, Tenant will execute, acknowledge and deliver an instrument or instruments confirming the attornment. If
Tenant fails or refuses to execute, acknowledge, and deliver any such instrument within 20 days after written demand, then Landlord or such successor in interest will be entitled to execute, acknowledge, and deliver any document on behalf of
Tenant as Tenant’s attorney-in-fact. Tenant hereby constitutes and irrevocably appoints Landlord, its successors and assigns, as Tenant’s attorney-in-fact to execute, acknowledge, and deliver on behalf of Tenant any such document. This
power of attorney is coupled with an interest and is irrevocable. 
 21.4 Estoppel Certificates. At the request of Landlord or any
mortgagee or purchaser of the Leased Property, Tenant shall execute, acknowledge, and deliver an estoppel certificate, in recordable form, in favor of Landlord or any mortgagee or purchaser of the Leased Property certifying the following:
[i] that the Lease is unmodified and in full force and effect, or if there have been modifications that the same is in full force and effect as modified and stating the modifications; [ii] the date to which Rent and other charges have been
paid; [iii] whether Tenant or Landlord is in default or whether there is any fact or condition which, with notice or lapse of time, or both, would constitute a default, and specifying any existing default, if any; [iv] that Tenant has
accepted and occupies the Leased Property; [v] that Tenant has no defenses, setoffs, deductions, credits, or counterclaims against Landlord, if that be the case, or specifying such that exist; and [vi] such other information as may
reasonably be requested by Landlord or any mortgagee or purchaser. Any purchaser or mortgagee may rely on this estoppel certificate. If Tenant fails to deliver the estoppel certificates to Landlord within 10 days after the request of Landlord,
then Tenant shall be deemed to have certified that [a] the Lease is in full force and effect and has not been modified, or that the Lease has been modified as set forth in the certificate delivered to Tenant; [b] Tenant has not prepaid any
Rent or other charges except for the current month; [c] Tenant has accepted and occupies the Leased Property; [d] neither Tenant nor Landlord is in default nor is there any fact or condition which, with notice or lapse of time, or both,
would constitute a default; and [e] Tenant has no defenses, setoffs, deductions, credits, or counterclaims against Landlord. Tenant hereby irrevocably appoints Landlord as Tenant’s attorney-in-fact to execute, acknowledge, and deliver on
Tenant’s behalf any estoppel certificate to which Tenant does not object within 10 days after Landlord sends the certificate to Tenant. This power of attorney is coupled with an interest and is irrevocable. 
 ARTICLE 22: CONTINGENT PAYMENTS 
 22.1
Contingent Payments. Landlord shall make Contingent Payments to the extent set forth in this section. Tenant shall request each Contingent Payment by submitting a Contingent Payment Request to Landlord or in the case of Contingent Payments
for Project Improvements, a Disbursement Voucher pursuant to the Disbursing Agreement. Landlord shall make the Contingent Payment provided that [i] no Event of Default has occurred and is continuing, and [ii] Landlord has determined that
all requirements for the Contingent Payment have been satisfied. Contingent Payments will be made not less than eight Business Days and not more than 12 Business Days following Tenant’s delivery of the Contingent Payment Request.

  

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 22.2 Contingent Payments for Capital Expenditures. 
 22.2.1 Conditions. In addition to any other requirements set forth in this section, Landlord’s obligation to make Contingent Payments for
capital expenditures is subject to Landlord’s reasonable approval of the scope of work and budget, construction and disbursement schedules (if applicable), and contractor and construction agreements (if applicable). Tenant shall also provide a
collateral assignment of any construction contract to Landlord and the contractor shall consent to the assignment. 
 22.2.2 No
Commitment. Landlord has no current commitment to make Contingent Payments for capital expenditures pursuant to §22.2. 
 22.3
Contingent Payments for Project Improvements. 
 22.3.1 Conditions. In addition to any other requirements set forth in this
section, Landlord’s obligation to make Contingent Payments for Project Improvements is subject to the conditions set forth in the Disbursing Agreement related to the Project Improvements. 
 22.3.2 No Commitment. Landlord has no current commitment to make Contingent Payments for Project Improvements pursuant to §22.3. 

22.4 Contingent Payments for Development Projects. 
 22.4.1 Conditions. In addition to any other requirements set forth in this section, Landlord’s obligation to make Contingent Payments for Development Projects is subject to the conditions set forth in the
Disbursing Agreement related to Tenant’s Development Projects. 
 22.4.2 Contingent Payments for the Meridian Facility. Upon
satisfaction of all conditions for such Contingent Payments, Landlord shall make Contingent Payments for the Development Project to be constructed in Meridian, Idaho equal to the Meridian Contingent Payment Amount for the Meridian Facility as set
forth in the Development Project Budget. The Construction Commencement Date for the Meridian Facility is no later than January 1, 2007. The Mandatory Completion Date for the Meridian Facility is June 30, 2008 or such earlier completion
date as required by the Department of Health or any other governmental authority. 
 ARTICLE 23: SECURITY INTEREST 
 23.1 Collateral. Tenant and each Subtenant hereby grant to each Landlord and HCN (if not a Landlord) (individually and collectively called
“Secured Party”) a security interest in the following described property, whether now owned or hereafter acquired by Tenant or any Subtenant (the “Collateral”), to secure the payment and performance of the Obligor Group
Obligations: 
 (a) All machinery, furniture, equipment, trade fixtures, appliances, inventory and all other goods (as “equipment”,
“inventory” and “goods” are defined for purposes of Article 9 (“Article 9”) of the Uniform Commercial Code as adopted in Ohio) and any leasehold interest of Tenant or any Subtenant in any of the foregoing,
including, without limitation, those items which are to become fixtures or which are building supplies and materials to be incorporated into any improvement or fixture. 
  

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 (b) All accounts, contract rights, general intangibles, instruments, documents, and chattel paper [as
“accounts”, “contract rights”, “general intangibles”, “instruments”, “documents” and “chattel paper” are defined for purposes of Article 9] now or hereafter arising. 
 (c) All franchises, permits, licenses, operating rights, certifications, approvals, consents, authorizations and other general intangibles, including,
without limitation, certificates of need, state health care facility licenses, and Medicare and Medicaid provider agreements, to the extent permitted by law. 
 (d) Unless expressly prohibited by the terms thereof, all contracts, agreements, contract rights and materials relating to the design, construction, operation or management of any improvements, including, but not
limited to, management agreements, plans, specifications, drawings, blueprints, models, mock-ups, brochures, flyers, advertising and promotional materials and mailing lists. 
 (e) All subleases, occupancy agreements, license agreements and concession agreements, written or unwritten, of any nature, now or hereafter entered
into, and all right, title and interest of Tenant thereunder, Tenant’s right, if any, to cash or securities deposited thereunder whether or not the same was deposited to secure performance by the subtenants, occupants, licensees and
concessionaires of their obligations thereunder, including the right to receive and collect the rents, revenues, and other charges thereunder. 
 (f) All ledger sheets, files, records, computer programs, tapes, other electronic data processing materials, and other documentation. 
 (g) The products and proceeds of the preceding listed property, including, without limitation, cash and non-cash proceeds, proceeds of proceeds, and insurance proceeds. 
 23.2 Additional Documents. At the request of Landlord, Tenant and each Subtenant shall execute additional security agreements, financing
statements, and such other documents as may be requested by Landlord to maintain and perfect such security interest. Tenant and each Subtenant hereby irrevocably appoint Landlord, its successors and assigns, as Tenant’s or Subtenant’s
attorney-in-fact to execute, acknowledge, deliver and file such documents on behalf of Tenant or such Subtenant. This power of attorney is coupled with an interest and is irrevocable. Tenant and each Subtenant authorize Landlord to file financing
statements describing the Collateral to perfect and maintain the security interest granted hereunder without the signature or any further authorization of Tenant or any Subtenant. 
 23.3 Notice of Sale. With respect to any sale or other disposition of any of the Collateral after the occurrence of an Event of Default, Landlord,
Tenant and each Subtenant agree that the giving of 10 days’ notice by Landlord, sent by overnight delivery, postage prepaid, to Tenant’s or Subtenant’s notice address designating the time and place of any public sale or the time
after which any private sale or other intended disposition of such Collateral is to be made, shall be deemed to be reasonable notice thereof and Tenant and each Subtenant waive any other notice with respect thereto. 
  

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 23.4 Recharacterization. Landlord and Tenant intend this Lease to be a true lease. However, if
despite the parties’ intent, it is determined or adjudged by a court for any reason that this Lease is not a true lease or if this Lease is recharacterized as a financing arrangement, then this Lease shall be considered a secured financing
agreement and Landlord’s title to the Leased Property shall constitute a perfected first priority lien in Landlord’s favor on the Leased Property to secure the payment and performance of all the Obligor Group Obligations. 
 ARTICLE 24: MISCELLANEOUS 
 24.1
Notices. Landlord, Tenant and Subtenant hereby agree that all notices, demands, requests, and consents (hereinafter “notices”) required to be given pursuant to the terms of this Lease shall be in writing, shall be addressed to the
addresses set forth in the introductory paragraph of this Lease, and shall be served by [i] personal delivery; [ii] certified mail, return receipt requested, postage prepaid; or [iii] nationally recognized overnight courier. Notices
to any Subtenant should be sent c/o Tenant at Tenant’s address set forth in the introductory paragraph. All notices shall be deemed to be given upon the earlier of actual receipt or three days after mailing, or one Business Day after
deposit with the overnight courier. Any notices meeting the requirements of this section shall be effective, regardless of whether or not actually received. Landlord or Tenant may change its notice address at any time by giving the other party
notice of such change. 
 24.2 Advertisement of Leased Property. In the event the parties hereto have not executed a renewal Lease
within 120 days prior to the expiration of this Lease, or Tenant has not exercised its Option to Purchase, then Landlord or its agent shall have the right to enter the Leased Property at all reasonable times for the purpose of exhibiting the
Leased Property to others and to place upon the Leased Property for and during the period commencing 120 days prior to the expiration of this Lease, “for sale” or “for rent” notices or signs. 
 24.3 Entire Agreement. This Lease contains the entire agreement between Landlord and Tenant with respect to the subject matter hereof. No
representations, warranties, and agreements have been made by Landlord except as set forth in this Lease. No oral agreements or understandings between Landlord and Tenant shall survive execution of this Lease. 
 24.4 Severability. If any term or provision of this Lease is held or deemed by Landlord to be invalid or unenforceable, such holding shall not
affect the remainder of this Lease and the same shall remain in full force and effect, unless such holding substantially deprives Tenant of the use of the Leased Property or Landlord of the rents herein reserved, in which event this Lease shall
forthwith terminate as if by expiration of the Term. 
 24.5 Captions and Headings. The captions and headings are inserted only as a
matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof. 
 24.6 Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of Ohio, except as to matters under which the laws of a 
  

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 State in which a respective Facility is located, or under applicable procedural conflicts of laws rules, require the
application of laws of such other State, in which case the laws or conflicts of laws rules, as the case may be, of such State shall govern to the extent required. 
 24.7 Memorandum of Lease. Tenant shall not record this Lease. Tenant shall, however, record a memorandum of lease approved by Landlord upon Landlord’s request. 
 24.8 Waiver. No waiver by Landlord of any condition or covenant herein contained, or of any breach of any such condition or covenant, shall be
held or taken to be a waiver of any subsequent breach of such covenant or condition, or to permit or excuse its continuance or any future breach thereof or of any condition or covenant, nor shall the acceptance of Rent by Landlord at any time when
Tenant or Subtenant is in default in the performance or observance of any condition or covenant herein be construed as a waiver of such default, or of Landlord’s right to terminate this Lease or exercise any other remedy granted herein on
account of such existing default. 
 24.9 Binding Effect. This Lease will be binding upon and inure to the benefit of the heirs,
successors, personal representatives, and permitted assigns of Landlord, Tenant and Subtenant. 
 24.10 No Offer. Landlord’s
submission of this Lease to Tenant is not an offer to lease the Leased Property, or an agreement by Landlord to reserve the Leased Property for Tenant. Landlord will not be bound to Tenant until Tenant has duly executed and delivered duplicate
original leases to Landlord, and Landlord has duly executed and delivered one of these duplicate original leases to Tenant. 
 24.11
Modification. This Lease may only be modified by a writing signed by both Landlord and Tenant. All references to this Lease, whether in this Lease or in any other document or instrument, shall be deemed to incorporate all amendments,
modifications and renewals of this Lease, made after the date hereof. If Tenant requests Landlord’s consent to any change in ownership, merger or consolidation of Company, Tenant, Subtenant or Entity Guarantor, any assumption of the Lease, or
any modification of the Lease, Tenant shall provide Landlord all relevant information and documents sufficient to enable Landlord to evaluate the request. In connection with any such request, Tenant shall pay to Landlord a fee in the amount of
$2,500.00 and shall pay all of Landlord’s reasonable attorney’s fees and expenses and other reasonable out-of-pocket expenses incurred in connection with Landlord’s evaluation of Tenant’s request, the preparation of any documents
and amendments, the subsequent amendment of any documents between Landlord and its collateral pool lenders (if applicable), and all related matters. 
 24.12 Landlord’s Modification. Tenant acknowledges that Landlord may mortgage the Leased Property or use the Leased Property as collateral for collateralized mortgage obligations or Real Estate Mortgage
Investment Companies (REMICS). If any mortgage lender of Landlord desires any modification of this Lease, Tenant agrees to consider such modification in good faith and to execute an amendment of this Lease if Tenant finds such modification
acceptable. 
  

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 24.13 No Merger. The surrender of this Lease by Tenant or the cancellation of this Lease by
agreement of Tenant and Landlord or the termination of this Lease on account of Tenant’s default will not work a merger, and will, at Landlord’s option, terminate any subleases or operate as an assignment to Landlord of any subleases.
Landlord’s option under this paragraph will be exercised by notice to Tenant and all known subtenants of the Leased Property. 
 24.14
Laches. No delay or omission by either party hereto to exercise any right or power accruing upon any noncompliance or default by the other party with respect to any of the terms hereof shall impair any such right or power or be construed to
be a waiver thereof. 
 24.15 Limitation on Tenant’s Recourse. Tenant’s sole recourse against Landlord, and any successor to
the interest of Landlord in the Leased Property, is to the interest of Landlord, and any such successor, in the Leased Property. Tenant will not have any right to satisfy any judgment which it may have against Landlord, or any such successor, from
any other assets of Landlord, or any such successor. In this section, the terms “Landlord” and “successor” include the shareholders, venturers, and partners of “Landlord” and “successor” and the officers,
directors, and employees of the same. The provisions of this section are not intended to limit Tenant’s right to seek injunctive relief or specific performance. 
 24.16 Construction of Lease. This Lease has been prepared by Landlord and its professional advisors and reviewed by Tenant and its professional advisors. Landlord, Tenant, and their advisors believe that this
Lease is the product of all their efforts, that it expresses their agreement, and agree that it shall not be interpreted in favor of either Landlord or Tenant or against either Landlord or Tenant merely because of their efforts in preparing it.

 24.17 Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original hereof.

 24.18 Landlord’s Consent. Whenever Landlord’s consent or permission is required under this Lease, such consent shall be
in writing and shall not be unreasonably withheld, delayed or conditioned. 
 24.19 Custody of Escrow Funds. Any funds paid to
Landlord in escrow hereunder may be held by Landlord or, at Landlord’s election, by a financial institution, the deposits or accounts of which are insured or guaranteed by a federal or state agency. The funds shall not be deemed to be held in
trust, may be commingled with the general funds of Landlord or such other institution, and shall not bear interest. 
 24.20
Landlord’s Status as a REIT. Tenant acknowledges that Landlord (or a Landlord Affiliate) has elected and may hereafter elect to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code. 
 24.21 Exhibits. All of the exhibits referenced in this Lease are attached hereto and incorporated herein. 
 24.22 WAIVER OF JURY TRIAL. LANDLORD, TENANT AND SUBTENANT WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THEM
AGAINST THE OTHER ON ALL 
  

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 MATTERS ARISING OUT OF THIS LEASE OR THE USE AND OCCUPANCY OF THE LEASED PROPERTY (EXCEPT CLAIMS FOR PERSONAL INJURY OR
PROPERTY DAMAGE). IF LANDLORD COMMENCES ANY SUMMARY PROCEEDING FOR NONPAYMENT OF RENT, TENANT AND SUBTENANT WILL NOT INTERPOSE, AND WAIVES THE RIGHT TO INTERPOSE, ANY COUNTERCLAIM IN ANY SUCH PROCEEDING. 
 24.23 CONSENT TO JURISDICTION. TENANT AND SUBTENANT HEREBY IRREVOCABLY SUBMIT AND CONSENT TO THE NONEXCLUSIVE JURISDICTION AND VENUE OF ANY STATE
OR FEDERAL COURT HAVING JURISDICTION OVER LUCAS COUNTY, OHIO OR ANY COUNTY IN WHICH A FACILITY IS LOCATED FOR ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY MATTER ARISING FROM OR RELATED TO [I] THE TERM SHEET; [II] THIS LEASE; OR
[III] ANY DOCUMENT EXECUTED BY TENANT OR SUBTENANT IN CONNECTION WITH THIS LEASE. TENANT AND SUBTENANT HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT TENANT AND SUBTENANT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING. TENANT AND SUBTENANT AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW. 
 EXCEPT FOR MATTERS WHERE UNDER LOCAL LAW JURISDICTION IS EXCLUSIVE IN ANOTHER VENUE, TENANT AND SUBTENANT AGREE NOT TO INSTITUTE
ANY LEGAL ACTION OR PROCEEDING AGAINST LANDLORD OR ANY DIRECTOR, OFFICER, EMPLOYEE, AGENT OR PROPERTY OF LANDLORD, CONCERNING ANY MATTER ARISING OUT OF OR RELATING TO THE TERM SHEET, THIS LEASE OR ANY RELATED DOCUMENT IN ANY COURT OTHER THAN A STATE
OR FEDERAL COURT HAVING JURISDICTION OVER LUCAS COUNTY, OHIO. 
 TENANT AND SUBTENANT HEREBY CONSENT TO SERVICE OF PROCESS BY LANDLORD IN ANY
MANNER AND IN ANY JURISDICTION PERMITTED BY LAW. NOTHING HEREIN SHALL AFFECT OR IMPAIR LANDLORD’S RIGHT TO SERVE LEGAL PROCESS IN ANY MANNER PERMITTED BY LAW, OR LANDLORD’S RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST TENANT, SUBTENANT
OR THE PROPERTY OF TENANT OR SUBTENANT IN THE COURTS OF ANY OTHER JURISDICTION. 
 24.24 Attorney’s Fees and Expenses. Tenant
shall pay to Landlord all reasonable costs and expenses incurred by Landlord in administering this Lease and the security for this Lease, enforcing or preserving Landlord’s rights under this Lease and the security for this Lease, and in all
matters of collection, whether or not an Event of Default has actually occurred or has been declared and thereafter cured, including, but not limited to, [a] reasonable attorney’s and paralegal’s fees and disbursements; [b] the
fees and expenses of any litigation, administrative, bankruptcy, insolvency, receivership and any other similar proceeding; [c] court costs; [d] the expenses of Landlord, its employees, agents, attorneys and witnesses in preparing

  

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 for litigation, administrative, bankruptcy, insolvency and other proceedings and for lodging, travel, and attendance at
meetings, hearings, depositions, and trials; and [e] consulting and witness fees and expenses incurred by Landlord in connection with any litigation or other proceeding; provided, however, Landlord’s internal bookkeeping and routine lease
servicing costs are not payable by Tenant. 
 24.25 Survival. The following provisions shall survive termination of the Lease:
Article 8 (Defaults and Remedies); Article 9 (Damage and Destruction); Article 10 (Condemnation); §15.9 (Transfer of License and Facility Operations); §15.10 (Bed Operating Rights); Article 19 (Holdover and Surrender);
§20.6 (Retention of Letter of Credit); Article 23 (Security Interest) and §24.25 (Survival). 
 24.26 Time. Time is of
the essence in the performance of this Lease. 
 24.27 Subtenant. Each Subtenant has joined in the execution of this Lease to
acknowledge that Subtenant is subject to and bound by the terms of the Lease applicable to Subtenant, including, without limitation, the grant of a security interest under Article 23. 
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