Document:

EX-10.38

 Exhibit 10.38 

FORM OF MANAGEMENT SERVICES AGREEMENT 

This Management Services Agreement (the “Agreement”) is made and entered into effective as of the
             day of                     , 2014 (the “Effective Date”) by and
between                      (“Practice”) and American Addiction Centers, Inc. (“Manager”). 

RECITALS 
 WHEREAS,
Practice provides addiction treatment and related medical services through physicians and mid-level providers (“Practitioners”) at one or more behavioral health facilities (the “Facilities”) in the State of California (the
“State”) that are owned or operated by Manager or its affiliates; and 
 WHEREAS, Manager provides management,
administrative and consulting services to medical practices and offers various systems that are designed to support the Practice in a manner that enables the provision of quality medical services; and 

WHEREAS, Practice desires to engage Manager to provide management, administrative and consulting services to Practice so that it may
concentrate its efforts and time more fully on the practice of medicine and on the delivery of quality medical and/or nursing services to patients at the Facilities; and 

WHEREAS, Manager is willing to provide said services to Practice on the terms and conditions provided in this Agreement. 

NOW, THEREFORE, the parties hereby agree as follows: 

ARTICLE 1 
 ENGAGEMENT
AND TERM 
 1.1 Engagement of Manager. Practice hereby engages Manager to provide management services with respect to Practice as
described in this Agreement on the terms and conditions described herein, and Manager accepts such engagement, subject to the terms and conditions of this Agreement. 

1.2 Term. The term of this Agreement, including the Initial Term and any Renewal Term (the “Term”) shall continue until
terminated as provided in Article 6 of this Agreement. 
 ARTICLE 2 

DUTIES AND RESPONSIBILITIES OF MANAGER 

During the Term, subject to the provisions of Section 3.1 herein, Manager shall provide, in exchange for the Management Fee, all such
services as are necessary and appropriate for the day-to-day administration and management of Practice in a manner consistent with good business practice, including without limitation those services set forth in this Article 2. 

 2.1 Accounting; Financial Services. Manager shall establish and administer accounting
procedures and controls and systems for the development, preparation and keeping of records and books of accounting related to the business and financial affairs of Practice. Additionally, should Practice require working capital or additional
capital to fund its cost of operations, including the payroll expenses for Practice’s Practitioners, Manager may provide such financing to the Practice, or arrange for such financing on behalf of Practice, on commercially reasonable terms, and
Practice shall promise to pay, repay and/or guarantee the payment of any such financing. At no time shall the Manager be obligated to offset, forgive or repay any such financing. Any such financing shall be secured by the accounts receivable of the
Practice or the proceeds thereof to the extent permitted by applicable federal or state law. 
 2.2 Reports and Information. Manager
shall furnish Practice in a timely fashion annual or more frequent operating reports and other reports as reasonably requested by Practice, including without limitation financial statements and information. 

2.3 Budgets. Manager shall prepare for review by Practice all capital and annual operating budgets for Practice as needed. 

2.4 Supplies. Manager shall arrange for the purchase of medical and office supplies to the extent necessary for the operation of the
Practice. 
 2.5 Licenses. Manager shall coordinate all reasonable and necessary actions to maintain all licenses, permits and
certificates required for the operation of the Practice. 
 2.6 Policies and Practice Guidelines. Subject to Section 3.1,
Manager shall develop, provide and revise policies and operating procedures pertaining to Practice’s operations (“Practice Guidelines”), subject to Practice’s review and approval. 

2.7 Personnel. To the extent allowable under applicable law, Manager shall establish and implement guidelines for the recruitment,
selection, hiring, firing, compensation, terms, conditions, obligations and privileges of employment or engagement of Practitioners. Manager will also further assist Practice in recruiting new Practitioners and other personnel and will carry out
such administrative functions as may be appropriate for such recruitment, including identifying potential candidates, assisting Practice in examining and investigating the credentials of such potential candidates, and arranging interviews with such
potential candidates; provided, however, if required by applicable law, Practice shall interview and make the ultimate decision as to whether to employ or retain a specific candidate. All Practitioners recruited with the assistance of Manager to
render professional services on behalf of Practice at the Facilities shall be the employees or independent contractors of Practice, to the extent required by applicable law. 

2.8 Training. Manager shall train Practice personnel with respect to all aspects of the Facilities’ operations (other than
clinical, medical or patient care), including, without limitation, administrative, financial and equipment maintenance matters. 
 2.9
Insurance. Manager shall arrange for the purchase by Practice of necessary insurance coverage for Practice and, to the extent applicable, the Practitioners. 

  
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 2.10 Maintenance of Equipment. Manager shall arrange for the provision of maintenance of
the Practice’s equipment, if applicable, subject to Practice maintaining care, custody and control of any medical equipment used in the provision of medical services. 

2.11 Expenditures. Manager shall manage all cash receipts and disbursements of Practice, including the payment on behalf of Practice of
all taxes, assessments, licensing fees and other fees of any nature whatsoever as the same become due and payable, unless payment thereof is being contested in good faith by Practice. 

2.12 Contract Negotiations. Manager shall advise Practice with respect to and negotiate, either directly or on Practice’s behalf,
as appropriate and permitted by applicable law, such contractual arrangements with third parties as are reasonably necessary and appropriate for Practice’s provision of healthcare services at the Facilities, including, without limitation, price
agreements with third party payors, alternative delivery systems, or other purchasers of group healthcare services; provided that no contract or arrangement regarding the provision of medical care at the Facilities or otherwise shall be entered into
without Practice’s consent. Manager shall also provide community relations services if requested by Practice. 
 2.13 Billing and
Collection. Subject to Section 2.14 below, on behalf of and for the account of Practice, Manager shall establish and maintain credit and billing and collection policies and procedures and shall exercise reasonable efforts to bill and
collect, or arrange for a third party billing and collection services company to bill and collect, in a timely manner all professional and other fees for all billable services provided by Practice. In connection with the billing and collection
services to be provided hereunder, Practice hereby appoints Manager (or its designee) as Practice’s exclusive true and lawful agent, and Manager hereby accepts such appointment, solely for the following purposes: 

(a) To bill (or arrange for the billing), in Practice’s name and on Practice’s behalf, all claims for reimbursement
or indemnification from patients, insurance companies and plans, all state or federally funded benefit plans and all other third party payors or fiscal intermediaries/carriers for all covered billable medical care provided by or on behalf of
Practice; and 
 (b) To collect and receive (or arrange for the collection and receipt), in Practice’s name and on
Practice’s behalf, all accounts receivable generated by the Practice’s billings and claims for reimbursement, to take possession of, endorse in the name of Practice, and deposit into Practice’s account any notes, checks, money orders,
insurance payments, and any other instruments received in payment of accounts receivable for medical care provided by or on behalf of Practice, to administer such accounts including, but not limited to, extending the time or payment of any such
accounts for cash, credit or otherwise; discharging or releasing the obligors of any such accounts; suing, assigning or selling at a discount such accounts to collection agencies; or taking other reasonable measures to require the payment of any
such accounts. 
 Upon request of Manager, Practice shall execute and deliver to the financial institution at which Practice’s account
is maintained such additional documents or instruments as Manager may reasonably request to demonstrate its authority. 

  
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 2.14 Deposit of Governmental Payor Funds. To the extent applicable, Practice and/or
Manager shall deposit in Practice’s account (i.e., a bank account Practice shall have exclusive dominion and control over that is opened by Practice at a bank mutually agreed upon by the parties, whose deposits are FDIC insured and that is not
providing financing to Practice or Manager, or, if it is providing financing to Practice or Manager, such bank has stated in writing in the applicable loan agreement that it waives its right of offset) any and all governmental payor (i.e., Medicare,
Medicaid, TRICARE, etc.) collections collected by Practice or by Manager on Practice’s behalf pursuant to Section 2.13 above (or any other payments required by law to pass first through the sole control of Practice) with respect to
services provided at the Facilities. To the extent that Practice, any of its employees or agents receives funds for services paid for or reimbursed by governmental payors, such funds shall be deposited in Practice’s account. 

2.15 Litigation Management. Manager shall (a) manage and direct (subject to any malpractice insurance policies or requirements)
the general defense of all claims, actions, proceedings or investigations against Practice or any of its officers, directors, employees or agents in their capacity as such and arising out of or related to the operation of Practice, and
(b) manage and direct the initiation and prosecution of all claims, actions, proceedings or investigations brought by Practice against any person other than Manager with respect to the operation of Practice. 

ARTICLE 3 
 RELATIONSHIP
OF THE PARTIES 
 3.1 Sole Authority to Practice. Notwithstanding the other provisions of this Agreement, Practice shall have
exclusive authority and control over the healthcare aspects of Practice and its practice to the extent they constitute the practice of a licensed profession, including all diagnosis, treatment and ethical determinations with respect to patients
which are required by law to be decided by a licensed professional. Any delegation of authority by Practice to Manager that would require or permit Manager to engage in the practice of a profession shall be prohibited and deemed ineffective, and
Practice shall have the sole authority with respect to such matters. Manager shall not be required or permitted to engage in, and Practice shall not request Manager to engage in, activities that constitute the practice of medicine, nursing or
another similar profession in the states in which Practice operates. Manager shall not direct, control, attempt to control, influence, restrict or interfere with Practice’s or any of the physicians’ or Practitioners’ exercise of
independent clinical, medical or professional judgment in providing healthcare or medical related services. 
 3.2 Relationship of the
Parties. Nothing contained herein shall be construed as creating a partnership, trustee, fiduciary joint venture or employment relationship between Manager and Practice. In performing all services required hereunder, Manager shall be in the
relation of an independent contractor to Practice, providing services to the Facilities operated by Practice. 
 3.3 No Patient
Referrals. Manager shall neither have nor exercise any control or direction over the number, type or recipient of patient referrals and nothing in this Agreement shall be construed as directing or influencing such referrals. Nothing in this
Agreement is to be construed to restrict the professional judgment of Practice or any Practitioner to use any medical 

  
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practice or facility where necessary or desirable in order to provide proper and appropriate treatment or care to a patient or to comply with the wishes of the patient. No part of this Agreement
shall be construed to induce, encourage, solicit or reimburse the referral of any patients or business, including any patient or business funded in whole or in part by federal or state government programs (i.e., Medicare, Medicaid, TRICARE, etc.).
The parties acknowledge that there is no requirement under this Agreement or any other agreement between the parties that either refer patients to the other or any of their respective affiliates. No payment made under this Agreement shall be in
return for the referral of patients or business, including those paid in whole or in part by federal or state government programs. 
 3.4
Compliance with Corporate Practice of Medicine. The parties hereto have made all reasonable efforts to ensure that this Agreement complies with the corporate practice of medicine prohibitions in the states in which it operates. The parties
hereto understand and acknowledge that such laws may change, be amended, have guidance or have a different interpretation and the parties intend to comply with such laws in the event of such occurrences. Under this Agreement, Practice and its
Practitioners shall have the exclusive authority and control over the medical aspects of Practice to the extent they constitute the practice of medicine, while Manager shall have the sole authority to manage the business aspects of Practice as more
fully described in Article 2 of this Agreement. Manager shall not direct, control, attempt to control, influence, restrict or interfere with Practice’s or any of its Practitioners’ exercise of independent clinical, medical or professional
judgment in providing healthcare or medical related services. 
 ARTICLE 4 

RESPONSIBILITIES OF PRACTICE 

Practice shall provide and perform the following during the Term: 

4.1 Practitioners. Subject to Article 2 and to the right of Manager to establish and implement guidelines for the recruiting,
selection, hiring, firing, compensation, terms, conditions, obligations and privileges of employment or engagement of Practitioners who work in the Facilities, Practice shall have the authority to engage (whether as employees or as independent
contractors), promote, discipline, suspend and terminate the services of all licensed professional/clinical employees. Practice shall employ or contract with all Practitioners who provide professional or clinical services on behalf of Practice in
the Facilities upon terms mutually satisfactory to Practice and Manager. Practice shall control all aspects of the practice of medicine, including clinical training and clinical supervision of the Practitioners. Notwithstanding the foregoing,
Practice and Manager shall mutually agree on the amount of compensation payable to Practitioners who work in the Facilities. Practice shall ensure that all Practitioners employed or contracted by Practice to work in the Facilities are appropriately
supervised with respect to the provision of services to patients in accordance with all applicable laws. Specifically, Practice and its supervising physician(s) shall have full responsibility for and shall supervise and control all Practitioners
employed or engaged by Practice to provide medical or health-related services in the Facilities as required by applicable law. Practice shall consult with Manager from time to time regarding the number, work schedules and evaluation of the
Practitioners employed or engaged by Practice to work in the Facilities. Practice shall staff the Facilities as required for the efficient operation of the Facilities, and as otherwise necessary to meet the requirements of payor contracts and
applicable law. In addition, each Practitioner employed or engaged by Practice to work in the Facilities shall: 

  
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 4.1.1 Maintain an unrestricted license to practice in the states in which it
operates, maintain all required narcotics and controlled substances numbers and licenses, including without limitation a DEA registration or permit, and maintain good standing with the applicable professional boards; 

4.1.2 Perform services and otherwise operate in accordance with all laws and with prevailing and applicable standards of care;

 4.1.3 Maintain his or her skills through continuing education and training; 

4.1.4 Maintain eligibility for professional liability insurance for his or her specialty; 

4.1.5 In the case of nurse practitioners or physician assistants, practice under a licensed physician’s supervision,
control and responsibility as required by applicable law. Each such collaboration plan or supervision arrangement must be reviewed and approved by Practice and Manager, before the Practitioner shall be permitted to practice on behalf of Practice in
the Facilities. In addition, Practice and Manager must approve the collaborating or supervising physician based upon standards established by Practice and Manager from time to time; 

4.1.6 Avoid all personal acts, habits and usages which might injure in any way, directly or indirectly, his or her professional
judgment or professional reputation; and 
 4.1.7 Not be (and shall avoid being) suspended or excluded from any federal or
state healthcare program (e.g., Medicare, Medicaid or TRICARE). 
 4.1.8 Subject to Section 3.1, adhere to the Practice
Guidelines, except to the extent that verbal authority is given to deviate from the Practice Guidelines in each particular instance by a supervising physician or other physician employee of Practice. 

4.2 Security Interest. To secure Practice’s obligations to Manager hereunder, Practice herby grants Manager a security interest,
to the extent permitted by applicable law in each case, in all property, if any, which Practice may now own or may hereafter acquire (the “Collateral”) including, without limitation the following: 

4.2.1 All inventory of Practice, whether now owned or hereafter acquired; 

4.2.2 All equipment, machinery, tools, fixtures, furnishings, leasehold improvements, furniture, vehicles or goods of Practice,
whether now owned or hereafter acquired; 
 4.2.3 All accounts receivable, accounts, contracts, contract rights, chattel
paper, and chooses in action, now or hereafter due or owing to, or owned by, Practice; 

  
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 4.2.4 All general intangibles now or hereafter owned by Practice, including,
without limitations, books and records, notes, instruments, licenses, and trade names; 
 4.2.5 All insurance policies and
proceeds thereof; and 
 4.2.6 All proceeds and products of the foregoing. 

Practice shall execute such financing statements and other documents as shall be necessary to perfect (and maintain the perfection of) said
security interest as requested by Manager. Upon a default hereunder or other breach that results in the termination of this Agreement, or non-payment by Practice hereunder that is not cured by Practice within thirty (30) days after receipt of
written notice of default, Manager shall be entitled to exercise all rights and remedies under state law including, without limitation, all rights and remedies of a secured party under the Uniform Commercial Code for the applicable state in which
Practice operates. Practice shall not sell, assign, transfer or encumber any of the Collateral without Manager’s prior written consent. Practice acknowledges and understands that Manager may assign the foregoing security interest in the
Collateral to any Person or entity that may from time to time provide financing to Manager, and Practice consents to such assignment. 

ARTICLE 5 
 FINANCIAL
ARRANGEMENTS 
 5.1 Application of Payments. The parties agree that Manager shall apply Practice’s monthly revenues
(including any revenues received from the Facilities in return for professional services rendered at the Facilities) for the following purposes, in the order set out below: 

5.1.1 Patient/Payor Refunds. The Practice revenues shall first be applied to pay any refunds or rebates owed to patients
or payors. 
 5.1.2 Costs and Expenses of Clinical Personnel. Practice revenues shall next be applied to pay all costs
and expenses, including the salary, bonus and benefit expenses and other compensation, of all Practitioners and any other employees or contractors of Practice providing services at the Facilities. 

5.1.3 Practice Leases. Practice revenues shall next be applied to Practice lease payments, if any. 

5.1.4 Other Purchases and Expenses. Practice revenues shall next be applied to reimburse Manager for all of its direct
costs and expenses (including malpractice insurance expenses) incurred under this Agreement for the benefit of Practice and applied to any other Practice purchases and/or expenses incurred by the Practice. 

5.1.5 Management Fee. Practice revenues shall next be applied to pay Manager a monthly management fee (the
“Management Fee”) in an amount equal to twenty percent (20%) of the Practice’s collected revenues. 
 5.1.6
Repayment. Practice revenues shall next be applied to repay outstanding debt owed by Practice to Manager. 

  
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 5.1.7 Balance. The balance of Practice’s revenues shall be retained
by Practice. 
 The Management Fee shall be paid monthly in arrears based on the Practice’s net pre-tax income, subject
to an annual reconciliation process. Manager shall send in writing, electronically or otherwise monthly invoices to Practice. The parties agree that the Management Fee is fair and equitable, commercially reasonable and consistent with fair market
value in exchange for the management services provided hereunder. 
 5.2 Budget. Manager shall prepare an annual budget for Practice
showing expected revenues and expenses of Practice, and shall revise such budgets as the parties deem appropriate from time to time. 

ARTICLE 6 
 TERM AND
TERMINATION 
 6.1 Term. The initial term of this Agreement shall be for ten (10) years from the Effective Date (the
“Initial Term”). This Agreement shall automatically renew for additional five (5) year terms after the Initial Term, on the same terms, conditions and provisions as contained herein, together with any authorized and approved
amendments hereto (each a “Renewal Term”), unless otherwise earlier terminated as provided herein. 
 6.2 Termination By
Manager Without Cause. At any time Manager may terminate this Agreement without cause upon ninety (90) days advance written notice to Practice. 

6.3 Immediate Termination By Manager. Manager shall have the right, but not the obligation, to terminate this Agreement immediately
upon notice to Practice of any of the following events: 
 6.3.1 The revocation, suspension, cancellation or restriction, in
any manner, of the license to practice medicine in any state in which it operates. 
 6.3.2 The conviction of Practice, any
shareholder of Practice or any Practitioner employed or engaged by Practice to work in the Facilities of any crime punishable as a felony under federal or state law or of any health care crime. 

6.3.3 The cancellation or non-renewal of the professional or malpractice insurance of Practice, any shareholder of Practice or
any Practitioner employed or engaged by Practice to work in the Facilities. 
 6.3.4 The dissolution of Practice. 

6.3.5 The suspension or exclusion of Practice, any shareholder of Practice or any Practitioner employed or engaged by Practice
to work in the Facilities from any state or federal healthcare program (e.g., Medicare, Medicaid, or TRICARE). 
 6.3.6
Failure of Practice to pay the Management Fee in the time frames set forth in Article 5 hereof and after written notice from Manager and an additional reasonable opportunity to cure. 

  
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 6.4 Immediate Termination By Practice. Practice shall have the right, but not the
obligation, to terminate this Agreement immediately upon notice to Manager of any of the following events: 
 6.4.1 The
conviction of Manager of any crime punishable as a felony under federal or state law or of any health care crime. 
 6.4.2
The suspension or exclusion of Manager from any state or federal healthcare program (e.g., Medicare, Medicaid, or TRICARE). 
 6.5
Termination By Either Party. This Agreement may be terminated as follows: 
  

	 	(a)	By mutual written agreement of the parties. 

  

	 	(b)	By either party immediately upon the filing of a petition in bankruptcy or the insolvency of the other party. 

  

	 	(c)	By either party upon a material breach of a material provision hereof by the other party, provided that the non-breaching party provides the breaching party with ninety (90) days written notice of any such breach,
during which period of time the breaching party shall have the opportunity to cure any such breach (or in the event of a non-monetary breach which is not curable within such 90 day period the breaching party shall have the opportunity to commence
cure of any such breach). If any such breach is cured by the breaching party during such period of time (or in the event of a non-monetary breach which is not curable within such 90 day period but the breaching party has commenced to cure such
breach and does continue to cure such breach with the exercise of due diligence), it shall be as if such breach never occurred and this Agreement shall continue in full force and effect, unaffected by the non-breaching party’s notice.

  

	 	(d)	By either party pursuant to Section 10.15 (“Limited Renegotiation”) hereof. 

6.6 Effect of Termination. In the event of termination, Practice shall no longer have any right to any of the services provided by
Manager hereunder and shall no longer have the right to use or otherwise benefit from the Marks (as defined in Section 8.1) or Intellectual Property (as defined in Section 8.2), in any form or fashion or any similar name, trademark or
logo. Practice shall return to Manager any equipment, records and other items provided hereunder and cease using the Marks or Intellectual Property, and any trademarks, service mark or other name similar thereto. Practice shall also immediately take
all steps necessary to change its trade names to cease using the Marks. 

  
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 ARTICLE 7 

RECORDS AND RECORD KEEPING 

7.1 Access to Information. Practice hereby authorizes and grants to Manager reasonable access to information, instruments and documents
relating to Practice that may be reasonably requested by Manager to perform its obligations hereunder and shall disclose and make available to representatives of Manager for review and photocopying all such books, agreements, papers, records and
information. 
 7.2 Patient Records. 

7.2.1 The management services herein shall include Manager’s retention and maintenance of patient medical records on
behalf of Practice, to the extent permitted by, and in full accordance with all applicable laws and regulations regarding confidentiality and retention and ownership of records. 

7.2.2 At all times during and after the Term of this Agreement, all business records and information, including, without
limitation, all books of account and general administrative records and all information generated under or contained in the management information system pertaining to Practice shall be and remain the sole property of Practice. 

7.2.3 Practice shall at all times during the Term, and at all times thereafter, make available to Manager for inspection by its
authorized representatives, during regular business hours, any of Practice’s records necessary for Manager to perform its services and carry out its responsibilities hereunder or necessary for the defense of any legal or administrative action
or claim relating to said records. 
 7.3 Confidentiality of Records. Manager and Practice will adopt procedures to assure the
confidentiality of the records relating to the operations of Manager and Practice and the Facilities, including, without limitation, all statistical, financial and personnel data related to the operations of Manager and Practice and the Facilities,
which information is not otherwise available to third parties publicly or by law. 
 7.4 Maintenance, Retention and Storage of
Records. Manager agrees to maintain, retain and store on behalf of Practice, in such form and manner as required by applicable law, all records relating to Practice and in its possession, including, but not limited to, patient medical records,
at its sole cost and expense, for the longer of (i) ten (10) years, (ii) in cases of patients under minority, their complete records shall be retained for the period of not less than one (1) year after the minor reaches the age
of majority, or ten (10) years from the date of Practice’s last professional contact with the patient, whichever is longer, (iii) in the case of mentally incompetent patients, their medical records shall be maintained indefinitely,
(iv) in the case of immunization records, those records shall be retained indefinitely, (v) in the case of mammography records, those records shall be retained for a period of at least twenty (20) years, or (vi) the period
required by applicable law. Thereafter, Manager shall be entitled to dispose of such patient medical records as it deems necessary or appropriate; provided, however, Manager shall provide prior written notice to Practice of its intent to dispose of
such records and shall 

  
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provide Practice with a sixty (60) calendar day period, from the date that such notice is given by Manager, for Practice to take control of or copy any or all of the records to be disposed
of by Manager, at the sole cost and expense of Practice, to the extent permitted by applicable law. 
 7.5 HIPAA. Manager, as a
business associate of Practice, agrees to comply to the extent applicable with all applicable federal, state and local laws, including without limitation the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and all
implementing regulations issued pursuant thereto, as may be amended from time to time (45 CFR Parts 160-164). Manager shall protect the confidentiality, privacy and security of all medical records or other health-related information that Manager or
any employee or agent of Manager creates or receives for or from Practice pursuant to this Agreement. Manager agrees to comply with the HIPAA Business Associate Addendum attached hereto as Addendum A and incorporated by reference. 

 
 ARTICLE 8 

INTELLECTUAL PROPERTY AND OTHER PROPRIETARY INFORMATION 

8.1 Limited License. Manager hereby grants to Practice the nonexclusive right and license to use any names, trademarks, service marks,
design marks or logos provided by Manager to Practice in connection with this Agreement or otherwise utilized by Practice in connection with this Agreement (collectively, the “Marks”) during the Term of this Agreement and subject to the
prior written approval of Manager. Manager is and shall be the sole owner and holder of all right, title and interest to the Marks. Immediately upon the expiration or termination of this Agreement for any reason, Practice shall cease all uses of the
Marks and any similar name, trademark or logo. Practice acknowledges Manager’s ownership of the Marks and agrees that it will do nothing inconsistent with the ownership, validity, goodwill or value of the Marks. All use of the Marks by Practice
and all goodwill associated therewith shall inure to the benefit of and be on behalf of Manager. Practice will not register or seek to register any trademark or service mark which includes the Marks, alone or in composite form with other words or
designs, nor will Practice register or seek to register any trademark or service mark which would be similar to the Marks. Without limiting the generality of the foregoing, Practice shall not assert or claim that the Marks are descriptive, generic
or otherwise attack the validity, title or any rights of Manager in or to the Marks or any Intellectual Property (as hereinafter defined). Practice will not sublicense the Marks or Practice’s rights under this Agreement without the prior
written consent of Manager. 
 8.2 Proprietary Property. Manager is and shall be the exclusive owner and holder of all right, title
and interest to the proprietary property of Manager, including without limitation, all copyrights, Marks, trade secrets, Confidential Business Information (as defined below), management information systems, forms, form contracts and policy manuals
(collectively the “Intellectual Property”). Practice agrees that it shall not at any time knowingly harm, misuse or bring into disrepute the proprietary property of Manager. Practice shall promptly notify Manager in writing in the event it
becomes aware of any third party infringing, misusing or otherwise violating any of the Marks or the Intellectual Property, or who that party believes is, or may be infringing, diluting or otherwise derogating the Marks or the Intellectual Property.
Manager represents and warrants that all Intellectual Property is free from infringement or other adverse claims and agrees to defend, indemnify, and hold Practice harmless from and against any losses, damages or expenses (including attorneys’
fees) arising from any third party claim. 

  
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 8.3 Use of Management Information System (MIS). Practice shall use all software and
hardware provided by Manager pursuant to this Agreement only for the purpose of conducting Practice’s practice in the Facilities and solely in accordance with and subject to all of the terms and conditions of any license or sublicense
agreements, leases or any other agreements that such software and hardware are subject to, and shall not allow or permit any person to use the software or hardware or any portion thereof in violation of this Agreement or any such license,
sublicense, agreements, lease or any other agreements. 
 8.4 Manager Confidential Business Information. Practice acknowledges that
during the course of its relationship with Manager hereunder, Practice may be given access to or may become acquainted with Manager’s Confidential Business Information (as defined below). In recognition of the foregoing and in addition to any
other requirements of confidentiality under applicable law, Practice hereby agrees not to disclose or use any of the Manager’s Confidential Business Information (except in connection with the services rendered to Practice hereunder) during the
Term of this Agreement and an additional period of five (5) years thereafter. For purposes of this Agreement, “Manager’s Confidential Business Information” shall mean any and all information, know-how and data, technical or
non-technical, whether written, oral, electronic, graphic or otherwise of Manager that is reasonably considered or treated as confidential and proprietary, and shall include, but not be limited to: 

 

	 	(a)	business methods; 

  

	 	(b)	facilities and locations; 

  

	 	(c)	billing policies, procedures, processes and records; 

  

	 	(d)	tax returns and records; 

  

	 	(e)	any records, memoranda and correspondences dealing with the business of Manager; 

  

	 	(f)	financial, pricing and operational information, including all insurance records; 

  

	 	(g)	internal memoranda, emails or correspondence; 

  

	 	(h)	form agreements, checklists or pleadings; 

  

	 	(i)	contracts or agreements executed by or on behalf of Manager with any person or entity, including, but not limited to, hospitals, clinics and medical practices or offices; 

 

	 	(j)	information regarding advantageous business relationships with hospitals, other facilities, clinics and medical practices or offices; 

  
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	 	(k)	suppliers, marketing, and other information and know-how, all relating to or useful in Manager’s business and which have not been disclosed to the general public; 

 

	 	(l)	this Agreement and any agreements contemplated hereby; 

  

	 	(m)	operational and business systems, policies and procedures; 

  

	 	(n)	software and processes; 

  

	 	(o)	systems design; 

  

	 	(p)	algorithms; 

  

	 	(q)	business strategies; 

  

	 	(r)	business opportunities; 

  

	 	(s)	customer lists and information; 

  

	 	(t)	research and technical information; 

  

	 	(u)	outcomes and related data; and 

  

	 	(v)	intellectual property, know-how and trade secrets. 

 Practice agrees and acknowledges that the
Manager’s Confidential Business Information, as such may exist from time to time, constitutes valuable, confidential, special and unique assets of Manager. The parties hereto agree that the documents relating to the business of Manager,
including all of Manager’s Confidential Business Information, are the exclusive property of Manager. Practice understands and agrees that its obligations and duties under this Section do not cease upon termination of this Agreement and,
further, Practice shall return all such documents (including any copies thereof) to Manager immediately upon the termination of this Agreement. 

ARTICLE 9 

NONCOMPETITION AND NONSOLICITATION PROVISIONS 

9.1 During the Term of this Agreement and for a period of two (2) years after the termination or expiration of this Agreement for any
reason, Practice and each of its physician shareholders (each individually referred to as “Shareholder”) shall not, without Manager’s prior written consent, directly or indirectly, anywhere within the Restricted Territory (as defined
below): (i) establish, own or operate a medically assisted addiction therapy clinic or facility staffed by physicians, physician assistants or nurse practitioners and providing the services of physicians, physician assistants and nurse
practitioners to the general public in a manner similar to the medically assisted addiction therapy clinic operated by the Facilities pursuant to this Agreement or (ii) in direct competition with Manager engage in or participate in the
management of medically assisted addiction therapy clinics or facilities staffed by physicians, physician 

  
 13 

 
assistants or nurse practitioners and providing the services of physicians, physician assistants and nurse practitioners to the general public in a manner similar to the Facilities pursuant to
this Agreement. For purposes of this Section, “Restricted Territory” shall mean any location within 25 miles of a Facility or other addiction therapy or behavioral health facility owned, operated, or managed by Manager or one of
Manager’s affiliates. 
 9.2 During the Term of this Agreement and for a period of two (2) years after the termination or
expiration of this Agreement for any reason, Practice and each Shareholder shall not, directly or indirectly without Manager’s prior written consent: 

9.2.1 Solicit, hire or engage any individual working for, or previously working for, Manager, the Facilities, or Practice as an
employee, independent contractor, consultant, agent or representative; 
 9.2.2 Induce or attempt to influence any employee
or contractor of Manager, the Facilities, Practice to terminate his, her, or its employment or engagement with Manager, the Facilities or Practice; or 

9.2.3 Restrict, limit, interfere, induce or influence any physician, nurse practitioner, physician assistant, nurse, laboratory
technician, medical assistant or provider of health professional services that has provided services at the Facilities from becoming an employee or independent contractor of Manager (if permitted by applicable law) or of another practice or
professional corporation that is managed by Manager. Practice further agrees to release any such physician, nurse practitioner, physician assistant, nurse, laboratory technician, medical assistant or provider from any non-compete or other similar
restrictive covenant so that such individuals can be employed or engaged by Manager (if permitted by applicable law) or by another practice or professional corporation managed by Manager. 

9.3 Practice shall ensure that any and all agreements between Practice and any Practitioner contain non-competition agreements and restrictive
covenants satisfactory to Manager. Practice and each Shareholder shall take any and all steps necessary to enforce such restrictive covenants with such Practitioners to the fullest extent permitted by law. 

9.4 Practice and each Shareholder understands and acknowledges that the foregoing provisions in this Section are designed to preserve the
goodwill of Manager and its affiliates, the trade secrets of Manager, and the workforce of Manager and its owned, operated, or managed clinics. 

9.5 Practice and each Shareholder understands and acknowledges that violation of this Section 9 will cause irreparable harm to Manager,
the exact amount of which will be impossible to ascertain, and for that reason Practice and each Shareholder agrees that Manager shall be entitled to seek, without the necessity of showing any actual damage or posting a bond (unless required by
law), from any court of competent jurisdiction temporary or permanent injunctive relief and/ or specific performance of this Agreement restraining Practice from any act prohibited by this Section 9. 

  
 14 

 9.6 Nothing in this paragraph shall limit Manager’s right to recover any other damages or
remedies to which it is entitled as a result of Practice’s or any Shareholder’s breach. If any one or more of the provisions of this Section 9 or any word, phrase, clause, sentence or other portion of this Section 9 (including
without limitation the geographical, duration or scope of activity restrictions contained in this Section 9) shall be held to be unenforceable or invalid for any reason, such provision or portion of provision shall be modified or deleted in
such a manner so as to make this Section 9, as modified, legal and enforceable to the fullest extent permitted under applicable law. 

9.7 The provisions of this Section 9 shall survive the termination of this Agreement. 

ARTICLE 10 
 GENERAL

 10.1 Indemnification. Each of Practice and Manager hereby agrees to indemnify, defend and hold harmless the other, its
officers, directors, owners, members, employees, agents, affiliates and subcontractors, from and against any and all claims, damages, demands, diminution in value, losses, liabilities, actions, lawsuits and other proceedings, judgments, fines,
assessments, penalties, awards, costs and expenses (including reasonable attorneys’ fees), whether or not covered by insurance, arising directly out of (a) any material breach of any provision, warranty or representation contained in this
Agreement or (b) any acts or omissions by such indemnifying party, its owners, employees, agents or subcontractors. The provisions of this Section 10.1 shall survive termination or expiration of this Agreement. A party seeking
indemnification shall immediately notify the other of any lawsuits or actions, or any threat thereof, that are known or become known to it that might adversely affect any interest of Practice or Manager whatsoever. 

10.2 Arbitration. All disputes relative to interpretation of the provisions of this Agreement or any other dispute arising among the
parties shall be resolved by binding arbitration pursuant to the rules of the American Arbitration Association then pertaining. Arbitration proceedings shall be held in Nashville, Tennessee. The parties may, if they are able to do so, agree upon one
arbitrator; otherwise, there shall be three (3) arbitrators selected to resolve disputes pursuant to this Section 10.2, one named in writing by each party within fifteen (15) days after notice of arbitration is served upon a party by
the other party, and a third arbitrator selected by the two (2) arbitrators selected by the parties within fifteen (15) days thereafter. If one party does not choose an arbitrator within such fifteen (15) days, the other party shall
request that the American Arbitration Association name such other arbitrator. No one shall serve as arbitrator who is in any way financially interested in this Agreement or in the affairs of either party or its affiliates. Each party shall pay its
own expenses of arbitration and one-half of the expenses of the arbitrators. If any position by any party hereunder, or any defense or objection thereto, is deemed by the arbitrators to have been unreasonable, the arbitrators shall assess, as part
of their award against the unreasonable party or reduce the award to the unreasonable party, all or part of the arbitration expenses (including reasonable attorneys’ fees) of the other party and of the arbitrators. 

  
 15 

 10.3 Entire Agreement; Amendment. This Agreement constitutes the entire agreement between
the parties related to the subject matter hereof and supersedes all prior agreements, understandings, and letters of intent relating to the subject matter hereof. This Agreement may be amended, modified or supplemented only by a writing executed by
both parties. 
 10.4 Relationship of the Parties. The relationship of the parties is and shall be that of independent contractors,
and nothing in this Agreement is intended as, and nothing shall be construed to create, an employer/employee relationship, partnership or joint venture relationship between the parties, or to allow either to exercise control or direction over the
manner or method by which the other performs the services that are the subject matter of this Agreement; provided, however, that the services to be provided hereunder shall always be furnished in a manner consistent with the standards governing such
services and the provisions of this Agreement. 
 10.5 Notices. Any notice or other communication required or desired to be given to
either party shall be in writing and shall be deemed given when hand-delivered or deposited in the United States mail, first-class postage prepaid, addressed to the parties at the addresses set forth below. Any party may change the address to which
notices and other communications are to be given by giving the other parties notice of such change. 
  

							
	 If to Practice:
	  		  		  	
			
	 If to Manager:
	  	 American Addiction Centers, Inc.

115 East Park Drive, Second Floor
 Brentwood, Tennessee 37027

Attn:    Michael T. Cartwright, Chairman and
Chief Executive Officer

Email:  fitrx@live.com
	  	
			
	 With a copy to:
	  	 American Addiction Centers, Inc.

115 East Park Drive, Second Floor
 Brentwood, Tennessee 37027

Attn.:   Kathryn Sevier Phillips, General Counsel and
Secretary

Fax:   (615) 691-7130

Email:    ksphillips@contactaac.com
	  	

 10.6 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which, when taken together, will constitute one and the same instrument. 
 10.7 Governing Law. This
Agreement shall be construed and governed in accordance with the laws of the State of Tennessee, without reference to conflict of law principles. 

10.8 Assignment. This Agreement shall not be assignable by either party hereto without the express written consent of the other party.

  
 16 

 10.9 Waiver. Waiver of any agreement or obligation set forth in this Agreement by either
party shall not prevent that party from later insisting upon full performance of such agreement or obligation and no course of dealing, partial exercise or any delay or failure on the part of any party hereto in exercising any right, power,
privilege, or remedy under this Agreement or any related agreement or instrument shall impair or restrict any such right, power, privilege or remedy or be construed as a waiver therefor. No waiver shall be valid against any party unless made in
writing and signed by the party against whom enforcement of such waiver is sought. 
 10.10 Binding Effect. Subject to the provisions
set forth in this Agreement, this Agreement shall be binding upon and inure to the benefit of the parties hereto and upon their respective successors and assigns. 

10.11 Severability. If any one or more of the provisions of this Agreement is adjudged to any extent invalid, unenforceable, or
contrary to law by a court of competent jurisdiction, each and all of the remaining provisions of this Agreement will not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law. 

10.12 Force Majeure. Either party shall be excused for failures and delays in performance of its respective obligations under this
Agreement due to any cause beyond the control and without the fault of such party, including without limitation, any act of God, war, terrorism, bio-terrorism, riot or insurrection, law or regulation, strike, flood, earthquake, water shortage, fire,
explosion or inability due to any of the aforementioned causes to obtain necessary labor, materials or facilities. This provision shall not, however, release such party from using its best efforts to avoid or remove such cause and such party shall
continue performance hereunder with the utmost dispatch whenever such causes are removed. Upon claiming any such excuse or delay for non-performance, such party shall give prompt written notice thereof to the
other party, provided that failure to give such notice shall not in any way limit the operation of this provision. 
 10.13 Authorization
for Agreement. The execution and performance of this Agreement by Practice and Manager have been duly authorized by all necessary laws, resolutions, and corporate or partnership action, and this Agreement constitutes the valid and enforceable
obligations of Practice and Manager in accordance with its terms. 
 10.14 Duty to Cooperate. The parties acknowledge that the
parties’ mutual cooperation is critical to the ability of Manager to perform successfully and efficiently its duties hereunder. Accordingly, each party agrees to cooperate fully with the other in formulating and implementing goals and
objectives which are in the best interest of Practice’s patients. 
 10.15 Limited Renegotiation. This Agreement shall be
construed to be in accordance with any and all federal and state laws, including laws relating to Medicare, Medicaid, and other third party payors. In the event there is a change in such laws, whether by statute, regulation, agency or judicial
decision, guidance or interpretation that has any material effect on any Term of this Agreement, then the applicable term(s) of this Agreement shall be subject to renegotiation and either party may request renegotiation of the affected term or terms
of this Agreement, upon written notice to the other party, to remedy such condition. 

  
 17 

 The parties expressly recognize that upon request for renegotiation, each party has a duty and
obligation to the other only to renegotiate the affected term(s) in good faith and, further, each party expressly agrees that its consent to proposals submitted by the other party during renegotiation efforts shall not be unreasonably withheld. 

Should the parties be unable to renegotiate the term or terms so affected so as to bring it/them into compliance with the statute, regulation
or judicial opinion, guidance or interpretation that rendered it/them unlawful or unenforceable within ninety (90) days of the date on which notice of a desired renegotiation is given, then either party shall be entitled, after the expiration
of said ninety (90) day period, to terminate this Agreement upon thirty (30) additional days written notice to the other party. 

[Remainder of Page Left Intentionally Blank] 

  
 18 

 IN WITNESS WHEREOF, the parties have executed this Management Services Agreement as of the day
and year first above written. 
  

									
	For Practice:	 		 	For Manager:
			
		 		 	American Addiction Centers, Inc.
					
	By:	 	 	 		 	By:	 	 
			
	Name:	 		 	Name:  Michael T. Cartwright
			
	Title:	 		 	Title:  Chairman and Chief Executive Officer

  
 19 

 ADDENDUM A 

HIPAA BUSINESS ASSOCIATE ADDENDUM 

This Business Associate Addendum (“Addendum”) amends and is made part of that certain Management Services Agreement between
                             (“Entity”) and American Addiction Centers, Inc.
(“Associate”). 
 Entity and Associate agree that the parties incorporate this Addendum into the Agreement in order to comply with
the requirements of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), the Health Information Technology for Economic and Clinical Health Act (“HITECH”) and their implementing regulations set forth at 45
C.F.R. Parts 160 and Part 164 (the “HIPAA Rules”). To the extent Associate is acting as a Business Associate of Entity pursuant to the Agreement, the provisions of this Addendum shall apply, and Associate shall be subject to the penalty
provisions of HIPAA as specified in 45 CFR Part 160. 
 1. Definitions. Capitalized terms not otherwise defined in this Addendum
shall have the meaning set forth in the HIPAA Rules. References to “PHI” mean Protected Health Information maintained, created, received or transmitted by Associate from Entity or on Entity’s behalf. 

2. Uses or Disclosures. Associate will neither use nor disclose PHI except as permitted or required by this Addendum or as Required By
Law. To the extent Associate is to carry out an obligation of a Covered Entity under 45 CFR Part 164, Subparts A and E, Associate shall comply with the requirements of 45 CFR Part 164, Subparts A and E that apply to such Covered Entity in the
performance of such obligation. Associate is permitted to use and disclose PHI: 
 (a) to perform any and all obligations of Associate as
described in the Agreement, provided that such use or disclosure would not violate the HIPAA Rules, if done by Entity directly; 
 (b) as
otherwise permitted by law, provided that such use or disclosure would not violate the HIPAA Rules, if done by Entity directly and provided that Entity gives its prior written consent; 

(c) to perform Data Aggregation services relating to Entity’s health care operations; 

(d) to report violations of the law to federal or state authorities consistent with 45 CFR § 164.502(j)(1); 

(e) as necessary for Associate’s proper management and administration and to carry out Associate’s legal responsibilities
(collectively “Associate’s Operations”), provided that Associate may only disclose PHI for Associate’s Operations if the disclosure is Required By Law or Associate obtains reasonable assurance, evidenced by a written contract,
from the recipient that the recipient will: (1) hold such PHI in confidence and use or further disclose it only for the purpose for which it was disclosed or as Required By Law; and (2) notify Associate of any instance of which the
recipient becomes aware in which the confidentiality of such PHI was breached; 

  
 20 

 (f) to create de-identified information in accordance with 45 CFR § 164.514(b), provided
that such de-identified information may be used and disclosed only consistent with applicable law; 
 (g) to create a limited data set as
defined at 45 CFR §164.514(e)(2), provided that Associate will only use and disclose such limited data set for purposes of research, public health or health care operations and will comply with the data use agreement requirements of 45 CFR
§164.514(e)(4), including that Associate will not identify the information or contact the individuals. 
 In the event Entity notifies
Associate of a restriction request that would restrict a use or disclosure otherwise permitted by this Addendum, Associate shall comply with the terms of the restriction request. 

3. Safeguards. Associate will use appropriate administrative, technical and physical safeguards to prevent the use or disclosure of PHI
other than as permitted by this Addendum. Associate will also comply with the applicable provisions of 45 CFR Part 164, Subpart C with respect to electronic PHI to prevent any use or disclosure of such information other than as provided by this
Addendum. 
 4. Subcontractors. In accordance with 45 CFR §§ 164.308(b)(2) and 164.502(e)(1)(ii), Associate will ensure
that all of its subcontractors that create, receive, maintain or transmit PHI on behalf of Associate agree by written contract to comply with the same restrictions and conditions that apply to Associate with respect to such PHI, including but not
limited to the obligation to comply with applicable provisions of 45 CFR Part 164, Subpart C. 
 5. Minimum Necessary. Associate
represents that the PHI requested, used or disclosed by Associate shall be the minimum amount necessary to carry out the purposes of the Agreement. Associate will limit its uses and disclosures of, and requests for, PHI (i) when practical, to
the information making up a Limited Data Set; and (ii) in all other cases subject to the requirements of 45 CFR § 164.502(b), to the minimum amount of PHI necessary to accomplish the intended purpose of the use, disclosure or request. 

6. Entity Obligations. Entity shall notify Associate of (i) any limitations in its notice of privacy practices, (ii) any
changes in, or revocation of, permission by an individual to use or disclose PHI, and (iii) any confidential communication request or restriction on the use or disclosure of PHI that Entity has agreed to or with which Entity is required to
comply, to the extent any of the foregoing affect Associate’s use or disclosure of PHI. Entity shall not request Associate to use or disclose PHI in a manner not permitted by the HIPAA Rules and shall obtain any permissions or authorizations,
if any, required to disclose PHI to Associate pursuant to the Agreement. 
 7. Access and Amendment. In accordance with 45 CFR §
164.524, Associate shall permit Entity or, at Entity’s request, an individual (or the individual’s designee) to inspect and obtain copies of any PHI about the individual that is in Associate’s custody or control and that is

  
 21 

 
maintained in a Designated Record Set. If the requested PHI is maintained electronically, Associate must provide a copy of the PHI in the electronic form and format requested by the individual,
if it is readily producible, or, if not, in a readable electronic form and format as agreed to by Entity and the individual. Associate will, upon receipt of notice from Entity, promptly amend or permit Entity access to amend PHI so that Entity may
meet its amendment obligations under 45 CFR § 164.526. 
 8. Accounting. Except for disclosures excluded from the accounting
obligation by the HIPAA Rules and regulations issued pursuant to HITECH, Associate will record for each disclosure that Associate makes of PHI the information necessary for Entity to make an accounting of disclosures pursuant to the HIPAA Rules. In
the event the U.S. Department of Health and Human Services (“HHS”) finalizes regulations requiring Covered Entities to provide access reports, Associate shall also record such information with respect to electronic PHI held by Associate as
would be required under the regulations for Covered Entities beginning on the effective date of such regulations. Associate will make information required to be recorded pursuant to this Section available to Entity promptly upon Entity’s
request for the period requested, but for no longer than required by the HIPAA Rules (except Associate need not have any information for disclosures occurring before the effective date of this Addendum). 

9. Inspection of Books and Records. Associate will make its internal practices, books, and records, relating to its use and disclosure
of PHI, available upon request to HHS to determine compliance with the HIPAA Rules. 
 10. Reporting. To the extent Associate becomes
aware or discovers any use or disclosure of PHI not permitted by this Addendum, any Security Incident involving electronic PHI or any Breach of Unsecured Protected Health Information, Associate shall promptly report such use, disclosure, Security
Incident or Breach to Entity. Associate shall mitigate, to the extent practicable, any harmful effect known to it of a Security Incident, Breach or use or disclosure of PHI by Associate not permitted by this Addendum. Notwithstanding the foregoing,
the parties acknowledge and agree that this section constitutes notice by Associate to Entity of the ongoing existence and occurrence of attempted but Unsuccessful Security Incidents (as defined below) for which no additional notice to Entity shall
be required. “Unsuccessful Security Incidents” shall include, but not be limited to, pings and other broadcast attacks on Associate’s firewall, port scans, unsuccessful log-on attempts, denials of service and any combination of the
above, so long as no such incident results in unauthorized access, use or disclosure of electronic PHI. All reports of Breaches shall be made in compliance with 45 CFR § 164.410. 

11. Term. This Addendum shall be effective as of the effective date of the Agreement and shall remain in effect until termination of
the Agreement. Either party may terminate this Addendum and the Agreement effective immediately if it determines that the other party has breached a material provision of this Addendum and failed to cure such breach within thirty (30) days of
being notified by the other party of the breach. If the non-breaching party determines that cure is not possible, such party may terminate this Addendum and the Agreement effective immediately upon written notice to other party. 

  
 22 

 Upon termination of this Addendum for any reason, Associate will, if feasible, return to Entity
or destroy all PHI maintained by Associate in any form or medium, including all copies of such PHI. Further, Associate shall recover any PHI in the possession of its agents and subcontractors and return to Entity or securely destroy all such PHI. In
the event that Associate determines that returning or destroying any PHI is infeasible, Associate may maintain such PHI but shall continue to abide by the terms and conditions of this Addendum with respect to such PHI and shall limit its further use
or disclosure of such PHI to those purposes that make return or destruction of the PHI infeasible. Upon termination of this Addendum for any reason, all of Associate’s obligations under this Addendum shall survive termination and remain in
effect (a) until Associate has completed the return or destruction of PHI as required by this Section and (b) to the extent Associate retains any PHI pursuant to this Section. 

12. General Provisions. In the event that any final regulation or amendment to final regulations is promulgated by HHS or other
government regulatory authority with respect to PHI, the parties shall negotiate in good faith to amend this Addendum to remain in compliance with such regulations. Any ambiguity in this Addendum shall be resolved to permit Entity and Associate to
comply with the HIPAA Rules. Nothing in this Addendum shall be construed to create any rights or remedies in any third parties or any agency relationship between the parties. A reference in this Addendum to a section in the HIPAA Rules means the
section as in effect or as amended. The terms and conditions of this Addendum override and control any conflicting term or condition of the Agreement and replace and supersede any prior business associate agreements in place between the parties. All
non-conflicting terms and conditions of the Agreement remain in full force and effect. 

  
 23 

 Schedule 

Note: For the Exhibit listed in the first column below, only the Form of Management Services Agreement has been filed as an exhibit to the
Registrant’s Form S-1 registration statement. This Schedule provides detail as to the actual Agreements entered into between AAC and the Professional Groups indicated below and lists the material details in which each such Agreement differs
from the form of document filed. 
  

							
	 Exhibit 
No.	  	 Practice Group
	  	Address	  	Date of Agreement
	10.38	  	San Diego Professional Group, P.C.	  	 731 South Highway 101, Suite 1-E

Solano Beach, California 92075
 Attn: Mark A. Calarco,
D.O.
	  	August 1, 2014
	 	 	 	 
	 	  	Palm Beach Professional Group, Professional Corporation	  	 4400 E. Congress Avenue

West Palm Beach, Florida 33407
 Attn: Mark A. Calarco,
D.O.
	  	August 1, 2014
	 	 	 	 
	 	  	Las Vegas Professional Group – Calarco, P.C.	  	 2465 E. Twain Avenue, Suite 100

Las Vegas, Nevada 89121
 Attn: Mark A. Calarco, D.O.
	  	August 1, 2014
	 	 	 	 
	 	  	Brentwood Professional Group, P.C.	  	 204 Ward Circle, Suite 300B

Brentwood, Tennessee 37027
 Attn: Mark A. Calarco, D.O.
	  	August 1, 2014
	 	 	 	 
	 	  	Grand Prairie Professional Group, P.A.	  	 1171 107th Street, Suite A

Grand Prairie, Texas 75050
 Attn: Mark A. Calarco, D.O.
	  	August 1, 2014EX-10.39

 Exhibit 10.39 

PROFESSIONAL SERVICES AGREEMENT 

For Medical Staffing 

THIS PROFESSIONAL SERVICES AGREEMENT for Medical Staffing (“Agreement”) is made this 5th day of August, 2014 (the “Effective Date”), between San Diego Professional Group, P.C. (“Practice”), a professional corporation organized under the laws of
California, and San Diego Addiction Treatment Center, Inc., a Delaware corporation (“Company”) (individually, a “Party,” and, collectively, the “Parties”). 

W I TN E S S E T H: 

WHEREAS, Company has established and operates an addiction treatment facility, San Diego Addiction Treatment Center, Inc.
(“Facility”), located at 2456 East Street, San Diego, California 92102; 
 WHEREAS, Practice employs Medical
Providers and other medical personnel specializing in the treatment of various addictions; 
 WHEREAS, Practice is owned by a
physician licensed to practice medicine in the state of California (the “State”); and 
 WHEREAS, Company desires to
engage Practice as of the Effective Date to provide, or arrange the provision of, medical services on behalf of Company, and Practice desires to accept such engagement as of the Effective Date, all upon the terms and conditions set forth in this
Agreement. 
 NOW, THEREFORE, for and in consideration of the mutual agreements, covenants, terms and conditions herein
contained, the Parties agree as follows: 
 ARTICLE I 

ESTABLISHMENT OF PROFESSIONAL RELATIONSHIP 

1.1 Engagement of Practice. As of the Effective Date, Company engages Practice, and Practice accepts said engagement, to
provide medical services in accordance with the terms and conditions of this Agreement. 
 1.2 Relationship of the
Parties. In the performance of their respective duties and obligations hereunder, the Parties are independent contractors, and as such they shall remain professionally and economically independent of each other. The Parties are not, and
shall not be deemed to be, joint venturers, partners, employees, or agents of each other (except with respect to an agency for billing and collection activities expressly addressed in this Agreement). Neither Party shall have any authority to bind
or incur any financial obligations on behalf of the other without the other’s express written consent, and then only insofar as such authority is conferred by such express written consent. 

 ARTICLE II 

PRACTICE’S OBLIGATIONS 

2.1 General Obligations. Practice shall provide the Medical Provider services set forth on Schedule 2.1, attached
hereto and incorporated herein by reference. 
 2.2 Responsibility for Medical Provider Services. Practice shall
control and be responsible for the provision of medical services to Patients (as such term is defined on Schedule 2.1), and Company shall not engage in the practice of medicine nor shall it intervene or interfere in professional medical
judgment of Practice or any Medical Provider; provided, however, that Practice shall cause the Medical Providers to comply with Company’s systems and procedures for review and improvement of the delivery of care.  

2.3 Qualifications and Standards. Practice shall take all necessary actions to ensure that each Medical Provider
satisfies the following conditions at all times during the Term: 
 2.3.1 Licensure and Experience Levels. Each Medical
Provider shall maintain an unrestricted license to practice his or her specialty in the State and at all times shall be in good standing with the appropriate licensing board. Each Medical Provider shall have a level of competence, experience and
skill at least comparable to that prevailing in the community. 
 2.3.2 Federal DEA Number. The Medical Providers shall
maintain a Federal DEA number without restrictions, to the extent necessary for his or her practice. 
 2.3.3 Medical
Standards. Each Medical Provider shall perform all medical services to be provided hereunder in accordance with the current standards of care in the medical community and any credentialing and quality criteria that are adopted from time to
time by Company, the Facility and/or Practice 
 2.3.4 Continuing Education. Medical Providers shall participate in such
continuing medical education and training programs as required by law to maintain skills compatible with standards of medical care in the community. 

2.3.5 Bylaws. Medical Providers shall comply with any bylaws, policies, rules or regulations of Facility or Company, as may be
amended from time to time. 
 2.3.6 Laws. Medical Providers shall comply with all applicable standards, rulings, regulations
and requirements of the United States Department of Health and Human Services, the State’s department of health, the applicable accreditation agency of the Facility, and any federal, state or local government agency, third party payor or
accrediting body having jurisdiction over or providing reimbursement for the Facility and any programs and services offered by either the Facility or Company. 

2.3.7 Cooperation. Practice shall promptly notify Company if a claim of malpractice or professional discipline is asserted
against any Medical Provider resulting from medical services provided at Facility; additionally Practice shall notify Company of claims not yet asserted against Medical Providers, but the potential for which Practice is aware. 

  
 2 

 2.3.8 Approval and Removal. Each Medical Provider shall be subject to the initial
approval of Company before he or she commences providing services at Facility. In addition, Practice, at the request of Company, shall immediately remove a Medical Provider from Facility for cause. For purposes of this Section 2.3.8,
“for cause” shall be determined by Company acting reasonably and in good faith and shall include the following: (a) suspension or revocation or other sanction of his or her medical license, specialty board certification, or Federal
Drug Enforcement Agency (“DEA”) registration; (b) suspension, revocation, or reduction of his or her status or privileges as a member of the medical staff of any hospital utilized by Company for Patients served by the Medical
Providers (including without limitation any resignation of membership or privileges in lieu of or to avoid any of the foregoing actions); (c) being arrested or indicted for, or convicted of any felony or any criminal charge relating to the
practice of medicine; (d) being found by the appropriate licensure board or other state or federal regulatory agency to have violated any provision of law or the applicable code of medical ethics; (e) cancellation, termination or
non-renewal of his or her professional liability insurance and failure to obtain replacement coverage within thirty (30) days; or (f) having committed any actions or inactions which pose an immediate and significant threat to Patients.

 2.4 Compensation Responsibility. Practice shall be solely responsible for establishing and paying the compensation
and fringe benefits, if any, to the Medical Providers. Practice shall be solely responsible for the payment and withholding of appropriate amounts for income tax, social security, unemployment insurance, and state disability insurance taxes.
Practice shall also maintain in full force and effect all worker’s compensation insurance as may be required under the worker’s compensation laws of the State. 

2.5 Medical Provider Staffing Levels. As of the Effective Date, Practice shall assign to Facility Medical Providers
necessary to satisfy the patient needs at the Facility. 
 2.6 Authority. Practice has the right to enter into
this Agreement, and neither the execution of this Agreement nor Practice’s performance hereunder will result in it being in breach or default of any existing agreement. 

ARTICLE III 

COMPENSATION 
 3.1
General Compensation Principles. Practice shall be compensated for the services provided hereunder pursuant to the terms of this Agreement as described in Schedule 3.1, which is attached hereto and incorporated herein by
reference. The Parties hereby acknowledge and agree that such amount represents the fair market value of the services provided hereunder.  

ARTICLE IV 
 PATIENT
CHARGES, BILLING AND COLLECTION 
 4.1 Billing; Assignment of Fees. Company, directly or through an affiliate,
shall bill payors and patients for all technical and facility fees of the Facility. In addition, to the extent permissible by applicable law and third party payor policies, Company may (directly or through 

  
 3 

 
an affiliate) bill payors and patients globally for Company’s services and also the professional services of Practice and the Medical Providers that are provided pursuant to this Agreement.
Practice authorizes Company, directly or through an affiliate, to bill and collect all professional fees of Practice and the Medical Providers, as Practice’s and the Medical Providers’ agent and attorney-in-fact to the extent permitted by
applicable law for all services rendered by Practice or the Medical Providers at the Facility or on behalf of Company hereunder, either in Company’s own name or in Practice’s or individual Medical Provider’s name and provider number.
Practice shall ensure that each Medical Provider executes such documentation as may be necessary to permit such billing by Company. To the extent that it is not allowable by law or payor policies for Company to bill for services on behalf of
Practice or Medical Providers, Practice will bill in its own name for such services, provided that Practice intends to engage American Addiction Centers, Inc., an affiliate of Company, to provide billing support services. Practice shall ensure that
duplicative billing does not occur, and neither it nor any Medical Provider will payors or patients for the same services that are billed by Company. 

4.2 Practice to Provide Billing Information. For all applicable services described in Section 4.1 above and
in accordance with applicable law, Practice shall provide Company with all billing information for services rendered by the Medical Providers, including, but not limited to, the name of the Patient, the date of service, the nature and extent of
services provided, Patient diagnosis, and any supporting medical and non-medical information necessary to bill such services and to obtain payment and/or reimbursement. Each Medical Provider shall provide the above-described billing information to
Company within seven (7) calendar days after the applicable medical services are rendered. The applicable treating Medical Provider shall be responsible for appropriately coding the service provided and supplying the correct CPT, KEY, ICD-9 (or
ICD-10 once applicable) or other codes associated with the service. 
 ARTICLE V 

INSURANCE 
 5.1
Comprehensive General Liability and Property Insurance. Company shall procure and maintain during the Term of this Agreement comprehensive general liability insurance covering its activities relating to Facility and property insurance
covering the Facility. The comprehensive general liability insurance maintained hereunder shall be in amounts deemed sufficient by Company to protect against risks and losses associated with the operations of Facility. 

5.2 Company’s Professional Liability Insurance. Company shall procure and maintain in full force and effect during
the Term of this Agreement professional liability insurance covering Company and appropriate personnel provided by Company pursuant to this Agreement, including, without limitation, Company’s provider employees and contractors (subject to prior
approval of insurer), against errors and omissions arising from Patient services and/or non-medical services rendered by Company pursuant to this Agreement. All premiums, costs and expenses associated with
such professional liability insurance shall be borne by and paid by Company. The professional liability insurance procured by Company shall have limits of liability of at least one million dollars ($1,000,000) per claim and three million dollars
($3,000,000) per annual aggregate. For purposes of Sections 5.1 and 5.2, the term “insurance” shall include self-insurance arrangements maintained by Company for itself and its corporate affiliates, including Facility.

  
 4 

 5.3 Practice’s Professional Liability Insurance. Practice shall procure
and maintain in full force and effect during the Term of this Agreement, and for a period of three (3) years subsequent to the expiration or earlier termination of this Agreement, professional liability insurance (i.e., medical malpractice
insurance) with an insurer acceptable to Company, protecting Practice and its shareholders, officers, directors, and the Medical Providers against errors and omissions arising from professional services and/or medical services rendered by Practice
and the Medical Providers. Such policy of insurance shall name Company as an additional insured. The insurance required by this Section 5.3 shall specifically extend to acts or omissions of Medical Providers occurring both prior and
subsequent to the Effective Date. All premiums, costs and expenses associated with such professional liability insurance shall be borne by Practice. The professional liability insurance required by this Section 5.3 shall have limits of
liability of at least one million dollars ($1,000,000) per claim and three million dollars ($3,000,000) per annual aggregate. 

5.4 Proof of Insurance. At the request of the other Party, each Party shall furnish copies of or Certificates of
Insurance on all policies required under this Article V (or evidence of self-insurance) as evidence of the insurance coverage to be procured pursuant to this Agreement. In the case of Company, this evidence shall also specifically include
evidence of “tail” or other coverage for acts and omissions occurring prior to the Effective Date. The insurance coverage required under this Agreement shall not be canceled, modified, reduced or otherwise materially changed, except upon
thirty (30) days’ prior written notice to the non-procuring Party. 
 ARTICLE VI 

INDEMNIFICATION 

6.1 Indemnification by Company. Company shall indemnify, defend and hold Practice, and the shareholders, directors,
officers and employees of Practice, free and harmless from and against any and all claims, demands, liabilities, losses, damages, costs, and expenses, including reasonable attorneys’ fees, resulting in any manner, directly or indirectly from
any negligent or willful act or omission of Company or its non-Medical Provider employees providing services at Facility. Notwithstanding any provisions of the preceding sentence to the contrary, Company shall not be liable to Practice for any
consequential, exemplary or punitive damages. The duty of Company to indemnify, defend and hold harmless Practice shall only apply to the extent that any such loss sustained by Practice is not covered by insurance. The indemnification provisions of
this Section 6.1 are intended to be in addition to any common law rights to contribution existing under the laws of the State which one Party may have against the other. 

6.2 Indemnification by Practice. Practice shall indemnify, defend and hold Company, and the shareholders, directors,
officers and employees of Company, free and harmless from and against any and all claims, demands, liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees, resulting in any manner, directly or indirectly, from any
negligent or willful act or omission of any Medical Provider, including, specifically, (i) negligent or willful acts occurring both prior to and subsequent to the Effective Date and (ii) 

  
 5 

 
claims against Company attributable directly or indirectly to incorrect billing information provided to Company by Practice or any Medical Provider. Notwithstanding any provisions of the
preceding sentence to the contrary, Practice shall not be liable to Company for any consequential, exemplary or punitive damages. The indemnification provisions of this Section 6.2 are intended to be in addition to any common law rights
to contribution existing under the laws of the State which one Party may have against the other. A provision similar to that set forth in this Section 6.2 shall be contained in each contract between Practice and any independent
contractor providing professional medical services for Practice at the Facility in order to ensure that each such Medical Provider has agreed to indemnify Company as required by this Section 6.2. 

ARTICLE VII 
 RECORDS AND
CONFIDENTIALITY 
 7.1 Ownership of Records and Files. All business or medical records and files of whatever nature
or kind, including Patients’ files and x-rays, are the property of Company to the extent permitted by law; neither Practice nor individual Medical Providers shall acquire any proprietary rights with respect to such records. However, at
Practice’s written request, Company shall provide Medical Providers with copies of any records reflecting services performed by such Medical Provider with respect to (a) any claims against him/her in the nature of malpractice, (b) any
charges against him/her issued by a licensing board or professional association or (c) for any other purpose deemed appropriate by Company 

7.2 Confidentiality of Medical Records. Both Parties shall comply with all applicable federal and state laws and
regulations regarding the confidential and secure treatment of individually identifiable health information, including 42 C.F.R. Part 2, and with the terms of the Business Associate Addendum attached as Schedule 7.2 hereto and incorporated
herein by reference. 
 7.3 Medical Records upon Termination. Upon the expiration or earlier termination of this
Agreement, unless a Patient specifies otherwise and in accordance with applicable law, Company shall be entitled to the original medical records for all Patients, and Practice shall be entitled to copy such records, with the cost of any copies to be
home by Practice. For such period as is required by applicable statutes, Company shall keep possession of the original medical records and shall retain the records in their original condition, shall store the records in a safe place and make the
records available to Practice without charge if reasonably necessary for any purpose, including, without limitation, Patient care and medical malpractice defense. 

ARTICLE VIII 
 TERM AND
TERMINATION 
 8.1 Term. This Agreement shall be effective for a term of five (5) years, beginning on the
Effective Date, unless terminated pursuant to the provisions of this Article VIII (the “Initial Term”). Upon expiration of the Initial Term, this Agreement will automatically renew for additional one (1) year terms (the
“Renewal Terms”) unless either Party shall provide notice to the other Party of its intent to terminate the Agreement under the terms of this Section 8.1 (“Notice of Intent to Terminate”). Notice of
Intent to Terminate must be provided no later than one (1) year prior to the expiration of the Initial Term, and no later than ninety (90) days prior to the expiration of any Renewal Term.  

  
 6 

 8.2 Termination upon Insolvency. If either Party shall apply for or consent
to the appointment of a receiver, trustee or liquidation of itself, or if all or a substantial part of its assets, file a voluntary petition in bankruptcy or admit in writing its inability to pay its debts as they become due, make a general
assignment for the benefit of creditors, file a petition or an answer seeking reorganization or arrangement with creditors, or take advantage of any insolvency law, or if an order, judgment, or decree shall be entered by a court of competent
jurisdiction or an application of a creditor, adjudicating such party to be bankrupt or insolvent, or approving a petition seeking reorganization of such Party or appointing a receiver, trustee or liquidator of such Party or of all or a substantial
part of its assets, and such order, judgment, or decree shall continue in effect and unstayed for a period of thirty (30) consecutive days, then the other Party may terminate this Agreement upon ten (10) days prior written notice to such
Party. 
 8.3 Termination upon Legal Prohibitions of Relationship. If counsel jointly selected by the Parties
should determine (the “Determination”) that it is more likely than not that applicable legislation, regulations, rules or procedures (collectively referred to herein as a “Law”) in effect or to become effective as
of a date certain, or if Practice or Company receives notice (the “Notice”) of an actual or threatened decision, finding or action by any governmental or private agency or court (collectively referred to herein as an
“Action”), which Law or Action, if or when implemented, would have the effect of subjecting either Party to civil or criminal prosecution under state and/or federal Laws, or other adverse proceeding on the basis of their
participation herein, then the Parties shall attempt in good faith to amend this Agreement to the extent necessary in order to comply with such Law or to avoid the Action, as applicable. If, within ninety (90) days of providing written notice
of such Determination or Notice to the other Party, the Parties acting in good faith are unable to mutually agree upon and make amendments or alterations to this Agreement to meet the requirements in question, or alternatively, the Parties mutually
determine in good faith that compliance with such requirements is impossible or unfeasible, then this Agreement shall be terminated without penalty, charge or continuing liability upon the earlier of the following: the date one hundred eighty
(180) days subsequent to the date upon which either Party gives written notice to the other Party or the effective date on which the Law or Action prohibits the relationship of the Parties pursuant to this Agreement. 

8.4 Termination upon Breach. Either Party may elect to terminate this Agreement in the event that the other Party is in
material breach of this Agreement and such default continues for a period of fifteen (15) calendar days after written notice thereof has been given to the Party in default by the other Party; provided, however, that Company may
immediately terminate this Agreement if Practice fails to provide, or arrange the provision of, adequate professional medical services pursuant to this Agreement for a period of three (3) calendar days. 

8.5 Termination Without Cause. This Agreement shall automatically terminate upon one hundred and eighty
(180) days’ notice by either Party to the other Party. 
 8.6 Termination and Liabilities. In the
event either Party validly elects to terminate this Agreement pursuant to the provisions of this Article VIII or the Agreement expires by its own terms, the liabilities and obligations of the Parties shall cease as of the date of termination,
 

  
 7 

 
except that each Party shall be responsible for: (a) any payments or other obligations arising or accruing prior to the termination date and (b) any breach arising after termination or
expiration with respect to obligations that continue after such expiration or termination. Neither Party shall be liable to the other for any damages resulting from any event of force majeure. The Parties agree that upon such termination, they will
mutually work to assure an orderly transition of services. 
 ARTICLE IX 

GENERAL PROVISIONS 

9.1 Independence of Medical Judgment. Nothing in this Agreement shall affect the exercise of Medical Providers’
independent medical judgment. 
 9.2 Entire Agreement; Amendment. This Agreement constitutes the entire
agreement between the Parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the Parties which relate to the subject matter of this Agreement. No
supplement, amendment or modification of this Agreement shall be binding unless executed in writing by the Parties, unless otherwise provided herein. 

9.3 No Waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any
other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the Party making the waiver. 

9.4 Subject Headings. The subject headings of the Articles and Sections of this Agreement are included for purposes of
convenience only, and shall not affect the construction or interpretation of any of the provisions of this Agreement. 
 9.5
Binding Agreement; No Assignment. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties and their respective legal representatives, successors and assigns. Company may assign this Agreement upon prior
written notice to Practice. Practice may not assign this Agreement nor any rights hereunder, nor may it delegate any of the duties to be performed hereunder without the prior written consent of Company; provided, however, that notwithstanding
the foregoing sentence to the contrary, Practice shall have the right to assign this Agreement to another corporate affiliate of Company upon written notice and shall have the right to subcontract with any other responsible parties, including
specifically, corporate affiliates of Practice, for the performance of various aspects of its obligations hereunder, provided that Practice shall remain fully responsible for the performance of any such subcontractors. 

9.6 Severability. Except as otherwise provided in Section 8.3, in the event any provision of this Agreement
is rendered invalid or unenforceable by the enactment of any applicable statute or ordinance or by any regulation duly promulgated or is made or declared unenforceable by any court of competent jurisdiction, the remainder of this Agreement shall
remain in full force and effect. 
 9.7 Attorneys’ Fees. In the event any attorney is employed by any Party
with regard to any legal action, arbitration or other proceeding brought by any Party for the enforcement of  

  
 8 

 
this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement, then the prevailing Party, whether at trial or
upon appeal, and in addition to any other relief to which the prevailing Party may be granted, shall be entitled to recover from the losing Party all costs, expenses and attorneys’ fees incurred by the prevailing Party in bringing or defending
such action, arbitration or proceeding, and in enforcing any judgment granted therein, all of which costs, expenses and attorneys’ fees shall be deemed to have accrued upon the commencement of such action and shall be paid whether or not such
action is prosecuted to judgment. Any judgment or order entered in such matter shall contain a specific provision providing for the recovery by the prevailing Party of attorneys’ fees, costs and expenses incurred in enforcing such judgment. For
purposes of this Section 9.7, attorneys’ fees shall include, without limitation, fees incurred in the following: post-judgment motions; contempt proceedings; garnishment, levy and debtor and third party examinations; discovery; and
bankruptcy litigation. 
 9.8 Notices. All notices, requests, demands or other communications under this Agreement
shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the Party to whom notice is to be given, or on the third day after mailing if mailed to the Party to whom notice is to be given, by a
recognized overnight carrier service, or by first class mail, registered or certified, postage prepaid, and properly addressed as follows: 
  

			
	TO PRACTICE:	  	San Diego Professional Group, P.C.
		  	731 South Highway 101, Suite 1-E
		  	Solano Beach, California 92075
		  	Attn: Mark A. Calarco, D.O.
		
	TO COMPANY:	  	San Diego Addiction Treatment Center, Inc.
		  	2456 East Street
		  	San Diego, California 92102
		  	Attn.: Chief Executive Officer
		
	WITH COPY TO:	  	
		  	American Addiction Centers, Inc.
		  	115 East Park Drive, Second Floor
		  	Brentwood, Tennessee 37027
		  	Attn: Candance A. Henderson-Grice, Chief Operating Officer
		  	Email: chenderson-grice@contactaac.com
		
		  	American Addiction Centers, Inc.
		  	115 East Park Drive, Second Floor
		  	Brentwood, Tennessee 37027
		  	Attn: Kathryn Sevier Phillips, General Counsel and Secretary
		  	Fax: (615) 691-7130
		  	Email: ksphillips@contactaac.com

 Each Party may change its address indicated above by giving the other Party written notice of the new address
in the manner set forth above. 

  
 9 

 9.9 Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State. All actions, suits, or other proceedings with respect to this Agreement shall be brought only in a court of competent jurisdiction in the State. In any such action, suit, or proceeding, such court
shall have personal jurisdiction over all of the parties hereto, and service of process upon them under any applicable statutes, laws, and rules shall be deemed valid and good. 

9.10 Third Party Rights. This Agreement is entered into by and between the Parties hereto for their sole benefit. There
is no intent by either Party to create or establish third party beneficiary status or rights in any third party to this Agreement and no third party shall have any right to enforce any right or enjoy any benefit created or established by this
Agreement. 
 9.11 No Discrimination. No person shall be excluded from participation in, or be denied benefits
of, or be otherwise subjected to discrimination in the performance of this Agreement or any Addenda on the grounds of disability, age, race, color, religion, sex, national origin or any other classification protected by federal and/or Tennessee
constitutional, statutory and/or regulatory provisions. 
 9.12 Signatory. Each Party warrants that the person
indicated on signatory line to this Agreement has all authority necessary to bind the Party and is the appropriate designated person to sign this Agreement. 

9.13 Counterparts. This Agreement may be signed in multiple counterparts, each of which shall be deemed to be an original
and all of which taken together shall constitute a single instrument. 
 9.14 Drafted Jointly. In the event of
an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of authorship of the
provisions of this Agreement. 
 9.15 Cooperation. The Parties agree to cooperate with each other to resolve promptly
any outstanding financial, administrative or patient care issues upon the termination of this Agreement. Such obligation shall include, without limitation, the provision of patient, resident and/or administrative records, payments or other actions
necessary to conclude the relationship of the Parties. This Section 9.15 shall survive the termination of this Agreement for any reason. Each Party further agrees to cooperate with the other to carry out the purpose and intent of this
Agreement, including without limitation the execution and delivery to the appropriate Party of any further agreements and other documents and the taking of any action as may reasonably be required to effectuate the provisions of this Agreement. 

[Signature Page Follows] 

  
 10 

 IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement on the dates set
forth below, provided that this Agreement is effective as of the Effective Date. 
  

									
	For Company:	 		 	For Practice:
			
	San Diego Addiction Treatment Center, Inc.	 		 	San Diego Professional Group, P.C.
					
	By:	 	 /s/ Michael T. Cartwright
	 		 	By:	 	 /s/ Mark A. Calarco, D.O.

	Name:	 	Michael T. Cartwright	 		 	Name:	 	Mark A. Calarco, D.O.
	Title:	 	Chairman and Chief Executive Officer	 		 	Title:	 	President, Secretary and Chief Financial Officer

  
 11 

 Schedule 2.1 

Practice’s Services 
 Professional
Services 
 During the term of this Agreement, Practice, through its physician shareholder, employees and independent contractors (the “Medical
Providers”), shall provide professional medical services to the patients of Company (the “Patients”). Medical Providers may include doctors of medicine, doctors of osteopathy and mid-level providers including physician
assistants and advanced practice nurses. Practice shall effectively provide all the professional medical services as required by Company for the needs of its Patients. Such professional medical services shall include those service obligations set
forth herein and other related services reasonably requested by Company. 
 Medical Director Services 

During the term of this Agreement, in addition to the professional services described above, Practice shall, unless otherwise agreed to by the parties, provide
a physician who is acceptable to Company, to serve as medical director of Facility (the “Medical Director”) and provide medical management and oversight for matters specific to Facility pursuant to a medical director agreement
between Practice and Medical Director reasonably acceptable to Company (the “Medical Director Agreement”). Practice shall cause Medical Director to furnish those services as set forth in the Medical Director Agreement, in accordance
with the terms thereof. Upon request, Practice shall provide Company with documentation reasonably acceptable to Company supporting Medical Director’s fulfillment of such duties with Company also retaining the right to conduct such audits
thereof as Company determines reasonably necessary to support Company’s payment for such services under this Agreement. 
 Practice shall provide
support, assistance, and work cooperatively with Medical Director who will provide medical management and oversight for Facility. Practice, at the request of Company, shall immediately remove a Medical Director from Facility for cause, as
“cause” is defined in Section 2.3.8 hereof. 
 The term “Medical Provider” as used in this Agreement shall include the
Medical Director, provided that any provision that relates specifically to professional medical services will not apply to the Medical Director to the extent that the Medical Director is providing only administrative and not professional services.

 Schedule 3.1 

Compensation 
 Practice
acknowledges that Practice may sometimes bill separately for the services of Medical Providers, and at other times Company submits global bills for the services of both the Facility and the Medical Providers. In light of the foregoing, Company shall
pay to Practice the fees set forth below for services provided by the Medical Providers at the Facility to the extent that such provider services are not separately billed by Practice. To the extent Practice bills separately for Medical
Provider services, Company shall not be obligated to pay a fee for such services. 
  

			
	 Provider
	  	 Fee

		
	 Physician/Psychologist Clinical Services
	  	$125 - $ 175 per hour*
		
	 Medical Director Services
	  	$ 100 - $ 150 per hour*
		
	 Mid-level Provider Services (PA or NP)
	  	$ 55 - $ 95 per hour*

  

	*	Specific hourly rate within the noted range shall be determined by Company in its reasonable discretion after consultation with Practice, based on the experience level, specialty, certifications, and other
qualifications of the applicable practitioner. 

 If Practice is asked by Company to provide additional practitioner services
at the Facility, Company shall pay to Practice a fee for such services equal to the rate that Practice pays such provider for the services (unless the service is separately billable by Practice). Practice represents and warrants that the
compensation it pays to Medical Providers, and the corresponding fees paid by Company, shall be reasonable and consistent with fair market value. Compensation shall be paid pursuant to Company’s standard payment policies and timing. 

 Schedule 7.2 

HIPAA Business Associate Addendum 

This HIPAA Business Associate Addendum (“Addendum”) amends and is made part of that certain Professional Services Agreement
for Medical Staffing (“Service Agreement”), by and between San Diego Addiction Treatment Center, Inc. (“Entity”) and San Diego Professional Group, P.C. (“Associate”) to the extent that Associate is
acting as a Business Associate of Entity. 
 Entity and Associate agree that the parties incorporate this Addendum into the Service
Agreement in order to comply with the requirements of: the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), the Health Information Technology for Economic and Clinical Health Act (“HITECH”) and
their implementing regulations set forth at 45 C.F.R. Parts 160 and Part 164 (the “HIPAA Rules”); and Federal regulations governing Confidentiality of Alcohol and Drug Abuse Patient Records, 42 C.F.R. Part 2 (“Part 2
Regulations”). To the extent Associate is acting as a Business Associate of Entity pursuant to the Service Agreement, the provisions of this Addendum shall apply, and Associate shall be subject to the penalty provisions of HIPAA as
specified in 45 C.F.R. Part 160. 
 1. Definitions. Capitalized terms not otherwise defined in this Addendum shall have the meaning set forth
in the HIPAA Rules. References to “PHI” mean Protected Health Information maintained, created, received or transmitted by Associate from Entity or on Entity’s behalf. 

2. Uses or Disclosures. Associate will neither use nor disclose PHI except as permitted or required by this Addendum or as Required By Law. To
the extent Associate is to carry out an obligation of Entity under the HIPAA Rules, Associate shall comply with the requirements of the HIPAA Rules that apply to Entity in the performance of such obligation. Without limiting the foregoing, Associate
will not sell PHI or use or disclose PHI for purposes of marketing or fundraising, as defined and proscribed in the HIPAA Rules. Associate is permitted to use and disclose PHI: 

(a) to perform any and all obligations of Associate as described in the Service Agreement, provided that such use or disclosure is consistent
with the terms of Entity’s notice of privacy practices and would not violate the HIPAA Rules or the Part 2 Regulations, if done by Entity directly; 

(b) to perform Data Aggregation services relating to the health care operations of Entity, provided that such services are part of
Associate’s obligations as set forth in the Service Agreement; 
 (c) to create de-identified information in accordance with 45 C.F.R.
§ 164.514(b), provided that such de-identified information may be used and disclosed only consistent with applicable law; and 
 (d) as
necessary for Associate’s proper management and administration and to carry out Associate’s legal responsibilities (collectively “Associate’s Operations”) provided that: any

 
disclosure made for purposes of Associate’s Operations is Required By Law or is made after Associate obtains reasonable assurances, evidenced by a written contract, from the recipient that
the recipient: (i) will hold such PHI in confidence and use or further disclose it only for the purpose for which Associate disclosed it to the recipient or as Required By Law; (ii) will notify Associate of any instance of which the
recipient becomes aware in which the confidentiality of such PHI was breached; (iii) acknowledges in writing that, in receiving PHI, the recipient is fully bound by the Part 2 Regulations; and (iv) agrees to, if necessary, resist in
judicial proceedings any efforts to obtain access to PHI except as permitted by the Part 2 Regulations. Associate shall promptly notify Entity of any disclosures made for purposes of Associate’s Operations. 

In the event Entity notifies Associate of a restriction request that would restrict a use or disclosure otherwise permitted by this Addendum,
Associate shall comply with the terms of the restriction request. 
 3. Safeguards. Associate will use appropriate administrative, technical
and physical safeguards to prevent the use or disclosure of PHI other than as permitted by this Addendum and shall maintain policies and procedures to detect, prevent, and mitigate identity theft based on PHI or information derived from PHI.
Associate will also comply with the provisions of 45 C.F.R. Part 164, Subpart C of the HIPAA Rules with respect to electronic PHI to prevent any use or disclosure of such information other than as provided by this Addendum, which obligation shall
include maintaining safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of electronic PHI. 
 4.
Policies and Training. Associate has policies in place regarding the confidential and secure treatment of PHI in accordance with HIPAA and the Part 2 Regulations. Associate shall require its employees to adhere to such policies and
shall train its employees regarding the requirements of this Addendum and applicable confidentiality and security laws and regulations. 
 5.
Subcontractors. In accordance with 45 C.F.R. § 164.308(b)(2) and 164.502(e)(1)(ii), Associate will ensure that all of its subcontractors that create, receive, maintain or transmit PHI on behalf of Associate agree by written
contract to comply with the same restrictions and conditions that apply to Associate with respect to such PHI, including but not limited to (i) the obligation to safeguard PHI and comply with 45 C.F.R. Part 164, Subpart C; and
(ii) acknowledging in writing that, in receiving PHI, the recipient is fully bound by the Part 2 Regulations, and must agree to, if necessary, resist in judicial proceedings any efforts to obtain access to PHI except as permitted by the Part 2
Regulations. 
 6. Minimum Necessary. Associate represents that the PHI requested, used or disclosed by Associate shall be the minimum amount
necessary to carry out the purposes of the Service Agreement. Associate will limit its uses and disclosures of, and requests for, PHI to the minimum amount of PHI necessary to accomplish the intended purpose of the use, disclosure or request. 

7. Obligations of Entity. Entity shall notify Associate of (i) any limitations in its notice of privacy practices, (ii) any changes
in, or revocation of, permission by an individual to use or disclose PHI, and (iii) any confidential communication request or restriction on the use or disclosure of PHI that Entity has agreed to or with which Entity is required to comply, to
the extent any of the foregoing affect Associate’s use or disclosure of PHI to perform its obligations as described in the Service Agreement. 

 8. Access and Amendment. In accordance with 45 C.F.R. § 164.524, Associate will permit Entity
or, at Entity’s request, an individual (or the individual’s designee) to inspect and obtain copies of any PHI about the individual that is in Associate’s custody or control and that is maintained in a Designated Record Set. If the
requested PHI is maintained electronically, Associate must provide a copy of the PHI in the electronic form and format requested by the individual, if it is readily producible, or, if not, in a readable electronic form and format as agreed to by
Entity and the individual. Associate will notify Entity of any request (including but not limited to subpoenas) that Associate receives for access to PHI that is in Associate’s custody or control within five (5) business days of receipt of
such request. Entity shall be responsible for making determinations about access. Associate will, upon receipt of notice from Entity, promptly amend or permit Entity access to amend any portion of the PHI that is in Associate’s custody or
control so that Entity may meet its amendment obligations under 45 C.F.R. § 164.526. 
 9. Disclosure Accounting. Except for disclosures
excluded from the accounting obligation by the HIPAA Rules and regulations issued pursuant to HITECH, Associate will record for each disclosure that Associate makes of PHI the information necessary for Entity to make an accounting of disclosures
pursuant to the HIPAA Rules. In the event the U.S. Department of Health and Human Services (“HHS”) finalizes regulations requiring Covered Entities to provide access reports, Associate shall also record such information with respect
to electronic PHI held by Associate as would be required under the regulations for Covered Entities beginning on the effective date applicable to Entity. Associate will make information required by this Section 9 available to Entity
promptly upon Entity’s request for the period requested, but for no longer than the six (6) years preceding Entity’s request for the information or such other period required by the HIPAA Rules (except Associate need not have any
information for disclosures occurring before the effective date of any previous HIPAA business associate agreements between the parties or, if none, the effective date of this Addendum). 

10. Inspection of Books and Records. Associate will make its internal practices, books, and records, relating to its use and disclosure of PHI
available upon request to Entity or HHS to determine Entity’s compliance with the HIPAA Rules. 
 11. Reporting. To the extent Associate
becomes aware or discovers any use or disclosure of PHI not permitted by this Addendum, any Security Incident involving electronic PHI, any Breach of Unsecured Protected Health Information or any Red Flag (as defined at 16 C.F.R. § 681.2(b))
related to any individual who is the subject of PHI, Associate shall promptly report such use, disclosure, Security Incident, Breach or Red Flag to Entity. Associate shall mitigate, to the extent practicable, any harmful effect known to it of a
Security Incident, Breach or use or disclosure of PHI by Associate not permitted by this Addendum. Notwithstanding the foregoing, the parties acknowledge and agree that this Section 11 constitutes notice by Associate to Entity of the
ongoing existence and occurrence of attempted but Unsuccessful Security Incidents (as defined below) for which no additional notice to Entity shall be required. “Unsuccessful Security Incidents” shall include, but not be limited to, pings
and other broadcast attacks on Associate’s firewall, port scans, unsuccessful log-on attempts, denials of service and any combination of the above, so long as no such incident results in unauthorized access, use or

 
disclosure of electronic PHI. All reports of Breaches shall be made within ten (10) business days of Associate discovering the Breach and shall comply with and include the information
specified at 45 C.F.R. § 164.410. Associate shall promptly reimburse Entity all reasonable costs incurred by Entity with respect to providing notification of and mitigating a Breach involving Associate, including but not limited to printing,
postage costs and toll-free hotline costs. 
 12. Confidentiality of Alcohol and Drug Abuse Patient Records. Associate: (1) acknowledges
that in receiving, storing, processing, or otherwise dealing with any information from Entity about individuals who are patients of Entity (“Patients”), it is fully bound by the provisions of the Federal regulations governing
Confidentiality of Alcohol and Drug Abuse Patient Records, 42 C.F.R. Part 2; and (2) undertakes to resist in judicial proceedings any effort to obtain access to information pertaining to Patients otherwise than as expressly provided for in the
Part 2 Regulations. 
 13. Term and Termination. This Addendum shall be effective as of the effective date of the Service Agreement and shall
remain in effect until termination of the Service Agreement. Either party may terminate this Addendum and the Service Agreement effective immediately if it determines that the other party has breached a material provision of this Addendum and failed
to cure such breach within thirty (30) days of being notified by the other party of the breach. If the non-breaching party determines that cure is not possible, such party may terminate this Addendum and the Service Agreement effective
immediately upon written notice to other party. 
 Upon termination of this Addendum for any reason, Associate will, if feasible, return to
Entity or securely destroy all PHI maintained by Associate in any form or medium, including all copies of such PHI, at no cost to Entity. Further, Associate shall recover any PHI in the possession of its agents and subcontractors and return to
Entity or securely destroy all such PHI. Notwithstanding the foregoing, Associate shall notify Entity and receive Entity’s written consent prior to destroying any PHI of which Entity does not maintain a duplicate copy. In the event that
Associate determines that returning or destroying any PHI is infeasible, Associate shall promptly notify Entity of the conditions that make return or destruction infeasible. With regard to any PHI that Entity agrees cannot feasibly be returned to
Entity or destroyed, Associate may maintain such PHI but shall continue to abide by the terms and conditions of this Addendum with respect to such PHI and shall limit its further use or disclosure of such PHI to those purposes that make return or
destruction of the PHI infeasible. Associate shall comply with this Section 13 within thirty (30) days of termination of this Addendum. Associate shall provide Entity with written certification of its compliance with this
Section 13 within forty-five (45) days of termination of this Addendum. Upon termination of this Addendum for any reason, all of Associate’s obligations under this Addendum shall survive termination and remain in effect
(a) until Associate has completed the return or destruction of PHI as required by this Section 13 and (b) to the extent Associate retains any PHI pursuant to this Section 13. 

14. General Provisions. In the event that any final regulation or amendment to final regulations is promulgated by HHS or other government
regulatory authority with respect to PHI, this Addendum will automatically be amended to remain in compliance with such regulations, and Associate shall promptly amend its contracts, if any, with subcontractors and agents to conform to the terms of
this Addendum. Any ambiguity in this Addendum shall be resolved to permit Entity to comply with the HIPAA Rules and the Part 2 Regulations. Nothing 

 
in this Addendum shall be construed to create any rights or remedies in any third parties or any agency relationship between the parties. A reference in this Addendum to a section in the HIPAA
Rules or the Part 2 Regulations means the section as in effect or as amended. This Addendum replaces and supersedes and previous business associate agreements between the parties. The terms and conditions of this Addendum override and control any
conflicting term or condition of the Service Agreement. To the extent Associate has limited its liability under the terms of the Service Agreement by a maximum recovery for direct damages, disclaimer against any consequential, indirect or punitive
damages or any other limitation, all limitations shall exclude any damages to Entity arising from Associate’s breach of its obligations under this Addendum. All non-conflicting terms and conditions of the Service Agreement remain in full force
and effect.

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