Document:

Loan Assumption Agreement

 EXHIBIT 10.4 
 Recording Requested By and 
 When Recorded Mail To: 
 GE Life and Annuity Assurance Company 
 707 East Main Street 
 Suite 1300-A 
 Richmond, Virginia 23219-3310 
 Attention: Mr. Peter Smith 
 GELAAC Loan No. 3982 
 LOAN ASSUMPTION AGREEMENT 
 THIS AGREEMENT is dated this 1st day of August, 2005, and is made by GE LIFE AND ANNUITY ASSURANCE COMPANY, a Virginia corporation (“Lender”);
K-5 ASSOCIATES, LLC, a North Carolina limited liability company (“Borrower”); ROBERT S. KADIS and HAROLD L. KADIS (“Guarantors”); and A4 REALTY, LLC, a North Carolina limited liability company (“Purchaser”). 

RECITALS 
 A. Loan
Documents. On or about October 25, 2000, Lender made a loan (“Loan”) to Borrower in the principal sum of Four Million Four Hundred Thousand and No/100 Dollars ($4,400,000.00) evidenced by the following (together with this
Agreement, the “Loan Documents”): 
  

	 	1.	Promissory Note dated October 25, 2000 (“Note”) in the Loan amount. 

  

	 	2.	Deed of Trust, Assignment of Rents and Leases and Security Agreement dated October 25, 2000, recorded with the Wake County Register of Deeds on October 25, 2000, in Book
008715, Page 01964, and re-recorded on November 9, 2000, in Book 8729, Page 2323. 

  

	 	3.	Assignment of Rents and Leases (the “Assignment”) dated October 25, 2000, recorded with the Wake County Register of Deeds on October 25, 2000, in Book 008715,
Page 01998, and re-recorded on November 9, 2000, in Book 008729, Page 2359. 

  

	 	4.	UCC Financing Statement filed with the North Carolina Secretary of State under Document No. 00-007582. 

  

	 	5.	Unconditional Guaranty (the “Guaranty”) dated October 25, 2000, executed by Guarantors. 

  

	 	6.	An Indemnity regarding environmental matters dated October 25, 2000. 

 B. Permitted Transfer. Paragraph 4.1 of the Deed of Trust prohibits the transfer of the Property
without the prior written consent of Lender. 
 C. Request for Consent to Transfer. Borrower has asked Lender to consent to the
transfer of the Property to Purchaser and Purchaser’s assumption of the Loan pursuant to provision 4.2 of the Deed of Trust. Lender is willing to do so upon the terms below. 
 THEREFORE, the parties agree as follows: 
 1. Purchaser’s Acknowledgement of Loan Documents. Purchaser acknowledges that it is fully familiar with the terms of the Loan Documents and that they express the entire understanding of the parties regarding the Loan.

 2. Purchaser’s Assumption of Loan Obligations. Purchaser assumes and agrees to perform all of Borrower’s obligations
under the Loan Documents. However, Purchaser shall be personally liable on the Note only to the extent that Borrower has been liable; that is, the extent of the personal liability of Purchaser shall at all times be the same as if Purchaser had been
the original maker of the Note without the release referred to in the following paragraph 3. 
 3. Borrower’s and Guarantors’
Liability. Borrower and Guarantors are hereby relieved of personal liability for acts or occurrences arising out of matters occurring after the date hereof, and, as to matters where the time when such act or occurrence took place is in dispute,
the Borrower and Guarantors shall have the burden of proof that such act or occurrence took place subsequent to the date hereof. 
 4.
Liability of Borrower and Purchaser. Purchaser and Borrower shall be jointly and severally liable under the Note and all other Loan Documents to the extent provided therein but subject to the terms and limitations in this Agreement.

 5. Loan Modification. The Loan is modified as provided herein, and the Deed of Trust is further modified as follows: 
 Trustor Name(s); Matters Affecting Financing Statement Filings. At the request of Beneficiary, Trustor shall execute a certificate in form
satisfactory to Beneficiary listing the trade-names or fictitious business names under which Trustor intends to operate the Property or any business located thereon and representing and warranting that Trustor does business under no other trade
names or fictitious business names with respect to the Property. Trustor will not change any of the following without notifying the Beneficiary of such change in writing at least thirty (30) days prior to the effective date of such change and
without first obtaining the prior written consent of the Beneficiary: 
  

	 	(a)	Trustor’s name or identity (including its trade name or names); 

  

	 	(b)	if Trustor is an individual, Trustor’s principal residence; 

  

	 	(c)	if Trustor is an organization, Trustor’s corporate, partnership or other structure; 

  

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	 	(d)	if Trustor is an organization, Trustor’s jurisdiction of organization (i.e., the jurisdiction [State] under whose law the Trustor is organized); or 

  

	 	(e)	if Trustor is an organization, Trustor’s place of business (if Trustor has only one place of business) or Trustor’s chief executive office (if Trustor has more than one
place of business); 

 Upon any change in the matters referred to above (if permitted hereunder), Trustor will, upon request of
Beneficiary, execute any financing statement amendments, additional financing statements and other documents required by Beneficiary to reflect such change. 
 This Deed of Trust shall be effective as a Financing Statement filed as a fixture filing with respect to all goods which are or are to become fixtures related to the Property. The information below is provided in
connection with the filing of this instrument as a Financing Statement, and the Trustor hereby represents and warrants it to be true and correct as of the date of this instrument: 
 The name and address of the record owner of the real estate described in this instrument is: 
 A4 Realty, LLC, a North Carolina limited liability company 
 5501 Dillard Drive 
 Cary, North Carolina 27511 
 Attention: Ms. Cindy Pittman 
  

	 	(b)	the name, mailing address and, if Debtor is not an individual, type of organization, jurisdiction or organization and organizational number (if any) of the Debtor is:

 A4 Realty, LLC, a North Carolina limited liability company 
 5501 Dillard Drive 
 Cary, North Carolina
27511 
 Attention: Ms. Cindy Pittman 
 Organizational Number: NC-787453 
  

	 	(c)	The name and address of the Secured Party is: 

 GE Life and
Annuity Assurance Company, a Virginia corporation 
 707 East Main Street 
 Suite 1300-A 
 Richmond, Virginia 23219-3310

 Trustor specifically authorizes Beneficiary to file such Uniform Commercial Code Financing Statements before, on or after the date hereof,
and to file such amendments and continuation statements, all as Beneficiary determines necessary or desirable from time to time to perfect or continue the lien of Lender’s security interest in the Property. 
  

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 6. Consent to Conveyance. 
  

	 	(a)	Lender consents to Borrower’s transfer of the Property to Purchaser and agrees that the transfer will not constitute a default under the Deed of Trust.

  

	 	(b)	Borrower and Purchaser agree that Lender’s consent to transfer of the Property does not constitute a waiver of the provisions of paragraph 4.1 of the Deed of Trust and that,
upon closing of the transfer of the Property to Purchaser, all further sales, conveyances, encumbrances and transfers of the Property will be subject to paragraph 4.1 of the Deed of Trust. No subsequent transfer shall be permitted pursuant to
paragraph 4.2 of the Deed of Trust, and said paragraph 4.2 is hereby deleted from Article 4. of the Deed of Trust and from the corresponding restatement of the same in the Note. 

 7. Assumption Fee, Lender’s Expenses. An Assumption Fee in the amount of Thirty-Five Thousand Three Hundred Eighteen and 85/100 Dollars
($35,318.85) must be paid to the Lender in consideration of Lender’s consent to transfer of the Property to Purchaser, and the Lender must also be paid a Loan Event Fee in the amount of Three Thousand Five Hundred and No/100 Dollars ($3,500.00)
and all of Lender’s legal and administrative expenses in connection with this transfer and Agreement as a condition to such Agreement. 
 8. Notice to Purchaser. Purchaser requests that all notices under the Loan Documents be given to the address indicated above in this Agreement. 
 9. Attorneys’ Fees. If any suit or action is brought by Lender to enforce or interpret the terms of this Agreement, the Transferee shall pay the Lender’s costs and expenses, including reasonable
attorneys’ fees, incurred in such suit or action. Such fees shall include, without limitation, attorneys’ fees incurred at or in preparation for any trial, appeal or review or in any bankruptcy proceeding. 
 10. Conditions. This Agreement is effective only when all of the following conditions are satisfied: 
  

	 	(a)	A deed conveying to Purchaser fee title to the Property has been recorded in the land records of Wake County, North Carolina. 

  

	 	(b)	This Agreement has been duly executed by all parties in the manner indicated and has been recorded in the land records of Wake County, North Carolina. 

  

	 	(c)	UCC Amendment Statements naming Purchaser as debtor and in a form reasonably acceptable to Lender have been filed with the Secretary of State of North Carolina.

  

	 	(d)	Purchaser and its sole member have executed and delivered to the Lender an Environmental Indemnity with respect to environmental matters acceptable to Lender, in addition to that
previously executed by the Borrower and Guarantors. 

  

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	 	(e)	Purchaser’s sole member has executed and delivered to the Lender an Unconditional Guaranty of the Loan. 

  

	 	(f)	Borrower or Purchaser has paid all of Lender’s expenses and fees arising out of this transfer and Agreement, including the Assumption Fee, Loan Event Fee, and title, title
endorsement, recording, attorney’s fees, and other out-of-pocket costs. 

 11. Guaranty and Environmental
Indemnity. By their signatures, the Guarantors agree that the Guaranty and Environmental Indemnity are modified to reflect the foregoing terms, that the Guaranty and Environmental Indemnity remain in effect, and that this Agreement does not
impair the validity of the Guaranty or Indemnity or Guarantors’ liability under the Guaranty or Indemnity except as referred to in this Agreement. 
 12. Miscellaneous. 
  

	 	(a)	The principal amount due on the Loan as of July 1, 2005, after application of the payment due on that date was Three Million Five Hundred Thirty-One Thousand Eight Hundred
Eighty-Four and 60/100 Dollars ($3,531,884.60). 

  

	 	(b)	Borrower represents and warrants to Lender that it has no defenses or claims of offset to payment of the Loan or enforcement of the Loan Documents or any other defenses or offsets
with respect of Lender’s lending of funds to Borrower. As further consideration for this Agreement, Borrower and Purchaser release Lender from any and all liability, known or unknown, arising out of any act or circumstance to date with respect
to the Loan or any collateral for repayment of the Loan. 

  

	 	(c)	Each person included within Borrower and Purchaser warrants to Lender that it has full right, power and authority to enter into this Agreement and to perform all its obligations,
and that all information and materials submitted to Lender in connection with the request for this modification contain no material misstatement or misrepresentation nor omit to state any material fact or circumstance. 

  

	 	(d)	This document constitutes the entire agreement among the parties with respect to the assumption of the Loan and shall not be amended, modified or terminated except by a writing
signed by the party to be charged therewith. 

  

	 	(e)	Except as provided in this Agreement, the terms of the Loan Documents remain in full effect and are ratified. This Agreement is not intended to and shall not be construed to impair
the validity, priority or enforceability of the Deed of Trust or the other Loan Documents. 

  

	 	(f)	This Agreement is binding upon and shall inure to the benefit of the parties and their respective heirs, personal representatives, successors and assigns. 

 

	 	(g)	This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one instrument.

  

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	 	(h)	This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina. 

 DATED the day and year first above written. 
  

			
	 “BORROWER”

	
	 K-5 ASSOCIATES, LLC,
 a North Carolina limited liability company

		
	 By:
	 	 /s/ Harold L. Kadis

		 	 HAROLD L. KADIS

	 Its:
	 	 Manager

 NORTH CAROLINA,
                                        
COUNTY. 
 I, a Notary Public of the County and State aforesaid, certify that Harold L. Kadis, personally came before me this day and
acknowledged that he is a member of K-5 Associates, LLC, a North Carolina limited liability company, and that by authority duly given and as the act of the limited liability company, the foregoing instrument was signed in its name by its member, as
an act of, and for and on behalf of, said limited liability company. Witness my hand and official stamp or seal, this              day of
                    , 2005. 
  

					
			
	 My commission expires:
	 		 	   
	   	 		 	 Notary Public

		 		 	

  

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	 “PURCHASER”

	
	 A4 REALTY, LLC,
 a North Carolina limited liability company

		
	By:	 	 /s/ Cindy Pittman

		 	 CINDY PITTMAN

	 Its:
	 	 Manager

  

	NORTH	CAROLINA,                      COUNTY. 

 I, a Notary Public of the County and State aforesaid, certify that Cindy Pittman, personally came before me this day and acknowledged that she is the
Manager of A4 Realty, LLC, a North Carolina limited liability company, and that by authority duly given and as the act of the limited liability company, the foregoing instrument was signed in its name by its Manager, as an act of, and for and on
behalf of, said limited liability company. Witness my hand and official stamp or seal, this              day of
                    , 2005. 
  

					
			
	 My commission expires:
	 		 	   
	   	 		 	 Notary Public

		 		 	

  

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		 		 	 “LENDER”

			
	 ATTEST:
	 		 	GE LIFE AND ANNUITY ASSURANCE COMPANY, a Virginia corporation
					
	  	 	 Secretary
	 		 	 By:
	 	 /s/ [Illegible]

					
		 		 		 	 Its:
	 	 Investment Officer

                                       
  ,
                                        
COUNTY 
 I, a Notary Public of the County and State aforesaid, certify that
                             personally came before me this day and acknowledged that (s)he is an
Investment Officer of GE Life and Annuity Assurance Company, a Virginia corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by
                             as its investment officer, sealed with its corporate seal and attested by
its                              Secretary as an act of, and for and on behalf of, said corporation.
Witness my hand and official stamp or seal, this              day of
                    , 2005. 
  

					
			
	 My commission expires:
	 		 	   
	   	 		 	 Notary Public

		 		 	

  

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	 “GUARANTORS”
	 	
		
	 /s/ Robert S. Kadis
	 	 (SEAL)

	 ROBERT S. KADIS
	 	
		
	 /s/ Harold L. Kadis
	 	 (SEAL)

	 HAROLD L. KADIS
	 	

	

  

	NORTH	CAROLINA,                      COUNTY. 

 I, a Notary Public, do hereby certify that Robert S. Kadis personally appeared before me this day and acknowledged the due execution of the foregoing instrument. Witness
my hand and official stamp or seal, this              day of
                    , 2005. 
  

					
			
	 My commission expires:
	 		 	   
	   	 		 	 Notary Public

		 		 	

  

	NORTH	CAROLINA,                      COUNTY. 

 I, a Notary Public, do hereby certify that Harold L. Kadis personally appeared before me this day and acknowledged the due execution of the foregoing instrument. Witness
my hand and official stamp or seal, this              day of
                    , 2005. 
  

					
			
	 My commission expires:
	 		 	   
	   	 		 	 Notary Public

		 		 	

 THIS DOCUMENT DRAFTED BY: 
 Duane L. Paulson 
 BEST & FLANAGAN LLP 
 225 South Sixth Street 
 Suite 4000 
 Minneapolis, Minnesota 55402 
 (612) 349-5695 
  

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 EXHIBIT A 
 TO  
 LOAN ASSUMPTION {AND MODIFICATION} AGREEMENT 
 LEGAL DESCRIPTION 
 The Property which is
subject of this Agreement is situated in the County of Wake, State of North Carolina, and is legally described as follows: 
 Being all of that certain tract
of land containing 5.562+/- acres designated as Lot 8R shown on plat of survey entitled “Recombination Map/CROSSROADS II”, prepared by Murphy Hobson Sacks, dated October, 1995, and recorded in Book of Maps 1995, Page 1742, in the Wake
County, North Carolina, Public Registry, reference to which is hereby made for a more particular description, said real property located in Swift Creek Township, Wake County, North Carolina. 
 TOGETHER WITH appurtenant easement rights contained in Restrictive Covenants recorded in Book 3742, Page 196, Wake County Registry.Unconditional Guaranty

 EXHIBIT 10.5 
 GELAAC Loan No. 3982 
 UNCONDITIONAL GUARANTY 
 THIS GUARANTY is made this 1st day of August, 2005, by A4 HEALTH SYSTEMS, INC., a North Carolina corporation (“Guarantor”) to and for the benefit of GE LIFE AND ANNUITY ASSURANCE COMPANY, a Virginia corporation (“Lender”). 
 BACKGROUND 
 A. A4 REALTY, LLC, a
North Carolina limited liability company (“Borrower”, has applied to Lender to assume a loan (“Loan”) in the original principal amount of Four Million Four Hundred Thousand and No/100 Dollars ($4,400,000.00). The Loan is
evidenced by a Promissory Note (the “Note”) in the loan amount and is secured by a Deed of Trust, Assignment of Rents and Leases and Security Agreement (the “Deed of Trust”) on real property located in Wake County, North
Carolina, commonly described as 5501 Dillard Road, Cary, North Carolina 27511-9234. 
 B. The Note, the Deed of Trust and any other documents
executed in connection with the Loan, other than the Environmental Indemnity of even date, are referred to as the “Loan Documents.” 
 C. The assumption of the Loan is conditioned upon Guarantor’s execution and delivery to Lender of this Guaranty. 
 NOW,
THEREFORE, in consideration of benefits to Guarantor from Borrower, the receipt and sufficiency of which are hereby acknowledged by Guarantor, and to induce Lender to make the Loan to Borrower, Guarantor agrees as follows: 
  

	1.	Unconditional Guaranty of Payment. 

  

	 	a.	Guarantor unconditionally, absolutely and irrevocably guarantees the due and punctual payment of the principal and interest of the Note and any other moneys due or which may become
due under the Note, the Deed of Trust and any other documents executed in connection with the Loan (collectively the “Loan Documents”), or any of them, and the due and punctual performance and observance by Borrower of all of the other
terms, covenants and conditions of the Loan Documents, whether according to the present terms of any of those Documents or at any earlier or accelerated date or dates as provided therein, or pursuant to any extension of time, or any change or
changes in the terms, covenants and conditions of the Loan Documents hereafter made or granted. All such principal, interest and other moneys and the performance and observance by Borrower of all such other terms, covenants and conditions are
hereinafter collectively referred to as the “Indebtedness.” 

	2.	Acknowledgements, Representations and Warranties. 

  

	 	a.	Guarantor acknowledges and agrees that: 

  

	 	(i)	Guarantor either has reviewed, or has had an opportunity to review, the Loan Documents, and is otherwise fully familiar with the terms of the Loan; 

  

	 	(ii)	This Guaranty constitutes an obligation to Lender which is separate and distinct from the obligation of Borrower to Lender under the Loan Documents; and 

  

	 	(iii)	Guarantor is signing this Guaranty as an inducement to Lender to make the Loan, and further acknowledges that Lender would not make the Loan without this Guaranty.

  

	 	b.	Guarantor represents and warrants to Lender that Guarantor is either financially interested in Borrower or will receive other benefits from Borrower as a result of this Guaranty.

  

	3.	Waivers by Guarantor and Rights of Lender. Guarantor agrees that Lender may deal exclusively with Borrower in all matters relating to the Loan without notice to or the
approval of Guarantor. It is intended that Guarantor shall remain unconditionally, absolutely and irrevocably liable hereunder for payment and performance of the Indebtedness regardless of any act or omission which might otherwise directly or
indirectly result, by operation of law or otherwise, in the discharge or release in whole or in part of Borrower, Guarantor or any other person, or the discharge, release or impairment of any collateral (the “Collateral”) now or hereafter
held as security for any of the obligations under the Loan Documents or this Guaranty. Without limiting the generality of the foregoing, Guarantor hereby waives the following and agrees that Lender may do or fail to do any of the following one or
more times, without notice to or the approval of Guarantor, all without diminishing, altering or otherwise affecting the unconditional, absolute and irrevocable liability of Guarantor hereunder: 

  

	 	a.	Guarantor waives notice of Lender’s acceptance of this Guaranty; 

  

	 	b.	Guarantor waives notice of Lender’s advances of Loan funds, extension of credit to Borrower and any payment of obligations of Borrower; 

  

	 	c.	Guarantor waives notice of default under the Loan Documents; 

  

	 	d.	Lender may extend, renew, accelerate or otherwise change the time for payment and performance of any of Borrower’s obligations under the Loan Documents and may otherwise modify
and change the terms, conditions and covenants of the Loan Documents, including without limitation increase or decrease of the rate of interest on the Loan, provided, however, that nothing in this clause (d) is intended to grant Lender the
right to make any such modification of change without the approval of Borrower unless Lender has the right to do so without Borrower’s approval under the Loan Documents or as a matter of law; 

  

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	 	e.	Lender may release Borrower, any guarantor or any other person now or hereafter having any liability under the Loan Documents; 

  

	 	f.	Lender may take and hold Collateral for payment and performance of the Indebtedness, and may release, surrender, substitute, take additional, or exchange, any such Collateral Lender
now holds or may later acquire; 

  

	 	g.	Lender does not have to marshall assets and may direct the order or manner of sale of the Collateral as Lender in its discretion may determine; 

  

	 	h.	Lender may apply any money or Collateral to the repayment of any obligations due to Lender under the Loan Documents in any order Lender in its discretion may determine.

  

	 	i.	Lender may forbear from pursuing Borrower, or any other guarantor or any other person, or forbear from foreclosing or otherwise realizing upon any Collateral or other guaranty;

  

	 	j.	Lender may impair or fail to perfect a security interest in any Collateral; 

  

	 	k.	Lender may sell Collateral in any manner Lender in its discretion may determine, without notice to Guarantor and whether or not such sale is commercially reasonable;

  

	 	l.	Guarantor waives any defense arising out of the absence, impairment, or loss of any or all rights of recourse, reimbursement, contribution, subrogation or any other right or remedy
of Guarantor against Borrower, or any other guarantor, or any other person to recover amounts which Guarantor is obligated to pay under this Guaranty; 

  

	 	m.	Guarantor waives any defense based upon election of remedies and any anti-deficiency statute, it being intended that this Guaranty shall survive any and all realization upon
Collateral. Such waiver shall include without limitation any defense that a foreclosure of Collateral, whether judicial or nonjudicial, discharged Guarantor’s obligations under this Guaranty; 

  

	 	n.	Guarantor waives any defense arising by reason of any invalidity, ineffectiveness or unenforceability of all or any portion of the Loan Documents or on the basis of any other
defense (other than full payment in cash of any monetary obligation or full performance of any other obligation) available to Borrower, any other guarantor or any other person; 

  

	 	o.	Guarantor waives any defense arising out of lack of diligence or out of delay in enforcement, collection or realization under the Loan Documents; 

  

	 	p.	Guarantor waives demand for payment, demand for performance, notice of non-payment, notice of non-performance, presentment, protest, notice of dishonor, and indulgences and notices
of every other kind; and 

  

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	 	q.	Guarantor hereby waives (i) any defense arising because of Lender’s election, in any proceeding instituted under the Federal Bankruptcy Code, of any application of
Section 1111(b)(2) of the Federal Bankruptcy Code, and (ii) any defense based on any borrowing or grant of a security interest under Section 364 of the Federal Bankruptcy Code. 

  

	4.	Lender’s Right not to Proceed Against Borrower, Other Person or Collateral; Lender’s Remedies. This Guaranty may be enforced against Guarantor without attempting to
collect (or without exhausting its efforts to collect) from Borrower, any other guarantor or any other person who may be liable for the Indebtedness, and without attempting to enforce (or without exhausting its efforts to enforce) Lender’s
rights in any Collateral. Lender may exercise its remedies available under this Guaranty and the Loan Documents and available at law and in equity in such order as Lender in its discretion may determine. Lender may join Guarantor in any suit in
connection with the Loan Documents or may proceed against Guarantor in a separate action. If suit, sale, foreclosure or other remedy is availed of, only the net proceeds therefrom after deducting all charges and expenses of any kind and nature
whatsoever, shall be applied to the reduction of the Indebtedness, and Lender shall not be required to institute or prosecute proceedings to recover any deficiency as a condition of payment under or enforcement of this Guaranty. At any sale of
Collateral, Lender may, at its discretion, purchase all or any part of such Collateral and apply against the amount bid therefore an equal amount of the Indebtedness. 

  

	5.	Bankruptcy and Assignment of Rights. Guarantor’s obligation to make payment under the terms of this Guaranty shall not be impaired, modified, changed, released or
limited in any manner by any impairment, modification, change, release, defense or limitation of the liability of Borrower or of a receiver, trustee, debtor in possession or estate under any bankruptcy, receivership or insolvency proceeding. If any
payment of the Indebtedness made by Borrower is reclaimed in a bankruptcy or receivership proceeding, Guarantor shall pay to Lender the dollar amount of the amount reclaimed. Guarantor hereby assigns to Lender all rights Guarantor may have in any
proceeding involving Borrower under any federal bankruptcy act or state receivership proceedings, whether or not such rights relate to this Guaranty. Such assignment shall not diminish, alter or otherwise affect Guarantor’s liability under this
Guaranty. 

  

	6.	Guarantor’s Duty to Keep Informed of Borrower’s and Others’ Financial Condition. Guarantor is now adequately informed of Borrower’s financial condition.
Guarantor has established adequate means of obtaining, and will obtain from Borrower in the future, all financial and other information regarding Borrower, any other guarantor, any other person and the Loan as is deemed appropriate by Guarantor.
Lender shall have no obligation, now or in the future, to provide any such information to Guarantor. 

  

	7.	 Survival of Claims. Guarantor acknowledges that, to the extent permitted by law, certain obligations of Borrower under the Loan Documents, including with
limitation indemnity obligations relating to hazardous substances, shall survive payment of the Indebtedness and foreclosure of Collateral. Guarantor covenants and agrees that, to the extent permitted by law, and subject to the limitations of
paragraph 1 above, Guarantor’s 

  

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guaranty of such obligations of Borrower shall also survive payment of the Indebtedness and foreclosure of Collateral. 

  

	8.	Waiver of Right of Subrogation. Until the Indebtedness shall have been paid and performed in full, Guarantor shall have no right of subrogation, and Guarantor waives any
right to enforce any remedy which Lender now has or may hereafter have against Borrower, any other guarantor or any other person, and waive any benefit of, and any right to participate in, any of the Collateral. 

  

	9.	Subordination of Debt. Any debt of Borrower now or hereafter held by Guarantor is hereby subordinated to the Indebtedness, and such debt, if Lender so requests, shall be
collected, enforced and received by Guarantor as trustee for Lender and be paid over to Lender on account of the Indebtedness, but without reduction or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty.

  

	10.	Attorneys’ Fees and Collection Expenses. Guarantor agrees to reimburse Lender on demand for all fees and other costs and expenses incurred by Lender in collecting,
enforcing or defending this Guaranty, together with interest thereon from date of disbursement at the default rate of interest stated in the Note. Such fees, costs and expenses shall include those incurred with or without suit and in any trial, any
appeal therefrom or review thereof, any proceedings under any present or future federal bankruptcy or state receivership proceeding and any post-judgment collection proceedings. 

  

	11.	Payment of Loan; Effect of Bankruptcy. Except as otherwise provided in paragraphs 3 and 7 above, this Guaranty shall terminate upon payment and performance in full of the
Indebtedness; provided, however, that it shall be automatically reinstated if any payment is reclaimed in a bankruptcy or receivership proceeding, until Guarantor pays Lender the amount reclaimed or the amount is otherwise paid to Lender and is not
subject to further reclamation. 

  

	12.	Binding Effect. This Guaranty shall be binding upon and enforceable against Guarantor, Guarantor’s legal representatives, heirs, successors and assigns, and shall inure
to the benefit of and may be enforced by Lender and Lender’s successors and assigns. 

  

	13.	Assignment. Lender may assign the Loan Documents and this Guaranty, or any of them, in whole or in part, and may grant participations therein, without notice to Guarantor and
without affecting Guarantor’s liability under this Guaranty. 

  

	14.	Construction. Unless some other meaning and intent is apparent from the context, the plural shall include the singular and vice versa, and masculine, feminine and neuter
words shall be used interchangeably. 

  

	15.	Governing Law; Jurisdiction. This Guaranty shall be governed by and construed according to the laws of the State of North Carolina. Guarantor consents to the jurisdiction of
the courts of the State of North Carolina. 

  

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	16.	Joint and Several Liability; Independent Obligations. The obligations under this Guaranty of all persons included within the term “Guarantor” are joint and several.
The obligations of each Guarantor are independent of those of Borrower, any other guarantor and any other person, and a separate action or actions may be brought and prosecuted against Guarantor, or any of them, whether action is brought against any
other Guarantor, Borrower or any other person. 

  

	17.	Entire Agreement; Modifications. This agreement constitutes the entire understanding between Lender and Guarantor and no course of prior dealing between the parties, no usage
of trade, and no parol or extrinsic evidence of any nature shall be used to supplement or modify the terms of this Guaranty. This Guaranty may be changed, modified or supplemented only through a writing signed by Guarantor and Lender.

  

	18.	Invalid Provisions. If any provision of this Guaranty is invalid, illegal or unenforceable, such provision shall be considered severed from the rest of this Guaranty and the
remaining provisions shall continue in full force and effect as if the invalid provision had not been included. 

  

	19.	Counterparts. This Guaranty may be executed in counterpart originals. 

  

			
	 A4 HEALTH SYSTEMS, INC.,
 a North Carolina Corporation

		
	By:	 	 /s/ John P. McConnell

		 	 JOHN P. McCONNELL

	 Its:
	 	 Chief Executive Officer

  

 6

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