Document:

Document

EXHIBIT 10.1

LEASE

225 Wyman Street
Waltham, Massachusetts

BETWEEN

275 WYMAN LLC, a Delaware limited liability company, as Landlord

AND

PEGASYSTEMS INC., a Massachusetts corporation, as Tenant

CERTAIN INFORMATION HAS BEEN OMITTED FROM THIS DOCUMENT BECAUSE IT IS (I) NOT MATERIAL, (II) IS TREATED AS CONFIDENTIAL INFORMATION BY PEGASYSTEMS INC., AND (III) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. OMISSIONS ARE MARKED [***].

TABLE OF CONTENTS

						
		Page
	ARTICLE I REFERENCE DATA
	1

	1.1    SUBJECTS REFERRED TO
	1

	1.2    EXHIBITS
	5

	ARTICLE II PREMISES; TERM; RENT
	6

	2.1    PREMISES AND EXCLUSIONS
	6

	2.2    APPURTENANT RIGHTS
	8

	2.3    RESERVATIONS
	12

	2.4    TERM
	13

	2.5    ANNUAL FIXED RENT
	15

	2.6    ADDITIONAL RENT - OPERATING EXPENSES AND TAXES
	16

	2.7    ELECTRICITY
	23

	ARTICLE III CONSTRUCTION
	24

	3.1    LANDLORD WORK
	24

	3.2    INTENTIONALLY OMITTED
	25

	3.3    TENANT’S INITIAL CONSTRUCTION
	25

	3.4    OTHER CONSTRUCTION
	25

	ARTICLE IV LANDLORD’S COVENANTS
	25

	4.1    LANDLORD’S COVENANTS
	25

	4.2    INTERRUPTION
	27

	4.3    INSURANCE
	28

	4.4    HAZARDOUS SUBSTANCES
	28

	ARTICLE V TENANT’S ADDITIONAL COVENANTS
	29

	5.1    MAINTENANCE AND REPAIR
	29

	5.2    USE, WASTE AND NUISANCE
	29

	5.3    COMPLIANCE WITH LAW
	31

	5.4    RULES AND REGULATIONS
	32

	5.5    INDEMNIFICATION AND INSURANCE
	32

	5.6    TENANT’S PROPERTY
	35

	5.7    ENTRY FOR REPAIRS AND INSPECTIONS
	35

	5.8    ASSIGNMENT, SUBLETTING
	36

	5.9    ALTERATIONS
	38

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TABLE OF CONTENTS
(continued)

						
		Page
	5.10    SURRENDER
	40

	5.11    PERSONAL PROPERTY TAXES
	40

	5.12    SIGNS
	41

	ARTICLE VI CASUALTY AND TAKING
	41

	6.1    DAMAGE BY FIRE OR CASUALTY
	41

	6.2    CONDEMNATION - EMINENT DOMAIN
	43

	6.3    EMINENT DOMAIN AWARD
	44

	ARTICLE VII DEFAULT
	44

	7.1    TERMINATION FOR DEFAULT OR INSOLVENCY
	44

	7.2    REIMBURSEMENT OF LANDLORD’S EXPENSES
	45

	7.3    DAMAGES
	45

	7.4    MITIGATION
	46

	7.5    CLAIMS IN BANKRUPTCY
	46

	7.6    INTEREST ON UNPAID AMOUNTS
	47

	7.7    LATE FEE
	47

	7.8    INTENTIONALLY OMITTED
	47

	7.9    EXPENSES AND ATTORNEYS’ FEES
	47

	7.10  WAIVER OF TRIAL BY JURY
	47

	ARTICLE VIII MISCELLANEOUS
	48

	8.1    HOLDOVER
	48

	8.2    ESTOPPEL CERTIFICATES
	48

	8.3    NOTICE
	49

	8.4    LANDLORD’S RIGHT TO CURE
	49

	8.5    SUCCESSORS AND ASSIGNS
	49

	8.6    BROKERAGE
	50

	8.7    WAIVER
	50

	8.8    ACCORD AND SATISFACTION
	50

	8.9    REMEDIES CUMULATIVE
	50

	8.10    PARTIAL INVALIDITY
	51

	8.11    WAIVERS OF SUBROGATION
	51

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TABLE OF CONTENTS
(continued)

						
		Page
	8.12    ENTIRE AGREEMENT
	51

	8.13    NO AGREEMENT UNTIL SIGNED
	51

	8.14    INTENTIONALLY OMITTED
	51

	8.15    NOTICE OF LEASE
	52

	8.16    TENANT AND LANDLORD AS BUSINESS ENTITY
	52

	8.17    SECURITY DEPOSIT
	52

	8.18    FINANCIAL STATEMENTS
	55

	8.19    LANDLORD DEFAULT AND TENANT’S REMEDIES
	55

	8.20    MISCELLANEOUS PROVISIONS
	56

	8.21    TENANT COMPETITORS
	58

	ARTICLE IX LANDLORD’S LIABILITY AND ASSIGNMENT FOR FINANCING
	58

	9.1    LANDLORD’S LIABILITY
	58

	9.2    ASSIGNMENT OF RENTS
	59

	ARTICLE X SUBORDINATION AND NON-DISTURBANCE
	60

	ARTICLE XI ROOF SPACE
	61

	11.1    ANTENNA
	61

	ARTICLE XII STORAGE SPACE
	63

	12.1    STORAGE SPACE
	63

	ARTICLE XIII TENANT’S WIRELESS NETWORK
	64

	13.1    WIRELESS NETWORK
	64

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225 Wyman Street,
Waltham, Massachusetts
LEASE dated July 6, 2021
ARTICLE 1
REFERENCE DATA

1.1SUBJECTS REFERRED TO
Each reference in this Lease to any of the following subjects shall be construed to incorporate the data stated for that subject in this Article I.
												
	LANDLORD:	275 Wyman LLC, a Delaware limited liability company
	LANDLORD’S ADDRESS:	404 Wyman Street
Waltham, Massachusetts 02451-1209
Attention:  Director of Asset Management
	LANDLORD’S PROPERTY MANAGER:	Hobbs Brook Real Estate LLC
404 Wyman Street
Waltham, Massachusetts 02451-1209
Attention:  Property Manager
	TENANT:	Pegasystems Inc., a Massachusetts corporation

	TENANT’S ORIGINAL ADDRESS:	One Rogers Street
Cambridge, Massachusetts 02142
	PREMISES ADDRESS:	225 Wyman Street
Waltham, Massachusetts 02451
	TERM:	The period beginning on the Term Commencement Date and ending on the Term Expiration Date.

	ESTIMATED TERM COMMENCEMENT DATE:	August 1, 2021
	ESTIMATED SUBSTANTIAL COMPLETION DATE:	March 1, 2022
	TERM COMMENCEMENT DATE:	As defined in Section 2.4.

	RENT COMMENCEMENT DATE:	The date that is twelve (12) months after the Term Commencement Date; provided, however, the Rent Commencement Date shall be extended by the number of days, if any, that Tenant’s Initial Construction is actually delayed by any Landlord Delay, as such term is set forth in Exhibit B.

												
	TERM EXPIRATION DATE:	The last day of the 10th Lease Year, subject to extension as set forth in Section 2.4.1

	LEASE YEAR:	Each Lease Year shall consist of twelve (12) calendar months beginning with the Rent Commencement Date, except that if the Rent Commencement Date is not the first day of a calendar month, then Lease Year 1 shall include the partial month at the beginning of the Term in addition to the following twelve (12) calendar months, and the Annual Rent for Lease Year 1 shall be proportionately increased.
	ANNUAL FIXED RENT:	
	Lease Year	Annual Fixed Rent	Monthly Fixed Rent	Rent Per Square Foot of Premises Rentable
Floor Area

	1	$6,018,410.00	$501,534.17	$46.00
	2	$6,198,962.30	$516,580.19	$47.38
	3	$6,384,748.00	$532,062.33	$48.80
	4	$6,577,075.45	$548,089.62	$50.27
	5	$6,773,327.95	$564,444.00	$51.77
	6	$6,977,430.55	$581,452.55	$53.33
	7	$7,186,766.55	$598,897.21	$54.93
	8	$7,401,335.95	$616,778.00	$56.57
	9	$7,623,755.45	$635,312.95	$58.27
	10	$7,852,716.70	$654,393.06	$60.02
				

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	IMPROVEMENT ALLOWANCE:	$90.00 per square foot of Rentable Floor Area of the Premises ($11,775,150.00).
	LAND:	The land located in Waltham, Massachusetts upon which the Building is situated including parking areas, garages, drives, walks, landscaped areas, common areas serving the Building, and other improvements thereon.
	PROJECT:	The Land, including the Building, and all other land and buildings owned by Landlord or its affiliates from time to time in the Hobbs Brook Office Park, including without limitation the buildings known as 81, 175, 185, 255, 275, 303, 333, and 404 Wyman Street, 590 and 610 Lincoln Street, and 245-265 and 343 Winter Street.
	BUILDING:	The multi-story, mixed-use building on the Land known and numbered as 225 Wyman Street, Waltham, Massachusetts 02451, and, to the extent permitted by this Lease, as the same may be altered, expanded, reduced, or otherwise changed by Landlord from time to time.
	RENTABLE FLOOR AREA OF BUILDING:	Conclusively agreed to be 506,271 square feet. 

	PREMISES:
	The space delineated on Exhibit A.

	RENTABLE FLOOR AREA OF PREMISES:	Conclusively agreed to be 130,835 rentable square feet. 

	TENANT’S EXPENSE SHARE:
	As defined in Section 2.6.1.

	OFFICE AREA:	The portions of the Building leased or available for lease from time to time for general office use, as the same may be altered, expanded, reduced or otherwise changed by Landlord from time to time (with no resulting increase in the amount of Annual Fixed Rent or change in the manner in which Tenant’s Expense Share is calculated).  The Office Area shall not include any areas which are to be leased for laboratory purposes (which shall include the Laboratory Area).
	LABORATORY AREA:	The portions of the Building leased or available for lease from time to time for research and development and laboratory use, as the same may be altered, expanded, reduced or otherwise changed by Landlord from time to time.  The Laboratory Area shall not include any areas which are to be leased for general office (which shall include the Office Area).

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	PERMITTED USES:	The Premises are to be used by Tenant solely for general office use and accessory and ancillary uses customarily incidental to Tenant’s business, all as may be permitted under applicable laws, including but not limited to, any regulations promulgated by any governmental authority.
	SECURITY DEPOSIT:	$2,301,568.00, subject to reduction as set forth in Section 8.17.
	DESIGN FEE REIMBURSEMENT:	$75,000.00.
	PARKING FACILITIES:	A six (6) story parking garage adjacent to the Building, which includes approximately 1,495 parking spaces with 86 spaces set aside for Low-Emitting & Fuel-Efficient (LEFE) vehicles, which LEFE spaces will be set aside exclusively for qualified patrons, which shall include Tenant and Tenant’s employees, contractors and business invitees.  The parking garage will also include at least 10 electric vehicle charging stations, and secured space for 50 bicycles and will connect to the Building via a covered walkway to the Building entrance.
	PARKING SPACES:	Tenant shall be entitled to the use of four hundred fifty-eight (458) spaces (calculated at a rate of 3.5 spaces per 1,000 rentable square feet in the Premises), as set forth in Section 2.2.2.
	COMMERCIAL GENERAL LIABILITY INSURANCE:	$5,000,000 per occurrence/general aggregate/
$5,000,000 products completed operations aggregate
	BROKER:	Jones Lang LaSalle and T3 Advisors

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1.2     EXHIBITS
The following is a list of Exhibits attached to this Lease.
						
	Exhibit A:	Plan of Premises

	Exhibit A-1:	Plan of First Offer Space

	Exhibit A-2:	Plan of Exterior Sign Location

	Exhibit A-3	Emergency Generator Location

	Exhibit A-4	Location of Reserved Parking

	Exhibit B:	Work Letter

	Exhibit B-1:	Landlord/Tenant Matrix

	Exhibit B-2:	Landlord’s Delivery Condition Requirements

	Exhibit B-3	Base Building Plans and Specifications

	Exhibit B-4	Landlord’s Construction Schedule

	Exhibit C:	Landlord’s Cleaning Specifications

	Exhibit D:	Confirmation of Lease Commencement

	Exhibit E:	Rules and Regulations

	Exhibit F:	Plan of Storage Space

	Exhibit G:	List of Competitors

	Exhibit H:	Form of Estoppel

	Exhibit I:	Construction Handbook and Construction Rules and Regulations

	Exhibit J:	Notice of Lease

	Exhibit K:	Letter of Credit

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ARTICLE II
PREMISES; TERM; RENT

2.1     PREMISES AND EXCLUSIONS
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises for the Term and subject to Section 2.4.1, any Extension Term.  The Premises exclude parking areas, roof, common areas and facilities of the Building, including without limitation exterior faces of exterior walls, the common stairways and stairwells, entranceways and any lobby and courtyard areas, elevators and elevator wells, fan rooms, electric and telephone closets, janitor closets, freight elevator vestibules, and pipes, ducts, conduits, wires and appurtenant fixtures serving other parts of the Building (exclusively or in common) and other common areas and facilities.  If the Premises include less than the entire rentable area of any floor, then the Premises also exclude the common corridors, elevator lobby and common toilets located on such floor.  The Rentable Floor Area of the Premises and the Rentable Floor Area of the Building, and the measurements upon which Tenant’s Expense Share have been calculated, have been determined in accordance with a modified version of the Standard Method of Measuring Floor Area in Office Buildings as adopted by the Building Owners and Managers Association International (ANSI/BOMA Z65.1-2017), which the parties acknowledge is modified to account for the bathrooms on full floor(s) of the Premises being included in the Rentable Floor Area calculation of the Premises.
This Lease is subject to all easements, restrictions, agreements, and encumbrances of record to the extent in force and applicable.  Landlord represents that such title matters shall not affect any of Tenant’s rights under this Lease in any material and adverse respect.
2.1.1    RIGHT OF FIRST OFFER.  Following the initial lease-up of the Building by Landlord, then, prior to leasing certain premises which is contiguous to the Premises in the south wing of the Building, as shown on Exhibit A-1, the “Plan of First Offer Space”, to any third party who is not the initial tenant of such First Offer Space, Landlord shall offer in writing to lease such space (the “Offered Space”) to Tenant on then current fair market terms and conditions (including concessions) as Landlord is then offering to third parties as set forth in Landlord’s notice (“Landlord’s ROFO Notice”), provided that (x) Tenant has not assigned or sublet more than thirty percent (30%) of the Premises (except pursuant to a Permitted Transfer), (y) the term will be coterminous with this Lease and any tenant improvement allowance or the like shall be ratably adjusted for any difference in the remaining Term of this Lease and the term offered to third parties, and (z) if there are less than three (3) Lease Years left in the Term at the time Tenant leases the Offered Space, then Tenant may exercise its right to lease the Offered Space only if Tenant has remaining, and exercises, an extension option under Section 2.4.1 for the Premises so that the Offered Space shall be leased by Tenant for more than a three (3) year term.  Any tenant or occupant of the Offered Space from time to time, or any affiliate thereof, shall not be considered a “third-party” for purposes of this Section 2.1.1, and Landlord shall be free to lease the Offered Space to the foregoing without offering the same to Tenant.  
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Landlord’s ROFO Notice under this Section 2.1.1 may be accepted by Tenant by written notice given within fifteen (15) Business Days of delivery of Landlord’s ROFO Notice, failing which, such offer shall be deemed conclusively waived by Tenant, and Landlord shall have no further obligation to offer the Offered Space to Tenant nor shall Tenant have any further right to lease the same under this Section 2.1.1.  In the event that Tenant accepts any offer by Landlord under this section, the leasing of such Offered Space shall be documented by an amendment to this Lease.  Tenant’s rights under this Section 2.1.1 shall be rendered void, at Landlord’s election, if Tenant is in default (subject to any applicable notice and cure periods) at the time Landlord offers any space to a third party or at the time Tenant’s lease of any Offered Space under this Section 2.1.1, would otherwise commence.  If Landlord does not enter into a lease of such space within nine (9) months after the date of Landlord’s ROFO Notice to Tenant or if the lease which Landlord intends to enter into contains terms which are materially different or contains a rental rate which is less than ninety percent (90%) of the rental rate which is offered to Tenant, such space shall be deemed available space and Landlord shall have to present such space again to Tenant, and Landlord shall thereafter give the Landlord’s ROFO Notice to Tenant required by this Section.
If Tenant exercises its rights under this Section 2.1.1, Landlord shall use diligent good faith to deliver the Offered Space to Tenant as set forth in Landlord’s ROFO Notice.  Landlord’s failure to deliver, or delay in delivering, all or any part of the Offered Space by reason of Force Majeure, as such term is defined in Section 4.2, and including continued occupancy of any such Offered Space by any occupant thereof shall not give rise to any liability of Landlord, shall not alter Tenant’s obligation to accept such Offered Space when delivered, shall not constitute a default of Landlord, and shall not affect the validity of the Lease; provided that if delivery of the Offered Space does not occur within ninety (90) days after the delivery date set forth in Landlord’s ROFO Notice, Tenant may elect to withdraw its exercise of its rights under this Section 2.1.1 by notice given within ten (10) Business Days after the expiration of such ninety (90) day period.  If Tenant so notifies Landlord, Tenant’s Right of First Offer under this Section 2.1.1 shall not apply to the next lease of the Offered Space in question (but shall apply to subsequent leases thereafter).
This Section 2.1.1 shall not be construed to grant to Tenant any rights or interest in any space in the Building and any claims by Tenant alleging a failure of Landlord to comply herewith shall be limited to claims for monetary damages and Tenant may not assert any rights in any space nor file any lis pendens or similar notice with respect thereto.
Tenant’s rights under this Section 2.1.1 are personal to Tenant and shall not apply to any Transferee of Tenant (other than a Transferee under a Permitted Transfer).  If at any time during the Term Tenant has transferred more than thirty percent (30%) of the Premises (not including Permitted Transfers), then Tenant’s rights under this Section 2.1.1 shall be null and void and of no further force or effect.
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2.2 APPURTENANT RIGHTS
2.2.1    COMMON FACILITIES.  Tenant shall have, as appurtenant to the Premises, the non-exclusive right to use the following in common with all others entitled thereto (subject to reasonable rules of general applicability to tenants and other users from time to time made by Landlord of which Tenant is given written notice):  (a) the common lobbies, corridors, stairways, elevators and loading platform, and the pipes, ducts, conduits, wires and appurtenant meters and equipment serving the Premises in common with others; (b) common driveways and walkways necessary for access to the Building; (c) if the Premises include less than the entire rentable floor area of any floor, the common toilets, corridors and elevator lobby on such floor and serving the Premises; (d) the roof of the Building for telecommunications antennae; (e) the Parking Facilities; (f) facilities serving the Building from time to time intended for general use by Tenant, other Building tenants (if any), and visitors, subject to reasonable rules from time to time made by Landlord of which Tenant is given notice; (g) loading dock; and (h) any other facilities generally available to tenants in the Project, subject to reasonable rules from time to time in effect of which Tenant is given notice.  Landlord shall maintain the common areas and facilities in good order and condition, including all landscaping, walkways, parking areas and other outdoor facilities (including, without limitation, outdoor lighting), consistent with other first-class mixed-use buildings in the greater Boston “Metro-West” area, and in compliance with all Legal Requirements.  Such maintenance shall include snow removal in the outside areas of the Project providing access to the Project, the Building and/or the Parking Facilities for Tenant, including the walkways and parking areas.  All of the rights set forth in this Section 2.2 shall be subject to reasonable rules from time to time made by Landlord of which Tenant is given written notice.  Nothing contained in the Lease shall prohibit or otherwise restrict Landlord from changing, from time to time, without notice to Tenant, the location, layout or type of the forgoing common areas and facilities, provided that no such change shall materially and adversely affect Tenant’s appurtenant rights set forth in this Section 2.2 and Landlord shall not substantially reduce the number of parking spaces available for use of tenants of the Building, nor relocate such parking spaces except on a temporary basis or as a result of a Force Majeure event.  In the event the parking shall be relocated pursuant to the preceding sentence, such parking may be relocated only within the Project and must be within reasonable walking distance to the Building.  In no event shall Landlord ever reduce the parking ratio set forth in Section 2.2.2 below.  Except as set forth in this Lease, including Article XI hereof, Tenant shall have no right of access or to use any portion of the roof of the Building.
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2.2.2    PARKING. During the Term, Landlord shall, subject to the terms hereof, make available up to four hundred fifty-eight (458) unreserved (except as set forth in Section 2.2.2) parking spaces (calculated at a rate of 3.5 spaces per 1,000 rentable square feet in the Premises) in the Parking Facilities serving the Building (the “Parking Spaces”) at no additional cost to Tenant.  All Parking Spaces shall be covered except those located on the roof.  Landlord and Tenant shall at all times comply with all applicable laws, ordinances, rules, regulations, statutes, by-laws, court decisions and orders and requirements of all public authorities respecting the use of the Parking Facilities.  Landlord reserves the right to adopt, modify, and enforce reasonable written rules and regulations governing the use of the Parking Facilities from time to time, including designation of assigned parking spaces, requiring use of any key-card, sticker, or other identification or entrance systems and charging a fee for replacement of any such key card, sticker or other item used in connection with any such system.  Subject to reasonable procedures for the security or safety of the Building and Parking Facilities and Force Majeure events, the Parking Spaces shall be available to Tenant 24 hours per day, 365/366 days per year.  Landlord may refuse to permit any person who violates such rules and regulations to park in the Parking Facilities, and any violation of the rules and regulations shall subject the car to removal from the Parking Facilities.  Unless specified to the contrary, the Parking Spaces provided hereunder shall be provided on an unreserved, “first-come, first served” basis; provided, however, Tenant shall be entitled to designate up to two (2) of Tenant’s Parking Spaces in the location identified on Exhibit A-4 as reserved for Tenant which Landlord represents is Tenant’s pro rata share of assigned or reserved parking spaces (based upon the rentable floor area of the premises demised to such other tenants and the Rentable Floor Area of the Premises and the number of parking spaces designated for assignment to the other tenants).  Tenant acknowledges that Landlord may arrange for the Parking Facilities to be operated by an independent contractor, not affiliated with Landlord.  Landlord shall have the right, in its sole discretion, to establish preferred parking spaces reserved for car/van pool vehicles or for low emitting and fuel efficient vehicles, to reserve parking spaces for any electric vehicle charging station and to restrict the use of such spaces, and to pass through charges for the use of such electric vehicle spaces, and impose reasonable rules and regulations with regard to the same.  Landlord shall have the right, in its sole discretion, to convert parking spaces into storage bicycle storage areas.  All motor vehicles (including all contents thereof) shall be parked in the Parking Facilities at the sole risk of Tenant and Tenant’s assignees, subtenants, agents, contractors, employees, licensees, guests and invitees, it being expressly agreed and understood Landlord has no duty to insure any of said motor vehicles (including the contents thereof), and Landlord is not responsible for the protection and security of such vehicles.  Landlord shall use commercially reasonable efforts to enforce Tenant’s parking rights against other tenants of the Building, and their respective employees, contractors and invitees.  NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE LEASE, EXCEPT FOR LANDLORD’S NEGLIGENCE, LANDLORD SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY PROPERTY DAMAGE OR LOSS WHICH MIGHT OCCUR ON THE PARKING FACILITIES OR AS A RESULT OF OR IN CONNECTION WITH THE PARKING OF MOTOR VEHICLES IN ANY OF THE PARKING SPACES.
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2.2.3    TENANT’S EMERGENCY GENERATOR.  Subject to Legal Requirements and Landlord’s prior written approval of plans and specifications therefor pursuant to Section 5.9 below, Tenant may install, operate and maintain, in the location shown on Exhibit A-3 attached or another location mutually agreed to by the parties (the “Emergency Generator Location”), an emergency generator and equipment related thereto (collectively, the “Emergency Back-up Equipment”) at Tenant’s sole cost and expense.  Landlord shall have no obligation to provide any services including, without limitation, electric current or gas service, to the Emergency Back-up Equipment, provided, however, subject to Legal Requirements and Landlord’s prior written approval of plans and specifications therefor, Tenant may also install, maintain and operate necessary utility connections between the Emergency Back-up Equipment and the Premises (which utility connections shall be deemed part of the Emergency Back-up Equipment).  Landlord may, in its sole and absolute discretion, require Tenant, at Landlord’s cost, to relocate any or all of the Emergency Back-up Equipment to a location with comparable functionality, which relocation shall be performed by Tenant (or Landlord, at Tenant’s request) within a reasonable period following such request (taking into account any reasonable time necessary to obtain permits and approvals for such work, Tenant hereby agreeing to use commercially reasonable good faith efforts to obtain the same and to promptly commence and prosecute to completion such relocation thereafter).  Landlord agrees to require such relocation no more than once during the Term (provided that such limitation shall not apply to temporary relocations required in connection with any required maintenance, repair or replacement of the Emergency Generator Location by Landlord).  Landlord’s approval of the Emergency Back-up Equipment shall not be unreasonably withheld, conditioned or delayed.  Tenant shall be responsible for the cost of repairing and maintaining the Emergency Back-up Equipment in good order, condition and repair and in compliance with Legal Requirements and for the cost of repairing any damage to the Building, or the cost of any necessary improvements to the Building, caused by or as a result of the installation, replacement and/or removal of the Emergency Back-up Equipment.  Landlord makes no warranties or representations to Tenant as to the suitability of the Emergency Generator Location for the installation and operation of the Emergency Back-up Equipment.  Tenant shall not install or operate the Emergency Back-up Equipment (or be obligated to relocate the emergency generator) until Tenant has obtained and submitted to Landlord copies of all required governmental permits, licenses, and authorizations necessary for the installation and operation thereof.  In addition, Tenant shall comply with all reasonable Rules and Regulations in connection with the installation, maintenance and operation of the Emergency Back-up Equipment.
2.2.4    AMENITIES.
(a)    Conference Center; Cafeteria.  
(i)    Subject to availability to tenants in the Building, and prior reservation in accordance with reasonable procedures implemented by Landlord and provided in writing to Tenant from time to time, commencing on or before the Substantial Completion Date, but subject to Force Majeure (the “Amenity Delivery Date”), Tenant shall have the right to use the conference center located in the Building (the “Conference Center”) in common with Landlord and others entitled thereto.  Landlord intends for the Conference Center to include a lecture 
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room, at least two (2) large conference rooms and a variety of meeting areas.  Tenant shall reimburse Landlord for any additional out of pocket costs incurred by Landlord for additional set up or clean up costs incurred by Landlord at Tenant’s request.  The use of such facilities shall be subject to such reasonable rules and requirements as Landlord may establish and provide in writing to Tenant, which reasonable rules and regulations shall be enforced in a non-discriminatory manner amongst all tenants in the Building, and to the extent of a conflict between such rules and regulations and this Lease, this Lease shall control.  Notwithstanding any other provision herein to the contrary, Landlord reserves the right, upon written notice to Tenant, to modify, reconfigure, alter, or redesign the Conference Center as Landlord shall reasonably deem appropriate; provided, however, Landlord shall continue to make a Conference Center of substantially similar quality and size as in existence as of the Amenity Delivery Date available at the Building during the Term, provided, however, such facility may be relocated to other space in the Building, as reasonably determined by Landlord with input from the tenants of the Building.
(ii)    Tenant and its employees, contractors, visitors and consultants shall have the right to use the cafeteria (the “Cafeteria”) located in the Building from and after the Amenity Delivery Date and thereafter during the Term, provided such parties shall be responsible for payment of all charges for meals and other items purchased at the Cafeteria.  The use of such facilities by Tenant and/or its employees, contractors, visitors and consultants shall be subject to compliance with the other provisions of this Section.  From and after the Amenity Delivery Date and thereafter during the Term, Landlord shall use commercially reasonable efforts to continue to operate the Cafeteria, provided, however, that Landlord (A) shall not be required to subsidize the Cafeteria in any manner, and (B) in its reasonable discretion, may change the size, configuration or location of the Cafeteria area within the Building; provided, however, Landlord shall continue to make a Cafeteria of substantially similar quality and size as in existence as of the Amenity Delivery Date available in the Building.  In the event that Landlord is unable to locate an operator that will operate the Cafeteria on terms, including, without limitation, economic terms reasonably acceptable to Landlord, Landlord shall have the right and option, in its reasonable business discretion, to take any steps necessary to reduce or eliminate such costs, including, without limitation, modification or reduction of the food service; provided, however, in the event of a reduction or modification of the food service, Landlord shall provide alternative food services, including, without limitation, delivery of food options from other cafeterias within the Project.
(b)    Bike Storage, and Fitness Center.  Beginning as of the Amenity Delivery Date and thereafter during the Term, Tenant and its employees shall have the right to use in common with others entitled thereto the bike storage located in the Parking Facilities and the fitness facility serving the Building (the “Fitness Center”).  Landlord shall have the right to require that users of the Fitness Center sign customary waivers of claims and comply with all safety and other procedures applicable to use of the Fitness Center.  Notwithstanding any other provision 
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herein to the contrary, Landlord reserves the right (i) to retain a third party operator to operate the Fitness Center, (ii) to lease the Fitness Center to a third party who agrees to operate a fitness facility which shall be available to tenants of the Project (including the Tenant) and their employees upon payment of standard charges, and/or (iii) to provide a Fitness Center which is unattended, and does not provide amenities such as towels, or otherwise use, the Fitness Center on substantially the same basis as set forth in this Lease.  Landlord shall use commercially reasonable efforts to continue to make a fitness facility of substantially similar quality as in existence as of the Amenity Delivery Date available at the Building during the Term, provided, however, such facility need not be attended nor provide amenities such as towels, and may be relocated to other space in the Building, as reasonably determined by Landlord with input from the tenants of the Building.  Landlord shall have the right and option, in its sole discretion, to terminate Tenant’s use of the Fitness Center upon thirty (30) days prior written notice to Tenant if the Fitness Center is temporarily closed due to (a) Force Majeure or (b) renovation.  Subject to Section 2.6.3, any reasonable amounts paid by Landlord on account of its operation of the bike storage and the Fitness Center (including, without limitation, Landlord’s costs of cleaning, maintaining, and repairing the Fitness Center) shall be included in Landlord’s Operating Expenses.

2.3 RESERVATIONS
Landlord reserves for itself, its employees, agents and designees the right from time to time, with twenty-four (24) hours’ advance telephonic or Email notice (except in the event of an emergency, in which case no notice shall be required) and without unreasonable interruption or disturbance of Tenant’s use:  (a) to enter the Premises and to install, erect, use, maintain, repair, replace and relocate for service to the Premises and other parts of the Building (including without limitation to other premises of other tenants), or either, pipes, ducts, conduits, wires, plumbing, electrical, telecommunications, fire suppression, HVAC and other components, systems and appurtenant fixtures, in and through the Premises and wherever located in the Premises or the Building, and to penetrate the Premises as necessary, appropriate or convenient to install and maintain any such structures and systems as determined by Landlord to be necessary, useful or convenient to the preparation, use and/or occupancy of other portions of the Building, and (b) to conduct construction activities in adjacent or nearby premises, to temporarily modify the means and/or configuration of access to the Premises for safety or convenience, and to alter or relocate any other common facility, including without limitation any lobby and courtyard areas.  Installations, replacements and relocations referred to in clause (a) above shall be located as far as practicable in the central core area of the Building, above ceiling surfaces, below floor surfaces or within perimeter walls of the Premises.  Landlord shall provide Tenant with reasonable prior notice of any such installation, replacement or relocation and shall use reasonable efforts to schedule the making thereof so as to minimize, to the extent practicable, the interference with Tenant’s business operations.
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Landlord shall have the express right at its sole cost and expense (and in no event passed through as an Operating Expense), without Tenant’s consent, to install or to permit an affiliate or other third party to install, on-site power generation (i.e., solar, photovoltaic, or small wind systems) (“On-Site Power System”), at or on the Building or on the roof of the Parking Facilities.  Tenant agrees to cooperate at no cost and expense to Tenant with Landlord in connection with the installation and on-going operation of any On-Site Power System; provided, however, such On-Site Power System shall not materially reduce, nor materially increase, and/or derogate from any of Tenant’s rights or responsibilities under this Lease.  Tenant acknowledges and agrees that Tenant shall have no right to receive the benefit of any renewable energy credits or similar credits resulting from on-site energy generation or the Solar Panel System, including tax credits, rebates, benefits, reductions, offsets, and allowances resulting from the environmental or related attributes of the On-Site Power System.

2.4 TERM
(a) The “Term Commencement Date” shall be the date which Landlord shall deliver the Premises to Tenant in the Delivery Condition (as defined in Exhibit B) for the performance of Tenant’s Initial Construction (as hereinafter defined).  
Upon request of either party, Tenant and Landlord shall execute documentation setting forth the Term Commencement Date and other matters in the form attached as Exhibit D (a “Confirmation of Lease Commencement”).
[***]
2.4.1 EXTENSION OPTION.  Tenant shall have the option to extend the Term for one (1) additional five (5) year extension term (the “Extension Term”) by notice given to Landlord at least twelve (12) months before the Term Expiration Date.  Tenant’s election shall be exercised, and Annual Fixed Rent for the Extension Term determined, as set forth below.  If Tenant fails timely to exercise its option for the Extension Term, Tenant shall have no further extension rights hereunder.
Tenant’s option so to extend the Term shall be void, at Landlord’s election, if Tenant is in default (subject to any applicable notice and cure periods set forth in this Lease) at the time Tenant elects to extend the Term or at the time the Term would expire but for such extension.  The extension of the Term shall be applicable to the entire Premises and Tenant shall have no right to extend the Term for only a portion of the Premises.  During the Extension Term, if any, all provisions of this Lease shall apply except that Tenant shall have no further option to extend the Term after the Extension Term.
During the Extension Term, Tenant shall pay Annual Fixed Rent equal to the greater of (y) the then prevailing market rate for renewals of first class mixed use office buildings (specifically excluding consideration of rents attributable to space which is not office space) in the greater Waltham/Lexington market comparable to the Premises in terms of location within a building, finish (excluding any finishes not provided by Landlord but including finishes made using the Improvement Allowance), age, building quality and amenities for a tenant of equal size and financial strength as Tenant, under terms and conditions substantially the same as those of this Lease as though then available for occupancy for the Permitted Uses (or any higher and better use then being made by Tenant) in “as-is” condition or such better condition in which 
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Tenant is required to maintain the Premises (the “Fair Market Rent”), or (z) $55.00 per rentable square foot.
Landlord shall notify Tenant of its estimate of the Fair Market Rent within ten (10) days after Tenant exercises the extension option; provided, however, in no event shall Landlord be obligated to provide Tenant with its estimate of the Fair Market Rent more than twelve (12) months prior to the expiration of the then current Term.  Tenant shall have the option to accept or reject by written notice Landlord’s estimate, or to withdraw its exercise of the extension option, in any case within fifteen (15) Business Days following delivery of Landlord’s estimate or within twenty-five (25) Business Days after Tenant exercises the extension option if Landlord does not provide Landlord’s estimate within such ten (10) day period.  Failure to respond within such period shall be deemed a rejection of Landlord’s estimate.  In the event Tenant rejects Landlord’s estimate then the Fair Market Rent shall be arbitrated in accordance with the following procedure.  
Each of Landlord and Tenant, within twenty (20) days after notice by Tenant disputing Landlord’s estimate of the Fair Market Rent, shall (i) submit to the other in a sealed envelope its final estimate of the Fair Market Rent (“Estimates”) and (ii) appoint a commercial real estate broker with at least ten (10) years’ experience as a broker of office and/or use first class office/research/laboratory buildings in the Greater Boston area, including first class suburban office/research/laboratory buildings, and shall give notice of such appointment to the other party.  If either Landlord or Tenant shall fail timely to appoint a qualified broker, then the broker appointed by the other party shall be the sole arbitrator for the purposes hereof.  The two brokers shall, within five (5) Business Days after appointment of the second broker, appoint a third broker who shall be similarly qualified.  If the two brokers are unable to agree timely on the selection of the third broker, then either broker on behalf of both may request such appointment from the Greater Boston Real Estate Board.  The brokers shall be charged to reach a majority written decision in accordance with the standards for the Fair Market Rent as provided in this Section 2.4.1, within twenty (20) days after the third broker is appointed, by selecting either of the final Estimates of the Fair Market Rent provided by Landlord and Tenant at the commencement of the hearing.  The brokers shall have no authority or jurisdiction to make any other determination of such amount.  The cost of the third broker shall be borne equally by the parties and otherwise the parties shall bear their own costs.  The parties acknowledge that notwithstanding anything to the contrary contained herein, the annual Fair Market Rent for the Extension Term shall in no event be less than $55.00 per rentable square foot of the then existing Premises in accordance with the third paragraph of this Section 2.4.1.
If Landlord should delay in giving the notice which begins the valuation procedures of this Section 2.4.1, or if the process should otherwise be delayed for any reason, then such procedures shall nevertheless remain in effect and be applicable when and as invoked with respect to Annual Fixed Rent payable during the Extension Term; but until such procedures are completed, Tenant shall pay on account of Annual Fixed Rent at the rate established for Annual Fixed Rent for the last twelve (12) months of the Term (and upon Fair Market Rent being established, Tenant shall pay the same within ten (10) days of such determination, retroactively to the beginning of the Extension Term).  The parties shall adjust for over or under payments within twenty (20) days after the decision of the brokers is announced.
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Promptly after the Annual Fixed Rent is determined for the Extension Term, Landlord and Tenant shall enter into an amendment of this Lease confirming the extension of the Term and the new rate for Annual Fixed Rent.
Tenant’s rights under this Section 2.4.1 are personal to Tenant and shall not apply to any Transferee of Tenant (other than a Transferee under a Permitted Transfer).  If at the time of exercise, Tenant has transferred more than thirty percent (30%) of the rentable floor area of the Premises (not including Permitted Transfers), then Tenant’s rights under this Section 2.4.1 shall be null and void and of no further force or effect.

2.5    ANNUAL FIXED RENT
Tenant covenants and agrees to pay the Annual Fixed Rent in Section 1.1 to Landlord in advance in equal monthly installments commencing on the Rent Commencement Date (if not the first day of a month) and thereafter on the first day of each calendar month during the Term.  Landlord shall credit Tenant the amount of $75,000 for design fees incurred by Tenant for the Tenant’s Plans in the form of free rent to be applied on the Rent Commencement Date (“Design Fee Reimbursement”).  All payments shall be due without billing or demand and without deduction, setoff or counterclaim, except as expressly set forth in this Lease.  Tenant shall make payment for any portion of a month at the beginning or end of the Term.  All payments shall be payable to Landlord at Landlord’s address, as specified in Section 1.1, via ACH, or to such other entities at such other places as Landlord may from time to time designate.  Tenant acknowledges that the rent abatement during the period between the Term Commencement Date and the Rent Commencement Date is being granted to Tenant in consideration of the timely and faithful performance by Tenant of all of the terms and conditions of the Lease.  If at any time from and after the Term Commencement Date through the Rent Commencement Date, there occurs any default of Tenant under this Lease, and such default continues beyond applicable notice and cure periods, then Tenant’s right to abate the Annual Fixed Rent under this Section 2.5 shall toll (and Tenant shall be required to pay the Annual Fixed Rent during any such period) until Tenant has cured, to Landlord’s commercially reasonable satisfaction, such default.  
Without limiting the foregoing, except as expressly set forth in this Lease, Tenant’s obligation so to pay Rent (as hereinafter defined) shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Premises, or any other restriction on Tenant’s use, or any casualty or taking, or any failure by Landlord to perform any covenant contained herein, or any other occurrence; and, except as expressly set forth in this Lease, Tenant waives all rights now or hereafter existing to terminate or cancel this Lease or quit or surrender the Premises or any part thereof, or to assert any defense in the nature of constructive eviction to any action seeking to recover Rent.
The foregoing notwithstanding, if Landlord fails for any reason within Landlord’s reasonable control to provide an Essential Service (as hereinafter defined) to be supplied by Landlord under the Lease which is necessary for Tenant’s reasonable use of the Premises, and Tenant is unable to use the Premises on account of such failure, Tenant shall be entitled to a proportional abatement of Annual Fixed Rent and Additional Rent for Landlord’s Operating Expenses and Taxes based on the portion of the Premises which cannot be used by Tenant.  This abatement shall begin on the sixth (6th) consecutive Business Day from Tenant’s written notice to Landlord of the failure.  The abatement shall end when the services are restored sufficiently to 
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permit use of the Premises.  “Essential Service” for purposes of this Section shall be considered HVAC, electricity, gas, sewer, and water.

2.6    ADDITIONAL RENT - OPERATING EXPENSES AND TAXES
2.6.1 ADDITIONAL RENT – DEFINITIONS.  For purposes of this Lease:
(a)    “Expense Pool(s) ” shall be defined as, individually or collectively, as applicable, the Project Expense Pool, the Building Expense Pool, the Office Area Expense Pool, and the Laboratory Area Expense Pool (each as hereinafter defined).  Landlord’s Operating Expenses and Landlord’s Taxes, as hereinafter defined, shall be allocated by Landlord, in accordance with this Section 2.6.1, to the appropriate Expense Pool. Landlord’s Operating Expenses shall be equitably allocated by Landlord to an Expense Pool only if the rentable areas of the premises to which such Expense Pool is to be allocated have the benefit from the service or facility for which such Operating Expense is incurred, and no Operating Expense shall be allocated to more than one Expense Pool.  Each Expense Pool shall be defined as follows:
(i)    The “Project Expense Pool” shall include only Landlord’s Operating Expenses incurred for services and facilities that benefit the entirety of the Project; 
(ii)    The “Building Expense Pool” shall include only Landlord’s Operating Expenses incurred for services and facilities that benefit the entirety of the Building (but not the entirety of the Project) and Landlord’s Taxes;
(iii)    The “Office Area Expense Pool” shall include only Landlord’s Operating Expenses incurred for services and facilities that benefit the entirety of the Office Area (but no other portion of the Building or Project); and
(iv)    The “Laboratory Area Expense Pool” shall only include Landlord’s Operating Expenses incurred for services and facilities that benefit the entirety of the Laboratory Area (but no other portion of the Building or Project).
Any Landlord’s Operating Expense which solely benefits the Office Area shall be allocated 100% to the Office Area Expense Pool.  Similarly, any Landlord’s Operating Expense which solely benefits the Laboratory Area shall be allocated 100% to the Laboratory Area Expense Pool.  For the avoidance of doubt, no Landlord’s Operating Expenses incurred for services or facilities solely benefitting the Laboratory Area shall be allocated to the Project Expense Pool, the Building Expense Pool or the Office Area Expense Pool.  
(b)    “Tenant’s Expense Payment Amount” shall, subject to the provisions of this Section 2.6, be defined as the sum of the portion of each Expense Pool which is allocable to Tenant, calculated in accordance with the following:
(i)    Project Expense Pool:  The product of: (x) all Landlord’s Operating Expenses allocated to the Project Expense Pool, multiplied by a fraction (“Tenant’s Project Expense Share”), the numerator of which is the Rentable Floor Area of Premises and the denominator of which is the total rentable square footage of the Buildings in the Project; plus  
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(ii)     Building Expense Pool:  The product of: (x) all Landlord’s Operating Expenses and Landlord’s Taxes allocated to the Building Expense Pool, multiplied by a fraction (“Tenant’s Building Expense Share”), the numerator of which is the Rentable Floor Area of Premises and the denominator of which is the Rentable Floor Area of Building; plus
(iii)    Office Area Expense Pool: The product of: (x) all Landlord’s Operating Expenses allocated to the Office Area Expense Pool, multiplied by a fraction (“Tenant’s Office Expense Share”), the numerator of which is the Rentable Floor Area of Premises and the denominator of which is the rentable square footage of the Office Area.
Tenant’s Project Expense Share, Tenant’s Building Expense Share, and Tenant’s Office Expense Share shall collectively be referred to herein as “Tenant’s Expense Share.”  Notwithstanding the foregoing, if there is a reasonably determinable basis for an allocation of any Landlord’s Operating Expense among the Expense Pools or within an Expense Pool that should not be strictly on a per rentable square foot basis, Landlord shall reallocate such Landlord’s Operating Expenses among the Expense Pools or within the applicable Expense Pool in order to achieve a fair allocation of such Landlord’s Operating Expenses (e.g., without limitation, by reason of relative consumption) and equitable determination of Tenant’s Expense Payment Amount.  Tenant’s Expense Payment Amount shall not include any Landlord’s Operating Expenses which are allocated to the Laboratory Area Expense Pool.
2.6.2    ADDITIONAL RENT - GENERAL COVENANT.  Tenant covenants and agrees to pay to Landlord, as “Additional Rent”, (i) Tenant’s Expense Payment Amount and (ii) any other charges payable by Tenant to Landlord under this Lease.  Landlord shall not collect from Tenant and other tenants more than one hundred percent (100%) of Landlord’s Operating Expenses and Landlord’s Taxes actually incurred by Landlord.  The term “Rent” as used in this Lease shall mean Annual Fixed Rent and Additional Rent as set forth in this Lease.
2.6.3    PAYMENT. Additional Rent for Landlord’s Operating Expenses and Landlord’s Taxes under this Section 2.6 shall be paid for any portion of a month at the beginning of the Term and thereafter in monthly installments on the first day of each calendar month in amounts reasonably estimated by Landlord for the then current calendar year, all without deduction, setoff or counterclaim, except as expressly set forth in Section 2.5 hereof.  Landlord may from time to time revise (but not more than two times in any year) such estimates based on available information relating to Landlord’s Operating Expenses and Landlord’s Taxes or otherwise affecting the calculation hereunder.  Landlord will use commercially reasonable good faith efforts to provide Tenant with an accounting statement of Landlord’s Operating Expenses and Landlord’s Taxes and other data necessary to calculate Additional Rent hereunder thirty (30) days prior to each such calendar year prepared in reasonable “line item” detail, and consistently maintained from year to year in accordance with generally accepted accounting principles (GAAP).  Landlord shall use commercially reasonable good faith efforts to provide such statement within one hundred twenty (120) days after the end of each calendar year.  Any such statement shall be binding upon Tenant unless disputed in accordance with Section 2.6.5.  Upon issuance thereof, there shall be an adjustment between Landlord and Tenant for the calendar year covered by such accounting to the end that Landlord shall have received the exact amount of 
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Additional Rent due hereunder.  In no event shall Additional Rent for Operating Expenses and Taxes be less than zero.  Any overpayments by Tenant hereunder shall be credited against the next payments of Additional Rent due under this Section 2.6, provided there are no outstanding amounts due Landlord under this Lease at such time.  Any underpayments by Tenant shall be due and payable within thirty (30) days of delivery of Landlord’s statement.  With respect to the calendar year in which the Term begins or ends, the adjustment shall be prorated for the portion of the year included in the Term, but shall take place nevertheless at the times provided in the preceding sentences and any overpayments by Tenant hereunder shall be paid to Tenant within thirty (30) days following the expiration of the Term, to the extent there are no outstanding amounts due Landlord under this Lease.  
2.6.4    “LANDLORD’S OPERATING EXPENSES” - DEFINITION.  “Landlord’s Operating Expenses” means all reasonable and customary costs of Landlord in owning, servicing, operating, managing, maintaining, and repairing the Building, Land, and all improvements thereon and providing services to tenants including, without limitation, the costs of the following:  (a) supplies, materials and equipment purchased or rented, total wage and salary costs paid to, and all contract payments made on account of, all persons engaged in the operation, maintenance, security, cleaning and repair of the Building and Land, including Social Security, old age and unemployment taxes and so-called “fringe benefits”; (b) building services furnished to tenants of the Building at Landlord’s expense (including the types of services provided to Tenant pursuant to Section 4.1 hereof) and maintenance and repair of and services provided to or on behalf of the Building performed by Landlord’s employees or by other persons under contract with Landlord; (c) utilities consumed and expenses incurred in the operation, maintenance and repair of the Building including, without limitation, oil, gas, electricity (other than electricity to tenants in their premises if Tenant is directly responsible for payment under this Lease on account of electricity consumed by Tenant), water, sewer and snow removal (including without limitation rooftop snow removal); (d) commercially reasonable costs of casualty, liability and other insurance, and unreimbursed costs incurred by Landlord which are subject to an insurance deductible; (e) provided that any of the following are available for use by Tenant (and provided that the cost is applicable to all tenants of the Building who benefit from the use of a cafeteria, conference center, other food service facility or physical fitness facility), costs of operating any cafeteria, conference center, other food service facility, or physical fitness facility for use of tenants generally and/or management office (including rent); (f) management fees not to exceed three percent (3%) of gross rental income; (g) any such costs of Landlord incurred with respect to the Project that are reasonably allocated to the Building; (h) actual operating costs incurred in maintaining and operating the Building in accordance with applicable LEED standards following the Substantial Completion Date (it being understood and agreed that such LEED certification shall be achieved by Landlord at its sole cost and expense and not as an Operating Expense by Landlord on or prior to the Substantial Completion Date); and (i) actual operating costs incurred in maintaining and operating the Building in accordance with other energy efficiency or environmental sustainability standards including but not limited to a Sustainability Policy or Green Certification (as further defined in this Lease).  If Landlord, in its reasonable discretion, installs a new or replacement capital item for the purpose of reducing (or avoiding increases in) or conserving the use of energy in the Building, complying with any building code or other law, regulation, or legal requirement not in effect prior to the effective 
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date of this Lease, complying with requirements of any insurer not in effect prior to the Term Commencement Date, to meet applicable LEED or other energy efficiency standards not in effect prior to the Substantial Completion Date, or otherwise relating to the operation of the Building, the cost of such item amortized on a straight line basis over its useful life and in accordance with generally accepted accounting principles (“GAAP”) with interest at the “Prime Rate” (as published in the Wall Street Journal or comparable financial publication reasonably selected by Landlord) plus Two Percent (2%) shall be included in Landlord’s Operating Expenses.
Notwithstanding anything contained in this Lease to the contrary, Landlord’s Operating Expenses shall not include (i) any costs or expenses incurred by Landlord in the completion of the Landlord’s Initial Construction, the Delivery Condition or any construction for tenants for which Landlord is entitled to reimbursement; (ii) payments of principal, interest or other charges on mortgages and other financing costs with respect to the Building or the Project; (iii) costs for categories of services provided to other tenants but not to Tenant; (iv) salaries and other compensation (including fringe benefits other than insurance plans and tax-qualified benefit plans) of Landlord’s executives, principals, and senior management above the grade of facilities general manager (except as the same may be reflected in the management fee for the Building or attributable to actual Building operations); (v) costs incurred in connection with the making of repairs or replacements which are the obligation of another tenant or occupant of the Building; (vi) advertising, marketing, promotional, public relations or brokerage fees, commissions or expenditures; (vii) interest or penalties for any failed payments by Landlord under any contract or agreement; (viii) costs (including, without limitation, attorneys’ fees and disbursements) in excess of reasonable insurance deductible amounts incurred in connection with any judgment, settlement or arbitration award resulting from any negligence or willful misconduct of Landlord or its agents; (ix) costs of electricity or utilities furnished directly to any premises of other tenants of the Building where such utility is separately metered to such premises or such tenant pays a separate charge therefor; (x) costs incurred in connection with Landlord’s preparation, negotiation, dispute resolution and/or enforcement of leases, including court costs and attorneys’ fees and disbursements in connection with any summary proceeding to dispossess any other tenant, or incurred in connection with disputes with prospective tenants, leasing agents, purchasers or mortgagees; (xi) costs of repairs, restoration or replacements occasioned by fire or other casualty in excess of reasonable insurance deductible amounts, or caused by the exercise of the right of eminent domain; legal and other professional fees relating to matters which are excluded from Landlord’s Operating Expenses for the Building; (xii) the cost to make improvements, alterations and additions to the Building which are required in order to render the same in compliance with laws, rules, orders, regulations and/or directives as in effect and generally enforced after the date of this Lease; (xiii) the cost of environmental monitoring, compliance, testing and remediation performed in, on, about and around the Building or the Land except as otherwise provided in Section 5.2 hereof; (xiv) depreciation; (xv) amounts other than the management fee specified above and costs and charges under clause (vii) above, paid to subsidiaries or affiliates of Landlord for services rendered to the Building to the extent such amounts exceed the competitive costs for delivery of such services were they not provided by such related parties; (xvi) the original design and construction costs of the Building and Project and costs of correcting defects in such original design and construction (including materials and 
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equipment); (xvii) ground rent or similar payments to a ground lessor; (xviii) expenditures for the replacement of any item covered by installation of or any warranty (to the extent of the coverage of such warranty); (xix) costs to correct any penalty or fine due incurred by Landlord due to Landlord’s violation of any federal, state or local law or regulation (except as a result of Tenant’s failure to pay any amounts due herein); (xx) costs of repair necessitated by Landlord’s negligence or willful misconduct; (xxi) expenses for any item or service that Tenant pays directly to a third party or separately reimburses Landlord; (xxii) expenses incurred by Landlord to the extent the same are reimbursed by other tenants or third parties; (xxiii) any expense associated with the operation of Landlord’s business entity or interest therein as distinguished from the cost and operation of the Building; (xxiv) reserves; (xxv) costs of the acquisition or installation of or any lease of sculpture, paintings or other objects of art which are the quality and nature of “fine art,” rather than decorative artwork customarily found in buildings which are similar to the Building, and/or special maintenance and cleaning costs in connection therewith; (xxvi) except as expressly permitted above, costs of alterations, capital improvements, equipment, replacements and other items that under GAAP are properly classified as capital expenditures (including, without limitation, the costs of paving any parking areas other than those which are permitted above; (xxvii) any cost for which Landlord is responsible under Section 4.4 below; (xxviii) any ground lease rental; (xxix) management fees in excess of that amount allowed pursuant to (f) above; (xxx) costs, including permit, license and inspection costs, incurred with respect to the installation of tenants’ or other occupants’ improvements in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building; (xxxi) rentals and other related expenses incurred in leasing HVAC systems, elevators or other equipment ordinarily considered to be capital items, except for:  (a) expenses in connection with making repairs on or keeping buildings systems in operation while repairs are being made and (b) costs of equipment not affixed to the Building which is used in providing janitorial or similar services; (xxxii) costs of signs in or on the Building identifying the owner of the Building or other tenants’ signs; (xxxiii) tax penalties incurred as a result of Landlord’s negligence, inability, failure or unwillingness to make payments and/or to file any tax or informational returns when due (except to the extent such failure results from Tenant’s failure to pay any amounts due herein); (xxxiv) costs arising from Landlord’s charitable or political contributions; (xxxv) costs arising during the contractual warranty period from construction defects in the base, shell or core of the Building or improvements installed by Landlord; (xxxvi) any expenses incurred by Landlord for use of any portions of the Building to accommodate events Tenant’s employees, agents, or invitees are not otherwise entitled to attend, including, but not limited to shows, promotions, kiosks, displays, filming, photography, private events or parties, ceremonies and advertising beyond the normal expenses otherwise attributable to providing Building services, such as lighting and HVAC to such public portions of the Building in normal operations during standard Building hours of operation; (xxxvii) any entertainment, dining or travel expenses of Landlord for any purpose; (xxxviii) any flowers, gifts, balloons, etc. provided to any entity whatsoever, including but not limited to, Tenant, other tenants, employees, vendors, contractors, prospective tenants and agents; (xxxix) any “above-standard” cleaning, including, but not limited to construction cleanup or special cleanings associated with private parties/events and specific tenant requirements in excess of service provided to Tenant, including related trash collection, removal, hauling and dumping; (xl) any costs to remove, test or remediate the presence of Hazardous Substances in or 
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about the Project for which Tenant is not responsible under this Lease; and (xli) Landlord’s general corporate overhead and general and administrative expenses.
For any calendar year during the Term, Landlord’s Operating Expenses (adjusted to 95% occupancy) and any Expense Pool shall not include the amount (if any) by which (x) the aggregate Controllable Operating Expenses (as defined below) for such year exceed (y) the Capped Amount (as defined below) for such year.  As used herein, the term “Controllable Operating Expenses” shall mean all Landlord’s Operating Expenses, the amount of which can be reduced by Landlord without violating any applicable legal requirements, the terms of any institutional financing for the Building, or standards for the operation and maintenance of comparable institutionally owned office properties in the greater Boston, Massachusetts “128 Central” area and, without limiting the generality of the foregoing, specifically excluding the costs of utilities, Landlord’s Taxes, insurance, snow and ice removal, union labor, compliance with any building code or other law, regulation, or legal requirement to the extent not in effect or generally enforced on the date as of this Lease, and matters arising from Force Majeure or other causes beyond Landlord’s reasonable control.  The term “Capped Amount” for any year of the Term shall mean the aggregate amount of Controllable Operating Expenses for the first year of the Term, as such amount shall be increased on a cumulative basis by five percent (5%) per annum through such year of the Term.  For purposes of clarity, the calculation of Controllable Operating Expenses shall exclude items and costs of services provided to the Premises that are separately charged to Tenant under other provisions of the Lease (e.g., after-hours HVAC usage).  If Landlord, in its reasonable discretion, installs a new or replacement capital item for the purpose of reducing or conserving the use of energy in the Building, complying with any building code or other law, regulation, or Legal Requirement not in effect as of the date of this Lease, complying with requirements of any insurer, or otherwise relating to the operation of the Building, the cost of such item amortized on a straight line basis over its useful life in accordance with GAAP with interest at the Prime Rate shall be included in Landlord’s Operating Expenses.
2.6.5    “LANDLORD’S TAXES” - DEFINITION.  “Landlord’s Taxes” means all taxes, assessments and similar charges assessed or imposed on the Land for the then current year by any governmental authority attributable to the Building and any associated parking structure (including personal property associated therewith).  The amount of any special taxes, special assessments and agreed or governmentally imposed “in lieu of tax” or similar charges shall be included in Landlord’s Taxes for any year but shall be limited to the amount of the installment (plus any interest, other than penalty interest, payable thereon) of such special tax, special assessment or such charge required to be paid during or with respect to the year in question.  Landlord’s Taxes include expenses, including reasonable fees of attorneys, appraisers and other consultants, incurred in connection with any efforts to obtain abatements or reduction or to assure maintenance of Landlord’s Taxes for any year wholly or partially included in the Term, whether or not successful and whether or not such efforts involved filing of actual abatement applications or initiation of formal proceedings.  Landlord shall account for such expenses and for any final reduction in Landlord’s Taxes granted by the governmental taxing authority in such abatement proceeding in the accounting statement of Landlord’s Operating Expenses and Taxes prepared pursuant to Section 2.6.2 above covering the year in which such expenses were incurred or the year in which such final tax reduction was actually granted, as applicable.  Landlord’s Taxes exclude income taxes of general application and all estate, succession, inheritance and 
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transfer taxes.  If at any time during the Term there shall be assessed on Landlord, in addition to or in lieu of the whole or any part of the ad valorem tax on real or personal property, a capital levy or other tax on the gross rents or other measures of Building operations, or a governmental income, franchise, excise or similar tax, assessment, levy, charge or fee measured by or based, in whole or in part, upon building valuation, gross rents or other measures of Building operations or benefits of governmental services furnished to the Building, then any and all of such taxes, assessments, levies, charges and fees, to the extent so measured or based, shall be included within the term Landlord’s Taxes, but only to the extent that the same would be payable if the Building and Land were the only property of Landlord.  Landlord shall pay all Landlord’s Taxes in a timely manner. 
2.6.6    AUDIT RIGHTS.  At the request of Tenant at any time within one hundred twenty (120) days after Landlord delivers Landlord’s statement of Landlord’s Operating Expenses and Landlord’s Taxes to Tenant, Tenant (at Tenant’s expense) shall have the right to examine Landlord’s books and records applicable to Landlord’s Operating Expenses and Taxes.  Such right to examine the records shall be exercisable:  (a) upon reasonable advance notice to Landlord and at reasonable times during Landlord’s business hours; (b) only during the 120 day period following Tenant’s receipt of Landlord’s statement of the actual amount of Landlord’s Operating Expenses and Landlord’s Taxes for the applicable calendar year; and (c) not more than once each calendar year.  Notwithstanding anything herein to the contrary, Tenant shall have no right to examine Landlord’s books and records and audit Landlord’s Operating Expenses and Landlord’s Taxes if Tenant shall have withheld or otherwise failed to pay any Additional Rent when due.  Landlord’s statement of Operating Expenses and Landlord’s Taxes shall be binding upon Tenant except as to items specifically disputed in writing by notice from Tenant to Landlord given within 120 days after Landlord delivers the statement to Tenant.  Tenant shall pay all costs of the audit, provided, however, if Tenant is found to have overpaid Additional Rent for Operating Expenses and Landlord’s Taxes by more than 5% for the year in question, Landlord shall reimburse Tenant for all reasonable costs of the audit, not to exceed Ten Thousand Dollars and 00/100 ($10,000.00) and the amount of the overcharge shall be credited against Tenant’s next payment of Rent (or refund such amount to Tenant if the Term has ended and Tenant has no further obligations to Landlord under this Lease).  The foregoing obligation of Landlord shall survive the expiration or earlier termination of this Lease.  If the audit shall determine that Tenant was undercharged for the Operating Expenses and Landlord’s Taxes, Landlord may invoice Tenant for such amount and Tenant shall pay the amount of such undercharge to Landlord within thirty (30) days after receipt of such invoice and all costs associated with the audit.  In any event, any audit of Landlord’s Operating Expenses and Landlord’s Taxes shall be conducted by an independent certified public accountant retained by Tenant, Tenant’s Chief Financial Officer or an auditing firm approved by Landlord for such purpose (each, an “examiner”).  In no event shall Landlord ever be required to approve any examiner of Tenant who is being paid on a contingent fee basis or is representing other tenants in the Building.
2.6.7    As a condition precedent to performing any such examination of Landlord’s books and records, Tenant and its examiners shall be required to execute and deliver to Landlord an agreement in form acceptable to Landlord agreeing to keep confidential any information that they discover about Landlord or the Building in connection with such examination.  Without 
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limiting the foregoing, such examiners shall also be required to agree that they will not represent any other tenant in the Building in connection with examinations of Landlord’s books and records for the Building unless said tenant(s) have retained said examiners prior to the date of the first examination of Landlord’s books and records conducted by Tenant pursuant to this Section 2.6.7 and have been continuously represented by such examiners since that time.  Notwithstanding any prior approval of any examiners by Landlord, Landlord shall have the right to rescind such approval at any time if in Landlord’s reasonable judgment the examiners have breached any confidentiality undertaking to Landlord or cannot provide acceptable assurances and procedures to maintain confidentiality.

2.7    ELECTRICITY
Tenant covenants and agrees to pay as Additional Rent the cost of electricity used in or for the Premises (including, without limitation, air handling units or other HVAC equipment serving the Premises), for Supplemental Equipment, and, if applicable, for any special equipment installed by or for Tenant elsewhere in the Building, which shall be submetered and billed to Tenant monthly.
Landlord may, at any time, at its sole election, discontinue the furnishing of electric current upon not less than three months’ notice (or such longer time as may be required to make arrangements with the electric utility for direct service provided Tenant exercises diligent efforts to complete said arrangements as soon as possible), whereupon Tenant’s obligation to pay Additional Rent under this Section shall cease.  In electing to discontinue furnishing electric current, Landlord shall not discriminate between Tenant and other tenants of the Building similarly situated with respect to the reason for discontinuance of electric service.  If Landlord elects to discontinue electric service, Tenant shall contract directly with the utility company supplying electric current and Landlord shall, at its expense, bear all costs associated with converting the Premises to utility company service and shall furnish and install, in the Premises or other location, necessary transmission lines and metering equipment used in connection with measuring Tenant’s consumption of electric current.  Tenant shall be responsible for maintenance and repair of such transmission and metering equipment during the balance of the Term.
Tenant covenants and agrees that Landlord shall in no event be liable or responsible to Tenant for any loss, damage or expense which Tenant may sustain or incur if either the quality or character of electrical service is changed or is no longer suitable for Tenant’s requirements.  Tenant covenants and agrees that at all times its use of electric current shall never exceed the capacity of existing feeders to the Building or the risers or wiring or installation of the Building.
Subject to Landlord’s reasonable rules and regulations governing the same, Tenant shall obtain and pay, as and when due, for all other utilities and services consumed in and/or furnished to the Premises, together with all taxes, penalties, surcharges and maintenance charges pertaining thereto.  In the event any governmental entity promulgates or revises any Legal Requirements after the Term Commencement Date, or issues mandatory controls after the Term Commencement Date relating to the use or conservation of energy, water, gas, light or electricity, or the provision of any other utility or service furnished by Landlord in the Building, Landlord may take any appropriate action to comply with such provision of Legal Requirements or mandatory controls, including the making of alterations to the Building, subject, however, to 
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the terms and conditions of this Lease.  Neither Landlord’s actions nor its failure to act shall entitle Tenant to any damages, abate or suspend Tenant’s obligation to pay Annual Fixed Rent and Additional Rent or constitute or be construed as a constructive or other eviction of Tenant except as otherwise specifically set forth herein.  The parties hereto shall comply with all mandatory energy conservation controls and requirements applicable to the Building that are imposed or instituted by the federal, state, county or municipal governments after the Term Commencement Date and are of general applicability to the occupants of the Building, including, without limitation, controls on the permitted range of temperature settings in office/retail buildings, and requirements necessitating curtailment of the volume of energy consumption or the Hours of Operation of the Building.  Any terms or conditions of this Lease that conflict or interfere with compliance with such controls or requirements shall be suspended for the duration of such controls or requirements.  Compliance with such controls or requirements shall not be considered an eviction, actual or constructive, of Tenant from the Premises and shall not entitle Tenant to terminate this Lease or to an abatement of any rent payable hereunder.

ARTICLE III
CONSTRUCTION

3.1    LANDLORD WORK
3.1.1 GENERAL.  Except for Landlord’s Initial Construction as set forth in and described in Exhibits B, B-1, B-2 and B-3, the Premises are being leased in their broom-clean, “as-is” condition without representation or warranty by Landlord except as expressly set forth in this Lease, and Landlord shall not be required to perform any work in connection with Tenant’s initial occupancy of the Premises except as set forth in Exhibits B, B-1, B-2 and B-3 but the foregoing shall not affect Landlord’s obligations set forth in this Lease with respect to maintenance and repair and in the event of a fire or casualty.  Landlord shall deliver the Premises for Tenant’s construction of the Tenant’s Initial Construction in the Delivery Condition on the Term Commencement Date in compliance with applicable Legal Requirements.  Except for Landlord’s Initial Construction, Improvement Allowance and Space Planning Allowance, Tenant shall be solely responsible for all costs related to the design, installation, labor, security, conduit and materials of all telephone, data, cabling and fiber optic requirements inclusive from public utility pathways in the Building to the Premises. 
3.1.2    LANDLORD’S INITIAL CONSTRUCTION.  Landlord, at Landlord’s cost, shall perform the Delivery Condition and Landlord’s Initial Construction in accordance with the provisions of Exhibit B using new and Building standard materials.  Landlord’s Initial Construction shall be performed in strict accordance with the Landlord/Tenant Matrix attached hereto as Exhibit B-1, the requirements of Exhibit B-2 and the Base Building Plans and Specifications included as Exhibit B-3 (referred to herein as the “Landlord’s Plans”), in a good and workmanlike manner, and in accordance with all applicable Legal Requirements.  Landlord and Tenant shall use commercially reasonable efforts to coordinate the prosecution of Landlord’s Initial Construction and Tenant’s Initial Construction.  Any additional improvement to the Premises not shown on the Landlord/Tenant Matrix, or Landlord’s Plans, that are requested by Tenant and approved by Landlord shall be constructed at Tenant’s sole cost and expense (and 
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Tenant may use the Improvement Allowance and Space Planning Allowance for such costs and expenses), subject to all terms and provisions of this Lease.

3.2    INTENTIONALLY OMITTED

3.3.    TENANT’S INITIAL CONSTRUCTION
Tenant at Tenant’s expense, subject to payment of the Improvement Allowance and Space Planning Allowance and the performance by Landlord of the work in Exhibits B-1, B-2 and B-3, shall perform all work Tenant considers necessary or desirable by Tenant to make the Premises ready for Tenant’s occupancy (“Tenant’s Initial Construction”) in accordance with the provisions of Exhibit B.  In connection with the design and construction of Tenant’s Initial Construction, Tenant shall comply with Landlord’s then existing construction project rules and regulations.

3.4    OTHER CONSTRUCTION
Landlord shall use commercially reasonable efforts, at no material additional cost to Landlord and except in the event of an emergency or unsafe condition, to coordinate with other tenants of the Building to schedule the performance of any excessively noisy or disruptive construction work (such as core drilling) outside of Hours of Operation.

ARTICLE IV
LANDLORD’S COVENANTS

4.1    LANDLORD’S COVENANTS
4.1.1    BUILDING SERVICES.  Landlord shall furnish services, utilities, facilities and supplies set forth in this Section 4.1.1.  Tenant may obtain additional services, utilities, facilities and supplies from time to time upon reasonable advance request or Landlord may furnish the same without request if Landlord reasonably determines that Tenant’s use or occupancy of the Premises necessitates the same (for example where the condition of the Premises necessitates additional cleaning services or where snow removal is needed for access to and operation or maintenance of any equipment used by Tenant, including without limitation generators, telecommunications equipment or supplemental HVAC equipment whether on the roof, ground or elsewhere or in the event Tenant shall use greater than its proportionate share of any available capacities for any services, utilities, facilities or supplies as may be set forth in the Landlord/Tenant Matrix included in Exhibit B-1), and, in either case, the cost of the same at reasonable rates from time to time established by Landlord shall constitute Additional Rent, payable within thirty (30) days after written demand.  For all purposes in this Lease, the phrase “Hours of Operation” shall mean Mondays through Fridays excepting legal holidays in the state in which the Building is located from 7:00 a.m. to 6:00 p.m. and on Saturdays from 9:00 a.m. to 1:00 p.m.  Landlord will provide Tenant with online review access only for the Building Management System.  Tenant shall have access to the Premises 24-hours per day, 7 days per week.
(a)    WATER CHARGES. Landlord shall furnish hot and cold water (at temperatures supplied by the city in which the Building is located) for ordinary office cleaning, toilet, lavatory and drinking purposes.  Such water shall be made available from the main connection point for such service on the floor and floors, as applicable, on which the Premises is located and the 
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distribution of water within the Premises shall be provided by Tenant.  If Tenant uses water for any purpose other than for ordinary lavatory and drinking purposes, Landlord may assess a reasonable charge for the additional water so used by installing a water meter and thereby measure Tenant’s water consumption for all purposes.  In such event, Tenant shall pay the cost of the meter and the cost of installation thereof as Additional Rent within thirty (30) days of demand and shall keep such meter and installation equipment in good working order and repair.  Tenant agrees to pay for water consumed, as shown on such meter, together with the sewer charge based on such meter charges, as and when bills are rendered, and in the event Tenant fails timely to make any such payment, Landlord may pay such charges and collect the same from Tenant upon demand as Additional Rent. Landlord represents that the Building is designed in such a way so as to separately meter water consumption for each tenant within the Building.  
(b)    GAS CHARGES.  Landlord shall contract with the utility provider for gas service to the Building, including the Premises.  The cost of gas (without mark-up to Tenant) used to serve base Building plumbing, mechanical and electrical systems shall be included in Landlord’s Operating Expenses reimbursed by Tenant in accordance with Section 2.6.
(c)    CLEANING AND TRASH REMOVAL.  Landlord shall cause the common areas of the Building and the Premises including all restrooms to be kept clean, in good order and condition in a manner consistent with other first-class office buildings in the greater Boston “Metro-West” area provided the same are maintained and kept in good order by Tenant.  Cleaning standards shall be in accordance with Exhibit C.  Tenant agrees, at its sole cost and expense, except to the extent recycling and waste management services are provided by Landlord, (a) to comply with all present and future laws, orders and regulations of the Federal, State, county, municipal or other governing authorities, departments, commissions, agencies and boards regarding the collection, sorting, separation, composting and recycling of garbage, trash, rubbish and other refuse (collectively, “trash”); (b) to comply with Landlord’s recycling policy (which shall be uniformly applied to all similarly situated office tenants), if any, as part of Landlord’s Sustainability Policy where it may be more stringent than applicable law; and (c) that Tenant shall pay all costs, expenses, fines, penalties or damages that may be imposed on Landlord or Tenant by reason of Tenant’s failure to comply with the provisions of this Section.
(d)    HEAT AND AIR-CONDITIONING.  Landlord shall furnish heating and cooling to the Premises for reasonably comfortable occupancy of the Premises during the Hours of Operation subject to casualty, eminent domain or as otherwise specified in this Article.  If Tenant requests Landlord to provide heat or air conditioning beyond the Hours of Operation, Tenant shall pay Landlord therefor at rates reasonably established by Landlord from time to time, to reflect Landlord’s actual cost without mark-up to Tenant.  To the extent that Tenant requires heating and/or cooling services in excess of those provided by connection to the Building HVAC systems, Tenant shall install and maintain, at its sole cost (and Landlord shall not be liable for) supplemental HVAC systems in accordance with the provisions of this Lease.  Subject to Section 2.5 hereof, Landlord shall have no liability, and Tenant shall have no right or remedy, on account of any interruption or impairment in HVAC services; provided that Landlord diligently uses good faith efforts to cure any such interruption or impairment.  Except as set forth in this Lease, Landlord has made no express representations or warranties and disclaims any implied representations or warranties relating to the condition of the Premises and common areas, or any 
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part thereof, including, but not limited to, the HVAC and other building systems, the indoor air quality (IAQ) within the Premises and common areas, and the environmental condition of the Premises and common areas. 
4.1.2    REPAIRS.  Except as otherwise provided in this Lease (and except for repairs to items referred to below necessitated by Tenant’s act or neglect, which shall be Tenant’s repair obligation under Section 5.1), and subject to reimbursement to the extent set forth in Section 2.6, Landlord shall maintain and make such repairs to (i) the roofs, exterior walls, exterior windows of the Premises (except if such damage or repair is necessitated by the Tenant’s negligence or willful misconduct), foundation, floor slabs, core walls, all restrooms within the Premises and the common areas and facilities in the Building; and (ii) all base Building systems, including mechanical (including HVAC, but specifically excluding any supplemental heating, ventilation or air conditioning equipment or systems exclusively serving the Premises installed at Tenant’s request or as a result of Tenant’s requirements in excess of Building standard design criteria), gas, electrical, plumbing, elevator, and fire/life safety and security systems serving the Building in general and up to the point of connection of these systems to the Premises, as may be necessary to keep them in good order, condition and repair.  
4.1.3    QUIET ENJOYMENT.  Landlord covenants that Tenant, on paying the Rent and performing the Tenant obligations in this Lease, shall peacefully and quietly have, hold and enjoy the Premises, free from any claim by Landlord or persons claiming under Landlord, but subject to all of the terms and provisions hereof, provisions of law and rights of record to which this Lease is or may become subordinate.  This covenant is in lieu of any other so-called quiet enjoyment covenant, either express or implied.  

4.2    INTERRUPTION
Except as expressly set forth in this Lease, Landlord shall not be liable to Tenant for any compensation or reduction of Rent by reason of inconvenience or annoyance or for loss of business arising from Landlord or its agents entering the Premises for any of the purposes authorized in this Lease or from repairs by Landlord of any portion of the Building (provided, however, that Landlord shall use commercially reasonable efforts to avoid interruption of Tenant’s use of the Premises for the Permitted Uses during any such entry into the Premises).  If Landlord or Tenant is in any way delayed or prevented from performing any obligation (except, with respect to Tenant only: its obligations to pay rent and other sums due under this Lease, any obligation set forth in Exhibit B, any obligation with respect to insurance pursuant to Section 4.3, any obligation to give notice with respect to extensions, expansions or otherwise, and any holdover) due to fire, act of God, governmental act or failure to act, construction moratorium or similar governmental restriction, epidemic or pandemic, strike or labor dispute (excluding strikes or labor disputes by personnel of the party claiming excuse of performance), inability to procure materials, or any cause beyond Landlord’s or Tenant’s (as applicable) reasonable control (whether similar or dissimilar to the foregoing events) (collectively, “Force Majeure”), then the time for performance of such obligation shall be excused for the period of such delay or prevention and extended for a period equal to the period of such delay or prevention.  No Force Majeure event shall delay or excuse the timely payment of all items of rent by Tenant.  Financial disability or hardship shall never constitute a Force Majeure event.
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To Landlord’s knowledge, as of the time of the execution of this Lease, Landlord is not aware of a Force Majeure event relating to Landlord’s Initial Construction.
Landlord reserves the right to stop any service or utility system, when necessary by reason of accident or emergency, or until necessary repairs have been completed; provided, however, that in each instance of stoppage, Landlord shall exercise commercially reasonable diligence to eliminate the cause thereof.  Except in case of emergency repairs, Landlord will give Tenant reasonable advance notice of any contemplated stoppage and will use reasonable efforts to avoid unnecessary interruption of Tenant’s use of the Premises by reason thereof.

4.3    INSURANCE 
4.3.1    PROPERTY INSURANCE.  Landlord agrees to maintain throughout the Term, with companies licensed and approved to write insurance in the state in which the Building is located, property insurance against direct physical loss or damage to the Building on a special cause loss form agreed amount basis in an amount equal to the physical replacement cost of the Building.  Landlord shall not be required to carry insurance with respect to any property that Tenant is required to insure under this Lease (including without limitation under Sections 5.5 and 5.6). 
4.3.2    LIABILITY INSURANCE.  Throughout the Term, Landlord agrees to maintain in a responsible company or companies commercial general liability insurance in amounts not less than Five Million Dollars ($5,000,000) per occurrence and in the annual aggregate (limits can be met with excess liability insurance policies).

4.4    HAZARDOUS SUBSTANCES
To the best knowledge of Landlord, (i) no Hazardous Substances (as defined in Section 5.2) requiring remediation or investigation under applicable environmental laws are present on the Land (or the soil, surface water or groundwater thereof) or in the Building, (ii) no underground storage tanks are present on the Land, and (iii) no action, proceeding or claim is pending or threatened regarding the Land or the Building concerning any Hazardous Substances or pursuant to any environmental law.  Landlord shall, at Landlord’s cost (and not as part of Landlord’s Operating Expenses) as and to the extent required by applicable Legal Requirements, following notice by Tenant remove or remediate (or cause the responsible party to remove or remediate) any Hazardous Substances located in the Premises or Building or on the Land that affect Tenant’s use of the Premises or portions of the Building or any common areas and facilities as to which Tenant has appurtenant rights hereunder.  The foregoing covenant shall not apply to any Hazardous Substances that exist in the Premises or the Building as a result of any act or omission of Tenant, its employees, agents, or guests, Tenant’s architect, Tenant’s contractors, or any persons acting under or through Tenant.  Landlord shall be fully liable and responsible for and indemnify and defend Tenant from any release of Hazardous Substances caused by Landlord, its agents or contractors that is in violation of applicable Legal Requirements and any Hazardous Substances on the Land or in the Building on or prior to the Term Commencement Date.  The provisions of this Section 4.4 shall survive the expiration or earlier termination of this Lease.  
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ARTICLE V
TENANT’S ADDITIONAL COVENANTS

5.1    MAINTENANCE AND REPAIR
(a)    PREMISES.  Except for damage by fire or casualty and reasonable wear and tear, Tenant shall at all times keep the Premises clean, neat, safe and in as good repair, order and condition as the same are at the beginning of the Term or may be put in thereafter.  The foregoing shall include without limitation Tenant’s obligation to maintain floors and floor coverings, to paint and repair walls and doors, to replace and repair ceiling tiles, interior glass (and exterior glass if such damage or repair is necessitated by the Tenant’s negligence or willful misconduct), interior lights and light fixtures, drains and the like.  This Lease addresses the respective obligations of Landlord and Tenant for maintenance, repairs and replacements, and, to the fullest extent permitted by law, each of Tenant and Landlord waives the provisions of M.G.L. c. 186, §19.
(b)    SUPPLEMENTAL EQUIPMENT.  Portions of the Premises may be served by a supplemental air conditioning unit, hot water heater, or other equipment installed by or on behalf of Tenant, a supplemental air conditioning unit for the supply of cool air to a server room in the Premises, a supplemental hot water heater to serve the Tenant’s lunchroom sink, or other supplemental equipment may be installed for Tenant’s use at the Premises subject to the terms and provisions of this Lease (collectively, “Supplemental Equipment”).  Landlord makes no representation or warranty with respect to any Supplemental Equipment, including without limitation as to its condition or suitability for Tenant’s uses.  Without limiting the generality of the foregoing, Tenant acknowledges and agrees that Landlord shall have no obligation or liability with respect to any Supplemental Equipment, and Tenant shall be solely responsible for all Supplemental Equipment (including, without limitation, for insurance, safety and maintenance) and for any costs incurred or damage to the Building caused by the installation or operation of the Supplemental Equipment.  Tenant shall be obligated to contract with a third party to maintain the Supplemental Equipment as per the manufacturer’s standard maintenance guidelines, which third party shall be reasonably approved by Landlord.  Tenant shall pay the costs of operating the Supplemental Equipment (including without limitation the cost of electricity and water) and shall reimburse the Landlord therefor as Additional Rent upon demand.  If for any reason any Supplemental Equipment ceases to operate, needs maintenance or repair or is otherwise unavailable, then Landlord shall permit Tenant (without any obligation on the part of Tenant to do so) to maintain, repair or install a replacement for such Supplemental Equipment at Tenant’s sole cost and expense subject to all applicable terms and provisions of this Lease, including without limitation Section 5.9.  At the expiration of the Term, such Supplemental Equipment shall remain in the Premises and shall automatically become the property of Landlord, and Tenant shall, if requested by Landlord, sign documentation confirming conveyance of the Supplemental Equipment.

5.2    USE, WASTE AND NUISANCE
Throughout the Term, Tenant shall use the Premises for the Permitted Uses only, and shall not use the Premises for any other purpose.  Tenant shall not injure, overload, deface or commit waste in the Premises or any part of the improvement on the Land, nor permit the 
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emission therefrom of any objectionable noise, light or odor, nor use or permit any use of the Premises which is contrary to law or ordinance or which is liable to invalidate or increase the premium for any insurance on the Building or its contents or which is liable to render necessary any alterations or additions in the Building, nor obstruct in any manner any portion of the Building.  If Tenant’s use of the Premises results in an increase in the premium for any insurance on the Building or the contents thereof (or would result in such an increase if the Landlord were not self-insuring), Landlord shall notify Tenant of such increase and Tenant shall pay same as Additional Rent.  Landlord may from time to time adopt appropriate systems and reasonable procedures for the security or safety of the Building, its occupants, entry and use, or its contents, provided that Tenant shall have access to the Building and Premises 24 hours per day, 7 days a week and further provided Landlord enforces the same in a non-discriminatory manner and the same do not increase Tenant’s obligations hereunder and/or do not derogate from Tenant’s rights hereunder.  Tenant, Tenant's agents, employees, contractors, guests and invitees shall comply with Landlord's reasonable requirements relative thereto.
Tenant shall not without Landlord’s prior written consent keep, store, or use any substances or materials designated as, or containing components now or hereafter designated as, hazardous, dangerous, toxic or harmful and/or subject to regulation under any federal, state or local law, regulation or ordinance (“Hazardous Substances”) in, on, under or about the Premises or Building except for ordinary cleaning and office supplies used and stored in accordance with applicable law.  With respect to any Hazardous Substance kept, stored or used with Landlord’s consent, Tenant shall:  (i) not permit any such Hazardous Substance to escape, be released, or be disposed of in, or about the Premises, Building, or Land, (ii) promptly, timely and completely comply with all federal, state or local governmental requirements concerning such Hazardous Substances, including without limitation, use, sale, transportation, generation, treatment, disposal, reporting and record keeping, and (iii) within ten (10) Business Days of Landlord’s request, provide evidence satisfactory to Landlord of Tenant’s compliance with all applicable federal, state or local laws, regulations or ordinances.  Without limitation, Hazardous Substances shall include those described in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601 et seq., the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §6901 et seq., the Massachusetts Hazardous Waste Management Act, as amended, M.G.L. Chapter 21C, and the Massachusetts Oil and Hazardous Material Release Prevention Act, as amended, M.G.L. Chapter 21E, and the regulations adopted under these acts.  In addition, Tenant shall execute affidavits, representations and the like from time to time at Landlord’s request concerning Tenant’s best knowledge and belief regarding the presence of Hazardous Substances on the Premises.
If any governmental agency shall ever require testing to ascertain whether or not there has been any release of Hazardous Substances (x) in the Building (first occurring after the Term Commencement Date) or (y) that has been caused by Tenant or any party acting by, through or under Tenant (including, without limitation, any employee, agent, contractor or invitee of Tenant), then the reasonable costs thereof shall be reimbursed by Tenant to Landlord upon demand as Additional Rent if such requirement is the result of Tenant’s use or occupancy of the Premises.  Any and all costs incurred by Landlord in connection with Landlord’s monitoring of Tenant’s compliance with this Section 5.2, including Landlord’s attorneys’ fees and costs, shall be Additional Rent and shall be due and payable to Landlord within thirty (30) days of 
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Landlord’s demand.  Tenant shall be fully and completely liable to Landlord (either with or without negligence) for any and all cleanup costs and expenses and any and all other charges, expenses, fees, fines, penalties (both civil and criminal) and costs imposed with respect to Tenant’s use, disposal, transportation, generation and/or sale of, or Tenant’s causing or permitting the escape, disposal or release, of any biologically or chemically active or other Hazardous Substance.  In all events, Tenant shall indemnify Landlord as provided in Section 5.5 from any release of Hazardous Substances in the Premises occurring while Tenant is in possession (unless the same is caused by the negligence of Landlord or any employee, contractor or agent of Landlord), or elsewhere if caused by Tenant or persons acting under Tenant.  The provisions of this Section 5.2 shall survive the expiration or earlier termination of this Lease.
Landlord shall deliver the Building at its sole cost and expense with no less than a Silver certification under the Leadership in Energy and Environmental Design (“LEED”) Green Building Rating System administered by the U.S. Green Building Council.  Landlord shall diligently and timely undertake all filings and procedures required to maintain the LEED certification with respect to the Building, the costs of which may be included in Operating Expenses in accordance with Section 2.6.2 hereof.
Tenant agrees that, throughout the Term of this Lease (as the same may be extended) Tenant shall reasonably cooperate with Landlord and, to the extent reasonably practicable, comply with energy efficient and environmentally sustainable practices (collectively, the “Sustainability Policy”) for the Building, including, without limitation, all monitoring and data collection, maintenance, access, documentation and reporting requirements set forth therein; provided that Tenant has first received written notice of such Sustainability Policy standards from the Building Manager.  Tenant will make available to Landlord, within ten (10) Business Days following Landlord’s written request, any information in Tenant’s possession or control concerning matters necessary or desirable in Landlord’s efforts to obtain or maintain Green Certification, subject to Landlord’s obligation to keep such information confidential pursuant to the terms and conditions of the Lease.  Landlord will make available to Tenant, within ten (10) Business Days following Tenant’s written request, any information in Landlord’s possession or control concerning matters necessary or desirable in Tenant’s efforts to obtain or maintain Green Certification, subject to Tenant’s obligation to keep such information confidential pursuant to the terms and conditions of the Lease.

5.3    COMPLIANCE WITH LAW
Tenant shall use the Premises only as permitted under federal, state, and local laws, regulations and orders applicable from time to time, including without limitation municipal by-laws, land use and zoning laws, environmental laws and regulations (as set forth in Section 5.2 above) and occupational health and safety laws, and shall procure all approvals, licenses and permits necessary therefor (collectively, “Legal Requirements”), in each case giving Landlord true and complete copies of the same and all applications therefor.  Tenant shall promptly comply with all present and future laws applicable to Tenant’s particular use of the Premises (and not applicable to the Building as a whole) or Tenant’s signs thereon, foreseen or unforeseen, and whether or not the same necessitate structural or other changes or improvements to the Premises or interfere with its particular use and enjoyment of the Premises, and shall comply with all requirements reasonable in light of the use Tenant is making of the Premises of 
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insurance inspection or rating bureaus having jurisdiction.  If Tenant’s use of the Premises results in any increase in the premium for any insurance carried by Landlord, then upon Landlord’s notice to Tenant of such increase Tenant shall pay the same to Landlord within sixty (60) days after demand as Additional Rent.  Tenant shall bear the sole risk of all present or future laws affecting the Premises or appurtenances thereto (except for any costs for which Landlord is liable pursuant to Section 2.6.3(xii)), and, except as aforesaid, Landlord shall not be liable for (nor suffer any reduction in any rent on account of) any interruption, impairment or prohibition affecting the Premises or Tenant’s use thereof resulting from the enforcement of laws.
To Landlord’s actual knowledge, Landlord has not received any written notice from any governmental authority of any uncured violation of any applicable zoning, fire codes, and other federal, state, and local rules, regulations, law statutes, and ordinances, including, but not limited to, the Americans with Disabilities Act.

5.4    RULES AND REGULATIONS
Tenant shall conform to all reasonable non-discriminatory rules and regulations now or hereafter promulgated from time to time by Landlord (to the extent that copies thereof are delivered to Tenant) for the care and use of the Premises and the Building and the Parking Facilities serving the Building, including but not limited to rules and regulations relating to the conservation of energy and the initial Rules and Regulations attached to this Lease as Exhibit E and those set forth at www.hobbsbrook.com.  In no event may any of Landlord’s rules and regulations, including those referenced in Sections 2.2.1, 2.2.2, 2.2.3, 2.7 and 5.2, (i) materially increase Tenant’s obligations and/or derogate from Tenant’s rights under this Lease, or (ii) be applied in a discriminatory manner by Landlord, and in the event of a conflict between this Lease and any rules and regulations now or hereinafter promulgated, this Lease shall control.

5.5    INDEMNIFICATION AND INSURANCE
5.5.1    INDEMNIFICATION.  Tenant shall save Landlord, its mortgagees and its direct and indirect owners, and the managers, affiliates, directors, officers, trustees, agents, employees, property management companies, attorneys, and independent contractors of any of the foregoing (collectively, the “Indemnitees”) harmless and indemnified (and shall defend the Indemnitees with counsel reasonably approved by the Indemnitees) from and against all claims, losses, costs, damages, liabilities and expenses of whatever nature, whether in law or equity, and/or arising in whole or in part out of any injury, loss, theft, accident or damage to any person or property while on, in or about the Premises, or out of any condition within the Premises, to the extent not due to the negligence or willful misconduct of the Indemnitees, and to any person or property anywhere resulting from any act, omission, neglect or default of Tenant or any sublessee or any of their employees, agents, managers, officers, directors, members, trustees, independent contractors or invitees or of Tenant or any sublessee or any person acting under Tenant or any sublessee, and/or arising in whole or in part out of the use or occupancy of the Premises by Tenant, or anyone claiming by, through or under Tenant, or of any business conducted therein by Tenant, or anyone acting by, through or under Tenant.  In addition to the foregoing, if any person not a party to this Lease shall institute any other types of action against Tenant in which Indemnitees involuntarily and/or without cause, shall be made a party defendant(s), then Tenant shall indemnify, hold harmless and defend the Indemnitees (with counsel reasonably approved by Indemnitees) from all liabilities by reason thereof.  This indemnity and hold harmless agreement shall include 
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indemnity against all losses, costs, damages, expenses and liabilities incurred in or in connection with any such claim or any proceeding brought thereon, and the defense thereof, including, without limitation, reasonable attorneys’ fees and costs at both the trial and appellate levels.  This indemnity shall not require payment as a condition precedent to recovery.  Tenant shall pay all costs and expenses including reasonable attorneys’ fees associated with enforcement of the provisions of this Section 5.5.1. The parties acknowledge that except as expressly set forth herein, including, without limitation, as set forth in Section 8.1 and Section 5.2, Tenant shall not be liable under this Lease for indirect or consequential damages.  The provisions of this Section 5.5.1 shall survive the expiration or earlier termination of this Lease. 
Except as may be provided in Section 4.2 and Section 5.6 and subject to the limitations elsewhere set forth in this Lease, Landlord shall indemnify and hold Tenant harmless from and against third party claims against Tenant for damage to property or injuries to persons while on or in the common areas of and/or serving the Building to the extent due to Landlord’s negligence or willful misconduct.  The provisions of this Section 5.5.1 shall survive the expiration or earlier termination of this Lease.
5.5.2    INSURANCE.  Throughout the Term (and such further time as Tenant or any person claiming through Tenant occupies any part of the Premises), and during any time Tenant or any person claiming through Tenant enters the Premises, Tenant shall maintain the insurance required under this Lease, written on an occurrence basis, with responsible companies approved by Landlord and rated A-/VII or greater by AM Best (or such other rating as Landlord may, from time to time, reasonably require) and which are licensed in the state in which the Building is located.  All insurance provided by Tenant shall be subject to Landlord’s prior approval, in its reasonable discretion.  Tenant’s insurance shall include, but not be limited to:
1.Commercial General Liability (“CGL”): CGL coverage to be provided on ISO Form CG 00 01 (or its equivalent) covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than those specified in Section 1.1 for Commercial General Liability Insurance (as such amounts may, from time to time, be increased by Landlord in its reasonable discretion).
2.Property Damage Insurance.  “Special Cause of loss” property insurance on a replacement cost agreed amount basis insuring against loss or damage to Tenant’s Property as defined in Section 5.6.  Such coverage shall not exclude the perils of sprinkler leakage, flood, earthquake, windstorm (named or unnamed), rupture of water pipes, earthquake and theft.  This insurance shall cover the rents payable to Landlord in a twelve month period basis as a result of business interruption.
3.Business Automobile Liability: Business Automobile liability coverage to be provided on ISO Form Number CA 0001 (or its equivalent) covering, Code 1 (any auto), or if Tenant has no owned autos, Code 8 (hired) and 9 (non-owned).  The limits of liability shall be no less than $1,000,000 combined single limit per accident for bodily injury and property damage.
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4.Workers’ Compensation & Employer’s Liability:  Workers’ Compensation insurance to be provided in statutorily required amounts.  Employer’s Liability limits shall not be less than $1,000,000/$1,000,000/$1,000,000.
5.Excess (or Umbrella) Liability.  Excess (or Umbrella) Liability may be provided to achieve the required CGL, Business Automobile and Employer’s Liability limits.  Such excess (or umbrella) insurance shall be provided on a follow-form excess basis over the underlying coverages.
6.Social Host Liquor Liability.  Tenant agrees that neither its CGL nor excess liability (or umbrella) policies shall exclude social host liquor liability coverage (nor shall such coverage be sub-limited).  Nothing in this Section shall be interpreted as permitting Tenant to host functions or serve alcohol without Landlord’s prior written approval.
Tenant’s CGL insurance may be provided by a combination of a primary and an umbrella or excess liability policy, provided that such excess policy shall be on a “following form” including a “drop down” feature in case the limits of the primary policy are exhausted and the primary policy shall not be less than $1 million for any one accident or occurrence.  Upon Landlord’s request, Tenant shall provide a copy of its CGL policy complying with the requirements of this Lease.
Any self-insured retention or deductible within Tenant’s insurance shall be borne solely by Tenant.  Tenant’s insurance shall not include a self-insured retention or deductible in excess of $100,000.00 without prior written approval by Landlord.  Any Tenant insurance policy that includes any self-insured retention must provide, or be endorsed, that the self-insured retention may be satisfied by either Tenant or Landlord (which shall be deemed a right to cure by Landlord pursuant to Section 8.4 of the Lease and subject to reimbursement by Tenant as Additional Rent).  All self-insured retention must be noted on the certificate of insurance provided by Tenant.
Indemnitees and other parties as designated by Landlord shall from time to time, upon Landlord’s request, be covered as additional insureds on a primary, non-contributory basis on Tenant’s CGL and any excess (or umbrella liability) policies.  The additional insured coverage in the CGL and excess (or umbrella) policies shall be on forms as broad as ISO forms CG 20 10 07 04 and CG 20 37 07 04 and such coverage may be provided in the form of existing policy provisions or one or more endorsements.  If any of Tenant’s policies provide greater limits than the coverage required by Landlord, then the additional insureds shall be entitled to, or to share in, the full limits of such policies.  Any insurance or self-insurance maintained by Landlord, the Indemnitees or any other additional insureds shall be excess of the Tenant’s insurance and shall not contribute with it.  Each of Tenant’s policies shall be written on an “occurrence” basis and shall include a waiver of subrogation clause or endorsement in accordance with Section 8.11.
Landlord may, in its reasonable discretion or as would be required from time to time by reasonably prudent owners of comparable first-class office and laboratory buildings in the market area in which the Building is located, increase and change from time to time the amount and types of insurance coverages required to be maintained by Tenant.  A duly executed certificate or certificates for such policies of insurance in form satisfactory to Landlord (which shall attach, among other things, all required additional insured, primary and non-contributory and waiver of subrogation amendatory endorsements or policy provisions).  Satisfactory 
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evidence of the payment of the premium thereon, if requested by Landlord, shall be deposited with Landlord and other parties designated by Landlord at the beginning of the Term and, throughout the Term of the Lease, upon renewals of such policies, not less than thirty (30) days prior to the expiration of the term of such coverage.  The failure of Landlord to request or obtain the required documents shall not waive the Tenant’s obligation to provide them.  Tenant shall use reasonable efforts to provide Landlord with at least twenty (20) days written notice (or ten (10) days for non-payment of premium) before any policy is canceled.
If Tenant fails to comply with any requirements to obtain and maintain insurance under this Lease, Landlord may obtain such insurance on behalf of Tenant and may keep the same in effect, and Tenant shall pay Landlord, as Additional Rent, the premium cost thereof upon demand.  The minimum limits of polices of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease.  The provisions of this Section 5.5.2 shall survive the expiration of the Term or earlier termination of this Lease.

5.6    TENANT’S PROPERTY
All furnishings, fixtures, equipment, effects and property of Tenant and of all persons claiming through Tenant which from time to time may be on the Premises or elsewhere in the Building or in transit thereto or therefrom (“Tenant’s Property”) shall be at the sole risk of Tenant.  Tenant’s Property expressly includes all business fixtures and equipment, including without limitation any Tenant security or access control systems installed for the Premises, filing cabinets and racks, removable cubicles and partitions, kitchen equipment, computers and related equipment, raised flooring, supplemental cooling equipment, audiovisual and telecommunications equipment, non-building standard signage, and other tenant equipment installations, in each case including related conduits, cabling, and brackets or mounting components therefor and any connectors to base building systems and in each case whether installed or affixed in or about the Premises, in building core areas, or elsewhere in the Project.  Regardless of any cause whatsoever, no part of any loss or damage to Tenant’s Property (or those claiming through Tenant) is to be charged to or be borne by Landlord.  The parties acknowledge that damage or destruction may result from acts of cleaning personnel and employees of other independent contractors of Landlord working in and around the Premises and that Tenant shall bear the risk and cost thereof unless Landlord has been negligent in the selection or retention of such persons.  Nothing herein shall derogate from and/or waive any of Landlord’s repair, maintenance and warranty obligations as specifically set forth in this Lease.

5.7    ENTRY FOR REPAIRS AND INSPECTIONS
Tenant shall permit Landlord and its agents to enter and examine the Premises at reasonable times and upon at least 24-hours’ notice (except in an emergency, in which case no notice shall be required) and, if Landlord shall so elect, to make any repairs or replacements Landlord may deem necessary or desirable, to perform work on or in portions of the Building accessible from the Premises, to remove at Tenant’s expense any alterations, additions, signs or the like not consented to in writing, and to show the Premises to prospective tenants during the twelve (12) months preceding the expiration of the Term and to prospective purchasers and mortgagees at all times.  In case of an emergency in the Premises or in the Building, Landlord or its representative may enter the Premises (forcibly, if necessary) at any time to take such measures as may be needed to deal with such emergency.  Landlord shall use commercially 
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reasonable efforts to minimize interference with Tenant’s use of the Premises for the Permitted Uses during any such entry.  Notwithstanding anything to the contrary set forth in this Section 5.7, Tenant may designate reasonable areas of the Premises as “Secured Areas” should Tenant require such Secured Areas for the purpose of securing certain valuable property or confidential information.  In connection with the foregoing, Landlord shall not enter such Secured Areas except in the event of an emergency or as provided in the next sentence.  Landlord need not clean any area designated by Tenant as a Secured Area and shall only maintain or repair such Secured Areas to the extent that such repair or maintenance is (i) required in order to maintain and repair the Building structure and/or the Building systems; (ii) required by applicable law, or (iii) in response to specific requests by Tenant and in accordance with a schedule reasonably designated by Tenant, subject to Landlord’s reasonable approval.

5.8    ASSIGNMENT, SUBLETTING
Tenant, voluntarily or involuntarily, shall not assign this Lease, or sublet, license, mortgage or otherwise encumber or convey the Premises or any portion thereof or any interest therein, or permit the occupancy of all or any portion of the Premises other than by the Tenant (all or any of the foregoing actions are referred to as “Transfers”, and all or any of assignees, transferees, licensees, and other such parties are referred to as “Transferees”) without obtaining, on each occasion, the prior written consent of the Landlord, which consent shall not be unreasonably withheld or delayed.  A Transfer shall include, without limitation, any transfer of Tenant’s interest in this Lease by operation of law, merger or consolidation of Tenant in to any other entity, and the transfer or sale of a controlling interest in Tenant, whether by transfer or sale of its capital stock, equity interests, or otherwise.  Any Transfer without such consent shall be null and void and of no effect whatsoever.  Notwithstanding the provisions of this Section 5.8, this Lease may be assigned, or the Premises may be sublet, in whole or in part, after prior notice to Landlord but without consent of the Landlord and without any termination right of the Landlord being applicable thereto, (i) to any corporation or other entity into or with which Tenant may be merged or consolidated or to any corporation or entity to which all or substantially all of the Tenant’s assets and/or stock will be transferred, or (ii) to any corporation or other entity which is an affiliate, subsidiary, parent or successor of Tenant, provided in all such cases the surviving corporation or entity shall provide reasonable evidence that it has a creditworthiness at least equal to the greater of the net worth of Tenant (A) as of the date of such corporate transaction, and (B) as of the date of this Lease and shall agree in writing with the Landlord to be bound by all of the terms and conditions of this Lease (all of the foregoing being referred to as a “Permitted Transfer”).  Unless Landlord’s consent specifically provides otherwise with respect to a particular proposed Transferee, Tenant shall not offer to make or enter into negotiations with respect to a Transfer to any of the following:  (1) a tenant in the Building and Landlord has space available for such proposed tenant as of the proposed effective date of such transfer; (2) any party with whom Landlord within the six (6) months has given a written proposal for space in the Building; (3) any entity owned by, owning, or affiliated with, directly or indirectly, any tenant or party described in clauses (1) or (2) hereof; or (4) any party which would be of such type, character or condition as to be inappropriate, in Landlord’s reasonable judgment, as a tenant for a first class office building.  Tenant’s request for consent to a Transfer shall include a copy of the proposed Transfer instrument together with a statement of the proposed Transfer in detail satisfactory to Landlord, together with reasonably detailed 
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financial, business and other information about the proposed Transferee, including Transferee’s proposed Hazardous Substances List, if applicable.  If Tenant intends to Transfer fifty percent (50%) or more of the Premises and such Transfer is not a Permitted Transfer, then Tenant shall provide Landlord with written notice of its intention to do so and Landlord shall have the option (but not the obligation) to terminate the Lease with respect to such a Transfer effective upon the date that the proposed Transfer was to be effective after Landlord receives such notice from Tenant and continuing for the proposed term of such Transfer by giving Tenant notice of such termination within thirty (30) days after Landlord’s receipt of such notice from Tenant.  Tenant may withdraw its notice to Transfer by notifying Landlord within five (5) Business Days after Landlord has given Tenant notice of such termination, in which case the Lease shall not terminate but shall continue.  If Tenant makes a Transfer hereunder which is not a Permitted Transfer, and if the aggregate rent and other charges payable to Tenant under and in connection with such Transfer (including without limitation any amounts paid for leasehold improvements or on account of Tenant’s costs associated with such Transfer) exceed the sum of (x) Rent and other charges paid hereunder with respect to the space in question and (y) Tenant’s reasonable out-of-pocket costs, including without limitation, broker commissions, legal fees, free rent periods or other tenant allowances and any construction costs incurred by Tenant, to procure the sublease, Tenant shall pay to Landlord, as Additional Rent, Permitted Transfers excepted, fifty percent (50%) of the amount of such excess within thirty (30) days after Tenant’s receipt thereof.  No requested consent to a Transfer, in the case of proposed sublease or assignment of the Lease, shall be deemed given unless and until Landlord, Tenant and the proposed Transferee shall have executed and delivered a consent agreement in form and substance satisfactory to Landlord.  Landlord will not unreasonably withhold or condition its consent and will grant or deny such consent within thirty (30) days after receipt of all information reasonably required to evaluate a Transfer.  Failure of Landlord to so grant or deny such consent within five (5) Business Days following a second written request from Tenant shall be deemed a consent provided that Tenant’s second written request: (i) includes the following legend in capital letters on both the envelope and letter:  “FAILURE TO RESPOND TO THIS REQUEST WITHIN FIVE (5) BUSINESS DAYS SHALL BE DEEMED A CONSENT BY LANDLORD TO THIS REQUEST.”, and (ii) is delivered to Landlord pursuant to Landlord’s address set forth in Section 1.1 (or such other address as Landlord may designate pursuant to Section 8.3) to the attention of Senior Counsel, Director of Asset Management and General Manager.
Tenant shall pay to Landlord, as Additional Rent, Landlord’s reasonable legal fees and other expenses incurred in connection with any proposed Transfer, including fees for review of documents and investigations of proposed Transferees and supervisory fees including without limitation a fee of one percent (1%) of hard and soft costs associated with any alterations performed in connection with such Transfer.  Notwithstanding any such Transfer, the original Tenant named herein shall remain directly and primarily obligated under this Lease.
If Tenant enters into any Transfer including a Permitted Transfer with respect to the Premises (or any part thereof), such Transferee shall be liable, jointly and severally, with Tenant, to the extent of the obligation undertaken by or attributable to such Transferee, for the performance of Tenant’s agreements under this Lease arising on and after the date of such Transfer (including payment of Rent under the Transfer), and every Transfer shall so provide, without relieving or modifying Tenant’s liability hereunder.  The foregoing provision shall be 
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self-operative, but in confirmation thereof, such Transferee (other than a Transferee in a Permitted Transfer) shall execute and deliver such instruments as may be reasonably required by Landlord to acknowledge such liability.  If Tenant is in default after applicable notice and cure periods, Landlord may collect Rent from the Transferee and apply the net amount collected to the Rent and other charges hereunder, but no such assignment or collection shall be deemed a waiver of the provisions of this Section 5.8, or the acceptance of the Transferee as a tenant, or a release of Tenant from direct and primary liability for the further performance of Tenant’s covenants hereunder.  The consent by Landlord to a particular Transfer shall not relieve Tenant from the requirement of obtaining the consent of Landlord to any further Transfer.
Notwithstanding anything contained in this Section 5.8 to the contrary, Tenant shall be permitted from time to time to permit consultants or other individuals performing services related to Tenant’s business at the Premises (“Approved Users”) to occupy space within the Premises if and so long as such Approved Users are related to Tenant’s business at the Premises, provided that (a) Tenant does not separately demise such space; (b) the Approved Users shall not occupy, in the aggregate, more than 5% of the rentable area in the Premises; (c) the Approved Users occupy space in the Premises for the Permitted Uses and for no other purpose; and (d) in the event any Approved Users shall use or occupy the Premises for eight (8) or more weeks, Tenant shall notify Landlord, in writing, of the identity of any such Approved Users prior to occupancy of any portion of the Premises by such Approved Users.  If any Approved Users occupy any portion of the Premises as described herein, it is agreed that (i) the Approved Users must comply with all provisions of this Lease, and a default by any Approved Users shall be deemed a default by Tenant under this Lease; (ii) all notices required of Landlord under this Lease shall be forwarded only to Tenant in accordance with the terms of this Lease and in no event shall Landlord be required to send any notices to Approved Users; (iii) in no event shall any use or occupancy of any portion of the Premises by any Approved User release or relieve Tenant of any of its obligations under this Lease; (iv) in no event shall occupancy of any portion of the Premises by Approved Users be deemed to create a landlord/tenant relationship between Landlord and such Approved Users; and, (v) in all instances, Tenant shall be considered the sole tenant under the Lease notwithstanding the occupancy of any portion of the Premises by the Approved Users.

5.9    ALTERATIONS
Except for Tenant’s Initial Construction, which shall be governed by the Work Letter attached hereto as Exhibit B, Tenant shall make no alterations, additions or improvements to the Premises (any of the foregoing being “Tenant Work”) without the prior written consent of Landlord and only in accordance with the requirements of this Lease and Landlord’s rules and regulations under Section 5.4.  Notwithstanding the foregoing, after notice to Landlord but without any requirement for Landlord’s consent, Tenant may perform (i) cosmetic or decorative alterations in the Premises (including repainting and installing carpet) and (ii) other alterations which do not affect the Building’s structure or base building systems and which cost no more than $300,000 in the aggregate for a single project, provided that such alterations (A) do not require a building permit in order to complete, and (B) that all such alterations are made in accordance with the requirements of this Lease, including without limitation this Section 5.9.  Tenant shall obtain all state, local and other necessary permits before undertaking any such 
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alterations, additions or improvements and shall carry such insurance (naming the Indemnitees as additional insureds) and in the event of a material adverse change in Tenant’s financial condition following the effective date of the Lease, Landlord shall be entitled to require reasonable assurances for the payment and performance of any Tenant Work.  At the expiration or earlier termination of the Lease, Tenant shall remove any Specialty Alterations (as hereinafter defined) made during the Term for which such removal was made a condition at the time such consent was given to Tenant.  In connection with the design and construction of any Tenant Work, Tenant shall comply with Landlord’s then existing construction project rules and regulations, which Tenant shall be required to obtain from Landlord prior to the commencement of any Tenant Work.  Prior to commencing work, Tenant’s contractors shall provide certificates of insurance to Landlord evidencing that such contractors have sufficient insurance to complete the portion of the Tenant Work for which they are responsible, in such form and amounts as may be required by Landlord in advance.  Any alterations, additions and improvements to the Premises, except movable furniture and trade fixtures, shall belong to Landlord.  All alterations, additions and improvements to the Premises shall be at Tenant’s sole cost and Tenant shall pay Landlord a construction oversight fee (the “Oversight Fee”) equal to (i) three percent (3%) of the hard costs of Tenant’s alterations in an instance where Landlord performs such alterations on Tenant’s behalf, or (ii) two percent (2%) of the hard costs of Tenant’s alterations in an instance where Tenant performs such alterations, in each instance such “hard costs” shall include, without limitation the costs of the construction contract and any change orders, but shall exclude all architectural, mechanical, electrical and structural design fees, all costs of insuring Tenant’s alterations, and all costs of obtaining permits, inspections required by governmental authorities in connection with Tenant’s alterations, and Tenant shall reimburse Landlord for the reasonable out-of-pocket expenses (e.g., for architectural and mechanical third party plan review, special services requested by Tenant, etc.) actually incurred by landlord.  Tenant shall pay, when due, the entire cost of all Tenant Work so that the Premises shall always be free of liens for labor or materials or professional services by design professionals.  If any mechanic’s lien (which term shall include all similar liens relating to the furnishing of labor and materials and professional services by design professionals) is filed against the Building which is attributable to Tenant, its agents, employees, contractors, or persons working under Tenant’s direction or control, then Tenant, upon obtaining notice thereof, shall give Landlord immediate notice of such lien and shall discharge the same by payment or filing any necessary bond within ten (10) Business Days after Tenant has notice (from any source) of such lien.  Landlord’s approval of the construction documents shall signify Landlord’s consent to the work shown thereon only and Tenant shall be solely responsible for any errors or omissions contained therein.  Landlord’s approvals under this Section 5.9 shall not be unreasonably withheld, conditioned or delayed, except to the extent any Tenant Work shall affect the base Building systems or be visible from outside of the Premises, in which case Landlord’s approval may be withheld in Landlord’s sole discretion.
Tenant shall require that Tenant’s contractors be properly covered by liability and property insurance (including builder’s risk) and other insurance based on the nature of the hazards presented by contractors hired by Tenant.  Such insurance coverages shall meet the requirements established by Landlord from time to time.  All additional insured and waiver of subrogation provisions required of Tenant in favor of Landlord in this Lease, and other parties so designated, shall be provided by Tenant’s contractors in the same manner.  Prior to commencing any work, 
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Tenant shall provide certificates of insurance to Landlord evidencing that such contractors have sufficient insurance to complete the portion of the Tenant Work for which they are responsible, in such form and amounts as may be reasonably approved by Landlord in advance.
Landlord will grant or deny any required consent under this Section 5.8 within twenty (20) days after receipt of all information reasonably required to evaluate such alterations or improvements.  Failure of Landlord to so grant or deny such consent within five (5) Business Days following a second written request from Tenant shall be deemed a consent provided that Tenant’s second written request: (i) includes the following legend in capital letters on both the envelope and letter:  “FAILURE TO RESPOND TO THIS REQUEST WITHIN FIVE (5) BUSINESS DAYS SHALL BE DEEMED A CONSENT BY LANDLORD TO THIS REQUEST.”, and (ii) is delivered to Landlord pursuant to Landlord’s address set forth in Section 1.1 (or such other address as Landlord may designate pursuant to Section 8.3) to the attention of Senior Counsel, Director of Asset Management and General Manager.

5.10    SURRENDER
At the expiration of the Term or earlier termination of this Lease, without the requirement of any notice, Tenant shall peaceably surrender the Premises including all alterations and additions thereto and all replacements thereof, including carpeting, any water or electricity meters, and all fixtures and partitions, in any way bolted or otherwise attached to the Premises (which shall become the property of Landlord) except for such alterations and additions as Landlord has directed Tenant to remove when Tenant requested Landlord’s approval for such alterations and additions (other than cabling, which Tenant shall always be required to remove unless Landlord agrees in writing that Tenant does not need to remove cabling), and Tenant shall leave the Premises and improvements in the condition in which the same are required to be maintained under Section 5.1, subject to reasonable wear and tear and casualty.  Tenant shall, at the time of termination, remove the goods, effects and fixtures which Tenant is directed or permitted to remove in accordance with the provisions of this Section 5.10, making any repairs to the Premises and other areas necessitated by such removal and leaving the Premises in the condition otherwise required by this Section 5.10.  Should Tenant fail to remove any of such goods, effects, and fixtures within ten (10) Business Days after notice by Landlord, the same shall be deemed abandoned by Tenant and may be disposed of by Landlord at Tenant’s expense.  In the event that Landlord terminates this Lease pursuant to Section 7.1 and re-enters and possesses the Premises in accordance with the terms of this Lease then Landlord may, without notice, store Tenant’s personal property (and those of any person claiming under Tenant) at the expense and risk of Tenant or, if Landlord so elects, Landlord may sell such personal property in accordance with the previous sentence and apply the net proceeds to the earliest of installments of Rent or other charges owing Landlord.

5.11    PERSONAL PROPERTY TAXES
Tenant shall pay promptly when due all taxes (and charges in lieu thereof) imposed upon Tenant’s personal property in the Premises, (including, without limitation, fixtures and equipment), no matter to whom assessed.  If the Tenant Work (but not the Tenant’s Initial Construction), whether installed and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property tax purposes at a valuation higher than the valuation at which improvements in other space in the 
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Building are assessed, then the real property taxes and assessment levied against Landlord by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be paid promptly when due.  If the records of the tax assessor are available and sufficiently detailed to serve as a basis for determining whether said Tenant Work are assessed at a higher valuation, such records shall be binding on both Landlord and Tenant; otherwise the actual cost of construction shall be the basis for such determination.

5.12    SIGNS
No sign, name, placard, advertisement or notice visible from the exterior of the Premises shall be inscribed, painted or affixed by Tenant on any part of the Building and/or within the Premises, without the prior written approval of Landlord.  All signs or letterings on doors, or otherwise, approved by Landlord, shall be inscribed, painted or affixed by a person reasonably approved by Landlord and at the sole cost and expense of Tenant.  Notwithstanding the foregoing, provided Tenant maintains at least 130,835 rentable square feet throughout the Term, and subject to the City of Waltham’s review, approval and permitting process and local zoning bylaws pertaining to the Building (a) Tenant shall have the right to install one sign on the southwest exterior façade of the Building and a monument sign (both as set forth on Exhibit A-2), all at Tenant’s expense which may include use of the Improvement Allowance, subject to Landlord’s prior reasonable approval of the design, dimensions and location on the south Building only, and subject to compliance with all applicable legal requirements, including, without limitation, as to the façade sign only, the requirement to obtain all necessary permits and approvals, and (b) Landlord will provide initial main lobby, building directory, multi-tenant elevator lobby, and entry signage in Building standard size and location at Landlord’s expense.  Tenant shall keep its sign on the Building exterior in good condition and repair at Tenant’s expense.  As part of Operating Expenses, Landlord shall keep the monument sign serving the Building in good condition and repair.
Landlord will grant or deny any required consent under this Section 5.12 within twenty (20) days after receipt of all information reasonably required to evaluate such signage request.  Failure of Landlord to so grant or deny such consent within five (5) Business Days following a second written request from Tenant shall be deemed a consent provided that Tenant’s second written request: (i) includes the following legend in capital letters on both the envelope and letter:  “FAILURE TO RESPOND TO THIS REQUEST WITHIN FIVE (5) BUSINESS DAYS SHALL BE DEEMED A CONSENT BY LANDLORD TO THIS REQUEST.”, and (ii) is delivered to Landlord pursuant to Landlord’s address set forth in Section 1.1 (or such other address as Landlord may designate pursuant to Section 8.3) to the attention of Senior Counsel, Director of Asset Management and General Manager.

ARTICLE VI
CASUALTY AND TAKING

6.1    DAMAGE BY FIRE OR CASUALTY
If the Premises or any part thereof shall be damaged by fire or other insured casualty, then, subject to the last paragraph of this Section 6.1, Landlord shall proceed with diligence, subject to then applicable statutes, building codes, zoning ordinances and regulations of any 
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governmental authority, and at the expense of Landlord (but only to the extent of insurance proceeds made available to Landlord by the insurer or a mortgagee, if any, of the Building, so long as Landlord shall maintain that insurance required pursuant to Section 4.3.1 and Section 4.3.2) to repair or cause to be repaired the portion of the Premises which is not to be considered Tenant’s Property.  All repairs to and replacements of Tenant’s Property shall be made by and at the expense of Tenant.  If the Premises or any part thereof shall have been rendered unfit for use and occupation hereunder by reason of such damage, except if such damage arose due to any gross negligence or willful misconduct of Tenant or any sublessee or any of their employees, agents, managers, officers, directors, members, trustees, independent contractors or invitees or any person acting under Tenant or any sublessee, the Annual Fixed Rent and Additional Rent for Landlord’s Taxes and Landlord’s Operating Expenses or a just and proportionate part thereof, according to the nature and extent to which the Premises shall have been so rendered unfit, shall be abated until the Premises (except as to the property which is to be repaired by or at the expense of Tenant) shall have been restored as nearly as practicable to the condition in which they were immediately prior to such fire or other casualty.  Landlord shall not be liable for delays in the making of any such repairs which are due to Force Majeure, nor shall Landlord be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting from delays in repairing such damage.
Within sixty (60) days after any casualty, Landlord shall provide Tenant with Landlord’s architect’s good faith estimate of the time to complete such repairs and if such estimate (which shall be non-binding) shall be more than one hundred eighty (180) days from the date of the casualty, provided the Premises are not damaged due to any gross negligence or willful misconduct of Tenant or any sublessee or any of their employees, agents, managers, officers, directors, members, trustees, independent contractors or invitees or any person acting under Tenant or any sublessee, then Tenant may terminate this Lease by notice given to Landlord within thirty (30) days after Tenant’s receipt of Landlord’s architect’s estimate.  
If Landlord fails to commence repairs as soon as is reasonably practicable after such damage, and such failure is not due to Force Majeure, and in any event if Landlord does not commence repairs within sixty (60) days of the casualty, Tenant may elect to terminate this Lease by notice to Landlord.  If Landlord, having commenced such repair, has not completed the repair of such damage by the later of (i) one hundred eighty (180) days from the occurrence of such damage, or (ii) the date given in any Landlord’s architect’s repair period estimate under the prior paragraph (the later of such dates is referred to below as the “Outside Restoration Date”), Tenant may elect to terminate this Lease by notice to Landlord within twenty (20) days of the Outside Restoration Date, the termination to be effective not less than thirty (30) days after the date on which such termination notice is received by Landlord.  The Outside Restoration Date shall be extended for up to sixty (60) days on account of delays caused by Force Majeure.  Landlord shall not be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting from delays in repairing the damage, however if the delays continue more than sixty (60) days beyond the initial Outside Restoration Date, Tenant may elect to terminate this Lease in the manner provided above.  Notwithstanding the foregoing, if the Premises and/or the Building are damaged due to any gross negligence or willful misconduct of Tenant or any sublessee or any of their employees, agents, managers, officers, directors, 
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members, trustees, independent contractors or invitees or any person acting under Tenant or any sublessee, then Tenant shall have no rights to terminate the Lease under this paragraph.
If (i) the Premises are so damaged by fire or other casualty (whether or not insured) at any time during the last eighteen (18) months of the Term and the cost to repair such damage is reasonably estimated to exceed one-third of the total Annual Fixed Rent payable hereunder for the period from the estimated completion date of repair until the end of the Term, (ii) at any time the Building (or any portion thereof, whether or not including any portion of the Premises) is so damaged by fire or other casualty (whether or not insured) that substantial alteration or reconstruction or demolition of the Building (or a material portion thereof) shall in Landlord’s judgment be required; provided, however, in order to exercise such right Landlord shall be obligated to terminate all similarly-situated tenants, or (iii) at any time damage to the Building occurs by fire or other insured casualty and any mortgagee shall refuse to permit insurance proceeds to be utilized for the repair or replacement of such property and Landlord determines not to repair such damage, then and in any of such events, this Lease and the Term hereof may be terminated at the election of Landlord by a notice from Landlord to Tenant within sixty (60) days, or such longer period as is required to complete arrangements with any mortgagee regarding such situation, following such fire or other casualty; the effective termination date pursuant to such notice shall be not less than thirty (30) days after the day on which such termination notice is delivered to Tenant.  In the event of any termination, the Term shall expire as though such effective termination date were the date originally stipulated in Section 1.1 for the end of the Term and the Annual Fixed Rent and Additional Rent for Landlord’s Operating Expenses and Landlord’s Taxes shall be apportioned as of such date.

6.2    CONDEMNATION - EMINENT DOMAIN
In case during the Term all or any substantial part of the Premises or the Building are taken by eminent domain or Landlord receives compensable damage by reason of anything lawfully done in pursuance of public or other authority, this Lease shall terminate at Landlord’s election, which may be made (notwithstanding that Landlord’s entire interest may have been divested) by notice given to Tenant within ninety (90) days after the election to terminate arises, specifying the effective date of termination.  The effective date of termination specified by Landlord shall not be less than fifteen (15) nor more than thirty (30) days after the date of notice of such termination.  Unless terminated pursuant to the foregoing provisions, this Lease shall remain in full force and effect following any such taking, subject, however, to the following provisions.  If in any such case the Premises are rendered unfit for use and occupation and this Lease is not terminated, Landlord shall use reasonable diligence (following the expiration of the period in which Landlord may terminate this Lease pursuant to the foregoing provisions of this Section 6.2) to put the Premises, or what may remain thereof (excluding any items installed or paid for by Tenant which Tenant may be required to remove pursuant to Section 5.9), into proper condition for use and occupation and a just proportion of the Annual Fixed Rent and Additional Rent for Landlord’s Taxes and Landlord’s Operating Expenses according to the nature and extent of the injury shall be abated until the Premises or such remainder shall have been put by Landlord in such condition; and in case of a taking which permanently reduces the area of the Premises, a just proportion of the Annual Fixed Rent and Additional Rent for Landlord’s Operating Expenses and Landlord’s Taxes shall be abated for the remainder of the Term.
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If the taking of a part of the Premises substantially and adversely interferes with Tenant’s ability to continue its business operations then Tenant may terminate this Lease on written notice to Landlord given not more than thirty (30) days after such taking and effective on the earlier of:  (i) the date when title vests; (ii) the date Tenant is dispossessed by the condemning authority; or (iii) sixty (60) days following notice to Tenant of the date when vesting or dispossession is to occur.

6.3    EMINENT DOMAIN AWARD
Except for Tenant’s relocation expenses, Tenant’s Property, including equipment and leasehold improvements that Tenant is entitled to remove upon the expiration of the Term (specifically so designated by the court or authority having jurisdiction over the matter) Landlord reserves to itself any and all rights to receive awards made for damages to the Premises, the Building or the leasehold hereby created, or any one or more of them, accruing by reason of exercise of eminent domain or by reason of anything lawfully done in pursuance of public or other authority.  Tenant hereby releases and assigns to Landlord all Tenant’s rights to such awards, and covenants to deliver such further assignments and assurances thereof as Landlord may from time to time request.

ARTICLE VII
DEFAULT

7.1    TERMINATION FOR DEFAULT OR INSOLVENCY
This Lease is upon the condition that:
(a)    if Tenant shall fail to perform or observe any of Tenant’s covenants, and if such failure shall continue, (i) in the case of Rent or any sum due Landlord hereunder, for more than five (5) days in case of Annual Fixed Rent after Tenant’s receipt of written notice from Landlord or five (5) Business Days in the case of Additional Rent after Tenant’s receipt of written notice from Landlord, or (ii) in any other case, after written notice, for more than thirty (30) days (provided that if correction of any such matter reasonably requires longer than thirty (30) days and Tenant so notifies Landlord within twenty (20) days after Landlord’s written notice is given together with an estimate of time required for such cure, Tenant shall be allowed such longer period, but only if cure is begun and diligently pursued within such thirty (30) day period and such delay does not cause increased risk of damage to person or property), or
(b)    if more than two (2) notices under clause (a) hereof is given in any Lease Year (i.e., failure to pay Rent or any other sum for more than three (3) Business Days after the particular due date shall have the same effect under this clause (b) as such a notice following the first two (2) notices under clause (a) in any Lease Year), or
(c)    Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or shall be reduced or materially changed in a manner so that it does not comply with the terms of this Lease, or Landlord shall receive a notice of nonrenewal of any such insurance and Tenant shall fail to obtain replacement insurance before the expiration of the current coverage, and Tenant fails to cure the same within five (5) Business Days after Tenant’s receipt of written notice from Landlord.
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(d)    Tenant fails to execute any document required from Tenant under Section 8.2 or Article X within 5 days after the second written notice requesting such document.  
(e)    if the leasehold hereby created shall be taken on execution, or by other process of law, or if any assignment shall be made of Tenant’s Property for the benefit of creditors, or
(f)    if a receiver, guardian, conservator, trustee in bankruptcy or similar officer shall be appointed by a court of competent jurisdiction to take charge of all or any part of Tenant’s property and such appointment is not discharged within sixty (60) days thereafter or if a petition including, without limitation, a petition for reorganization or arrangement is filed by Tenant under any bankruptcy law or is filed against Tenant and the same shall not be dismissed within sixty (60) days from the date upon which it is filed, then, and in any of said cases (a) - (d), Landlord may, immediately or at any time thereafter, elect to terminate this Lease by notice of termination, by entry, or by any other means available under law and may recover possession of the Premises as provided herein.
Upon termination by notice, by entry, or by any other means available under law, Landlord shall be entitled immediately, in the case of termination by notice or entry, and otherwise in accordance with the provisions of law to recover possession of the Premises from Tenant and those claiming through or under the Tenant.  Such termination of this Lease and repossession of the Premises shall be without prejudice to any remedies which Landlord might otherwise have for arrears of Rent or for a prior breach, violation or default of the provisions of this Lease.
Tenant waives any statutory notice to quit and equitable rights in the nature of further cure or redemption, and Tenant agrees that upon Landlord’s termination of this Lease Landlord shall be entitled to re-entry and possession in accordance with the terms hereof and all Legal Requirements.  Tenant further agrees that it shall not interpose any counterclaim in any summary proceeding or in any action based in whole or in part on non-payment of Rent unless the counterclaim is a compulsory counterclaim that must be alleged in the same proceeding.

7.2    REIMBURSEMENT OF LANDLORD’S EXPENSES
In the case of termination of this Lease pursuant to Section 7.1, Tenant shall reimburse Landlord for all reasonable expenses arising out of such termination, including without limitation, all reasonable costs incurred in collecting amounts due from Tenant under this Lease (including attorneys’ fees, costs of litigation and the like); all expenses incurred by Landlord in attempting to relet the Premises or parts thereof (including advertisements, brokerage commissions, Tenant’s allowances, costs of preparing space, maintaining or preserving the Premises after Tenant default, and the like); all of Landlord’s then unamortized costs of special inducements provided to Tenant (including without limitation Rent holidays, Rent waivers, above building standard leasehold improvements and the like) and all Landlord’s other reasonable expenditures necessitated by the termination.  The reimbursement from Tenant shall be due and payable immediately from time to time upon notice from Landlord that an expense has been incurred, without regard to whether the expense was incurred before or after the termination.  The provisions of this Section 7.2 shall survive the expiration or earlier termination of this Lease.

7.3    DAMAGES
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In the event of the termination of this Lease by Landlord pursuant to Section 7.1, Landlord may elect by written notice to Tenant at any time following such termination to require Tenant to pay for loss of Rent by a lump sum payment representing the then present value of the amount of Rent which would have been paid in accordance with this Lease for the remainder of the Term minus the then present value of the aggregate fair market rent and Additional Rent payable for the Premises for the remainder of the Term following such election (if less than the Rent payable hereunder), estimated as of the date of Landlord’s election, and taking into account reasonable projections of vacancy and time required to re-lease the Premises.  (For the purposes of calculating the Rent which would have been paid hereunder for the lump sum payment calculation described herein (x) the last full year’s Additional Rent under Section 2.6 is to be deemed constant for each year thereafter, (y) the Federal Reserve discount rate (or equivalent) shall be used in calculating present values and (z) in the event that Landlord enters into a third party lease for the Premises after the termination of this Lease, then the annual fixed rent under such third party lease shall be conclusively deemed to be the fair market rent for purposes of this Section 7.3.)  Should the parties be unable to agree on a fair market rent, the matter shall be submitted, upon the demand of either party, to the Boston, Massachusetts office of the American Arbitration Association, with a request for arbitration in accordance with the rules of the Association by a single arbitrator who shall be an MAI appraiser with at least ten years’ experience as an appraiser of major office buildings in the Greater Boston area.  The parties agree that a decision of the arbitrator shall be conclusive and binding upon them.  Until such time, if any, when Landlord makes the election provided for in this Section 7.3, Tenant shall pay Landlord for the loss of Rent by a payment at the end of each month which would have been included in the Term (but excluding any unexercised extension option), representing the difference between the Rent which would have been paid in accordance with this Lease (Annual Fixed Rent under Section 2.5, and Additional Rent which would have been payable under Section 2.6 to be ascertained monthly) and the Rent actually derived from the Premises by Landlord for such month (the amount of Rent deemed derived shall be the actual amount less any portion thereof attributable to Landlord’s reletting expenses described in Section 7.2 which have not been reimbursed by Tenant thereunder).
All rights and remedies of Landlord under this Section 7.3 and elsewhere in this Lease shall be distinct, separate and cumulative, and none shall exclude any other right or remedy of Landlord set forth in this Lease or allowed by law or in equity.  Tenant’s obligations under this Section 7.3 shall survive the expiration or earlier termination of the Term.

7.4    MITIGATION
In the event the Lease is terminated pursuant to Section 7.1 and Tenant vacates the Premises, Landlord shall, subject to the provisions of this Section 7.4, use reasonable efforts to relet the Premises and collect the sums due to Landlord as a result of such reletting; provided, however, that any obligation imposed by law upon Landlord to relet the Premises shall be subject to the right of Landlord and its affiliates owning buildings in the Project to lease other available space prior to reletting the Premises and to lease the Building in a harmonious manner with an appropriate mix of uses, tenants, floor areas and terms of tenancies, and the like.

7.5    CLAIMS IN BANKRUPTCY
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Nothing herein shall limit or prejudice the right of Landlord to prove and obtain in a proceeding for bankruptcy, insolvency, arrangement or reorganization, by reason of the termination, an amount equal to the maximum allowed by a statute or law in effect at the time when, and governing the proceedings in which, the damages are to be proved, whether or not the amount is greater to, equal to, or less than the amount of the loss or damage which Landlord has suffered.

7.6    INTEREST ON UNPAID AMOUNTS
If any payment of Annual Fixed Rent, Additional Rent, or other payment due from Tenant to Landlord is not paid when due, then without notice and in addition to all other remedies hereunder, Tenant shall pay to Landlord interest on such unpaid amount at the rate of eighteen percent (18%) per annum; provided, however, in no event shall such interest exceed the maximum amount permitted to be charged by applicable law.  Notwithstanding the foregoing, Landlord shall provide a five (5) day notice and cure period prior to the imposition of such interest on one (1) occasion during any given twelve (12) month period during the Term.

7.7    LATE FEE
If any payment of Annual Fixed Rent, Additional Rent, or other payment due from Tenant to Landlord is not paid when due, then Landlord may, at its option, in addition to all other remedies hereunder, impose a late charge on Tenant equal to five percent (5%) of the amount in question, which late charge will be due within ten (10) days after notice as Additional Rent.  Notwithstanding the foregoing, Landlord shall provide a five (5) day notice and cure period prior to the imposition of such late fee on two (2) occasions during any given twelve (12) month period during the Term.

7.8    INTENTIONALLY OMITTED

7.9    EXPENSES AND ATTORNEYS’ FEES
Tenant shall pay as Additional Rent Landlord’s expenses, including reasonable attorneys’ fees, incurred in enforcing any obligations of Tenant under this Lease with which Tenant has failed to comply.  If either Landlord or Tenant should bring suit (or alternate dispute resolution proceedings) against the other with respect to this Lease, including for unlawful detainer, forcible entry and detainer, or any other relief against the other hereunder, then all reasonable and actual costs and expenses incurred by the prevailing party in a final nonappealable action therein (including its actual appraisers’, accountants’, attorneys’ and other professional fees, expenses and court costs), shall be paid by the other party, including any and all costs incurred in enforcing, perfecting and executing such judgment and all reasonable costs and attorneys’ fees associated with any appeal.

7.10    WAIVER OF TRIAL BY JURY
IN ANY ACTION OR PROCEEDING ARISING HEREFROM, LANDLORD AND TENANT HEREBY CONSENT TO (I) THE JURISDICTION OF ANY COMPETENT COURT WITHIN THE STATE WHERE THE BUILDING IS LOCATED, (II) SERVICE OF PROCESS BY ANY MEANS AUTHORIZED BY THE LAW OF THE STATE WHERE THE BUILDING IS LOCATED, AND (III) IN THE INTEREST OF SAVING TIME AND EXPENSE, TRIAL WITHOUT A JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT 
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BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE, OR ANY EMERGENCY OR STATUTORY REMEDY.  IN THE EVENT LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NONPAYMENT OF BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF ANY NATURE OR DESCRIPTION (UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT LAW.

ARTICLE VIII
MISCELLANEOUS

8.1    HOLDOVER
If Tenant remains in the Premises after the termination or expiration of the Term, such holding over shall be as a tenant at sufferance, at a rent equal to: (i) one hundred fifty percent (150%) of the Annual Fixed Rent and Additional Rent due hereunder for the last month of the Term for the first sixty (60) days in which the Tenant holds over, and (ii) two hundred percent (200%) of the Annual Fixed Rent and Additional Rent due hereunder for the last month of the Term for any holding over for sixty-one (61) or more days.  Notwithstanding the foregoing, if Landlord desires to regain possession of the Premises after the termination or expiration hereof, Landlord may, at its option, re-enter and take possession of the Premises or any part thereof at any time thereafter or by any legal process in force in the state in which the Premises are located.
Notwithstanding the establishment of any tenancy at sufferance following the expiration or earlier termination of the Term, if Tenant fails to vacate the Premises within sixty (60) days after the expiration or earlier termination of the Term, Tenant shall save Landlord harmless, indemnify and defend Landlord against any claim, loss, cost or expense (including reasonable attorneys’ fees by counsel of Landlord’s choice and consequential damages) arising out of Tenant’s failure promptly to vacate the Premises (or any portion thereof) after such thirty (30) day period.

8.2    ESTOPPEL CERTIFICATES
At either party’s request, from time to time, the other party agrees to execute and deliver to the requesting party, within fifteen (15) Business Days after delivery of such request, a certificate which acknowledges the dates on which the Term begins and ends, tenancy and possession of the Premises and recites such other facts concerning any provision of the Lease or payments made under the Lease which Landlord or a mortgagee or lender or a purchaser or prospective purchaser of the Building or any interest therein or any other party may from time to time reasonably request, all substantially as set forth on the form of estoppel set forth on Exhibit H attached hereto.  Tenant acknowledges that the execution and delivery of such certificates in connection with a financing or sale in a prompt manner constitute requirements of Landlord’s financing and/or property dispositions.  Tenant’s failure to execute and deliver to the requesting party within five (5) days following a second written request for such certificate shall be 
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considered a default of Tenant in accordance with Section 7.1(d) hereof.  Such second written request shall include the following in capital letters on the written request “FAILURE TO RESPOND TO THIS REQUEST WITHIN FIVE (5) DAYS SHALL BE DEEMED A DEFAULT OF TENANT.”  Without limitation of the foregoing, Tenant agrees to execute whatever other commercially reasonable instruments may be required by the first mortgagee or junior mortgagee to acknowledge such tenancy in recordable form, within fifteen (15) Business Days after Landlord’s request, correcting as appropriate any representations which are not then correct.

8.3    NOTICE
Any notice, approval, consent and other like communication hereunder from Landlord to Tenant or from Tenant to Landlord shall be effective only if given in writing and shall be deemed duly delivered if (i) hand delivered, (ii) mailed by prepaid certified or registered mail, return receipt requested, or (iii) delivered by a national overnight delivery service, receipt confirmed.  If requested, Tenant shall send copies of all such notices in like manner to Landlord’s mortgagees and any other persons having an interest in the Premises and designated in writing by Landlord.  Any notice so addressed shall be deemed duly delivered on the third Business Day following the day of mailing if so mailed by registered or certified mail, return receipt requested, whether or not accepted, or on the date of delivery if hand delivered or sent by overnight delivery service.  Communications to Tenant shall be addressed at the Original Address of Tenant set forth in Section 1.1 prior to September 30, 2021, to One Main Street, Cambridge, Massachusetts 02142 from October 1, 2021 to the Term Commencement Date, and thereafter at the Premises and a copy of all notices shall be sent to the Chief Financial Officer and General Counsel of Tenant at such addresses.  Communications to Landlord shall be addressed to the Landlord’s Address, and to Landlord’s Property Manager at the address set forth in Section 1.1 (or such other manager as Landlord may from time to time designate) and a copy of all notices shall be sent to Landlord’s Chief Legal Officer, c/o Hobbs Brook Real Estate LLC, 404 Wyman Street, Waltham, Massachusetts 02451-1209.  Either party may from time to time designate other addresses within the continental United States by notice to the other.

8.4    LANDLORD’S RIGHT TO CURE
At any time and, except in an emergency (in which case no notice shall be required), upon five (5) Business Days’ notice, Landlord may, but need not, cure any failure by Tenant to perform its obligations under this Lease.  Whenever Landlord chooses to do so, Tenant shall pay all costs and expenses incurred by Landlord in curing any such failure, including, without limitation, reasonable attorneys’ fees together with an administrative charge equal to fifteen percent (15%) of such costs and expenses (or such higher percentage as may then be customary with respect to first class office buildings in the metropolitan area in which the Premises are located) and interest as provided in Section 7.6.

8.5    SUCCESSORS AND ASSIGNS
This Lease and the covenants and conditions herein contained shall inure to the benefit of and be binding upon Landlord, its successors and assigns, and shall be binding upon Tenant, its successors and assigns, and shall inure to the benefit of Tenant and only such Transferees of Tenant as are permitted hereunder.  The term “Landlord” means the original Landlord named 
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herein, its successors and assigns.  The term “Tenant” means the original Tenant named herein and its permitted successors and assigns.

8.6    BROKERAGE
Tenant warrants that it has had no dealings with any broker or agent in connection with this Lease, except for any broker designated in Section 1.1.  Tenant covenants to pay, hold harmless, indemnify and defend Landlord from and against any and all claims, costs, expense or liability (including reasonable attorneys’ fees by counsel of Landlord’s choice) for any compensation, commissions and charges claimed by any broker or agent other than any such broker designated in Section 1.1 with respect to this Lease or the negotiation thereof arising from a breach of the foregoing warranty.  Landlord warrants that it has had no dealings with any broker or agent in connection with this Lease, except for any broker designated in Section 1.1. Landlord covenants to pay, hold harmless, indemnify and defend Tenant from and against any and all claims, costs, expense or liability (including reasonable attorneys’ fees by counsel of Tenant’s choice) for any compensation, commissions and charges claimed by any broker or agent other than any such broker designated in Section 1.1 with respect to this Lease or the negotiation thereof arising from a breach of the foregoing warranty.  Landlord shall be responsible for payment of any brokerage commission to any broker designated in Section 1.1 pursuant to a separate written agreement.

8.7    WAIVER
The failure of Landlord or of Tenant to seek redress for violation of, or to insist upon strict performance of, any covenant or condition of this Lease, or, with respect to such failure of Landlord, any of the Rules and Regulations referred to in Section 5.4, whether heretofore or hereafter adopted by Landlord, shall not be deemed a waiver of such violation nor prevent a subsequent act, which would have originally constituted a violation, from having all the effect of an original violation, nor shall the failure of Landlord to enforce any of said Rules and Regulations against any other tenant of the Building be deemed a waiver of any such Rules or Regulations.  The receipt by Landlord of Annual Fixed Rent or Additional Rent with knowledge of the breach of any covenant of this Lease shall not be deemed waiver of such breach.  No provision of this Lease shall be deemed to have been waived by Landlord, or by Tenant, unless such waiver be in writing signed by the party to be charged.  No consent or waiver, express or implied, by Landlord or Tenant to or of any breach of any agreement or duty shall be construed as a waiver or consent to or of any other breach of the same or any other agreement or duty.

8.8    ACCORD AND SATISFACTION
No acceptance by Landlord of a lesser sum than the Annual Fixed Rent and Additional Rent then due shall be deemed to be other than on account of the earliest installment of such Rent due, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other remedy provided in this Lease.  The delivery of keys to Landlord shall not operate as a termination of this Lease or a surrender of the Premises.

8.9    REMEDIES CUMULATIVE
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The specific remedies to which Landlord may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies to which it may be lawfully entitled in case of any breach or threatened breach by Tenant of any provisions of this Lease.  In addition to the other remedies provided in this Lease, Landlord shall be entitled to the restraint by injunction of the violation or attempted or threatened violation of any of the covenants or conditions of this Lease or to a decree compelling specific performance of any such covenants or conditions.

8.10    PARTIAL INVALIDITY
If any term of this Lease, or the application thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such term to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term of this Lease shall be valid and enforceable to the fullest extent permitted by law.

8.11    WAIVERS OF SUBROGATION 
Any property insurance carried by Tenant with respect to the Premises or property therein or occurrences thereon shall include a clause or endorsement denying to the insurer rights of subrogation and/or recovery against Landlord for any loss due to hazards which are actually insured by Tenant or are required to be insured by Tenant under the Lease.  Tenant, notwithstanding any provisions of this Lease to the contrary, hereby waives any rights of recovery against Landlord for loss due to hazards which are the subject of its insurance under this Lease.  For the purposes of this Section 8.11, “Landlord” shall include its mortgagees, agents, employees, managers and/or management companies, officers, directors, attorneys, trustees, independent contractors, and invitees.
Any property insurance carried by Landlord with respect to the Building or property therein or occurrences thereon shall include a clause or endorsement denying to the insurer rights of subrogation and/or recovery against Tenant for any loss due to hazards which are actually insured by Landlord or are required to be insured by Landlord under the Lease.  Landlord, notwithstanding any provisions of this Lease to the contrary, hereby waives any rights of recovery against Tenant for loss due to hazards which are the subject of its insurance under this Lease.  For the purposes of this Section 8.11, “Tenant” shall include its agents, employees, managers and/or management companies, officers, directors, attorneys, trustees, independent contractors, and invitees.

8.12    ENTIRE AGREEMENT
This Lease contains all of the agreements between Landlord and Tenant with respect to the Premises and supersedes all prior writings and dealings between them with respect thereto.

8.13    NO AGREEMENT UNTIL SIGNED
The submission of this Lease or a summary of some or all of its provisions for examination does not constitute a reservation of or option for the Premises or an offer to lease and no legal obligations shall arise with respect to the Premises or other matters herein until this Lease is executed and delivered by Landlord and Tenant.

8.14    INTENTIONALLY OMITTED
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8.15    NOTICE OF LEASE
Landlord and Tenant agree not to record this Lease.  At the time of execution hereof, Landlord and Tenant shall execute, acknowledge and deliver a Notice of Lease in the form of Exhibit I hereto.  Both parties will within five (5) Business Days after the request of either, execute, acknowledge and deliver a Notice of Termination of Term in recordable form.  Such notices shall contain only the information required by law for recording.

8.16    TENANT AND LANDLORD AS BUSINESS ENTITY
Tenant warrants and represents that (a) Tenant is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) Tenant has the authority to own its property and to carry on its business as contemplated under this Lease; (c) Tenant is in compliance with all laws and orders of public authorities applicable to Tenant; (d) Tenant has duly executed and delivered this Lease; (e) the execution, delivery and performance by Tenant of this Lease (i) are within the powers of Tenant, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which Tenant is a party or by which it or any of its property is bound, and (iv) will not result in the imposition of any lien or charge on any of Tenant’s Property, except by the provisions of this Lease; and (f) the Lease is a valid and binding obligation of Tenant in accordance with its terms. 
Landlord warrants and represents that (a) Landlord is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) Landlord has the authority to own its property and to carry on its business as contemplated under this Lease; (c) Landlord is in compliance with all laws and orders of public authorities applicable to Landlord; (d) Landlord has duly executed and delivered this Lease; (e) the execution, delivery and performance by Landlord of this Lease (i) are within the powers of Landlord, (ii) have been duly authorized by all requisite action, and (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which Landlord is a party or by which it or any of its property is bound; and (f) the Lease is a valid and binding obligation of Landlord in accordance with its terms.

8.17    SECURITY DEPOSIT
On the execution of this Lease, Tenant shall pay to Landlord as a Security Deposit for the performance of the obligations of Tenant hereunder the amount specified in Section 1.1.  The Security Deposit shall be in the form of an irrevocable letter of credit in accordance with the provisions of this Section 8.17.
Such letter of credit shall contain all of the following terms and satisfy all of the following conditions (which terms and conditions are hereinafter referred to as the “Letter of Credit Terms and Conditions”):  (i) the letter of credit shall be irrevocable, (ii) the letter of credit shall only require the presentation to the issuer of a certificate of the holder of the letter of credit stating that Landlord is entitled to draw upon the letter of credit under the terms of this Lease, and stating the amount of the requested draw, (iii) the letter of credit shall be payable to Landlord or its successors in interest as the Landlord under this Lease and shall be freely transferable at Tenant’s cost or to any such successor or any lender holding a collateral assignment of Landlord’s interest in the Lease, (iv) the letter of credit shall be in the amount required under 
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Section 1.1, (v) the letter of credit shall be for an initial term of not less than one year and contain a provision that such term shall be automatically renewed for successive one-year periods unless the issuer shall, at least forty five (45) days prior to the scheduled expiration date, give Landlord notice of such nonrenewal, (vi) the letter of credit shall be in form and substance reasonably acceptable to Landlord, with the form attached hereto as Exhibit K being an example of such reasonably acceptable form, and (vii) the letter of credit shall be issued by a commercial bank or savings and loan association which is reasonably acceptable to Landlord which can be drawn at such institution’s counter in Pittsburgh, PA (said initial letter of credit security deposit and every renewal thereof and every new letter of credit in replacement or substitution thereof, are hereinafter referred to as the “Letter of Credit Security Deposit”).  Not less than thirty (30) days before the expiration of the initial Letter of Credit Security Deposit and every renewal thereof, Tenant shall deliver to Landlord a renewal of the Letter of Credit Security Deposit or a new Letter of Credit Security Deposit, in either case, except as otherwise expressly provided herein, containing and satisfying the Letter of Credit Security Deposit Terms and Conditions.  Notwithstanding the foregoing, the Letter of Credit Security Deposit to be delivered by Tenant for the final period of twelve (12) or fewer months before the expiration of the Term of this Lease shall be for a term ending not sooner than thirty (30) days after the expiration of the Term of this Lease.
The Letter of Credit Security Deposit shall be issued by a commercial bank or savings and loan association that is chartered under the laws of the United States, any state or commonwealth thereof, or the District of Columbia and insured by the Federal Deposit Insurance Corporation.  If at any time Landlord determines in its reasonable discretion that the financial condition of such issuer has changed in any materially adverse way from the financial condition of such issuer as of the date of execution of this Lease (including, without limitation, if such issuer is declared insolvent or is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation, or any successor or similar entity, or if a trustee, receiver or liquidator is appointed for such issuer), then Tenant shall within thirty (30) days after written notice from Landlord deliver to Landlord a replacement Letter of Credit Security Deposit issued by a commercial bank or savings and loan association reasonably acceptable to Landlord in its reasonable discretion and that meets all other requirements of this Section 8.17.
Landlord shall be entitled to draw upon the Letter of Credit Security Deposit for its full amount or any portion thereof if (a) Tenant shall fail to surrender the Premises as required under this Lease on or before the expiration of the Term, or shall otherwise fail to perform any of its obligations under the Lease after the expiration of any applicable notice and cure period, or shall fail to perform any of its obligations under the Lease and transmittal of a default notice is barred by applicable law, (b) not less than thirty (30) days before the scheduled expiration of the Letter of Credit Security Deposit, Tenant has not delivered to Landlord a new Letter of Credit Security Deposit in accordance with this Section 8.17, or (c) Tenant shall fail to provide a replacement Letter of Credit Security Deposit as set forth in the preceding paragraph.
Landlord may, but shall not be obligated to, draw on the Letter of Credit Security Deposit from time to time in the event of a bankruptcy filing by or against Tenant and/or to compensate Landlord, in such order as Landlord may determine, for all or any part of any unpaid rent, any damages arising from any termination of the Lease in accordance with the terms of the Lease, 
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and/or any damages arising from any rejection of the Lease in a bankruptcy proceeding commenced by or against Tenant.  Landlord may, but shall not be obligated to, apply the amount so drawn to the extent necessary to pay any amount due Landlord hereunder.  Landlord’s application of the Letter of Credit Security Deposit shall not contribute to the cure of any default unless and until Tenant reinstates the Security Deposit to its full amount (either in the form of cash or a new Letter of Credit Security Deposit compliant with the provisions of this Section 8.17).
Any amount of the Letter of Credit Security Deposit drawn in excess of the amount applied by Landlord to cure any such failure shall be held by Landlord as a cash Security Deposit for the performance by Tenant of its obligations under the Lease.  Any cash Security Deposit may be mingled with other funds of Landlord and no fiduciary relationship shall be created with respect to such deposit, nor shall Landlord be liable to pay Tenant interest thereon.  If Tenant shall fail to perform any of its obligations under this Lease, Landlord may, but shall not be obliged to, apply the cash Security Deposit to the extent necessary to pay any amount due Landlord hereunder.  Landlord’s application of such a cash Security Deposit shall not contribute to the cure of any default unless and until Tenant reinstates the Security Deposit to its full amount (either in the form of cash or a new Letter of Credit Security Deposit compliant with the provisions of this Section 8.17).
After any such application by Landlord of the Letter of Credit Security Deposit or cash Security Deposit, as the case may be, within ten (10) days after written demand from Landlord, Tenant shall reinstate the Security Deposit to the amount originally required to be maintained under the Lease (either in the form of cash or a new Letter of Credit Security Deposit compliant with the provisions of this Section 8.17).  Provided that Tenant is not then in default under the Lease, and no condition exists or event has occurred which after the expiration of any applicable notice or cure period would constitute such a default, within thirty (30) days after the expiration or sooner termination of the Term the Letter of Credit Security Deposit and any cash Security Deposit, to the extent not applied, shall be returned to the Tenant, without interest.
Upon any conveyance by Landlord of its interest under this Lease, the Security Deposit then held by Landlord shall be delivered by Landlord to Landlord’s grantee or transferee.  Upon any such delivery and the written acknowledgment by such grantee or transferee of its receipt and that it shall continue to hold such Security Deposit as required by the terms and provisions of this Lease, Tenant hereby releases Landlord herein named (and each subsequent grantor or transferor) of any and all liability with respect to the Security Deposit, its application and return, and Tenant agrees to look solely to such grantee or transferee.
Provided there has been no monetary default under the Lease beyond the applicable notice and cure period on or prior to the applicable Burndown Date (defined below), the amount of the Security Deposit shall reduce to the applicable Burndown Amount (defined below) upon Tenant’s delivery to Landlord of either (i) a replacement Letter of Credit conforming with the LOC Criteria in the applicable Burndown Amount, and Landlord shall return to the issuing bank the then-existing Letter of Credit held by Landlord within five (5) Business Days following the later of the applicable Burndown Date or the date a replacement Letter of Credit in the applicable Burndown Amount is received or (ii) an amendment to the then-existing Letter of Credit conforming with the LOC Criteria in the applicable Burndown Amount, provided that Landlord 
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shall have first received from Tenant a request for Landlord’s consent to such amendment, Landlord agreeing that it shall provide its consent thereto and deliver such consent to the bank that issued the Letter of Credit.  Prior to the later of Landlord’s receipt of a replacement Letter of Credit in the applicable Burndown Amount (or amendment to the then-existing Letter of Credit, if applicable) and the applicable Burndown Date, Landlord shall be entitled, pursuant to the terms of this Section 8.17, to draw up to the full amount of the Letter of Credit then held by Landlord as if such amount thereof was the then-current Security Deposit.  If Tenant is in monetary default under the Lease beyond the applicable notice and cure period on or prior to the later of Landlord’s receipt of any replacement Letter of Credit (or amendment, if applicable) and an applicable Burndown Date, then effective as of the date of such default Tenant shall not be entitled to any further reduction in the amount of the Security Deposit, and the amount of the Security Deposit shall remain at the then-current Burndown Amount for the remainder of the Term.  As used in this Section 8.17, (I) the first Burndown Date shall be the commencement of the fourth (4th) Lease Year (the “First Burndown Date”) and (II) the Burndown Amount applicable to the First Burndown Date shall be reduced to $1,726,176 (the “First Burndown Amount”).  As used in this Section 8.17, (I) the second Burndown Date shall be the commencement of the sixth (6th) Lease Year (the “Second Burndown Date”) and (II) the Burndown Amount applicable to the Second Burndown Date shall be reduced to $1,150,784 (the “Second Burndown Amount”).

8.18    FINANCIAL STATEMENTS
Tenant shall furnish to Landlord upon Landlord’s written request, not more than once per calendar year (except in connection with a sale or refinance) an accurate, up-to-date, audited if available, financial statement of Tenant showing Tenant’s financial condition for the preceding fiscal year.  If not so furnished, Tenant shall furnish the same to Landlord within fifteen (15) days of Landlord’s request therefor.  If no audited financial statement is prepared, such statement will be certified by the CFO or Treasurer of Tenant.  Unless public by other means, Landlord will maintain confidential such statement, except as required by an applicable law or court order; however Landlord may provide such statements to Landlord’s prospective and actual lenders and purchasers, and its and their accountants, attorneys and partners, as long as Landlord advises the recipients of the existence of Landlord’s confidentiality obligation and such recipients agree to be bound thereby.  So long as Tenant is a publicly-traded company that makes public reports as required by the Securities and Exchange Commission, those publicly-available reports shall satisfy all obligations of Tenant under this Section 8.18.

8.19    LANDLORD DEFAULT AND TENANT’S REMEDIES
Landlord shall be in default if it fails to perform any term, condition, covenant or obligation required under this Lease for a period of thirty (30) days after written notice thereof from Tenant to Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Landlord is such that it cannot reasonably be performed within thirty (30) days, such default shall be deemed to have been cured if Landlord commences such performance within said thirty-day period and thereafter diligently undertakes to complete the same.  Upon the occurrence of any such default by Landlord, Tenant may sue for injunctive relief or to recover damages for any loss directly resulting from such default, but Tenant shall not be entitled to terminate this Lease or withhold, offset or abate any sums due hereunder except as otherwise 
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specifically set forth herein.  In no event, however, shall Landlord be liable to Tenant for any consequential or punitive damages.

8.20    MISCELLANEOUS PROVISIONS
This Lease may be executed in counterparts and shall constitute the agreement of Landlord and Tenant whether or not their signatures appear in a single copy hereof.  Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature process complying with the U.S. federal ESIGN Act of 2000) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.  Electronic signatures shall be deemed original signatures for purposes of this Lease and all matters related thereto, with such electronic signatures having the same legal effect as original signatures.
This Lease shall be construed as a sealed instrument and shall be governed exclusively by the provisions hereof and by the laws of The Commonwealth of Massachusetts as the same may from time to time exist.  The titles are for convenience only and shall not be considered a part of the Lease.  Where the phrases “persons acting under Tenant” or “persons claiming under Tenant” or similar phrases are used, the persons included shall be all employees, agents, independent contractors and invitees of Tenant or of any Transferee of Tenant.  The enumeration of specific examples of or inclusions in a general provision shall not be construed as a limitation of the general provision.  If Tenant is granted any extension option, expansion option or other right or option, the exercise of such right or option (and notice thereof) must be unconditional to be effective, time always being of the essence to the exercise of such right or option; and if Tenant purports to condition the exercise of any option or to vary its terms in any manner, then the option granted shall be void and the purported exercise shall be ineffective.  Unless otherwise stated herein, any consent or approval required hereunder may be given or withheld in the sole absolute discretion of the party whose consent or approval is required.
Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant.  If there shall be more than person or entity which constitute the “Tenant” hereunder, the obligations of Tenant hereunder shall be joint and several for all such persons and entities.  This Lease and all consents, notices, approvals and all other documents relating hereto may be reproduced by any party by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.
This Lease may be amended only by a writing signed by all of the parties hereto.  Any reference in this Lease to the time for the performance of obligations or elapsed time shall mean consecutive calendar days, months, or years as applicable.  “Business Day” shall mean any day of the week other than Saturday, Sunday, or a day on which banking institutions in Boston, Massachusetts are obligated or authorized by law or executive action to be closed to the transaction of normal banking business.  In the event the time for performance of any obligation 
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hereunder expires on any day other than a Business Day the time for performance shall be extended to the next Business Day.
Time shall be of the essence in the performance of Landlord’s and Tenant’s obligations hereunder. 
For purposes hereof, (a) “Anti-Corruption Laws” shall mean all Legal Requirements applicable to a pertinent party from time to time concerning or relating to bribery or anti-corruption; (b) “Sanctions” shall mean all applicable economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (i) the U.S. federal government, including those administered by the Office of Foreign Assets Control, the United States Department of Treasury (“OFAC”) or the U.S. Department of State, or (ii) the United Nations Security Council, the European Union, any European Union member state in which a pertinent party or any of its subsidiaries conduct operations or Her Majesty’s Treasury of the United Kingdom; and (c) “Sanctioned Person” shall mean, at any time, (i) any person or entity listed in any Sanctions-related list of designated persons or entities maintained by OFAC, the U.S. Department of State, or by the United Nations Security Council, the European Union or any European Union member state in which the pertinent party or any of its subsidiaries conducts operations, (ii) unless otherwise authorized by OFAC, any person or entity operating, organized or resident in any country or territory which is itself the subject or target of any full-scope (non-list based) Sanctions, or (iii) any ownership of fifty percent (50%) or more of an entity by persons or entities described in the foregoing clauses (i) or (ii).  Each of Landlord and Tenant represents and warrants that neither it nor any of its subsidiaries, nor to its knowledge, their respective directors, officers, employees or agents, is a Sanctioned Person.  Each party further represents that it and its subsidiaries, and to its knowledge, their respective directors, officers, employees and agents, complies and shall continue to comply in all material respects with all Sanctions and with all Anti-Corruption Laws.  Each party will use reasonable efforts to notify the other in writing if any of the foregoing representations and warranties are no longer true or have been breached or if such party has a reasonable basis to believe that they may no longer be true or have been breached.  In the event of any violation of this Section by Tenant, Landlord will be entitled to terminate this Lease and take such other actions as are permitted or required to be taken under law or in equity; provided, however, in all events Tenant shall have a period of three (3) Business Days following written notice from Landlord of a violation of this Section 8.20 to demonstrate to Landlord’s satisfaction that (a) any violation was the result of a false positive search result and/or (b) Tenant has terminated the employment of any employee on any such Sanctions-related list.  
Tenant agrees that this Lease and the terms contained herein will be treated as strictly confidential and except as required by any Legal Requirements (or except with the written consent of Landlord) Tenant shall not disclose the same to any third party except for Tenant’s partners, lenders, accountants and attorneys who have been advised of the confidentiality provisions contained herein and agree to be bound by the same.  In the event Tenant is required by applicable Legal Requirements to provide this Lease or disclose any of its terms, Tenant shall give Landlord prompt notice of such requirement prior to making disclosure so that Landlord may seek an appropriate protective order.  If failing the entry of a protective order Tenant is compelled to make disclosure, Tenant shall only disclose portions of the Lease which Tenant is 
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required to disclose and will exercise reasonable efforts to obtain assurance that confidential treatment will be accorded to the information so disclosed.  Nothing contained in this Lease is intended to prohibit Tenant from filing this Lease with the Securities and Exchange Commission (“SEC”) to the extent that Tenant is required to do so pursuant to applicable SEC requirements.  Prior to any such filing of this Lease, Tenant shall redact the Annual Fixed Rent and other economic terms to the extent permitted by applicable SEC regulations.
“Confidential Information” means any scientific, technical, trade or business information possessed or obtained by, developed for or given to Tenant which is treated by Tenant as confidential or proprietary, whether or not labeled “Confidential”.  “Confidential Information” does not include information which (i) was known to Landlord at the time it was disclosed, other than by previous disclosure by Tenant; (ii) is at the time of disclosure or later becomes publicly known under circumstances involving no breach of this Lease; or (iii) is lawfully and in good faith made available to Landlord by a third party.
During the Term and thereafter, Landlord shall not directly or indirectly publish, disseminate or otherwise disclose, deliver or make available to any person any Confidential Information received by Landlord or observed by Landlord; provided, however, that Landlord may provide such Confidential Information to those within its organization and Landlord’s prospective and actual lenders and purchasers, and its and their accountants, attorneys and partners, as long as Landlord advises the recipients of the existence of Landlord’s confidentiality obligation and such recipients agree to be bound thereby.  During the Term and thereafter, Landlord shall use Tenant’s Confidential Information solely for the purposes contemplated in the Lease.  If required, Landlord may disclose Confidential Information to a governmental authority or by order of a court of competent jurisdiction, provided reasonable advance notice is given to Tenant.
This provision shall survive the termination or expiration of this Lease.

8.21    TENANT COMPETITORS
During the Term of this Lease, provided that (i) Tenant shall not be in default under this Lease beyond applicable notice and cure periods, (ii) Tenant (together with its affiliates) shall lease and occupy at least seventy percent (70%) of the Premises, and (iii) Tenant is the original named Tenant under this Lease, Landlord shall not enter into a new lease or consent to a sublease of other premises located within the Building to any of the companies listed on Exhibit G attached hereto (“Tenant Competitors”).  Upon expiration or earlier termination of the Lease the restriction set forth in this Section 8.21 shall be of no further force and effect.

ARTICLE IV
LANDLORD’S LIABILITY AND ASSIGNMENT FOR FINANCING

9.1    LANDLORD’S LIABILITY
Tenant agrees to look only to Landlord’s equity interest in the Building for satisfaction of any claim against Landlord hereunder or under any other instrument related to the Lease (including any separate agreements among the parties and any notices or certificates delivered by Landlord) and not to any other property or assets of Landlord.  If Landlord from time to time transfers its interest in the Building (or part thereof which includes the Premises), then from and 
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after each such transfer Tenant shall look solely to the interests in the Building of each of Landlord’s transferees for the performance of all of the obligations of Landlord hereunder (or under any related instrument), so long as such transferee has assumed in writing all obligations of Landlord.  The obligations of Landlord shall not be binding on any partners, mortgagees, members, managers, directors, officers, trustees, or beneficiaries of Landlord or of any successor, individually, but only upon Landlord’s or such successor’s interest described above.  The obligations of Tenant shall not be binding on any partners, shareholders, members, managers, directors, officers, trustees, or beneficiaries of Tenant, individually, but only upon Tenant or any successor or assign of Tenant.
Except for the negligence or willful misconduct of Landlord or any of the Indemnitees (as such term is defined in Section 5.4.1), Landlord shall not be liable to Tenant and Tenant hereby waives all claims against Landlord for any injury or damage to any person or property whatsoever.  In no event shall Landlord ever be liable for any indirect or consequential damages.  It is expressly agreed by Landlord and Tenant that business interruption costs and expenses are indirect and consequential damages under the terms of this Lease and no other property assets of Landlord shall be subject to levy, execution or other enforcement procedures for satisfaction of any judgment or decree in favor of Tenant.

9.2    ASSIGNMENT OF RENTS
If, at any time and from time to time, Landlord assigns this Lease or the Rents payable hereunder to the holder of any mortgage on the Building, or to any other party for the purpose of securing financing (the holder of any such mortgage and any other such financing party are referred to herein as the “Financing Party”), whether such assignment is conditional in nature or otherwise, the following provisions shall apply:
(a)    Such assignment to the Financing Party shall not be deemed an assumption by the Financing Party of any obligations of Landlord hereunder unless such Financing Party shall, by written notice to Tenant, specifically otherwise elect;
(b)    Except as provided in Section 9.2(a) above and Section 9.2(c) below, the Financing Party shall be treated as having assumed Landlord’s obligations hereunder (subject to Section 9.1) only upon foreclosure of its mortgage (or voluntary conveyance by deed in lieu thereof) and the taking of possession of the Premises from and after foreclosure;
(c)    Subject to Section 9.1, the Financing Party shall be responsible for only such breaches under the Lease by Landlord which occur during the period of ownership by the Financing Party after such foreclosure (or voluntary conveyance by deed in lieu thereof) and taking of possession, as aforesaid; and
(d)    In the event Tenant alleges that Landlord is in default under any of Landlord’s obligations under this Lease, Tenant agrees to give any Financing Party, by registered mail, a copy of any notice of default which is served upon the Landlord, provided that prior to such notice, Tenant has been notified, in writing, (whether by way of notice of an assignment of lease, request to execute an estoppel letter and/or subordination, nondisturbance and attornment agreement or otherwise) of the address of such Financing Party.  Tenant further agrees that if Landlord shall have failed to cure such default within the time provided by this Lease, such Financing Party shall have forty-five (45) days after the last date on which Landlord could have 
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cured such default within which such Financing Party will be permitted to cure such default.  If such default cannot be cured within such forty-five (45) day period, then such Financing Party shall have such additional time as may be necessary to cure such default, if within such forty-five (45) day period such Financing Party has commenced and is diligently pursuing the remedies necessary to effect such cure (including, but not limited to, commencement of foreclosure proceedings, if necessary, to effect such cure), in which event Tenant shall have no right with respect to such default while such remedies are being diligently pursued by such Financing Party.
In all events, any liability of a Financing Party shall be limited to the interest of such Financing Party in the Land and Building, and in no event shall a Financing Party ever be liable for any indirect or consequential damages.
Tenant hereby agrees to enter into such agreements or instruments as may be requested from time to time in confirmation of the foregoing.

ARTICLE X
SUBORDINATION AND NON-DISTURBANCE
This Lease shall be subject and subordinate to any first mortgage and to any junior mortgage that has been approved by the first mortgagee that may now or hereafter be placed upon the Building and/or the Land and to any and all advances to be made under such mortgages and to the interest thereon, and all renewals, extensions and consolidations thereof; provided that this Lease shall only be subject and subordinate to any such mortgage if the mortgagee executes a subordination and non-disturbance agreement whereby such mortgagee agrees that, in consideration of Tenant’s subordination of the Lease to any such mortgage, the mortgagee shall not disturb the Tenant’s leasehold interest in the Premises so long as Tenant is not in default under this Lease (subject to any applicable notice and cure period).  Any mortgagee may elect to give this Lease priority to its mortgage, except that this Lease shall not have priority to (i) the prior right, claim and lien of such mortgagees in, to and upon any insurance proceeds and the disposition thereof under the mortgage; (ii) the prior right, claim and lien of such mortgagees in, to and upon any award or compensation heretofore or hereafter to be made for any taking by eminent domain of any part of the Premises, and to the right of disposition thereof under the mortgage; and (iii) any lien, right, power or interest, if any, which may have arisen or intervened in the period between the recording of the mortgages and the execution of this Lease, or any lien or judgment which may arise any time under the terms of this Lease.  In the event of such election and upon notification by such mortgagee, this Lease shall be deemed prior in lien to the said mortgage.  This Article X shall be self-operative, but in confirmation thereof, Tenant shall execute and deliver whatever instruments may be required by the first mortgagee or junior mortgagee to acknowledge such subordination or priority in a recordable form within fifteen (15) Business Days following receipt by Tenant of such written request.  Tenant’s failure to execute and deliver to the requesting party within five (5) days following a second written request for such instruments shall be considered a default of Tenant in accordance with Section 7.1(d) hereof.  Such second written request shall include the following in capital letters on the written request “FAILURE TO RESPOND TO THIS REQUEST WITHIN FIVE (5) DAYS 
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SHALL BE DEEMED A DEFAULT OF TENANT.”  Landlord represents that as of the date of this Lease there is no mortgage encumbering the Building or the Land.

ARTICLE XI
ROOF SPACE

11.1    ANTENNA
(a)    From the Term Commencement Date until the expiration or earlier termination of this Lease, Tenant shall have a license to use a portion of the roof of the Building and enjoy 24-hour access thereto (the “Rooftop License”) at a technologically sufficient location to be proposed by Tenant and approved by Landlord (the “Rooftop Installation Area”).  The Rooftop Installation Area is to be used by Tenant solely for the installation, operation, maintenance, repair and replacement during the Term of this Lease of an antenna no more than thirty-six inches (36”) in diameter and other related communications equipment, including one two-inch (2”) conduit connecting the antenna to the Premises, to be located in a vertical chase mutually designated by Landlord and Tenant (collectively, the “Antenna”).  Tenant’s installation and operation of the Antenna and its obligations with respect thereto shall be all in accordance with the terms, provisions, conditions and agreements contained in this Lease.
(b)    Tenant shall install the Antenna in the Rooftop Installation Area at its sole cost and expense including use of the Improvement Allowance, at such times and in such manner as Landlord may reasonably designate and in accordance with all of the applicable provisions of this Lease.  Other than the completion of Landlord’s Initial Construction, including, without limitation, Section 5.9), Landlord shall not be obligated to perform any work or incur any expense to prepare the Rooftop Installation Area for Tenant’s use thereof.
(c)    Tenant shall not install or operate the Antenna until it receives prior written approval from Landlord, which Landlord agrees shall not be unreasonably withheld, conditioned or delayed, provided and on the condition that Tenant complies with all of the requirements of this Lease including without limitation Section 5.9 and this Article XI.  Prior to commencing installation of the Antenna, Tenant shall provide Landlord with (i) copies of all required permits, licenses and authorizations which Tenant will obtain at its own expense, including use of the Improvement Allowance, and which Tenant will maintain at all times during the operation of the Antenna (and Landlord shall reasonably cooperate with Tenant in Tenant’s efforts to procure the same, at no cost or expense to Landlord); and (ii) a certificate of insurance evidencing insurance coverage as required by this Lease and any other insurance reasonably required by Landlord for the installation and operation of the Antenna.  Tenant agrees to reimburse Landlord for reasonable expenses incurred in connection with the review and approval of Tenant’s plans showing the proposed installation of the Antenna.
(d)    Tenant shall pay to Landlord as Additional Rent the amount, if any, by which Landlord’s insurance premiums increase as a result of the installation of the Antenna.
(e)    Tenant covenants that Tenant shall repair any damage to the roof and the Building caused by the installation or operation of the Antenna.
(f)    Tenant covenants and agrees that the installation, operation and removal of the Antenna and appurtenant equipment and cabling will be at its sole risk.  Tenant agrees to 
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indemnify and defend Landlord and all other Indemnitees (as defined in Section 5.4.1) against all claims, actions, damages, liabilities and expenses including reasonable attorneys’ fees by counsel of Landlord’s choice in connection with the loss of life, personal injury, damage to property or business or any other loss or injury or as a result of any litigation arising out of the installation, use, operation or removal of the Antenna and appurtenant equipment and cabling, except to the extent the foregoing is caused by the negligence or willful misconduct of Landlord or the Indemnitees.
(g)    Landlord, at its sole option upon not less than sixty (60) days’ prior written notice, shall have the right to revoke the Rooftop License at any time prior to the expiration of the Term of this Lease, and require Tenant to terminate the operation of the Antenna if (1) the Antenna is causing physical damage to the structural integrity of the Building, or (2) the Antenna is interfering with any telecommunications, mechanical or other systems either located or servicing the Building (whether belonging to or utilized by Landlord or any other tenant or occupant of the Building) or located at or servicing any building, premises or location in the vicinity of the Building, or (3) the installation, existence, maintenance and operation of the Antenna (i) constitutes a violation of any applicable laws, ordinances, rules, order, regulations, etc.  of any federal, state, county and municipal authorities having jurisdiction thereover or (ii) does not conform to industry technical specifications.  Notwithstanding the foregoing however, if Tenant can correct the damage or disturbance caused by the Antenna to Landlord’s reasonable satisfaction, Tenant may restore the operation.  If the Antenna is not corrected and restored to operation within sixty (60) days, Landlord, at its sole option, may require that Tenant remove the Antenna and appurtenant equipment and cabling at its own expense.
(h)    The sole use and purpose of this Rooftop License shall be to serve the communication needs of Tenant within the Building.  Tenant is expressly forbidden to serve other tenants or occupants of the Building (other than to permitted subtenants and assignees and Permitted Transferees), to serve any locations outside the Building, or to resell any communications services without the prior written consent of Landlord, which consent may be granted or withheld at Landlord’s sole discretion.  In the event Tenant shall attempt to resell, license, lease or otherwise provide use of the Antenna to any person or entity, except in connection with a Permitted Transfer, without Landlord’s prior written consent, then the Rooftop License shall immediately terminate and Landlord shall have the right to disconnect the Antenna and appurtenant equipment and cabling and, in accordance with the provisions of subsection (h) hereof, require Tenant to remove the Antenna and appurtenant equipment and cabling and to restore the Building to the condition as existed prior to the installation thereof, all at Tenant’s sole cost and expense.
(i)    Within fifteen (15) days following the expiration or earlier termination of the Lease or the permanent termination of the operation of the Antenna by Tenant, Tenant shall, at its sole cost and expense, (i) remove the Antenna from the Rooftop Installation Area and the Building in accordance with the terms hereof, (ii) leave the Rooftop Installation Area in good order and repair, reasonable wear and tear and damage by casualty and Landlord excepted and (iii) pay all amounts due and owing with respect to the Rooftop License up to the date of the termination thereof.  If Tenant does not remove the Antenna when so required, the Antenna shall 
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become Landlord’s property and, at Landlord’s election, Landlord may remove and dispose of the Antenna and charge Tenant for all costs and expenses incurred as Additional Rent.  Notwithstanding that Tenant’s use of the Rooftop Installation Area shall be subject at all times to and shall be in accordance with the terms, covenants, conditions and agreements contained in this Lease, the Rooftop Installation Area shall not be deemed part of the Premises.  All Tenant obligations under this Section 11.1 shall survive the expiration of the Term or the earlier termination of this Lease.
(j)    A consent required from Landlord under this Section 11.1 with respect to a particular Rooftop License matter may be deemed given in accordance with the following procedure.  Tenant shall provide an initial written notice to Landlord (which shall include all materials required under this Section 11.1) with the following written in capital letters on the outside of the delivery envelope and the letter:  “FAILURE TO RESPOND TO THIS NOTICE WITHIN TWENTY DAYS SHALL RESULT IN THE DEEMED APPROVAL OF ROOFTOP LICENSE MATTER AFFECTING PEGASYSTEMS INC.’S TENANCY AT 225 WYMAN STREET IN WALTHAM, MASSACHUSETTS.”  If Landlord does not respond to such request within twenty (20) days after delivery to Landlord, Tenant shall provide a second written notice to Landlord (which shall also include all materials required under this Section 11.1) with the following written in capital letters on the outside of the delivery envelope and the letter:  “FAILURE TO RESPOND TO THIS NOTICE WITHIN FIVE BUSINESS DAYS SHALL RESULT IN THE DEEMED APPROVAL OF A ROOFTOP LICENSE MATTER AFFECTING PEGASYSTEMS INC.’S TENANCY AT 225 WYMAN STREET IN WALTHAM, MASSACHUSETTS.”  If Landlord does not respond to such second notice within five (5) Business Days after delivery to Landlord, then the consent required from Landlord with respect to such Rooftop License matter (but no other matter) shall be deemed given.
(k) Nothing set forth in this Article XI or this Lease shall affect or impair Tenant’s right to use, install, operate, maintain, repair and/or replace on the roof of the Building HVAC and mechanical equipment and associated conduits and chases serving the Premises to be installed as part of Tenant’s Initial Construction.

ARTICLE XII
STORAGE SPACE

12.1    STORAGE SPACE
Tenant hereby leases approximately 558 square feet of storage space on the ground level of the Building, which Storage Space will be approximately as shown on Exhibit F attached to this Lease (the “Storage Space”).  Beginning on the Rent Commencement Date and during the Term as the same may be extended, Tenant shall pay Landlord annual rent for the Storage Space in an amount equal to Twenty Dollars ($20.00) per square foot multiplied by the number of square feet contained in the Storage Space.  The Storage Space rent shall be deemed a part of the additional rent owed by Tenant under the Lease and Tenant shall make monthly rental payments for the Storage Space at the same time, in the same form and otherwise in accordance with the terms set forth in the Lease for the payment of Annual Fixed Rent.  No Expense Payment Amount shall be due or payable by Tenant on account of the Storage Space.
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Except as set forth in this Article to the contrary, Tenant shall lease the Storage Space upon the same terms and conditions as Tenant leases the Premises.  Tenant accepts the Storage Space in “as is” condition as of the Term Commencement Date and Landlord shall have no obligation to provide any services in connection with the Storage Space, except that the Storage Space will be tendered to Tenant separately demised with drywall completed, with HVAC and electricity servicing the Storage Space, and otherwise in broom clean condition (the “Storage Condition”).  Upon delivering the Storage Space to Tenant in Storage Condition, Landlord will have no obligation to make any improvements, repairs or alterations to the Storage Space.  Tenant shall maintain the Storage Space at Tenant’s sole cost and expense.  At the end of the Term or earlier termination hereof, Tenant shall surrender the Storage Space to Landlord in broom clean condition, normal wear and tear and damage by casualty and Landlord excepted.  Tenant will not operate any equipment (electrical or otherwise) in the Storage Space.  Tenant shall not assign or sublet all or any portion of the Storage Space except in connection with any assignment of this Lease or sublease of the Premises permitted under the Lease.  Tenant’s insurance requirements set forth in the Lease shall also apply with respect to the Storage Space.  Tenant shall have the use of the Storage Space for non-perishable and non-Hazardous Substances for the storing of personal property of Tenant and for no other purpose.  Notwithstanding anything in this Section 12.1 to the contrary, effective as of and following the expiration of the third (3rd) Lease Year, Tenant shall be entitled, upon no less than six (6) months prior written notice to Landlord to terminate the lease of the Storage Space to be effective as early as the expiration of the third (3rd) Lease Year, in which event the lease of the Storage Space shall terminate as of the date set forth in Tenant’s notice.  

ARTICLE XIII
TENANT’S WIRELESS NETWORK

13.1    WIRELESS NETWORK
a.Tenant may install a wireless intranet, internet, communications network or “Wi-Fi” (or other iteration thereof) capability (any of the foregoing being hereinafter referred to as a “Network”) within the Premises and the Conference Center.  In the event that Tenant installs such a Network, it shall be for the use by and only by Tenant and its employees subject to the terms hereof (other than to permitted subtenants and assignees and Permitted Transferees).  No antenna/transponder shall exceed one meter in size and shall, subject to the following provisions of this Section 13.1, conform to all FCC specifications.
b.Tenant shall not solicit, suffer, or permit other tenants or occupants of the Building to use the Network or any other communications service, including, without limitation, any wired or wireless Internet service that passes through, is transmitted through, or emanates from the Premises and/or the Conference Center.  
c.Tenant agrees that Tenant’s communications equipment and the communications equipment of Tenant’s service providers and contractors retained to service the Premises and Conference Center including, without limitation, any antennas, switches, or other equipment (collectively, “Tenant’s Communications Equipment”) shall be of a type and, if applicable, a frequency, that will not cause radio frequency, electromagnetic, or other interference to any other party or any equipment of any other party including, without limitation, 
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Landlord, other tenants, or occupants of the Building or any other party, in violation of FCC specifications concerning radio frequency interference (hereinafter referred to as “RFI”).  In the event that Tenant’s Communications Equipment causes or is believed to cause any such prohibited RFI, upon receipt of notice from Landlord of such interference, Tenant will take all steps necessary to correct and eliminate the interference.  If the prohibited RFI is not eliminated within twenty-four (24) hours (or a shorter period if Landlord believes a shorter period to be appropriate) then, upon request from Landlord, Tenant shall shut down Tenant’s Communications Equipment pending resolution of the interference, with the exception of intermittent testing upon prior notice to and with the approval of Landlord.  No Network, or Tenant’s Communication Equipment may be installed in any lobby, corridor, building common area or any other area not within the exclusive control of Tenant specifically excluding the Conference Center.  
d.Tenant acknowledges that Landlord has granted and/or may grant lease rights, licenses, and other rights to various other tenants and occupants of the Building and to telecommunications service providers.

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Executed to take effect as a sealed instrument.
						
		LANDLORD:
275 WYMAN LLC,
a Delaware limited liability company

By: /s/ Sam Schaefer
Manager

		TENANT:
PEGASYSTEMS INC.,
a Massachusetts corporation

By: /s/ Efstathios A Kouninis
Name: Efstathios A Kouninis
Title:  VP, FinanceExhibit 10.1

 

TERM LOAN AND SECURITY AGREEMENT

 

This TERM LOAN AND SECURITY
AGREEMENT (this “Agreement”), dated as of July 2, 2021, is made by and among Summit
Creekside LLC, a Delaware limited liability company (“Creekside”), Summit
YucaipA LLC, a Delaware limited liability company (“Yucaipa”), Summit
Mentone LLC, a Delaware limited liability company (“Mentone”, and together with Creekside and Yucaipa, the “Borrowers”
and each a “Borrower”), and CIBC BANK, USA, an Illinois banking corporation f/k/a The PrivateBank and Trust Company
(together with its successors and assigns, the “Lender”).

 

RECITALS:

 

A.               
Pursuant to the Closing Date Purchase Documents, the Borrowers desire to purchase the Properties from the Closing Date Sellers.

 

B.                The
Borrowers desire that the Lender extend the Loan to allow Borrowers to pay a portion of the purchase price payable to the Closing Date
Sellers under the Closing Date Purchase Documents.

 

C.                The
Borrowers desire to secure all of the Liabilities by granting to the Lender, a security interest in and lien upon all of their respective
tangible and intangible assets, including, without limitation, the Lease Deposit Accounts and the Cash Loan Guaranty Fund.

 

NOW THEREFORE, in consideration of the mutual agreements
contained herein, and of any loans or other financial accommodations now or hereafter made to or for the benefit of the Borrowers by the
Lender, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto (intending
to be legally bound) hereby agree as follows:

 

DEFINITIONS.

 

1.1             
General Terms. When used herein, the following terms shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, any other Person (including, without limitation, to the extent applicable, shareholders, members, directors,
partners, managers, and officers of such Person) directly or indirectly controlling, controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to control another Person if such first Person possesses, directly or indirectly,
the power to direct or cause the direction of the management and policies of such other Person, whether through ownership of voting securities,
by contract or otherwise.

 

“Agreement”
means this Term Loan and Security Agreement as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Applicable Libor
Margin” means an amount equal to four hundred (400) basis points.

 

     

     

    

 

“Asset Disposition”
shall mean the sale, lease, assignment or other transfer for value (each a “Disposition”) by any Person of any asset
or right of such Person (including, the loss, destruction or damage of any thereof or any actual or threatened (in writing to such Person)
condemnation, confiscation, requisition, seizure or taking thereof), other than (a) the Disposition of any asset which is to be replaced,
and is in fact replaced, within thirty (30) days with another asset performing the same or a similar function and (b) the sale or lease
of inventory in the ordinary course of business.

 

“Assignment of Representations
and Warranties” shall mean that certain Assignment of Representations, Warranties, Covenants and Indemnitees executed by the
Borrowers in favor of Lender and acknowledged by the Closing Date Sellers dated as of the Closing Date.

 

“Assignments of Rents
and Leases” means, collectively, the Creekside Assignment of Rents and Leases and the Mentone Assignment of Rents and Leases
and the Yucaipa Assignment of Rents and Leases, as the same may be amended, supplemented or modified from time to time.

 

“Bank Product Agreements”
shall mean those certain agreements entered into from time to time by the Borrower with the Lender or any Affiliate of the Lender concerning
Bank Products.

 

“Bank Product Obligations”
shall mean all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the Borrower to the Lender
or any Affiliate of the Lender pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

 

“Bank Products”
shall mean any service or facility extended to the Borrower by the Lender or any Affiliate of the Lender including: (a) credit cards,
(b) credit card processing services, (c) debit cards, (d) purchase cards, (e) automated clearing house or ACH transactions, (f) cash management,
including controlled disbursement, accounts or services or (g) Interest Rate Protection Agreements.

 

“Base Rate”
means the corporate base rate of interest per annum identified from time to time by the Lender, as its base or prime rate, which rate
shall not necessarily be the lowest rate of interest which the Lender charges its customers plus 200 basis points. Any change in
the Base Rate shall be effective as of the effective date of such change.

 

“Base Rate Loan”
means a Loan that bears interest at an interest rate based on the Base Rate.

 

“Beneficial Ownership
Certification” a certification regarding a beneficial ownership required by the Beneficial Ownership Regulation, which certification
shall be substantially similar in form and substance to the form Certification Regarding Beneficial Owners of Legal Entity Customers published
jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

 

“Beneficial Ownership
Regulation” means 31 C.F.R § 1010.230.

 

    - 2 -

     

    

 

“Borrowers” shall mean, collectively,
Creekside, Mentone, Yucaipa, and any other person that joins this Agreement as a “Borrower” following the date hereof. “Borrower”
shall mean any of the Borrowers.

 

“Borrowing Notice” shall have
the meaning ascribed to such term in Section 2.10 hereof.

 

“Business Day”
means (a) with respect to any borrowing, payment or rate selection of Libor Loans, a day other than Saturday or Sunday on which banks
are open for business in Chicago, Illinois and on which dealings in United States dollars are carried on in the London interbank market
and (b) for all other purposes, a day other than Saturday or Sunday on which banks are open for business in Chicago, Illinois.

 

“Capital Expenditures”
means, as to any Person, any and all expenditures of such Person for fixed or capital assets, including, without limitation, the incurrence
of Capitalized Lease Obligations, all as determined in accordance with GAAP, except that Capital Expenditures shall not include expenditures
for fixed or capital assets to the extent such expenditures are paid for or reimbursed from the proceeds of insurance or the sale of other
fixed or capital assets, to the extent permitted hereunder.

 

“Capital Securities”
shall mean, as to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting)
of such Person’s capital, whether now outstanding or issued or acquired after the date hereof, including common shares, preferred
shares, membership interests in a limited liability company, limited or general partnership interests in a partnership or any other equivalent
of such ownership interest.

 

“Capitalized Lease
Obligations” means any amount payable with respect to any lease of any tangible or intangible property (whether real, personal
or mixed), however denoted, which either (i) is required by GAAP to be reflected as a liability on the face of the balance sheet of the
lessee thereunder or (ii) based on actual circumstances existing and ascertainable, either at the commencement of the term of such lease
or at any subsequent time at which any property becomes subject thereto, can reasonably be anticipated to impose on such lessee substantially
the same economic risks and burdens, having regard to such lessee’s obligations and the lessor’s rights thereunder both during
and at the termination of such lease, as would be imposed on such lessee by any lease which is required to be so reflected or by the ownership
of the leased property.

 

“Cash Loan Guaranty
Fund” means an account maintained with the Lender into which scheduled installments of principal paid by Borrowers are deposited
as more fully described in Section 2.1 and Section 12.12 hereof.

 

“CERCLA”
means the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq., as amended.

 

“CHAMPUS” means the Civilian
Health and Medical Program of the Uniformed Service, a part of TRICARE, a medical benefits program supervised by the U.S. Department of
Defense.

 

“Change of
Control” shall mean the occurrence of any of the following events: (a) Summit or one of its Affiliates shall cease to
manage Parent in its capacity as “Manager” of the Parent, (b) the provisions of the limited liability company of Parent
or any Borrower as in effect on the Closing Date shall be amended to materially decrease the rights of Summit in its capacity as
Manager to operate the businesses of Parent and the Borrowers (in Summit’s capacity as manager of the Borrowers), (c) Summit
shall cease to, directly or indirectly, own and control Parent or (d) Parent shall cease to, directly or indirectly, own and control
100% of each class of the outstanding Capital Securities of each Borrower. For the purpose hereof, the terms “control”
or “controlling” shall mean the possession of the power to direct, or cause the direction of, the management and
policies of the Borrowers by contract or voting of securities or ownership interests.

 

    - 3 -

     

    

 

“Change in Law”
means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation,
policy, guideline, directive or treaty, (b) any change in any law, rule, regulation, policy, guideline, directive or treaty or in the
administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any
request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding
anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines
or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,”
regardless of the date enacted, adopted or issued.

 

“Closing Date” means July 2,
2021.

 

“Closing Date Acquisition”
means the transactions represented by the purchase of the assets of the Closing Date Sellers by the Borrowers, pursuant to, and together
with the other transactions described in, the Closing Date Purchase Documents.

 

“Closing Date Purchase
Agreement” shall mean that certain Purchase and Sale Agreement by and among Summit, or its assignee and the Closing Date Sellers
dated as of February 8, 2021, as amended by (i) that certain Amendment to Purchase and Sale Agreement dated as of April 13, 2021, (ii)
that certain Second Amendment to Purchase and Sale Agreement dated effective as of May 27, 2021, and (iii) that certain Third Amendment
to Purchase and Sale Agreement dated effective as of June 4, 2021, as such Purchase and Sale Agreement has been assigned by Summit to
Borrowers pursuant to an Assignment and Assumption of Purchase Agreement dated as of June 28, 2021.

 

“Closing Date Purchase
Documents” shall mean the Closing Date Purchase Agreement and all agreements, certificates, schedules, exhibits and other documents
executed and/or delivered in connection therewith, including, without limitation, the Creekside Real Estate Lease, the Mentone Real Estate
Lease and the Yucaipa Real Estate Lease.

 

“Closing Date Sellers”
shall mean, collectively, Madison Creek Partners, LLC, Avenue H Holdings, LLC, Calimesa Holdings LLC and Nice Barham Holdings, LLC.

 

    - 4 -

     

    

 

“CMS”
means the Centers for Medicare and Medicaid Services of HHS and any Person succeeding to the functions thereof.

 

“Code”
or “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as adopted in the State
of Illinois; provided, however, that if, by reason of mandatory provisions of Law, any or all of the attachment, perfection or priority
of, or remedies with respect to, Lender’s Lien on the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction
other than the State of Illinois, the term “Uniform Commercial Code” or “UCC” or “Code” shall mean
the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions of this Agreement or the other Financing
Agreements relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions; provided
further that, to the extent that the Uniform Commercial Code of a particular jurisdiction is used to define a term herein or in any
Financing Agreement and such term is defined differently in different Articles or Divisions of such Uniform Commercial Code, then the
definition of such term contained in Article or Division 9 of such Uniform Commercial Code shall control.

 

“Collateral”
shall have the meaning ascribed to such term in Section 6.1 hereof.

 

“Commitment”
shall have the meaning ascribed to such term in Section 2.1 hereof.

 

“Commodity Exchange Act” means
the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Conversion Date”
means a date on which any portion of the Loan is converted from a Base Rate Loan to a Libor Loan.

 

“Credit Parties”
means the Borrowers and any other Person that is joined to this Agreement or provides a guaranty of the Liabilities.

 

“Creekside” means Summit Creekside
LLC, a Delaware limited liability company.

 

“Creekside Assignment
of Rents and Leases” means that certain Assignment of Rents and Leases made by Creekside, dated as of the Closing Date, as the
same may be amended, supplemented or modified from time to time.

 

“Creekside Facility”
means the assisted living facility known as Creekside Care Center located at 35253 Avenue H, Yucaipa, California 92399, with fifty-nine
(59) skilled nursing facility beds operated by the Yucaipa Operating Company.

 

“Creekside Mortgage”
means that certain Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing made by Creekside, dated as of
the Closing Date, granting and conveying to the Lender a first mortgage Lien on that certain Real Property commonly identified as Creekside
Care Center located at 35253 Avenue H, Yucaipa, California 92399, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

 

    - 5 -

     

    

 

“Creekside Operating
Company” means CRSCA HC LLC, a California limited liability company.

 

“Creekside Operations
Transfer Agreement” means that certain Management and Operations Transfer Agreement, dated as of April 8, 2021 by and between
the Creekside Operating Company and Avenue H Holdings, LLC, a Delaware limited liability company, as the same may be amended, supplemented
or modified from time to time.

 

“Creekside Prior
Operating Company” means Avenue H Holdings, LLC, a Delaware limited liability company.

 

“Creekside Real Estate
Lease” means that certain Lease dated as of July 2, 2021 between Creekside and the Creekside Operating Company regarding the
Creekside Facility, pursuant to which Creekside leases the Creekside Facility to the Creekside Operating Company and the related Interim
Sublease Agreement dated on or around July 2, 2021 by and between the Creekside Operating Company and the Creekside Prior Operating Company,
pursuant to which the Creekside Operating Company subleases the Creekside Real Property to the Creekside Prior Operating Company.

 

“Creekside Subordination,
Non-Disturbance and Attornment Agreement” means that certain Subordination, Non-Disturbance and Attornment Agreement by and
among Creekside, the Creekside Operating Company and Lender, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

 

“Default”
means an event, circumstance or condition which through the passage of time or the service of notice or both would (assuming no action
is taken to cure the same) mature into an Event of Default.

 

“Default Rate”
shall have the meaning ascribed to such term in Section 2.5(a) hereof.

 

“Deposit Accounts”
means any deposit, securities, operating, lockbox, cash collateral and blocked account, together with any funds, instruments or other
items credited to any such account from time to time, and all interest earned thereon, including, without limitation, the Lease Deposit
Accounts.

 

“Depreciation”
shall mean the total amounts added to depreciation, amortization, obsolescence, valuation and other proper reserves, as reflected on any
Person’s financial statements and determined in accordance with GAAP.

 

“Duly Authorized
Person” means the manager of any Credit Party or any duly authorized person of such Credit Party designated by such manager.

 

“EBITDA” means with respect
to any Person, for any period of determination, the sum for such period of: (i) Net Income for such period, plus (ii) Interest
Charges for such period (net of any interest income received by such Person and included in the calculation of Net Income), plus
(iii) federal and state income taxes paid in cash during such period, plus (iv) Depreciation, consistently applied.

 

    - 6 -

     

    

 

“EBITDAR”
means with respect to the Operating Companies on a consolidated basis, but limited, however, to the Operating Companies’ operation
of the Facilities, for any period of determination, an amount for such period equal to: (i) Net Income for such period, plus (ii)
Interest Charges for such period, plus (iii) federal and state income taxes paid in cash during such period, plus (iv) Depreciation,
consistently applied plus (v) Rent Expense minus (vi) a deemed capital expenditure amount equal to: (y) (1) $350 multiplied
by (2) 191 or, if different, the total amount of units at all Facilities divided by (z) the amount of months measured during such
period of determination; provided, however, that for purposes of calculating EBITDAR of the Operating Companies, the aggregate
expenses associated with management fees paid by the Operating Companies during any period of determination shall be deemed to be equal
to the greater of (y) five (5%) of the gross revenues of the Operating Companies or (z) the actual amount paid by the Operating Companies
in respect of management fees during such period. For the avoidance of doubt, the grants received by the Operating Companies from HHS
(or any other governmental program, whether federal, state or otherwise) shall be disregarded for purposes of determining, and shall not
result in any increase in, Net Income or EBITDAR of the Operating Companies.

 

“Environmental
Indemnity Agreement” means that certain Environmental Indemnity Agreement dated as of the Closing Date hereof made by
the Borrowers in favor of the Lender, in form and substance acceptable to the Lender, as the same may be amended or modified from time
to time.

 

“Environmental Laws”
means all applicable federal, state, local and foreign laws, statutes, ordinances, codes, rules, standards, regulations and common law,
now or hereafter in effect, and any applicable judicial or administrative interpretation thereof, including any applicable judicial or
administrative order, consent decree, order or judgment, imposing liability or standards of conduct for or relating to the regulation
and protection of human health, safety, the environment and natural resources (including ambient air, surface water, groundwater, wetlands,
land surface or subsurface strata, wildlife, aquatic species and vegetation). Without limiting the generality of the foregoing, Environmental
Laws include CERCLA, the Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. §§ 5101 et seq.), the
Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §§ 136 et seq.), the Solid Waste Disposal Act (42 U.S.C.
§§ 6901 et seq.), the Toxic Substance Control Act (15 U.S.C. §§ 2601 et seq.), the Clean Air Act
(42 U.S.C. §§ 7401 et seq.), the Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.), the
Occupational Safety and Health Act (29 U.S.C. §§ 651 et seq.), and the Safe Drinking Water Act (42 U.S.C. §§ 300(f)
et seq.), and any rules and regulations promulgated thereunder, and all analogous state, local and foreign counterparts or equivalents
and any transfer of ownership notification or approval statutes, and all common law relating to Hazardous Substances, or protection or
restoration of, or liability for damage to, human health, the environment or natural resources.

 

“Environmental
Notice” means any summons, citation, written directive, written information request, written notice of potential
responsibility, notice of deficiency or violation, written order, written claim, written complaint, investigation, proceeding,
judgment, or letter to any Borrower or any officer thereof from the United States Environmental Protection Agency or other federal,
state or local agency or authority, or any other Person concerning any intentional or unintentional act or omission that involves
Management of Hazardous Substances on or off the Real Property that could reasonably be expected to result in such Borrower
incurring a material liability or that could reasonably be expected to have a Material Adverse Effect, or the imposition of any Lien
on any property of a Borrower, or any alleged violation of or responsibility under Environmental Laws that is reasonably likely to
result in a Borrower incurring a material liability or that is reasonably likely to have a Material Adverse Effect, and, after
reasonable inquiry, any knowledge of any facts that is reasonably likely to give rise to any of the foregoing.

 

    - 7 -

     

    

 

“Environmental Reports”
shall have the meaning ascribed to such term in Section 5(b)(13) hereof.

 

“Equity Support Letters”
means, collectively, those certain letter agreements made by Summit in favor of each Operating Company, pursuant to which, among other
things, Summit has agreed to provide financial support in the form of working capital, in each case, pursuant to the terms and subject
to the conditions set forth therein.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, together with the regulations thereunder.

 

“ERISA Affiliate”
means any corporation, trade or business, which together with any Credit Party would be treated as a single employer under Section 4001
of ERISA.

 

“Event of Default”
shall have the meaning ascribed to such term in Section 10.1 hereof.

 

“Excluded Swap Obligation”
means, with respect to any guarantor of all or any part of the Liabilities, including the grant or pledge of a security interest to secure
such Liabilities, any Swap Obligation if, and to the extent that, the applicable guaranty or grant, pledge or security interest provided
by such Person with respect to the Liabilities is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order
of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Person’s
failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations
thereunder at the time such applicable guaranty or grant or pledge of security interest becomes effective with respect to such Swap Obligation,
but such exclusion shall only be effective for so long as the applicable guaranty or grant of security interest or pledge continues to
be illegal.

 

“Exit Fee”
means, with respect to any sale or transfer of one or more the Facilities: (i) one-half of one percent (0.5%) of the amount of the outstanding
principal balance of the Loan if such sale or transfer occurs on or prior to the second (2nd) year anniversary of the Closing
Date; and (ii) zero percent (0%) if such sale or transfer occurs after the second (2nd) year anniversary of the Closing Date.

 

“Facilities”
means, collectively, the Creekside Facility, the Mentone Facility and the Yucaipa Facility. “Facility” means any one
of the Facilities.

 

“Financing
Agreements” means, this Agreement, the Assignment of Representations and Warranties, Assignments of Rents and Leases, the
Environmental Indemnity Agreement, the Note, the Mortgages, the Pledge Agreement, any Interest Rate Protection Agreement, any Bank
Product Agreement, and any other instrument, document or agreement executed or delivered in connection with this Agreement or any of
the foregoing, in each case evidencing, securing or relating to the Loans and the Liabilities, whether heretofore, now, or hereafter
executed by or on behalf of any Credit Party, any Affiliate of the Credit Parties, or any other Person, and delivered to or in favor
of the Lender, together with all agreements and documents referred to therein or contemplated thereby, as each may be amended,
modified, replaced, restated or supplemented from time to time.

 

    - 8 -

     

    

 

“FIRREA”
means the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended from time to time.

 

“Fiscal Quarter”
means the three (3) month period ending on each March 31, June 30, September 30 and December 31 of each calendar year.

 

“Fiscal Year”
means the twelve (12) month period commencing on January 1 and ending on December 31 of each calendar year.

 

“Fixed Charge Coverage
Ratio” means, for any period of determination, on a trailing twelve-month basis, the ratio of (a) EBITDA of the Borrowers, to
(b) Fixed Charges of the Borrowers, provided, however, that for purposes of (i) the Fiscal Quarter ending September 30, 2021, the
Fixed Charge Coverage Ratio shall be tested on a trailing three month basis multiplied by 4, (ii) the Fiscal Quarter ending December 31,
2021, the Fixed Charge Coverage Ratio shall be tested on a trailing six month basis multiplied by 2, (iii) the Fiscal Quarter ending March
31, 2022, the Fixed Charge Coverage Ratio shall be tested on a trailing nine month basis multiplied by 1.33 and (iv) the Fiscal Quarter
ending June 30, 2022 and each Fiscal Quarter thereafter, the Fixed Charge Coverage Ratio shall be tested on a trailing twelve month basis

 

“Fixed Charges”
means, for any period of determination, the sum of, without duplication, (a) the aggregate amount of any and all advances and distributions
made by any Borrower to any Person, including, without limitation, to any Affiliate of a Borrower during such period, (b) Interest Charges
of the Borrowers for Indebtedness that is paid or becomes due during such period (net of any interest income received by such Person and
included in the calculation of Net Income), (c) regularly scheduled principal payments made by the Borrowers for Indebtedness during such
period, (d) unfinanced Capital Expenditures of the Borrowers made during such period and (e) payments made by the Borrowers in respect
of federal, state and local taxes during such period, including taxes assessed in connection with Real Property.

 

“GAAP”
means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or any
successor authority) that are applicable to the circumstances as of the date of determination.

 

“General
Intangibles” means “general intangibles” as defined in the Code, including, without limitation, any and all
general intangibles, choses in action, causes of action, rights to the payment of money (other than accounts receivable), and all
other intangible personal property of each Borrower of every kind and nature wherever located and whether currently owned or
hereafter acquired by such Borrower (other than accounts receivable), including, without limitation, corporate or other business
records, inventions, designs, patents, patent applications, service marks, service mark applications, trademark applications, brand
names, tradenames, trademarks and all goodwill symbolized thereby and relating thereto, tradestyles, trade secrets, registrations,
computer software, advertising materials, distributions on certificated and uncertificated securities, investment property,
securities entitlements, goodwill, operational manuals, product formulas for industrial processes, blueprints, drawings, copyrights,
copyright applications, rights and benefits under contracts, licenses, license agreements, permits, approvals, authorizations which
are associated with the operation of such Borrower’s business and granted by any Person, franchises, customer lists, deposit
accounts, tax refunds, tax refund claims, and any letters of credit, guarantee claims, security interests or other security held by
or granted to such Borrower to secure payment by an account debtor of any of such Borrower’s accounts receivable, and, to the
maximum extent permitted by applicable law, any recoveries or amounts received in connection with any litigation or settlement of
any litigation.

 

    - 9 -

     

    

 

“Hazardous Substances”
means any substance, material or waste that is regulated by, or forms the basis of liability now or hereafter under, any Environmental
Laws, including any material or substance that is (a) defined as a “solid waste,” “hazardous waste,” “hazardous
material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,”
“pollutant,” “contaminant,” “hazardous constituent,” “special waste,” “toxic substance,”
“medical wastes” or other similar term or phrase under any Environmental Laws, or (b) petroleum or any fraction or by-product
thereof, asbestos, polychlorinated biphenyls (PCB’s), or any radioactive substance.

 

“Healthcare Laws”
means all applicable laws relating to the possession, control, warehousing, marketing, sale and distribution of pharmaceuticals, the operation
of medical or senior housing facilities (such as, but not limited to, nursing homes, skilled nursing facilities, rehabilitation hospitals,
intermediate care facilities, assisted living and adult care facilities and other long-term care facilities), patient healthcare, patient
healthcare information, patient abuse, the quality and adequacy of medical care, rate setting, equipment, personnel, operating policies,
fee splitting, including, without limitation, (a) all federal and state fraud and abuse laws, including, but not limited to the federal
Anti-Kickback Statute (42 U.S.C. §1320a-7b(6)), the Stark Law (42 U.S.C. §1395nn), the civil False Claims Act (31 U.S.C. §3729
et seq.); (b) HIPAA, (c) Medicare; (d) Medicaid; (e) TRICARE and CHAMPUS; (f) quality, safety and accreditation standards and requirements
of all applicable state laws or regulatory bodies; (g) all laws, policies, procedures, requirements and regulations pursuant to which
licenses, approvals and accreditation certificates are issued in order to operate medical or senior housing facilities; and (h) any and
all other applicable health care laws (whether federal, state/commonwealth, or otherwise), regulations, manual provisions, policies and
administrative guidance, as each of the foregoing may be amended from time to time.

 

“HHS” means
the United States Department of Health and Human Services and any Person succeeding to the functions thereof.

 

    - 10 -

     

    

 

“HIPAA”
means the Health Insurance Portability and Accountability Act of 1996, as the same may be amended, modified or supplemented from time
to time, and any successor statute thereto, and any and all rules or regulations promulgated from time to time thereunder

 

“Indebtedness”
with respect to any Person means, as of the date of determination thereof, (a) all of such Person’s indebtedness for borrowed money,
(b) all indebtedness of such Person or any other Person secured by any Lien with respect to any property or asset owned or held by such
Person, regardless whether the indebtedness secured thereby shall have been assumed by such Person or such Person has become liable for
the payment thereof, (c) all Capitalized Lease Obligations, or conditional sale or other title retention agreement with respect to property
used and/or acquired by such Person even though the rights and remedies of the lessor, seller and/or lender thereunder are limited to
repossession of such property, (d) all unfunded pension fund obligations and liabilities, (e) all obligations of such Person evidenced
by bonds, debentures, notes or similar instruments, (f) all obligations in respect of letters of credit, whether or not drawn, and bankers’
acceptances issued for the account of such Person, (g) deferred and/or accrued taxes, (h) all guarantees by such Person, or any undertaking
by such Person to be liable for, the debts or obligations of any other Person and (i) all other indebtedness of such Person, now or hereafter
owing, due or payable, however evidenced, created, incurred or owing and however arising, which is customarily identified as indebtedness
on a balance sheet or financial statement.

 

“Indemnified Parties”
shall have the meaning ascribed to such term in Section 11.16 hereof.

 

“Interest Charges”
shall mean, as to any Person, for any period, the sum of: (a) all interest, charges and related expenses payable with respect to that
fiscal period to a lender in connection with borrowed money or the deferred purchase price of assets that are treated as interest in accordance
with GAAP, plus (b) the portion of Capitalized Lease Obligations with respect to that fiscal period that should be treated as interest
in accordance with GAAP, plus (c) all charges paid or payable (without duplication) during that period with respect to, in the
case of a Borrower or an Operating Company, any Interest Rate Protection Agreements.

 

“Interest Rate Protection
Agreement” means any interest rate, currency or commodity swap agreement, cap agreement or collar agreement or any other so-called
“swap” agreement, or similar arrangement entered into at any time with the intent of protecting against fluctuations in interest
rates, between any Credit Party and the Lender (or any Affiliate of the Lender) relating to any of the Liabilities, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

 

“Lease Deposit Accounts”
has the meaning set forth in Section 6.8 of this Agreement. “Lease Deposit Account” means any of the Lease Deposit
Accounts as the context requires.

 

“Liabilities”
means any and all of any Credit Party’s liabilities, obligations and Indebtedness to the Lender of any and every kind and
nature, whether heretofore, now or hereafter owing, arising, due or payable and howsoever evidenced, created, incurred, acquired, or
owing, whether primary, secondary, direct, indirect, contingent, absolute, fixed or otherwise (including, without limitation,
payments of or for principal, interest, default interest, fees, costs, expenses, and/or indemnification, and obligations of
performance, and any interest that accrues after commencement of any insolvency or bankruptcy proceeding regardless of whether
allowed or allowable in whole or in part as a claim in any such insolvency or bankruptcy proceeding), under, evidenced by or
relating to this Agreement (including, without limitation, the Loan) or the other Financing Agreements to which any Credit Party is
a party (including, without limitation, any Interest Rate Protection Agreement), all Bank Product Obligations, and any refinancings,
substitutions, extensions, renewals, replacements and modifications for or of any or all of the foregoing. provided, however,
that with respect to any guarantor of the Liabilities, the Liabilities shall not include any Excluded Swap Obligation in respect of
such Person.

 

    - 11 -

     

    

 

“Libor Base Rate”
means a rate of interest equal to (a) the per annum rate of interest at which United States dollar deposits for a period equal to the
relevant Libor Interest Period are offered in the London Interbank Eurodollar market at 11:00 a.m. (London time) two Business Days prior
to the commencement of such Libor Interest Period (or three Business Days prior to the commencement of such Libor Interest Period if banks
in London, England were not open and dealing in offshore United States dollars on such second preceding Business Day), as displayed in
the Bloomberg Financial Markets system (or other authoritative source selected by the Lender in its sole discretion), divided by (b) a
number determined by subtracting 1.00 from the then stated maximum reserve percentage for determining reserves to be maintained by member
banks of the Federal Reserve System for Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of liabilities
under Regulation D) such rate to remain fixed for such Libor Interest Period; provided, however, that the foregoing quotient shall not
be less than 1.00%. The Lender’s determination of the Libor Base Rate shall be conclusive, absent manifest error.

 

“Libor Interest Period”
means, for the initial Libor Interest Period, the period commencing on the Closing Date and ending August 5, 2021, any (ii) for each Libor
Interest Period thereafter, successive one (1) month periods; provided, however, that:  (a) each Libor Interest Period
shall commence on the day on which the preceding Libor Interest Period for such Libor Loan expires, with interest for such day to be calculated
at the Libor Rate in effect for the new Libor Interest Period; (b) whenever the last day of any Libor Interest Period would otherwise
occur on a day other than a Business Day, the last day of such Libor Interest Period shall be extended to occur on the next succeeding
Business Day; (c) whenever the first day of any Libor Interest Period occurs on a date for which there is no numerically corresponding
date in the month in which such Libor Interest Period terminates, such Libor Interest Period shall end on the last day of such month,
unless such day is not a Business Day, in which case the Libor Interest Period shall terminate on the first Business Day of the following
month; and (D) if at any time the Libor Interest Period for a Libor Loan expires less than one month before the Maturity Date, such Libor
Loan shall automatically renew at the then current Libor Rate for a Libor Interest Period terminating on the Maturity Date.

 

“Libor Loan”
means a Loan which bears interest at a Libor Rate.

 

“Libor Rate”
means, with respect to a Libor Loan for the relevant Libor Interest Period, the sum of the Libor Base Rate applicable to that Libor Interest
Period, plus the Applicable Libor Margin.

 

    - 12 -

     

    

 

“Lien”
means any lien, security interest, mortgage, pledge, hypothecation, collateral assignment, or other charge, encumbrance or preferential
arrangement, including, without limitation, the retained security title of a conditional vendor or lessor.

 

“Loan”
shall have the meaning ascribed to such term in Section 2.1 hereof.

 

“Loan Account”
shall have the meaning ascribed to such term in Section 2.3 hereof.

 

“Manage”
or “Management” means to generate, handle, manufacture, process, treat, store, use, re-use, refine, recycle, reclaim,
blend or burn for energy recovery, incinerate, accumulate speculatively, transport, transfer, dispose of, release, threaten to release
or abandon Hazardous Substances.

 

“Management Agreements”
means, as applicable, the Administrative Services Agreement by and between each Operating Company and the Management Company, with respect
to the provision of certain services for each Facility, each dated as of July 2, 2021 as in effect as of such date.

 

“Management Company”
means, Rockwell Healthcare LLC, a California limited liability company.

 

“Material Adverse
Change” or “Material Adverse Effect” means either (a) the termination of any Operating Company’s continued
participation in Medicare or Medicaid reimbursement program for any reason, or (b) any other change, event, action, condition or effect
which, individually or in the aggregate, either (i) impairs the legality, validity or enforceability of this Agreement or any Financing
Agreement, (ii) impairs the fully perfected first priority status of the Liens granted hereunder and under the Financing Agreements in
favor of the Lender in the Collateral or any other assets pledged in favor of Lender to secure the Liabilities or any portion thereof
(subject only to the Permitted Liens) or (iii) materially and adversely affects the business, property or assets (whether real or personal),
operations, performance, or condition (financial or otherwise) of any Borrower or any or all of the Collateral, or the ability of any
Borrower to repay the Liabilities when due or declared due or the ability of any Credit Party’s ability to perform the obligations
under this Agreement and the Financing Agreements to which it is a party.

 

“Maturity Date”
means, the earlier of (i) July 2, 2024, (ii) such other date on which the Commitment shall terminate pursuant to Section 10.2 hereof,
or (iii) such other date as is mutually agreed in writing among the Borrowers and the Lender.

 

“Maximum Facility”
means, as of the Closing Date, an amount equal to Fifteen Million and No/100 Dollars ($15,000,000.00).

 

“Medicaid”
means the medical assistance programs administered by state agencies and approved by CMS pursuant to the terms of Title XIX of the Social
Security Act, codified at 42 U.S.C. 1396 et seq.

 

    - 13 -

     

    

 

“Medicare”
means the program of health benefits for the aged and disabled administered by CMS pursuant to the terms of Title XVIII of the Social
Security Act, codified at 42 U.S.C. 1395 et seq.

 

“Medicare Advance
Payment Reserve Escrow Arrangement” means an escrow arrangement among the Prior Operating Companies, the Operating Companies
and the escrow agent party thereto, pursuant to which, among other things, the Prior Operating Companies have deposited or caused to be
deposited an aggregate amount of not less than Three Hundred Fifty Four Thousand Four Hundred Ninety Five and 79/100 Dollars ($354,495.79)
to be deposited in the escrow account subject thereto, as the same may be amended, restated, supplemented or otherwise modified from time
to time.

 

“Medicare Advance
Payments” means payments by CMS under Medicare contemplated under Section 2501 of the Continuing Appropriations Act, 2021 and
Other Extensions Act, or any other similar program, so long as such payments are allowed to be offset against items and services furnished
by the applicable Prior Operating Companies. As of the Closing Date, the aggregate amount of Medicare Advance Payments Received by the
Prior Operating Companies is $586,941.00.

 

“Mentone” means Summit Mentone
LLC, a Delaware limited liability company.

 

“Mentone Assignment
of Rents and Leases” means that certain Assignment of Rents and Leases made by Mentone, dated as of the Closing Date, as the
same may be amended, supplemented or modified from time to time.

 

“Mentone Facility”
means the assisted living facility known as Millcreek Manor located at 2278 Nice Avenue, California 92399, with fifty (50) skilled nursing
facility beds operated by the Mentone Operating Company.

 

“Mentone Mortgage”
means that certain Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing made by Mentone, dated as of the
Closing Date, granting and conveying to the Lender a first mortgage Lien on that certain Real Property commonly identified as Millcreek
Manor located at 2278 Nice Avenue, California 92399, as the same may be amended, restated, supplemented or otherwise modified from time
to time.

 

“Mentone Operating
Company” means UNICA HC LLC, a California limited liability company.

 

“Mentone Operations
Transfer Agreement” means that certain Management and Operations Transfer Agreement, dated as of April 8, 2021 by and between
the Mentone Operating Company and Nice Avenue, LLC, a Delaware limited liability company, as the same may be amended, supplemented or
modified from time to time.

 

“Mentone Prior Operating
Company” means Nice Avenue, LLC, a Delaware limited liability company.

 

    - 14 -

     

    

 

“Mentone Real Estate
Lease” means that certain Lease dated as of July 2, 2021 between Mentone and the Mentone Operating Company regarding the Mentone
Facility, pursuant to which Mentone leases the Mentone Facility to the Mentone Operating Company and the related Interim Sublease Agreement
dated on or around July 2, 2021 by and between the Mentone Operating Company and the Mentone Prior Operating Company, pursuant to which
the Mentone Operating Company subleases the Mentone Real Property to the Mentone Prior Operating Company.

 

“Mentone Subordination,
Non-Disturbance and Attornment Agreement” means that certain Subordination, Non-Disturbance and Attornment Agreement by and
among Mentone, the Mentone Operating Company and Lender, as the same may be amended, restated, supplemented or otherwise modified from
time to time.

 

“Minimum EBITDAR
Amount” means $600,000.

 

“Mortgages”
means collectively, the Creekside Mortgage, the Mentone Mortgage and the Yucaipa Mortgage.

 

“Multiemployer Plan”
shall have the meaning ascribed to such term in Section 7.19 hereof.

 

“Net Income”
shall mean, with respect to any Person for any period, the net income (or loss) of such Person for such period as determined in accordance
with GAAP, excluding any gains from Asset Dispositions, any extraordinary gains and any gains from discontinued operations.

 

“Note”
shall have the meaning ascribed to such term in Section 2.1 hereof.

 

“OFAC Lists”
means, collectively, the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control, the
Department of the Treasury pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 2001) and/or any other list of terrorists
or terrorist organizations maintained pursuant to any of the rules and regulations of or by the Office of Foreign Asset Control, the Department
of the Treasury or pursuant to any other applicable Executive Orders, as such lists may be amended or supplemented from time to time.

 

“Operating Companies”
means, collectively, the Creekside Operating Company, the Mentone Operating Company and the Yucaipa Operating Company. “Operating
Company” means any of the Operating Companies.

 

“Operations Transfer
Agreements” means, collectively, the Creekside Operations Transfer Agreement, the Mentone Operations Transfer Agreement and
the Yucaipa Operations Transfer Agreement.

 

“Parent”
shall mean Summit Healthcare Operating Partnership, L.P., a Delaware limited partnership.

 

“PBGC”
shall have the meaning ascribed to such term in Section 7.19 hereof.

 

    - 15 -

     

    

 

“Permitted Liens”
shall have the meaning ascribed to such term in Section 9.1 hereof.

 

“Permitted Prepayment”
means the refinancing of the Liabilities in full in cash through the U.S. Department of Housing and Urban Development.

 

“Person”
means any individual, sole proprietorship, partnership, joint venture, trust, limited liability company, unincorporated organization,
association, corporation, institution, entity, party, or government (whether national, federal, state, provincial, county, city, municipal
or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof).

 

“Plan”
shall have the meaning ascribed to such term in Section 7.19 hereof.

 

“Pledge Agreement”
means the Pledge Agreement dated as of the Closing Date executed by Parent in favor of the Lender, pursuant to which Parent has pledged
all of the Capital Securities of each Borrower to Lender as security for the Liabilities, as the same may be amended, restated, supplemented
or otherwise modified from time to time.

 

“Prepayment Premium”
means, with respect to prepayment of the Loan: (i) three percent (3%) of the amount of the outstanding principal balance of the Loan prepaid
if such prepayment occurs on or prior to the first (1st) year anniversary of the Closing Date; (ii) two percent (2%) of the
amount of the outstanding principal balance of the Loan prepaid if such prepayment occurs on or prior to the second (2nd) year
anniversary of the Closing Date but after the first anniversary of the Closing Date; and (iii) one percent (1%) of the amount of the outstanding
principal balance of the Loan prepaid if such prepayment occurs on or prior to the third (3rd) year anniversary of the Closing
Date but after the second year anniversary of the Closing Date; provided, however, that, to the extent any prepayment of the Loan occurs
in connection with the Permitted Prepayment, the Prepayment Premium shall be 0%.

 

“Prior Operating
Companies” means, collectively, the Creekside Prior Operating Company, the Mentone Prior Operating Company and the Yucaipa Prior
Operating Company.

 

“Prohibited Transaction”
shall have the meaning ascribed to such term in ERISA.

 

“Property”
means, as applicable, any and all real property owned, leased, sub-leased or used at any time by any Borrower, including, without limitation,
the Real Property.

 

“Qualified ECP Guarantor”
means, in respect of any Swap Obligation, any guarantor that has total assets exceeding $10,000,000 at the time the relevant guaranty
or grant of the relevant security interest becomes or would become effective with respect to such Swap Obligation or such other person
as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder
and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under
Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Rate Option”
means the Libor Rate or the Base Rate.

 

    - 16 -

     

    

 

“Real Estate Leases”
means, collectively, the Creekside Real Estate Lease, the Mentone Real Estate Lease and the Yucaipa Real Estate Lease. “Real
Estate Lease” means any of the Real Estate Leases.

 

“Real Property”
means any real estate on which any Facility is located.

 

“Release”
means any actual or threatened spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping
or disposing of Hazardous Substances into the environment, as “environment” is defined in CERCLA.

 

“Rent Expense”
shall mean all rental or lease expense of the Operating Companies in connection with the Facilities leased by the Borrowers to the Operating
Companies.

 

“Respond”
or “Response” means any action taken pursuant to Environmental Laws to correct, remove, remediate, cleanup,
prevent, mitigate, monitor, evaluate, investigate or assess the Release of a Hazardous Substance.

 

“Subordinated Debt”
means any and all Indebtedness owing by any Borrower to a third party that has been subordinated to the Liabilities in writing on terms
and conditions satisfactory to the Lender in its sole and absolute determination.

 

“Subordination, Non-Disturbance
and Attornment Agreements” means, collectively, the Creekside Subordination, Non-Disturbance and Attornment Agreement, the Mentone
Subordination, Non-Disturbance and Attornment Agreement, and the Yucaipa Subordination, Non-Disturbance and Attornment Agreement.

 

“Summit”
means Summit Healthcare REIT, Inc., a Maryland corporation.

 

“Swap Obligation”
means any obligation under or pursuant to any Hedging Agreement or any other agreement, contract or transaction that constitutes a “swap”
within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Tax Code”
shall have the meaning ascribed to such term in Section 7.19 hereof.

 

“Tax Liability Amount”
shall have the meaning ascribed to such term in Section 9.9 hereof.

 

“Taxes”
shall have the meaning ascribed to such term in Section 3.3 hereof.

 

“TRICARE”
means the medical program for active duty members, qualified family members, CHAMPUS eligible retirees and their family members and survivors,
of all uniformed services.

 

“Yucaipa” means Summit Yucaipa
LLC, a Delaware limited liability company.

 

“Yucaipa Assignment
of Rents and Leases” means that certain Assignment of Rents and Leases made by Yucaipa, dated as of the Closing Date, as the
same may be amended, supplemented or modified from time to time.

 

    - 17 -

     

    

 

“Yucaipa Facility”
means the assisted living facility known as Calimesa Post-Acute located at 13542 2nd Street, Yucaipa, California 92399, with
eighty-two (82) skilled nursing facility beds operated by the Yucaipa Operating Company.

 

“Yucaipa Mortgage”
means that certain Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing made by Yucaipa, dated as of the
Closing Date, granting and conveying to the Lender a first mortgage Lien on that certain Real Property commonly identified as Calimesa
Post-Acute located at 13542 2nd Street, Yucaipa, California 92399, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

 

“Yucaipa Operating
Company” means YUHCA HC LLC, a California limited liability company.

 

“Yucaipa Operations
Transfer Agreement” means that certain Management and Operations Transfer Agreement, dated as of April 8, 2021 by and between
the Yucaipa Operating Company and Calimesa Holdings, LLC, a Delaware limited liability company, as the same may be amended, supplemented
or modified from time to time.

 

“Yucaipa Prior Operating
Company” means Calimesa Holdings, LLC, a Delaware limited liability company.

 

“Yucaipa Real Estate
Lease” means that certain Lease dated as of July 2, 2021 between Yucaipa and the Yucaipa Operating Company regarding the Yucaipa
Facility, pursuant to which Yucaipa leases the Yucaipa Facility to the Yucaipa Operating Company and the related Interim Sublease Agreement
dated on or around July 2, 2021 by and between the Yucaipa Operating Company and the Yucaipa Prior Operating Company, pursuant to which
the Yucaipa Operating Company subleases the Yucaipa Real Property to the Yucaipa Prior Operating Company.

 

“Yucaipa Subordination,
Non-Disturbance and Attornment Agreement” means that certain Subordination, Non-Disturbance and Attornment Agreement by and
among Yucaipa, the Yucaipa Operating Company and Lender, as the same may be amended, restated, supplemented or otherwise modified from
time to time.

 

1.2             
Accounting Terms. Any accounting terms used in this Agreement which are not specifically defined herein shall have the meanings
customarily given to such terms in accordance with GAAP. If changes in GAAP shall be mandated by the Financial Accounting Standards Board
or shall be recommended by the Borrowers’ certified public accountants, and such changes would materially modify the interpretation
or computation of the financial covenants set forth in Section 9.12 hereof at the time of execution hereof, then in such event
such changes shall not be followed in calculating such financial covenants.

 

1.3             
Others Defined in Code. All terms contained in this Agreement (and which are not otherwise specifically defined herein)
shall have the meanings provided by the Code to the extent the same are used or defined therein.

 

1.4              Other
Interpretive Provisions.

 

    - 18 -

     

    

 

(a)       The
meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. Whenever the context so requires,
the neuter gender includes the masculine and feminine, the single number includes the plural, and vice versa.

 

(b)       Section
and Schedule references are to this Agreement unless otherwise specified. The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of
this Agreement.

 

(c)       The
term “including” is not limiting, and means “including, without limitation”.

 

(d)       In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from and
including”; the words “to” and “until” each mean “to but excluding”, and the word “through”
means “to and including”.

 

(e)       Unless
otherwise expressly provided herein, (i) references to agreements (including this Agreement and the other Financing Agreements) and other
contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements and other modifications thereto,
but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms of this Agreement
or any Financing Agreement, and (ii) references to any statute or regulation shall be construed as including all statutory and regulatory
provisions amending, replacing, supplementing or interpreting such statute or regulation.

 

1.5              Rates.
Lender does not warrant, nor accept responsibility, nor shall Lender have any liability with respect to the administration, submission
or any other matter related to the rates in the definition of “Libor Rate” or with respect to any comparable or successor
rate thereto (including any Benchmark Replacement) or the effect of any of the foregoing, or of any Benchmark Replacement Conforming Changes,
including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate
will be similar to, or produce the same value or economic equivalence of, the Libor Rate or have the same volume or liquidity as did the
London interbank offered rate prior to its discontinuance or unavailability.

 

2.                 
COMMITMENT; INTEREST; FEES.

 

2.1       Loan.
On the terms and subject to the conditions set forth in this Agreement, and provided there does not then exist an Event of Default,
the Lender shall, following the execution of this Agreement by the Borrowers and the Lender, extend in one (1) advance on the
Closing Date a term loan (the “Loan”) to the Borrowers in an aggregate principal amount equal to the lesser of
(y) Fifteen Million and No/100 Dollars ($15,000,000.00) or (z) the Maximum Facility. The outstanding principal balance of the Loan
shall be repaid by Borrower in equal principal installments based on a twenty-five (25) year amortization schedule in consecutive
monthly installments as set forth below; provided, however, that unless an Event of Default is in existence or
Borrowers otherwise direct Lender in writing, each scheduled installment of principal paid by Borrowers shall be deposited into the
Cash Loan Guaranty Fund in lieu of releasing such installment to Lender for application to the outstanding principal balance of the
Loan.  If the Liabilities are repaid in full on or before the Maturity Date, the funds contained in the Cash Loan Guaranty Fund
shall be released to Borrowers in connection with such repayment.  If the Liabilities are not repaid in full on or before the
Maturity Date, or at any time during the existence of an Event of Default, the funds then contained in the Cash Loan Guaranty Fund
shall be released to Lender for application to the outstanding principal balance of the Liabilities.  For avoidance of doubt,
the outstanding principal balance of the Loan, unreduced by the funds contained in Cash Loan Guaranty Fund, shall bear interest in
accordance with Section 2.5. 

 

    - 19 -

     

    

 

	Closing Date through the First anniversary of the Closing Date:	 	No Principal Due (interest only)
	 	 	 
	First Anniversary of the Closing Date through the Second Anniversary of the Closing Date:	 	$310,000, annually ($25,834/month)
	 	 	 
	Second Anniversary of the Closing Date and thereafter:	 	$330,000 annually ($27,500/month)

 

All Liabilities which remain outstanding on the
Maturity Date shall be due and payable on the Maturity Date. Each of the foregoing payments shall be paid together with interest accrued
thereon, each payable on or before the fifth (5th) day of each calendar month, commencing August 5, 2021, and otherwise in
accordance with Section 2.5 hereof, with a final installment of the aggregate unpaid principal balance of the Loan, together with
interest accrued thereon, payable on the Maturity Date; provided, however, that interest payments shall be due and payable in accordance
with Section 2.5(b) commencing on and after August 5, 2021 notwithstanding the fact that principal payments will not commence until August
5, 2022. Monthly interest payments on the Loan shall be computed using the interest rate then in effect and based on the outstanding principal
balance of the Loan. Any amounts paid or applied to the principal balance of the Loan (whether by mandatory prepayment or otherwise) may
not be reborrowed hereunder. The Lender's commitment hereunder to make the Loan is hereinafter called the “Commitment”.
At the Maturity Date, the outstanding principal balance of the Loan shall be immediately due and payable, together with any remaining
accrued interest thereon, to the Lender by the Borrowers. The Loan shall be evidenced by a promissory note (hereinafter, as the same may
be amended, modified or supplemented from time to time, and together with any renewals or extensions thereof or exchanges or substitutions
therefor, called the “Note”), duly executed and delivered by the Borrowers, in form and substance reasonably satisfactory
to the Lender, with appropriate insertions, dated the Closing Date, payable to the order of the Lender in the principal amount of Fifteen
Million Five Hundred Thousand and No/100 Dollars ($15,00,000.00). THE PROVISIONS OF THE NOTE NOTWITHSTANDING, THE LOAN SHALL BECOME IMMEDIATELY
DUE AND PAYABLE UPON THE EARLIEST TO OCCUR OF (X) THE MATURITY DATE; (Y) THE ACCELERATION OF THE LIABILITIES PURSUANT TO SECTION 10.2
HEREOF; AND (Z) THE TERMINATION OF THIS AGREEMENT (WHETHER BY PREPAYMENT OR OTHERWISE) IN ACCORDANCE WITH ITS TERMS.

 

    - 20 -

     

    

 

2.2       Reserved.

 

2.3       The
Borrowers’ Loan Account. The Lender shall maintain a loan account (the “Loan Account”) on its books for the
Borrowers in which shall be recorded (a) all advances of the Loan made by the Lender to the Borrowers pursuant to this Agreement, (b)
all payments made by the Borrowers on or with respect to such Loan, and (c) all other appropriate debits and credits as provided in this
Agreement, including, without limitation, all fees, charges, expenses and interest. All entries in the Loan Account shall be made in accordance
with the Lender’s customary accounting practices as in effect from time to time. The Borrowers, jointly and severally, promise to
pay the amount reflected as owing by Borrowers under their Loan Account and all of their other obligations hereunder as such amounts become
due or are declared due pursuant to the terms of this Agreement. Notwithstanding the foregoing, the failure so to record any such amount
or any error in so recording any such amount shall not limit or otherwise affect the Borrowers’ joint and several obligations under
this Agreement or under the Note to repay the outstanding principal amount of the Loan together with all interest accruing thereon.

 

2.4       Statements.
The Loan to the Borrowers, and all other debits and credits provided for in this Agreement, shall be evidenced by entries made by the
Lender in its internal data control systems showing the date, amount and reason for each such debit or credit. Until such time as the
Lender shall have rendered to the Borrowers written statements of account as provided herein, the balance in the Loan Account, as set
forth on the Lender’s most recent computer printout, shall be rebuttably presumptive evidence of the amounts due and owing the Lender
by the Borrowers. From time to time the Lender shall render to the Borrowers a statement setting forth the balance of the Loan Account,
including principal, interest, expenses and fees. Each such statement shall be subject to subsequent adjustment by the Lender but shall,
absent manifest errors or omissions, be presumed correct and binding upon the Borrowers.

 

2.5       Interest.
(a) The Borrower agrees to pay to the Lender interest on the daily outstanding principal balance of the Loan, at the Libor Rate; provided,
however, that if Libor Loans are unavailable pursuant to the terms of this Agreement, then at the Base Rate; provided, however,
that immediately following the occurrence and during the continuance of an Event of Default, and notwithstanding any other provisions
of this Agreement to the contrary, the Borrowers agree to pay to the Lender interest on the outstanding principal balance of the Loans
at the per annum rate of three percent (3%) plus the rate otherwise payable hereunder with respect to such Loans (the “Default
Rate”).

 

(b)               Accrued
interest on each Libor Loan shall be payable on the last day of the Libor Interest Period relating to such Libor Loan and at
maturity, commencing with the first such last day of the initial Libor Interest Period; provided, however, that to the extent Libor
Loans are unavailable under applicable law or pursuant to the terms of this Agreement, all accrued interest on any Base Rate Loans
outstanding as a result of such unavailability shall be payable in arrears on or before the fifth (5th) calendar day of each month
and at maturity. Monthly interest payments on the Loans shall be computed using the interest rate then in effect and based on the
outstanding principal balance of the Loans. At the Maturity Date, the outstanding principal balance of the Loan shall be immediately
due and payable, together with any remaining accrued interest thereon. Interest shall be computed on the basis of a year of three
hundred sixty (360) days for the actual number of days elapsed. If any payment of principal of, or interest on, the Note falls due
on a day that is not a Business Day, then such due date shall be extended to the next following Business Day, and additional
interest shall accrue and be payable for the period of such extension.

 

    - 21 -

     

    

 

2.6       Method
for Making Payments; Authorization to Debit Lease Deposit Account. All payments that the Borrowers are required to make to the Lender
under this Agreement or under any of the other Financing Agreements shall be made in immediately available funds not later than 1:00 p.m.
(Chicago time) on the date of payment at the Lender’s office at 120 S. LaSalle St., Chicago, Illinois 60603, or at such other place
as the Lender directs in writing from time to time, or, in the Lender’s sole and absolute discretion, by appropriate debits to the
Lease Deposit Accounts or other operating accounts of the Borrowers. Each Borrower hereby irrevocably authorizes and instructs Lender
to direct debit any of such Borrower’s operating accounts with Lender, including, without limitation, the Lease Deposit Accounts,
for all principal, interest, fees and expenses due hereunder with respect to the Loan and the Liabilities or as otherwise required to
be deposited into the Cash Loan Guaranty Fund. Payments made after 1:00 p.m. (Chicago time) shall be deemed to have been made on the next
succeeding Business Day.

 

2.7       Term
of this Agreement. The Borrowers shall have the right to terminate this Agreement following prepayment of all of the Liabilities as
provided under Section 2.8 hereof; provided, however, that all of the Lender’s rights and remedies under this
Agreement and the Liens created under Section 6.1 hereof and under any of the other Financing Agreements, shall survive such termination
until all of the Liabilities have been indefeasibly paid in full (including, without limitation, all default interest and all interest
accrued after commencement of any insolvency or bankruptcy proceeding, whether or not the foregoing would be or is allowed or disallowed
in whole or in part in any such insolvency or bankruptcy proceeding), and termination of the Lender’s Commitment hereunder. In addition,
the Liabilities may be accelerated as set forth in Section 10.2 hereof. Upon the effective date of termination, all of the Liabilities
shall become immediately due and payable without notice or demand. Notwithstanding any termination, until all of the Liabilities shall
have been indefeasibly paid and satisfied, the Lender shall be entitled to retain its Liens in and to all existing and future Collateral.

 

2.8       Optional
Prepayment of Loan. The Borrowers may, at their option, permanently prepay, at any time during the term of this Agreement all of
the Loan or any portion thereof but in minimum amounts of no less than One Hundred Thousand Dollars ($100,000) (or increments of
Twenty Five Thousand ($25,000) in excess of such minimum), subject to the following conditions: (i) not less than ten (10) days
prior to the date upon which the Borrower desires to make any such prepayment, Borrower shall deliver to the Lender a written notice
of its intention to prepay all or such portion of the Loan, which notice shall be irrevocable and state the type of Loan to be
prepaid, the amount of the prepayment and the prepayment date, and (ii) the Borrower shall pay (A) the Prepayment Premium, if
applicable, (in view of the impracticality and extreme difficulty of ascertaining actual damages and by mutual agreement of the
parties as to a reasonable calculation of Lender's lost profits as a result of such prepayment), (B) any amount due pursuant to Section
3.4 hereof, and (C) any amounts due in connection with such prepayment or due under any Interest Rate Protection Agreement. Any
such Prepayment Premium shall constitute a part of the Liabilities and be secured by the Collateral. Prepayments of the Loan shall
be applied against installments payable under such applicable Note in the inverse order of maturity. Amounts prepaid on account of
any of the Loan may not be reborrowed. The parties agree that the Prepayment Premium is not a penalty.

 

    - 22 -

     

    

 

2.9       Limitation
on Charges. It being the intent of the parties that the rate of interest and all other charges to the Borrowers be lawful, if for
any reason the payment of a portion of the interest or other charges otherwise required to be paid under this Agreement would exceed the
limit which the Lender may lawfully charge the Borrowers, then the obligation to pay interest or other charges shall automatically be
reduced to such limit and, if any amounts in excess of such limit shall have been paid, then such amounts shall at the sole option of
the Lender either be refunded to the Borrowers or credited to the principal amount of the Liabilities (or any combination of the foregoing)
so that under no circumstances shall the interest or other charges required to be paid by the Borrowers hereunder exceed the maximum rate
allowed by applicable law, and Borrowers shall not have any action against Lender for any damages arising out of the payment or collection
of any such excess interest.

 

2.10       Method
of Selecting Rate Options; Additional Provisions Regarding Libor Loans. At all times during the
term of this Agreement that Libor Loans are available under applicable law and the terms of this Agreement, the Borrowers hereby select
the Libor Rate with respect to all, but not less than all, of the amount of the Loan from time to time outstanding. Notwithstanding anything
contained herein to the contrary, the Loan shall not bear interest at the Base Rate unless Libor Loans are unavailable as determined by
Lender. Subject to Section 3 of this Agreement, in the event the Lender determines that Libor Loans are unavailable for any reason, the
Loan shall automatically convert to a Base Rate Loan. In such event, the Borrowers hereby agree that, as soon as Lender has notified Borrower
that Libor Loans have become available, the Borrowers shall have automatically be deemed to have selected the Libor Rate with respect
to all, but not less than all, of the amount of the Loan outstanding at such time with a Conversion Date as selected by the Lender. Each
Libor Loan shall bear interest from and including the first day of the Libor Interest Period applicable thereto to (but not including)
the last day of such Libor Interest Period at the interest rate applicable to such Libor Loan. At the end of a Libor Interest Period for
an outstanding Libor Loan, as long as no Default or Event of Default exists at any time, such Loan will automatically be continued for
successive Libor Interest Periods subject to the first proviso in Section 2.5(a) hereof. An outstanding Base Rate Loan may be converted
to a Libor Loan as set forth in this Section 2.10. Unless otherwise agreed to by Lender, the Borrowers may not select a Libor Rate for
a Loan if there exists a Default or Event of Default, and in such event, Lender may elect to indicate that Libor Loans shall be deemed
“unavailable” for purposes of this Agreement. No Libor Interest Periods may expire after the end of the Maturity Date and,
in such case, Loans will bear interest at the Base Rate during such period.

 

2.11       Setoff.
(a) Each Borrower agrees that Lender has all rights of setoff and banker’s liens provided by applicable law. Each Borrower agrees
that, if at any time (i) any amount owing by it under this Agreement or any Financing Agreement is then due and payable to the Lender
or (ii) an Event of Default shall have occurred and be continuing, then the Lender or the holder of the Note issued hereunder, in
its sole discretion, may set off against and apply to the payment of any and all Liabilities, any and all balances, credits, deposits,
accounts or moneys of the Borrowers then or thereafter with the Lender or such holder.

 

    - 23 -

     

    

 

(b)       Without
limitation of Section 2.11(a) hereof, each Borrower agrees that, upon and after the occurrence and during the continuance of any
Event of Default, the Lender is hereby authorized, at any time and from time to time, without prior notice to any Credit Party, (i) to
set off against and to appropriate and apply to the payment of any and all Liabilities any and all amounts which the Lender is obligated
to pay over to any Borrower (whether matured or unmatured, and, in the case of deposits, whether general or special, time or demand and
however evidenced), and (ii) pending any such action, to the extent necessary, to deposit such amounts with the Lender as Collateral
to secure such Liabilities and to dishonor any and all checks and other items drawn against any deposits so held as the Lender in its
sole discretion may elect.

 

(c)       The
rights of the Lender under this Section 2.11 are in addition to all other rights and remedies which the Lender may otherwise have
in equity or at law.

 

2.12       Termination
of Commitment by the Lender. On the date on which the Commitment terminates pursuant to Section 10.2 hereof, the Loan and other
Liabilities shall become immediately due and payable, without presentment, demand or notice of any kind.

 

2.13       Late
Charge. If any installment of principal or interest due hereunder shall become overdue for five (5) days after the date when due,
the Borrowers shall pay to the Lender on demand a “late charge” of five cents ($.05) for each dollar so overdue in order to
defray part of the increased cost of collection occasioned by any such late payment, as liquidated damages and not as a penalty.

 

2.14       Fees.

 

(a)       Commitment Fee. On the Closing Date, the Borrowers shall pay to the Lender a one-time
commitment fee in the amount of One Hundred Twelve Thousand Five Hundred and 00/100 ($112,500.00), which shall be deemed fully earned
as of the Closing Date.

 

(b)       Exit
Fee. To the extent any Facility is sold or otherwise transferred by the Borrowers, the Borrowers shall pay to the Lender an Exit Fee;
provided, however, that (i) in the event the Borrowers are required to pay an Exit Fee in connection with any prepayment
of the Loan, no Prepayment Penalty shall be due with respect to such amount prepaid and (ii) no Exit Fee shall be due and payable in connection
with Permitted Prepayment. Any such Exit Fee which is due and payable hereunder shall constitute a part of the Liabilities and be secured
by the Collateral. The parties agree that the Exit Fee is not a penalty.

 

(c)       Tax Monitoring
Fee. In connection with the participation by the Borrowers in the annual real estate monitoring program established by the Lender,
On the Closing Date, the Borrowers shall pay to the Lender a one-time fee in the amount of Five Hundred and 00/100 Dollars ($500.00),
which shall be deemed fully earned as of the Closing Date.

 

3.               
CHANGE IN CIRCUMSTANCES.

 

3.1             
Yield Protection. If, after the date of this Agreement, a Change in Law,

 

    - 24 -

     

    

 

(a)               subjects the Lender to any tax, duty, charge or withholding on or from payments due from any Borrower (excluding taxation of the
overall net income of the Lender), or changes the basis of taxation of payments to the Lender in respect of the Loan or other amounts
due it hereunder, or

 

(b)              
imposes, modifies, or increases or deems applicable any reserve, assessment, insurance charge, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by, the Lender (other than reserves and assessments taken into
account in determining the interest rate applicable to Libor Loans), or

 

(c)              
imposes any other condition the result of which is to increase the cost to the Lender of making, funding or maintaining advances
or reduces any amount receivable by the Lender in connection with advances, or requires the Lender to make any payment calculated by reference
to the amount of advances held or interest received by it, by an amount deemed material by the Lender, or

 

(d)              
affects the amount of capital required or expected to be maintained by the Lender or any corporation controlling the Lender and
the Lender determines the amount of capital required is increased by or based upon the existence of this Agreement or its obligation to
make the Loan hereunder or of commitments of this type,

 

then, within three (3) Business
Days of demand by the Lender, the Borrowers agree to pay the Lender that portion of such increased expense incurred (including, in the
case of clause (d), any reduction in the rate of return on capital to an amount below that which it could have achieved but for
such law, rule, regulation, policy, guideline or directive and after taking into account the Lender’s policies as to capital adequacy)
or reduction in an amount received which the Lender determines is attributable to making, funding and maintaining the Loan.

 

3.2             
Availability of Rate Options. If the Lender determines that maintenance of any of its Libor Loans would violate any applicable
law, rule, regulation or directive of any government or any division, agency, body or department thereof, whether or not having the force
of law, the Lender shall suspend the availability of the Libor Rate option and require any Libor Loans outstanding to be promptly converted
to a Base Rate Loan subject to the Borrowers’ compliance with Section 3.4 hereof; or if the Lender determines that (i) deposits
of a type or maturity appropriate to match fund Libor Loans are not available, the Lender shall suspend the availability of the Libor
Rate after the date of any such determination, or (ii) the Libor Rate does not accurately reflect the cost of making a Libor Loan, then,
if for any reason whatsoever the provisions of Section 3.1 hereof are inapplicable, the Lender shall, at its option, suspend the
availability of the Libor Rate after the date of any such determination or permit (solely in the case of clause (ii)) the Borrower
to pay the Lender for any increased cost it may incur.

 

3.3              Taxes.
All payments by the Borrowers under this Agreement shall be made free and clear of, and without deduction for, any present or future
income, excise, stamp or other taxes, fees, levies, duties, withholdings or other charges of any nature whatsoever, now or hereafter
imposed by any taxing authority, other than franchise taxes and taxes imposed on or measured by the Lender’s net income or
receipts (such non-excluded items being called “Taxes”). If any withholding or deduction from any payment to be
made by a Borrower hereunder is required in respect of any Taxes pursuant to any applicable law, rule or regulation, then the
Borrowers shall:

 

    - 25 -

     

    

 

(a)              
pay directly to the relevant authority the full amount required to be so withheld or deducted;

 

(b)              
promptly forward to the Lender an official receipt or other documentation satisfactory to the Lender evidencing such payment to
such authority; and

 

(c)              
pay to the Lender such additional amount or amounts as is necessary to ensure that the net amount actually received by the Lender
will equal the full amount the Lender would have received had no such withholding or deduction been required.

 

Moreover, if any Taxes are directly
asserted against the Lender with respect to any payment received by the Lender hereunder, the Lender may pay such Taxes and the Borrowers
agree to promptly pay such additional amounts (including, without limitation, any penalties, interest or expenses) as is necessary in
order that the net amount received by the Lender after the payment of such Taxes (including, without limitation, any Taxes on such additional
amount) shall equal the amount the Lender would have received had not such Taxes been asserted. Notwithstanding the foregoing, if the
Lender fails to timely pay any such Taxes after the Lender receives prior written notice of such Taxes being due prior to the date such
Taxes are due, then any penalty directly resulting from the failure to timely pay such Taxes shall not be borne by the Borrowers.

 

3.4             
Funding Indemnification. If any payment of a Libor Loan occurs on a date that is not the last day of the applicable Libor
Interest Period, whether because of acceleration, prepayment or otherwise, or a Libor Loan is not made on the date specified by the Borrowers,
the Borrowers shall, jointly and severally, indemnify the Lender for any loss or cost incurred by it resulting therefrom, including, without
limitation, any loss or cost in liquidating or employing deposits acquired to fund or maintain the Libor Loan.

 

3.5             
Lender Statements. The Lender shall deliver a written statement to the Borrowers as to the amount due, if any, under Sections
3.1, 3.3 or 3.4 hereof. Such written statement shall set forth in reasonable detail the calculations upon which the
Lender determined such amount and shall be final, conclusive and binding on the Borrowers in the absence of manifest error. Unless otherwise
provided herein, the amount specified in the written statement shall be payable within five (5) days after receipt by the Borrowers of
the written statement.

 

3.6              Basis
for Determining Interest Rate Inadequate or Unfair. If with respect to any Libor Interest Period: (a) Lender determines (which
determination shall be binding and conclusive on the Borrowers) that by reason of circumstances affecting the interlender Libor Base
market adequate and reasonable means do not exist for ascertaining the applicable Libor Base Rate; or (b) Lender determines that the
Libor Base Rate will not adequately and fairly reflect the cost to Lender of maintaining or funding the Loan for such Libor Interest
Period, or that the making or funding of Libor Loans has become impracticable as a result of an event occurring after the date of
this Agreement which in the opinion of Lender adversely affects such Libor Loans, then, in either case, so long as such
circumstances shall continue: (i) Lender shall not be under any obligation to make, convert into or continue Libor Loans and (ii) on
the last day of the then current Libor Interest Period for each Libor Loan, each such Loan shall, unless then repaid in full,
automatically convert to a Base Rate Loan. Lender shall promptly give the Borrowers written notice of any determination made by it
under this Section accompanied by a statement setting forth in reasonable detail the basis of such determination.

 

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3.7             
Illegality. If any applicable law or regulation, or any interpretation thereof by any court or any governmental or other
regulatory body charged with the administration thereof, should make it unlawful for Lender or its lending office to make, maintain or
fund any Libor Loan, then the obligation of Lender to make, convert into or continue such Libor Loan shall, upon the effectiveness of
such event, be suspended for the duration of such unlawfulness, and on the last day of the current Libor Interest Period for such Libor
Loan (or, in any event, if Lender so requests, on such earlier date as may be required by the relevant law, regulation or interpretation),
the Libor Loans shall, unless then repaid in full, automatically convert to Base Rate Loans.

 

3.8             
Benchmark Replacement Setting. Notwithstanding anything to the contrary herein or in any other Financing Agreement (and
any hedging agreement or similar instrument shall be deemed not to be a “Financing Agreement” for purposes of this Section):

 

(a)
       Replacing USD LIBOR. On March 5, 2021 the Financial Conduct Authority (“FCA”),
the regulatory supervisor of USD LIBOR’s administrator (“IBA”), announced in a public statement the future cessation
or loss of representativeness of overnight/Spot Next, 1-month, 3-month, 6-month and 12-month USD LIBOR tenor settings. On the earlier
of (i) the date that all Available Tenors of USD LIBOR have either permanently or indefinitely ceased to be provided by IBA or have been
announced by the FCA pursuant to public statement or publication of information to be no longer representative and (ii) the Early Opt-in
Effective Date, if the then-current Benchmark is USD LIBOR, the Benchmark Replacement will replace such Benchmark for all purposes hereunder
and under any Loan Document in respect of any setting of such Benchmark on such day and all subsequent settings without any amendment
to, or further action or consent of any other party to this Agreement or any other Loan Document. If the Benchmark Replacement is Daily
Simple SOFR, all interest payments will be payable on a monthly basis.

 

(b)
       Replacing Future Benchmarks. Upon the occurrence of a Benchmark Transition Event,
the Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder and under any Loan Document in respect
of any Benchmark setting at or after 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Benchmark Replacement
is provided to the Borrowers without any amendment to this Agreement or any other Loan Document, or further action or consent of any
Borrower. At any time that the administrator of the then-current Benchmark has permanently or indefinitely ceased to provide such
Benchmark or such Benchmark has been announced by the regulatory supervisor for the administrator of such Benchmark pursuant to
public statement or publication of information to be no longer representative of the underlying market and economic reality that
such Benchmark is intended to measure and that representativeness will not be restored, the Borrower may revoke any request for a
borrowing of, conversion to or continuation of Loans to be made, converted or continued that would bear interest by reference to
such Benchmark until Borrowers’ receipt of notice from Lender that a Benchmark Replacement has replaced such Benchmark, and,
failing that, Borrowers will be deemed to have converted any such request into a request for a borrowing of or conversion to
Base Rate Loans.

 

    - 27 -

     

    

 

(c)       Benchmark
Replacement Conforming Changes. In connection with the implementation and administration of a Benchmark Replacement, Lender will have
the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in
any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further
action or consent of any other party to this Agreement.

 

(d)
       Notices; Standards for Decisions and Determinations. Lender will promptly notify the
Borrowers of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes.
Any determination, decision or election that may be made by Lender pursuant to this Section, including any determination with respect
to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain
from taking any action, will be conclusive and binding absent manifest error and may be made in its sole discretion and without consent
from any other party hereto, except, in each case, as expressly required pursuant to this Section.

 

(e)        Unavailability of Tenor of Benchmark. At any time (including in connection with the implementation of a Benchmark Replacement),
(i) if the then-current Benchmark is a term rate (including Term SOFR or USD LIBOR), then Lender may remove any tenor of such Benchmark
that is unavailable or non-representative for Benchmark (including Benchmark Replacement) settings and (ii) Lender may reinstate any such
previously removed tenor for Benchmark (including Benchmark Replacement) settings. 

 

(f)        Certain Defined Terms. As used in this Section titled “Effect of Benchmark Transition Event”: 

 

“Available
Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then-current
Benchmark is a term rate, any tenor for such Benchmark that is or may be used for determining the length of an Interest Period or (y)
otherwise, any payment period for interest calculated with reference to such Benchmark, as applicable, pursuant to this Agreement as of
such date.

 

“Benchmark”
means, initially, USD LIBOR; provided that if a replacement of the Benchmark has occurred pursuant to this Section titled “Benchmark
Replacement Setting”, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark
Replacement has replaced such prior benchmark rate. Any reference to “Benchmark” shall include, as applicable, the published
component used in the calculation thereof.

 

“Benchmark
Replacement” means, for any Available Tenor:

 

(1) For purposes
of clause (a) of this Section, the first alternative set forth below that can be determined by Lender:

 

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(a) the sum of: (i)
Term SOFR and (ii) 0.11448% (11.448 basis points) for an Available Tenor of one-month’s duration, 0.26161% (26.161 basis points)
for an Available Tenor of three-months’ duration, and 0.42826% (42.826 basis points) for an Available Tenor of six-months’
duration, or

 

(b) the sum of: (i)
Daily Simple SOFR and (ii) the spread adjustment selected or recommended by the Relevant Governmental Body for the replacement of the
tenor of USD LIBOR with a SOFR-based rate having approximately the same length as the interest payment period specified in clause (a)
of this Section; and

 

(2) For purposes
of clause (b) of this Section, the sum of (a) the alternate benchmark rate and (b) an adjustment (which may be a positive or negative
value or zero), in each case, that has been selected by Lender as the replacement for such Available Tenor of such Benchmark giving due
consideration to any evolving or then-prevailing market convention, including any applicable recommendations made by the Relevant Governmental
Body, for U.S. dollar-denominated syndicated or bilateral credit facilities at such time;

 

provided that, if
the Benchmark Replacement as determined pursuant to clause (1) or (2) above would be less than the Floor, the Benchmark Replacement will
be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

 

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition
of “Libor Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing
requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage
provisions, and other technical, administrative or operational matters) that Lender decides may be appropriate to reflect the adoption
and implementation of such Benchmark Replacement and to permit the administration thereof by Lender in a manner substantially consistent
with market practice (or, if Lender decides that adoption of any portion of such market practice is not administratively feasible or if
Lender determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration
as Lender decides is reasonably necessary in connection with the administration of this Agreement and the other Financing Agreements).

 

“Benchmark
Transition Event” means, with respect to any then-current Benchmark other than USD LIBOR, the occurrence of a public
statement or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory
supervisor for the administrator of such Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank
of New York, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with
jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over
the administrator for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date
to provide all Available Tenors of such Benchmark, permanently or indefinitely, provided that, at the time of such statement or
publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark or (b) all
Available Tenors of such Benchmark are or will no longer be representative of the underlying market and economic reality that such
Benchmark is intended to measure and that representativeness will not be restored.

 

    - 29 -

     

    

 

“Daily
Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established
by Lender in accordance with the conventions for this rate recommended by the Relevant Governmental Body for determining “Daily
Simple SOFR” for bilateral business loans; provided, that if Lender decides that any such convention is not administratively feasible
for Lender, then Lender may establish another convention in its reasonable discretion.

 

“Early
Opt-in Effective Date” means, with respect to any Early Opt-in Election, the sixth (6th) Business Day after the date notice
of such Early Opt-in Election is provided to the Borrower.

 

“Early
Opt-in Election” means the occurrence of:

 

(1) a determination
by Lender that at least ten currently outstanding U.S. dollar-denominated syndicated or bilateral credit facilities at such time contain
(as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR)
as a benchmark rate, and

 

(2) the election by
Lender to trigger a fallback from USD LIBOR and the provision by Lender of written notice of such election to Borrowers.

 

“Floor”
means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification,
amendment or renewal of this Agreement or otherwise) with respect to USD LIBOR. As of the date of this Agreement, the Floor means one
percent (1.00%)

 

“Relevant
Governmental Body” means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a
committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York,
or any successor thereto.

 

“SOFR”
means a rate per annum equal to the secured overnight financing rate for such Business Day published by the Federal Reserve Bank of
New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New
York, currently at http://www.newyorkfed.org (or any successor source for the secured overnight financing rate identified as such by
the administrator of the secured overnight financing rate from time to time).

 

    - 30 -

     

    

 

“Term
SOFR” means, for the applicable corresponding tenor, the forward-looking term rate based on SOFR that has been selected or recommended
by the Relevant Governmental Body.

 

“USD LIBOR” means
the London interbank offered rate for U.S. dollars.

 

 

4.               
ATTORNEY-IN-FACT.

 

4.1             
Appointment of the Lender as the Borrowers’ Attorney-in-Fact. Each Borrower hereby irrevocably designates, makes,
constitutes and appoints the Lender (and all Persons designated by the Lender in writing to the Borrowers) as such Borrower’s true
and lawful attorney-in-fact, and authorizes the Lender, in such Borrower’s or the Lender’s name to do all acts and things
which are necessary, in the Lender’s reasonable discretion, to fulfill the Borrowers’ obligations under this Agreement. Each
Borrower hereby ratifies and approves all acts under such power of attorney and neither Lender nor any other Person acting as any Borrower’s
attorney hereunder will be liable for any acts or omissions or for any error of judgment or mistake of fact or law made in good faith.
The appointment of Lender (and any of the Lender’s officers, employees or agents designated by the Lender) as each Borrower’s
attorney, and each and every one of Lender’s rights and powers, being coupled with an interest, are irrevocable until all of the
Liabilities have been fully repaid and this Agreement shall have expired or been terminated in accordance with the terms hereunder.

 

5.                 
CONDITIONS OF THE LOAN.

 

The Lender’s obligation
to make the Loan hereunder is subject to the satisfaction of each of the following conditions precedent:

 

(a)              
Fees and Expenses. The Borrowers shall have paid all fees owed to the Lender and reimbursed the Lender for all reasonable
costs, disbursements, fees and expenses due and payable hereunder on or before the Closing Date, including, without limitation, the Lender’s
counsel fees provided for in Section 11.2(a) hereof.

 

(b)              
Documents. The Lender shall have received all of the following, each duly executed and delivered and dated the Closing Date,
or such earlier date as shall be satisfactory to the Lender, each in form and substance reasonably satisfactory to the Lender in its sole
determination:

 

(1)              
Financing Agreements. This Agreement, the Note, the Mortgages, the Assignments of Rents and Leases, the Environmental Indemnity
Agreement, Subordination, Non-Disturbance and Attornment Agreements, the Pledge Agreement and such other Financing Agreements as the Lender
may reasonably require.

 

(2)               Resolutions;
Incumbency and Signatures. Copies of the resolutions or written consent of the manager of each Credit Party authorizing or
ratifying the execution, delivery and performance by such Credit Party of this Agreement, the Financing Agreements to which such
Credit Party is a party and any other document provided for herein or therein to be executed by such Credit Party, certified by a
Duly Authorized Person of such Credit Party and, in each case, to the extent applicable. A certificate of a Duly Authorized Person
certifying the names of the officers of each Borrower authorized to make a borrowing request on behalf of the Borrowers and sign
this Agreement and the Financing Agreements to which such Borrower is a party, together with a sample of the true signature of each
such officer; the Lender may conclusively rely on each such certificate until formally advised by a like certificate of any changes
therein.

 

    - 31 -

     

    

 

(3)              
Consents. Certified copies of all documents evidencing any necessary consents and governmental approvals, if any, with respect
to this Agreement, the Financing Agreements, and any other documents provided for herein or therein to be executed by Borrower.

 

(4)              
Opinion of Counsel. An opinion of Hanson Bridgett, LLP the legal counsel to the Credit Parties, in form and substance reasonably
satisfactory to Lender.

 

(5)              
Constitutive Documents. A copy (certified by a Duly Authorized Person) of each Credit Party’s (i) Certificate of Formation,
certified by the Secretary of State of the State of Delaware as of a date acceptable to the Lender, together with a good standing certificate
from such governmental entity or department and, if and to the extent applicable, a good standing certificate (or the equivalent thereof)
from the Secretaries of State (or the equivalent thereof) of each other State in which any Credit Party is required to be qualified to
transact business and (ii) a true, correct and complete copy of the Limited Liability Company Agreement of the Borrowers and Parent.

 

(6)              
UCC Financing Statements; Termination Statements; UCC Searches. UCC Financing Statements, as requested by the Lender, naming
each Credit Party as debtor and the Lender as secured party with respect to the Collateral, together with such UCC termination statements
necessary to release all Liens (other than Permitted Liens) and other rights in favor of any Person in any of the Collateral except the
Lender, and other documents as the Lender deems necessary or appropriate, shall have been filed in all jurisdictions that the Lender deems
necessary or advisable. UCC tax, lien, pending suit and judgment searches for the Borrowers, the Closing Date Sellers (and, if and to
the extent applicable, under any of its trade or assumed names, if any), each dated a date reasonably near to the Closing Date in all
jurisdictions reasonably deemed necessary by the Lender, the results of which shall be satisfactory to the Lender in its sole and absolute
determination.

 

(7)              
Insurance Certificates. Certificates from the Borrowers’ insurance carriers evidencing that all insurance coverage
required hereunder and under the Mortgage and other Financing Agreements is in effect, which designate the Lender as “Lender’s
Loss Payee” and “Mortgagee” under the personal property insurance, additional insured under the liability insurance,
as applicable.

 

    - 32 -

     

    

 

(8)              
 Permits. Certified copies of all licenses, permits and governmental approvals necessary for the use or operation of the
Facilities, together with a certificate of occupancy with respect to the Facilities.

 

(9)              
Real Estate Leases. True, correct and complete copies of the fully-executed Real Estate Leases, and all amendments, assignments,
modifications and other supplements in connection therewith, together with a Subordination, Non-Disturbance and Attornment Agreements
with respect to each Facility, in each case, in a form and substance acceptable to Lender, including, without limitation, evidence that
the Rent Expense associated with the Real Estate Leases on an annual basis is not less than One Million Eight Hundred Thousand and 00/100
Dollars ($1,800,000) in the aggregate.

 

(10)          
Management Agreements. True, correct and complete copies of the fully-executed Management Agreements in form and substance
satisfactory to the Lender in its sole discretion, pursuant to which the applicable Operating Company may pay management fees in an amount
not to exceed 5% of gross revenues of such Operating Company applicable to the Facility subject thereto.

 

(11)          
Property Condition Report. Property Condition Reports for each parcel of Real Property on which each Facility is located,
the form, substance and results of which shall be satisfactory to Lender in its sole and absolute determination, unless waived in writing
by Lender.

 

(12)          
Environmental Assessment. Phase I environmental reports and, if applicable, phase II environmental reports (collectively,
the “Environmental Reports”) of the Real Property on which each Facility is located prepared by an environmental audit
firm reasonably acceptable to the Lender, the results of which shall be satisfactory to the Lender in its sole and absolute determination.

 

(13)          
Title Insurance. Title insurance policies in the form of ALTA Form Mortgagee Title Insurance Policy shall be issued by an
insurer (acceptable to the Lender) in favor of the Lender for the Real Property on which each Facility is located, together with copies
of all documents of record concerning all such Real Property as identified on the commitment thereof. Each title insurance policy shall
contain such endorsements as deemed appropriate by the Lender.

 

(14)          
Survey. ALTA plats of survey shall be prepared on the Real Property on which each Facility is located (with current ALTA/ACSM
land survey standards and reasonably satisfactory to the Lender), unless waived in writing by Lender.

 

(15)          
Appraisal. FIRREA compliant appraisals prepared by an independent appraiser of the Real Property, which appraisal shall
satisfy the requirements of the Financial Institutions Reform, Recovery and Enforcement Act, if applicable, and shall evidence compliance
with the supervisory loan-to-value limits set forth in the Federal Deposit Insurance Corporation Improvement Act of 1991. Such appraisal
(and the results thereof) shall be satisfactory to the Lender in its sole and reasonable determination.

 

    - 33 -

     

    

 

(16)          
 Flood Insurance. Flood insurance policies, if applicable, concerning the Real Property, reasonably satisfactory to the
Lender, if required by the Flood Disaster Protection Act of 1973.

 

(17)          
Beneficial Ownership Certificate. Lender shall have received, to the extent any Borrower qualifies as a “legal entity
customer” under the Beneficial Ownership Regulation, at least five days prior to the Closing Date, a Beneficial Ownership Certification
in relation to such Borrower.

 

(18)          
Equity Support Letters. The Lender shall have received fully executed copies of each of the Equity Support Letters, in each
case, in form and substance acceptable to Lender.

 

(19)          
Minimum EBITDAR of Facilities. The Lender shall have received evidence in form and substance acceptable to the Lender in
its sole discretion that EBITDAR (after giving effect to adjustments relative to bad debt in an amount acceptable to Lender and exclusive
of any grants received by the Prior Operating Companies from HHS (or any other governmental program, whether state, federal or otherwise)
with respect to the Facilities for the twelve (12) month period ending April 30, 2021 is at least Two Million Nine Hundred Thousand and
00/100 Dollars ($2,900,000).

 

(20)          
Minimum Equity Contribution; Working Capital Line of Credit. The Lender shall have received evidence that the (i) Operating
Companies shall have received an aggregate cash equity contribution in an amount not less than Five Hundred Thousand and 00/100 Dollars
($500,000.00) and (ii) each Operating Company shall have obtained a separate working capital line of credit on terms and conditions (including
with respect to the amount thereof and the lender thereunder) acceptable to the Lender in its reasonable discretion.

 

(21)          
Medicare Advance Payment Reserve Escrow Arrangement. The Lender shall have received evidence of the establishment of the
Medicare Advance Payment Reserve Escrow Arrangement and evidence that the Prior Operating Companies have deposited or caused to be deposited
an aggregate amount of not less than Three Hundred Fifty Four Thousand Four Hundred Ninety Five and 79/100 Dollars ($354,495.79) in the
escrow account subject thereto.

 

(22)          
Operator Cash Flow Analysis. Lender shall have received a week-by-week cash flow analysis for the Facilities, which shall
be in form and substance acceptable to the Lender in its sole discretion.

 

(23)          
Closing Date Purchase Documents. True, correct and complete copies of the fully-executed Closing Date Purchase Documents
and of the governmental approvals delivered in connection therewith.

 

(24)          
Other. Such other documents, certificates and instruments as the Lender may reasonably request.

 

    - 34 -

     

    

 

(c)       Field
Examination; Site Visit. The Lender shall have completed its site visit and field examinations of the Borrowers’ books and records,
assets, and operations which examinations will be satisfactory to the Lender in its sole and absolute discretion.

 

(d)       No
Material Adverse Change. Since December 31, 2018, there shall be no material adverse change in the business, assets, liabilities,
properties, condition (financial or otherwise) or results of operations of any Borrower or any Operating Company.

 

(e)       Representations
and Warranties. All representations or warranties of the Credit Parties contained herein or in any Financing Agreement shall be true
and correct as of the Closing Date.

 

(f)       Acknowledgement
of Operating Companies. Evidence reasonably acceptable to the Lender that each Operating Company has acknowledged the obligations
of the Borrowers under Section 8.9 hereof and that the Borrowers have notified such Operating Company that all amounts payable to any
Borrower under any Real Estate Lease shall be paid directly to the applicable Lease Deposit Account and that such Operating Company has
agreed to comply with such arrangement.

 

(g)       Financial
Statements. The Lender shall have received financial statements of the Borrower and otherwise of the tenants of each Facility showing
results of the operation of each Facility for the fiscal years ended December 31, 2019 and December 31, 2020 and such financial statements
shall be in form and substance reasonably acceptable to the Lender. The Lender shall have received (i) company prepared financial statements
for the tenants of each Facility showing results of operations of each Facility and each for the 4-month period ending April 30, 2021
and such financial statements, in each case, shall be in form and substance reasonably acceptable to the Lender. The Lender shall have
received projected statements of income and cash flow for Borrowers, giving effect to the Borrowers acquisition of the Facilities and
the use of proceeds of the operations thereof and such projections shall be in form and substance satisfactory to the Lender in its reasonable
discretion.

 

(h)       Commitment
Fee. The Borrower shall have paid to Lender (i) the commitment fee referenced in Section 2.14(a) hereof (ii) and such other fees incurred
by the Lender in connection with its due diligence process.

 

(i)       Capital
Structure. The capital and organizational structure of Summit, Parent, the Borrowers and their Subsidiaries shall be satisfactory
to the Lender.

 

6.                 
COLLATERAL.

 

6.1              Security
Interest. As security for the prompt and complete payment and performance of all of the Liabilities when due or declared due in
accordance with the terms hereof, each Borrower hereby grants, pledges, conveys and transfers to the Lender (in addition to the
security interests, assignments and mortgages on the Real Property as contemplated by the Mortgages and the other Financing
Agreements) a continuing security interest in and to any and all assets and personal property of such Borrower, of any kind or
description, tangible or intangible, wheresoever located and whether now existing or hereafter arising or acquired, including the
following (all of which property, along with the products and proceeds therefrom, are individually and collectively referred to as
the “Collateral”): (a) all of such Borrower’s accounts receivable, including, without limitation, Accounts
and Health-Care-Insurance Receivables (each as defined in the Code), (b) all of such Borrower’s General Intangibles,
including, without limitation General Intangibles related to accounts receivable and money; (c) all of such Borrower’s Deposit
Accounts and other deposit accounts (general or special) with, and credits and other claims against, the Lender, or any other
financial institution with which such Borrower maintains deposits; (d) all of such Borrower’s contracts, licenses, chattel
paper, instruments, notes, letters of credit, bills of lading, warehouse receipts, shipping documents, contracts, tax refunds,
documents and documents of title, and all of such Borrower’s Tangible Chattel Paper, Documents, Electronic Chattel Paper,
Letter-of-Credit Rights, letters of credit, Software, Supporting Obligations, Payment Intangibles, and Goods (each as defined in the
Code); (e) all of such Borrower’s Inventory and Equipment (each as defined in the Code) and motor vehicles and trucks; (f) all
of such Borrower’s monies, and any and all other property and interests in property of such Borrower, including, without
limitation, Investment Property, Instruments, Security Entitlements, Uncertificated Securities, Certificated Securities, Chattel
Paper, and Financial Assets (each as defined in the Code), now or hereafter coming into the actual possession, custody or control of
the Lender or any agent or Affiliate of the Lender in any way or for any purpose (whether for safekeeping, deposit, custody, pledge,
transmission, collection or otherwise), and, independent of and in addition to the Lender’s rights of setoff, the balance of
any account or any amount that may be owing from time to time by the Lender to such Borrower; (g) all insurance proceeds of or
relating to any of the foregoing property and interests in property, and any key man life insurance policy covering the life of any
officer or employee of such Borrower; (h) all proceeds and profits derived from the operation of such Borrower’s business; (i)
all of the other assets and personal property of such Borrower; (j) the Lease Deposit Accounts, the Cash Loan Guaranty Fund and, in
each case, the funds relating thereto; (k) all of such Borrower’s books and records, computer printouts, manuals and
correspondence relating to any of the foregoing and to such Borrower’s business; (k) all cash of such Borrower; and (l) all
accessions, improvements and additions to, substitutions for, and replacements, products, profits and proceeds of any of the
foregoing.

 

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6.2             
Preservation of Collateral and Perfection of Security Interests Therein. The Borrowers agree that they shall execute and
deliver to the Lender, concurrently with the execution of this Agreement, and at any time or times hereafter at the request of the Lender,
all financing statements (and the Borrowers shall pay the cost of filing or recording the same in all public offices deemed necessary
by the Lender) or other instruments and documents as the Lender may reasonably request, in a form satisfactory to the Lender, to perfect
and keep perfected the Liens in the Collateral or to otherwise protect and preserve the Collateral and the Lender’s Liens therein.
If the Borrowers fail to do so, the Lender is authorized to sign any such financing statements (or, if no signature is required in the
filing jurisdiction, file such financing statements without any Borrower’s signature) as the Borrowers’ agent. The Borrowers
further agree that a carbon, photographic, photostatic or other reproduction of this Agreement or of a financing statement is sufficient
as a financing statement.

 

6.3             
Loss of Value of Collateral. Each Borrower agrees to immediately notify the Lender of any material loss or depreciation
of over $50,000 in the value of the Collateral or any portion thereof.

 

    - 36 -

     

    

 

6.4             
 Right to File Financing Statements. Notwithstanding anything to the contrary contained herein, the Lender may at any time
and from time to time file financing statements, continuation statements and amendments thereto that describe the Collateral in particular,
and which contain any other information required by the Code for the sufficiency or filing office acceptance of any financing statement,
continuation statement or amendment, including whether a Borrower is an organization, the type of organization and any organization identification
number issued to such Borrower. Each Borrower agrees to furnish any such information to the Lender promptly upon request. Any such financing
statements, continuation statements or amendments may be signed by the Lender on behalf of such Borrower and may be filed at any time
with or without signature and in any jurisdiction as reasonably determined by the Lender.

 

6.5             
Third Party Agreements. Each Borrower shall at any time and from time to time take such steps as the Lender may reasonably
require for the Lender: (i) to obtain an acknowledgment, in form and substance reasonably satisfactory to the Lender, of any third party
having possession of any of the Collateral that the third party holds for the benefit of the Lender, (ii) to obtain “control”
(as defined in the Code) of any Deposit Accounts, with any agreements establishing control to be in form and substance reasonably satisfactory
to the Lender, and (iii) otherwise to ensure the continued perfection and priority of the Lender’s security interest in any of the
Collateral and of the preservation of its rights therein.

 

6.6             
All Advances One Obligation. Payment of all Liabilities shall be secured by the Collateral and pursuant to certain of the
terms of this Agreement and the Financing Agreements. All loans or advances made to Borrower under this Agreement shall constitute one
Loan, and all of the Borrowers’ Liabilities shall constitute one general obligation secured by Lender’s Lien on all of the
Collateral and by all other Liens heretofore, now, or at any time or times granted to Lender to secure the Liabilities. Each Borrower
agrees that all of the rights of Lender set forth in this Agreement shall apply to any amendment, restatement or modification of, or supplement
to, this Agreement, any supplements or exhibits hereto and the Financing Agreements, unless otherwise agreed in writing by the Lender.

 

6.7             
Commercial Tort Claims. If any Borrower shall at any time hereafter acquire a Commercial Tort Claim (as defined in the Code),
such Borrower shall promptly notify the Lender of same in a writing signed by such Borrower (describing such claim in reasonable detail)
and grant to the Lender in such writing (at the sole cost and expense of the Borrowers) a continuing, first-priority security interest
therein and in the proceeds thereof, with such writing to be in form and substance satisfactory to the Lender in its sole and absolute
determination.

 

6.8              Lease
Deposit Accounts. The Borrowers represent that they have established and further agree to continue to maintain and hereby grants
the Lender a security interest in a restricted account set up for the purpose of depositing all rent and other payments owed to any
Borrower by any Operating Company or otherwise in connection with lease payments owed in connection with the Facilities (each a
“Lease Deposit Account” and collectively, the “Lease Deposit Accounts”). At any time that an
Event of Default exists, the Borrowers hereby grant the Lender sole access to the Lease Deposit Accounts, provided, however, that
the Lender may use such funds solely to repay amounts owed under the Loan upon maturity of the Loan or while any Event of Default
exists and to apply such funds to other Liabilities as and when the same become due and payable. The failure of Borrowers to comply
with the provisions of this paragraph shall be considered an Event of Default and immediately entitle the Lender to any of the
remedies provided in this Agreement. Nothing in this Section shall mitigate, limit or otherwise affect any of the Borrower's
obligations under this Agreement.

 

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6.9             
Cash Loan Guaranty Fund. The Borrowers represent that they have established and further agree to continue to maintain and
hereby grants the Lender a security interest in a restricted account set up for the purpose of depositing the Cash Loan Guaranty Fund
reserve held by the Lender. The Cash Loan Guaranty Fund established with the Lender shall be invested in such a manner as shall be mutually
agreed upon among the Lender and the Borrowers; and, in the event there shall be no agreement, then as shall be determined by the Lender
in its sole discretion. The Lender shall have sole access to the Cash Loan Guaranty Fund, provided, however, that the Lender may use such
funds solely to repay amounts owed under the Loan upon maturity of the Loan or while any Event of Default exists and to apply such funds
to other Liabilities as and when the same become due and payable. Any and all interest on the Cash Loan Guaranty Fund shall be added to
the Cash Loan Guaranty Fund and shall be property of the Borrowers subject to the security interests granted herein and, upon repayment
in full of the Liabilities and the termination of this Agreement, such interest shall be paid to the Borrowers; provided, however, that
at any time an Event of Default has occurred and continuing, the Borrowers acknowledge and agree that such interest may be applied to
the Liabilities by the Lender. The failure of Borrowers to comply with the provisions of this paragraph shall be considered an Event of
Default and immediately entitle the Lender to any of the remedies provided in this Agreement. Nothing in this Section shall mitigate,
limit or otherwise affect any of the Borrower's obligations under this Agreement.

 

7.                 
REPRESENTATIONS AND WARRANTIES.

 

The Borrowers, jointly and
severally, represent and warrant that as of the date of this Agreement, and continuing as long as any Liabilities remain outstanding,
and (even if there shall be no such Liabilities outstanding) as long as this Agreement remains in effect:

 

7.1             
Existence. Each Borrower is a limited liability company duly formed, validly existing and in good standing under the laws
of the State of Delaware. Each Borrower is duly qualified and in good standing as a foreign limited liability company authorized to do
business in the State of California and each jurisdiction where such qualification is required because of the nature of its activities
or properties. Each Borrower has all requisite limited liability company power to carry on its business as now being conducted and as
proposed to be conducted.

 

7.2              Authority.
The execution and delivery by each Borrower of this Agreement and all of the other Financing Agreements to which such Borrower is a
party and the performance of its obligations hereunder and thereunder: (i) are within its limited liability company powers; (ii) are
duly authorized by the manager of such Borrower and, if applicable, the member of such Borrower; and (iii) are not in contravention
of the terms of its limited liability company agreement, or of any indenture, agreement or undertaking to which it is a party or by
which it or any of its property is bound. The execution and delivery by each Borrower of this Agreement and all of the other
Financing Agreements to which it is a party and the performance of its obligations hereunder and thereunder: (i) do not require any
governmental consent, registration or approval; (ii) do not contravene any contractual or governmental restriction binding upon it;
and (iii) will not, except in favor of Lender, result in the imposition of any Lien upon any property of such Borrower under any
existing indenture, mortgage, deed of trust, loan or credit agreement or other material agreement or instrument to which it is a
party or by which it or any of its property may be bound or affected.

 

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7.3             
Binding Effect. This Agreement and all of the other Financing Agreements to which any Credit Party is a party are the legal,
valid and binding obligations of such Credit Party and are enforceable against such Credit Party in accordance with their respective terms,
subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditor’s rights
and remedies generally.

 

7.4             
Financial Data.

 

(a)              
All income statements, balance sheets, cash flow statements, statements of operations, financial statements, and other financial
data which have been or shall hereafter be furnished to the Lender for the purposes of or in connection with this Agreement do and will
present fairly in all material respects in accordance with GAAP, consistently applied, the financial condition of the Credit Parties and
the Operating Companies, as applicable, as of the dates thereof and the results of its operations for the period(s) covered thereby.

 

(b)              
Since December 31, 2020, there has been no Material Adverse Change with respect to any Credit Party or any tenant of the Facility
or in the operations of the Facility.

 

7.5             
Collateral. Except for the Permitted Liens, all of the Borrowers’ assets and property (including, without limitation,
the Collateral and the Real Property) are and will continue to be owned by the applicable Borrower (except for items of inventory disposed
of in the ordinary course of business), have been or will be fully paid for, and are free and clear of all Liens. No financing statement
or other document similar in effect covering all or any part of the Collateral is on file in any recording or filing office, other than
those identifying the Lender as the secured creditor. The organizational number assigned by the State of Delaware upon: (i) Yucaipa’s
formation is: 5987196; (ii) Creekside’s formation is: 5987186; and (iii) Mentone formation is: 5987189.

 

7.6             
Solvency. Each Credit Party is solvent, is able to pay such Credit Party’s debts as they mature or become due, has
capital sufficient to carry on its business and all businesses in which it is about to engage, and now owns assets and property having
a value both at fair valuation and at present fair saleable value on a going concern basis (as determined in a manner and based upon assumptions
satisfactory to the Lender in its reasonable determination) greater than the amount required to pay all of its debts and liabilities,
including, without limitation, all of the Liabilities. No Credit Party will be rendered insolvent by the execution and delivery of this
Agreement or any Financing Agreement, or by completion of the transactions contemplated hereunder or thereunder.

 

7.7              Principal
Place of Business; State of Formation. The principal place of business and chief executive office of each Borrower is located at
2 South Pointe Drive, Suite 100, Lake Forrest, California 92630. The books and records of the Borrowers and all records of account
are located at the principal place of business and chief executive office of the Borrowers. Each Borrower’s state of formation
is the State of Delaware.

 

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7.8             
Other Names. No Borrower has used, and no Borrower shall hereafter use, any name (including, without limitation, any tradename,
tradestyle, assumed name, division name or any similar name) other than the name set forth in the introductory paragraph of this Agreement.

 

7.9             
Tax Liabilities. Each of each Credit Party and, to the Borrowers’ knowledge, each Operating Company has filed all
federal, state and local tax reports and returns required by any law or regulation to be filed by it, except for extensions duly obtained
or except as permitted under Section 8.4, and has either duly paid all taxes, duties and charges indicated due on the basis of
such returns and reports, or made adequate provision for the payment thereof, and the assessment of any material amount of additional
taxes in excess of those paid and reported is not reasonably expected.

 

7.10         
Loans. Except as otherwise permitted by Section 9.2 hereof, no Borrower is obligated on any loans or other Indebtedness.

 

7.11         
Margin Securities. The use of the proceeds of the Loan and Borrowers’ issuance of the Note will not directly or indirectly
violate or result in a violation of the Securities Act of 1933 or the Securities Exchange Act of 1934, as amended, or any regulations
issued pursuant thereto, including, without limitation, Regulations U, T or X of the Board of Governors of the Federal Reserve System.
No Credit Party owns any margin securities and none of the Loan advanced hereunder will be used for the purpose of purchasing or carrying
any margin securities or for the purpose of reducing or retiring any Indebtedness which was originally incurred to purchase any margin
securities or for any other purpose not permitted by Regulation U of the Board of Governors of the Federal Reserve System.

 

7.12         
Subsidiaries. No Borrower has any subsidiaries.

 

7.13         
Litigation and Proceedings. No judgments are outstanding against any Credit Party or, to the knowledge of Borrowers, any
Operating Company, nor is there as of any such date pending or, to the Borrower’s knowledge, threatened, any litigation, suit, action,
contested claim, or federal, state or municipal governmental proceeding by or against any Credit Party or the Operating Company or any
of its property, in each case, involving an aggregate amount of Fifty Thousand Dollars ($50,000) or more.

 

7.14         
Other Agreements. Neither any Credit Party, nor, to the Borrowers’ knowledge, any Operating Company is in material
default under or in breach of any material agreement, contract, lease, or commitment to which it is a party or by which it is bound. No
Borrower knows of any dispute regarding any agreement, contract, instrument, lease or commitment which could reasonably be expected to
have a Material Adverse Effect.

 

7.15          Compliance
with Laws and Regulations. The execution and delivery by each Borrower of this Agreement and by each Credit Party of all of the
other Financing Agreements to which any Credit Party is a party and the performance of such Person’s obligations hereunder and
thereunder are not in contravention of any material law, rule or regulation, including, without limitation, Healthcare Laws. Each
Credit Party and, to the Borrowers’ knowledge, each Operating Company and Prior Operating Company, as applicable, has all
licenses, authorizations, approvals and permits necessary in connection with the operation of its business (including, without
limitation, all certificates needed for each Operating Company or each Prior Operating Company, as applicable, to participate in the
Medicare and Medicaid programs). Each Facility is operated as a skilled nursing facility and its licensed unit capacity is as set
forth on Schedule 7.15. The licenses, authorizations, permits and other approvals listed on Schedule 7.15 constitute
all the licenses, authorizations, permits and other approvals required by each Operating Company or each Prior Operating Company, as
applicable, to operate the applicable Facility at such licensed bed capacities applicable for such Operating Company. Each Credit
Party and, to the Borrowers’ knowledge, each Operating Company and each Prior Operating Company, as applicable, has obtained
all licenses, authorizations, approvals, licenses and permits necessary in connection with the operation of its business, including,
without limitation, licenses with respect to the Facilities issued by the California Department of Public Health designated as a
“Skilled Nursing Facility” and/or any other designation required to operate the Facilities in the manner and for the
purposes currently operated. All such licenses, authorizations, approvals and permits are in full force and effect and each Credit
Party shall keep such items in full force and effect during the term of this Agreement. Each Real Estate Lease shall at all times
during the term of this Agreement require that the Operating Company or the Prior Operating Company, as applicable, party to such
Real Estate Lease keep such licenses, authorizations, approval and permits in full force and effect. Each Credit Party is in
compliance with all laws, orders, rules, regulations and ordinances of all federal, foreign, state and local governmental
authorities applicable to it and its business, operations, property, and assets, except to the extent any such non-compliance could
not reasonably be expected to result in a Material Adverse Effect. No Facility is subject to any proceeding for revocation,
suspension or issuance of a probationary license or any certificate of need issued by any governmental authority and any Person
succeeding to the functions thereof, and there has not been instituted any Medicare or Medicaid termination action by such
commission. Neither any Credit Party nor, to the Borrowers’ knowledge, any Operating Company has received any notice from any
governmental authority that such governmental authority has imposed or intends to impose any enforcement actions, fines or penalties
for any failure or alleged failure to comply with HIPAA.

 

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7.16         
Intellectual Property. No Credit Party owns or otherwise possess any registered patents, patent applications, copyrights,
trademarks, trademark applications, trade names, or service marks. To the Borrowers’ knowledge, none of any Credit Party’s
intellectual property infringes on the rights of any other Person.

 

7.17          Environmental
Matters. Except as otherwise disclosed in the Environmental Reports, neither any Credit Party nor, to the knowledge of the
Borrowers, any Operating Company, has Managed Hazardous Substances on or off its Property other than in compliance with
Environmental Laws, except to the extent any such non-compliance could not reasonably be expected to result in a Material Adverse
Effect. Each Credit Party and, to the knowledge of Borrowers, the Operating Company, has complied in all material respects with
Environmental Laws regarding transfer, construction on and operation of its business at the Property, including, but not limited to,
notifying authorities, observing restrictions on use, transferring, modifying or obtaining permits, licenses, approvals and
registrations, making required notices, certifications and submissions, complying with financial liability requirements, Managing
Hazardous Substances and Responding to the presence or Release of Hazardous Substances connected with operation of its business or
Property. Neither any Credit Party nor, to the knowledge of the Borrowers, any Operating Company, has any contingent liability with
respect to the Management of any Hazardous Substance that could reasonably be expected to result in a Material Adverse Effect.
During the term of this Agreement, the Borrowers shall not permit (and shall cause the Operating Companies not to permit) others to,
Manage, whether on or off any Borrower’s Property, Hazardous Substances. Notwithstanding the foregoing, so long as no Event of
Default has occurred and is continuing and to the extent an Operation and Maintenance Plan has been prepared with respect to a
Facility and provided to Lender, the applicable Borrower shall be permitted to manage existing asbestos and lead-based paint
materials present on such Facility on the date hereof in accordance with such Operation and Maintenance Plan. The Borrowers shall
take prompt action in material compliance with Environmental Laws to Respond to the on-site or off-site Release of Hazardous
Substances connected with operation of its business or Property. Neither any Credit Party nor, to the knowledge of the Borrowers,
any Operating Company, has received any Environmental Notice.

 

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7.18         
Disclosure. None of the representations or warranties made by any Credit Party herein or in any Financing Agreement to which
such Credit Party is a party and no other written information provided by the Credit Parties or their respective representatives to the
Lender contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. The Borrowers have disclosed to the Lender all facts of which the
Borrowers have knowledge which at any time hereafter might result in a Material Adverse Effect.

 

7.19         
Pension Related Matters. If applicable, each employee pension plan (other than a multiemployer plan within the meaning of
Section 3(37) of ERISA and to which any Credit Party or any ERISA Affiliate has or had any obligation to contribute (a “Multiemployer
Plan”)) maintained by any Credit Party or any of their respective ERISA Affiliates to which Title IV of ERISA applies, if any,
and (a) which is maintained for employees of any Credit Party or any of their respective ERISA Affiliates or (b) to which any Credit Party
or any of their ERISA Affiliates made, or was required to make, contributions at any time within the preceding five (5) years (a “Plan”),
complies, and is administered in accordance, with its terms and all material applicable requirements of ERISA and of the Internal Revenue
Code of 1986, as amended, and any successor statute thereto (the “Tax Code”), and with all material applicable rulings
and regulations issued under the provisions of ERISA and the Tax Code setting forth those requirements. No “Reportable Event”
or “Prohibited Transaction” (as each is defined in ERISA) or withdrawal from a Multiemployer Plan caused by any Credit Party
has occurred and no funding deficiency described in Section 302 of ERISA caused by any Credit Party exists with respect to any Plan or
Multiemployer Plan which could have a Material Adverse Effect. If and to the extent applicable, the Credit Parties and each ERISA Affiliate
have satisfied all of their respective funding standards applicable to such Plans and Multiemployer Plans under Section 302 of ERISA and
Section 412 of the Tax Code and the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under
ERISA (“PBGC”) has not instituted any proceedings, and there exists no event or condition caused by any Credit Party
which would constitute grounds for the institution of proceedings by PBGC, to terminate any Plan or Multiemployer Plan under Section 4042
of ERISA which could have a Material Adverse Effect.

 

    - 42 -

     

    

 

7.20         
 Perfected Security Interests. The Lien in favor of the Lender provided pursuant to Section 6.1 hereof is a valid
and, when properly perfected by the timely filings, deliveries, notations and other actions contemplated by the Financing Agreements in
the appropriate jurisdictions, will constitute the first priority security interest in the Collateral (subject only to the Permitted Liens).

 

7.21         
Real Estate. As of the Closing Date, no Borrower owns or leases any Property other than the Real Property owned by such
Borrower. The Borrowers own good and marketable fee simple title to all of the Real Property. The Borrowers have delivered true, correct
and complete copies of the fully-executed Real Estate Leases and all material instruments, agreements and documents entered into in connection
therewith (including all Exhibits and Schedules thereto) to the Lender on the Closing Date.

 

7.22         
Ownership; Consideration. Schedule 7.22 sets forth the correct legal name, jurisdiction of organization and,
if applicable, the organizational identification number assigned by the applicable jurisdiction of organization of the Credit Parties.
The authorized Capital Securities of each of the Credit Parties is as set forth on Schedule 7.22. All issued and outstanding
Capital Securities of each of the Credit Parties is duly authorized and validly issued, and if the Capital Securities of a corporate entity,
fully paid, nonassessable, and in each case is free and clear of all Liens other than those in favor of the Lender, and such Capital Securities
were issued in compliance with all applicable laws. The identity of the holders of the Capital Securities of each of the Credit Parties
and the percentage of their fully diluted ownership of the Capital Securities of each of the Credit Parties as of the Closing Date is
set forth on Schedule 7.22. As of the Closing Date there are no preemptive or other outstanding rights, options, warrants, conversion
rights or similar agreements or understandings for the purchase or acquisition from any Credit Party of any Capital Securities of any
such entity.

 

7.23         
Broker’s Fees. No Credit Party has any obligation to any Person in respect of any finder’s, brokers or similar
fee in connection with the Loan or this Agreement.

 

7.24         
Investment Company Act. No Credit Party is an “investment company” or a company “controlled” by
an “investment company”, within the meaning of the Investment Company Act of 1940, as amended.

 

7.25         
Business of Borrowers. The sole business of the Borrowers is to own the Real Property leased to the applicable Operating
Company. No Borrower is party to any management agreement or similar type of management contract, other than the Real Estate Lease.

 

7.26       Offenses
and Penalties Under the Medicare or Medicaid Programs. Neither any Credit Party nor, to the Borrowers’ knowledge, any
Operating Company and/or officers of such Credit Party or, to the Borrowers’ knowledge, any Operating Company is currently
under investigation or prosecution for, nor has any Credit Party, or to the Borrowers’ knowledge, any Operating Company or any
Affiliate or officer of such Person been convicted of: (a) any offense related to the delivery of an item or service under the
Medicare or Medicaid programs; (b) a criminal offense related to neglect or abuse of patients in connection with the delivery of a
health care item or service; (c) fraud, theft, embezzlement or other financial misconduct; (d) the obstruction of an investigation
of any crime referred to in subsections (a) through (c) of this Section; or (e) unlawful manufacture, distribution, prescription, or
dispensing of a controlled substance. Neither any Credit Party nor, to the Borrowers’ knowledge, any Operating Company and/or
officers of such Credit Party or Operating Company have been required to pay any civil money penalty under applicable laws regarding
false, fraudulent or impermissible claims or payments to induce a reduction or limitation of health care services to beneficiaries
of any state or federal health care program, nor, is any such Credit Party, such Operating Company or and/or officer of such Person
currently the subject of any investigation or proceeding that may result in such payment. Neither any Credit Party nor any Operating
Company and/or officers of such Credit Party or such Operating Company have been excluded from participation in the Medicare or
Medicaid programs or any program funded under the “Block grants” to States for Social Services (Title XX) Program.

 

    - 43 -

     

    

 

7.27       Medicaid/Medicare.
Neither any Credit Party nor, to the Borrowers’ knowledge, any Operating Company nor any officer or director of such Person has
engaged in any of the following: (a) knowingly and willfully making or causing to be made a false statement or representation of a material
fact in any application for any benefit or payment under Medicare or Medicaid; (b) knowingly and willfully making or causing to be made
any false statement or representation of a material fact for use in determining rights to any benefit or payment under Medicare or Medicaid;
(c) failing to disclose knowledge by a claimant of the occurrence of any event affecting the initial or continued right to any benefit
or payment under Medicare or Medicaid on its own behalf or on behalf of another, with intent to secure such benefit or payment fraudulently;
(d) knowingly and willfully soliciting or receiving any remuneration (including any kickback, bribe or rebate), directly or indirectly,
overtly or covertly, in cash or in kind or offering to pay such remuneration: (i) in return for referring any individual to a Person for
the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part by Medicare or
Medicaid; or (ii) in return for purchasing, leasing or ordering or arranging for or recommending the purchasing, leasing or ordering of
any good, facility, service or item for which payment may be made in whole in part by Medicare or Medicaid.

 

7.28       Labor
Matters. There are no strikes or other labor disputes pending or, to the knowledge of Borrower, threatened against any Credit Party.
All payments due from any Credit Party on account of wages and employee and retiree health and welfare insurance and other benefits have
been paid or accrued as a liability on its books.

 

7.29       USA
Patriot Act; Absence of Foreign or Enemy Status. Neither any Credit Party nor any of its Affiliates is identified in any
OFAC List. Each Credit Party, and their respective Subsidiaries and Affiliates are in compliance with (a) the Trading with the
Enemy Act, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B
Chapter V, as amended) and any other enabling legislation or executive order relating thereto, (b) the Patriot Act and
(c) other federal or state laws relating to “know your customer” and anti-money laundering rules and
regulations. No part of the proceeds of any Loan will be used directly or indirectly for any payments to any government official or
employee, political party, official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign
Corrupt Practices Act of 1977, as amended. Neither any Credit Party nor any Affiliate of such Credit Party is an “enemy”
or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act (50 U.S.C. App. §§
1 et seq.), as amended. Neither any Credit Party nor any Affiliate of such Credit Party is in violation of, nor will the use
of the Loan violate, the Trading with the Enemy Act, as amended, or any executive orders, proclamations or regulations issued
pursuant thereto, including, without limitation, regulations administered by the Office of Foreign Asset Control of the Department
of the Treasury (31 C.F.R. Subtitle B, Chapter V).

 

    - 44 -

     

    

 

7.30         
Beneficial Ownership Certification. The information included in any Beneficial Ownership Certification provided to the Lender
under or in connection with this Agreement is true and correct in all respects as of the date of delivery thereof.

 

7.31         
Closing Date Acquisition.

 

(a)              
The Closing Date Acquisition has been consummated contemporaneously with the execution and delivery of this Agreement in accordance
with the terms of the Closing Date Purchase Documents, subject to such modifications, supplements and waivers as the Lender shall have
approved in writing.

 

(b)              
No party to any Closing Date Purchase Document has waived, without the consent of the Lender, any condition precedent to the obligations
of any such party to close as set forth in the Closing Date Purchase Documents.

 

(c)              
The aggregate consideration payable under the Closing Date Purchase Documents is equal to $20,055,000.

 

(d)              
True and complete copies of all of the Closing Date Purchase Documents have been delivered to the Lender, together with a true
and complete copy of each document to be delivered at the closing of the Closing Date Acquisition.

 

(e)              
Except as set forth in the Closing Date Purchase Documents delivered to the Lender prior to the date hereof, there are no other
agreements, oral or written, with respect to which any Credit Party thereof has any obligation or liability with respect to the Closing
Date Acquisition.

 

(f)               
No Credit Party nor, to the knowledge of any Borrower, any other Person party to the Closing Date Purchase Documents is in default
in the performance or compliance with any provisions thereof.

 

(g)              
The Closing Date Purchase Documents comply with, and the Closing Date Acquisition has been consummated in accordance with, all
applicable laws, including, without limitation, all Healthcare Laws.

 

(h)              
The Closing Date Purchase Documents are in full force and effect as of the date hereof and have not been terminated, rescinded
or withdrawn.

 

(i)                 All
material requisite approvals by governmental authorities having jurisdiction over the Closing Date Sellers, the Credit Parties and
other Persons referenced therein with respect to the transactions contemplated by the Closing Date Purchase Documents have been
obtained, and no such approvals impose any conditions to the consummation of the transactions contemplated by the Closing Date
Purchase Documents or to the conduct by any Credit Party of its business thereafter which have not been satisfied within the time
periods specified therein.

 

    - 45 -

     

    

 

(j)                
To the knowledge of the Borrowers, none of the Closing Date Seller’s respective representations or warranties in the Closing
Date Purchase Documents contains any untrue statement of a material fact or omits any material fact necessary to make the statements therein
made, in the context in which made, not misleading.

 

 

8.                 
AFFIRMATIVE COVENANTS.

 

The Borrowers, jointly and
severally, covenant and agree that, as long as any Liabilities remain outstanding, and (even if there shall be no such Liabilities outstanding)
as long as this Agreement remains in effect:

 

8.1             
Reports, Certificates and Other Information. The Borrowers shall deliver or cause to be delivered to the Lender:

 

(a)              
Annual Financial Statements. On or before the one hundred twentieth (120th) day after each fiscal year of the
Borrowers and the Operating Companies commencing with the Fiscal Year ended December 31, 2021, a copy of the annual consolidated and consolidating
audited financial statements for the Borrowers and the Operating Companies, as applicable, together with, at least, balance sheets and
statements of income and cash flow for such period, prepared in conformity with GAAP.

 

(b)              
Monthly Reports. On or before the forty fifth (45th) day after the end of each month (1) a copy of internally
prepared financial statements of the Borrowers prepared in accordance with GAAP, and in a manner substantially consistent with the financial
statements referred to in Section 8.1(a) consisting of, at least, an income statement, a balance sheet, and statement of cash
flow as at the close of such month and statements of earnings for such month and for the period from the beginning of the Fiscal Year
to the close of such month and (2) a copy of internally prepared financial statements of the Operating Companies prepared in accordance
with GAAP and in a manner substantially consistent with the financial statements referred to in Section 8.1(a) hereof but
specific to the operations of Operating Companies at the Facilities consisting of, at least, an income statement, a balance sheet, and
statement of cash flow as at the close of such month and statements of earnings for such month and for the period from the beginning of
the Fiscal Year to the close of such month.

 

(c)               Certificates.
Contemporaneously with the furnishing of each annual financial statement and within forty-five (45) calendar days of each Fiscal
Quarter commencing with the Fiscal Quarter ending September 30, 2021, a duly completed compliance certificate with appropriate
insertions, in form and substance reasonably satisfactory to the Lender (a “Compliance Certificate”), dated the
date of such annual financial statement or such Fiscal Quarter and signed on behalf of the Borrower by a Duly Authorized Person,
which Compliance Certificate shall state that no Default or Event of Default has occurred and is continuing, or, if there is any
such event, describes it and the steps, if any, being taken to cure it. In addition, each Compliance Certificate shall contain a
computation of, and show compliance with, the financial ratios and restrictions set forth in Section 9.12 hereof including,
without limitation, financial statements of each Facility necessary to determine compliance with Section 9.12(c) with respect
to such Facility. The computation and calculation of the financial ratios in each Compliance Certificate shall be in form and
substance reasonably acceptable to the Lender.

 

    - 46 -

     

    

 

(d)              
Real Estate Taxes. As paid, evidence of timely payment of real estate taxes owed on the Real Property.

 

(e)              
Tax Returns. Promptly, and in any event no later than 10 days following the filing thereof, copies of all tax returns filed
by each Borrower.

 

(f)               
Notice of Default, Regulatory Matters, Litigation Matters or Adverse Change in Business. Promptly upon learning of the occurrence
of any of the following, written notice thereof which describes the same and the steps being taken by the Borrowers with respect thereto:
(i) the occurrence of a Default or an Event of Default; (ii) except for actions described in clause (iv) below, the institution
or threatened institution of, or any adverse determination in, any litigation, arbitration proceeding or governmental proceeding in which
any injunctive relief is sought or in which money damages in excess of Fifty Thousand Dollars ($50,000) in the aggregate are sought; (iii)
the receipt of any written notice from any governmental agency concerning any material violation or potential material violation of any
regulations, rules or laws applicable to any Borrower; (iv) the occurrence of any personal injury or other action that is not covered
by insurance (or if presumably covered by insurance, the applicable insurance company has not confirmed coverage or liability for payment
in writing) that could reasonably be expected to give rise to a tort claim against any Borrower for an amount equal to or in excess of
Fifty Thousand Dollars ($50,000); or (v) any Material Adverse Change.

 

(g)              
Insurance Reports. (i) At any time after a Default and upon the request of the Lender, a certificate signed by a Duly
Authorized Person that summarizes the property, casualty, liability and malpractice insurance policies carried by the Borrowers and that
certifies that the Lender is the named additional insured, lender’s loss payee and mortgagee, as applicable, with respect to all
property and casualty insurance policies (such certificate to be in form and substance satisfactory to the Lender), and (ii) written
notification of any material change in any such insurance by the Borrowers within five (5) Business Days after receipt of any notice (whether
formal or informal) of such change by any of its insurers.

 

(h)              
Interim Reports. Promptly upon receipt thereof, copies of any management letters and interim and supplemental reports submitted
to any Credit Party by the independent accountants in connection with any interim audit of the books of the Borrowers and copies of each
management control letter provided to the Borrowers by independent accountants.

 

(i)                
Affiliate Transactions. Upon the Lender’s request from time to time, a reasonably detailed description of each of
the transactions between any Borrower and any of its Affiliates during the time period requested by the Lender, which shall include, without
limitation, the amount of money either paid or received, as applicable, by the Borrowers in such transactions.

 

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(j)       Annual
Budgets. As soon as available following the end of each Fiscal Year, but in any event not later than forty-five (45) days after the
end of such Fiscal Year, an annual operating plan for each Facility for the following Fiscal Year, which (i) includes a statement of all
of the material assumptions on which such plan is based, (ii) includes monthly balance sheets, income statements and statements of cash
flows for the following year, (iii) integrates sales, gross profits, operating expenses, operating profit and cash flow projections, and
(iv) includes a description of estimated restructuring expenses to be incurred for the following year, all prepared on the same basis
and in similar detail as that on which operating results are reported (and in the case of cash flow projections, representing management’s
good faith estimates of future financial performance based on historical performance), and including plans for Capital Expenditures.

 

(k)       Lease
Reports. Promptly upon receipt, copies of any material reports or notifications required to be delivered by any Operating Company
to any Borrower pursuant to the terms of any Real Estate Lease, including, without limitation, annual financial statements of the Operating
Companies, quarterly financial statements of the Operating Companies and the other reports required under Section 5.3 and any other applicable
reporting section set forth in any Real Estate Lease, as applicable (and any other successor provisions).

 

(l)Health
Care Reporting. Furnish to the Lender each of the following, to the extent applicable to any Operating Company or Facility: (i)
within three (3) Business Days of receipt by any Operating Company of Form 2567 from any Government Authority or any other copy of
any healthcare related licensure and annual or biannual certification survey report and any statement of deficiencies and any survey
(other than the annual or biannual survey) indicating a violation or deficiency with a scope and severity that could be reasonably
expected to adversely affect either the right to continue participation in Medicare, Medicaid or other reimbursement programs for
existing patients or the right to admit new Medicare patients, Medicaid patients or other reimbursement program patients or result
in the loss or suspension of any Operating Company’s licenses and permits to operate the Facilities or the placement of any
Facility on the Special Focus Facility list of CMS, a copy of such certification survey report, statement of deficiency or other
survey, and within the time period required by the particular agency for submission, a copy of the plan of correction with respect
thereof if such plan of correction is required by such agency issuing the statement of deficiency or notice of violation, and
correct or cause to be corrected any such deficiency or violation within the time period required for cure by such agency; (ii) to
the extent not required in clause (i) above, within seven (7) Business Days of receipt by
any Operating Company of Form 2567 from any Government Authority or any other healthcare related licensure and annual or biannual
certification survey report and any statement of deficiencies and any survey (other than the annual or biannual survey) indicating a
violation or deficiency with a scope and severity above “G”, a copy of such certification survey report,
statement of deficiency or other survey, and within the time period required by the
particular agency for submission, a copy of the plan of correction with respect thereof if such plan of correction is required by
such agency issuing the statement of deficiency or notice of violation, and correct or cause to be corrected any such deficiency or
violation within the time period required for cure by such agency, subject to such agency’s normal appeal process, (iii)
within fifteen (15) days of the receipt by any Borrower, any and all notices disclosing an adverse finding from any licensing,
certifying and/or reimbursement agencies that any Operating Company’s license, Medicare or Medicaid certification or
entitlement to payments pursuant to any program of such Operating Company is being downgraded to a substandard category, revoked, or
suspended, or that action is pending or being considered to downgrade to a substandard category, revoke, or suspend any rights
pursuant to any Borrower’s license, certification or program; and (iv) within five (5) Business Days of the date of the
required filing of cost reports of any Operating Company with Medicaid, Medicare or other applicable agency or pursuant to any
program, or the date of actual filing of such cost report of such Operating Company, whichever is earlier, a complete and accurate
copy of the annual Medicaid, Medicare and other cost reports for such Operating Company, which will be prepared by an independent
certified public accountant or by an experienced cost report preparer reasonably acceptable to Lender, and promptly furnish to
Lender any amendments filed with respect to such reports and all responses, audit reports or inquiries with respect to such
reports

 

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(m)       Beneficial
Ownership Certification. Promptly after knowledge thereof shall have come to the attention of any responsible officer of any Borrower,
written notice of any change in the information provided in the Beneficial Ownership Certification delivered to the Lender that (i) would
result in a change to the list of beneficial owners identified in such certification and (ii) is required to maintain compliance with
the Beneficial Ownership Regulation.

 

(n)       Other
Information. Such other information, certificates, schedules, exhibits or documents (financial or otherwise) concerning the Facilities,
the Credit Parties, the Operating Companies and their respective operations, business, properties, condition or otherwise as the Lender
may reasonably request from time to time.

 

8.2             
Inspection; Audit Fees. Each Borrower will keep proper books of record and account in accordance with GAAP in which full,
true and correct entries shall be made of all dealings and transactions in relation to its business and activities. The Lender, or any
Person designated by the Lender in writing from time to time, shall have the right: (a) from time to time hereafter (but no more than
two (2) times per calendar year prior to an Event of Default), to call and visit at any Borrower's place or places of business (or any
other place where the Collateral or any information relating thereto is kept or located) during ordinary business hours and, prior to
any Event of Default, upon reasonable advance notice (and after any Event of Default, at any time during normal business hours without
the requirement of any advance notice), (i) to inspect, audit, check and make copies of and extracts from such Borrower's books, records,
journals, orders, receipts and any correspondence and other data relating to its business or to any transactions between the parties hereto,
and (ii) to discuss the affairs, finances and business of the Credit Parties with any of the Duly Authorized Persons, and (b) to make
such verification concerning the Collateral as the Lender may consider reasonable under the circumstances. The Borrowers agree to pay
on demand all costs, expenses and reasonable fees incurred by Lender in connection with any inspections or audits of the Borrowers performed
by the Lender under this Section. All such amounts incurred by the Lender hereunder shall bear interest hereunder and shall be additional
Liabilities of the Borrowers to the Lender, secured by the Collateral, if not promptly paid upon the request of the Lender.

 

8.3              Conduct
of Business. Each Borrower shall maintain its limited liability company existence, shall maintain in full force and effect all
licenses, permits, authorizations, bonds, franchises, leases, patents, trademarks and other intellectual property, contracts and
other rights necessary to the conduct of its business, shall continue in, and limit its operations to, the same general line of
business as that currently conducted and shall comply with all applicable laws, orders, regulations and ordinances of all federal,
foreign, state and local governmental authorities, including, without limitation, Healthcare Laws, except to the extent any such
non-compliance could reasonably be expected to result in a Material Adverse Effect. Each Borrower shall keep proper books of record
and account in which full and true entries will be made of all dealings or transactions of or in relation to the business and
affairs of such Borrower, in accordance with GAAP, consistently applied.

 

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8.4             
Claims and Taxes. The Borrowers agree, jointly and severally, to indemnify and hold the Lender harmless from and against
any and all claims, demands, liabilities, losses, damages, penalties, costs and expenses (including, without limitation, reasonable attorneys’
fees) relating to or in any way arising out of the possession, use, operation or control of any Borrower’s property and assets,
including, without limitation, the Collateral. The Borrowers agree, jointly and severally, to pay or cause to be paid all license fees,
bonding premiums and related taxes and charges and shall pay or cause to be paid all of each Borrower’s real and personal property
taxes, including taxes with respect to the Real Property, assessments and charges and all of each Borrower’s franchise, income,
unemployment, use, excise, old age benefit, withholding, sales and other taxes and other governmental charges assessed against any Borrower,
or payable by any Borrower, at such times and in such manner as to prevent any penalty from accruing or any Lien from attaching to its
property, provided that the Borrowers shall have the right to contest in good faith, by an appropriate proceeding promptly initiated and
diligently conducted, the validity, amount or imposition of any such tax, assessment or charge, and upon such good faith contest to delay
or refuse payment thereof, if (a) the Borrowers established adequate reserves to cover such contested taxes, assessments or charges, and
(b) such contest could not be expected to result in a Material Adverse Effect.

 

8.5             
State of Formation. The State of Delaware shall remain each Borrower’s State of formation, unless: (a) such Borrower
provides the Lender with at least thirty (30) days prior written notice of any proposed change, (b) no Event of Default then exists or
will exist immediately after such proposed change, and (c) such Borrower provides the Lender with, at the Borrowers’ sole cost and
expense, such financing statements, and if applicable, landlord waivers, bailee letters and processor letters, and such other agreements
and documents as the Lender shall reasonably request in connection therewith.

 

8.6              Liability
Insurance. The Borrowers shall maintain or cause the Operating Companies to maintain, at their expense, general liability
insurance and environmental liability insurance in such amounts and with such deductibles as are acceptable to the Lender in its
reasonable determination and shall deliver to the Lender the original (or a certified) copy of each policy of insurance and evidence
of the payment of all premiums therefor. In addition, the Borrowers shall maintain, or cause the Operating Companies to maintain, at
their expense, business interruption insurance in such amounts and with such deductibles as are acceptable to the Lender in its
reasonable determination and shall deliver to the Lender the original (or a certified) copy of each policy of insurance and evidence
of the payment of all premiums therefor. Such policies of insurance shall contain an endorsement showing the Lender as additional
insured thereunder and providing that the insurance company will give the Lender at least thirty (30) days prior written notice
before any such policy or policies of insurance shall be altered or canceled.

 

    - 50 -

     

    

 

8.7             
Property Insurance. The Borrowers shall, or shall cause the Operating Companies, at their expense, to keep and maintain
their respective assets insured against loss or damage by fire, theft, explosion, spoilage, and all other hazards and risks ordinarily
insured against by other owners or users of such properties in similar businesses in an amount at least equal to the full insurable value
of all such property. All such policies of insurance shall be in form and substance reasonably satisfactory to the Lender. The Borrowers
shall deliver to the Lender the original (or a certified) copy of each policy of insurance and evidence of payment of all premiums therefor.
Such policies of insurance shall contain an endorsement, in form and substance satisfactory to the Lender, showing the Lender as “Lender’s
Loss Payee” and “Mortgagee” and all loss payable to the Lender, as its interests may appear, as provided in this Section
8.7. Such endorsement shall provide that such insurance company will give the Lender at least thirty (30) days prior written notice
before any such policy or policies of insurance shall be altered or canceled and that no act or default of the Borrowers or any other
Person shall affect the right of the Lender to recover under such policy or policies of insurance in case of loss or damage. The Borrowers
hereby direct all insurers under such policies of insurance to pay all proceeds of insurance policies directly to the Lender and the Lender
shall absent an Event of Default permit the Borrowers to use such proceeds to restore or rebuild the damaged property as the Borrowers
shall determine in their reasonable and good faith determination. Upon the occurrence and during the continuance of an Event of Default,
the Borrowers irrevocably make, constitute and appoint the Lender (and all officers, employees or agents designated by the Lender in writing
to the Borrowers) as the Borrowers’ true and lawful attorney-in-fact for the purpose of making, settling and adjusting claims under
all such policies of insurance, endorsing the name of the Borrowers on any check, draft, instrument or other item of payment received
by the Borrowers or the Lender pursuant to any such policies of insurance and for making all determinations and decisions with respect
to such policies of insurance.

 

UNLESS THE BORROWERS
PROVIDE THE LENDER WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT WITHIN FIVE BUSINESS DAYS FOLLOWING
LENDER’S WRITTEN REQUEST, THE LENDER MAY PURCHASE INSURANCE AT THE BORROWERS’ EXPENSE TO PROTECT THE LENDER’S
INTERESTS IN THE COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT THE INTERESTS IN THE COLLATERAL. THE COVERAGE PURCHASED BY
THE LENDER MAY NOT PAY ANY CLAIMS THAT THE BORROWERS MAKE OR ANY CLAIM THAT IS MADE AGAINST THE BORROWERS IN CONNECTION WITH THE
COLLATERAL. THE BORROWERS MAY LATER CANCEL ANY SUCH INSURANCE PURCHASED BY THE LENDER, BUT ONLY AFTER PROVIDING THE LENDER WITH
EVIDENCE THAT THE BORROWERS HAVE OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT. IF THE LENDER PURCHASES INSURANCE FOR THE
COLLATERAL, THE BORROWERS WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT THE
LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF
THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE OBLIGATIONS SECURED HEREBY. THE COSTS OF THE INSURANCE MAY BE MORE
THAN THE COST OF INSURANCE THE BORROWERS MAY BE ABLE TO OBTAIN ON ITS OWN.

 

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8.8             
Environmental. The Borrowers shall promptly notify and furnish Lender with a copy of any and all Environmental Notices which
are received by it or any Credit Party in connection with the Property. The Borrowers shall take, or shall cause the Operating Companies
to take, prompt and appropriate action in response to any and all such Environmental Notices and shall promptly furnish Lender with a
description of the Borrowers’ or such Credit Party’s Response thereto. The Borrowers shall (a) obtain and maintain all permits
required under all applicable federal, state, and local Environmental Laws, except as to which the failure to obtain or maintain would
not have a Material Adverse Effect; and (b) keep and maintain the Property and each portion thereof in compliance with, and not cause
or permit the Property or any portion thereof to be in violation of, any Environmental Law, except as to which the failure to comply with
or the violation of which, would not have a Material Adverse Effect.

 

8.9             
Banking Relationship Generally; Rent Deposits. The Borrowers shall at all times maintain all of their primary deposit and
operating accounts (other than payroll, tax and trust accounts) with the Lender and the Borrowers shall cause all rent and other payments
owed to any Borrower by any Operating Company under any Real Estate Lease to be paid by such Operating Company directly into a Lease Deposit
Account. The Borrowers shall use the Lender as the primary cash management bank for all of its cash management activities (other than
payroll, tax and trust accounts), including, without limitation, the Lender acting as the principal depository and remittance agent for
the Borrowers.

 

8.10         
Intellectual Property. If after the Closing Date any Borrower shall own or otherwise possess any registered patents, copyrights,
trademarks, trade names, or service marks (or file an application to attempt to register any of the foregoing), such Borrower shall promptly
notify the Lender in writing of same and execute and deliver any documents or instruments (at the Borrowers’ sole cost and expense)
reasonably required by Lender to perfect a security interest in and lien on any such federally registered intellectual property in favor
of the Lender and assist in the filing of such documents or instruments with the United States Patent and Trademark Office and/or United
States Copyright Office/Library of Congress or other applicable registrar.

 

8.11          Change
of Location; Etc. No Collateral may be moved to another location within the continental United States unless: (a) the Borrowers
provide the Lender with at least thirty (30) days prior written notice, (b) no Event of Default then exists, and (c) the Borrowers
provide the Lender with, at Borrowers’ sole cost and expense, such financing statements, landlord waivers, bailee and
processor letters and other such agreements and documents as the Lender shall reasonably request. The Borrowers shall or shall cause
the Operating Companies to defend and protect the Collateral against and from all claims and demands of all Persons (other than the
holders of Permitted Liens) at any time claiming any interest therein adverse to the Lender. If the Borrowers desire to change its
principal place of business and chief executive office, the Borrowers shall notify the Lender thereof in writing no later than
thirty (30) days prior to such change and the Borrowers shall provide the Lender with, at Borrowers’ sole cost and expense,
such financing statements and other documents as the Lender shall reasonably request in connection with such change. If the
Borrowers shall decide to change the location where its books and records are maintained, the Borrowers shall notify the Lender
thereof in writing no later than thirty (30) days prior to such change.

 

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8.12         
Health Care Related Matters. Each Operating Company shall continue to be duly licensed by the State of California to operate
the applicable Facility and shall otherwise maintain Medicare and Medicaid provider status. The Borrowers shall cause each Operating Company
to maintain all licenses, permits, certificates of need, reimbursement contracts and programs, and any other agreements necessary for
the use and operation of the respective Facilities or as may be necessary for participation of such Operating Company in Medicare and
Medicaid and other applicable reimbursement programs, to remain in full force and effect at all times. Each Operating Company shall at
all times maintain in full force and effect a Medicare and Medicaid certification and a Medicare and Medicaid provider agreement. Each
Credit Party and each Operating Company shall at all times be in material compliance with all rules and regulations of the CMS and shall
take all necessary steps to protect personally identifiable health information for each patient substantially in accordance with the CMS
laws and regulations.

 

8.13         
US Patriot Act. Each Borrower covenants to Lender that if any Borrower becomes aware that any Credit Party or its respective
Affiliates is identified on any Blocked Persons List (as identified in Section 7.29 hereof), such Borrower shall immediately notify
Lender in writing of such information. Each Borrower further agrees that in the event that it or any Affiliate is at any time identified
on any Blocked Persons List, such event shall be an Event of Default, and shall entitle Lender to exercise any and all remedies provided
in any Financing Agreements or otherwise permitted by law. In addition, in response to any such notice Lender may immediately contact
the Office of Foreign Assets Control and any other government agency Lender deems appropriate in order to comply with its obligations
under any law, regulation, order or decree regulating or relating to terrorism and international money laundering.

 

8.14         
Further Assurances. The Borrowers will, at their own cost and expense, cause to be promptly and duly taken, executed, acknowledged
and delivered all such further acts, documents and assurances as may from time to time be necessary or as the Lender may from time to
time reasonably request in order to carry out the intent and purposes of this Agreement and the other the Financing Agreements and the
transactions contemplated thereby, including all such actions to establish, create, preserve, protect and perfect a first-priority Lien
in favor of the Lender on the Collateral (including Collateral acquired after the date hereof), subject to Permitted Liens, including,
as set forth in Section 8.16 of this Agreement.

 

8.15         
Single Purpose Entity Provisions. The business and purposes of each Borrower is and will continue to be limited to the following:

 

(i)        to
acquire, own, hold, lease, operate, manage, maintain, develop and/or improve the applicable Real Property;

 

(ii)       to
enter into and perform its obligations under the Financing Agreements;

 

(iii)       to
sell, transfer, service, convey, dispose of, pledge, assign, borrow money against, finance or otherwise deal with the Real Property to
the extent permitted hereunder and under the Financing Agreements;

 

    - 53 -

     

    

 

(iv)       to
lease the applicable Real Property to the applicable Operating Company; and

 

(v)       to
engage in any lawful act or activity and to exercise any powers permitted to entities of its type pursuant to the laws of its state of
organization that are related or incidental to and necessary, convenient or advisable for the accomplishment of the above mentioned purposes.

 

Each Borrower agrees and covenants
that it shall:

 

(i)       not
own any asset or property other than (A) a fee interest in the applicable Real Property, and (B) incidental personal property necessary
for the ownership or operation of such Real Property;

 

(ii)       remain
solvent and pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets, to the extent
of its assets, as the same shall become due;

 

(iii)       do
or cause to be done all things necessary or desirable to observe organizational formalities of such Borrower and preserve its existence;
and

 

(iv)       to
the extent of cash flow available from operations, maintain adequate capital for the normal obligations reasonably foreseeable in a business
of its size and character and in light of its contemplated business operations.

 

8.16         
Operation and Maintenance Plans. If an Operation and Maintenance Plan has been established with respect to any Facility,
the applicable Borrower shall comply in a timely manner with, and cause all employees, agents, and contractors of such Borrower and any
other persons encompassed by the Operation and Maintenance Plan and present on the Facility, including, without limitation, any employee,
agent or contractor of the applicable Operating Company (or Prior Operating Company), to comply with the Operation and Maintenance Plan.
All costs of performance of such Borrower’s obligations under any Operation and Maintenance Plan shall be paid by Borrower, and
Lender’s out-of-pocket costs incurred in connection with the monitoring and review of the Operation and Maintenance Plan and such
Borrower’s performance shall be paid by such Borrower upon demand by Lender.  Any such out-of-pocket costs of Lender which
such Borrower fails to pay promptly shall become an additional part of the Liabilities.

 

8.17         
Medicare Advance Payment Reserve. Until such time as all obligations of the Prior Operating Companies to repay or return
all Medicare Advance Payments received by the Prior Operating Companies (as determined by the Lender in its reasonable discretion), the
Borrowers shall cause (i) the Medicate Advance Payment Reserve Escrow Arrangement to be in full force and effect and (ii) an amount equal
to Three Hundred Fifty Four Thousand Four Hundred Ninety Five and 79/100 Dollars ($354,495.79) to be on deposit in the escrow account
subject thereto.

 

9.                 
NEGATIVE COVENANTS.

 

The Borrowers, jointly
and severally, covenant and agree that as long as any (other than contingent indemnification obligations) remain outstanding, and
(even if there shall be no such Liabilities outstanding) as long as this Agreement remains in effect (unless the Lender shall give
its prior written consent thereto):

 

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9.1             
Encumbrances. No Borrower shall create, incur, assume or suffer to exist any Lien of any nature whatsoever on any of its
assets or property, including, without limitation, the Collateral, other than the following (“Permitted Liens”): (a)
Liens securing the payment of taxes, either not yet due or the validity of which is being contested in good faith by appropriate proceedings,
and as to which the Borrowers shall, if appropriate under GAAP, has set aside on its books and records adequate reserves, provided,
that such contest does not have a Material Adverse Effect; (b) deposits under workmen’s compensation, unemployment insurance, social
security and other similar laws; (c) Liens in favor of the Lender; (d) liens imposed by law, such as mechanics’, materialmen’s,
landlord’s, warehousemen’s, carriers’ and other similar liens, securing obligations incurred in the ordinary course
of business that are not past due for more than ten (10) Business Days or that are being contested in good faith by appropriate proceedings
and for which appropriate reserves have been established or that are not yet due and payable; and (e) purchase money security interests
upon or in any property acquired or held by the Borrowers in the ordinary course of business to secure the purchase price of such property
so long as: (i) the aggregate indebtedness relating to such purchase money security interests and Capitalized Lease Obligations does not
at any time exceed One Hundred Twenty Five Thousand Dollars ($125,000) in the aggregate at any time, (ii) each such lien shall only attach
to the property to be acquired; and (iii) the indebtedness incurred shall not exceed one hundred percent (100%) of the purchase price
of the item or items purchased.

 

9.2             
Indebtedness. No Borrower shall incur, create, assume, become or be liable in any manner with respect to, or permit to exist,
any Indebtedness, except (a) the Liabilities and (b) the indebtedness not to at any time exceed Fifty Thousand Dollars ($50,000) relating
to the purchase money security interests and Capitalized Lease Obligations permitted pursuant to Section 9.1(e) hereof.

 

9.3             
Consolidations, Mergers or Acquisitions. Without the prior written consent of the Lender, no Borrower shall be a party to
any merger, consolidation, or exchange of stock or other equity, or purchase or otherwise acquire all or substantially all of the assets
or stock of any class of, or any other evidence of an equity interest in, or any partnership, limited liability company, or joint venture
interest in, any other Person, or sell, transfer, convey or lease all or any substantial part of its assets or property, or sell or assign,
with or without recourse, any receivables. No Borrower shall form or establish any subsidiary without the Lender’s prior written
consent.

 

9.4             
Investments or Loans. No Borrower shall make, incur, assume or permit to exist any loans or advances, or any investments
in or to any other Person, except (a) investments in short-term direct obligations of the United States Government, (b) investments in
negotiable certificates of deposit issued by the Lender or by any other bank satisfactory to the Lender, payable to the order of the Borrower
or to bearer, and (c) investments in commercial paper rated at least A-1 by Standard & Poor’s Corporation or P-1 by Moody’s
Investors Service, Inc., or carrying an equivalent rating by a nationally recognized rating agency if both of the two named rating agencies
cease publishing ratings of investments.

 

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9.5             
Guarantees. No Borrower shall guarantee, endorse or otherwise in any way become or be responsible for obligations of any
other Person, whether by agreement to purchase the Indebtedness of any other Person or through the purchase of goods, supplies or services,
or maintenance of working capital or other balance sheet covenants or conditions, or by way of stock purchase, capital contribution,
advance or loan for the purpose of paying or discharging any Indebtedness or obligation of such other Person or otherwise, except endorsements
of negotiable instruments for collection in the ordinary course of business.

 

9.6             
Disposal of Property. No Borrower shall sell, assign, lease, transfer or otherwise dispose of any of its properties, assets
and rights to any Person except (i) sales of Inventory in the ordinary course of business and (ii) sales of obsolete Equipment being replaced
in the ordinary course of business with other Equipment with a fair market value and orderly liquidation value equal to or greater than
the Equipment being replaced.

 

9.7             
Use of Proceeds. No Borrower shall use the proceeds of the Loan for any purpose other than to pay a portion of the purchase
price under the Closing Date Purchase Documents and related transaction expenses.

 

9.8             
Loans to Officers; No Consulting and Management Fees. No Borrower shall make any loans to its members, managers, officers,
employees, Affiliates, or to any other Person, and no Borrower shall declare, make or pay any consulting, management fees, investment
banking fees, or similar fees or payments to its members, managers, officers, employees, agents, or Affiliates or any other Person, whether
for services rendered to the Borrowers or otherwise.

 

9.9             
Distributions and Equity Redemptions. No Borrower shall (i) declare, make or pay any dividend or other distribution (whether
in cash, property or rights or obligations) to or for the benefit of any officer, manager, member, Affiliate or any other Person or (ii)
purchase or redeem any of the membership interests or units of any Borrower or any options or warrants with respect thereto, or set aside
any funds for any such purpose; provided, however, that the Borrowers may make (y) during each Fiscal Quarter, distributions
in cash to Parent in an amount estimated by the manager(s) of the Borrowers to equal the amount necessary for the respective members of
Parent to pay their actual state and United States federal income tax liabilities in respect of income earned by the Borrowers (the “Tax
Liability Amount”); provided, however, that any such distributions shall be net of any prior year loss carry-forward;
provided, further that any distributions made to Parent as permitted under this Section 9.9(y) during any Fiscal Year which exceed the
actual Tax Liability Amount of the members of Parent as calculated at the end of such Fiscal Year shall be contributed back to the Borrowers
by Parent promptly, but in any event, within thirty (30) days after the end of such Fiscal Year; and (z) distributions to Parent (and
subsequent to Parent’s members) on a monthly basis within fifteen (15) days after the end of each month; provided that immediately
before and after giving pro forma effect to any such distributions (1) no Default or Event of Default has occurred and is continuing and
(2) not less than ten (10) days prior to any such distribution, the Borrowers have delivered a true, correct and complete copy of an updated
Compliance Certificate (together with the most recent financial statements delivered pursuant to Section 8.1(b) of this Agreement) demonstrating
the Borrowers’ compliance with the financial covenants set forth in Section 9.12 of this Agreement on a proforma basis as of the
last day of the then most recently ended month for which financial statements were required to be provided pursuant to Section 8.1(b)
of this Agreement.

 

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9.10         
Payments in Respect of Subordinated Debt. No Borrower shall make any payment in respect of any Indebtedness for borrowed
money that is subordinated to the Liabilities (including, without limitation, the Subordinated Debt, unless otherwise permitted expressly
under the terms of a subordination agreement in form and substance acceptable to the Lender).

 

9.11         
Transactions with Affiliates. Subject to the proviso contained in Sections 9.8 and 9.9 hereof, no Borrower
shall transfer any cash or property to any Affiliate or enter into any transaction, including, without limitation, the purchase, lease,
sale or exchange of property or the rendering of any service to any Affiliate; provided, however, that the Borrowers may
enter into transactions with Affiliates for fair value in the ordinary course of business pursuant to terms that are no less favorable
to the Borrowers than the terms upon which such transfers or transactions would have been made had such transfers or transactions been
made to or with a Person that is not an Affiliate.

 

9.12         
Financial Ratios.

 

(a)              
Minimum Fixed Charge Coverage Ratio. The Borrowers shall not permit the Fixed Charge Coverage Ratio to be less than 1.05
to 1.00, measured as of the last day of each Fiscal Quarter for the prior four fiscal quarters subject to adjustments to such measurement
period as set forth in the definition of Fixed Charge Coverage Ratio.

 

(b)              
Consolidated Minimum EBITDAR. The Borrowers shall not permit consolidated EBITDAR with respect to the Facilities to be less
than Minimum EBITDAR Amount in effect at such time for the trailing three (3) month period ending each Fiscal Quarter during the term
of this Agreement commencing with the Fiscal Quarter ending September 30, 2021.

 

(c)              
Acknowledgement. The Borrowers acknowledge and agree that the calculation and computation of the foregoing financial ratios
and covenants shall be pursuant to and in accordance with Section 8.1(c) hereof and be tested on each Fiscal Quarter ending during
the term of this Agreement.

 

9.13         
Change in Nature of Business. No Borrower shall make any change in the nature of such Borrower’s business carried
on as of the Closing Date. Without the prior written consent of the Lender, which may be granted or withheld in the Lender’ sole
discretion, no Borrower shall permit any Person other than the Operating Companies and the Management Company to operate or control any
Facility, whether by management agreement, joint venture agreement or otherwise.

 

9.14          Other
Agreements. No Borrower shall enter into any agreement containing any provision which would be violated or breached by the
performance of its obligations hereunder or under any Financing Agreement to which any Borrower is a party or which would violate or
breach any provision hereof or thereof, or that would or could reasonably be expected to adversely affect the Lender’s
interests or rights under this Agreement and the other Financing Agreements to which any Borrower is a party or the likelihood that
the Liabilities will be paid in full when due, nor shall any Borrower’s limited liability company agreement be amended or
modified in any way that would violate or breach any provision hereof or of any Financing Agreement, or that would or could
reasonably be expected to adversely affect the Lender’s interests or rights under this Agreement and the other Financing
Agreements or the likelihood that the Liabilities will be paid in full when due; provided, prior to any amendment or modification of
such Borrower’s limited liability company agreement, such Borrower shall furnish a true, correct and complete copy of any such
proposed amendment or modification to the Lender.

 

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9.15         
Lock Box Accounts. No Borrower shall establish or open any lockbox or blocked account with any Person (other than the Lender)
after the Closing Date.

 

9.16         
State of Formation and Name. Except in accordance with Section 8.5 hereof, no Borrower shall change its state of
formation from that of the State of Delaware or its name as identified in the Recitals hereto.

 

9.17         
Environmental. No Borrower shall permit, and the Borrowers shall cause the Operating Companies not to permit, any Property
(including the Real Property) or any portion thereof to be involved in the use, generation, manufacture, storage, disposal or transportation
of Hazardous Substances except in compliance with all Environmental Laws.

 

9.18Real Estate Lease
and Management Agreement. No Borrower shall amend, modify or supplement any Real Estate Lease or permit any Operating Company to amend,
modify or supplement any (i) Management Agreement or (ii) Operations Transfer Agreement, in each case, in any manner that would or could
be expected to adversely affect the Lender’s interests under this Agreement or the other Financing Agreements, or the likelihood
that the Liabilities will be paid in full when due, without the Lender’s prior written consent. In any event, the Borrowers shall
provide the Lender with fifteen (15) days’ written notice prior to entering into any non-adverse amendment, modification or supplement
to any Real Estate Lease or such Management Agreement or Operations Transfer Agreement allowed under this Section 9.18, which such
notice shall indicate a reasonably detailed description of such non-adverse amendment, modification or supplement. Copies of any amendments
to any Real Estate Lease, Management Agreement or Operations Transfer Agreement shall be provided to the Lender promptly following the
execution thereof.

 

9.19         Fiscal
Year. No Borrower shall change its Fiscal Year.

 

9.20         Tax
Election. No Borrower shall change its tax election with the Internal Revenue Service without the prior written consent of the Lender.

 

9.21         Amendments
or Waivers. Without the prior written consent of the Lender, no Borrower shall permit its organizational documents (e.g., charter,
certificate or limited partnership agreement, or other similar organizational documents) to be amended or any provision thereof waived,
the effect of which amendment or waiver could reasonably be expected to have a Material Adverse Effect or otherwise be materially adverse
to the to the rights and interests of the Lender.

 

10.             
DEFAULT, RIGHTS AND REMEDIES OF THE LENDER.

 

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10.1         
 Event of Default. Any one or more of the following shall constitute an “Event of Default” under this Agreement:

 

(a)              
any Borrower fails to pay (i) any principal or interest payable hereunder or under the Note on the date due, declared due or demanded
in accordance with the terms hereof, or (ii) any other cost, expense, fee or other amount payable to the Lender under this Agreement or
under any other Financing Agreement (including, without limitation, the Note) within three (3) calendar days after the date when any such
payment is due, declared due or demanded in accordance with the terms hereof;

 

(b)              
any Borrower fails or neglects to perform, keep or observe any of the covenants, conditions or agreements set forth in Sections
2.2, 8.1, 8.5, 8.6, 8.7, 8.9, 8.11, 8.12, 8.l5 or 8.17 hereof, or any of the Sections of Article 9 hereof;

 

(c)              
any Credit Party fails or neglects to perform, keep or observe any of the covenants, conditions, promises or agreements contained
in this Agreement (other than those specified in Section 10.1(b) hereof) or in any Financing Agreement to which it is a party and
such failure or neglect shall continue for a period of twenty (20) calendar days;

 

(d)              
any representation or warranty heretofore, now or hereafter made by any Credit Party in this Agreement or any of the other Financing
Agreements is untrue, misleading or incorrect in any material respect, or any schedule, certificate, statement, report, financial data,
notice, or writing furnished at any time by any Credit Party to the Lender is untrue, misleading or incorrect in any material respect,
on the date as of which the facts set forth therein are stated or certified;

 

(e)              
a judgment, decree or order requiring payment in excess of Two Hundred Fifty Thousand Dollars ($250,000) shall be rendered against
any Credit Party and such judgment or order shall remain unsatisfied or undischarged and in effect for thirty (30) consecutive days without
a stay of enforcement or execution, provided that this clause (e) shall not apply to any judgment for which such Credit Party is
fully insured and with respect to which the insurer has admitted liability;

 

(f)               
a notice of Lien, levy or assessment is filed or recorded with respect to any of the assets of any Credit Party (including, without
limitation, the Collateral), by the United States, or any department, agency or instrumentality thereof, or by any state, county, municipality
or other governmental agency or any taxes or debts owing at any time or times hereafter to any one or more of them become a Lien, upon
any of the assets of any Credit Party (including, without limitation, the Collateral), provided that this clause (f) shall not
apply to any Liens, levies, or assessments which a Credit Party is contesting in good faith (provided the Borrowers have complied with
the provisions of clauses (a) and (b) of Section 8.4 hereof) or which relate to current taxes not yet due and payable;

 

(g)              
any material portion of the Collateral or any portion of any Real Property is attached, seized, subjected to a writ or distress
warrant, or is levied upon, or comes within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors;

 

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(h)              
 a proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or
statute is filed against any Credit Party, and any such proceeding is not dismissed within forty-five (45) days of the date of its filing,
or a proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or statute
is filed by any Credit Party, or any Credit Party makes an assignment for the benefit of creditors, or any Credit Party takes any action
to authorize any of the foregoing;

 

(i)                
any Credit Party voluntarily or involuntarily dissolves or is dissolved, or its existence terminates or is terminated;

 

(j)     
           any Credit Party becomes insolvent or fails generally to pay its debts as they become due;

 

(k)                any
Credit Party is enjoined, restrained, or in any way prevented by the order of any court or any administrative or regulatory agency from
conducting all or any material part of its business affairs;

 

(l)                 a
breach by any Credit Party shall occur under any material agreement, document or instrument (other than an agreement, document or instrument
evidencing the lending of money), whether heretofore, now or hereafter existing between the Borrower and any other Person and the effect
of such breach will or could reasonably be expected to have or create a Material Adverse Effect;

 

(m)               any
Credit Party shall fail to make any payment due on any other obligation for borrowed money or shall be in breach of any agreement evidencing
the lending of money and the effect of such failure or breach would result in the acceleration of any obligation, liability or indebtedness
in excess of Fifty Thousand Dollars ($50,000); provided that the Credit Parties shall have fifteen (15) days to contest in good faith
such breach or purported breach as long as the Credit Parties have established an adequate reserve to cover such amount and such contest
is not reasonably likely to have or cause a Material Adverse Effect;

 

(n)                there
shall be instituted in any court criminal proceedings against any Credit Party, any Operating Company or their respective Affiliates,
or any Credit Party, any Operating Company or their respective Affiliates shall be indicted for any crime, in either case for which forfeiture
of a material amount of its property is a potential penalty, or any governmental enforcement action involving any criminal penalties or
exclusion from any federal or state health care program shall have been imposed against any such Persons;

 

(o)                a
Change of Control shall occur other than a Change of Control with respect to which the Lender has provided prior written consent, such
consent to be provided in the Lender’s sole discretion;

 

(p)                any
Lien securing the Liabilities shall, in whole or in part, cease to be a perfected first priority Lien (subject only to the Permitted
Liens); this Agreement, any of the Financing Agreements, shall (except in accordance with its terms), in whole or in part,
terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligations of any Credit Party party
thereto; or any Credit Party shall directly or indirectly, contest in any manner such effectiveness, validity, binding nature or
enforceability;

 

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(q)               any
material breach of, noncompliance with or default under any Financing Agreement by any party thereto (other than by the Lender) after
expiration of any applicable notice and cure period;

 

(r)                 institution
by the PBGC, a Credit Party or any ERISA Affiliate of steps to terminate any Plan or to organize, withdraw from or terminate a Multiemployer
Plan if as a result of such reorganization, withdrawal or termination, any Credit Party or any ERISA Affiliate could be required to make
a contribution to such Plan or Multiemployer Plan, or could incur a liability or obligation to such Plan or Multiemployer Plan, in excess
of One Hundred Thousand Dollars ($100,000), or (ii) a contribution failure occurs with respect to any Plan sufficient to give rise to
a lien under ERISA;

 

(s)                an “event
of default” or “default” shall occur under any Real Estate Lease, any Management Agreement or any Operations Transfer
Agreement after the expiration of any applicable notice and cure period therein, if any, or any Real Estate Lease, any Management Agreement
or any Operations Transfer Agreement shall terminate, or any Borrower shall cease to own the Real Property owned by such Borrower as of
the Closing Date (after giving effect to the Closing Date Acquisition), or a state or federal regulatory agency shall have revoked a Medicare
or Medicaid qualification or any other license, permit or certificate that is material to the operation of any Facility or any portion
of the Real Property as currently conducted, regardless of whether such license, permit, certificate or qualification was held by or originally
issued for the benefit of a Borrower, a lessor or any other Person, including any Operating Company;

 

(t)                except
as may be permitted under Section 9.13 hereof, any Management Agreement shall be terminated or assigned by the Management Company or the
Management Company (or its subsidiaries or affiliates) shall cease to actively manage the applicable Facility;

 

(u)               a Material
Adverse Change shall occur; and/or

 

(v)               (1) there shall
occur with respect to any Facility any Medicare or Medicaid survey deficiencies at Level I, J, K, L or worse (i) which deficiencies are
not cured within the amount of time permitted by the applicable reviewing agency; (ii) which result in the imposition by any Government
Authority or the applicable state survey agency of sanctions in the form of either a program termination, temporary management, “Denial
of Payment” (or similar denial) for new admission or otherwise (which continues for thirty (30) days or more) and/or closure of
such Facility and (iii) which sanctions could have a Material Adverse Effect as determined by Lender in its reasonable discretion or (2)
any Facility is otherwise placed on the “Special Focus Facility” list by CMS or any other Government Authority.

 

10.2          Acceleration.
Upon the occurrence of any Event of Default described in Sections 10.1(h), (i), or (j), the Commitment (if it has not
theretofore terminated) shall automatically and immediately terminate and all of the Liabilities shall immediately and
automatically, without presentment, demand, protest or notice of any kind (all of which are hereby expressly waived), be immediately
due and payable; and upon the occurrence and during the continuance of any other Event of Default, the Lender may at its sole option
declare the Commitment (if they have not theretofore terminated) to be terminated and any or all of the Liabilities may, at the sole
option of the Lender, and without presentment, demand, protest or notice of any kind (all of which are hereby expressly waived), be
declared, and thereupon shall become, immediately due and payable, whereupon the Commitment shall immediately terminate.

 

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10.3         
Rights and Remedies Generally. Upon the occurrence and during the continuance of any Event of Default, the Lender shall
have, in addition to any other rights and remedies contained in this Agreement and in any of the other Financing Agreements, all of the
rights and remedies of a secured party under the Code or other applicable laws, all of which rights and remedies shall be cumulative,
and non-exclusive, to the extent permitted by law, including, without limitation, the right of Lender to sell, assign, or lease any or
all of the Collateral or the Real Property. Upon notice to the Borrowers after an Event of Default and during the continuance thereof,
Borrowers at their own expense shall assemble all or any part of the Collateral as determined by Lender and make it available to Lender
at any location designated by Lender. In such event, the Borrowers shall, at their sole cost and expense, store and keep any Collateral
so assembled at such location pending further action by Lender and provide such security guards and maintenance services as shall be necessary
to protect and preserve such Collateral. In addition to all such rights and remedies, the sale, lease or other disposition of the Collateral,
or any part thereof, by the Lender after an Event of Default and during the continuance thereof may be for cash, credit or any combination
thereof, and the Lender may purchase all or any part of the Collateral at public or, if permitted by law, private sale, and in lieu of
actual payment of such purchase price, may set-off the amount of such purchase price against the Liabilities of the Borrowers then owing.
Any sales of such Collateral may be adjourned from time to time with or without notice. The Lender may, in its sole discretion, cause
the Collateral to remain on any Borrower’s premises, at the Borrowers’ expense, pending sale or other disposition of such
Collateral. The Lender shall have the right after an Event of Default and during the continuance thereof to conduct such sales on any
Borrower’s premises, at the Borrowers’ expense, or elsewhere, on such occasion or occasions as the Lender may see fit.

 

10.4         
Entry Upon Premises and Access to Information. Upon the occurrence and during the continuance of any Event of Default, the
Lender shall have the right to enter upon the premises of any Borrower where the Collateral is located without any obligation to pay rent
to such Borrower, or any other place or places where such Collateral is believed to be located and kept, and remove such Collateral therefrom
to the premises of the Lender or any agent of the Lender, for such time as the Lender may desire, in order to effectively collect or liquidate
such Collateral. Upon the occurrence and during the continuance of any Event of Default, the Lender shall have the right to obtain access
to the Borrowers’ data processing equipment, computer hardware and software relating to the Collateral and to use all of the foregoing
and the information contained therein in any manner the Lender deems appropriate. Upon the occurrence and during the continuance of any
Event of Default, the Lender shall have the right to notify post office authorities to change the address for delivery of any Borrower’s
mail to an address designated by the Lender and to receive, open and process all mail addressed to such Borrower to the extent such mail
is in connection with accounts receivable collections provided that such action does not violate any of the Operating Companies’
residents’ rights to privacy under applicable law.

 

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10.5         
 Sale or Other Disposition of Collateral by the Lender. Any notice required to be given by the Lender of a sale, lease or
other disposition or other intended action by the Lender, with respect to any of the Collateral or any Real Property, which is deposited
in the United States mails, postage prepaid and duly addressed to the Borrower at the address specified in Section 11.12 hereof,
at least ten (10) calendar days prior to such proposed action shall constitute fair and reasonable notice to the Borrowers of any such
action. The net proceeds realized by the Lender upon any such sale or other disposition, after deduction for the expense of retaking,
holding, preparing for sale, selling or the like and the attorneys’ and paralegal’ fees and legal expenses incurred by the
Lender in connection therewith, shall be applied as provided herein toward satisfaction of the Liabilities, including, without limitation,
such Liabilities described in Sections 8.2 and 11.2 hereof. The Lender shall account to the Borrowers for any surplus realized
upon such sale or other disposition, and the Borrowers shall remain liable for any deficiency. The commencement of any action, legal or
equitable, or the rendering of any judgment or decree for any deficiency shall not affect the Lender’s Liens in the Collateral until
the Liabilities are fully paid. The Borrowers agree that the Lender has no obligation to preserve rights to the Collateral against any
other Person. If and to the extent applicable, the Lender is hereby granted a license or other right to use, without charge, the Borrowers’
labels, patents, copyrights, rights of use of any name, trade secrets, trade names, tradestyles, trademarks, service marks and advertising
matter or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling
any such Collateral or any Real Property, and the Borrowers’ respective rights and benefits under all licenses and franchise agreements,
if any, shall inure to the Lender’s benefit until the Liabilities are paid in full.

 

10.6         
Waiver of Demand. Demand, presentment, protest and notice of nonpayment are hereby waived by each Borrower. Each Borrower
also waives the benefit of all valuation, appraisal and exemption laws.

 

10.7         
Waiver of Notice. TO THE FULLEST EXTENT PERMITTED BY LAW, UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF
DEFAULT, EACH BORROWER HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE BY THE LENDER OF ITS RIGHTS TO
REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR HEARING.

 

11.             
MISCELLANEOUS.

 

11.1          Waiver.
The Lender’s failure, at any time or times hereafter, to require strict performance by any Credit Party of any provision of
this Agreement or the Financing Agreements shall not waive, affect or diminish any right of the Lender thereafter to demand strict
compliance and performance therewith. Any suspension or waiver by the Lender of an Event of Default under this Agreement or a
default under any of the other Financing Agreements shall not suspend, waive or affect any other Event of Default under this
Agreement or any other default under any of the other Financing Agreements, whether the same is prior or subsequent thereto and
whether of the same or of a different kind or character. None of the undertakings, agreements, warranties, covenants and
representations of the Credit Parties contained in this Agreement or any of the other Financing Agreements and no Event of Default
under this Agreement or default under any of the other Financing Agreements shall be deemed to have been suspended or waived by the
Lender unless such suspension or waiver is in writing signed by an officer of the Lender, and directed to the Borrower specifying
such suspension or waiver.

 

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11.2         
Costs and Attorneys’ Fees.

 

(a)              
The Borrowers agree, jointly and severally, to pay on demand all of the costs and expenses of the Lender (including, without limitation,
the reasonable fees and expenses of the Lender’s counsel, and all UCC filing and lien search fees, and, if applicable, real estate
appraisal fees, survey fees, recording, field examination (with such field examination being subject to Section 8.2) and title
insurance costs, and any environmental report or analysis) in connection with the structuring, preparation, negotiation, execution, and
delivery of: (i) this Agreement, the Financing Agreements and all other instruments, agreements, certificates or documents provided for
herein or delivered or to be delivered hereunder, and (ii) any and all amendments, modifications, supplements and waivers executed and
delivered pursuant hereto or any Financing Agreement or in connection herewith or therewith. Each Borrower further agrees that the Lender,
in its sole discretion, may deduct all such unpaid amounts from the aggregate proceeds of the Loan or debit such amounts from the operating
accounts of any Borrower maintained with the Lender.

 

(b)              
The costs and expenses that the Lender incurs in any manner or way with respect to the following shall be part of the Liabilities,
jointly and severally payable by the Borrowers on demand if at any time after the date of this Agreement the Lender: (i) employs counsel
in good faith for advice or other representation (A) with respect to the amendment, modification or enforcement of this Agreement
or the Financing Agreements, or with respect to any Collateral securing the Liabilities hereunder, (B) to represent the Lender in
any work-out or any type of restructuring of the Liabilities, or any litigation, contest, dispute, suit or proceeding or to commence,
defend or intervene or to take any other action in or with respect to any litigation, contest, dispute, suit or proceeding (whether instituted
by the Lender, the Borrower or any other Person) in any way or respect relating to this Agreement, the Financing Agreements, any Borrower’s
affairs or any Collateral hereunder or (C) to enforce any of the rights of the Lender with respect to the Borrowers provided in this
Agreement, under any of the Financing Agreements, or otherwise (whether at law or in equity); (ii) takes any action to protect, preserve,
store, ship, appraise, prepare for sale, collect, sell, liquidate or otherwise dispose of any Collateral in accordance with the terms
hereunder; and/or (iii) seeks to enforce or enforces any of the rights and remedies of the Lender with respect to the Borrowers or any
guarantor of the Liabilities. Without limiting the generality of the foregoing, such expenses, costs, charges and fees include: reasonable
fees, costs and expenses of attorneys, accountants and consultants; court costs and expenses; court reporter fees, costs and expenses;
long distance telephone charges; reasonable travel costs; and courier and telecopier charges.

 

(c)               The
Borrowers further agree, jointly and severally, to pay, and to save the Lender harmless from all liability for, any documentary
stamp tax, intangible tax, or other stamp tax or taxes of any kind which may be payable in connection with or related to the
execution or delivery of this Agreement, the Financing Agreements, the borrowings hereunder, the issuance of the Note or of any
other instruments, agreements, certificates or documents provided for herein or delivered or to be delivered hereunder or in
connection herewith, provided that the Borrowers shall not be liable for Lender’s income tax liabilities.

 

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(d)              
All of the Borrowers’ obligations provided for in this Section 11.2 shall be Liabilities secured by the Collateral
and the Real Property and shall survive repayment of the Loan or any termination of this Agreement or any Financing Agreements.

 

11.3         
Expenditures by the Lender. In the event the Borrowers shall fail to pay taxes, insurance, audit fees and expenses, filing,
recording and search fees, assessments, fees, costs or expenses which the Borrowers are, under any of the terms hereof or of any of the
other Financing Agreements, required to pay, or fail to keep the Collateral free from other Liens, except as permitted herein, the Lender
may, in its sole discretion, pay or make expenditures for any or all of such purposes, and the amounts so expended, together with interest
thereon at the Default Rate (from the date the obligation or liability of Borrowers is charged or incurred until actually paid in full
to Lender) and shall be part of the Liabilities of the Borrowers, payable on demand and secured by the Collateral.

 

11.4         
Custody and Preservation of Collateral. The Lender shall be deemed to have exercised reasonable care in the custody and
preservation of any of the Collateral in its possession if it takes such action for that purpose as the Borrowers shall request in writing,
but failure by the Lender to comply with any such request shall not of itself be deemed a failure to exercise reasonable care, and no
failure by the Lender to preserve or protect any right with respect to such Collateral against prior parties, or to do any act with respect
to the preservation of such Collateral not so requested by a Borrower, shall of itself be deemed a failure to exercise reasonable care
in the custody or preservation of such Collateral.

 

11.5         
Reliance by the Lender. Each Borrower acknowledges that the Lender, in entering into this Agreement and agreeing to make
the Loan and otherwise extend credit to the Borrowers hereunder, has relied upon the accuracy of the covenants, agreements, representations
and warranties made herein by the Borrowers and the information delivered by the Borrowers to the Lender in connection herewith (including,
without limitation, all financial information and data).

 

11.6         
Assignability; Parties. This Agreement (including, without limitation, any and all of the Borrower’s rights, obligations
and liabilities hereunder) may not be assigned by the Borrowers without the prior written consent of the Lender. Whenever in this Agreement
there is reference made to any of the parties hereto, such reference shall be deemed to include, wherever applicable, a reference to the
successors and permitted assigns of each Borrower and the successors and assigns of the Lender.

 

11.7          Severability;
Construction. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Agreement. The parties hereto have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any of the provisions of this Agreement.

 

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11.8         
Application of Payments. Notwithstanding any contrary provision contained in this Agreement or in any of the other Financing
Agreements, after the occurrence and during the continuance of an Event of Default each Borrower irrevocably waives the right to direct
the application of any and all payments at any time or times hereafter received by the Lender from any Borrower or with respect to any
of the Collateral, and each Borrower does hereby irrevocably agree that the Lender shall have the continuing exclusive right to apply
and reapply any and all payments received at any time or times hereafter, whether with respect to the Collateral or otherwise: (i) first,
to the payment and satisfaction of all sums paid and costs and expenses incurred by the Lender hereunder or otherwise in connection herewith,
including such monies paid or incurred in connection with protecting, preserving or realizing upon the Collateral or enforcing any of
the terms hereof, including reasonable attorneys’ fees and court costs, together with any interest thereon (but without preference
or priority of principal over interest or of interest over principal); (ii) second, to the payment and satisfaction of the remaining Liabilities,
whether or not then due (in whatever order the Lender elects), both for interest and principal; and (iii) last, the balance, if any, after
all of the Liabilities have been indefeasibly paid in full, to the Borrowers or as otherwise required by applicable law.

 

11.9         
Marshalling; Payments Set Aside. The Lender shall be under no obligation to marshall any assets in favor of any Borrower
or any other Person or against or in payment of any or all of the Liabilities. To the extent that a Borrower makes a payment or payments
to the Lender or the Lender enforces its Liens or exercises its rights of setoff, and such payment or payments or the proceeds of such
enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required
to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause,
then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall automatically be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

11.10     
Sections and Titles; UCC Termination Statements. The sections and titles contained in this Agreement shall be without substantive
meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. At such time as all of the Liabilities
shall have been indefeasibly paid in full and this Agreement shall terminate in accordance with its terms, the Lender will, upon the Borrowers’
written request and at the Borrowers’ cost and expense, authorize the filing of all UCC termination statements required by the Borrower
to evidence the termination of the Liens in the Collateral in favor of the Lender and the Lender will sign a customary payoff letter that
evidences the termination of the grant of the security interest in its favor by the Borrowers as provided pursuant to Section 6.1
hereof.

 

11.11      Continuing
Effect; Inconsistency. This Agreement, the Lender’s Liens in the Collateral, and all of the other Financing Agreements
shall continue in full force and effect so long as any Liabilities shall be owed to the Lender, and (even if there shall be no such
Liabilities outstanding) so long as this Agreement has not been terminated as provided in Section 2.8 hereof. To the extent
any terms or provisions contained in any Financing Agreement are inconsistent or conflict with the terms and provisions of this
Agreement, the terms and provisions of this Agreement shall control and govern.

 

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11.12     
Notices. Except as otherwise expressly provided herein, any notice required or desired to be served, given or delivered
hereunder shall be in writing, and shall be deemed to have been validly served, given or delivered upon the earlier of (a) personal delivery
to the address set forth below, (b) in the case of facsimile transmission, when transmitted and (c) in the case of mailed notice, five
(5) days after deposit in the United States mails, with proper postage for certified mail, return receipt requested, prepaid, or in the
case of notice by Federal Express or other reputable overnight courier service, one (1) Business Day after delivery to such courier service;
provided, however, that if any notice is tendered to an addressee and delivery thereof is refused by such addressee, such notice shall
be effective upon such tender unless expressly set forth in such notice. Notices to be provided pursuant to this Agreement shall be as
follows: (i) If to the Lender at: CIBC Bank USA, 120 S. LaSalle St., Chicago, Illinois 60603; Attention: Adam D. Panos; Telephone No.
(312) 564-1278; Facsimile No. (312) 564-6889; with a copy to: c/o Nixon Peabody LLP, 70 W. Madison, Suite 3500, Chicago, Illinois, 60602;
Attention: Daniel P. Strzalka, Esq.; Telephone No. (312) 977-4341; Facsimile No. (312) 977-4405; (ii) If to any Borrower at: c/o Summit
Healthcare REIT, Inc., a Maryland corporation, 2 South Pointe Drive, Suite 100, Lake Forrest, CA 92630.  Telephone: (949) 535-1923,
Facsimile: (949) 812-8173; with a copy to: Hanson Bridgett, LLP, 425 Market Street, 26th Floor, San Francisco, California,
94105, Attention: Jennifer Berland, Telephone No. (415) 995-5837; Facsimile No. (415) 995-3409; or to such other address as each party
designates to the other in the manner herein prescribed.

 

11.13     
Equitable Relief. Each Borrower recognizes that, in the event any Borrower fails to perform, observe or discharge any of
its obligations or liabilities under this Agreement, any remedy at law may prove to be inadequate relief to the Lender; therefore, each
Borrower agrees that the Lender, if the Lender so requests, shall be entitled to temporary and permanent injunctive relief in any such
case without the necessity of proving actual damages.

 

11.14     
Entire Agreement. This Agreement, together with the Financing Agreements executed in connection herewith, constitutes the
entire agreement among the parties with respect to the subject matter hereof, and supersedes all prior written or oral understandings,
discussions and agreements with respect thereto (including, without limitation, any term sheet or commitment letter). This Agreement may
be amended or modified only by mutual agreement of the parties evidenced in writing and signed by the party to be charged therewith. Time
is of the essence hereof with respect to the Borrowers’ obligations hereunder. The Recitals hereto are hereby incorporated into
this Agreement by this reference thereto.

 

11.15      Participations
and Assignments. The Lender shall have the right, without the consent of the Borrowers, to sell participations in, or
assignments of, all or any portion of its rights and interest under this Agreement, the Liabilities and any of the Financing
Agreements. The Lender may furnish any information concerning the Borrowers in the possession of the Lender from time to time to
participants (including prospective participants) provided that such Person agrees to comply with Section 11.21. In addition
and without limiting the foregoing, Lender may at any time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of Lender, including any pledge or assignment to secure obligations to a Federal Reserve
Bank, and this Section shall not apply to any such pledge or assignment of a security interest.

 

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11.16     
Indemnity. The Borrowers agree, jointly and severally, to defend, protect, indemnify and hold harmless the Lender and each
and all of its officers, directors, employees, attorneys, affiliates, and agents (“Indemnified Parties”) from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements
of any kind or nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel for the Indemnified
Parties in connection with any investigative, administrative or judicial proceeding, whether or not the Indemnified Parties shall be designated
by a party thereto, or otherwise), which may be imposed on, incurred by, or asserted against any Indemnified Party (whether direct, indirect
or consequential, and whether based on any federal or state laws or other statutory regulations, including, without limitation, securities,
environmental and commercial laws and regulations, under common law or at equitable cause, or on contract or otherwise) in any manner
relating to or arising out of this Agreement or the other Financing Agreements, or any act, event or transaction related or attendant
thereto, the making and the management of the Loan (including, without limitation, any liability under federal, state or local environmental
laws or regulations) or the use or intended use of the proceeds of the Loan hereunder; provided, that the Borrowers shall not have
any obligation to any Indemnified Party hereunder with respect to matters caused by or resulting from the willful misconduct or gross
negligence of such Indemnified Party. To the extent that the undertaking to indemnify, pay and hold harmless set forth in the preceding
sentence may be unenforceable because it is violative of any law or public policy, the Borrowers shall contribute the maximum portion
which it is permitted to pay and satisfy under applicable law, to the payment and satisfaction of all matters incurred by the Indemnified
Parties. Any liability, obligation, loss, damage, penalty, cost or expense incurred by the Indemnified Parties shall be paid to the Indemnified
Parties on demand, together with interest thereon at the Default Rate from the date incurred by the Indemnified Parties until paid by
the Borrowers, be added to the Liabilities, and be secured by the Collateral and the Real Property. The provisions of and undertakings
and indemnifications set out in this Section 11.16 shall survive the satisfaction and payment of the Liabilities of the Borrower
and the termination of this Agreement.

 

11.17     
Representations and Warranties. Notwithstanding anything to the contrary contained herein, each representation or warranty
contained in this Agreement or any of the other Financing Agreements shall survive the execution and delivery of this Agreement and the
other Financing Agreements and the making of the Loan and the repayment of the Liabilities hereunder.

 

11.18     
Counterparts; Faxes. This Agreement and any amendment or supplement hereto or any waiver granted in connection herewith
may be executed in any number of counterparts and by the different parties on separate counterparts and each such counterpart shall be
deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. A signature hereto sent
or delivered by facsimile or other electronic transmission shall be as legally binding and enforceable as a signed original for all purposes.

 

11.19     
Limitation of Liability of Lender. It is hereby expressly agreed that:

 

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(a)              
 Lender may conclusively rely and shall be protected in acting or refraining from acting upon any document, instrument, certificate,
instruction or signature believed to be genuine and may assume and shall be protected in assuming that any Person purporting to give any
notice or instructions in connection with any transaction to which this Agreement relates has been duly authorized to do so. Lender shall
not be obligated to make any inquiry as to the authority, capacity, existence or identity of any Person purporting to have executed any
such document or instrument or have made any such signature or purporting to give any such notice or instructions;

 

(b)              
Lender shall not be liable for any acts, omissions, errors of judgment or mistakes of fact or law, including, without limitation,
acts, omissions, errors or mistakes with respect to the Collateral, except for those arising out of or in connection with Lender’s
gross negligence or willful misconduct. Without limiting the generality of the foregoing, except as required by applicable law, Lender
shall be under no obligation to take any steps necessary to preserve rights in the Collateral against any other parties, but may do so
at its option, and all expenses incurred in connection therewith shall be payable by Borrowers; and

 

(c)              
Lender shall not be liable for any action taken in good faith and believed to be authorized or within the rights or powers conferred
by this Agreement and the other Financing Agreements.

 

11.20     
Borrower Authorizing Accounting Firm. Borrowers shall authorize their accounting firm and/or service bureaus to provide
Lender with such information as is requested by Lender in accordance with this Agreement. Each Borrower authorizes Lender upon prior written
notice to the Borrowers to, at any time while a Default or Event of Default exists or, if a Default or Event of Default does not exist,
upon prior written consent of the Borrowers, contact directly any such accounting firm and/or service bureaus to obtain such information.

 

11.21       Confidentiality.
Lender shall hold all non-public information regarding the Borrowers and obtained by Lender pursuant hereto confidential and shall
not disclose any such information, except that disclosure of such information may be made (i) to Lender’s agents, employees,
subsidiaries, Affiliates, attorneys, auditors, professional consultants, rating agencies, insurance industry associations and
portfolio management services, (ii) to prospective transferees or purchasers of any interest in the Loan or Liabilities, and to
prospective contractual counterparties (or the professional advisors thereto) in any Interest Rate Protection Agreement permitted
hereby, provided that any such Persons shall have agreed to be bound by the provisions of this Section 11.21, (iii) as
required by law, subpoena, judicial order or similar order and in connection with any litigation, investigation or proceeding, (iv)
as may be required in connection with the examination, audit or similar investigation of such Person and (v) to a Person that is a
trustee, investment advisor, collateral manager, servicer, noteholder or secured party in a Securitization (as hereinafter defined)
in connection with the administration, servicing and reporting on the assets serving as collateral for such Securitization. For the
purposes of this Section, “Securitization” shall mean a public or private offering by Lender or any of its Affiliates or
their respective successors and assigns, of securities which represent an interest in, or which are collateralized, in whole or in
party, by the Loan. Confidential information shall not include information that either: (i) is in the public domain, or becomes part
of the public domain after disclosure to such Person through no fault of such Person, or (ii) is disclosed to such Person by a
Person other than the Borrowers or an Affiliate of a Borrower (or Borrowers’ accountants, attorneys or other advisors or
agents), provided Lender does not have actual knowledge that such Person is prohibited from disclosing such information. The
obligations of Lender under this Section 11.21 shall supersede and replace the obligations of Lender under any
confidentiality agreement in respect of this financing executed and delivered by Lender prior to the date hereof.

 

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11.22       Customer
Identification - USA Patriot Act Notice; Compliance with Anti-Terrorism Orders. The Lender hereby notifies the Borrowers that pursuant
to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the “Patriot Act”),
and the Lender’s policies and practices, the Lender is required to obtain, verify and record certain information and documentation
that identifies the Borrower, which information includes the name and address of the Borrowers and such other information that will allow
the Lender to identify the Borrowers in accordance with the Patriot Act. In addition, each Borrower shall (a) ensure that no Person who
owns a controlling interest in or otherwise controls any Borrower is or shall be listed on the OFAC Lists, (b) not use or permit the use
of the proceeds of the Loan to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order
relating thereto, and (c) comply with all applicable Bank Secrecy Act laws and regulations, as amended. No Borrower shall permit the transfer
of any interest in a Borrower to any Person (or any beneficial owner of such entity) who is listed on the OFAC Lists. No Borrower shall
knowingly enter into a lease with any party who is listed on the OFAC Lists. Each Borrower shall immediately notify the Lender if such
Borrower has knowledge that any other Credit Party, manager or any member or beneficial owner of a Credit Party is listed on the OFAC
Lists or (i) is indicted on or (ii) arraigned and held over on charges involving money laundering or predicate crimes to money laundering.
Borrowers shall immediately notify the Lender if Borrowers know that any of their Affiliates is listed on the OFAC Lists or (A) is convicted
on, (B) pleads nolo contendere to, (C) is indicted on or (D) is arraigned and held over on charges involving money laundering or
predicate crimes to money laundering. Lender may immediately contact the Office of Foreign Assets Control and any other government agency
that the Lender deems appropriate in order to comply with its obligations under any law, regulation, order or decree regulating or relating
to terrorism and international money laundering.

 

11.23       SUBMISSION
TO JURISDICTION; WAIVER OF VENUE. EACH BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY:

 

(a)              
SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND THE OTHER FINANCING AGREEMENTS
TO WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION
OF THE COURTS OF THE STATE OF ILLINOIS, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF ILLINOIS AND APPELLATE
COURTS FROM ANY THEREOF;

 

(b)               CONSENTS
THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW IN CONNECTION
WITH ANY SUCH ACTION OR PROCEEDING (i) ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING
IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;
AND

 

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(c)              
AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY CERTIFIED MAIL (OR
ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO THE BORROWER AT ITS ADDRESS SET FORTH ABOVE OR
AT SUCH OTHER ADDRESS OF WHICH THE LENDER SHALL HAVE BEEN NOTIFIED PURSUANT THERETO. EACH BORROWER AGREES THAT SUCH SERVICE, TO THE FULLEST
EXTENT PERMITTED BY LAW (i) SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE BORROWER IN ANY SUIT, ACTION OR PROCEEDING,
AND (ii) SHALL BE TAKEN AND HELD TO BE VALID PERSONAL SERVICE UPON AND PERSONAL DELIVERY TO THE BORROWER. SOLELY TO THE EXTENT PROVIDED
BY APPLICABLE LAW, SHOULD ANY BORROWER, AFTER BEING SERVED, FAIL TO APPEAR OR ANSWER TO ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS SO SERVED
WITHIN THE NUMBER OF DAYS PRESCRIBED BY LAW AFTER THE DELIVERY OR MAILING THEREOF, EACH BORROWER SHALL BE DEEMED IN DEFAULT AND AN ORDER
AND/OR JUDGMENT MAY BE ENTERED BY THE COURT AGAINST SUCH BORROWER AS DEMANDED OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR PAPERS.
NOTHING HEREIN SHALL AFFECT THE LENDER’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR LIMIT THE LENDER’S
RIGHT TO BRING PROCEEDINGS AGAINST THE BORROWER OR ITS PROPERTY IN ANY COURT OR ANY OTHER JURISDICTION.

 

11.24       GOVERNING
LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ALL RESPECTS IN ACCORDANCE WITH, AND ENFORCED AND GOVERNED BY THE INTERNAL LAWS OF THE STATE
OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

 

11.25       JURY
TRIAL. EACH BORROWER AND THE LENDER HEREBY IRREVOCABLY AND KNOWINGLY WAIVE (TO THE FULLEST EXTENT PERMITTED BY LAW) ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING (INCLUDING, WITHOUT LIMITATION, ANY COUNTERCLAIM) ARISING OUT OF THIS AGREEMENT, THE FINANCING
AGREEMENTS OR ANY OTHER AGREEMENTS OR TRANSACTIONS RELATED HERETO OR THERETO, INCLUDING, WITHOUT LIMITATION, ANY ACTION OR PROCEEDING
(A) TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH, OR (B) ARISING FROM ANY DISPUTE OR CONTROVERSY IN CONNECTION WITH OR RELATED TO
THIS AGREEMENT AND THE FINANCING AGREEMENTS. THE LENDER AND THE BORROWER AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
A COURT AND NOT A JURY.

 

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12.       LOAN GUARANTY.

 

12.1       Joint
and Several Liability; Guaranty. Notwithstanding anything to the contrary contained herein, each Borrower hereby agrees that the Liabilities
of each Borrower hereunder shall be joint and several obligations of all of the Borrowers. Additionally, each Borrower hereby agrees that
it is jointly and severally liable for, and absolutely and unconditionally guarantees to the Lender the prompt payment when due, whether
at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Liabilities and all costs and expenses including,
without limitation, all court costs and reasonable attorneys’ and paralegals’ fees (including allocated costs of in-house
counsel and paralegals) and expenses paid or incurred by any such Person in endeavoring to collect all or any part of the Liabilities
from, or in prosecuting any action against any Borrower or any other guarantor of all or any part of the Liabilities (such costs and expenses,
together with the Liabilities, collectively the “Guaranteed Obligations”). Each Borrower further agrees that the Guaranteed
Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon
its guarantee notwithstanding any such extension or renewal. All terms of this loan guaranty (this “Loan Guaranty”)
apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate of any Lender that extended any portion of
the Guaranteed Obligations.

 

12.2       Guaranty
of Payment. This Loan Guaranty is a guaranty of payment and not of collection. Each Borrower waives any right to require the Lender
to sue any other Borrower, any other guarantor, or any other person obligated for all or any part of the Guaranteed Obligations (each,
an “Obligated Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed
Obligations, until such time as the Guaranteed Obligations are indefeasibly paid in full.

 

12.3       No
Discharge or Diminishment of Loan Guaranty.

 

(a)               Except
as otherwise provided for herein, the obligations of each Borrower hereunder are unconditional and absolute and not subject to any reduction,
limitation, impairment or termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations),
including: (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guaranteed
Obligations, by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of any Borrower or any
other guarantor of or other person liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or other
similar proceeding affecting any Obligated Party, or their assets or any resulting release or discharge of any obligation of any Obligated
Party; or (iv) the existence of any claim, setoff or other rights which any Borrower may have at any time against any Obligated Party,
the Lender or any other Person, whether in connection herewith or in any unrelated transactions.

 

(b)               The obligations
of each Borrower under this Loan Guaranty are not subject to any defense or setoff, counterclaim, recoupment, or termination whatsoever
by reason of the invalidity, illegality, or unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable
law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any part thereof.

 

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(c)                Further, the obligations
of any Borrower under this Loan Guaranty are not discharged or impaired or otherwise affected by: (i) the failure of the Lender to assert
any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (ii) any waiver or modification
of or supplement to any provision of any agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity
of any indirect or direct security for the obligations of any Borrower for all or any part of the Guaranteed Obligations or any obligations
of any other guarantor of or other person liable for any of the Guaranteed Obligations; (iv) any action or failure to act by the Lender
with respect to any collateral securing any part of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise,
in the payment or performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that might in any
manner or to any extent vary the risk of such Borrower or that would otherwise operate as a discharge of any Borrower as a matter of law
or equity (other than the indefeasible payment in full in cash of the Guaranteed Obligations).

 

12.4       Defenses
Waived. To the fullest extent permitted by applicable law, each Borrower hereby waives any defense based on or arising out of any
defense of any other Borrower or any other Obligated Party or the unenforceability of all or any part of the Guaranteed Obligations from
any cause, or the cessation from any cause of the liability of any other Borrower or Obligated Party, other than the indefeasible payment
in full in cash of the Guaranteed Obligations. Without limiting the generality of the foregoing, each Borrower irrevocably waives acceptance
hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement
that at any time any action be taken by any person against any Obligated Party, or any other person. Each Borrower confirms that it is
not a surety under any state law and shall not raise any such law as a defense to its obligations hereunder. The Lender may, at its election,
foreclose on any Collateral held by it by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu
of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise
or adjust any part of the Guaranteed Obligations, make any other accommodation with any Obligated Party or exercise any other right or
remedy available to it against any Obligated Party, without affecting or impairing in any way the liability of such Borrower under this
Loan Guaranty except to the extent the Guaranteed Obligations have been fully and indefeasibly paid in cash. To the fullest extent permitted
by applicable law, each Borrower waives any defense arising out of any such election even though that election may operate, pursuant to
applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Borrower against any
Obligated Party or any security.

 

12.5       Rights
of Subrogation. No Borrower will assert any right, claim or cause of action, including, without limitation, a claim of subrogation,
contribution or indemnification that it has against any Obligated Party, or any collateral, until the Credit Parties and all Obligated
Parties have fully performed all their obligations to the Lender.

 

12.6       Reinstatement;
Stay of Acceleration. If at any time any payment of any portion of the Guaranteed Obligations is rescinded or must otherwise be
restored or returned upon the insolvency, bankruptcy, or reorganization of any Borrower or otherwise, each Borrower’s
obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time as though the payment had not
been made and whether or not the Lender, as applicable, is in possession of this Loan Guaranty. If acceleration of the time for
payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of any Borrower, all such
amounts otherwise subject to acceleration under the terms of any agreement relating to the Guaranteed Obligations shall nonetheless
be payable by the other Borrowers forthwith on demand by the Lender.

 

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12.7       Information.
Each Borrower assumes all responsibility for being and keeping itself informed of the other Borrowers’ financial condition and assets,
and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the
risks that each Borrower assumes and incurs under this Loan Guaranty, and agrees that the Lender shall not have any duty to advise any
Borrower of information known to it regarding those circumstances or risks.

 

12.8       Maximum
Liability. The provisions of this Loan Guaranty are severable, and in any action or proceeding involving any state corporate law,
or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the
obligations of any Borrower under this Loan Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable on
account of the amount of such Borrower’s liability under this Loan Guaranty, then, notwithstanding any other provision of this Loan
Guaranty to the contrary, the amount of such liability shall, without any further action by the Borrowers or the Lender, be automatically
limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest amount
determined hereunder being the relevant Borrower’s “Maximum Liability”. This Section with respect to the Maximum
Liability of each Borrower is intended solely to preserve the rights of the Lender to the maximum extent not subject to avoidance under
applicable law, and no Borrower nor any other person or entity shall have any right or claim under this Section with respect to such Maximum
Liability, except to the extent necessary so that the obligations of any Borrower hereunder shall not be rendered voidable under applicable
law. Each Borrower agrees that the Guaranteed Obligations may at any time and from time to time exceed the Maximum Liability of each Borrower
without impairing this Loan Guaranty or affecting the rights and remedies of the Lender under other sections of this Agreement and the
Financing Agreements, provided that, nothing in this sentence shall be construed to increase any Borrowers obligations under the
Loan Guaranty beyond its Maximum Liability.

 

12.9       Contribution.
In the event any Borrower (a “Paying Borrower”) shall make any payment or payments under this Loan Guaranty or
shall suffer any loss as a result of any realization upon any collateral granted by it to secure its obligations under this Loan
Guaranty, each other Borrower (each a “Non-Paying Borrower”) shall contribute to such Paying Borrower an amount
equal to such Non-Paying Borrower’s “Applicable Percentage” of such payment or payments made, or losses suffered,
by such Paying Borrower. For purposes of this Article 12, each Non-Paying Borrower’s “Applicable
Percentage” with respect to any such payment or loss by a Paying Borrower shall be determined as of the date on which such
payment or loss was made by reference to the ratio of (i) such Non-Paying Borrower’s Maximum Liability as of such date
(without giving effect to any right to receive, or obligation to make, any contribution hereunder) or, if such Non-Paying
Borrower’s Maximum Liability has not been determined, the aggregate amount of all monies received by such Non-Paying Borrower
from the other Borrowers after the date hereof (whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum
Liability of all Borrowers hereunder (including such Paying Borrower) as of such date (without giving effect to any right to
receive, or obligation to make, any contribution hereunder), or to the extent that a Maximum Liability has not been determined for
any Borrower, the aggregate amount of all monies received by such Borrower from the other Borrowers after the date hereof (whether
by loan, capital infusion or by other means). Nothing in this provision shall affect any Borrower’s several liability for the
entire amount of the Guaranteed Obligations (up to such Borrower’s Maximum Liability). Each of the Borrowers covenants and
agrees that its right to receive any contribution under this Loan Guaranty from a Non-Paying Borrower shall be subordinate and
junior in right of payment to the payment in full in cash of the Guaranteed Obligations. This provision is for the benefit of the
Lender and the Borrowers and may be enforced by any one, or more, or all of them in accordance with the terms hereof.

 

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12.10       Liability
Cumulative. The liability of each Borrower under this Article 12 is in addition to and shall be cumulative with all liabilities
of each Borrower to the Lender under this Agreement and the other Financing Agreements to which such Borrower is a party or in respect
of any obligations or liabilities of the other Borrowers, without any limitation as to amount, unless the instrument or agreement evidencing
or creating such other liability specifically provides to the contrary.

 

12.11       Consideration;
Benefit of Guaranty. The Credit Parties are engaged in related businesses to such an extent that the financial strength and flexibility
of each Borrower has a direct impact on the success of each other Borrower. Each Borrower will derive substantial direct and indirect
benefit from the extensions of credit hereunder. Each Borrower agrees that the provisions of this Article 12 are for the benefit
of the Lender, and its successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other
Borrowers and such Persons, the obligations of such other Borrowers under this Agreement and the Financing Agreements.

 

12.12       Keepwell.
Each Borrower that is a Qualified ECP Guarantor hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to
provide such funds or other support as may be needed from time to time by each other Borrower to honor all of its obligations under this
Article 12 in respect of a Swap Obligation (provided, however, that each such Qualified ECP Guarantor shall only be liable under
this Section 12.12 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section
12.12 or otherwise under this Article 12 voidable under applicable law relating to fraudulent conveyance or fraudulent transfer,
and not for any greater amount). Except as otherwise provided herein, the obligations of each Qualified ECP Guarantor under this Section
12.12 shall remain in full force and effect until the termination of all Swap Obligations. Each Qualified ECP Guarantor intends that this
Section 12.12 constitute, and this Section 12.10 shall be deemed to constitute, a “keepwell, support, or other agreement”
for the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

12.12       Cash
Loan Guaranty Fund. The Borrowers represent that they have established and further agree to continue to maintain and hereby
grants the Lender a security interest in a restricted account set up for the purpose of depositing the Cash Loan Guaranty Fund held
by the Lender. The Cash Loan Guaranty Fund established with the Lender shall be invested in such a manner as shall be mutually
agreed upon among the Lender and the Borrowers; and, in the event there shall be no agreement, then as shall be determined by the
Lender in its sole discretion. The Lender shall have sole access to the Cash Loan Guaranty Fund, provided, however, that the Lender
may use such funds solely to repay amounts owed under the Loan upon maturity of the Loan or while any Event of Default exists and to
apply such funds to other Liabilities as and when the same become due and payable. Any and all interest on the Cash Loan Guaranty
Fund shall be added to the Cash Loan Guaranty Fund and shall be property of the Borrowers subject to the security interests granted
herein and, upon repayment in full of the Liabilities and the termination of this Agreement, such interest shall be paid to the
Borrowers; provided, however, that at any time an Event of Default has occurred and continuing, the Borrowers acknowledge and agree
that such interest may be applied to the Liabilities by the Lender. The failure of Borrowers to comply with the provisions of this
paragraph shall be considered an Event of Default and immediately entitle the Lender to any of the remedies provided in this
Agreement. Nothing in this Section shall mitigate, limit or otherwise affect any of the Borrower's obligations under this
Agreement.

 

[Signature Page Follows]

 

    - 75 -

     

    

 

IN WITNESS WHEREOF, this Term Loan and Security
Agreement has been duly executed as of the day and year first above written.

 

BORROWERS:

 

	SUMMIT CREEKSIDE LLC,	 
	 	 
	SUMMIT MENTONE LLC,	 
	 	 
	SUMMIT YUCAIPA LLC,	 
	 	 
	By: Summit Healthcare REIT, Inc., a Maryland corporation, its Manager	 
	 	 
	By:	 /s/ Elizabeth Pagliarini	 
	Name: Elizabeth Pagliarini	 
	Title: CFO & COO	 

 

	LENDER:	 
	 	 
	CIBC BANK USA	 
	 	 
	By: 	/s/ Adam D. Panos	 
	Name: Adam D. Panos	 
	Title: Managing Director	 

 

     

     

    

 

Schedule 7.15

 

Licensed Unit Capacity:

 

		·	Creekside - License No. 240000224 issued by the California Department of Public Health in
the name of Avenue H, LLC.

 

		·	Mentone - License No. 240000158 issued by the California Department of Public Health in
the name of Nice Avenue, LLC.

 

		·	Yucaipa - License No. 240000236 issued by the California Department of Public Health in
the name of Calimesa Operations, LLC.

 

     

     

    

 

Schedule 7.22

 

Capitalization

 

	
     

    Entity
	
     

    Jurisdiction
	Organizational

 Identification

 Number	
     

    Holder of Capital Securities
	
    Percentage of

    Outstanding 

Interests

     

	Creekside	Delaware	5987186	Parent	100%
	Mentone	Delaware	5987189	Parent	100%
	Yucaipa	Delaware	5987196	Parent	100%

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