Document:

LEASE

 

Between

 

CHP PORTLAND, LLC,

a Delaware limited liability company,

 

as Landlord,

 

and

 

SHERIDAN CARE CENTER LLC,

an Oregon limited liability company,

dba Sheridan Care Center,

 

and

 

FERNHILL ESTATES LLC,

an Oregon limited liability company,

dba Fernhill Estates,

 

and

 

PACIFIC GARDENS ESTATES LLC,

an Oregon limited liability company,

dba Pacific Health and Rehabilitation,

 

collectively, as Tenant

 

Date of Lease: As of August 3,
2012

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	1.	Fundamental Lease Provisions; Definitions	1
	 	 	 
	2.	Premises	6
	 	 	 
	3.	No Merger of Title	6
	 	 	 
	4.	Renewal Options	6
	 	 	 
	5.	Use; Licensing Requirements and Operating Covenants	7
	 	 	 
	6.	Rent	10
	 	 	 
	7.	Net Lease; True Lease	11
	 	 	 
	8.	Condition	12
	 	 	 
	9.	Liens	13
	 	 	 
	10.	Repairs and Maintenance	13
	 	 	 
	11.	Compliance With Laws	16
	 	 	 
	12.	Access to Premises	17
	 	 	 
	13.	Waiver of Subrogation	17
	 	 	 
	14.	Damage; Destruction	17
	 	 	 
	15.	Condemnation	20
	 	 	 
	16.	Assignment and Subletting	21
	 	 	 
	17.	Alterations	22
	 	 	 
	18.	Signs	23
	 	 	 
	19.	Surrender	23
	 	 	 
	20.	Subordination of Lease; Mortgage Reserves	24
	 	 	 
	21.	Tenant’s Obligation to Discharge Liens	25
	 	 	 
	22.	Utilities	25
	 	 	 
	23.	Tenant Default	25
	 	 	 
	24.	HUD Loan Requirements	30

 

    	 

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	25.	Rent Payments	34
	 	 	 
	26.	Holdover	34
	 	 	 
	27.	Notices	35
	 	 	 
	28.	Indemnity	35
	 	 	 
	29.	Tenant to Comply with Matters of Record	36
	 	 	 
	30.	Taxes	37
	 	 	 
	31.	Insurance	38
	 	 	 
	32.	Landlord Exculpation	40
	 	 	 
	33.	Landlord’s Title	41
	 	 	 
	34.	Quiet Enjoyment	41
	 	 	 
	35.	Broker	41
	 	 	 
	36.	Transfer of Title	41
	 	 	 
	37.	Management Agreements	42
	 	 	 
	38.	Hazardous Materials	42
	 	 	 
	39.	Estoppel Certificate	46
	 	 	 
	40.	Notice of Lease	47
	 	 	 
	41.	Miscellaneous	47

 

    	ii

    	 

    

 

LIST OF SCHEDULES AND EXHIBITS

 

	Schedule 1	Base Rent Schedule
	 	 
	Exhibit A	Legal Description of Premises
	 	 
	Exhibit B	Permitted Encumbrances
	 	 
	Exhibit C	Approved Management Agreement

 

    	iii

    	 

    

 

LEASE

 

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

 

		1.	Fundamental Lease Provisions; Definitions.

 

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

 

(a)          Date
of Lease. As of August ___, 2012.

 

(b)          Landlord.
CHP Portland, LLC, a Delaware limited liability company (“Landlord”).

 

	Landlord notice address:	CHP Portland, LLC
	 	c/o Cornerstone Real Estate Funds
	 	1920 Main Street, Suite 400
	 	Irvine, California  92614
	 	Attn:  Kent Eikanas
	 	Email:  KEikanas@crefunds.com
	 	Phone:  (949) 812-4335
	 	Fax:  (949) 250-0592
	 	 
	with copy to:	DLA Piper LLP (US)
	 	2000 University Avenue
	 	East Palo Alto, California 94303
	 	Attn:  James E. Anderson, Esq.
	 	Email:  jim.anderson@dlapiper.com
	 	Phone:  (650) 833-2078
	 	Fax:  (650) 687-1158

 

(c)          Tenant.
Sheridan Care Center LLC, an Oregon limited liability company, dba Sheridan Care Center (“Sheridan”), Fernhill
Estates LLC, an Oregon limited liability company, dba Fernhill Estates (“Fernhill”), and Pacific Gardens Estates
LLC, an Oregon limited liability company, dba Pacific Health and Rehabilitation (“Pacific” and collectively
with Sheridan and Fernhill, “Tenant”).

 

	Tenant notice address:	c/o Dakavia Management Corporation
	 	4676 Commercial Street SE, #358
	 	Salem, Oregon 97302-1902
	 	Attn:  Kent Emry
	 	Email:  Kemry@dakavia.com
	 	Phone:  (503) 689-1808
	 	Fax:  (866) 501-9708

 

    	1

    	 

    

 

	with copy to:	Eric W. Jamieson
	 	c/o Garrett Hemann Robertson P.C.
	 	1011 Commercial Street NE
	 	P O Box 749
	 	Salem, Oregon 97308
	 	Email:  ejamieson@ghrlawyers.com
	 	Phone:  (503) 581-1501
	 	Fax:  (503) 581-5891

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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(j)          “Date
of Rent Commencement.” Rent (Base Rent and Additional Rent) for the Fernhill Facility and the Sheridan Facility shall
commence upon the closing of the Fernhill Facility and the Sheridan Facility, whereby fee to the Fernhill Facility and Sheridan
Facility is vested in Landlord, which is anticipated to occur on August 1, 2012, and rent (Base Rent and Additional Rent) for the
Pacific Facility shall commence upon the closing of the Pacific Facility, whereby fee to the Pacific Facility is vested in Landlord,
which is anticipated to occur on or before March 15, 2013.

 

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

 

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

 

(m)          “Facilities.”
Collectively, the Fernhill Facility, the Pacific Facility and the Sheridan Facility.

 

(n)          “Facility.”
Any of the individual Facilities.

 

(o)          “Fernhill
Facility.” The skilled nursing facility located at 5737 NE 37th Avenue, Portland, Oregon, and commonly referred to
as Fernhill Manor.

 

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

 

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

 

(r)          “Healthcare
Business.” The business of operating each Facility for its respective Healthcare Use.

 

(s)          “Healthcare
Use.” The use of the Fernhill Facility, the Pacific Facility and/or the Sheridan Facility as intermediate nursing
care facilities, or as skilled nursing facilities or other statutory or regulatory approved long-term care use approved by Landlord
in its sole and absolute discretion.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(bb)         “Lease
Deposit.” The Lease Deposit shall be in the amount of Four Hundred Twenty Thousand Dollars ($420,000). The Lease
Deposit shall be paid as follows: (i) on the Date of Rent Commencement, a deposit shall be made by Tenant to Landlord in the amount
of One Hundred Forty-three Thousand Three Hundred Thirty-three and 34/100 Dollars ($143,333.34); and (ii) at or before the time
Landlord acquires the vested title in the Pacific Facility, Tenant shall pay the additional amount necessary to increase the Lease
Deposit to a total of Four Hundred Twenty Thousand Dollars ($420,000).

 

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

 

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

 

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

 

(ff)         “Management
Agreement.” The management agreement between Tenant and the manager of the Facilities attached hereto as Schedule
C.

 

(gg)         “Manager.”
The manager of the Facilities pursuant to the Management Agreement, which from the date of rent commencement will be Dakavia Management
Corporation, an Oregon corporation, under the Approved Management Agreement.

 

(hh)         “Minimum
Licensed Beds.” Sixty-three (63) licensed beds at the Fernhill Facility for skilled nursing care, one hundred twelve
(112) licensed beds at the Pacific Facility for skilled nursing care, and fifty-one (51) licensed beds at the Sheridan Facility
for intermediate nursing care and/or skilled nursing care.

 

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(ii)         “Minimum
Rent Coverage.” For any trailing twelve (12) month period, a ratio of EBITDAR to all Base Rent of not less than 1.3
to 1.0, based on the amounts set forth on Schedule 1 attached hereto.

 

(jj)         
“Pacific Facility.” The skilled nursing facility located at 14145 SW 105th Street, Tigard, Oregon 97224,
and commonly referred to as Pacific Health and Rehabilitation.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(rr)         “Required
Advance Notice to Exercise Renewal Options.” Notice to exercise a renewal option shall be provided no earlier than
fifteen (15) months and no later than nine (9) months prior to the expiration of the then-current Term. (See Section 4).

 

    	5

    	 

    

 

(ss)         “Sheridan
Facility.” The intermediate care nursing facility located at 411 SE Sheridan Road, Sheridan, Oregon, and commonly
referred to as Sheridan Care Center.

 

(tt)         “State.”
The State of Oregon.

 

(uu)         “Term.”
The term of this Lease shall commence on the Date of Rent Commencement, and shall expire on the 31st day of July following the
fifteenth (15th) anniversary of the Date of Rent Commencement; all subject to all terms and conditions of this Lease. One Hundred
Eight days prior to termination of this Lease, Landlord shall identify and give Tenant notice of the name of the State-approved
replacement tenant or operator which is licensed to provide skilled nursing care and intermediate nursing care in the State of
Oregon. Tenant shall cooperate with Landlord in the transition to a new tenant.

 

(vv)         “Threshold
Repair Amount.” Twenty-Five Thousand Dollars ($25,000).

 

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

 

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

 

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

 

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5.          Use;
Licensing Requirements and Operating Covenants.

 

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

 

5.2           Licensing
Requirements. During the term of this Lease, the Premises shall be licensed by Tenant for not less than the Minimum Licensed
Beds. However, it is understood that Tenant is expected to use fewer than the current minimum licensed beds in the facility(ies).
Tenant shall at all times maintain in good standing and full force a probationary or non-probationary license issued by the State
and any other governmental agencies permitting the operation within the Pacific Facility and the Fernhill Facility as a skilled
nursing facility of no less than the Minimum Licensed Beds for such Facilities and within the Sheridan Facility as an intermediate
nursing facility of no less than the Minimum Licensed Beds for such Facility (subject to any reduction in the number of licensed
beds required by any governmental authority, solely as a result of changes in laws, rules and regulations relating to the physical
attributes of the improvements on the Premises) and shall at all times maintain in good standing and full force a provider agreement
pursuant to which the Premises shall be entitled to participate in the Medicaid reimbursement program, and when applicable Medicare
reimbursement program in order to receive reimbursement for the services provided at the Premises. Except as otherwise specifically
provided herein no reduction in the number of licensed beds shall entitle Tenant to any reduction or adjustment of the Base Rent
or Additional Rent payable hereunder, which shall be and continue to be payable by Tenant in the full amount set forth herein notwithstanding
any such reduction in the number of licensed beds. Tenant shall, within five (5) business days following its receipt thereof, provide
Landlord with a copy of any notice from the Department of Health and Human Services or any federal, state or municipal governmental
agency, authority and/or court regarding any reduction in the number of licensed beds and Landlord shall have the right, but not
the obligation, to contest, by appropriate legal or administrative proceedings, any such reduction. In the event Tenant temporarily
or permanently loses the right or licensure to operate a skilled nursing facility and/or intermediate nursing facility described
herein, then Tenant may obtain a substitute tenant approved by the State of Oregon to operate the facility(ies) subject to the
consent of the Landlord which consent shall be in Landlord’s sole and absolute discretion.

 

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5.3           Operating
Covenants.

 

(a)          Financial
Reporting.

 

(i)          Within
forty-five (45) days after the end of each of its fiscal years, Tenant shall furnish to Landlord full and complete unaudited financial
statements of the operations of the Facilities for such annual fiscal period which shall be compiled by an independent Certified
Public Accountant and such financial statements shall present fairly the financial condition of Tenant, and which shall contain
a statement of capital changes, balance sheet and detailed income and expense statement (collectively called “Financial
Statements”) as of the end of the fiscal year. Tenant shall also furnish to Landlord a copy of its cost report within
ten (10) days after filing thereof. Each such cost report shall be certified as being true and correct by an officer of Tenant.

 

(ii)         Tenant
shall also furnish to Landlord and to Lender copies of all financial statements for the Facilities for the preceding calendar month
by the thirtieth (30th) day following the last day of said month.

 

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

 

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

 

(v)         In
addition to the above financial statements, Tenant shall also provide to Landlord such other financial statement(s) or information
relating to its operation as required by Landlord or Landlord’s Lender which is customarily maintained by Tenant, which shall
be furnished to Landlord and to Lender not later than the date same are required under the Loan Documents, provided that in the
event of a conflict between the dates required under this Lease for deliveries and the reasonable dates under any Loan Documents
for such deliveries, then the dates for deliveries set forth in the Loan Documents shall control.

 

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(vi)        Tenant
shall keep and maintain or cause to be kept and maintained at all times at the offices of the Manager, or such other place as Landlord
and/or Landlord's Lender may approve in writing, complete and accurate books of accounts and records adequate to reflect the results
of the operations of the Property and to provide the financial statements required to be provided under this Section 5.3 and
copies of all written contracts, correspondence, reports in connection with Landlord's loan, if any, and other documents affecting
the Facilities. Landlord and Landlord's Lender and its designated agents shall have the right to inspect and copy, at their expense,
any of the foregoing. Additionally, Tenant acknowledges that Landlord's Lender shall have the right to audit such records, and
Tenant shall reasonably cooperate with such audit(s). The costs and expenses of the audit shall be paid by Tenant if the audit
discloses a monetary variance in any financial information or computation equal to or greater than the greater of: (a) five
percent (5%) of gross revenue which variance was a result of Tenant’s malfeasance or gross negligence; or (b) Twenty-Five
Thousand Dollars ($25,000.00) more than any computation submitted by Tenant if such variance resulted in a substantial detriment
to Landlord.

 

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

 

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

 

(d)          Occupancy.
On a rolling three (3) month basis, Tenant shall maintain an occupancy level of not less than eighty-five percent (85%) of the
occupancy level existing on the Date of this Lease. As of the Date of this Lease, Tenant represents and warrants to Landlord that
there are not less 35 residents in the Fernhill Facility, 58 residents in the Pacific Facility, and 34 residents in the Sheridan
Facility.

 

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6.          Rent.

 

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

 

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

 

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

 

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

 

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6.5           Lease
Deposit. The Lease Deposit shall be deposited by Tenant with Landlord in accordance with Section 1.2(bb) of this Lease.
The Lease Deposit shall serve as security for the payment and performance of the obligations, covenants, conditions and agreements
contained herein. The Lease Deposit shall not constitute an advance payment of any amounts owed by Tenant under this Lease, nor
a measure of damages to which Landlord shall be entitled upon a breach of this Lease by Tenant or upon termination of this Lease
nor any other limitation on Landlord’s damages or other rights under this Lease nor as a payment of liquidated damages. Landlord
may, without prejudice to any other remedy, use the Lease Deposit to the extent necessary to remedy any default which has lapsed
beyond the applicable notice and cure period in the payment of Base Rent or Additional Rent or to satisfy any other obligation
of Tenant hereunder and to remedy any Event of Default hereunder. In the event that any portion of the Lease Deposit is used by
Landlord as set forth herein, Tenant shall promptly, on demand, restore the Lease Deposit to its original amount. Landlord shall
keep the Lease Deposit separate from its own funds in a separately segregated, interest bearing account. The Lease Deposit shall
not be a limitation on Landlord’s damages or other rights under this Lease, or a payment of liquidated damages, or an advance
payment of the Base Rent. Landlord shall return the unused portion of the Lease Deposit to Tenant within thirty (30) days after
the end of the Term. If Landlord transfers its interest in the Premises during the Term, Landlord shall assign the Lease Deposit
to the transferee who shall become obligated to Tenant for its return pursuant to the terms of this Lease, and thereafter Landlord
shall have no further liability for its return, provided assignee shall assume such obligations in writing.

 

7.          Net
Lease; True Lease.

 

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

 

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

 

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

 

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

 

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

 

10.         Repairs
and Maintenance.

 

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

 

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

 

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

 

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10.4         Inspection
Prior to Expiration of Term. One (1) year prior to the expiration of the Term of this Lease, Tenant shall at its own expense
cause the Premises to be inspected, the results of which shall be made available to Landlord and Lender not less than eleven (11)
months prior to the end of the Term, to determine whether the condition of the Premises complies with the requirements of this
Lease. In addition to any document or information which Tenant is expressly required to deliver pursuant to this Lease, Tenant
will also deliver to Landlord, promptly upon request, information with reasonably available to Tenant with respect to the Premises
reasonably (both as to content and frequency) requested by Lender pursuant to the Mortgage or other documents evidencing or securing
the Loan; provided that this shall not increase the obligations of Tenant to deliver environmental reports beyond that required
in Section 38. Neither Landlord nor Lender shall request such information more than annually unless a change in circumstances
after the Rent Commencement Date makes it reasonable to request information more frequently.

 

10.5         Lender
Required Repairs. Tenant shall be responsible for any repairs to the Facilities or reserves for repairs to the Facilities required
by Lender in accordance with the Loan Documents. Landlord shall provide a copy of Loan Documents to Tenant upon receipt of the
Loan Documents by Landlord.

 

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

 

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

 

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11.         Compliance
With Laws.

 

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

 

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

 

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12.         Access
to Premises.

 

12.1         Access
Rights. Upon reasonable notice to Tenant, Landlord and Lender and their respective employees, contractors, agents and representatives
may enter upon the Premises to (i) show the Premises to purchasers and potential purchasers, and to mortgagees and potential
mortgagees, or (ii) for the purpose of inspecting the Premises or performing any work which Landlord is permitted to perform
under this Lease; provided, that, for purposes of subpart (ii) of this sentence, Landlord and Lender shall not be required
to give notice prior to entry onto the Premises in the event of an emergency situation. Upon reasonable notice to Tenant, during
the six (6) months preceding the expiration or earlier termination of this Lease, Landlord also may enter onto the Premises to
show the Premises to persons wishing to rent the same, at reasonable times and accompanied by a representative of Tenant. No such
entry shall constitute an eviction of Tenant but any such entry shall be done by Landlord in such reasonable manner as to minimize
any disruption of Tenant’s business operations. Provided, however, that neither Landlord nor Lender shall enter the Premises
as described above or stay on the Premises in a manner which unreasonably disrupts Tenant’s activities and operations of
Tenant’s business on the Premises nor in violation of any Law.

 

12.2         Lender
Meetings. Upon request of Lender, Tenant will arrange for meetings between such Lender (or its representatives) and a representative
of Tenant designated by Tenant to discuss operations at the Premises; provided, that Tenant shall not be obligated to arrange
for such meetings more than once in each calendar quarter. If allowed by the Lender, such meetings may be by telephone, email or
other electronic method as may be reasonable under the circumstances and in view of the meeting cost.

 

12.3         Lender’s
Rights under Mortgage. Further, to the extent allowed by Law, Tenant hereby agrees to the licenses and other rights to enter
onto the Premises which are granted to Lender under the Mortgage. Provided, however, that Tenant shall not be required to obtain
from any occupant of the Premises a waiver of any Law relating to the occupant’s privacy or notice prior to inspection.

 

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

 

14.         Damage;
Destruction.

 

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

 

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

 

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

 

14.4         Tenant
shall, whether or not the Net Proceeds of such insurance are sufficient for the purpose or delivered to Tenant, promptly complete
the Restoration of the Improvements damaged by any such Casualty in compliance with all requirements set forth in this Lease and
all Legal Requirements, and such Restoration shall be completed in such a manner as not to impair the market value or usefulness
of the Premises for use in Tenant’s ordinary course of business, all at Tenant’s sole cost and expense. Tenant shall
notify Landlord in writing of the estimated cost thereof (the “Restoration Cost”). Landlord and its agents,
employees and contractors shall have the right to enter the Premises for the purpose of assessing and adjusting the amount of the
Restoration Cost, and Landlord shall have the right in its reasonable discretion to reasonably approve the amount of the Restoration
Cost. Tenant shall not have any right to abate the payment of Fixed Rent or Additional Rent as a result of any Casualty. Notwithstanding
anything to the contrary, unless if otherwise provided in the Loan Documents, all insurance proceeds shall be utilized for payment
of the Restoration Costs or deposited in the Capital Reserve and the Capital Reserves may be utilized to pay all or portion of
the restoration costs if the insurance proceeds are not sufficient to do so.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15.         Condemnation.

 

15.1         Promptly
upon obtaining knowledge of any proceeding for condemnation or eminent domain with respect to the Premises (a “Taking”
or “Condemnation”), Tenant and Landlord shall each notify the other and Lender, and each shall be entitled to
participate in such proceeding at Tenant’s sole expense. Tenant shall pay the costs of such proceeding and Tenant and Landlord,
to the extent ethically possible, shall utilize the same legal counsel in such proceeding. Provided, however, that if the Condemnation
Award for the applicable Facility exceeds the Landlord’s Purchase Price for the Facility that is subject to the Taking by
more than $2,000,000, the excess funds above that amount (i.e. Purchase Price for the Facility plus $2,000,000) shall first
be paid to Tenant to reimburse Tenant for its attorneys’ fees and costs incurred in the Condemnation proceeding, and any
remaining proceeds shall thereafter shall be paid to Landlord. Subject to the provisions of this Section 15, Tenant hereby
irrevocably assigns to Landlord’s Lender or to Landlord, in that order, any award or payment in respect of any Condemnation
of the Premises, except that (except as hereinafter provided) nothing in this Lease shall be deemed to assign to Landlord or Lender
any award relating to the value of the leasehold interest created by this Lease or any award or payment on account of an interruption
of Tenant’s business at the Premises or the Tenant’s trade fixtures, moving expenses and out-of-pocket expenses incidental
to the move, if available, to the extent Tenant shall have a right to make a separate claim therefor against the condemnor, it
being agreed, however, that Tenant shall in no event be entitled to any payment that reduces the award to which Landlord is or
would be entitled for the condemnation of Landlord’s interest in the Premises.

 

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

 

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

 

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

 

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

 

16.         Assignment
and Subletting.

 

16.1         Except
in the normal course of Tenant’s business, Tenant shall not have the right to assign this Lease nor any interest therein,
nor to sublet the whole or any part of the Premises without the prior written consent of Landlord, which consent may be withheld
in Landlord’s sole and absolute discretion. Landlord and Tenant agree that Tenant may lease a portion of the Premises to
a provider of rehabilitation services, physical therapy services, or similar service provider, after obtaining the written consent
of Landlord which consent shall not be unreasonably withheld. In the event of any permitted assignment of the Lease or a sublease
of a portion of the Premises described in this Lease, Tenant shall remain liable for the obligations of Tenant hereunder, which
liability of Tenant shall be and remain that of a primary obligor and not a guarantor or surety. Tenant agrees that in the case
of a permitted assignment of this Lease, Tenant shall, within fifteen (15) days after the execution and delivery of any such
assignment, deliver to Landlord (i) a duplicate original of such assignment in recordable form and (ii) an agreement
executed and acknowledged by the assignee in recordable form wherein the assignee shall agree to assume and agree to observe and
perform all of the terms and provisions of this Lease on the part of the Tenant to be observed and performed from and after the
date of such assignment. In the case of a permitted sublease, Tenant shall, within fifteen (15) days after the execution and
delivery of such sublease, deliver to Landlord a duplicate original of such sublease. Any sublease or license relating to the Premises
shall be subject to and subordinate to this Lease. In no event shall Tenant be permitted to assign this Lease to an entity with
long-term unsecured debt rated below the minimum rating.

 

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

 

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

 

17.         Alterations.

 

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

 

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

 

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

 

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

 

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

 

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

 

19.         Surrender.

 

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

 

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

 

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

 

20.         Subordination
of Lease; Mortgage Reserves.

 

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

 

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20.2         Attornment.
Tenant agrees to attorn, from time to time, to Lender, and to any purchaser of the Premises, for the remainder of the Term, provided
that Lender or such purchaser shall then be entitled to possession of the Premises, subject to the provisions of this Lease. This
subsection shall inure to the benefit of Lender or such purchaser, shall apply notwithstanding that, as a matter of Law, this Lease
may terminate upon the foreclosure of the Mortgage (in which event the parties shall execute a new lease for the remainder of the
Term containing the provisions of this Lease), shall be self-operative upon any such demand, and no further instrument shall be
required to give effect to said provisions. Each such party shall however, upon demand of the other, execute instruments in confirmation
of the foregoing provisions reasonably satisfactory to the requesting party acknowledging such subordination, non-disturbance and
attornment and setting forth the terms and conditions hereof.

 

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

 

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

 

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

 

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

 

23.         Tenant
Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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23.2         If
an Event of Default shall have occurred and be continuing, Landlord shall be entitled to all remedies available at law or in equity.
Without limiting the foregoing, Landlord shall have the right to give Tenant notice of Landlord’s termination of the Term
of this Lease. Upon the giving of such notice, the Term of this Lease and the estate hereby granted shall expire and terminate
on such date as fully and completely and with the same effect as if such date were the date herein fixed for the expiration of
the Term of this Lease, and all rights of Tenant hereunder shall expire and terminate, but Tenant shall remain liable as hereinafter
provided.

 

23.3         To
the extent allowable under applicable Law, if an Event of Default shall have occurred and be continuing, Landlord shall have the
immediate right, whether or not the Term of this Lease shall have been terminated pursuant to Section 23.2, to re-enter and
repossess the Premises and the right to remove all persons and property therefrom by summary proceedings, ejectment, any other
legal action or in any lawful manner Landlord determines to be necessary or desirable. Landlord shall be under no liability by
reason of any such re-entry, repossession or removal unless such re-entry, repossession or removal has not been authorized and
approved by any and all federal, state and/or local governmental agencies having jurisdiction. Such re-entry, repossession or removal
shall be construed as an election by Landlord to terminate this Lease unless a notice of such termination is given to Tenant pursuant
to Section 23.2.

 

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

 

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

 

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

 

23.7         At
any time after any such expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal
of persons or property thereon by reason of the occurrence of an Event of Default, whether or not Landlord shall have collected
any liquidated and agreed current damages pursuant to Section 23.6, Landlord shall be entitled to recover from Tenant, and
Tenant shall pay to Landlord on demand, as and for liquidated and agreed final damages for Tenant’s default and in lieu of
all liquidated and agreed current damages beyond the date of such demand (it being agreed that it would be impracticable or extremely
difficult to fix the actual damages), an amount equal to the sum of (i) the excess, if any of (A) the aggregate of all
Base Rent, Additional Rent and other sums which would be payable under this Lease, in each case from the date of such demand (or,
if it be earlier, the date to which Tenant shall have satisfied in full its obligations under Section 23.6 to pay liquidated
and agreed current damages) for what would be the then-unexpired Term of this Lease in the absence of such expiration, termination,
re-entry, repossession or removal, discounted at the rate equal to the then current rate on U.S. Treasury obligations of comparable
maturity to such Term (the “Treasury Rate”), but in no event greater than the non-default rate of interest for
the Loan (such lower rate being referred to as the “Discount Rate”) over (B) the amount of such rental
loss that Tenant proves could be reasonably avoided by commercially reasonable mitigation efforts by Landlord, discounted at the
Discount Rate for the same period, plus (ii) all reasonable legal fees and other costs and expenses incurred by Landlord and
Lender as a result of Tenant’s default under this Lease. If any Law shall limit the amount of liquidated final damages to
less than the amount above agreed upon, Landlord shall be entitled to the maximum amount allowable under such Law.

 

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

 

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

 

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

 

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

 

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

 

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

 

24.3         Compliance
with HUD Program Requirements and HUD Loan Documents.

 

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

 

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

 

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24.4         Subordination.

 

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

 

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

 

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

 

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

 

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

 

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

 

24.9         Licenses;
Bed Authority. Tenant shall ensure that each Facility meets all state licensure requirements and standards at all times. Landlord
and Tenant agree not to undertake or acquiesce to any modification to any license with respect to the Premises or to any “bed
authority” related thereto without the prior written approval of HUD. Provided, however, that in the event each Facility
does not meet all state licensure requirements and standards, Tenant shall have a reasonable period of time, as provided by applicable
Laws, to take the appropriate corrective action towards meeting such state licensure requirements and standards.

 

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

 

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

 

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

 

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24.13         Insurance;
Casualty; Condemnation. Tenant agrees to procure and maintain, or cause to be procured and maintained, the insurance coverage
required pursuant to the HUD Loan Documents and/or applicable HUD Requirements, including HUD Notices H 04-01 and H 04-15. Insurance
proceeds and the proceeds of any condemnation award or other compensation paid by reason of a conveyance in lieu of the exercise
of such power, with respect to the Premises, or any portion thereof, shall be applied in accordance with the terms of the HUD Loan
Documents and applicable HUD Program Requirements. The decision to repair, reconstruct, restore or replace the Premises following
a casualty or condemnation shall be subject to the terms of the HUD Loan Documents and applicable HUD Requirements.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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30.         Taxes.

 

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

 

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

 

31.         Insurance.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

38.         Hazardous
Materials.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

38.8         The
indemnity obligations of the Tenant and the rights and remedies of the Landlord under this Section 38 shall survive the expiration
or termination of this Lease.

 

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

 

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

 

41.         Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	 	LANDLORD:
	 	 
	 	CHP PORTLAND, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:	/s/ Kent  Eikanas
	 	Name:	 Kent  Eikanas
	 	Its:	COO

 

	 	TENANT:
	 	 
	 	SHERIDAN CARE CENTER LLC,
	 	an Oregon limited liability company,
	 	dba Sheridan Care Center
	 	 	 
	 	By:	/s/ Kent M. Emry
	 	Name:	Kent M. Emry
	 	Its:	Managing Member

 

    	49

    	 

    

 

	 	FERNHILL ESTATES LLC,
	 	an Oregon limited liability company,
	 	dba Fernhill Estates
	 	 	 
	 	By:	/s/ Kent M. Emry
	 	Name:	Kent M. Emry
	 	Its:	Managing Member
	 	 	 
	 	PACIFIC GARDENS ESTATES LLC,
	 	an Oregon limited liability company,
	 	dba Pacific Health and Rehabilitation
	 	 	 
	 	By:	/s/ Kent M. Emry
	 	Name:	Kent M. Emry
	 	Its:	Managing Member

 

    	50

    	 

    

 

SCHEDULE 1

 

BASE RENT SCHEDULE

 

	Annual Base Rent	 	 	Year	 	 	Monthly Base Rent	 
	 	 	 	 	 	 	 	 
	$	1,680,000.00	 	 	 	1	 	 	$	140,000.00	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,713,600.00	 	 	 	2	 	 	 	142,800.00	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,747,872.00	 	 	 	3	 	 	 	145,656.00	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,782,829.44	 	 	 	4	 	 	 	148,569.12	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,818,486.03	 	 	 	5	 	 	 	151,540.50	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,854,855.75	 	 	 	6	 	 	 	154,571.31	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,891,952.86	 	 	 	7	 	 	 	157,662.74	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,929,791.92	 	 	 	8	 	 	 	160,815.99	 
	 	 	 	 	 	 	 	 	 	 	 
	$	1,968,387.75	 	 	 	9	 	 	 	164,032.31	 
	 	 	 	 	 	 	 	 	 	 	 
	$	2,007,755.52	 	 	 	10	 	 	 	167,312.96	 
	 	 	 	 	 	 	 	 	 	 	 
	$	2,047,910.63	 	 	 	11	 	 	 	170,659.22	 
	 	 	 	 	 	 	 	 	 	 	 
	$	2,088,868.84	 	 	 	12	 	 	 	174,072.40	 
	 	 	 	 	 	 	 	 	 	 	 
	$	2,130,646.21	 	 	 	13	 	 	 	177,553.85	 
	 	 	 	 	 	 	 	 	 	 	 
	$	2,173,259.14	 	 	 	14	 	 	 	181,104.93	 
	 	 	 	 	 	 	 	 	 	 	 
	$	2,216,724.32	 	 	 	15	 	 	 	184,727.03	 

 

    	S-1

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION OF THE PREMISES

 

 

    	 

    	 

    

 

 

    	3

    	 

    

 

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

Those matters referred to in the Proforma Policies for the Facilities
attached hereto.

 

[Proforma Policies to be Attached]

 

    	 

    	 

    

 

EXHIBIT C

 

APPROVED MANAGEMENT AGREEMENT

 

[ATTACHED HERETO]LEASE

 

Between

 

CHP Medford 1, LLC,

a Delaware limited liability company

 

as Landlord,

 

and

 

RSL Medford, LLC,

an Oregon limited liability company

 

as Tenant

 

Date of Lease: As of September 14, 2012

 

    	 

    	 

    

 

Table
of Contents

 

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

 

    	 

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	25.	Rent Payments	32
	 	 	 
	26.	Holdover	32
	 	 	 
	27.	Notices	33
	 	 	 
	28.	Indemnity	33
	 	 	 
	29.	Tenant to Comply with Matters of Record	34
	 	 	 
	30.	Taxes	35
	 	 	 
	31.	Insurance	36
	 	 	 
	32.	Landlord Exculpation	38
	 	 	 
	33.	Landlord’s Title	39
	 	 	 
	34.	Quiet Enjoyment	39
	 	 	 
	35.	Broker	39
	 	 	 
	36.	Transfer of Title	39
	 	 	 
	37.	Management Agreements	40
	 	 	 
	38.	Hazardous Materials	40
	 	 	 
	39.	Estoppel Certificate	45
	 	 	 
	40.	Notice of Lease	45
	 	 	 
	41.	Miscellaneous	45
	 	 	 
	42.	Tenant’s Purchase Option	47

 

    	ii

    	 

    

 

LIST OF SCHEDULES AND EXHIBITS

 

	
        Schedule 1

         
	
        Base Rent Schedule

         

	Exhibit A	
        Legal Description of Premises

         

	Exhibit B	
        Permitted Encumbrances

         

	
        Exhibit C

         

        Exhibit D
	
        Approved Management Agreement

         

        Memorandum of Option Agreement

 

    	iii

    	 

    

 

LEASE

 

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

 

1.     
     Fundamental Lease Provisions; Definitions.

 

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

 

(a)          Date
of Lease. As set forth on cover page of this Lease.

 

(b)           Landlord.
CHP Medford 1, LLC, a Delaware limited liability company (“Landlord”).

 

	Landlord notice address:	CHP Medford 1, LLC

c/o Cornerstone Real Estate Funds

1920 Main Street, Suite 400

Irvine, California 92614

Attn: Kent Eikanas

E-mail: KEikanas@crefunds.com

Telephone: (949) 812-4335

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

        2000 University Avenue

        East Palo Alto, California 94303

        Attn: James E. Anderson, Esq.

        E-mail: jim.anderson@dlapiper.com

        Telephone: (650) 833-2078

        Fax: (650) 687-1158

 

(c)          Tenant.
RSL Medford, LLC, an Oregon limited liability company (“Tenant”).

 

	Tenant notice address:	
        RSL Medford, LLC

        10220 S.W. Greenberg Road, Suite 201

        Portland, Oregon 97223

        Attn: James T. Guffee

        E-mail: james@radiantseniorliving.com

        Telephone: (503) 595-2810

        Fax: (503) 595-2818

 

    	Page 1 – LEASE

    	 

    

 

	with copy to:	Black Helterline LLP

805 S.W. Broadway, Suite 1900

Portland, Oregon 97205

Attn: Steven M. Zipper, Esq.

E-mail: smz@bhlaw.com

Telephone: (503) 224-5560

Fax: (503) 224-6148

 

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

 

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

 

(b)          “Approved
Management Agreement.” That certain management agreement, dated September 10, 2012, for the Premises by and between
Tenant and Manager attached hereto as Exhibit C.

 

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

 

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

 

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

 

(f)          “Base
Rent.” The amounts set forth on Schedule 1 hereto for the respective periods specified thereon. (See Section 6.1.)

 

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

 

(h)          “C&C
Threshold Repair Amount.” Fifty Thousand and No/100 Dollars ($50,000.00).

 

(i)          “Capital
Reserve Deposits.” The deposits required to be made by Tenant in the amount of Three Hundred Fifty and No/100 Dollars
($350.00) per bed, annually.

 

    	Page 2 – LEASE

    	 

    

 

(j)          “Date
of Rent Commencement.” The Date of Lease.

 

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

 

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

 

(m)         “Facility.”
The memory care facility located at 1530 Poplar Drive, Medford, Oregon 97504 and commonly known as Farmington Square Medford.

 

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

 

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

 

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

 

(q)          “Healthcare
Use.” The use of the Facility for a memory care facility.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	Page 3 – LEASE

    	 

    

 

(y)          “Lease
Default Rate.” The lower of (a) thirteen percent (13%) per annum, or (b) the highest rate permitted to be contracted
for under applicable Law.

 

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

 

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

 

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

 

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

 

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

 

(ee)         “Manager.”
The manager of the Facility pursuant to the Management Agreement, which currently is Radiant Senior Living, Inc., under the Approved
Management Agreement.

 

(ff)         “Minimum
Licensed Beds.” Seventy-one (71) licensed beds for a memory care facility.

 

(gg)         “Minimum
Rent Coverage.” For any trailing six (6) month period, a ratio of EBITDAR to all Base Rent and all other rent payable
under this Lease of not less than 1.1 to 1.0.

 

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

 

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

 

    	Page 4 – LEASE

    	 

    

 

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

 

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

 

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

 

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

 

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

 

(oo)         “Required
Advance Notice to Exercise Renewal Options.” Notice to exercise a renewal option shall be provided no earlier than three
hundred sixty (360) days and no later than one hundred eighty (180) days prior to the expiration of the then-current Term. (See
Section 4).

 

(pp)         “State.”
The State of Oregon.

 

(qq)         “Term.”
The term of this Lease shall commence on the Date of Rent Commencement, and shall expire on the 30th day of September following
the tenth (10th) anniversary of the Date of Rent Commencement; all subject to all terms and conditions of this Lease.

 

(rr)         “Threshold
Repair Amount.” Ten Thousand and No/100 Dollars ($10,000.00).

 

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

 

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

 

    	Page 5 – LEASE

    	 

    

 

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

 

5.    
      Use; Licensing Requirements and Operating Covenants.

 

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

 

    	Page 6 – LEASE

    	 

    

 

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

 

5.3          Operating
Covenants.

 

(a)          Financial
Reporting.

 

(i)          Within
seventy-five (75) days after the end of each of its fiscal years, Tenant shall furnish to Landlord full and complete unaudited
financial statements of the operations of the Facility for such annual fiscal period which shall be reviewed by an independent
Certified Public Accountant selected by Tenant and such financial statements shall present fairly the financial condition of Tenant,
and which shall contain a statement of capital changes, balance sheet and detailed income and expense statement (collectively called
“Financial Statements”) as of the end of the fiscal year. Tenant shall also furnish to Landlord a copy of its
cost report within ten (10) days after filing thereof. Each such cost report shall be certified as being true and correct by an
officer of Tenant.

 

(ii)         Tenant
shall also furnish to Landlord and to Lender copies of a balance sheet, income statement and cash flow statement for the Facility
for the preceding calendar month by the thirtieth (30th) day following the last day of said month.

 

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

 

    	Page 7 – LEASE

    	 

    

 

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

 

(v)         In
addition to the above financial statements, Tenant shall also provide to Landlord such other financial statement(s) or information
relating to its operation as reasonably requested by Landlord which is customarily maintained by Tenant, which shall be furnished
to Landlord and to Lender not later than the date same are required under the Loan Documents, provided that in the event of a conflict
between the dates required under this Lease for deliveries and the dates under any Loan Documents for such deliveries, then the
dates for deliveries set forth in the Loan Documents shall control.

 

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

 

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

 

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

 

    	Page 8 – LEASE

    	 

    

 

(d)          Occupancy.
On a rolling three (3) month basis, Tenant shall maintain an occupancy level of no less than ninety percent (90%) of the average
occupancy for the trailing twelve (12) months prior to the Date of this Lease. Tenant represents and warrants to Landlord that
the average occupancy over the trailing twelve (12) months prior to the Date of this Lease is 53.1 residents.

 

6.        
  Rent.

 

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

 

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

 

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

 

    	Page 9 – LEASE

    	 

    

 

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

 

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

 

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7.      
    Net Lease; True Lease.

 

7.1           Net
Lease. The obligations of Tenant hereunder shall be separate and independent covenants and agreements, and Base Rent, Additional
Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events, and except as expressly provided
otherwise in this Lease, the obligations of Tenant hereunder shall continue during the Term, unless the requirement to pay or perform
the same shall have been terminated pursuant to the provisions of Section 14 or Section 15. This is an absolute net lease,
and Base Rent, Additional Rent and all other sums payable hereunder by Tenant shall be paid without notice or demand, and without
setoff, counterclaim, recoupment, abatement, suspension, reduction or defense. This Lease is the absolute and unconditional obligation
of Tenant, and the obligations of Tenant under this Lease shall not be affected by any interference with Tenant’s use of
any of the Premises for any reason, including, but not limited to, the following: (i) any damage to or destruction of any
of the Premises by any cause whatsoever (except as expressly provided otherwise in Section 14), (ii) any Condemnation
(except as expressly provided otherwise in Section 15), (iii) the prohibition, limitation or restriction of Tenant’s
use of any of the Premises, (iv) Tenant’s acquisition of ownership of any of the Premises other than pursuant to an
express provision of this Lease, (v) any default on the part of Landlord under this Lease or under any other agreement, (vi)
any latent or other defect in, or any theft or loss of any of the Premises, (vii) any violation of Section 34 by Landlord
(provided, that this Section 7.1(vii) shall not limit Tenant’s rights, if any, to seek injunctive relief against Landlord
for violation of said Section 34), or (viii) any other cause, whether similar or dissimilar to the foregoing, any present
or future Law to the contrary notwithstanding. Except as otherwise set forth herein, all costs and expenses (other than depreciation,
interest on and amortization of debt incurred by Landlord, and costs incurred by Landlord in financing or refinancing the Premises)
and other obligations of every kind and nature whatsoever relating to the Premises and the appurtenances thereto and the use and
occupancy thereof which may arise or become due and payable with respect to the period which ends on the expiration or earlier
termination of the Term in accordance with the provisions hereof (whether or not the same shall become payable during the Term
or thereafter) shall be paid and performed by Tenant. Tenant shall pay all expenses related to the maintenance and repair of the
Premises, and taxes and insurance costs. This Lease shall not terminate and Tenant shall not have any right to terminate this Lease
(except as otherwise expressly provided in this Lease), or to abate Base Rent or Additional Rent during the Term.

 

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

 

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

 

    	Page 11 – LEASE

    	 

    

 

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

 

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

 

10.         Repairs
and Maintenance.

 

10.1         Tenant’s
Repair and Maintenance Obligations. Tenant shall keep, maintain and repair, at its sole cost and expense, the Premises, including,
without limitation, the roof walls, footings, foundations, HVAC, mechanical and electrical equipment and systems in or serving
the Premises and structural and nonstructural components and systems of the Premises, parking areas, sidewalks, roadways and landscaping
in safe and good condition and repair, and shall make all repairs and replacements (substantially equivalent in quality and workmanship
to the original work) of every kind and nature, whether foreseen or unforeseen, which may be required to be made, in order to keep
and maintain the Premises in good repair and condition, except for ordinary wear and tear and (other than for any Restoration required
by the terms of this Lease) any damage to the Premises by any Major Condemnation of the Premises. Tenant shall prevent deferred
maintenance from accumulating at the Premises. Landlord shall have the right to enter the Premises at reasonable times and upon
at least twenty-four (24) hours’ notice to Tenant to perform annual inspections of the Premises to ensure that the Premises
are maintained in good working order and that the Premises are free from maintenance issues and any other issues which would decrease
the value of the Premises once returned to Landlord at the end of the Term. Tenant shall do or cause others to do all shoring of
the Premises or of the foundations and walls of the Facility and every other act necessary or appropriate for the preservation
and safety thereof (including, without limitation, any repairs required by Law as contemplated by Section 11), by reason or
in connection with any excavation or other building operation upon the Premises, and Landlord shall have no obligation to do so.
Landlord shall not be required to make any repair, replacement, maintenance or other work whatsoever, or to maintain the Premises
in any way. Nothing in the preceding sentence shall be deemed to preclude Tenant from being entitled to insurance proceeds or awards
for any taking to the extent provided in this Lease. Tenant shall, in all events, make all repairs, replacements and perform maintenance
and other work for which it is responsible hereunder, in a good, proper and workmanlike manner. Without limiting the generality
of the foregoing, Tenant shall be responsible for the performance of all maintenance and repairs of the Facility.

 

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

 

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

 

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

 

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

 

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

 

10.7         Capital
Reserve Deposits. Tenant shall be required to make monthly deposits with Landlord in an amount equal to one-twelfth (1/12)
(or such greater amount as may be reasonably required by Lender) of the Capital Reserve Deposit to fund future anticipated capital
expenditures. The Capital Reserve Deposits shall be due and payable on the first (1st) day of each month as Additional Rent. The
Capital Reserve Deposits shall not bear interest, unless interest on the Capital Reserve Deposits is paid to Landlord by Lender.
The Capital Reserve Deposits shall be held by Landlord and/or Lender and shall be used to pay the capital expenditures as they
become due and payable. If the amount of Tenant’s payments as made under this Section 10.7 shall be less than the total
amount due or otherwise required, then Tenant shall pay the full deficiency. Tenant shall provide all capital expenditure draw
requests to Landlord in writing, along with receipts and or invoices documenting the amount of the capital expenditure to be reimbursed
by Landlord. Upon receipt of such receipts, invoices and/or additional documentation reasonably requested by Landlord, Landlord
shall reimburse Tenant within ten (10) business days for such costs up to the amount of Capital Reserve Deposits made by Tenant
and then being held by Landlord and/or Lender.

 

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11.         Compliance
With Laws.

  

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

 

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

 

12.         Access
to Premises.

 

12.1         Access
Rights. Upon at least twenty-four (24) hours’ notice to Tenant, Landlord and Lender and their respective employees, contractors,
agents and representatives may enter onto the Premises to (i) show the Premises to purchasers and potential purchasers, and to
mortgagees and potential mortgagees, or (ii) for the purpose of inspecting the Premises or performing any work which Landlord is
permitted to perform under this Lease; provided, that, for purposes of subpart (ii) of this sentence, Landlord and Lender shall
not be required to give notice prior to entry onto the Premises in the event of an emergency situation. Upon at least twenty-four
(24) hours’ notice to Tenant, during the six (6) months preceding the expiration or earlier termination of this Lease, Landlord
also may enter onto the Premises to show the Premises to persons wishing to rent the same, at reasonable times and accompanied
by a representative of Tenant. No such entry shall constitute an eviction of Tenant, but any such entry shall be done by Landlord
in such reasonable manner as to minimize any disruption of Tenant’s business operations.

 

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

 

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

 

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

 

14.         Damage;
Destruction.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	Page 17 – LEASE

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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15.         Condemnation.

 

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

 

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

 

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

 

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

 

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

 

16.         Assignment
and Subletting.

 

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

 

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

 

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

 

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17.         Alterations.

 

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

 

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

 

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

 

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

 

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

 

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

 

19.         Surrender.

 

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

 

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

 

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

 

20.         Subordination
of Lease; Mortgage Reserves.

 

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

 

20.2         Attornment.
Tenant agrees to attorn, from time to time, to Lender, HUD Lender or to any purchaser of the Premises, for the remainder of the
Term, provided that Lender, HUD Lender or such purchaser shall be entitled to possession of the Premises, subject to the provisions
of this Lease. This subsection shall inure to the benefit of Lender or such purchaser, shall apply notwithstanding that, as a matter
of Law, this Lease may terminate upon the foreclosure of the Mortgage (in which event the parties shall execute a new lease for
the remainder of the Term containing the provisions of this Lease), shall be self-operative upon any such demand, and no further
instrument shall be required to give effect to said provisions. Each such party shall however, upon demand of the other, execute
instruments in confirmation of the foregoing provisions reasonably satisfactory to the requesting party acknowledging such subordination,
non-disturbance and attornment and setting forth the terms and conditions hereof.

 

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

 

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

 

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

 

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

 

23.         Tenant
Default.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	Page 24 – LEASE

    	 

    

 

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

 

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

 

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

 

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

 

23.2         If
an Event of Default shall have occurred and be continuing, Landlord shall be entitled to all remedies available at law or in equity.
Without limiting the foregoing, Landlord shall have the right to give Tenant notice of Landlord’s termination of the Term
of this Lease. Upon the giving of such notice, the Term of this Lease and the estate hereby granted shall expire and terminate
on such date as fully and completely and with the same effect as if such date were the date herein fixed for the expiration of
the Term of this Lease, and all rights of Tenant hereunder shall expire and terminate, but Tenant shall remain liable as hereinafter
provided.

 

23.3         If
an Event of Default shall have occurred and be continuing, Landlord shall have the immediate right, whether or not the Term of
this Lease shall have been terminated pursuant to Section 23.2, to re-enter and repossess the Premises and the right to remove
all persons and property therefrom by summary proceedings, ejectment, any other legal action or in any lawful manner Landlord determines
to be necessary or desirable. Landlord shall be under no liability by reason of any such re-entry, repossession or removal. No
such re-entry, repossession or removal shall be construed as an election by Landlord to terminate this Lease unless a notice of
such termination is given to Tenant pursuant to Section 23.2.

 

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

 

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

 

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

 

23.7         At
any time after any such expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal
of persons or property thereon by reason of the occurrence of an Event of Default, whether or not Landlord shall have collected
any liquidated and agreed current damages pursuant to Section 23.6, Landlord shall be entitled to recover from Tenant, and
Tenant shall pay to Landlord on demand, as and for liquidated and agreed final damages for Tenant’s default and in lieu of
all liquidated and agreed current damages beyond the date of such demand (it being agreed that it would be impracticable or extremely
difficult to fix the actual damages), an amount equal to the sum of (i) the excess, if any, of (A) the aggregate of all
Base Rent, Additional Rent and other sums which would be payable under this Lease, in each case from the date of such demand (or,
if it be earlier, the date to which Tenant shall have satisfied in full its obligations under Section 23.6 to pay liquidated
and agreed current damages) for what would be the then-unexpired Term of this Lease in the absence of such expiration, termination,
re-entry, repossession or removal, discounted at the rate equal to the then-current rate on U.S. Treasury obligations of comparable
maturity to such Term (the “Treasury Rate”), but in no event greater than the non-default rate of interest for
the Loan (such lower rate being referred to as the “Discount Rate”) over (B) the amount of such rental
loss that Tenant proves could be reasonably avoided by commercially reasonable mitigation efforts by Landlord, discounted at the
Discount Rate for the same period, plus (ii) all reasonable legal fees and other costs and expenses incurred by Landlord and
Lender as a result of Tenant’s default under this Lease. If any Law shall limit the amount of liquidated final damages to
less than the amount above agreed upon, Landlord shall be entitled to the maximum amount allowable under such Law.

 

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

 

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

 

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

 

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

 

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

 

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

 

24.3        Compliance
with HUD Program Requirements and HUD Loan Documents.

 

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

 

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

 

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24.4        Subordination.

 

(a)          This
Lease is and shall be subject and subordinate to the Mortgage and other HUD Loan Documents; to all renewals, modifications, consolidations,
replacements and extensions thereof; to all substitutions thereof; and to all future mortgages upon the Premises and/or other security
interests in or to the Premises and any other items which are herein leased to Tenant or which, pursuant to the terms hereof, become
a part of the Premises or are otherwise deemed to become the property of Landlord or to remain upon the Premises at the end of
the term; and to each advance made or hereafter to be made under any of the foregoing. This Section shall be self-operative and
no further instrument of subordination shall be required. Without limiting the foregoing, Tenant agrees to execute and deliver
promptly any and all certificates, agreements and other instruments that Landlord, Lender or HUD may reasonably request in order
to confirm such subordination. Unless Lender shall have agreed otherwise, if Lender or another person or entity shall succeed to
the interest of Landlord by reason of foreclosure or other proceedings brought by Lender in lieu of or pursuant to a foreclosure,
or by any other manner (Lender or such other person or entity being called a “Successor”), then this Lease shall nevertheless
continue in full force and effect and Tenant shall and does hereby agree to attorn to the Successor and to recognize the Successor
as its landlord under the terms of this Lease pursuant to the SNDA Agreement referenced in Section 20.1 above.

 

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

 

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

 

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24.6         Payments.
Landlord and Tenant each acknowledges and agrees that the rent and other amounts payable by Tenant under this Lease (including
Base Rent, Additional Rent and all other sums payable under this Lease) are sufficient to properly maintain the Premises, and to
enable Landlord to meet its debt service obligations and related expenses in connection with the Mortgage Loan and the Premises.
Subject to Section 24.1, and only to the extent required by HUD, Tenant agrees to pay when due, as Additional Rent, all premiums
for (i) liability insurance and full coverage property insurance on the Premises, and (ii) all other insurance coverage required
under the HUD Loan Documents and/or applicable HUD Program Requirements. Unless Lender and Landlord agree otherwise, Tenant shall
be responsible for funding all escrows for taxes, reserves for replacements, mortgage insurance premiums and/or other insurance
premiums as may be required by Lender and/or HUD.

 

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

 

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

 

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

 

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

 

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

 

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24.12         Inspections.
Tenant agrees that upon reasonable request, Lender, HUD and their respective designees and representatives may at all reasonable
times, upon at least twenty-four (24) hours’ written notice and at the sole expense of Landlord, subject to the rights of
patients, residents and tenants, examine and inspect the Premises. Tenant shall, on the request of Lender and/or HUD, promptly
make available for inspection by Lender and/or HUD, and their designees and representatives, copies of all of Tenant’s correspondence,
books, records and other documentation relating to the Premises, excepting communications between Tenant and its attorneys. Tenant
agrees to maintain accounting records for the Facility in accordance with its customary practice and the Regulatory Agreement of
Tenant, separate from any general accounting records which Tenant may maintain in connection with the Tenant’s other activities.
Tenant agrees that Lender and/or HUD, and their designees and representatives, shall at any reasonable time, have access to and
the right to examine all accounting records of Tenant which relate directly or indirectly to the Premises. The obligations of Tenant
under this Section shall be limited to the extent necessary in order for Tenant to comply with applicable laws regarding the confidentiality
of resident/patient medical records and information.

 

24.13         Insurance;
Casualty; Condemnation. Tenant agrees to procure and maintain, or cause to be procured and maintained, the insurance coverage
required pursuant to the HUD Loan Documents and/or applicable HUD Requirements, including HUD Notices H 04-01 and H 04-15. Insurance
proceeds and the proceeds of any condemnation award or other compensation paid by reason of a conveyance in lieu of the exercise
of such power, with respect to the Premises, or any portion thereof, shall be applied in accordance with the terms of the HUD Loan
Documents and applicable HUD Program Requirements. The decision to repair, reconstruct, restore or replace the Premises following
a casualty or condemnation shall be subject to the terms of the HUD Loan Documents and applicable HUD Requirements.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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27.         Notices.
Whenever, pursuant to this Lease, notice or demand shall or may be given to either of the parties (including Lender) by the other,
and whenever either of the parties shall desire to give to the other any notice or demand with respect to this Lease or the Premises,
each such notice or demand shall be in writing, and any Laws to the contrary notwithstanding, shall not be effective for any purpose
unless the same shall be given or served as follows: by mailing the same to the other party by registered or certified mail, return
receipt requested, or by delivery by nationally recognized overnight courier service provided a receipt is required, at its Notice
Address set forth in Section 1 hereof, or at such other address as either party (including, without limitation, Lender) may
from time to time designate by notice given to the other. The date of receipt of the notice or demand shall be deemed the date
of the service thereof (unless delivery of the notice or demand is refused or rejected, in which case the date of such refusal
or rejection shall be deemed the date of service thereof).

 

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

 

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

 

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

 

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30.         Taxes.

 

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

 

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

 

31.         Insurance.

 

31.1         Tenant
shall maintain All-Risk insurance for the Facility for one hundred percent (100%) of its replacement value. Said All-Risk policy
shall include flood coverage if the Premises is located in a Flood Zone A, and if required by Lender, earthquake coverage.

 

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31.2         Tenant
also shall maintain commercial general liability coverage with respect to the Project and the business conducted by Tenant, on
an occurrence basis, with limits of at least One Million and No/100 Dollars ($1,000,000.00) per occurrence, and Three Million and
No/100 Dollars ($3,000,000) general aggregate limit.

 

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

 

31.4         Tenant
shall also maintain an additional Four Million and No/100 Dollars ($4,000,000) of excess coverage for issues arising under the
insurance required in Section 31.2 and 31.3 above.

 

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

 

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

 

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

 

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

 

31.9         Tenant
may carry such All-Risk and/or general liability insurance through blanket insurance covering the Premises and other locations
of Tenant and/or of Tenant’s affiliates, provided that such blanket insurance policy specifically designates the Premises
and shall not be reduced by claims as to other property covered by such blanket policy below the amounts Tenant is required to
carry pursuant to this Section 31; and Tenant may maintain the required limits in the form of excess and/or umbrella policies,
provided that the other requirements set forth herein have been satisfied.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

38.         Hazardous
Materials.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

38.8         The
indemnity obligations of the Tenant and the rights and remedies of the Landlord under this Section 38 shall survive the expiration
or termination of this Lease.

 

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

 

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

 

41.         Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

42.         Tenant’s
Purchase Option.

 

42.1       Purchase
Option. Provided that Tenant is not in default beyond any applicable cure period at the time of exercise, during the period
from and after the second (2nd) anniversary of the Date of Rent Commencement through the date that is the earlier of (a) thirty
(30) days prior to the expiration of the initial ten (10) year Term, or (b) the date on which this Lease is terminated by Landlord
because an Event of Default by Tenant occurs, Tenant shall have the option (the “Purchase Option”) to Purchase
the entire Facility and the Premises (the “Project”) from Landlord. The purchase price (the “Purchase
Price”) for the Project shall be determined based upon when the closing on the Project occurs as follows: (x) if
the closing occurs prior to the expiration of the fiftieth (50th) month of the Term, the Purchase Price shall be Ten Million Eight
Hundred Thousand and No/100 Dollars ($10,800,000.00), (y) if the closing occurs after the expiration of the fiftieth (50th)
month of the Term and prior to the expiration of the fifty-ninth (59th) month of the Term, the Purchase Price shall be Eleven Million
and No/100 Dollars ($11,000,000.00), and (z) if the closing occurs after the expiration of the fifty-ninth (59th) month of the
Term, the Purchase Price shall be Eleven Million Two Hundred Fifty Thousand and No/100 Dollars ($11,250,000.00). The Purchase Price
shall be payable in full at closing with funds immediately available to Landlord.

 

    	Page 47 – LEASE

    	 

    

 

42.2       Tenant
shall exercise the Purchase Option by tendering written notice (the “Option Notice”) and the Option Deposit
(as herein defined) to Landlord at any time on or before one hundred twenty (120) days prior to the expiration of the initial ten
(10) year Term the “Option Trigger Date”), and the sale of the Project shall be consummated pursuant to the
terms hereof on a date (the “Closing Date”) within one hundred (100) days after the date of receipt by Landlord
of the Option Notice, such date to be mutually agreed upon by Landlord or Tenant. In the event Tenant fails to deliver the Option
Notice or the Option Deposit to Landlord on or before the Option Trigger Date or fails to close on its acquisition of the Project
on or before the one hundredth (100th) day following the date of receipt by Landlord of the Option Notice, the Tenant shall be
deemed to have waived its right to purchase the Facility and Premises pursuant to the Option Notice and the Option Deposit shall
be retained by Landlord as liquidated damages for Tenant’s failure to consummate the purchase of the Project and shall be
non-refundable, but Tenant shall retain the Purchase Option and the ability to tender a subsequent Option Notice and an additional
Option Deposit pursuant to the terms of this Section 42.2; provided that Tenant shall receive no credit against the Purchase
Price for the previous Option Deposit retained by Seller as liquidated damages.

 

42.3       At
the time the Purchase Option is exercised, Tenant shall deliver to Landlord, in cash or by certified check, a good faith deposit
in the amount of One Hundred Thousand Dollars ($100,000.00) (the “Option Deposit”), which Option Deposit shall
be credited against the Purchase Price payable at closing. In the event the purchase of the Project is not consummated in accordance
with the terms hereof for any reason or no reason whatsoever other than Landlord’s failure to perform its obligations hereunder,
the Option Deposit shall be retained by Landlord as liquidated damages for Tenant’s failure to consummate the purchase of
the Project and shall be nonrefundable. In the event Tenant forfeits all rights to the Option Deposit due to a failure to consummate
the purchase, Tenant shall retain the Purchase Option. Any subsequent exercise of the Purchase Option by Tenant shall require an
additional Option Deposit and Tenant shall receive no credit against the Purchase Price for the previous Option Deposit retained
by Seller as liquidated damages.

 

42.4       In
the event Tenant exercises the Purchase Option in accordance with the terms and provisions of this Section 42, and at the time
Tenant exercises the Purchase Option the Project is encumbered by the HUD Loan, and the HUD Loan does not allow for prepayment
by Landlord, then Tenant shall assume the HUD Loan at closing. Tenant shall be responsible for obtaining all necessary approvals
and/or consents (including, but not limited to, the approval of the HUD Lender) and paying any assignment and/or transfer fees
with respect to the assignment and assumption of the HUD Loan by Landlord to Tenant. If Tenant assumes the HUD Loan, Tenant shall
receive a credit against the Purchase Price at closing in the amount of the outstanding balance of principal and interest under
the HUD Loan as of the Closing Date. Landlord shall, at no cost to Landlord, use commercially reasonable efforts to cooperate with
Tenant with respect to the assignment and assumption of the HUD Loan. If Tenant cannot obtain all necessary approvals to assume
the HUD Loan within one hundred eighty (180) days, then Tenant’s exercise of the Purchase Option shall be deemed revoked
and Tenant shall not have the right to exercise the Purchase Option until the HUD Loan has been paid off in full or Tenant is able
to obtain all necessary approvals to assume the HUD Loan.

 

42.5       If
at the time Tenant exercises the Purchase Option the Project is encumbered by the HUD Loan which Tenant is not going to assume
pursuant to Section 42.4 above, and the HUD Loan requires Landlord to pay a prepayment fee in order to pay off the HUD Loan before
its maturity date, then Tenant shall be responsible for paying the prepayment fee at closing.

 

    	Page 48 – LEASE

    	 

    

 

If at the time Tenant
exercises the Purchase Option, the Project is encumbered by a mortgage securing a loan other than a HUD Loan (a “Loan”),
Tenant’s exercise of the Purchase Option shall be deemed revoked if, following the request of Landlord, the holder of such
Loan refuses to release the Project from the lien of such mortgage due to the existence of an event of default or a potential default
under documents evidencing such Loan (or if an event of default would occur as a result of the release of the Project); provided,
if such event of default or potential default under the Loan can be cured by Landlord paying down the Loan with the proceeds from
the sale of the Project to Tenant pursuant to the Purchase Option and an Event of Default does not exist under this Lease, then
Landlord shall be required to pay down the Loan with the proceeds received from Tenant in exercising the Purchase Option. 
This Section 42.5 shall not prevent Tenant from later re-exercising the Purchase Option in accordance with this Section.

 

Any unused Capital
Reserve Deposits held by either the Lender or the Landlord as described in Section 10.7 shall become the property of, and be credited
to, the Tenant at closing.

 

42.6        At
the time of closing:

 

(a)          Landlord
shall cause to be executed and delivered to Tenant a full warranty deed conveying the Premises to Tenant subject to all encumbrances
created by Tenant and all Permitted Encumbrances, except Landlord shall be required to remove any Mortgage and any other monetary
lien or other encumbrance created by Landlord against the Premises, except to the extent approved by Tenant;

 

(b)          Tenant
shall deliver to Landlord the Purchase Price, in immediately available funds;

 

(c)          Landlord
and Tenant shall deliver to the other such other documents or instruments as shall reasonably be required by such party’s
counsel to consummate the transaction contemplated herein; and

 

(d)          Tenant
shall pay all closing costs relating to the transfer of the Premises to Tenant, including, but not limited to, title insurance
premiums, recording fees, transfer taxes and escrow fees; provided Landlord shall be responsible for all of its own legal fees
in connection with the closing.

 

42.7        Tenant
can only assign the Purchase Option to a related entity with the consent of Landlord, and such consent shall not be unreasonably
withheld. Tenant can only assign the Purchase Option to a non-related entity with the consent of Landlord, and such consent shall
be in Landlord’s sole and absolute discretion. Also, Tenant and Landlord will treat the terms of the Purchase Option as confidential
and will not disclose the terms of the Purchase Option or any information relating to it to any person other than their advisors,
Lenders or prospective buyer(s) of the Facilities.

 

    	Page 49 – LEASE

    	 

    

 

42.8        On
the Date of Rent Commencement, Landlord will execute, acknowledge and deliver to Tenant for recording a Memorandum in the form
attached as Exhibit D. If Tenant fails to exercise the Purchase Option before it expires, Tenant will execute, acknowledge and
deliver to Landlord a quitclaim deed releasing any interest in the Property.

 

42.9        Landlord
and Tenant agree to act in good faith and with fair dealing with one another in the execution, performance, and implementation
of the Purchase Option. Whenever the consent, approval, or other action of a party is required under any provisions of the Purchase
Option, the consent, approval, or other action will not be unreasonably withheld, delayed, or conditioned by a party.

 

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

 

	LANDLORD:	 	TENANT:
	 	 	 
	CHP Medford 1, LLC,	 	RSL Medford, LLC,
	a Delaware limited liability company	 	an Oregon limited liability company
	 	 	 
	By:	/s/ Kent Eikanas	 	By:	/s/ James T. Guffee
	Name:	Kent Eikanas	 	 	Radiant Companies, Inc., Manager
	Its:	COO	 	 	By:  James T. Guffee, Its President

 

    	Page 50 – LEASE

    	 

    

 

SCHEDULE 1

 

BASE RENT SCHEDULE

 

SCHEDULE 1 

    	 

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION OF THE PREMISES

 

EXHIBIT A

    	 

    	 

    

 

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

Those matters referred to in ____________________________________,
_________________, dated __________, 20___.

 

EXHIBIT B 

    	 

    	 

    

 

EXHIBIT C

 

APPROVED MANAGEMENT AGREEMENT

 

[ATTACHED HERETO]

 

EXHIBIT C 

    	 

    	 

    

 

EXHIBIT D

 

MEMORANDUM OF OPTION AGREEMENT

 

____________________ a _________________
(“Owner”) and ________________________, a _____________________________ (“Optionee”), have
entered into an Option Agreement and Agreement of Purchase and Sale dated _______________, 20___ (the “Option Agreement”),
wherein Owner has granted to Optionee the sole and exclusive option to purchase the property described in Exhibit A. The term
if the option will expire on ________________, 20___.

 

This Memorandum is being executed and recorded
in the Official Records of ______________ County, Oregon, to give notice of the provisions of the Option Agreement and will not
be deemed or construed to define, limit or modify the Option Agreement in any manner.

 

EXECUTED as of ____________________, 20___.

 

	OWNER:	 	OPTIONEE:	 
	 	 	 	 
	 	,	 	,
	a	 	 	a	 	 
	 	 	 	 

	By:	 	 	By:	 
	Name:	 	 	Name:	
	Its:	 	 	Its:	

 

(Notarial Acknowledgments on Following
Page)

 

EXHIBIT D 

    	 

    	 

    

 

	STATE OF OREGON	)
	 	) ss.
	County of ____________	)

 

This instrument was acknowledged before
me on _______________, 20___, by ________________________, as __________________ of ______________________, a __________________________,
on behalf of said __________________________.

 

	 	
        ____________________________________,

        Notary Public for Oregon

        My commission expires:________________ 

 

	STATE OF OREGON	)
	 	) ss.
	County of ____________	)

 

This instrument was acknowledged before
me on _______________, 20___, by ________________________, as __________________ of ______________________, a __________________________,
on behalf of said __________________________.

 

	 	
        ____________________________________,

        Notary Public for Oregon

        My commission expires:________________

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