Document:

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                                                                   EXHIBIT 10.27

                           PURCHASE AND SALE AGREEMENT

                                  BY AND AMONG

                         MPT OPERATING PARTNERSHIP, L.P.

                             MPT OF VICTORVILLE, LLC

                     (COLLECTIVELY, THE "PURCHASER PARTIES")

                                       AND

                          PRIME A INVESTMENTS, L.L.C.,

                       DESERT VALLEY HEALTH SYSTEM, INC.,

                          DESERT VALLEY HOSPITAL, INC.,

                                       AND

                        DESERT VALLEY MEDICAL GROUP, INC.

                      (COLLECTIVELY, THE "SELLER PARTIES")

                          DATED AS OF FEBRUARY 28, 2005
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                                TABLE OF CONTENTS

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<S>                                                                                 <C>
ARTICLE I DEFINED TERMS..........................................................    1

   SECTION 1.1.  Certain Defined Terms...........................................    1
   SECTION 1.2.  Interpretation; Terms Generally.................................    8

ARTICLE II PURCHASE AND SALE OF ASSETS, ASSUMPTION OF LIABILITIES................    9

   SECTION 2.1.  Purchase and Sale of Assets.....................................    9
   SECTION 2.2.  Excluded Liabilities............................................    9
   SECTION 2.3.  Special Purpose Entity..........................................   10

ARTICLE III PURCHASE PRICE.......................................................   10

   SECTION 3.1.  Purchase Price..................................................   10
   SECTION 3.2.  Taxes, Rentals, Utilities.......................................   10
   SECTION 3.3.  Allocation of Purchase Price....................................   10

ARTICLE IV REPRESENTATIONS, WARRANTIES AND COVENANTS  OF THE SELLER PARTIES......   10

   SECTION 4.1.  Organization....................................................   10
   SECTION 4.2.  Authorization and Enforceability................................   11
   SECTION 4.3.  Absence of Conflicts............................................   11
   SECTION 4.4.  Consents and Approvals..........................................   11
   SECTION 4.5.  Financial Statements............................................   12
   SECTION 4.6.  Accounts Receivable.............................................   12
   SECTION 4.7.  No Undisclosed Liabilities......................................   12
   SECTION 4.8.  Absence of Changes..............................................   13
   SECTION 4.9.  Licenses........................................................   14
   SECTION 4.10. Accreditation; Medicare and Medi-Cal; Third Party Payors........   14
   SECTION 4.11. HIPAA Compliance................................................   15
   SECTION 4.12. Healthcare Regulatory Matters...................................   15
   SECTION 4.13. Taxes...........................................................   17
   SECTION 4.14. Good Title to Assets............................................   17
   SECTION 4.15. Title and Condition of the Real Property........................   17
   SECTION 4.16. Condition of Personal Property..................................   19
   SECTION 4.17. Compliance with Environmental Laws..............................   20
   SECTION 4.18. Insurance.......................................................   21
   SECTION 4.19. Litigation......................................................   21
   SECTION 4.20. Contracts, Obligations and Commitments..........................   22
   SECTION 4.21. Intangible Property.............................................   22
   SECTION 4.22. Employees and Employee Relations................................   22
   SECTION 4.23. Compliance with Law.............................................   23
   SECTION 4.24. Hill-Burton Obligations.........................................   24
   SECTION 4.25. Medical Staff Matters...........................................   24
   SECTION 4.26. Brokers.........................................................   24
   SECTION 4.27. Records.........................................................   24
   SECTION 4.28. Representations Complete........................................   24

ARTICLE V REPRESENTATIONS AND WARRANTIES BY THE PURCHASER PARTIES................   25

   SECTION 5.1.  Organization....................................................   25
   SECTION 5.2.  Authorization; Enforcement, Absence of Conflicts................   25
   SECTION 5.3.  Binding Agreement...............................................   25
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                                       i
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<S>                                                                                 <C>
   SECTION 5.4.  Litigation......................................................   25
   SECTION 5.5.  Brokers.........................................................   26
   SECTION 5.6.  Compliance with Law.............................................   26

ARTICLE VI TITLE AND SURVEY......................................................   26

   SECTION 6.1.  Survey..........................................................   26
   SECTION 6.2.  Title Insurance.................................................   26

ARTICLE VII PRE-CLOSING COVENANTS................................................   27

   SECTION 7.1.  No Shop.........................................................   27
   SECTION 7.2.  Access; Confidentiality.........................................   27
   SECTION 7.3.  Schedule Updates................................................   28
   SECTION 7.4.  Conduct of Business by the Seller Parties Pending the Closing...   29
   SECTION 7.5.  Cooperation.....................................................   30
   SECTION 7.6.  HCP Purchase....................................................   30
   SECTION 7.7.  Regulatory and other Authorizations, Notices and Consents.......   30
   SECTION 7.8.  Mutual Covenants................................................   31
   SECTION 7.9.  Public Announcements............................................   31

ARTICLE VIII CLOSING CONDITIONS..................................................   31

   SECTION 8.1.  Conditions to the Obligations of the Seller Parties.............   31
   SECTION 8.2.  Conditions to the Obligations of the Purchaser Parties..........   32

ARTICLE IX CLOSING...............................................................   33

   SECTION 9.1.  Closing Date....................................................   33
   SECTION 9.2.  Seller Parties' Closing Date Deliverables.......................   33
   SECTION 9.3.  Purchaser Parties' Closing Date Deliverables....................   34

ARTICLE X TERMINATION............................................................   35

   SECTION 10.1. Termination.....................................................   35
   SECTION 10.2. Notice and Effect...............................................   35

ARTICLE XI CERTAIN POST-CLOSING COVENANTS........................................   36

   SECTION 11.1. Post-Closing Access to Information..............................   36
   SECTION 11.2. Prem Reddy Employment Agreement.................................   36

ARTICLE XII INDEMNIFICATION......................................................   36

   SECTION 12.1. Seller Parties Agreement to Indemnify...........................   36
   SECTION 12.2. The Purchaser Parties' Agreement to Indemnify...................   37
   SECTION 12.3. Notification and Defense of Claims..............................   37
   SECTION 12.4. Investigations..................................................   39
   SECTION 12.5. Treatment of Indemnification Payments...........................   39
   SECTION 12.6. Exclusive Remedy................................................   39

ARTICLE XIII DISPUTE RESOLUTION..................................................   39

   SECTION 13.1. GOVERNING LAW, JURISDICTION AND VENUE...........................   39
</TABLE>
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<S>                                                                                 <C>
ARTICLE XIV MISCELLANEOUS........................................................   40

   SECTION 14.1. Assignment......................................................   40
   SECTION 14.2. Notice..........................................................   40
   SECTION 14.3. Calculation of Time Period......................................   41
   SECTION 14.4. Captions........................................................   41
   SECTION 14.5. Entire Agreement; Modification..................................   41
   SECTION 14.6. Schedules and Exhibits..........................................   41
   SECTION 14.7. Further Assurances..............................................   41
   SECTION 14.8. Counterparts....................................................   41
   SECTION 14.9. Expenses........................................................   41
   SECTION 14.10.Syndication.....................................................   42
   SECTION 14.11.Securities Offering and Filings.................................   42
   SECTION 14.12.Binding Effect..................................................   42
</TABLE>
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                           PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made and entered into as
of February 28, 2005 by and among MPT OPERATING PARTNERSHIP, L.P., a Delaware
limited partnership ("MPT"), MPT OF VICTORVILLE, LLC, a Delaware limited
liability company, (the "Acquisition Sub") (MPT and the Acquisition Sub being
herein referred to, collectively, as the "Purchaser Parties"); and PRIME A
INVESTMENTS, L.L.C., a Delaware limited liability company ("Prime"), DESERT
VALLEY HEALTH SYSTEM, INC., a Delaware corporation ("Desert Valley Parent"),
DESERT VALLEY HOSPITAL, INC., a California corporation ("Desert Valley
Operator"), and DESERT VALLEY MEDICAL GROUP, INC., a California corporation
(Prime, Desert Valley Parent, Desert Valley Operator and Desert Valley Medical
Group, Inc., being collectively referred to herein as the "Seller Parties").

                                   WITNESSETH:

WHEREAS, Desert Valley Operator is the operator of that certain general acute
care hospital (the "Hospital") facility and incorporated medical office building
(the "MOB") located in the Victorville, California area;

WHEREAS, Desert Valley Operator is a party to that certain Amended and Restated
Lease with AHE of California, Inc. (AHE of California, Inc., together with
affiliates, being referred to herein as "HCP") and dated as of April 5, 1994 (as
amended, the "HCP Lease") pursuant to which Desert Valley Operator leases from
HCP, among other things, the Real Property (as hereinafter defined);

WHEREAS, the HCP Lease provides that Desert Valley Operator has the right and
option to purchase the Real Property from HCP and Desert Valley Operator has
assigned such right and option to Prime;

WHEREAS, subject to the terms and conditions hereinafter set forth, Prime and
the other applicable Seller Parties desire to sell, and the Acquisition Sub
desires to purchase, the Real Property and certain other assets associated or
used in connection with the Hospital and the MOB, all on the terms and
conditions set forth in this Agreement; and

WHEREAS, contemporaneously with the closing of such purchase and sale, Desert
Valley Operator shall lease back the Real Property from the Acquisition Sub
pursuant to a lease in the form of Exhibit A (the "Lease").

NOW, THEREFORE, in consideration of the promises and mutual agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE I
                                  DEFINED TERMS

SECTION 1.1. CERTAIN DEFINED TERMS. Capitalized terms used herein shall have the
respective meanings ascribed to them in this Section 1.1.

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"Acquisition Sub" shall have the meaning set forth in the preamble to this
Agreement.

"Adverse Events" shall have the meaning set forth in Section 4.10 hereof.

"Affiliate" "means, with respect to any Person (i) any Person that, directly or
indirectly, controls or is controlled by or is under common control with such
Person, (ii) any other Person that owns, beneficially, directly or indirectly,
10% or more of the outstanding capital stock, shares or equity interests of such
Person, or (iii) any officer, director, employee, partner, member, manager or
trustee of such Person or any Person controlling, controlled by or under common
control with such Person (excluding trustees and persons serving in similar
capacities who are not otherwise an Affiliate of such Person). For the purposes
of this definition, "control" (including the correlative meanings of the terms
"controlled by" and "under common control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
through the ownership of voting securities or otherwise.

"AOA" shall have the meaning set forth in Section 4.10 hereof.

"Appraisal" means that certain appraisal of the Real Property in form and
substance, and prepared by a Person, satisfactory to MPT in its sole discretion.

"Appraised Value" means the fair market value of the Real Property as set forth
in the Appraisal.

"Assets" shall have the meaning set forth in Section 2.1 hereof.

"Assumed Liabilities" shall have the meaning set forth in Section 2.2 hereof.

"Balance Sheet" shall have the meaning set forth in Section 4.5 hereof.

"Balance Sheet Date" shall have the meaning set forth in Section 4.5 hereof.

"Business" means the operation of the Hospital and the MOB and the engagement in
and pursuit and conduct of any business venture or activity related thereto.

"Business Day" shall mean any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions in New York, New
York are authorized or required by law, regulation or executive order to close.

"Business Employees" shall have the meaning set forth in Section 4.22(a) hereof.

"CMS" means the Centers for Medicare and Medicaid Services.

"Claim" shall have the meaning set forth in Section 4.19 hereof.

"Closing" shall have the meaning set forth in Section 9.1 hereof.

"Closing Date" shall have the meaning set forth in Section 9.1 hereof.

                                       2
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"Code" means the United States Internal Revenue Code of 1986, as amended through
the date hereof, and all regulations thereunder. Any reference herein to a
specific section or sections of the Code shall be deemed to include a reference
to any corresponding provision of future law.

"Confidentiality Agreement" shall have the meaning set forth in Section 7.2(c)
hereof.

"Contracts" shall have the meaning set forth in Section 4.20 hereof.

"Deed" shall have the meaning set forth in Section 9.2(b) hereof.

"Dispute" shall have the meaning set forth in Section 7.6 hereof.

"Environmental Claim" means any Claim, action, cause of action, investigation or
notice (written or oral) by any Person alleging actual or potential liability
for investigatory, cleanup or governmental response costs, or natural resources
or property damages, or personal injuries, attorney's fees or penalties relating
to (i) the presence, or release into the environment, of any Hazardous Materials
at any location owned, leased or operated by any Seller Party, now or in the
past, or (ii) circumstances forming the basis of any violation, or alleged
violation, of any Environmental Law.

"Environmental Law" means each federal, state, local and foreign law and
regulation relating to pollution, protection or preservation of human health or
the environment, including ambient air, surface water, ground water, land
surface or subsurface strata, and natural resources, and including each law and
regulation relating to emissions, discharges, releases or threatened releases of
Hazardous Materials, or otherwise relating to the manufacturing, processing,
distribution, use, treatment, generation, storage, containment (whether above
ground or underground), disposal, transport or handling of Hazardous Materials,
or the preservation of the environment or mitigation of adverse effects thereon
and each law and regulation with regard to record keeping, notification,
disclosure and reporting requirements respecting Hazardous Materials, including,
without limitation, the Resource Conservation and Recovery Act of 1976, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Act of 1986, the
Hazardous Materials Transportation Act, the Federal Water Pollution Control Act,
the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the
Safe Drinking Water Act, and all similar federal, state and local environmental
statutes, ordinances and the regulations, orders, or decrees now or hereafter
promulgated thereunder, in each case as amended from time to time.

"Equity Constituents" means, with respect to any Person, as applicable, the
members, general or limited partners, shareholders, stockholders or other
Persons, however designated, who are the owners of the issued and outstanding
equity or ownership interests of such Person.

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

"Exception Documents" means true, correct, current and legible copies of each
document listed as an exception to title on the Title Commitment.

"Excluded Liabilities" shall have the meaning set forth in Section 2.2 hereof.

                                       3
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"Expansion Commitment Letter" shall have the meaning set forth in Section 9.2(x)
hereof.

"Financial Statements" shall have the meaning set forth in Section 4.5 hereof.

"Fixtures" means all permanently affixed non-medical equipment, machinery,
fixtures, and other items of real property, including all components thereof,
now and hereafter located in, on or used in connection with, and permanently
affixed to or incorporated into the Improvements, including, without limitation,
all furnaces, boilers, heaters, electrical equipment, heating, plumbing,
lighting, ventilating, refrigerating, incineration, air and water pollution
control, waste disposal, air-cooling and air-conditioning systems and apparatus,
sprinkler systems and fire and theft protection equipment, and built-in vacuum,
cable transmission, oxygen and similar systems, all of which, to the greatest
extent permitted by law, are hereby deemed by the parties hereto to constitute
real estate, together with all replacements, modifications, alterations and
additions thereto.

"GAAP" means United States generally accepted accounting principles as in effect
from time to time. Any accounting term used herein and not specifically defined
herein shall be construed in accordance with GAAP.

"Governing Documents" means, with respect to any Person, as applicable, such
Person's charter, articles or certificate of incorporation, formation or
organization, bylaws or other documents or instruments which establish and/or
set forth the rules, procedures and rights with respect to such Person's
governance, including, without limitation, any stockholders, limited liability
company, operating or partnership agreement related to such Person, in each case
as amended, restated, supplemented and/or modified and in effect as of the
relevant date.

"Governmental Entity" means any national, federal, regional, state, local,
provincial, municipal, foreign or multinational court or other governmental or
regulatory authority, administrative body or government, department, board,
body, tribunal, instrumentality or commission of competent jurisdiction.

"Government Programs" shall have the meaning set forth in Section 4.10 hereof.

"Hazardous Materials" means any substance deemed hazardous under any
Environmental Law, including, without limitation, asbestos or any substance
containing asbestos, the group of organic compounds known as polychlorinated
biphenyls, flammable explosives, radioactive materials, infectious wastes,
biomedical and medical wastes, chemicals known to cause cancer or reproductive
toxicity, lead and lead-based paints, radon, pollutants, effluents,
contaminants, emissions or related materials and any items included in the
definition of hazardous or toxic wastes, materials or substances under any
Environmental Law.

"HCP" shall have the meaning set forth in the recitals hereof.

"HCP Lease" shall have the meaning set forth in the recitals hereof.

"Healthcare Fraud Laws" shall have the meaning set forth in Section 4.12(a)
hereof.

"HIPAA" shall have the meaning set forth in Section 4.11 hereof.

                                       4
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"Hospital" shall have the meaning set forth in the recitals to this Agreement.

"Improvements" means all buildings, improvements, structures and Fixtures now or
on the Closing Date located on the Land, including, without limitation,
landscaping, parking lots and structures, roads, drainage and all above ground
and underground utility structures, equipment systems and other so-called
"infrastructure" improvements.

"Indebtedness" of any Person means, without duplication, (a) all liabilities and
obligations, contingent or otherwise, of such Person: (i) in respect of borrowed
money (whether secured or unsecured), (ii) under conditional sale or other title
retention agreements relating to property or services purchased and/or sold by
such Person, (iii) evidenced by bonds, notes, debentures or similar instruments,
(iv) for the payment of money relating to a capitalized lease obligation, (v)
evidenced by a letter of credit or a reimbursement obligation of such Person
with respect to any letter of credit, (vi) pursuant to any guarantee, or (vii)
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) a Lien on the assets or property of
such Person, and (b) all liabilities and obligations of others of the kind
described in the preceding clause (a) and otherwise that (i) such Person is
responsible or liable for, directly or indirectly, as obligor, guarantor, surety
or otherwise, or (ii) which are secured by a Lien on any of the assets or
property of such Person.

"Indemnified Party" shall have the meaning set forth in Section 12.3(a) hereof.

"Indemnifying Party" shall have the meaning set forth in Section 12.3(a) hereof.

"Intangible Property" shall have the meaning set forth in Section 4.21 hereof.

"Knowledge," "to the knowledge or best knowledge of" or similar words or phrases
means, with respect to any Person, such Person's actual or deemed knowledge of a
particular fact or matter if (i) any of such Person's current or former officers
or directors (or other Persons however denominated, exercising similar authority
with respect to such Person) including, but not limited to, in the case of any
Seller Party, Prem Reddy, M.D. and/or Lex Reddy (a Person's "Knowledge Group"),
has actual knowledge of such fact or matter; or (ii) any of such Person's
Knowledge Group would be expected to discover or otherwise become aware of such
fact or matter after conducting a reasonably diligent inquiry.

"Labor Proceeding" shall have the meaning set forth in Section 4.22(c) hereof.

"Land" shall have the meaning set forth in Section 2.1(a) hereof.

"Law" means any federal, state or local statute, rule, regulation, ordinance,
order, code, policy or rule of common law, now or hereafter in effect, and in
each case as amended, and any judicial or administrative interpretation thereof
by a Governmental Entity or otherwise, including, without limitation, any
judicial or administrative order, consent, decree or judgment.

"Lease" shall have the meaning set forth in the recitals to this Agreement.

                                       5
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"Lien" means any mortgage, adverse Claim, deed of trust, pledge, hypothecation,
assignment, charge or deposit arrangement, lien (statutory or otherwise) or
preference, security interest or other encumbrance of any kind or nature
whatsoever.

"Material Adverse Effect" means any change, event(s), occurrence(s) or
effect(s), whether direct or indirect, that, both before and after giving effect
to the transactions contemplated by this Agreement, could, individually or in
the aggregate, have a material adverse effect on (i) the business, properties,
results of operations, assets, revenue, income or condition (financial or
otherwise) of, or the ability to timely satisfy the obligations or liabilities
(whether absolute or contingent) of, any Seller Party, (ii) the Business or the
Assets, or (iii) the ability of any Seller Party to perform its obligations
under, and/or consummate the transactions contemplated by, this Agreement within
the time periods specified herein.

"Medi-Cal" shall have the meaning set forth in Section 4.10 hereof.

"Medicare" shall have the meaning set forth in Section 4.10 hereof.

"Minimum Aggregate Liability Amount" shall have the meaning set forth in Section
12.1(b) hereof.

"MOB" shall have the meaning set forth in the recitals to this Agreement.

"Permitted Encumbrances" means (i) Liens for or arising from current taxes not
yet due and payable; (ii) easements and other restrictions of record; (iii)
matters set forth in the Title Commitment issued by the Title Company; (iv)
matters disclosed on the Survey; and (v) other matters, encumbrances and defects
approved by MPT in writing.

"Permits" shall have the meaning set forth in Section 4.9 hereof.

"Person" means an individual, a corporation, a limited liability company, a
partnership, an unincorporated association, a joint venture, a Governmental
Entity or another entity or group.

"Personal Property" shall have the meaning set forth in Section 4.16 hereof.

"Personal Property Leases" shall have the meaning set forth in Section 4.16
hereof.

"Physician" means any physician rendering services, within, at or on the
Hospital or its premises within the five (5) year period ending on the date of
this Agreement.

"Public Taking" shall have the meaning set forth in Section 4.16(e) hereof.

"Purchase Price" shall have the meaning set forth in Section 3.1 hereof.

"Purchaser Damages" shall have the meaning set forth in Section 12.1(a) hereof.

"Purchaser Parties" shall have the meaning set forth in the preamble to this
Agreement.

"Purchaser Indemnified Party" shall have the meaning set forth in Section
12.1(a).

                                       6
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"Purchaser's Indemnity Periods" shall have the meaning set forth in Section
12.1(b) hereof.

"Real Property" shall have the meaning set forth in Section 2.1(a) hereof.

"Search Reports" means reports of searches made of the uniform commercial code
records of the county in which the Real Property is located, and of the office
of the secretary of state of the state in which the Real Property is located and
in the state in which the principal office of each Seller Party is located.

"Seller Damages" shall have the meaning set forth in Section 12.2(a) hereof.

"Seller Indemnified Parties" shall have the meaning set forth in Section 12.2(a)
hereof.

"Seller Indemnity Period" shall have the meaning set forth in Section 12.2(b)
hereof.

"Seller Instruments" shall have the meaning set forth in Section 4.2 hereof.

"Seller Parties" shall have the meaning set forth in the preamble to this
Agreement.

"Seller Party Plan" shall have the meaning set forth in Section 4.22(f) hereof.

"Service Provider" means any Person who has rendered or is rendering services to
or on behalf of any of the Seller Parties.

"Special Purpose Entity" means an entity which (i) exists solely for the purpose
of owning and/or leasing all or any portion of the Real Property and conducting
the operation of the Business, (ii) conducts business only in its own name,
(iii) does not engage in any business other than the ownership and/or leasing
all or any portion of the Real Property and the operation of the Business, (iv)
does not hold, directly or indirectly, any ownership interest (legal or
equitable) in any entity or any real or personal property other than the
interest which it owns in the Real Property and the other assets incident to the
operation of the Business, (v) does not have any debt other than as permitted by
the Lease or arising in the ordinary course of the Business and does not
guarantee or otherwise obligate itself with respect to the debts of any other
Person other than as approved by MPT, (vi) has its own separate books, records,
accounts, financial statements and tax returns (with no commingling of funds or
assets), (vii) holds itself out as being a company separate and apart from any
other entity, (viii) maintains all corporate formalities independent of any
other entity.

"Subsidiary" means, with respect to any Person, any other Person of or with
respect to which Fifty Percent (50%) or more of the total voting power of the
voting securities is beneficially owned by such Person.

"Survey" means a current "as-built" ALTA survey, certified to ALTA requirements,
prepared by an engineer or surveyor licensed in the state in which the Real
Property is located acceptable to MPT in its sole discretion, which shall be
prepared in accordance with the provisions set forth in Section 6.1 of this
Agreement.

                                       7
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"Taxes" means any and all taxes, charges, fees, levies or other assessments,
including, without limitation, any and all income, gross receipts, excise, real
and personal property (including leaseholds and interests in leaseholds), sales,
use, occupation, transfer, license, ad valorem, gains, profits, gift, minimum
estimated, social security, unemployment, disability, premium, recapture,
credit, payroll, withholding, severance, stamp, capital stock, value added
leasing, franchise and other taxes or similar charges of any kind including any
interest and penalties on or additions thereto or attributable to any failure to
comply with any requirement regarding any Tax Return.

"Tax Return" means any return, declaration, filing, report, claim for refund or
information return or other statement relating to Taxes (whether filed with or
submitted to, or required to be filed with or submitted to, any Governmental
Entity), including any schedule or attachment thereto, and including any
amendment or extension thereof.

"Tax Structure" shall have the meaning set forth in Section 7.2(c) hereof.

"Tax Treatment" shall have the meaning set forth in Section 7.2(c) hereof.

"Tenant" means the lessees or tenants under the Tenant Leases, if any.

"Tenant Leases" shall have the meaning set forth in Section 4.15(i) hereof.

"Third Party Claim" shall have the meaning set forth in Section 12.3(a) hereof.

"Title Commitment" means a current commitment issued by the Title Company to the
Purchaser Parties pursuant to the terms of which the Title Company shall commit
to issue the Title Policy to the Purchaser Parties in accordance with the
provisions of this Agreement, and reflecting all matters which would be listed
as exceptions to coverage on the Title Policy.

"Title Company" means the national service office of a title insurance company
licensed in the state in which the Real Property is located and selected by MPT
in its sole discretion.

"Title Policy" means a title insurance policy in form and substance satisfactory
to MPT in its sole discretion.

"Warranties" means all warranties, representations and guaranties with respect
to any of the Assets, whether express or implied, which any Seller Party now
holds or under which any Seller Party is the beneficiary.

SECTION 1.2. INTERPRETATION; TERMS GENERALLY. The definitions set forth in
Section 1.1 and elsewhere in this Agreement shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. Unless otherwise indicated, the words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation."
The words "herein", "hereof" and "hereunder" and words of similar import shall
be deemed to refer to this Agreement (including the Schedules and Exhibits) in
its entirety and not to any part hereof, unless the context shall otherwise
require. All references herein to Articles, Sections, Schedules and Exhibits
shall be deemed to refer to Articles, Sections and Schedules of, and

                                       8
<PAGE>
Exhibits to, this Agreement, unless the context shall otherwise require. Unless
the context shall otherwise require, any references to any agreement or other
instrument or statute or regulation are to it as amended and supplemented from
time to time (and, in the case of a statute or regulation, to any corresponding
provisions of successor statutes or regulations). Any reference in this
Agreement to a "day" or number of "days" that does not refer explicitly to a
"Business Day" or "Business Days" shall be interpreted as a reference to a
calendar day or number of calendar days. If any action or notice is to be taken
or given on or by a particular calendar day, and such calendar day is not a
Business Day, then such action or notice shall be deferred until, or may be
taken or given on, the next Business Day.

                                   ARTICLE II
             PURCHASE AND SALE OF ASSETS, ASSUMPTION OF LIABILITIES

SECTION 2.1. PURCHASE AND SALE OF ASSETS. Based upon the representations and
warranties of the Seller Parties as set forth herein, and subject to the terms
and conditions hereof, at the Closing, Prime (or, if Prime is not the owner of
the applicable Asset, the appropriate Seller Party), in consideration for the
payment of the Purchase Price in accordance with Section 3.1, shall grant, sell,
assign, transfer, convey and deliver to the Acquisition Sub, and the Acquisition
Sub shall purchase and acquire from Prime, free and clear of all Liens, other
than Permitted Encumbrances, the following assets of Desert Valley Operator
(collectively, the "Assets"):

(a) those certain tracts of land consisting of approximately ______ (__) acres
located in Victorville, California the legal descriptions of which are set forth
on Exhibit B attached hereto (the "Land") and all Improvements located thereon
(collectively the "Real Property");

(b) Intentionally Deleted;

(c) to the extent assignable, all rights in all intangible property relating
exclusively to the Real Property, including, but limited to, zoning rights,
Permits (other than operating permits) and indemnification or similar rights and
all Warranties affecting or inuring to the benefit of the Real Property or the
owner thereof (including, without limitation, any indemnification or similar
rights and Warranties related to the Real Property);

(d) all of the Seller Parties', title and interest in and to site plans,
surveys, soil and substrata studies, architectural drawings, plans and
specifications, inspection reports, engineering and environmental plans and
studies, title reports, floor plans, landscape plans and other plans relating to
the Real Property and the Improvements; and

(e) all of the Seller Parties' right, title and interest in and to all causes of
action, claims and rights in litigation (or which could result in litigation
against any party) pertaining or relating to the Real Property (including,
without limitation, any causes of action, claims or rights in litigation or
other rights related to or arising under any purchase contracts respecting the
Real Property).

SECTION 2.2. EXCLUDED LIABILITIES. Notwithstanding anything in this Agreement to
the contrary, except as set forth on Schedule 2.2 (the "Assumed Liabilities") no
Purchaser Party shall assume or agree to pay, satisfy, discharge or perform, or
shall be deemed by virtue of the execution and delivery of this Agreement or any
other document delivered at the Closing

                                       9
<PAGE>
pursuant to this Agreement, or as a result of the consummation of the
transactions contemplated by this Agreement or such other document, to have
assumed, or to have agreed to pay, satisfy, discharge or perform, or shall be
liable for, any liability, obligation, contract or Indebtedness of any Seller
Party or any other Person, whether primary or secondary, direct or indirect,
including, without limitation, any liability or obligation relating to the
ownership, use or operation of any of the Assets, the Hospital or the MOB prior
to Closing, any liability or obligation arising out of or related to any breach,
default, tort or similar act committed by any of the Seller Parties or for any
failure of any of the Seller Parties to perform any covenant or obligation for
or during any period prior to Closing (collectively, the "Excluded
Liabilities").

SECTION 2.3. SPECIAL PURPOSE ENTITY. Seller Parties agree that the Desert Valley
Operator shall be a Special Purpose Entity at all times during the term of the
Lease.

                                  ARTICLE III
                                 PURCHASE PRICE

SECTION 3.1. PURCHASE PRICE. Subject to obtaining the Appraisal in accordance
with Section 8.2(m) hereof, the purchase price for the Assets shall be
Twenty-Eight Million and No/100 Dollars ($28,000,000.00) (the "Purchase Price").
Subject to the terms and conditions hereof, at Closing, the Acquisition Sub
shall pay the Purchase Price via transfer of immediately available federal funds
to an account specified in writing by Desert Valley Parent not less than three
(3) Business Days prior to the Closing Date.

SECTION 3.2. TAXES, RENTALS, UTILITIES. The parties acknowledge that all utility
charges and all real and personal property Taxes related to the Assets shall be
the responsibility of the Desert Valley Operator pursuant to the terms of the
Lease.

SECTION 3.3. ALLOCATION OF PURCHASE PRICE. The Purchase Price shall be allocated
among the Assets for purposes of Section 1060 of the Code as set forth on
Schedule 3.3. The parties agree to use, and to not take any position which is
inconsistent with, such allocation in the preparation and filing of any Tax
Return (including Form 8594).

                                   ARTICLE IV
                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                              OF THE SELLER PARTIES

With the understanding that the Purchaser Parties shall rely hereon, and as a
material inducement to the Purchaser Parties to enter into this Agreement and
the Lease, each Seller Party hereby jointly and severally represents, warrants
and covenants to the Purchaser Parties as of the date hereof and as of the
Closing Date as follows:

SECTION 4.1. ORGANIZATION. Each Seller Party is a corporation or limited
liability company duly organized, validly existing and in good standing under
the laws of their respective states of incorporation and is duly licensed in
each jurisdiction in which the nature of the business conducted, or the assets
owned, operated and/or leased, by such Seller Party requires or makes such
qualification necessary. Desert Valley Operator is, and has at all times since
its incorporation been, a Special Purpose Entity. Schedule 4.1 sets forth the
ownership of each

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Seller Party and, except as set forth therein, no other party has any equity
interest in any Seller Party or any option, warrant or other right to acquire
same.

SECTION 4.2. AUTHORIZATION AND ENFORCEABILITY. Each Seller Party has the
requisite corporate or limited liability company power and authority to conduct
its business as it is now being conducted and as proposed to be conducted and to
execute, deliver and carry out the terms of this Agreement, together with all
documents and agreements necessary to give effect to the provisions of this
Agreement, including the Lease, and to consummate the transactions contemplated
hereby and thereby. All corporate or limited liability company actions required
to be taken by each Seller Party (including, without limitation, all necessary
actions by the board of directors and shareholders of such Seller Party) to
authorize the execution, delivery and performance of this Agreement as well as
all documents, agreements and instruments executed by such Seller Party which
are necessary to give effect to this Agreement (collectively, the "Seller Party
Instruments") and all transactions contemplated hereby and thereby, have been
duly and properly taken or obtained in accordance and compliance with, as
applicable, such Seller Party's Governing Documents. Each Seller Party has
heretofore delivered to the Purchaser Parties true, correct and complete copies
of such Seller Party's Governing Documents. No other action on the part of any
Seller Party is necessary to authorize the execution, delivery and performance
of this Agreement, the Seller Party Instruments and all transactions
contemplated hereby and thereby. This Agreement, the Seller Party Instruments
and all agreements to which any Seller Party will become a party hereunder,
including the Lease, are and will constitute the valid and legally binding
obligations of such Seller Party, and are and will be enforceable against such
Seller Party in accordance with the respective terms hereof or thereof, except
as enforceability may be restricted, limited or delayed by applicable
bankruptcy, insolvency or other similar laws affecting creditors' rights
generally and except as enforceability may be subject to and limited by general
principles of equity (regardless of whether considered in a proceeding in equity
or at law).

SECTION 4.3. ABSENCE OF CONFLICTS. Each Seller Party's execution, delivery and
performance of this Agreement, and the consummation of the transactions
contemplated hereby, will not, with or without the giving of notice and/or the
passage of time: (i) violate or conflict with any provision of such Seller
Party's Governing Documents; (ii) violate any provision of any Law to which such
Seller Party is subject; (iii) violate or conflict with any judgment, order,
writ or decree of any court applicable to such Seller Party; (iv) result in or
cause the creation of a Lien on any of the Assets; or (v) except as disclosed on
Schedule 4.3, result in the breach or termination of any provision of, or create
rights of acceleration or constitute a default under, the terms of any
indenture, mortgage, deed of trust, contract, agreement or other instrument to
which such Seller Party is a party or by which such Seller Party or any of the
assets is bound.

SECTION 4.4. CONSENTS AND APPROVALS. Except as set forth on Schedule 4.4, no
license, permit, qualification, order, consent, authorization, approval or
waiver of, or registration, declaration or filing with, or notification to, any
Governmental Entity or other Person is required to be made or obtained by or
with respect to any Seller Party in connection with the execution, delivery and
performance of this Agreement or the Seller Party Instruments by any Seller
Party or the consummation of the transactions contemplated hereby or thereby.

                                       11
<PAGE>
SECTION 4.5. FINANCIAL STATEMENTS. Schedule 4.5 sets forth (i) the audited
balance sheets of each applicable Seller Party for the fiscal years ended 2002
(other than Desert Valley Parent and Prime) and 2003 (other than Prime), (ii)
the unaudited balance sheet of Desert Valley Parent and Prime for the fiscal
year ended 2002 and the unaudited balance sheet of Prime for the fiscal year
ended 2003, (iii) the unaudited balance sheet of Desert Valley Parent, Desert
Valley Operator and Prime at December 31, 2004 and the unaudited balance sheet
of Desert Valley Medical at November 30, 2004 (together with December 31, 2004,
the "Balance Sheet Dates") (the balance sheets described in this subsection
(iii), being herein referred to, collectively, as the "Balance Sheets"), (iv)
the audited statement of income and cash flows of each applicable Seller Party
for the fiscal years ended 2002 (other than Desert Valley Parent and Prime) and
2003 (other than Prime), (v) the unaudited income statement of Desert Valley
Parent and Prime for the fiscal year ended 2002 and the unaudited income
statement of Prime for the fiscal year ended 2003, and (iv) the unaudited
statement of income of Desert Valley Parent, Desert Valley Operator and Prime
for the twelve (12) months ended December 31, 2004 and the unaudited statement
of income of Desert Valley Medical for the eleven (11) months ended November 30,
2004 (the financial statements described in this sentence, being herein referred
to, collectively, as the "Financial Statements"). Except as set forth on
Schedule 4.5, the Financial Statements have been prepared in accordance with
GAAP, are based on the books, records and accounts of the Seller Parties and
fairly present the financial condition and results of operations, cash flows and
shareholders' equity of the Seller Parties as of the respective dates thereof
and for the respective periods indicated therein, except (i) that the unaudited
interim statements do not include complete note (including footnote) disclosure
as required by GAAP; and (ii) that the unaudited interim statements are subject
to normal, year-end adjustments which are not, and will not be, material in
amount or effect, either individually or in the aggregate.

SECTION 4.6. ACCOUNTS RECEIVABLE. The accounts receivable of each Seller Party
include only accounts receivable arising from bona fide transactions in the
conduct of the ordinary course of business of such Seller Party, are in all
material respects true and genuine, represent legal, valid and binding
obligations of the respective debtors enforceable in accordance with their
terms. No material payment of said receivables is contingent upon performance of
any obligations or contract, past or future, and, except as set forth on
Schedule 4.6, all such receivables are free of all security interests and
encumbrances created by any Seller Party. Except as set forth on Schedule 4.6,
no defense, counterclaim, offset or adjustment exists as to any such account
receivable.

SECTION 4.7. NO UNDISCLOSED LIABILITIES. Except as set forth on Schedule 4.7, no
Seller Party has any material liability or obligation, whether absolute,
accrued, contingent or otherwise, including any potential future liability
arising out of acts or omissions which have already occurred, which is not fully
and accurately reflected or reserved against in the Balance Sheets except for
liabilities or obligations that may have arisen in the ordinary course of
business of the Seller Parties, consistent with the past practice of the Seller
Parties, since the Balance Sheet Date (none of which results from, arises out
of, relates to, is in the nature of, or was caused by any breach of contract,
breach of warranty, tort, infringement or violation of law) and no Seller Party
has Knowledge of any fact, condition or circumstance which could form the basis
of any such liability or obligation.

                                       12
<PAGE>
SECTION 4.8. ABSENCE OF CHANGES. Except as set forth on Schedule 4.8, since the
Balance Sheet Date, each Seller Party has, as applicable:

(a) conducted its business only in the ordinary course of business and
consistently with its past practices;

(b) not suffered any change, event or circumstance which has had, or could have,
a Material Adverse Effect;

(c) preserved its legal existence and retained its business organization intact;

(d) maintained its relationships with all suppliers, trade creditors and trade
debtors;

(e) paid or satisfied all of its debts, liabilities or obligations as the same
became due;

(f) paid all compensation and other obligations to its employees when the same
were due and payable;

(g) timely made all applicable filings with Governmental Entities;

(h) not mortgaged, pledged, subjected to Lien, charged, encumbered or granted a
security interest in or to any of the Assets;

(i) except as otherwise provided in this Agreement, not sold or transferred any
of its assets except for sales of inventory in the ordinary course of business
and consistently with its past practices;

(j) not suffered any damage, destruction or loss (whether or not covered by
insurance) affecting the Assets;

(k) not cancelled any debts owing to it or otherwise granted or waived any right
of substantial value;

(l) not terminated or materially modified any contract, lease, agreement or
arrangement with any payor, vendor or supplier or received notice of termination
or become aware of any threat of termination with respect to any such contract,
lease, agreement or arrangement;

(m) not made any capital expenditure or commitment for the acquisition of assets
in excess of Fifty Thousand Dollars ($50,000);

(n) not made or suffered any change to its Governing Documents;

(o) not made or received any loans or advances to or from any Person, other than
renewals or extensions of existing indebtedness and uses of lines of credit;

(p) maintained its books and records in accordance with GAAP, consistent with
past practices;

(q) not incurred, assumed or guaranteed any Indebtedness;

                                       13
<PAGE>
(r) not experienced any defections in its medical staff; or

(s) not agreed or offered, whether in writing or otherwise, to take, and neither
any Seller Party nor its board of directors (or by any Person or group of
Persons possessing and/or exercising similar authority with respect to such
Seller Party) or Equity Constituents have authorized the taking of, any action
described in Sections 4.8(a) through 4.8(r) above.

SECTION 4.9. LICENSES. Desert Valley Operator has all licenses, permits,
certificates of need and other authorizations of Government Entities (the
"Permits") from all applicable Governmental Entities necessary or proper in
order to operate the Hospital and the MOB and to conduct the Business. Each
Permit issued to and held by Desert Valley Operator is identified and described
on Schedule 4.9, and true, correct and current copies of each such Permit have
previously been delivered to the Purchaser Parties by the Seller Parties. Except
as set forth on Schedule 4.9, Desert Valley Operator previously has complied and
is currently complying with its obligations under each of the Permits and all
such Permits are in full force and effect. No written notice from any authority
in respect to the threatened, pending or possible revocation, termination,
suspension or limitation of any of the Permits has been issued or given to any
Seller Party and no Seller Party has any Knowledge of the proposed or threatened
issuance of any such notice or of any grounds or basis therefor.

SECTION 4.10. ACCREDITATION; MEDICARE AND MEDI-CAL; THIRD PARTY PAYORS. Desert
Valley Operator is currently accredited by the American Osteopathic Association
("AOA") and has previously delivered to the Purchaser Parties true, correct and
complete copies of the following documents (i) the most recent AOA accreditation
survey reports for the Hospital and deficiency list and plan of correction, if
any, and a list and description of events in the past three (3) years at the
Hospital that constitute "Adverse Events" (as defined by AOA), if any, and any
documentation that was created prepared and/or produced by or on behalf of any
Seller Party to satisfy AOA requirements relating to addressing such Adverse
Events; (ii) any state licensing survey reports with respect to the Hospital for
the two (2) year period prior to the date hereof, as well as any statements of
deficiencies and plans of correction in connection with such reports; (iii) the
fire marshal's surveys for the past two (2) years and list of deficiencies, if
any, for the Hospital; and (iv) the boiler inspection reports for the past two
(2) years and list of deficiencies, if any, for the Hospital. Desert Valley
Operator has taken all reasonable steps to correct all such deficiencies and a
description of any uncorrected deficiency is set forth on Schedule 4.10. Except
as set forth on Schedule 4.10 attached hereto, each Seller Party (other than
Prime and Desert Valley Parent) participates without restriction under Title
XVIII of the Social Security Act ("Medicare") and Title XIX of the Social
Security Act ("Medi-Cal"), the Medicare and the Medi-Cal programs of the State
of California and the TRICARE/CHAMPUS programs (collectively, the "Government
Programs"). Desert Valley Operator has received Medicare or Medi-Cal
reimbursement with respect to the Hospital and is eligible to receive payment
without restriction under Medicare and Medi-Cal. Except as set forth on Schedule
4.10, the Hospital is in compliance with the conditions of participation for the
Government Programs, has received all approvals or qualifications necessary for
capital reimbursement and has been found by CMS to be in compliance with 42
C.F.R. Sections 489.20 and 489.24 and its medicare provider agreement will not
be terminated for failure to so comply. Except as set forth on Schedule 4.10,
there is no pending, nor, to the best of the Seller Parties' Knowledge,
threatened, proceeding or investigation under the Government Programs involving
the Hospital or any of the Assets. Desert Valley

                                       14
<PAGE>
Operator has previously delivered to the Purchaser Parties true, correct and
complete copies of the most recent Medicare and Medi-Cal certification survey
reports for the Hospital including any statements of deficiencies and plans of
correction, and the corrective action plans related thereto. Desert Valley
Operator has taken all reasonable steps to correct all such deficiencies and a
description of any uncorrected deficiency is set forth on Schedule 4.10. With
respect to the operation of the Hospital, except as set forth on Schedule 4.10,
neither Desert Valley Operator nor any of its officers, directors or any of the
Business Employees (as hereinafter defined), nor any Seller Party (or Equity
Constituent thereof) or Service Provider (i) has been excluded, suspended or
debarred from, or otherwise adjudicated, deemed or determined ineligible for,
participation in any Government Program, including Medicare or Medi-Cal, (ii)
has been convicted of a criminal offense related to conduct that would trigger
an exclusion from any Government Program, (iii) committed any act or omission
which could result in, or form the basis of, any of the actions described in
clauses (i) or (ii) of this sentence; and (v) no Medicare funds will be used to
make any payment for any items or services furnished by any excluded individual.
Desert Valley Operator has timely filed, caused to be timely filed and, as to
reports due after the Closing, shall timely file, all cost reports required by
third party payors, including, but not limited to, Government Programs and other
insurance carriers, and, except as disclosed on Schedule 4.10 all such reports
are or will be complete and accurate when filed. Except as disclosed on Schedule
4.10, Desert Valley Operator is and has been in compliance with filing
requirements with respect to cost reports of the Hospital, including appropriate
allocation of expenses associated with any management or consulting services
provided by the Seller Parties or any employees of the Seller Parties and such
reports do not claim and the Hospital has not received, payment or reimbursement
in excess of the amount provided or allowed by applicable law or any applicable
agreement, except where excess reimbursement was noted on the cost report. True
and correct copies of the cost reports to third parties for the Hospital for the
three (3) most recent fiscal years with respect to which Desert Valley Operator
received such cost reports have been made available to the Purchaser Parties.
Except as disclosed on Schedule 4.10, no Seller Party has received any written
notice of any dispute relating to the Hospital between any Seller Party and any
Governmental Entity, including any fiscal intermediary or carrier, federal,
state or local governmental body or entity, or the Administrator of the Center
for Medicare and Medi-Cal Services, with respect to any Government Program cost
reports or claims filed with respect to the Hospital, on or before the date of
this Agreement.

SECTION 4.11. HIPAA COMPLIANCE. Each Seller Party is in full compliance with the
Standards for Privacy of Individually Identifiable Health Information and the
Transaction and Code Set Standards which were promulgated pursuant to the Health
Insurance Portability and Accountability Act of 1996 ("HIPAA"). Schedule 4.11
includes, but is not limited in any manner whatsoever to, any privacy, security
or transaction and code set standards compliance plan of each Seller Party in
place or in development, and any plans, analyses or budgets relating to
information systems, including but not limited to necessary purchases, upgrades
or modifications to effect HIPAA compliance.

SECTION 4.12. HEALTHCARE REGULATORY MATTERS.

(a) No Seller Party, or, to the Knowledge of any Seller Party, any Physician,
Service Provider or other Person rendering services (including directly or
indirectly referring patients) to or at, or in any way affiliated with the
Hospital (i) is a party to, or has received notice of, the

                                       15
<PAGE>
commencement of any investigation or debarment proceedings or any governmental
investigation or action (including any civil investigative demand or subpoena)
under the False Claims Act (31 U.S.C. Section 3729 et seq.), the Anti-Kickback
Act of 1986 (41 U.S.C. Section 51 et seq.), the Federal Health Care Programs
Anti-Kickback statute (42 U.S.C. Section 1320a-7a(b)), the Ethics in Patient
Referrals Act of 1989, as amended (Stark Law) (42 U.S.C. 1395nn), the Civil
Money Penalties Law (42 U.S.C. Section 1320a-7a), or the Truth in Negotiations
(10 U.S.C. Section 2304 et seq.), Health Care Fraud (18 U.S.C. 1347), Wire Fraud
(18 U.S.C. 1343), Theft or Embezzlement (18 U.S.C. 669), False Statements (18
U.S.C. 1001), False Statements (18 U.S.C. 1035), and Patient Inducement Statute
and equivalent state statutes or any rule or regulation promulgated by a
Governmental Entity with respect to any of the foregoing (collectively, the
"Healthcare Fraud Laws") affecting any Seller Party, the Hospital or the
Business (and no grounds for any such proceeding, investigation or action
exist); and (ii) is not in full compliance with all applicable Healthcare Fraud
Laws. The terms and structure of the Tenant Leases currently comply and shall
comply in all respects with all Healthcare Fraud Laws.

(b) Except as set forth on Schedule 4.12, no Seller Party, or, to the Seller
Parties' Knowledge, any Physician, Service Provider or other Person rendering
services (including directly or indirectly referring patients) to or at, or in
any way affiliated with, the Hospital, has ever been investigated, charged or
implicated in any violation of any state or federal statute or regulation
involving false, fraudulent or abusive practices relating to participation in
state or federally sponsored reimbursement programs, including, but not limited
to, false or fraudulent billing practices. No Seller Party, or, to the Seller
Parties' Knowledge, any Physician, Service Provider or other Person rendering
services (including directly or indirectly referring patients) to or at, or in
any way affiliated with, the Hospital, has ever engaged in any of the following:
(i) knowingly and willfully making or causing to be made a false statement or
representation of a material fact in any applications for any benefit or payment
under Medicare or Medi-Cal program; (ii) knowingly and willfully making or
causing to be made any false statement or representation of a material fact for
use in determining rights to any benefit or payment under Medicare or Medi-Cal
program; (iii) failing to disclose knowledge of any event affecting the initial
or continued right to any benefit or payment under Medicare or Medi-Cal program
on its own behalf or on behalf of another, with intent to secure such payment or
benefit fraudulently; (iv) knowingly and willfully soliciting, paying, or
receiving any remuneration (including kickback, bribe or rebate), directly or
indirectly, overtly or covertly, in cash or in kind or offering to pay such
remuneration (A) in return for referring an individual to a Person for the
furnishing or arranging for the furnishing of any item or service for which
payment may be made in whole or in part by Medicare or Medi-Cal, or (B) in
return for purchasing, leasing or ordering or arranging for or recommending the
purchasing, leasing or ordering of any good, facility, service, or item for
which payment may be made in whole or in part by Medicare or Medi-Cal; (v)
presenting or causing to be presented a claim for reimbursement for services
that is for an item or service that was known or should have been known to be
(A) not provided as claimed, or (B) false or fraudulent; or (vi) knowingly and
willfully making or causing to be made or inducing or seeking to induce the
making of any false statement or representation (or omitting to state a fact
required to be stated therein or necessary to make the statements contained
therein not misleading) of a material fact with respect to (A) a facility in
order that the facility may qualify for Governmental Entity certification or (B)
information to be provided under 42 USC Section 1320a-3.

                                       16
<PAGE>
SECTION 4.13. TAXES. Each Seller Party has filed or caused to be filed all Tax
Returns of such Seller Party which have become due (taking into account valid
extensions of time to file) prior to the date hereof. Such Tax Returns are
accurate and complete in all material respects, and each Seller Party has paid
or caused to be paid all Taxes for the periods covered thereby, whether or not
shown to be due on such Tax Returns. There are (i) no outstanding Liens for any
Taxes that have been filed by any Governmental Entity against the Assets or any
other assets of any Seller Party used in the Business (other than for ad valorem
taxes not yet due and payable), and (ii) no claims being asserted with respect
to any Taxes relating to any Seller Party, the Assets or the Business for which
any Purchaser Party could be held liable, and there is no basis for the
assertion of any such claim. No Seller Party has made or agreed or offered to
make, or revoked or agreed or offered to revoke, a Tax election with respect to
or affecting the Assets at any time during the last two (2) years. Except as set
forth on Schedule 4.13, no Seller Party is a party to any tax abatement
agreement relating to the Assets. Except as disclosed with reasonable
specificity on Schedule 4.13, there are no outstanding waivers or agreements
extending the statute of limitations for any period with respect to any Tax to
which the Assets or any Purchaser Party may be subject following the Closing.

SECTION 4.14. GOOD TITLE TO ASSETS. Except as set forth on Schedule 4.14, each
Seller Party has good, absolute and marketable title to, and unrestricted
possession of, all of its assets (other than the Real Property, which is
addressed in Section 4.15 below), free and clear of all Liens (other than
Permitted Encumbrances) and any adverse Claims of third parties.

SECTION 4.15. TITLE AND CONDITION OF THE REAL PROPERTY.

(a) Schedule 2.1(a) sets forth a legal description of the Real Property. Except
as set forth on Schedule 4.15, Prime is the sole and exclusive legal and
equitable owner of all right, title and interest in the Real Property and at
Closing will have and convey to the Acquisition Sub good and marketable title in
fee simple to the Real Property, free and clear of any and all Liens,
encumbrances, restrictions or easements of any kind whatsoever (other than
Permitted Encumbrances).

(b) The location, construction, occupancy, operation, use and sale of the Real
Property (including the Improvements) do not violate any applicable law,
statute, ordinance, rule, regulation, order or determination of any Governmental
Entity or any restrictive covenant or deed restriction (recorded or otherwise)
affecting the Real Property, including, without limitation, any applicable
zoning or subdivision ordinance or building code, flood disaster law or health
and environmental law or regulation.

(c) With regard to the Real Property, except as set forth on Schedule 4.15(c),
to the Knowledge of the Seller Parties, there are no (i) encroachments onto or
from adjacent properties; (ii) violations of set-back, building or side lines;
(iii) encroachments onto any easements or servitudes located on such Real
Property; (iv) pending or, to the Knowledge of any Seller Party, threatened
boundary line disputes; (v) portions of such Real Property located in a flood
plain or in an area defined as a wetland under applicable state or federal law;
(vi) cemeteries or gravesites located on the Real Property; or (vii) mine shafts
under the Real Property or any other latent defects, such as sinkholes,
regarding or affecting the Real Property.

                                       17
<PAGE>
(d) The existing water, sewer, gas and electricity lines, storm sewer and other
utility systems are adequate to serve the utility needs of the Real Property.
All of said utilities are installed and operating, and all installation and
connection charges have been paid in full.

(e) Except as set forth on Schedule 4.15(e), neither the whole nor any portion
of the Real Property has been condemned, requisitioned or otherwise taken by any
public authority (a "Public Taking"), and no notice of any Public Taking has
been received by any Seller Party with regard to any of the Real Property. No
Seller Party has any Knowledge of any Public Taking being threatened or
contemplated. No Seller Party has any Knowledge of any public improvements which
have been ordered to be made and/or which have not heretofore been assessed,
and, to the Knowledge of the Seller Parties, there are no special, general or
other assessments pending or threatened against or affecting any of the Real
Property (except those expressly identified in the Title Commitment).

(f) Except as set forth on Schedule 4.15(f), there are no Claims, actions,
suits, proceedings or investigations pending or, to the Knowledge of any Seller
Party, threatened, against or affecting all or any portion of the Real Property.

(g) Permanent certificates of occupancy, all licenses, permits, certificates of
need (if applicable), authorizations and approvals required by all Governmental
Entities having jurisdiction, have been issued for the Improvements, and, as of
the Closing, all of the same will be in full force and effect. The Improvements,
as designed and constructed, comply with all statutes, restrictions, regulations
and ordinances applicable thereto, including but not limited to the Americans
with Disabilities Act and Section 504 of the Rehabilitation Act of 1973. No
Seller Party either has in its possession or has Knowledge of any studies or
reports which specify or suggest the presence of any defects in the design or
construction of any of the Improvements.

(h) No Seller Party has Knowledge of any fact or condition which would result in
the termination of the current access from the Real Property to any presently
existing public highways and/or roads adjoining or situated on the Real Property
or to sewer or other utility services to serve the Real Property.

(i) Schedule 4.15(i) attached hereto sets forth an accurate and complete list of
all leases, subleases, commitment letters, letters of intent and other rental
agreements, whether written or oral, now or hereafter in effect, if any, that
grant or will grant a possessory interest in and to any space in the Real
Property or that otherwise assign or convey rights with regard to the Real
Property or the Improvements (collectively referred to as the "Tenant Leases").
Schedule 4.15(i) designates which of the Tenant Leases described therein are
with the referral sources (as determined by any of the Healthcare Fraud Laws) of
Desert Valley Operator or any other Seller Party. Schedule 4.15(i) specifies the
rent and security deposit, if any, for each Tenant Lease. The Seller Parties
have provided the Purchaser Parties with complete, correct and current copies of
all Tenant Leases. The Seller Parties shall provide to the Purchaser Parties
prior to Closing Tenant Lease estoppels in form satisfactory to the Purchaser
Parties from all Tenants under the applicable Tenant Leases. Except for the
Tenant Leases and any other items listed on Schedule 4.15(i), there are no
purchase contracts, leases of space, options, rights of first refusal or other
written or oral agreements of any kind whereby any person or entity will have
acquired or will

                                       18
<PAGE>
have any basis to assert any right, title or interest in, or right to the
possession, use, enjoyment or proceeds of, any part or all of the Real Property
or the Improvements.

(j) No Seller Party has accepted the payment of rent or other sums due under any
of the Tenant Leases for more than one (1) month in advance. As of the Closing,
none of the Tenant Leases and none of the rents or other charges payable
thereunder, if any, will have been assigned, pledged or encumbered. Except as
set forth on Schedule 4.15(j), as of the Closing, no brokerage or leasing
commissions or other compensation will be due or payable to any Person with
respect to, or on account of, the Lease or any Tenant Lease or any extensions or
renewals thereof, if any, excepting those agreements entered into or accepted in
writing by the Purchaser Parties.

(k) All tenant improvements, repairs and other work and obligations, if any,
then required to be performed by the landlord under each of the Tenant Leases
will be fully performed and paid for in full on or prior to the Closing.

(l) Except as set forth on Schedule 4.15(l): (i) the Tenant Leases are freely
assignable by the Seller Parties to the Acquisition Sub, have not been modified,
amended or assigned, are legally valid, binding and enforceable against the
applicable Seller Parties (and, to the best of the Seller Parties' Knowledge,
against the other parties to such Tenant Leases) in accordance with their
respective terms and are in full force and effect; (ii) there are no monetary
defaults and no material nonmonetary defaults by the applicable Seller Party or,
to the best of the Seller Parties' Knowledge, any other party to the Tenant
Leases; (iii) no Seller Party has received written notice of any default,
offset, counterclaim or defense under any of the Tenant Leases; and (iv) no
condition or event has occurred which with the passage of time or the giving of
notice or both would constitute a default or breach by any Seller Party of the
terms of any of the Tenant Leases.

(m) The Real Property constitutes all the land and improvements used by Desert
Valley Operator in connection with the operation of the Hospital and the MOB, it
being understood that certain administrative activities relating to such
operations are not conducted at the Real Property.

SECTION 4.16. CONDITION OF PERSONAL PROPERTY. Schedule 4.16 sets forth a list of
all equipment and other items of tangible personal property used by Desert
Valley Operator in the operation of the Hospital and the MOB (the "Personal
Property"). Except as set forth on Schedule 4.16, Desert Valley Operator has
good, clear and indefeasible title to and ownership of all of the Personal
Property, free and clear of all Liens, and may grant Acquisition Sub a first
priority security interest in and to the Personal Property. Schedule 4.16 sets
forth an accurate and complete list of all leases of personal property used in
the operation of the Hospital (the "Personal Property Leases"). The Seller
Parties have provided the Purchaser Parties with complete, correct and current
copies of all of the Personal Property Leases. Except as set forth on Schedule
4.16: (i) Desert Valley Operator may grant a first priority security interest in
the Personal Property Leases to the Acquisition Sub, (ii) the Personal Property
Leases have not been modified, amended or assigned, are legally valid, binding
and enforceable against Desert Valley Operator (and, to the Seller Parties'
Knowledge, against the other parties to such Personal Property Leases) in
accordance with their respective terms and are in full force and effect; (iii)
there are no monetary defaults and no material nonmonetary defaults by Desert
Valley Operator,

                                       19
<PAGE>
to the Seller Parties' Knowledge, any other party to the Personal Property
Leases; (iv) no Seller Party has received notice of any default, offset,
counterclaim or defense under any Personal Property Lease; and (v) no condition
or event has occurred which with the passage of time or the giving of notice or
both would constitute a default or breach by Desert Valley Operator of the terms
of any Personal Property Lease. Except as set forth on Schedule 4.16, all
personal property, whether owned by Desert Valley Operator or subject to any
Personal Property Lease, is in good operating condition and repair, ordinary
wear and tear excepted, and is located on the Real Property.

SECTION 4.17. COMPLIANCE WITH ENVIRONMENTAL LAWS. Except as set forth on
Schedule 4.17:

(a) with respect to the ownership and operation of the Real Property and the
Hospital, including any operations at or from any real property currently or
formerly owned, used, leased, occupied or managed by any Seller Party, each
Seller Party is and has at all times been, in compliance with all Environmental
Laws;

(b) no Governmental Entity or any nongovernmental third party has notified any
Seller Party of any alleged violation or investigation of any suspected
violation under the Environmental Laws in connection with the ownership,
operation and/or leasing of the Real Property or the Hospital, including any
litigation or cause of action alleging personal injury or property damage caused
by exposure to, or the disposal, release or migration of, any Hazardous
Materials;

(c) with respect to the ownership, operation and/or leasing of the Real Property
and the Hospital, no Seller Party has stored, disposed of or arranged for the
disposal of any Hazardous Materials, except in compliance with the Environmental
Laws;

(d) there have been no actions nor, to the Knowledge of Seller Parties, any
activities, circumstances, conditions, events or incidents, including, without
limitation, the generation, transportation, treatment, storage, release,
emission, discharge, presence or disposal of any Hazardous Materials on or from
any of the Real Property or the Hospital that could form the basis of any claim
under the Environmental Laws against any Seller Party or any Purchaser Party;

(e) no Seller Party has, whether contractually or by operation of law (including
any Environmental Law), assumed or succeeded to any liability of any direct or
indirect predecessors or any other Person (including, without limitation, HCP)
related or with respect to any Environmental Law;

(f) there are no underground storage tanks located at, on or under the Real
Property, and the Real Property does not contain any asbestos-containing
building material;

(g) there are no conditions presently existing on, at or emanating from the Real
Property, that may result in any liability, investigation or clean-up cost under
any Environmental Law; and

(h) no Seller Party, nor to the Seller Parties' Knowledge any other Person, has
installed, used, generated, manufactured, treated, handled, refined, produced,
processed, stored or disposed of, any Hazardous Materials in, on or under the
Real Property, except in compliance with the Environmental Laws. No Seller Party
has undertaken any activity, and the Seller Parties have no

                                       20
<PAGE>
Knowledge that any other Person has undertaken any activity, on the Real
Property which would cause (i) the Real Property to become a hazardous waste
treatment, storage or disposal facility within the meaning of, or otherwise
bring the Real Property within the ambit of, any Environmental Law, (ii) a
release or threatened release of Hazardous Material from the Real Property
within the meaning of, or otherwise bring the Real Property within the ambit of,
any Environmental Law, or (iii) the discharge of Hazardous Material into any
watercourse, body of, surface or subsurface water or wetland, or the discharge
into the atmosphere of any Hazardous Material which would require a permit under
any Environmental Law. No activity has been undertaken by any Seller Party with
respect to the Real Property which would cause a violation or support a claim
under any Environmental Law. No investigation, administrative order, litigation
or settlement with respect to any Hazardous Material is in existence, or, to the
Seller Parties' Knowledge, threatened with respect to the Real Property. No
notice has been served on any Seller Party from any Governmental Entity claiming
any violation of any Environmental Law, or requiring compliance with any
Environmental Law, or demanding payment or contribution for environmental damage
or injury to natural resources. No Seller Party has obtained or is required to
obtain, and no Seller Party has any Knowledge of any reason Acquisition Sub will
be required to obtain, any permits, licenses, or similar authorizations to
occupy, operate or use the Improvements or any part of the Real Property by
reason of any Environmental Law.

SECTION 4.18. INSURANCE. Schedule 4.18 sets forth a complete and accurate list
and brief description of all insurance policies currently held by any Seller
Party with respect to the Real Property, the operation of the Hospital and the
professional liability, negligence and other acts of the Physicians and the
Service Providers, it being acknowledged that such insurance coverages are, at a
minimum, those required by the terms of the Lease. All such Insurance policies
are in full force and effect, all premiums due thereon have been paid in full
and each Seller Party is in compliance with the terms of such Insurance
Policies.

SECTION 4.19. LITIGATION. There is no dispute, suit, action, proceeding, inquiry
or investigation (a "Claim") against or involving any of the Seller Parties or
any of their properties or rights, pending or, to the Knowledge of the Seller
Parties, threatened (including, without limitation any suit, action, proceeding
or investigation pursuant to Title 11 of the Civil Rights Act of 1964, the
Americans with Disabilities Act, the Age Discrimination in Employment Act, the
Family and Medical Leave Act of 1993, or any other federal, state or local law
regulating employment) nor do the Seller Parties know of any facts which might
result in any such Claim. There is no Claim pending, or, to the Seller Parties'
Knowledge, threatened, against any Physician or Service Provider which could, by
operation of law, through contract or otherwise, result in a Claim against any
Seller Party, and no Seller Party has any Knowledge of any facts which could
result in such a Claim. Except as set forth on Schedule 4.19, there is no
judgment, decree, injunction, rule or order of any Governmental Entity or any
other Person (including, without limitation, any arbitral tribunal) outstanding
against any Seller Party and no Seller Party is not in violation of any term of
any judgment, decree, injunction or order outstanding against it. Furthermore,
there is no Claim by or before any Governmental Entity or other Person pending
or, to the Knowledge of the Seller Parties, threatened, which questions or
challenges the validity of this Agreement or any action taken or to be taken by
any Seller Party pursuant to this Agreement or in connection with the
transactions contemplated hereby, nor is there any basis for any such Claim.

                                       21
<PAGE>
SECTION 4.20. CONTRACTS, OBLIGATIONS AND COMMITMENTS. Schedule 4.20 sets forth a
list of all contractual agreements, whether written or oral, relating to or
affecting the Assets, the Hospital, the MOB and/or the operation of the Business
to which any Seller Party is a party (the "Contracts"). The Seller Parties have
provided to the Purchaser Parties complete and correct copies of all of the
Contracts. Except as set forth on Schedule 4.20, (i) the Contracts are legally
valid, binding and enforceable against the applicable Seller Party (and, to the
Seller Parties' Knowledge, against the other parties thereto) in accordance with
their respective terms and are in full force and effect; (ii) there are no
defaults by any Seller Party, or to the Seller Parties' Knowledge, any other
party to the Contracts; (iii) no Seller Party has received notice of any
default, offset, counterclaim or defense under any Contract; and (iv) no
condition or event has occurred which with the passage of time or the giving of
notice or both would constitute a default or breach by any Seller Party of the
terms of any Contract.

SECTION 4.21. INTANGIBLE PROPERTY. A true and complete list of the trademarks,
service marks, and other intangible assets of the Seller Parties used in the
operation of the Business and the Hospital and the MOB is set forth on Schedule
4.21 (the "Intangible Property"). The Seller Parties own, or possess adequate,
enforceable licenses or other rights to use, all of the Intangible Property, and
no rights thereto have been granted to others by any Seller Party. Except as set
forth on Schedule 4.21, all of the Intangible Property is owned or used by the
Seller Parties' free and clear of all assignments, licenses, restrictions,
encumbrances, charges or claims for infringement, and none is subject to any
outstanding order, decree, judgment, stipulation or charge. There is no
unauthorized use, disclosure, infringement or misappropriation of any of the
Intangible Property by any third party. The Seller Parties' use of the
Intangible Property does not infringe upon or otherwise violate the rights of
others. No one has asserted to any Seller Party that the use of the Intangible
Property by the Seller Parties infringes upon the patents, trade secrets, trade
names, trademarks, service marks, copyrights or other intellectual property
rights of any other Person and no Seller Party has any Knowledge of any fact or
circumstance which could provide the basis for any such assertion.

SECTION 4.22. EMPLOYEES AND EMPLOYEE RELATIONS.

(a) Schedule 4.22(a) contains a current, correct and complete list of the names
and current hourly wage, monthly salary and other compensation of all employees
who are or who will provide services at the Hospital or the MOB (collectively,
the "Business Employees"), together with a summary (containing estimates to the
extent necessary) of the individual's existing bonuses, additional compensation
and other benefits (whether current or deferred), if any, accrued, paid or
payable to each such individual for services rendered or to be rendered through
the fiscal period ending December 31, 2004. Except as set forth on Schedule
4.22(a), all of the Hospital Employees are "at will" employees. Except as set
forth on Schedule 4.22(a), no Seller Party is a party to any oral (express or
implied) or written: (i) employment agreement, or (ii) agreement that contains
any severance or termination pay obligations, with any Business Employee. The
Seller Parties have provided true, correct and current copies (or, if not
written, accurate descriptions of the parties and terms) of such agreements to
the Purchaser Parties.

(b) Except as set forth on Schedule 4.22(b), no Business Employee is represented
by any labor union, trade association or other employee organization, no demand
for recognition has been made by any labor union with respect to the Business
Employees, and there is not and has

                                       22
<PAGE>
not been any labor union organizing activity at the Hospital during the periods
it has been operated by any Seller Party. Except as set forth on Schedule
4.22(b), no Seller Party is a party to any collective bargaining agreement or
understanding with any labor union, trade association or other employee
organization with respect to any Business Employee and no such agreements are
currently being proposed and/or negotiated.

(c) Except as set forth on Schedule 4.22(c), there is no labor dispute, work
stoppage, strike, slowdown, walkout, lockout, or any other interruption or
disruption of operations at the Hospital or the MOB as a result of labor
disputes or disturbances with respect to the Business Employees and there is no
investigation, grievance, arbitration, complaint, claim or other dispute or
controversy (collectively, the "Labor Proceeding") pending or threatened,
between any Seller Party and any present or former Business Employee, nor have
any discharges or terminations of any former Business Employee occurred which
would form the basis for any claim of discrimination against any Seller Party.
Except as set forth on Schedule 4.22(c), no Seller Party has any Knowledge of
any facts or past, current or contemplated event that could form the basis for
any such Labor Proceeding, nor has there been any such Labor Proceeding within
the past twelve (12) months.

(d) Except as set forth on Schedule 4.22(d), no Seller Party has received any
notice that any vice president, director or director-level employee, or higher,
of any Seller Party or any group of Business Employees, has any plans to
terminate his or her employment or affiliation with any Seller Party.

(e) Each Seller Party has complied with and is currently in compliance with, and
no Seller Party has received any notice of noncompliance with, any and all
applicable laws relating to the employment of labor, including, without
limitation, any provisions relating to wages, hours, equal employment,
occupational safety and health, workers' compensation, unemployment insurance,
collective bargaining, immigration, affirmative action and the payment and
withholding of social security and other taxes. Each Seller Party has withheld
all amounts required by law or agreement to be withheld from the wages or
salaries of the Business Employees, and no Seller Party is liable for any
arrears of any tax or penalties for failure to comply with the foregoing.

(f) Schedule 4.22(f) sets forth each Employee Pension Benefit Plan (as defined
in Section 3(2) of ERISA) maintained by any Seller Party (each a "Seller Party
Plan") and applicable to the Business Employees. The Seller Parties are in
compliance in all material respects with all applicable laws and regulations
respecting such Seller Party Plans.

SECTION 4.23. COMPLIANCE WITH LAW. Each Seller Party (a) is in compliance in all
material respects with every applicable law, rule, regulation, ordinance,
license, permit and other governmental action and authority and every order,
writ, and decree of every Governmental Entity in connection with the ownership,
conduct, operation and maintenance of the Business and its ownership and use of
its assets and no event has occurred or circumstance exists which (with notice
or lapse of time) would result in any noncompliance with any such law, rule,
regulation, ordinance, license permit, order, writ or decree; and (b) has timely
made or given all filings and notices required to be made by such Seller Party
with the regulatory agencies of any Governmental Entity.

                                       23
<PAGE>
SECTION 4.24. HILL-BURTON OBLIGATIONS.

(a) Except as set forth on Schedule 4.24, neither any Seller Party, nor, to the
Knowledge of the Seller Parties, any predecessor in interest of any Seller
Party, has received any loans, grants or loan guarantees pursuant to the United
States Hill-Burton Act (42 U.S.C. 291a, et seq.) program, the Health Professions
Educational Assistance Act, the Nurse Training Act, the National Health Pharmacy
and Resources Development Act or the Community Mental Health Centers Act. All of
the obligations set forth on Schedule 4.24 have been fully satisfied. The
transactions contemplated hereby will not result in any obligation of any
Purchaser Party to repay any such loan, grant or loan guarantee or to provide
uncompensated care in consideration thereof.

(b) None of the Assets are subject to any liability in respect of amounts
received by any Seller Party or others for the purchase or improvement of the
Assets or any part thereof under restricted or conditioned grants or donations,
including monies received under the Public Health Service Act, 42 U.S.C. Section
291, et seq.

SECTION 4.25. MEDICAL STAFF MATTERS. Except as set forth on Schedule 4.25, there
are no pending or, to the Knowledge of the Seller Parties, threatened
investigations, appeals, challenges, disciplinary or corrective actions, or
disputes involving applicants to the medical staff of the Hospital, current
members of the medical staff of the Hospital or affiliated health professionals.
Since the Balance Sheet Date, no member of the medical staff of the Hospital has
resigned or been terminated therefrom and no Seller Party has received notice
that any Physician or medical staff member intends to resign from its medical
staff. For confidentiality purposes, all persons identified on Schedule 4.25 are
identified by a hospital-assigned number rather than name. True and correct
copies of Medical Staff Bylaws of the Hospital, the Hospital's Medical Staff
Rules and Regulations, and the Hospital's Medical Staff Hearing Procedures, all
as presently in effect, have been previously delivered by the Seller Parties to
the Purchaser Parties.

SECTION 4.26. BROKERS. No Person is or will be entitled to any brokerage,
finder's or other fee, commission or payment in connection with or as a result
of the transactions contemplated by this Agreement based upon arrangements made
by or on behalf of any Seller Party.

SECTION 4.27. RECORDS. True, complete and current copies of each Seller Party's
Governing Documents have been delivered to the Purchaser Parties prior to the
execution and delivery of this Agreement. The books of account, minute books,
stock record books and other records of each Seller Party, all of which have
been made available to the Purchaser Parties, are complete and correct. The
minute books of each Seller Party contain records of all meetings and other
corporate actions of the directors and shareholders of such Seller Party, and
have been delivered to the Purchaser Parties prior to the execution and delivery
of this Agreement.

SECTION 4.28. REPRESENTATIONS COMPLETE. The representations and warranties made
by the Seller Parties in this Agreement and the statements made in or
information contained on any Schedules or certificates furnished by any Seller
Party pursuant to this Agreement do not contain and will not contain, as of
their respective dates and as of the Closing Date, any untrue statement of a
material fact, nor do they omit or will they omit, as of their respective dates
or as of the

                                       24
<PAGE>
Closing Date, to state any material fact necessary in order to make the
statements contained herein or therein, in the light of the circumstances under
which they were made, not misleading.

                                    ARTICLE V
             REPRESENTATIONS AND WARRANTIES BY THE PURCHASER PARTIES

The Purchaser Parties hereby jointly and severally represent and warrant to the
Seller Parties as of the date hereof, and as of the Closing Date as follows:

SECTION 5.1. ORGANIZATION. MPT is a limited partnership duly formed, validly
existing and in good standing under the laws of the State of Delaware. The
Acquisition Sub is a limited liability company duly formed, validly existing and
in good standing under the laws of the State of Delaware and qualified to do
business in the State of California.

SECTION 5.2. AUTHORIZATION; ENFORCEMENT, ABSENCE OF CONFLICTS. Each Purchaser
Party has the requisite power and authority to execute, deliver and carry out
the terms of this Agreement, to consummate the transactions contemplated hereby
and to conduct its businesses as now being conducted. All actions required to be
taken by each to authorize the execution, delivery and performance of this
Agreement, all documents executed by the Purchaser Parties which are necessary
to give effect to this Agreement and all transactions contemplated hereby and
thereby, have been duly and properly taken or obtained. No other action on the
part of either Purchaser Party is necessary to authorize the execution, delivery
and performance of this Agreement, all documents necessary to give effect to
this Agreement and all transactions contemplated hereby and thereby. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not, with or without the giving of notice
and/or the passage of time: (i) violate or conflict with any provision of the
Governing Documents of either Purchaser Party; (ii) violate any provision of
law, statute, rule or regulation to which either Purchaser Party is subject;
(iii) violate or conflict with any judgment, order, writ or decree of any court
applicable to either Purchaser Party; (iv) violate or conflict with any law or
regulation applicable to either Purchaser Party; or (v) result in the breach or
termination of any provision of, or create rights of acceleration or constitute
a default under, the terms of any debt or obligation to which either Purchaser
Party is a party or by which either Purchaser Party is bound.

SECTION 5.3. BINDING AGREEMENT. This Agreement and all agreements to which any
Purchaser Party will become a party hereunder is and will constitute the valid
and legally binding obligations of such Purchaser Party, and are and will be
enforceable against such Purchaser Party in accordance with the respective terms
hereof or thereof, except as enforceability may be restricted, limited or
delayed by applicable bankruptcy, insolvency or other laws affecting creditors'
rights generally and except as enforceability may be subject to and limited by
general principles of equity.

SECTION 5.4. LITIGATION. There is no Claim pending or, to the Knowledge of the
Purchaser Parties, threatened against or affecting any Purchaser Party that has
or would reasonably be expected to have a material adverse effect on the ability
of the Purchaser Parties to perform their respective obligations under this
Agreement or any aspect of the transactions contemplated hereby.

                                       25
<PAGE>
SECTION 5.5. BROKERS. No Person is or will be entitled to any brokerage,
finder's or other fee, commission or payment in connection with or as a result
of the transactions contemplated by this Agreement based upon arrangements made
by or on behalf of the Purchaser Parties.

SECTION 5.6. COMPLIANCE WITH LAW. The Purchaser Parties, where applicable (a)
are in compliance with every applicable law, rule, regulation, ordinance,
license, permit and other governmental action and authority and every order,
writ, and decree of every Governmental Entity in connection with the ownership,
conduct, operation and maintenance of their businesses, and their ownership and
use of their assets, except where non-compliance would not prevent or impede the
Purchaser Parties from consummating the transactions contemplated hereby or the
ability of the Purchaser Parties to perform their respective obligations under
this Agreement and, to the Knowledge of the Purchaser Parties, no event has
occurred or circumstance exists which (without notice or lapse of time) would
result in any noncompliance with any such law, rule, regulation, ordinance,
license permit, order, writ or decree which would prevent or impede the
Purchaser Parties from consummating the transactions contemplated hereby; and
(b) have timely made or given all filings and notices required to be made by the
Purchaser Parties with the regulatory agencies of any Governmental Entity,
except where such failure would not prevent or impede the Purchaser Parties from
consummating the transactions contemplated hereby.

                                   ARTICLE VI
                                TITLE AND SURVEY

SECTION 6.1. SURVEY. MPT shall cause to be prepared, at Seller Parties' expense,
a current ALTA/ACSM Land Title Survey of the Real Property, prepared by a duly
licensed land surveyor. The survey shall be currently dated, shall show the
location on the Real Property of any improvements, fences, evidence of abandoned
fences, ponds, creeks, streams, rivers, easements, roads, rights-of-way, means
of ingress and egress, location of all utilities serving the Real Property, and
encroachments, and shall contain a legal description of the boundaries of the
Real Property by metes and bounds and the appropriate flood zone designation and
the total number of acres constituting the Real Property. The surveyor shall
certify to the Purchaser Parties and to the Title Company that the survey is
correct and that there are no visible discrepancies, conflicts, encroachments,
overlapping of improvements, fences, evidence of abandoned fences, ponds,
creeks, streams, rivers, easements, roads or rights-of-way except as are shown
on the survey plat. Any and all matters shown on such survey shall be legibly
identified by appropriate volume and page recording references with dates of
recording noted. If MPT shall disapprove such survey for any reason in MPT's
sole discretion, MPT may either (i) treat such objection as a title objection
and request that it be cured, or (ii) terminate this Agreement and the parties
hereto shall have no further liability or obligations hereunder, expect as
otherwise expressly set forth herein. If the Seller Parties are unable to cure
any objection to the survey within ten (10) days following delivery of notice to
Seller Parties thereof, then MPT may terminate this Agreement upon written
notice to the Seller Parties.

SECTION 6.2. TITLE INSURANCE. MPT will cause to be prepared, at Seller Parties'
expense, a title commitment for the issuance of an ALTA Owner's Policy Form
dated October 17, 1992, issued by a title insurance company acceptable to MPT
and qualified to insure titles in the State of California (the "Title Company"),
in the amount of the Purchase Price, covering title to the Real Property at a
date not earlier than the date hereof and showing good and marketable title,
subject

                                       26
<PAGE>
only to the Permitted Encumbrances. All of the standard exceptions within the
policy and the exceptions for mechanic's and materialmen's liens and the survey
exception shall be deleted. If MPT shall disapprove any items stated in the
Title Commitment or the Exception Documents, MPT may either (i) treat such
objection as a title objection and request that it be cured, or (ii) terminate
this Agreement and, upon such termination, the parties hereto shall have no
further liability or obligations hereunder, except as otherwise expressly
provided herein. If the Seller Parties are unable to cure any exception or
objection to title that is not a Permitted Encumbrance within ten (10) days
following delivery of notice to the Seller Parties thereof, then MPT may
terminate this Agreement upon written notice to Seller Parties.

                                   ARTICLE VII
                              PRE-CLOSING COVENANTS

From and after the execution and delivery of this Agreement to and including the
Closing Date, the applicable party shall observe the following covenants:

SECTION 7.1. NO SHOP. Neither any Seller Party nor any investment banker,
attorney, accountant, representative or other Person retained by or on behalf of
any Seller Party, shall directly or indirectly, initiate contact with, respond
to, solicit or encourage any inquiries, proposals or offers by, or participate
in any discussions or negotiations with, enter into any agreement with, disclose
any information concerning any Seller Party or the Assets to, afford any access
to the properties, books or records of any Seller Party to, or otherwise assist,
facilitate or encourage, any Person in connection with any possible proposal
regarding a sale, lease, transfer, disposition or other transaction related to
or affecting all or any portion of the Assets (including all or any portion of
the Real Property). The Seller Parties shall notify MPT immediately if any
discussions or negotiations are sought to be initiated, any inquiry or proposal
is made, or any such information is requested.

SECTION 7.2. ACCESS; CONFIDENTIALITY.

(a) Between the date hereof and the Closing, the Seller Parties shall (i) afford
the Purchaser Parties and their authorized representatives full and complete
access to Seller Parties' employees, (including the Business Employees) medical
staff, and other agents and representatives and during normal working hours to
all books, records, offices and other facilities of the Seller Parties, (ii)
permit the Purchaser Parties to make such inspections and to make copies of such
books and records as they may reasonably require and (iii) furnish the Purchaser
Parties with such financial and operating data and other information related to
the Hospital, the Business or the Seller Parties as the Purchaser Parties may
from time to time reasonably request. The Purchaser Parties and their authorized
representatives shall conduct all such inspections under the supervision of
personnel of the Seller Parties in a manner that will minimize disruptions to
the business and operations of the Seller Parties and in a manner as to maintain
the confidentiality of this Agreement.

(b) The Purchaser Parties and their authorized representatives (including their
designated engineer, architects, surveyors and/or consultants) may, upon
reasonable notice and at any time enter into and upon all or any portion of the
Real Property in order to investigate and assess, as the Purchaser deem
necessary or appropriate in their sole and absolute discretion, the condition

                                       27
<PAGE>
(including the structural and environmental condition) of the Assets. The Seller
Parties shall cooperate with the Purchaser Parties and their authorized
representatives in conducting such investigation, shall allow the Purchaser
Parties and their authorized representatives full access to the Assets, together
with full permission to conduct such investigation, and shall provide to the
Purchaser Parties and their authorized representatives all information
maintained by the Seller Parties and related to the condition of the Assets,
including the Real Property, and all plans, soil or surface or ground water
tests or reports, any environmental investigation results, reports or
assessments previously or contemporaneously conducted or prepared by or on
behalf of, or in the possession of or reasonably available to the Seller Parties
or any of their engineers, consultants or agents and all other information
relating to environmental matters in respect of their properties and businesses.

(c) The provisions of that certain Confidentiality Agreement dated November 22,
2004 among the parties (the "Confidentiality Agreement") shall remain binding
and in full force and effect until the Closing. Notwithstanding anything to the
contrary contained herein or in the Confidentiality Agreement, the
confidentiality obligations as they relate to the transactions contemplated by
this Agreement shall not apply to the purported or claimed Federal income tax
treatment of the transactions (the "Tax Treatment") or to any fact that may be
relevant to understanding the purported or claimed Federal income tax treatment
of the transactions (the "Tax Structure"), and each party hereto (and any
employee, representative, or agent of any party hereto) may disclose to any and
all persons, without limitation of any kind, the Tax Treatment and Tax Structure
of the transactions contemplated by this Agreement and any materials of any kind
(including any tax opinions or other tax analyses) that relate to the Tax
Treatment or Tax Structure. In addition, each party hereto acknowledges that it
has no proprietary or exclusive rights to any tax matter or tax idea related to
the transactions contemplated by this Agreement. The preceding sentence is
intended to ensure that the transactions contemplated by this Agreement shall
not be treated as having been offered under conditions of confidentiality for
purposes of the Confidentiality Regulations and shall be construed in a manner
consistent with such purpose. The information contained herein, in the Schedules
hereto or delivered to the Purchaser Parties or its authorized representatives
pursuant hereto shall be subject to the Confidentiality Agreement as Information
(as defined and subject to the exceptions contained therein) until the Closing
and, for that purpose and to that extent, the terms of the Confidentiality
Agreement are incorporated herein by reference.

SECTION 7.3. SCHEDULE UPDATES. From the date hereof until the Closing Date, the
Purchaser Parties, on the one hand, and the Seller Parties on the other hand,
shall immediately advise the other in writing of any additions or changes to any
Schedule to reflect any deficiencies or inaccuracies in such Schedule or to
reflect circumstances or matters which occur after the date of this Agreement
which, if existing prior to such date, would have been required to be described
on such Schedule; provided, however, that no additions or changes made to any
Schedule by any party to correct deficiencies or inaccuracies on such Schedule
shall be deemed to cure any breach or inaccuracy of a representation or
warranty, covenant or agreement or to satisfy any condition unless otherwise
agreed to in writing by the other party, but provided further, however, that an
addition or change made to any Schedule by any Party to reflect circumstances or
matters which occur after the date of this Agreement shall be deemed to cure a
breach or inaccuracy of a representation or warranty, covenant or agreement, but
shall not be deemed to satisfy any condition unless agreed to in writing by the
other party.

                                       28
<PAGE>
SECTION 7.4. CONDUCT OF BUSINESS BY THE SELLER PARTIES PENDING THE CLOSING. The
Seller Parties covenant and agree that, during the period from the date hereof
and continuing until the earlier of the termination of this Agreement or the
Closing Date, unless the Purchaser Parties shall otherwise agree in writing, the
Seller Parties shall conduct their businesses only in, and the Seller Parties
shall not take any action except in, the ordinary course of business and in a
manner consistent with past practice and in compliance in all material respects
with all applicable laws and regulations, and that the Seller Parties shall use
reasonable best efforts to preserve substantially intact the business
organization of each Seller Party, to keep available the services of their
current officers, employees and consultants and to preserve the present
relationships of each Seller Party with patients, suppliers and other persons
with which each Seller Parties have significant business relations. By way of
amplification and not limitation, except as contemplated by this Agreement or
set forth on Schedule 7.4, no Seller Party shall, during the period from the
date hereof and continuing until the earlier of the termination of this
Agreement or the Closing Date, directly or indirectly do, or propose to do, any
of the following without the prior written consent of MPT:

(a) amend, repeal or otherwise change in any way its Governing Documents;

(b) make or revoke any Tax election related to or affecting the Assets;

(c) fail to perform its obligations in all respects under agreements relating to
or respecting its assets, properties and rights;

(d) reduce the coverage of, fail to timely renew or pay the premiums on or
cancel any insurance policy;

(e) cause to lapse or fail to renew any license and certification necessary to
conduct its business;

(f) fail to timely make all applicable filings with Governmental Entities;

(g) create, assume or, other than those presently in existence, permit to exist
any Lien upon any of the Assets;

(h) purchase, sell, assign, lease or otherwise acquire, transfer or dispose of
any material assets, except in the ordinary course of business and consistent
with its past practice;

(i) enter into or agree to enter into any agreement or arrangements granting any
rights to purchase any of its assets, properties or rights, except for purchases
of inventory in the ordinary course of business and consistent with its past
practice;

(j) engage in any business other than the Business;

(k) terminate or modify any contract, lease or other agreement to which it is a
party (excluding expiration or satisfaction in accordance with the terms of such
contract or agreement);

(l) waive any right of substantial value other than in exchange for reasonable
consideration; or

                                       29
<PAGE>
(m) take, agree or offer, in writing or otherwise, to take, any of the actions
described in Sections 7.4 (a) through (l) above, or any action which would make
any of the representations or warranties of any Seller Party contained in this
Agreement untrue, incorrect or incomplete or prevent any Seller Party from
performing or cause any Seller Party not to perform its covenants hereunder, in
each case, such that the conditions set forth in Sections 8.2(a) or 8.2(b), as
the case may be, would not be satisfied.

SECTION 7.5. COOPERATION. Subject to compliance with applicable law, from the
date hereof until the Closing Date, (a) the Seller Parties shall confer on a
regular and frequent basis with one or more representatives of the Purchaser
Parties to report operational matters that are material and the general status
of ongoing operations and (b) each of the Purchaser Parties and the Seller
Parties shall promptly provide the other or their counsel with copies of all
filings made by such party with any Governmental Entity in connection with this
Agreement and the transactions contemplated hereby.

SECTION 7.6. HCP PURCHASE. The parties acknowledge that the dispute between
Seller Parties and HCP regarding, among other matters, the purchase price to be
paid for the Real Property in connection with the exercise of the option under
the HCP Lease (the "Dispute") has now been settled. Seller parties shall keep
Purchaser Parties apprised, promptly following the occurrence of same, of all
developments with respect to the Dispute and the settlement thereof.

SECTION 7.7. REGULATORY AND OTHER AUTHORIZATIONS, NOTICES AND CONSENTS.

(a) Each party hereto shall use all commercially reasonable efforts to obtain
all authorizations, consents, orders and approvals of all Governmental Entities
and officials that may be or become necessary for its execution and delivery of,
and the performance of its obligations pursuant to, this Agreement and each such
party will cooperate fully with the other parties hereto in promptly seeking to
obtain all such authorizations, consents, orders and approvals.

(b) The Seller Parties shall give promptly such notices to third parties and use
its commercially reasonable efforts to obtain such third party consents and
estoppel certificates as MPT may in its sole and absolute discretion deem
necessary or desirable in connection with the transactions contemplated by this
Agreement, including, without limitation, all third party consents that are
necessary or desirable in connection with the transfer of the Assumed Contracts.

(c) The Purchaser Parties shall cooperate and use commercially reasonable
efforts to assist the Seller Parties in giving such notices and obtaining such
consents and estoppel certificates; provided, however, that the Purchaser
Parties shall have no obligation to give any guarantee or other consideration of
any nature in connection with any such notice, consent or estoppel certificate
or to consent to any change in the terms of any Assumed Contract which MPT in
its sole and absolute discretion may deem adverse to the interests of the
Purchaser Parties.

(d) Anything in this Agreement to the contrary notwithstanding, this Agreement
shall not constitute an agreement to assign any Assumed Contract listed on
Schedule 7.7(d) if an attempted assignment thereof, without the consent of the
other party thereto, would constitute a breach or other contravention thereof,
noncompliance by any Seller Party or its affiliates

                                       30
<PAGE>
thereunder or in any way adversely affect the rights of any Purchaser Party
thereunder. The Seller Parties and the Purchaser Parties agree that, in the
event any consent, approval or authorization necessary or desirable to preserve
for the Purchaser Parties any right or benefit under any such Assumed Contract
is not obtained prior to the Closing, the Seller Parties will, subsequent to the
Closing, cooperate with the Purchaser Parties in attempting to obtain such
consent, approval or authorization as promptly thereafter as practicable. If
such consent, approval or authorization cannot be obtained, the Seller Parties
will use commercially reasonable efforts to provide the Purchaser Parties with
the rights and benefits of such affected Assumed Contract for the term of such
Assumed Contract, and, if the Seller Parties provide such rights and benefits,
the Purchaser Parties shall assume the obligations and burdens thereunder in
accordance with this Agreement, including, subcontracting, sublicensing, or
subleasing to the Purchaser Parties, or under which the Seller Parties would
enforce for the benefit of the Purchaser Parties, with the Purchaser Parties
assuming the applicable Seller Party's obligations, any and all rights of the
applicable Seller Party against a third party thereto.

SECTION 7.8. MUTUAL COVENANTS. The parties shall use their good faith reasonable
efforts to satisfy the conditions to the closing of the transactions
contemplated hereby. Without limiting the generality of the foregoing, the
respective parties shall execute and/or deliver, or use their respective good
faith reasonable efforts to cause to be executed and/or delivered, the documents
contemplated to be executed and/or delivered by them at Closing.

SECTION 7.9. PUBLIC ANNOUNCEMENTS. Prior to the Closing Date, the parties agree
to consult with each other before any party hereto or any of their respective
affiliates issues any press release or makes any public statement with respect
to this Agreement or the transactions contemplated hereby and, except as may be
required by applicable law or any listing agreement with any national securities
exchange, will not issue, or permit to be issued, any such press release or
make, or permit to be made, any such public statement prior to such
consultation.

                                  ARTICLE VIII
                               CLOSING CONDITIONS

SECTION 8.1. CONDITIONS TO THE OBLIGATIONS OF THE SELLER PARTIES. The
obligations of the Seller Parties to effect the transactions contemplated hereby
shall be further subject to the fulfillment of the following conditions, any one
or more of which may be waived by the Seller Parties:

(a) All of the representations and warranties of Purchaser Parties set forth in
this Agreement shall be true and correct when made and as of the Closing Date as
if made on the Closing Date.

(b) The Purchaser Parties shall have delivered, performed, observed and complied
in all material respects with all of the items, instruments, documents,
covenants, agreements and conditions required by this Agreement to be delivered,
performed, observed and complied with by them prior to, or as of, the Closing.

(c) The Purchaser Parties shall have executed, where applicable, and delivered
to the Seller Parties the documents referenced in Section 9.3 hereof.

                                       31
<PAGE>
SECTION 8.2. CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER PARTIES. The
obligations of the Purchaser Parties to effect the transactions contemplated
hereby shall be further subject to the fulfillment of the following conditions,
any one or more of which may be waived by the Purchaser Parties:

(a) All of the representations and warranties of Seller Parties set forth in
this Agreement shall be true and correct when made and as of the Closing Date as
if made on the Closing Date.

(b) The Seller Parties shall have delivered, performed, observed and complied
with all of the items, instruments, documents, covenants, agreements and
conditions required by this Agreement to be delivered, performed, observed and
complied with by them prior to, or as of, the Closing.

(c) No Seller Party shall have suffered any change, event or circumstance which
has had, or could have, a Material Adverse Effect.

(d) The Purchaser Parties shall have satisfactorily completed their due
diligence investigations of the Assets and shall be satisfied with the results
of such investigations.

(e) All necessary approvals, consents, estoppel certificates and the like of
third parties to the validity and effectiveness of the transactions contemplated
hereby have been obtained.

(f) No portion of the Assets shall have been damaged or destroyed by fire or
casualty.

(g) No condemnation, eminent domain or similar proceedings shall have been
commenced or threatened with respect to any portion of the Assets.

(h) The Purchaser Parties shall have received copies of all permits, licenses
and other approvals of governmental authorities required for the operation of
the Assets for their intended uses and written evidence satisfactory to the
Purchaser Parties that the operation and use of the Hospital and the MOB are in
accordance with all applicable governmental requirements.

(i) The Purchaser Parties shall have received evidence that the Seller Parties
are maintaining insurance on the Assets and that the Purchaser Parties are named
as additional insureds and, where applicable, loss payees.

(j) The Seller Parties shall have executed where applicable, and delivered to
Purchaser Parties the documents referenced in Section 9.2 hereof.

(k) There shall not have been instituted by any creditor of any Seller Party,
any Governmental Entity or any other third party, any suit, action or proceeding
which would affect the Assets or seek to restrain, enjoin or invalidate the
transactions contemplated by this Agreement.

(l) Prime shall have purchased and acquired the Real Property pursuant to the
terms and conditions of the HCP Lease.

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<PAGE>
(m) The Appraisal shall have been delivered and shall reflect an Appraised Value
that equals or exceeds the Purchase Price.

                                   ARTICLE IX
                                     CLOSING

SECTION 9.1. CLOSING DATE. The closing of the purchase and sale of the Assets
pursuant hereto (the "Closing") shall be handled through deliveries by mail into
escrow on February 24, 2005 (the actual date of closing being herein referred to
as the "Closing Date"), or on such other date (the "Closing Date") and such
other place as the parties hereto shall mutually agree.

SECTION 9.2. SELLER PARTIES' CLOSING DATE DELIVERABLES. On the Closing Date, the
Seller Parties shall deliver to the Purchaser Parties the documents listed
below.

(a) Duly executed bills of sale and assignments transferring all Assets other
than the Real Property in form and substance satisfactory to MPT;

(b) A duly executed general warranty deed in substantially the form as Exhibit
9.2(b) (the "Deeds") conveying the Real Property to the Acquisition Sub;

(c) A certified copy of the resolutions of the governing body of each Seller
Party dated as of the date hereof and authorizing such Seller Party's execution,
delivery and performance of this Agreement and all other documents to be
executed in connection herewith;

(d) Certificates of existence and good standing of each Seller Party from the
secretary of state of such Seller Party's state of incorporation or
organization, dated the most recent practical date prior to the Closing Date;

(e) Certificates of good standing and foreign qualification of each Seller Party
from the secretary of state of the State of California dated the most recent
practical date prior to the Closing Date;

(f) The Title Commitment and Title Policy in form and substance satisfactory to
MPT;

(g) A Survey dated the most recent practical date prior to the Closing Date in
form and substance satisfactory to MPT;

(h) A Phase I Environmental Site Assessment Report dated the most recent
practical date prior to the Closing Date in form and substance satisfactory to
MPT (and a Phase II if recommended by the Phase I Report);

(i) Property condition and seismic reports for the Real Property, dated the most
recent practical date prior to the Closing Date and in form and substance
satisfactory to MPT;

(j) A Zoning Compliance Letter/Certificate dated the most recent practical date
prior to the Closing Date in form and substance satisfactory to MPT;

(k) Tenant Estoppel Certificates in form and substance satisfactory to MPT;

                                       33
<PAGE>
(l) Owner's Affidavits in form and substance satisfactory to MPT;

(m) The Search Reports dated the most recent practical date prior to the Closing
Date in form and substance satisfactory to MPT;

(n) A Non-Foreign Affidavit in form and substance satisfactory to MPT;

(o) The Lease, together with a Memorandum of Lease Agreement in form and
substance satisfactory to MPT;

(p) A Lease Guaranty Agreement substantially in the form of Exhibit 9.2(p)

(q) The Assignment of Rents and Leases in substantially the form attached hereto
as Exhibit 9.2(q);

(r) The Security Agreement in substantially the form attached hereto as Exhibit
9.2(r);

(s) The Amendments to the Tenant Leases in form and substance satisfactory to
MPT.

(t) The legal opinion of Robert L. B. Diener as counsel for the Seller Parties,
substantially in the form attached hereto as Exhibit 9.2(t);

(u) At the Closing, each Seller Party shall have furnished to the Purchaser
Parties a certificate dated the Closing Date signed by such Seller Party to the
effect that all of the representations and warranties of each Seller Party
contained in the Agreement (considered collectively) and each of these
representations and warranties (considered individually) remain in all respects
true and correct as of the Closing Date as if made on such date and that such
Seller Party has performed and satisfied in all material respects all covenants
and conditions required by this Agreement to be performed or satisfied by such
Seller Party on or prior to Closing;

(v) All necessary approvals, consents, estoppel certificates and the like of
third parties or Governmental Entities to the validity and effectiveness of the
transactions contemplated hereby;

(w) The Noncompete Agreements substantially in the form attached as Exhibit
9.2(w);

(x) The Expansion Commitment Letter in the form attached hereto as Exhibit
9.2(x) (the "Expansion Commitment Letter"); and

(y) Such other instruments and documents as the Purchaser Parties reasonably
deem necessary to effect the transactions contemplated hereby.

SECTION 9.3. PURCHASER PARTIES' CLOSING DATE DELIVERABLES. On the Closing Date,
the Purchaser Parties shall deliver to the Seller Parties the documents listed
below.

(a) A certified copy of the resolutions of the governing body of each Purchaser
Party dated as of the date hereof authorizing the execution, delivery and
performance of this Agreement and all other documents to be executed in
connection herewith;

                                       34
<PAGE>
(b) Certificates of existence and good standing of each Purchaser Party from the
Delaware Secretary of State of the State of Delaware, dated the most recent
practical date prior to the Closing Date;

(c) Certificates of good standing and foreign qualification of the Acquisition
Sub from the secretary of state of the State of California, dated the most
recent practical date prior to the Closing Date;

(d) The Lease, together with a Memorandum of Lease in form and substance
satisfactory to MPT;

(e) The Assignment of Rents and Leases in substantially the form attached hereto
as Exhibit 9.2(q);

(f) An Opinion of Baker Donelson, Bearman, Caldwell & Berkowitz, P.C., as
counsel for the Purchaser Parties substantially in the form attached as Exhibit
9.3(f);

(g) At the Closing, each Purchaser Party shall have furnished to the Seller
Parties a certificate dated the Closing Date signed by such Purchaser Party to
the effect that all of the representations and warranties of such Purchaser
Party contained in the Agreement (considered collectively) and each of these
representations and warranties (considered individually) remain in all respects
true and correct as of the Closing Date as if made on such date and that such
Purchaser Party has performed and satisfied in all material respects all
covenants and conditions required by this Agreement to be performed or satisfied
by such Purchaser on or prior to Closing;

(h) The Expansion Commitment Letter;

(i) Any bills of sale and assignments requiring the signature of any Purchaser
Party;

(j) The Security Agreement in substantially the form attached hereto as Exhibit
9.2(r); and

(k) The Noncompete Agreements substantially in the form attached as Exhibit
9.2(w).

                                    ARTICLE X
                                   TERMINATION

SECTION 10.1. TERMINATION. Notwithstanding anything to the contrary in this
Agreement, the remaining obligations of the parties hereunder may be terminated
and the transactions contemplated hereby abandoned at any time prior to Closing:
(i) by mutual written consent of the parties; (ii) by the Seller Parties if the
conditions set forth in Section 8.1 shall not have been satisfied on or before
March 31, 2004; or (iii) by the Purchaser Parties if the conditions set forth in
Section 8.2 shall not have been satisfied on or before March 31, 2004.

SECTION 10.2. NOTICE AND EFFECT. In the event of the termination of this
Agreement pursuant to this Article X, the party terminating this Agreement shall
give prompt written notice thereof to the parties, and the transactions
contemplated hereby shall be abandoned, without further action by any party.
Each filing, application and other submission relating to the transactions
contemplated hereby shall, to the extent practicable, be withdrawn from the
person to which it

                                       35
<PAGE>
was made. The confidentiality provisions set forth in Article VII of this
Agreement shall survive any termination of this Agreement. Notwithstanding any
statement contained in this Agreement to the contrary, termination of this
Agreement shall not relieve any party from liability for any breach or violation
of this Agreement that arose prior to such termination.

                                   ARTICLE XI
                         CERTAIN POST-CLOSING COVENANTS

SECTION 11.1. POST-CLOSING ACCESS TO INFORMATION. The Parties acknowledge that,
subsequent to Closing, each may need access to the Assets and to information,
documents or computer data in the control or possession of the other for
purposes of concluding the transactions contemplated herein and for audits,
investigations, compliance with governmental requirements, regulations and
requests, the prosecution or defense of third party claims. Accordingly, the
Parties agree that they will make available to the other and their agents,
independent auditors and/or governmental entities such documents and information
as may be available relating to the Assets and the Hospital and will permit the
other to make copies of such documents and information at the requesting party's
expense.

SECTION 11.2. PREM REDDY EMPLOYMENT AGREEMENT. So long as the Lease remains in
effect, the term of the Employment Agreement dated January 1, 2005 between
Desert Valley Operator and Prem Reddy, M.D. shall not be reduced or any other
material modification made thereto without the prior written consent of MPT.

                                   ARTICLE XII
                                 INDEMNIFICATION

SECTION 12.1. SELLER PARTIES AGREEMENT TO INDEMNIFY.

(a) Subject to the limitations set forth in this Article, the Seller Parties
jointly and severally agree to indemnify, defend and hold harmless the Purchaser
Parties, their affiliates and their respective officers, directors, members,
(general and limited) partners, shareholders, employees, agents and
representatives (collectively, the "Purchaser Indemnified Parties") from and
against all demands, claims, actions, losses, damages, liabilities, penalties,
Taxes, costs and expenses (including, without limitation, attorneys' and
accountants' fees, settlement costs, arbitration costs and any reasonable other
expenses for investigating or defending any action or threatened action)
asserted against or incurred by the Purchaser Indemnified Parties or any of them
arising out of or in connection with or resulting from (i) any breach of,
misrepresentation associated with or failure to perform under any covenant,
representation, warranty or agreement under this Agreement or the other
agreements contemplated hereby on the part of any Seller Party; or (ii) any
Excluded Liabilities (including Taxes arising prior to Closing and any Purchaser
Damages arising out of or relating to the Seller Parties' purchase of the Real
Estate from HCP) (collectively, "Purchaser Damages").

(b) The indemnification of the Purchaser Indemnified Parties by the Seller
Parties provided for under this Article XII shall be limited in certain respects
as follows: (i) the right of the Purchaser Indemnified Parties to seek
indemnification under this Section 12.1 shall terminate on the third anniversary
of Closing (the "Purchaser's Indemnity Periods"), except that the Purchaser'

                                       36
<PAGE>
Indemnity Period shall terminate on the fifth anniversary of the Closing Date
for claims under Sections 4.15 and 4.17 and (ii) the Seller shall not be
required to indemnify the Purchaser Indemnified Parties for indemnification
claims under this Section 12.1 unless and until the aggregate amount of all
losses resulting in Purchaser' Damages exceeds One Hundred Thousand and No/100
Dollars ($100,000.00) (the "Minimum Aggregate Liability Amount") in which event
the foregoing indemnification obligation shall apply to the aggregate amount of
Purchaser Damages that exceeds One Hundred Thousand and No/100 Dollars
($100,000.00); provided, however, that the maximum liability of the Seller
Parties under this Agreement shall be an amount equal to the Purchase Price. The
foregoing limitations on time and amount shall not apply to any Purchaser
Damages arising or resulting from (i) any act or omission of any Seller Party
which constitutes fraud, (ii) any breach by any Seller Party of its post-closing
covenants; or (iii) the Excluded Liabilities.

SECTION 12.2. THE PURCHASER PARTIES' AGREEMENT TO INDEMNIFY.

(a) Subject to the limitations set forth in this Article, the Purchaser Parties
jointly and severally agree to indemnify, defend and hold harmless the Seller
Parties, its and representatives (collectively, the "Seller Indemnified
Parties") from and against all demands, claims, actions, losses, damages,
liabilities, penalties, Taxes, costs and expenses (including, without
limitation, reasonable attorneys' fees, settlement costs, arbitration costs and
any reasonable other expenses for investigating or defending any action or
threatened action) asserted against or incurred by any of the Seller Indemnified
Parties or any of them arising out of or in connection with or resulting from
(i) any breach of, misrepresentation associated with or failure to perform under
any covenant, representation, warranty or agreement under this Agreement or the
other agreements contemplated hereby on the part of any Purchaser Party; or (ii)
the use, ownership or operation of any of the Assets after Closing
(collectively, "Seller Damages").

(b) The indemnification of the Seller Indemnified Parties by the Purchaser
Parties provided for under this Article XII shall be limited in certain respects
as follows: (i) the right of the Seller Indemnified Parties to seek
indemnification under this Section 12.2 shall terminate on the first anniversary
of Closing (the "Seller Indemnity Period"), and (ii) the Purchaser Parties shall
not be required to indemnify the Seller Indemnified Parties for indemnification
claims under this Section 12.2 unless and until the amount of all losses
resulting in Seller Damages exceeds One Hundred Thousand and No/100 Dollars
($100,000.00) in which event the foregoing indemnification obligation shall
apply to the aggregate amount of Seller Damages that exceeds One Hundred
Thousand and No/100 Dollars ($100,000.00); provided, however, that the maximum
liability of the Purchaser Parties under this Agreement shall be an amount equal
to the Purchase Price. The foregoing limitation on time and amount shall not
apply to any Seller Damages arising or resulting from any act or omission of any
Purchaser Party which constitutes fraud, any breach by any Purchaser Party of
its post-closing covenants.

SECTION 12.3. NOTIFICATION AND DEFENSE OF CLAIMS.

(a) A party entitled to be indemnified pursuant to Section 12.1 or Section 12.2
(the "Indemnified Party") shall notify the party liable for such indemnification
(the "Indemnifying Party") in writing of any claim or demand which the
Indemnified Party has determined has given or could give rise to a right of
indemnification under this Agreement, as soon as possible after

                                       37
<PAGE>
the Indemnified Party becomes aware of such claim or demand; provided, that the
Indemnified Party's failure to give such notice to the Indemnifying Party in a
timely fashion shall not result in the loss of the Indemnified Party's rights
with respect thereto except to the extent the Indemnified Party is materially
prejudiced by the delay.

If the Indemnified Party shall notify the Indemnifying Party of any claim or
demand pursuant to the provisions hereof, and if such claim or demand relates to
a claim or demand asserted by a third party against the Indemnified Party (a
"Third Party Claim"), the Indemnifying Party shall have the obligation either
(i) to pay such claim or demand, or (ii) defend any such Third Party Claim with
counsel reasonably satisfactory to the Indemnified Party. After the Indemnifying
Party has assumed the defense of such Third Party Claim, the Indemnifying Party
shall not be liable to the Indemnified Party under this Section 12 for any legal
or other expenses subsequently incurred by the Indemnified Party in connection
with the defense thereof other than reasonable costs of investigation, provided
that the Indemnified Party shall have the right to employ counsel, at the
Indemnifying Party's expense, to represent it if (A) in the Indemnified Party's
reasonable opinion the Indemnifying Party is not diligently prosecuting the
defense of such Third Party Claim, (B) such Third Party Claim involves remedies
other than monetary damages and such remedies, in the Indemnified Party's
reasonable judgment, could have a material adverse effect on such Indemnified
Party, (C) the Indemnified Party may have available to it one or more defenses
or counterclaims that are inconsistent with one or more defenses or
counterclaims that may be alleged by the Indemnifying Party, or (D) the
Indemnified Party believes in its reasonable discretion that a conflict of
interest exists between the Indemnifying Party and the Indemnified Party with
respect to such Third-Party Claim or action, and in any such event the
reasonable fees and expenses of such separate counsel for the Indemnified Party
shall be paid by the Indemnifying Party. The Indemnified Party shall make
available to the Indemnifying Party or its agents all records and other
materials in the Indemnified Party's possession reasonably required by it for
its use in contesting any Third-Party Claim or demand.

(b) No Indemnified Party may settle or compromise any claim or consent to the
entry of any judgment with respect to which indemnification is being sought
hereunder without the prior written consent of the Indemnifying Party, unless
(i) the Indemnifying Party fails to assume and diligently prosecuting the
defense of such claim or (ii) such settlement, compromise or consent includes an
unconditional release of the Indemnifying Party from all liability arising out
of such claim and does not contain any equitable order, judgment or term which
includes any admission of wrongdoing or could result in any liability (including
regulatory liability) of the Indemnifying Party or which would otherwise in any
manner affect, restrain or interfere with the business of the Indemnifying Party
or any Affiliate of the Indemnifying Party. An Indemnifying Party may not,
without the prior written consent of the Indemnified Party, settle or compromise
any claim or consent to the entry of any judgment with respect to which
indemnification is being sought hereunder unless such settlement, compromise or
consent includes an unconditional release of the Indemnified Party from all
liability arising out of such claim and does not contain any equitable order,
judgment or term which includes any admission of wrongdoing or could result in
any liability (including regulatory liability) of the Indemnified Party or which
would otherwise in any manner affect, restrain or interfere with the business of
the Indemnified Party or any of the Indemnified Party's Affiliates.

                                       38
<PAGE>
SECTION 12.4. INVESTIGATIONS. The right to indemnification based upon breaches
or inaccuracies of representations, warranties and covenants will not be
affected by any investigation conducted with respect to, or knowledge acquired
(or capable of being acquired) at any time, whether before or after the
execution and delivery of this Agreement or the Closing Date, whether as a
result of disclosure by a party pursuant to this Agreement or otherwise, with
respect to the accuracy or inaccuracy of or compliance with any such
representation, warranty or covenant. The waiver of any condition based on the
accuracy of any representation or warranty, or on the performance of or
compliance with any covenant, will not affect a party's right to
indemnification, payment of damages or other remedies based on such
representations, warranties and covenants.

SECTION 12.5. TREATMENT OF INDEMNIFICATION PAYMENTS. All indemnification
payments made pursuant to this Article XII shall be treated by the parties for
income Tax purposes as adjustments to the Purchase Price, unless otherwise
required by applicable Law.

SECTION 12.6. EXCLUSIVE REMEDY. FROM AND AFTER THE APPLICABLE CLOSING, THE
PARTIES AGREE AND ACKNOWLEDGE THAT THE INDEMNIFICATION RIGHTS PROVIDED IN THIS
ARTICLE XII SHALL BE THE SOLE AND EXCLUSIVE REMEDY OF THE PARTIES TO THIS
AGREEMENT FOR BREACHES OF THIS AGREEMENT AND FOR ALL DISPUTES ARISING UNDER OR
RELATING TO THIS AGREEMENT AND ANY ADDITIONAL AGREEMENTS OR DOCUMENTS EXECUTED
OR DELIVERED IN OR ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, EXCEPT
FOR POST-CLOSING COVENANTS, CASES WHERE SPECIFIC PERFORMANCE IS AVAILABLE AS A
REMEDY AND EXCEPT IN CASES OF FRAUD.

                                  ARTICLE XIII
                               DISPUTE RESOLUTION

SECTION 13.1. GOVERNING LAW, JURISDICTION AND VENUE. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ALABAMA
APPLICABLE TO CONTRACTS EXECUTED AND PERFORMED IN SUCH STATE, WITHOUT GIVING
EFFECT TO CONFLICTS OF LAWS PRINCIPLES. EACH OF THE PARTIES HERETO IRREVOCABLY
AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR
FEDERAL COURT SITTING IN JEFFERSON COUNTY, THE CITY OF BIRMINGHAM, STATE OF
ALABAMA, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO, THIS
AGREEMENT. EACH OF THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
OBJECTION TO THE LAYING OF VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT, AND IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY CLAIM THAT SUCH SUIT,
ACTION OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. SERVICE OF ANY
PROCESS, SUMMONS, NOTICE OR DOCUMENT BY REGISTERED MAIL ADDRESSED TO A PARTY AT
THE ADDRESS DESIGNATED PURSUANT TO SECTION 14.2 OF THIS AGREEMENT SHALL BE
EFFECTIVE SERVICE OF PROCESS AGAINST SUCH PARTY FOR ANY ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT. A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT MAY BE ENFORCED IN

                                       39
<PAGE>
ANY OTHER COURT TO WHOSE JURISDICTION ANY OF THE PARTIES IS OR MAY BE SUBJECT.

                                   ARTICLE XIV
                                  MISCELLANEOUS

SECTION 14.1. ASSIGNMENT. This Agreement is not assignable by any party without
the prior written consent of the other party hereto. Notwithstanding the
foregoing, the Purchasing Parties may at any time and without the consent of any
Seller Party assign all of their respective rights and obligations hereunder to
one or more of its Affiliates; provided, however, that no such assignment shall
relieve or release such Purchaser Parties from their obligations hereunder.

SECTION 14.2. NOTICE. All notices, demands, requests and other communications or
documents required or permitted to be provided under this Agreement shall duly
be in writing and shall be given to the applicable party at its address or
facsimile number set forth below or such other address or facsimile number as
the party may later specify for that purpose by notice to the other party:

     If to any Seller Party:     Desert Valley Health System, Inc.
                                 16850 Bear Valley Road
                                 Victorville, California 93292
                                 Attention: Lex Reddy

     With a copy to:             Desert Valley Health System, Inc.
                                 16850 Bear Valley Road
                                 Victorville, California 93292
                                 Attention: Richard Hayes, Esq.

     If to any Purchaser Party   c/o Medical Properties Trust, Inc.
                                 1000 Urban Center Drive, Suite 501
                                 Birmingham, AL 35242
                                 Attention: Edward K. Aldag, Jr.

     With a copy to:             Baker, Donelson, Bearman, Caldwell & Berkowitz,
                                 PC
                                 420 20th Street North, Suite 1600
                                 Birmingham, Alabama 35203
                                 Attention: Thomas O. Kolb, Esq.

Each notice shall, for all purposes, be deemed given and received:

     (i) if by hand, when delivered;

     (ii) if given by nationally recognized and reputable overnight delivery
     service, the Business Day on which the notice is actually received by the
     party; or

     (iii) if given by certified mail, return receipt requested, postage
     prepaid, the date shown on the return receipt.

                                       40
<PAGE>
SECTION 14.3. CALCULATION OF TIME PERIOD. When calculating the period of time
before which, within which or following which any act is to be done or step
taken, the date that is the reference date in calculating such period shall be
excluded. If the last day of such period is a non-Business Day, the period in
question shall end of the next succeeding Business Day.

SECTION 14.4. CAPTIONS. The section and paragraph headings or captions appearing
in this Agreement are for convenience only, are not a part of this Agreement,
and are not to be considered in interpreting this Agreement.

SECTION 14.5. ENTIRE AGREEMENT; MODIFICATION. This Agreement, including the
Exhibits and Schedules attached hereto, and other written agreements executed
and delivered at Closing by the parties hereto, constitute the entire agreement
and understanding of the parties with respect to the subject matter of this
Agreement. This Agreement supersedes any prior oral or written agreements
between the parties with respect to the subject matter of this Agreement. It is
expressly agreed that there are no verbal understandings or agreements which in
any way change the terms, covenants, and conditions set forth in this Agreement,
and that no modification of this Agreement and no waiver of any of its terms and
conditions shall be effective unless it is made in writing and duly executed by
the parties hereto.

SECTION 14.6. SCHEDULES AND EXHIBITS. All Schedules and Exhibits referred to in
this Agreement and attached hereto shall be deemed a part of this Agreement and
are hereby incorporated herein by reference.

SECTION 14.7. FURTHER ASSURANCES. From time to time after the Closing and
without further consideration, the Seller Parties shall execute and deliver to
the Purchaser such instruments of sale, transfer, conveyance, assignment,
consent or other instruments as may be reasonably requested by the Purchaser
Parties in order to vest all right, title and interest of the applicable Seller
Parties in and to the Assets conveyed and delivered at the Closing or as
otherwise required to carry out the purpose and intent of this Agreement.

SECTION 14.8. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Executed signature pages
to this Agreement may be delivered by facsimile transmission and any such
signature page shall be deemed an original.

SECTION 14.9. EXPENSES. The Seller Parties shall pay all costs and expenses
incurred by Seller Parties and Purchaser Parties in connection with the
transactions contemplated hereby, including, without limitation, all document
stamps, transfer, excise, recording, gains, sales, bulk sales, use and similar
conveyance Taxes and fees imposed by reason of and associated with the
transactions contemplated hereby and by deficiency, interest or penalty asserted
with respect thereto, as well as the cost of the survey, the title insurance and
all title endorsements required by the Purchaser Parties and its lenders, and
all attorneys' fees and expenses. The parties acknowledge that the Seller
Parties have already paid MPT the sum of Twenty Five thousand Dollars ($25,000)
which sum shall be credited against the expense reimbursement obligations of
Seller Parties set forth herein.

                                       41
<PAGE>
SECTION 14.10. SYNDICATION. Subject to applicable healthcare regulatory
requirements, MPT will offer up to twenty percent (20%) of the equity interests
in Acquisition Sub to local or area physicians at such time following closing as
determined by MPT. MPT and the Seller Parties will work together to decide which
physicians receive an opportunity to invest in the Acquisition Sub.

SECTION 14.11. SECURITIES OFFERING AND FILINGS. Notwithstanding anything
contained herein to the contrary, the Seller Parties agree to cooperate with MPT
in connection with any securities offerings and filings and, in connection
therewith, the Seller Parties shall furnish MPT with such financial and other
information as MPT shall request. MPT shall have the right of access, at
reasonable business hours and upon advance notice, to all documentation and
information relating to the Real Property and Improvements and have the right to
disclose any information regarding this Agreement, the Seller Parties, the Real
Property and Improvements and all other agreements executed in connection
herewith and all other documents in connection with the transactions
contemplated hereby, and such other additional information which MPT may
reasonably deem necessary

SECTION 14.12. BINDING EFFECT. This Agreement shall bind and inure to the
benefit of the parties hereto and their successors and assigns; provided,
however, that this Agreement shall not inure to the benefit of any assignee
pursuant to an assignment which violates the terms of this Agreement

                   [Signatures appear on the following page.]

                                       42
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized officers on the date first written above.

                                        SELLER PARTIES:

                                        PRIME A INVESTMENTS, L.L.C.

                                        By: /s/ Prem Reddy
                                            ------------------------------------
                                        Name: Prem Reddy
                                        Title: Manager

                                        DESERT VALLEY HEALTH SYSTEM, INC.

                                        By: /s/ Lex Reddy
                                            ------------------------------------
                                        Name: Lex Reddy
                                        Title: President

                                        DESERT VALLEY HOSPITAL, INC.

                                        By: /s/ Lex Reddy
                                            ------------------------------------
                                        Name: Lex Reddy
                                        Title: President

                                        DESERT VALLEY MEDICAL GROUP, INC.

                                        By: /s/ Lex Reddy
                                            ------------------------------------
                                        Name: Lex Reddy
                                        Title: Secretary
<PAGE>
                                        PURCHASER PARTIES:

                                        MPT OPERATING PARTNERSHIP, L.P.

                                        By: /s/ Edward K. Aldag, Jr.
                                            ------------------------------------
                                        Name: Edward K. Aldag, Jr.
                                        Title: President and Chief Executive
                                               Officer

                                        MPT OF VICTORVILLE, LLC
                                        By: MPT Operating Partnership, L.P.
                                        Its: Sole Member

                                        By: /s/ Edward K. Aldag, Jr.
                                            ------------------------------------
                                        Name: Edward K. Aldag, Jr.
                                        Title: President and Chief Executive
                                               Officer
<PAGE>
                                    EXHIBIT A

                                      Lease

                                (See attachment)

                                      A-1
<PAGE>
                                    EXHIBIT B

                   Legal Description of the Land/Real Property

HOSPITAL PARCEL:

Parcel A:

Parcels 1 and 4 of Parcel Map 13742 located in the City of Victorville, County
of San Bernardino, State of California, as per Plat recorded in Book 161 of
Parcel Maps, Pages 23 and 24, Records of said County.

Parcel B:

A portion of Parcel 1 of Parcel Map No. 9412, in the City of Victorville, County
of San Bernardino, State of California, as per Plat recorded in Book 137 of
Parcel Maps, Pages 71 and 72, records of said County, lying northerly of the
following described line:

Beginning at the Northwest corner of said Parcel 1 of Parcel Map No. 9412;
thence along the westerly line of the last mentioned Parcel 1, South 01 degrees
38' 56" West, 28.62 feet to the true point of beginning; thence North 88 degrees
19' 20" East, 605.21 feet to the Easterly line of said last mentioned Parcel 1,
pursuant to that certain Lot Merger No. LM-3-92 and Lot Line Adjustment No.
LA-5-92, dated February 17, 1992, and recorded March 13, 1992, Instrument Nos.
92-108430, 92-108431 and 92-108432, Official Records.

The aforesaid parcels being more fully described as follows:

Beginning at the Northwesterly corner of Parcel 1 of said Parcel Map 13742;
thence North 88 degrees 19' 20" East along the Northerly line of said Parcels 1
and 4, a distance of 604.83 feet to the Northeasterly corner of Parcel 4; thence
South 01 degrees 43' 00" East a distance of 322.00 feet to said lot line
adjustment line; thence South 88 degrees 19' 20" West along said line a distance
of 605.21 feet to the Easterly right of way line of Second Avenue; thence North
01 degrees 38' 56" West along said Easterly right of way line a distance of
322.00 feet to the point of beginning.

MEDICAL OFFICE BUILDING PARCEL:

Parcel C:

Parcel No. 2 of Parcel Map No. 14282, located in the City of Victorville, County
of San Bernardino, State of California, as per Plat recorded in Book 176 of
Parcel Maps, Pages 38 and 39, records of said County.

                                      B-1
<PAGE>
The aforesaid Parcel being more fully described as follows:

Beginning at the Southeasterly corner of Parcel 2, said point being on the
Northerly right of way line of Bear Valley Road as shown on said Parcel Map;
thence South 88 degrees 19' 20" West along said Northerly right of way a
distance of 459.80 feet; thence North 01 degrees 40' 40" West a distance of
299.00 feet; thence South 88 degrees 19' 20" West a distance of 145.67 feet to
the Easterly right of way line of Second Avenue; thence North 01 degrees 38' 56"
West, along said easterly right of way line, a distance of 46.00 feet to the
northwesterly corner of Parcel 2; thence North 88 degrees 19' 20" East, along
the northerly line of Parcel 2, a distance of 605.21 feet to the Northeasterly
corner; thence South 01 degrees 43' 00" East a distance of 345.00 feet to the
point of beginning.

TOGETHER WITH ALL RIGHT, TITLE AND INTEREST IN AND TO THE FOLLOWING EASEMENT:

Non-exclusive easements for emergency access, drainage, utility, landscape and
sewer purposes, appurtenant to the Hospital Parcel, created by that certain
"Reciprocal Easement Agreement" dated November 5, 1992, and recorded on December
11, 1992, as Instrument No. 92-510810, Official Records of the County of San
Bernardino, State of California, more particularly set forth in Paragraph 1 of
said document.

                                      B-2
<PAGE>
                                 EXHIBIT 9.2(b)

                                      Deed

                                (See attachment)

                               Exhibit 9.2(b) - 1
<PAGE>
                                 EXHIBIT 9.2(p)

                            Lease Guaranty Agreement

                                (See attachment)

                               Exhibit 9.2(p) - 1
<PAGE>
                                 EXHIBIT 9.2(q)

                         Assignment of Rents and Leases

                                (See attachment)

                               Exhibit 9.2(q) - 1
<PAGE>
                                 EXHIBIT 9.2(r)

                               Security Agreement

                                (See attachment)

                               Exhibit 9.2(r) - 1
<PAGE>
                                 EXHIBIT 9.2(t)

                      Legal Opinion of Robert L. B. Diener

                                (See attachment)

                               Exhibit 9.2(t) - 1
<PAGE>
                                 EXHIBIT 9.2(w)

                              Noncompete Agreements

                                (See attachment)

                               Exhibit 9.2(w) - 1
<PAGE>
                                 EXHIBIT 9.2(x)

                           Expansion Commitment Letter

                                (See attachment)

                               Exhibit 9.2(x) - 1
<PAGE>
                                 EXHIBIT 9.3(f)

      Legal Opinion of Baker, Donelson, Beaman, Caldwell & Berkowitz, P.C.

                                (See attachment)

                               Exhibit 9.3(f) - 1<PAGE>
                                                                 VICTORVILLE, CA

                                                                   EXHIBIT 10.28

                                 LEASE AGREEMENT

                            MPT OF VICTORVILLE, LLC,
                      a Delaware limited liability company

                                     Lessor

                                       AND

                          DESERT VALLEY HOSPITAL, INC.,
                            a California corporation

                                     Lessee

                        DESERT VALLEY HEALTH SYSTEM, INC.
                                       and
                        DESERT VALLEY MEDICAL GROUP, INC.

                                   Guarantors

                                    Property:

               Eighty-Three (83)-Bed Acute Care Hospital Facility
                    and incorporated Medical Office Building
               (Commonly referred to as the Desert Valley Hospital
                          and Medical Office Building)
                             16850 Bear Valley Road
              Victorville, San Bernardino County, California 93292

                                February 28, 2005
<PAGE>
                                Table of Contents

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
LEASE AGREEMENT..........................................................     i

LEASE AGREEMENT..........................................................     1

ARTICLE I LEASED PROPERTY; TERM..........................................     1

ARTICLE II DEFINITIONS...................................................     2

ARTICLE III RENT.........................................................     9
     3.1   Base Rent.....................................................     9
     3.2   Additional Charges............................................    10
     3.3   Absolute Triple Net Lease.....................................    10
     3.4   Lease Deposit.................................................    10
     3.5   Adjustments...................................................    10

ARTICLE IV IMPOSITIONS...................................................    11
     4.1   Payment of Impositions........................................    11
     4.2   Adjustment of Impositions.....................................    11
     4.3   Utility Charges...............................................    11
     4.4   Insurance Premiums............................................    12

ARTICLE V NO TERMINATION.................................................    12
     5.1   Acknowledgement...............................................    12

ARTICLE VI OWNERSHIP OF LEASED PROPERTY AND PERSONAL PROPERTY............    12
     6.1   Ownership of the Leased Property..............................    12
     6.2   Lessee's Personal Property....................................    12

ARTICLE VII CONDITION AND USE OF LEASED PROPERTY.........................    13
     7.1   Condition of the Leased Property..............................    13
     7.2   Use of the Leased Property....................................    13
     7.3   Lessor to Grant Easements.....................................    14

ARTICLE VIII LEGAL AND INSURANCE REQUIREMENTS............................    14
     8.1   Compliance with Legal and Insurance Requirements..............    14
     8.2   Legal Requirement Covenants...................................    14
     8.3   Hazardous Materials...........................................    15
     8.4   Healthcare Laws...............................................    15
     8.5   Representations and Warranties................................    15
     8.6   Single Purpose Entity.........................................    16
     8.7   Organizational Documents......................................    16

ARTICLE IX REPAIRS; RESTRICTIONS.........................................    16
     9.1   Maintenance and Repair........................................    16
     9.2   Reserves for Extraordinary Repairs............................    18
     9.3   Encroachments; Restrictions...................................    18

ARTICLE X CAPITAL ADDITIONS..............................................    18
     10.1  Construction of Capital Additions to the Leased Property......    18
     10.2  Capital Additions Financed by Lessee..........................    19
</TABLE>

                                        i
<PAGE>
                               Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
     10.3  Capital Additions Financed by Lessor..........................    20
     10.5  Salvage.......................................................    21

ARTICLE XI LIENS.........................................................    21

ARTICLE XII PERMITTED CONTESTS...........................................    22

ARTICLE XIII INSURANCE...................................................    23
     13.1  General Insurance Requirements................................    23
     13.2  Additional Insurance..........................................    24
     13.3  Waiver of Subrogation.........................................    25
     13.4  Form of Insurance.............................................    25
     13.5  Increase in Limits............................................    25
     13.6  Blanket Policy................................................    25
     13.7  No Separate Insurance.........................................    26

ARTICLE XIV FIRE AND CASUALTY............................................    26
     14.1  Insurance Proceeds............................................    26
     14.2  Reconstruction in the Event of Damage
              or Destruction Covered by Insurance........................    26
     14.3  Reconstruction in the Event of Damage
              or Destruction Not Covered by Insurance....................    27
     14.4  Lessee's Personal Property....................................    27
     14.5  Restoration of Lessee's Property..............................    27
     14.6  No Abatement of Rent..........................................    27
     14.7  Damage Near End of Term.......................................    27
     14.8  Termination of Right to Purchase and Substitution.............    28
     14.9  Waiver........................................................    28

ARTICLE XV CONDEMNATION..................................................    28
     15.1  Definitions...................................................    28
     15.2  Parties' Rights and Obligations...............................    28
     15.3  Total Taking..................................................    28
     15.4  Partial Taking................................................    28
     15.5  Restoration...................................................    29
     15.6  Award Distribution............................................    29
     15.7  Temporary Taking..............................................    29

ARTICLE XVI DEFAULT......................................................    29
     16.1  Events of Default.............................................    29
     16.2  Events of Default in Financial Covenants......................    33
     16.3  Additional Expenses...........................................    35
     16.4  Intentionally Omitted.........................................    35
     16.5  Waiver........................................................    35
     16.6  Application of Funds..........................................    35
     16.7  Notices by Lessor.............................................    35
     16.8  Lessor's Contractual Security Interest........................    35

ARTICLE XVII LESSOR'S RIGHT TO CURE......................................    36
</TABLE>

                                       ii
<PAGE>
                               Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE XVIII PURCHASE OF THE LEASED PROPERTY............................    37

ARTICLE XIX HOLDING OVER.................................................    37

ARTICLE XX INTENTIONALLY OMITTED.........................................    38

ARTICLE XXI INTENTIONALLY OMITTED........................................    38

ARTICLE XXII RISK OF LOSS................................................    38

ARTICLE XXIII INDEMNIFICATION............................................    38

ARTICLE XXIV ASSIGNMENT, SUBLETTING AND SUBLEASE SUBORDINATION...........    38
     24.1  Assignment and Subletting.....................................    38
     24.2  Sublease Limitations..........................................    39
     24.3  Sublease Subordination and Non-Disturbance....................    39

ARTICLE XXV OFFICER'S CERTIFICATES; FINANCIAL STATEMENTS;
               NOTICES AND OTHER CERTIFICATES............................    40

ARTICLE XXVI INSPECTION..................................................    41

ARTICLE XXVII NO WAIVER..................................................    42

ARTICLE XXVIII REMEDIES CUMULATIVE.......................................    42

ARTICLE XXIX SURRENDER...................................................    42

ARTICLE XXX NO MERGER OF TITLE...........................................    42

ARTICLE XXXI TRANSFERS BY LESSOR.........................................    42

ARTICLE XXXII QUIET ENJOYMENT............................................    43

ARTICLE XXXIII NOTICES...................................................    43

ARTICLE XXXIV APPRAISAL..................................................    44

ARTICLE XXXV PURCHASE RIGHTS.............................................    45
     35.1  Lessee's Option to Purchase...................................    45
     35.2  Lessor's Option to Purchase Lessee's Personal Property........    45

ARTICLE XXXVI INTENTIONALLY OMITTED......................................    45

ARTICLE XXXVII FINANCING OF THE LEASED PROPERTY..........................    46
     37.1  Financing by Lessor...........................................    46

ARTICLE XXXVIII SUBORDINATION AND NON-DISTURBANCE........................    46

ARTICLE XXXIX LICENSES...................................................    46

ARTICLE XL COMPLIANCE WITH HEALTHCARE LAWS...............................    48

ARTICLE XLI LESSOR'S RIGHT TO SELL AND
               LESSEE'S RIGHT OF FIRST REFUSAL...........................    48
     41.1  Lessor's Right to Sell........................................    48
     41.2  Lessee's Right of First Refusal...............................    48

ARTICLE XLII MISCELLANEOUS...............................................    49
     42.1  General.......................................................    49
     42.2  Lessor's Expenses.............................................    49
     42.3  Assets Purchased Pursuant to Purchase Options.................    50
     42.4  Entire Agreement; Modifications...............................    50
     42.5  Guaranty......................................................    50
     42.6  Future Financing..............................................    50
     42.7  Change in Ownership/Control...................................    50
</TABLE>

                                      iii
<PAGE>
                               Table of Contents
                                  (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
     42.8  Lessor Securities Offering and Filings........................    50
     42.9  Non-Recourse as to Lessor.....................................    50
     42.10 Management Agreements.........................................    51
     42.11 Counterparts..................................................    51

ARTICLE XLIII MEMORANDUM OF LEASE........................................    51
</TABLE>

                                       iv
<PAGE>
                                 LEASE AGREEMENT

     This LEASE AGREEMENT (the "Lease") is dated as of the 28th day of February,
2005, and is between MPT OF VICTORVILLE, LLC, a Delaware limited liability
company ("Lessor"), having its principal office at 1000 Urban Center Drive,
Suite 501, Birmingham, Alabama 35242, and DESERT VALLEY HOSPITAL, INC., a
California corporation ("Lessee"), having its principal office at 16850 Bear
Valley Road, Victorville, California 93292.

                                   WITNESSETH:

     WHEREAS, Lessor is the current owner of that certain real property located
in Victorville, San Bernardino County, California, which real property is more
particularly described on EXHIBIT A attached hereto and incorporated herein by
reference, and all improvements located thereon; and

     WHEREAS, Lessor and Lessee desire to enter into this Lease on the terms and
conditions hereinafter provided.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

                                   ARTICLE I

                              LEASED PROPERTY; TERM

     Upon and subject to the terms and conditions hereinafter set forth, and
subject to the rights of any tenants, subtenants, lessees or sublessees under
any Existing Subleases as described in Section 24.1 below, Lessor leases to
Lessee and Lessee rents from Lessor all of Lessor's rights and interest in and
to the following property (collectively, the "Leased Property"):

          (a) the real property described on EXHIBIT A attached hereto (the
     "Land");

          (b) the Facility and all buildings, structures, Fixtures (as
     hereinafter defined) and other improvements of every kind, alleyways and
     connecting tunnels, sidewalks, utility pipes, conduits and lines (on-site
     and off-site), parking areas and roadways appurtenant to such buildings and
     structures presently or hereafter situated upon the Land, and Capital
     Additions (hereinafter defined) financed by Lessor (collectively, the
     "Leased Improvements");

          (c) all easements, rights and appurtenances relating to the Land and
     the Leased Improvements;

          (d) all site plans, surveys, soil and substrata studies, architectural
     drawings, plans and specifications, inspection reports, engineering and
     environmental plans and studies, title reports, floor plans, landscape
     plans and other plans relating to the Land and Leased Improvements; and

          (e) all permanently affixed non-medical equipment, machinery,
     fixtures, and other items of real and/or personal property, including all
     components thereof, now and hereafter located in, on or used in connection
     with, and permanently affixed to or incorporated into the Leased
     Improvements, including, without limitation, all furnaces, boilers,
     heaters, electrical equipment, heating, plumbing, lighting, ventilating,
     refrigerating, incineration, air and water pollution control, waste
     disposal, air-cooling and air-conditioning systems and apparatus, sprinkler
     systems and fire and theft protection equipment, and built-in oxygen and
     vacuum systems, all of which, to the greatest extent permitted by law, are
     hereby deemed by the parties hereto to constitute real estate, together
     with all replacements, modifications, alterations and

                                        1
<PAGE>
     additions thereto, but specifically excluding all items included within the
     category of Lessee's Personal Property as defined in Article II below
     (collectively the "Fixtures").

SUBJECT, HOWEVER, to the matters set forth on EXHIBIT B attached hereto (the
"Permitted Exceptions"); Lessee shall have and hold the Leased Property for a
fixed term (the "Fixed Term") commencing on the date hereof (the "Commencement
Date") and ending at midnight on the last day of the one hundred and eightieth
(180th) month period after the Commencement Date, unless sooner terminated as
herein provided.

     So long as Lessee is not in default, and no event has occurred which with
the giving of notice or the passage of time or both would constitute a default,
under any of the terms and conditions of this Lease, or under any of the terms
and conditions of the Other Leases (as hereinafter defined), Lessee shall have
the option to extend the Fixed Term of this Lease on the same terms and
conditions set forth herein for three (3) additional periods of five (5) years
each (each an "Extension Term"). Lessee may exercise each such option by giving
written notice to the Lessor at least three hundred sixty five (365) days prior
to the expiration of the Fixed Term or Extension Term, as applicable (the
"Extension Notice"). If during the period following the delivery of the
Extension Notice to Lessor, a default or breach by Lessee shall occur under this
Lease, or under any of the Other Leases, and such default or breach is not cured
within the applicable time periods as provided herein, Lessee shall be deemed to
have forfeited all Extension Options. If Lessee elects not to exercise its
option to extend, all subsequent options to extend shall be deemed to have
lapsed.

                                   ARTICLE II

                                   DEFINITIONS

     For all purposes of this Lease, except as otherwise expressly provided or
unless the context otherwise requires, (a) the terms defined in this Article
have the meanings assigned to them in this Article and include the plural as
well as the singular, (b) all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with GAAP as at the time applicable,
(c) all references in this Lease to designated "Articles", "Sections" and other
subdivisions are to the designated Articles, Sections and other subdivisions of
this Lease, and (d) the words "herein", "hereof" and "hereunder" and other words
of similar import refer to this Lease as a whole and not to any particular
Article, Section or other subdivision:

     Added Value Additional: As defined in Section 10.2.

     Additional Charges: As defined in Section 3.2.

     Adjustment Date: January 1 of each year commencing on January 1, 2006.

     Affiliate: When used with respect to any corporation, limited liability
company, or partnership, the term "Affiliate" shall mean any person,
corporation, limited liability company, partnership or other legal entity,
which, directly or indirectly, controls or is controlled by or is under common
control with such corporation, limited liability company, or partnership. For
the purposes of this definition, "control" (including the correlative meanings
of the terms "controlled by" and "under common control with"), as used with
respect to any person, corporation, limited liability company, partnership or
other legal entity, shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
person, corporation, limited liability company, partnership or other legal
entity, through the ownership of voting securities, partnership interests or
other equity interests.

     Award: As defined in Section 15.1.

     Base Rent: As defined in Section 3.1.

                                        2
<PAGE>
     Business: The operation of the Facility and the engagement in and pursuit
and conduct of any business venture or activity related thereto.

     Business Day: Each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which money centers in the City of New York, New York are
authorized, or obligated, by law or executive order, to close.

     Capital Additions: One or more new buildings or one or more additional
structures annexed to any portion of any of the Leased Improvements, which are
constructed on any parcel or portion of the Land during the Term, including the
construction of a new wing or new story.

     Capital Addition Cost: The cost of any Capital Additions proposed to be
made by Lessee whether or not paid for by Lessee or Lessor. Such cost shall
include (a) the cost of construction of the Capital Additions, including site
preparation and improvement, materials, labor, supervision and certain related
design, engineering and architectural services, the cost of any fixtures, the
cost of construction financing and miscellaneous costs approved by Lessor, (b)
if agreed to by Lessor in writing in advance, the cost of any land contiguous to
the Leased Property purchased for the purpose of placing thereon the Capital
Additions or any portion thereof or for providing means of access thereto, or
parking facilities therefor, including the cost of surveying the same, (c) the
cost of insurance, real estate taxes, water and sewage charges and other
carrying charges for such Capital Additions during construction, (d) the cost of
title insurance, (e) reasonable fees and expenses of legal counsel, (f) filing,
registration and recording taxes and fees, (g) documentary stamp taxes, if any,
and (h) all reasonable costs and expenses of Lessor and any Lending Institution
which has committed to finance the Capital Additions, including, but not limited
to, (i) the reasonable fees and expenses of their respective legal counsel, (ii)
all printing expenses, (iii) the amount of any filing, registration and
recording taxes and fees, (iv) documentary stamp taxes, if any, (v) title
insurance charges, appraisal fees, if any, (vi) rating agency fees, if any, and
(vii) commitment fees, if any, charged by any Lending Institution advancing or
offering to advance any portion of the financing for such Capital Additions.

     Capital Improvement Reserve: As defined in Section 9.1(e).

     Code: The Internal Revenue Code of 1986, as amended.

     Commencement Date:  The date hereof.

     Commitment Letter: The commitment letter between Lessor and Lessee (or
their Affiliates) dated November 16, 2004, and executed by Lessee, Desert Valley
Health System, Inc. and Desert Valley Medical Group, Inc. on November 22, 2004.

     Condemnation, Condemnor: As defined in Section 15.1.

     Consolidated Net Worth: At any time, the sum of the following for
Guarantors or Lessee and their respective consolidated subsidiaries on a
consolidated basis determined in accordance with GAAP.

          (a) the amount of capital or stated capital (after deducting the cost
     of any treasury shares), plus

          (b) the amount of capital surplus and retained earnings (or, in the
     case of a capital surplus or retained earnings deficit, minus the amount of
     such deficit), minus

          (c) the sum of the following (without duplication of deductions in
     respect of items already deducted in arriving at surplus and retained
     earnings): (i) unamortized debt discount and expense and (ii) any write-up
     in book value of assets resulting from a revaluation thereof pursuant to
     generally accepted accounting principles subsequent to the most recent
     Statements of Cash Flow prior to the date thereof, except any net write-up
     in value of foreign currency in accordance with GAAP; any write-up
     resulting from reversal of a reserve for bad debts or depreciation; and any
     write-up resulting from a change in methods of accounting for inventory.

                                       3
<PAGE>
     Consumer Price Index: The Consumer Price Index, all urban consumers, all
items, U.S. City Average, published by the United States Department of Labor,
Bureau of Labor Statistics, in which 1982-1984 equals one hundred (100). If the
Consumer Price Index is discontinued or revised during the term of this Lease,
such other governmental index or computation with which it is replaced shall be
used in order to obtain substantially the same result as would be obtained if
the Index had not been discontinued or revised.

     CPI: The Consumer Price Index.

     Credit Enhancements: All security deposits, security interests, letters of
credit, pledges, guaranties, prepaid rent or other sums, deposits or interests
held by Lessee, if any, with respect to the Leased Property, the Tenant Leases
or the Tenants.

     Date of Taking: As defined in Section 15.1.

     Desert Valley Tenants: The Lessee, the Guarantors and any of their
respective Affiliates who are also tenants of Lessor or any of its Affiliates.

     EBITDAR: Earnings before the deduction of interest, taxes, depreciation,
amortization and rent, as determined in accordance with GAAP.

     Encumbrances: As defined in Article XXXVII.

     Equity Investment: The Purchase Price.

     Events of Default: As defined in Section 16.1 and Section 16.2.

     Existing Subleases: As defined in Section 24.1.

     Extension Notice: As defined in Article I.

     Extension Term: As defined in Article I.

     Extraordinary Repairs: All repairs to the Facility of every kind and
nature, whether interior or exterior, structural or non-structural (including,
without limitation, all parking decks and parking lots) which are considered to
be extraordinary in nature (as opposed to being ordinary or normal in nature),
as Lessee and/or Lessor may determine to be necessary or appropriate from time
to time during the Term.

     Facility: The licensed eighty-three (83)-bed acute care hospital facility
and incorporated medical office building and all improvements (including the
trailer located on the Land) in connection therewith operated on the Land.

     Facility Mortgage: As defined in Section 13.1.

     Facility Mortgagee: As defined in Section 13.1.

     Fair Market Added Value: The Fair Market Value (as hereinafter defined) of
the Leased Property (including all Capital Additions) less the Fair Market Value
of the Leased Property determined as if no Capital Additions paid for by Lessee
had been constructed.

     Fair Market Value: The Fair Market Value of the Leased Property, including
all Capital Additions, (a) and shall be determined in accordance with the
appraisal procedures set forth in Article XXXIV or in such other manner as shall
be mutually acceptable to Lessor and Lessee, (b) and shall not take into account
any reduction in value resulting from any indebtedness to which the Leased
Property is subject and which encumbrance Lessee or Lessor is otherwise required
to remove pursuant to any provision of this Lease or agrees to remove at or
prior to the closing of

                                        4
<PAGE>
the transaction as to which such Fair Market Value determination is being made.
The positive or negative effect on the value of the Leased Property attributable
to the interest rate, amortization schedule, maturity date, prepayment penalty
and other terms and conditions of any Encumbrance on the Leased Property, which
is not so required or agreed to be removed shall be taken into account in
determining such Fair Market Value. Notwithstanding anything contained herein to
the contrary, any appraisal of the Leased Property shall assume the Lease is in
place for a term of fifteen (15) years, and based solely on the rents and other
revenues generated and to be generated pursuant to this Lease without any regard
to the Lessee's operations.

     Fair Market Value Purchase Price: The Fair Market Value of the Leased
Property less the Fair Market Added Value.

     Fiscal Year: The fiscal year for this Lease shall be the twelve (12) month
period from January 1 to December 31.

     Fixed Term: As defined in Article I.

     Fixtures: As defined in Article I.

     GAAP: Generally accepted accounting principles in the United States,
consistently applied.

     Governmental Entity: Any national, federal, regional, state, local,
provincial, municipal, foreign or multinational court or other governmental or
regulatory authority, administrative body or government, department, board,
body, tribunal, instrumentality or commission of competent jurisdiction.

     Guarantors: Jointly and severally, Prime A Investments, L.L.C., a Delaware
limited liability company, Desert Valley Health System, Inc., a Delaware
corporation, and Desert Valley Medical Group, Inc., a California corporation.

     Hazardous Materials: Any substance, including without limitation, asbestos
or any substance containing asbestos and deemed hazardous under any Hazardous
Materials Law, the group of organic compounds known as polychlorinated
biphenyls, flammable explosives, radioactive materials, infectious wastes,
biomedical and medical wastes, chemicals known to cause cancer or reproductive
toxicity, pollutants, effluents, contaminants, emissions or related materials
and any items included in the definition of hazardous or toxic wastes, materials
or substances under any Hazardous Materials Laws.

     Hazardous Materials Laws: All local, state and federal laws relating to
environmental conditions and industrial hygiene, including, without limitation,
the Resource Conservation and Recovery Act of 1976 ("RCRA"), the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as
amended by the Superfund Amendments and Reauthorization Act of 1986 ("SARA"),
the Hazardous Materials Transportation Act, the Federal Water Pollution Control
Act, the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act,
the Safe Drinking Water Act, and all similar federal, state and local
environmental statutes, ordinances and the regulations, orders, or decrees now
or hereafter promulgated thereunder.

     Healthcare Laws: All rules and regulations under the False Claims Act (31
U.S.C. Section 3729 et seq.), the Anti-Kickback Act of 1986 (41 U.S.C. Section
51 et seq.), the Federal Health Care Programs Anti-Kickback statute (42 U.S.C.
Section 1320a-7a(b)), the Ethics in Patient Referrals Act of 1989, as amended
(Stark Law) (42 U.S.C. 1395nn), the Civil Money Penalties Law (42 U.S.C. Section
1320a-7a), or the Truth in Negotiations (10 U.S.C. Section 2304 et seq.), Health
Care Fraud (18 U.S.C. 1347), Wire Fraud (18 U.S.C. 1343), Theft or Embezzlement
(18 U.S.C. 669), False Statements (18 U.S.C. 1001), False Statements (19 U.S.C.
1035), and Patient Inducement Statute, and equivalent state statutes and any and
all rules or regulations promulgated by governmental entities with respect to
any of the foregoing.

     Impositions: Collectively, all civil monetary penalties, fines and
overpayments imposed by state and federal regulatory authorities, all taxes
(including, without limitation, all capital stock and franchise taxes of Lessor,

                                        5
<PAGE>
all ad valorem, sales and use, single business, gross receipts, transaction
privilege, rent or similar taxes), assessments (including, without limitation,
all assessments, charges and costs imposed under the Permitted Exceptions, all
assessments for public improvements or benefits, whether or not commenced or
completed prior to the date hereof and whether or not to be completed within the
Term), ground rents, water, sewer or other rents and charges, excises, tax
levies, fees (including, without limitation, license, permit, inspection,
authorization and similar fees), and all other governmental charges, in each
case whether general or special, ordinary or extraordinary, or foreseen or
unforeseen, of every character in respect of the Leased Property and/or the Rent
(including all interest and penalties thereon due to any failure in payment by
Lessee), and all other fees, costs and expenses which at any time prior to,
during or in respect of the Term hereof may be charged, assessed or imposed on
or in respect of or be a lien upon (a) Lessor or Lessor's interest in the Leased
Property, (b) the Leased Property or any part thereof or any rent therefrom or
any estate, right, title or interest therein, or (c) any occupancy, operation,
use or possession of, sales from, or activity conducted on, or in connection
with, the Leased Property or the leasing or use of the Leased Property or any
part thereof; provided, however, nothing contained in this Lease shall be
construed to require Lessee to pay (1) any tax based on net income (whether
denominated as a franchise or capital stock, financial institutions or other
tax) imposed on Lessor, or (2) any transfer or net revenue tax of Lessor, or (3)
any tax imposed with respect to the sale, exchange or other disposition by
Lessor of any portion of the Leased Property or the proceeds thereof, or (4)
except as expressly provided elsewhere in this Lease, any principal or interest
on any Encumbrance on the Leased Property, except to the extent that any tax,
assessment, tax levy or charge which Lessee is obligated to pay pursuant to the
first sentence of this definition and which is in effect at any time during the
Term hereof is totally or partially repealed, and a tax, assessment, tax levy or
charge set forth in clause (1) or (2) is levied, assessed or imposed expressly
in lieu thereof, in which case Lessee shall pay.

     Initial Purchase Price: A price equal to the purchase price paid by Lessor
(and its Affiliates, including, without limitation, MPT Operating Partnership,
L.P.) for the Leased Property pursuant to the Purchase Agreement, plus all costs
and expenses incurred in association with the purchase and lease of such Leased
Property, including, but not limited to, legal, appraisal, title, survey,
environmental, seismic, engineering and other fees and expenses paid in
connection with the inspection of the Leased Property and site visits, and fees
paid to advisors and brokers, except to the extent such items are paid by
Lessee.

     Insurance Requirements: All terms of any insurance policy required by this
Lease and all requirements of the issuer of any such policy, and such additional
insurance which the Lessor may reasonably require.

     Land: As defined in Article I.

     Lease: As defined in the Preamble.

     Lease Assignment: That certain Assignment of Rents and Leases to be
effective the Commencement Date executed and delivered by Lessee to Lessor,
pursuant to the terms of which Lessee has assigned to Lessor each of the Tenant
Leases and Credit Enhancements, if any, as security for the obligations of
Lessee under this Lease (as this Lease may be amended, modified and/or restated
from time to time), the obligations of Guarantors under the Lease Guaranty and
any other obligations of Lessee to Lessor, any Guarantor or any Affiliate of
Lessee or any Guarantor to Lessor or any Affiliate of Lessor.

     Lease Deposit: As defined in Section 3.4.

     Lease Guaranty: That certain Lease Guaranty to be effective the
Commencement Date executed and delivered by Guarantors in favor of Lessor,
pursuant to the terms of which Guarantors have unconditionally and irrevocably
guaranteed the full, faithful and complete performance of Lessee's obligations
under this Lease (as this Lease may be amended, modified and/or restated from
time to time), and any other obligations of Lessee, Guarantors and any
Affiliates of Lessee and Guarantors to Lessor.

     Lease Year: A twelve (12) month period commencing on the Commencement Date
or on each anniversary date thereof, as the case may be.

                                        6
<PAGE>
     Leased Improvements; Leased Property: Each as defined in Article I.

     Legal Requirements: All federal, state, county, municipal and other
governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting the Lessee's operation of its business on the
Leased Property, along with the Leased Property or the construction, use or
alteration thereof (including, without limitation, the Americans With
Disabilities Act and Section 504 of the Rehabilitation Act of 1973) whether now
or hereafter enacted and in force, including any which may (a) require repairs,
modifications, or alterations in or to the Leased Property, or (b) in any way
adversely affect the use and enjoyment thereof, and all permits, licenses,
authorizations and regulations relating thereto, and all covenants, agreements,
restrictions and encumbrances contained in any instruments, either of record or
known to Lessee (other than encumbrances created by Lessor without the consent
of Lessee), at any time in force affecting the Leased Property.

     Lender: As defined in Section 35.1.

     Lending Institution: Any insurance company, federally insured commercial or
savings bank, national banking association, savings and loan association,
employees' welfare, pension or retirement fund or system, corporate
profit-sharing or pension trust, college or university, or real estate
investment trust, including any corporation qualified to be treated for federal
tax purposes as a real estate investment trust, having a net worth of at least
Fifty Million Dollars ($50,000,000).

     Lessee: Desert Valley Hospital, Inc., a California corporation, and its
successors and permitted assigns, which, if required by Lessor, shall at all
times during the term of this Lease be a Single Purpose Entity created and to
remain in good standing as required hereunder for the sole purpose of leasing
and operating the Facility.

     Lessee's Personal Property: All machinery, equipment, medical equipment
(including all medical equipment affixed to the Leased Property), furniture,
furnishings, trailers, movable walls or partitions, computers, trade fixtures or
other personal property, and consumable inventory and supplies, currently owned
and acquired after the execution of this Lease, and used or useful in the
operation of the Facility, including without limitation, all items of furniture,
furnishings, equipment, supplies and inventory, and Lessee's operating licenses,
but excluding Lessee's accounts receivables and any items included within the
definition of Fixtures.

     Lessor: MPT of Victorville, LLC, a Delaware limited liability company, and
its successors and assigns.

     Licenses: As defined in Article XXXIX.

     Management Agreement: Any contracts and agreements for the management of
any part of the Leased Property, including, without limitation, the real estate
and the Leased Improvements and the operations of the Facility.

     Management Company: Any person, firm, corporation or other entity or
individual who or which will manage any part of the Leased Property.

     Market Value of Desert Valley Tenants: An amount equal to the collective
EBITDAR of the Desert Valley Tenants, on a trailing twelve (12) months basis,
multiplied by four (4).

     Medicaid : The medical assistance program established by Title XIX of the
Social Security Act (42 U.S.C. Sections 1396 et seq.) and any statute succeeding
thereto.

     Medicare: The health insurance program for the aged and disabled
established by Title XVIII of the Social Security Act (42 U.S.C. Sections 1395
et seq.) and any statute succeeding thereto.

     Mortgage: As defined in Section 35.1.

     MPT: Medical Properties Trust, Inc., an Affiliate of Lessor.

                                        7
<PAGE>
     MPT Development Services: MPT Development Services, Inc., an Affiliate of
Lessor.

     MRI Equipment: Magnetic resonance imaging (MRI) equipment used in
connection with the operation of the Facility.

     MRI Trailer: That certain trailer located on the Land in which the MRI
Equipment is used and operated.

     Officer's Certificate: A certificate of Lessee signed by the Chairman of
the Board of Directors, the President, any Vice President or the Treasurer of
Lessee or another officer or representative authorized to so sign by the Board
of Directors or other governing body of Lessee, or any other person whose power
and authority to act has been authorized by delegation in writing by any of the
persons holding the foregoing offices.

     Other Leases: All other leases entered into between Lessor or any Affiliate
of Lessor, on the one hand, and Lessee, any Guarantor, or any of their
respective Affiliates, on the other hand.

     Overdue Rate: On any date, a rate per annum equal to the highest rate
allowed by the laws of the State of California.

     Payment Date: Any due date for the payment of the installments of Base
Rent, Additional Rent, or any other sums payable under this Lease.

     Permitted Exceptions: As defined in Article I.

     Primary Intended Use: As defined in Article VII.

     Prime Rate: The annual rate announced by Citibank in New York, New York, to
be the prime rate for 90-day unsecured loans to its United States corporate
borrowers of the highest credit standing, as in effect from time to time.

     Purchase Agreement: That certain Purchase and Sale Agreement dated as of
February 28, 2005, by and among Lessor, Lessee, Desert Valley Health System,
Inc., Prime A Investments, L.L.C., Desert Valley Medical Group, Inc. and MPT
Operating Partnership, L.P.

     Purchase Price: The Initial Purchase Price, plus all costs and expenses not
included in the Initial Purchase Price incurred or paid in connection with the
purchase and lease of the Leased Property, including, but not limited to, legal,
appraisal, title, survey, environmental, seismic, engineering and other fees and
expenses paid in connection with the inspection of the Leased Property, and paid
to advisors and brokers (except to the extent such items are paid by Lessee),
and shall include the costs of Capital Additions financed by Lessor (and
Lessor's Affiliates) as provided in Section 10.3 of this Lease (collectively the
"Purchase Price Adjustment").

     Purchase Price Adjustment: As defined in the above definition of "Purchase
Price."

     Removal Notice: As defined in Section 16.2.

     Rent: Collectively, the Base Rent (as increased in accordance with the
provisions of Section 3.1(c) hereof) and the Additional Charges.

     Security Agreement: That certain Security Agreement to be effective the
Commencement Date executed and delivered by Lessee to Lessor, pursuant to the
terms of which Lessee has granted to Lessor a first lien and security interest
in all of Lessee's rights under this Lease (as this Lease may be amended,
modified and/or restated from time to time), to all of Lessee's Personal
Property (excluding accounts receivable) and to all of the Licenses.

     Single Purpose Entity: An entity which (i) exists solely for the purpose of
owning and/or leasing all or any portion of the Facility and conducting the
operation of the Business, (ii) conducts business only in its own name, (iii)

                                        8
<PAGE>
does not engage in any business other than the ownership and/or leasing all or
any portion of the Facility and the operation of the Business, (iv) does not
hold, directly or indirectly, any ownership interest (legal or equitable) in any
entity or any real or personal property other than the interest in the Facility
which it owns in the Facility and the other assets incident to the operation of
the Business, (v) does not have any debt other than as permitted by this Lease
or arising in the ordinary course of the Business and does not guarantee or
otherwise obligate itself with respect to the debts of any other person or
entity, other than as approved by Lessor, (vi) has its own separate books,
records, accounts, financial statements and tax returns (with no commingling of
funds or assets), (vii) holds itself out as being a company separate and apart
from any other entity, and (viii) maintains all corporate formalities
independent of any other entity.

     Statements of Cash Flow: For any fiscal year or other accounting period for
Lessee or Guarantors and their respective consolidated subsidiaries, statements
of earnings and retained earnings and of changes in financial position for such
period and for the period from the beginning of the respective Fiscal Year to
the end of such period and the related balance sheet as at the end of such
period, together with the notes thereto, all in reasonable detail and setting
forth in comparative form the corresponding figures for the corresponding period
in the preceding fiscal year, and prepared in accordance with GAAP.

     Taking: A taking or voluntary conveyance during the Term hereof of all or
part of the Leased Property, or any interest therein or right accruing thereto
or use thereof, as the result of, or in settlement of, any Condemnation or other
eminent domain proceeding affecting the Leased Property whether or not the same
shall have actually been commenced.

     Tenant: The lessees or tenants under the Tenant Leases, if any.

     Tenant Leases: All leases, subleases, pharmacy leases and other rental
agreements (written or verbal, now or hereafter in effect), if any, including,
without limitation, the Existing Subleases as described in Section 24.1 hereof,
that grant a possessory interest in and to any space in or any part of the
Leased Property, or that otherwise have rights with regard to the Leased
Property, and all Credit Enhancements, if any, held in connection therewith.

     Term: The actual duration of this Lease, including the Fixed Term and the
Extension Terms (if exercised by the Lessee) and taking into account any
termination.

     Unavoidable Delays: Delays due to strikes, lockouts, inability to procure
materials, power failure, acts of God, governmental restrictions, enemy action,
civil commotion, fire, unavoidable casualty or other causes beyond the control
of the party responsible for performing an obligation hereunder, provided that
lack of funds shall not be deemed a cause beyond the control of either party
hereto unless such lack of funds is caused by the failure of the other party
hereto.

     Unsuitable for Its Use or Unsuitable for Its Primary Intended Use: As used
anywhere in this Lease, the terms "Unsuitable for Its Use" or "Unsuitable for
Its Primary Intended Use" shall mean that, by reason of damage or destruction,
or a partial Taking by Condemnation, the Facility cannot be operated on a
commercially practicable basis for its Primary Intended Use, taking into
account, all relevant factors, and the effect of such damage or destruction or
partial Taking.

                                  ARTICLE III

                                      RENT

     3.1 BASE RENT. Lessee shall pay to Lessor, in advance and without notice,
demand, set off or counterclaim, in lawful money of the United States of
America, at Lessor's address set forth herein or at such other

                                        9
<PAGE>
place or to such other person, firm or entity as Lessor from time to time may
designate in writing, Base Rent during the Term as follows:

          (a) BASE RENT: Subject to adjustment as provided herein, Lessee shall
     pay Lessor base rent (the "Base Rent") in a per annum amount equal to ten
     percent (10%) multiplied by the Purchase Price, which as of the date hereof
     is an annual amount of Two Million, Eight Hundred Thousand and 00/100
     Dollars ($2,800,000.00). Base Rent shall be payable in advance in equal,
     consecutive monthly installments on or before the 10th day of each calendar
     month during the Term, commencing on the Commencement Date (prorated as to
     any partial month).

          (b) ADJUSTMENT OF BASE RENT: Commencing on January 1, 2006, and on
     each January 1 thereafter (each an "Adjustment Date") during the term of
     this Lease, the Base Rent shall be increased, if any, by an amount equal to
     the greater of (A) two percent (2%) per annum of the prior year's Base
     Rent, or (B) the percentage by which the CPI on the Adjustment Date shall
     have increased over the CPI figure in effect on the immediately preceding
     January 1. If the previous year's Base Rent is for a partial year, Base
     Rent shall be annualized based on the highest annual rate effective during
     the preceding year. Notwithstanding anything contained herein to the
     contrary, the parties hereto acknowledge and agree that all calculations of
     Base Rent as specified herein have been made by multiplying the Initial
     Purchase Price by ten percent (10%) per annum. In the event the Initial
     Purchase Price is adjusted and increased by the Purchase Price Adjustment,
     then all calculations of Base Rent shall be adjusted accordingly.

     3.2 ADDITIONAL CHARGES. In addition to the Base Rent (a) Lessee will also
pay and discharge as and when due and payable all other amounts, liabilities,
obligations and Impositions which Lessee assumes or agrees to pay under this
Lease, and all other amounts, liabilities, obligations and Impositions related
to the ownership, use, possession and operation of the Leased Property,
including, without limitation, all costs of owning and operating the Facility,
all taxes, insurance, maintenance and capital improvements, all licensure
violations, violations of and defaults under any of the Permitted Exceptions,
civil monetary penalties and fines, and (b) in the event of any failure on the
part of Lessee to pay any of those items referred to in clause (a) above, Lessee
will also promptly pay and reimburse Lessor for all such amounts paid by Lessor
and promptly pay and discharge every fine, penalty, interest and cost which may
be added for non-payment or late payment of such items (the items referred to in
clauses (a) and (b) above being referred to herein collectively as the
"Additional Charges"), and Lessor shall have all legal, equitable and
contractual rights, powers and remedies provided in this Lease, by statute or
otherwise, in the case of non-payment of the Additional Charges, as in the case
of the Base Rent. If any installment of Base Rent or Additional Charges (but
only as to those Additional Charges which are payable directly to Lessor) shall
not be paid within five (5) Business Days after its due date, Lessee will pay
Lessor on demand, as Additional Charges, a late charge (to the extent permitted
by law) computed at the Overdue Rate (or at the maximum rate permitted by law,
whichever is less) on the amount of such installment, from the due date of such
installment to the date of payment thereof. To the extent that Lessee pays any
Additional Charges to Lessor pursuant to any requirement of this Lease, Lessee
shall be relieved of its obligation to pay such Additional Charges to the entity
to which they would otherwise be due. Notwithstanding anything contained herein
to the contrary, if any Facility Mortgagee requires Lessor to pay into escrows
or make deposits relating to any part of the Additional Charges (including,
without limitation, the Impositions), Lessee shall pay to Lessor the amounts
required by the Facility Mortgagee, as and when required, and Lessor shall
transfer such amounts to such Facility Mortgagee or, pursuant to written
direction by Lessor, Lessee shall make such deposits directly with such Facility
Mortgagee.

     3.3 ABSOLUTE TRIPLE NET LEASE. The Rent shall be paid absolutely net to
Lessor, so that this Lease shall yield to Lessor the full amount of the
installments of Base Rent and the payments of Additional Charges throughout the
Term, but subject to any other provisions of this Lease which expressly provide
for adjustment of Rent or other charges. Lessee further acknowledges and agrees
that all charges, assessments or payments of any kind due and payable without
notice, demand, set off or counterclaim under the Permitted Exceptions shall be
paid by Lessee as they become due and payable.

     3.4 LEASE DEPOSIT. Intentionally Omitted.

                                       10
<PAGE>
     3.5 ADJUSTMENTS. Lessor and Lessee acknowledge that to the extent Lessee
fails to reimburse to Lessor immediately upon demand, any costs and expenses
which otherwise would be included in the definition of Purchase Price, then the
Lessor shall recalculate the Purchase Price to include such unreimbursed costs
and expenses and deliver to Lessee a letter confirming the Base Rent to be paid
hereunder and such letter shall constitute an amendment to the provisions of
this Lease.

                                   ARTICLE IV

                                   IMPOSITIONS

     4.1 PAYMENT OF IMPOSITIONS. Subject to Article XII relating to permitted
contests, Lessee will pay, or cause to be paid, all Impositions before any fine,
penalty, interest or cost may be added for non-payment, such payments to be made
directly to the taxing or assessing authorities where feasible, and Lessee will
promptly, upon request, furnish to Lessor copies of official receipts or other
satisfactory proof evidencing such payments. Lessee's obligation to pay such
Impositions shall be deemed absolutely fixed upon the date such Impositions
become a lien upon the Leased Property or any part thereof. If any such
Imposition may, at the option of the Lessor, lawfully be paid in installments
(whether or not interest shall accrue on the unpaid balance of such Imposition),
Lessee may exercise the option to pay the same (and any accrued interest on the
unpaid balance of such Imposition) in installments and, in such event, shall pay
such installments during the Term hereof (subject to Lessee's right of contest
pursuant to the provisions of Article XII) as the same respectively become due
and before any fine, penalty, premium, further interest or cost may be added
thereto. Lessor, at its expense, shall, to the extent permitted by applicable
law, prepare and file all tax returns and reports as may be required by
governmental authorities in respect of Lessor's net income, gross receipts,
franchise taxes and taxes on its capital stock, and Lessee, at its expense,
shall, to the extent permitted by applicable laws and regulations, prepare and
file all other tax returns and reports in respect of any Imposition as may be
required by governmental authorities. If any refund shall be due from any taxing
authority in respect of any Imposition paid by Lessee, the same shall be paid
over to or retained by Lessee if no Event of Default shall have occurred
hereunder and be continuing. Any such funds retained by Lessor due to an Event
of Default shall be applied as provided in Article XVI. Lessor and Lessee shall,
upon request of the other, provide such data as is maintained by the party to
whom the request is made with respect to the Leased Property as may be necessary
to prepare any required returns and reports. In the event governmental
authorities classify any property covered by this Lease as personal property,
Lessee shall file all personal property tax returns in such jurisdictions where
it may legally so file. Lessor, to the extent it possesses the same, and Lessee,
to the extent it possesses the same, will provide the other party, upon request,
with cost and depreciation records necessary for filing returns for any property
so classified as personal property. Where Lessor is legally required to file
personal property tax returns, Lessee will be provided with copies of assessment
notices indicating a value in excess of the reported value in sufficient time
for Lessee to file a protest. Lessee may, upon giving notice to Lessor, at
Lessee's option and at Lessee's sole cost and expense, protest, appeal, or
institute such other proceedings as Lessee may deem appropriate to effect a
reduction of real estate or personal property assessments and Lessor, at
Lessee's expense as aforesaid, shall fully cooperate with Lessee in such
protest, appeal, or other action. Billings for reimbursement by Lessee to Lessor
of personal property taxes shall be accompanied by copies of a bill therefor and
payments thereof which identify the personal property with respect to which such
payments are made.

     4.2 ADJUSTMENT OF IMPOSITIONS. Impositions imposed in respect of the
tax-fiscal period during which the Term terminates shall be adjusted and
prorated between Lessor and Lessee, whether or not such Imposition is imposed
before or after such termination, and Lessee's obligation to pay its prorated
share thereof shall survive such termination.

     4.3 UTILITY CHARGES. Lessee will contract for, in its own name, and will
pay or cause to be paid all charges for electricity, power, gas, oil, water and
other utilities used in connection with the Leased Property during the Term,
including, without limitation, all impact and tap fees necessary for the
operation of the Facility.

                                       11
<PAGE>
     4.4 INSURANCE PREMIUMS. Lessee will contract for in its own name and will
pay or cause to be paid all premiums for the insurance coverage required to be
maintained pursuant to Article XIII during the Term.

                                   ARTICLE V

                                 NO TERMINATION

     5.1 ACKNOWLEDGEMENT. The parties hereto understand, acknowledge and agree
that this is an absolute triple net lease. Lessee shall remain bound by this
Lease in accordance with its terms and shall neither take any action without the
consent of Lessor to modify, surrender or terminate the same, nor seek nor be
entitled to any abatement, deduction, deferment or reduction of Rent, or set-off
against the Rent, nor shall the respective obligations of Lessor and Lessee be
otherwise affected by reason of (a) any damage to, or destruction of, any Leased
Property or any portion thereof from whatever cause or any Taking of the Leased
Property or any portion thereof, (b) the lawful or unlawful prohibition of, or
restriction upon, Lessee's use of the Leased Property, or any portion thereof,
or the interference with such use by any person, corporation, partnership or
other entity, or by reason of eviction by paramount title; (c) any claim which
Lessee has or might have against Lessor or by reason of any default or breach of
any warranty by Lessor under this Lease or any other agreement between Lessor
and Lessee, or to which Lessor and Lessee are parties, (d) any bankruptcy,
insolvency, reorganization, composition, readjustment, liquidation, dissolution,
winding up or other proceedings affecting Lessor or any assignee or transferee
of Lessor, or (e) for any other cause whether similar or dissimilar to any of
the foregoing other than a discharge of Lessee from any such obligations as a
matter of law. Lessee hereby specifically waives all rights, arising from any
occurrence whatsoever, which may now or hereafter be conferred upon it by law to
(i) modify, surrender or terminate this Lease or quit or surrender the Leased
Property or any portion thereof, or (ii) entitle Lessee to any abatement,
reduction, suspension or deferment of the Rent or other sums payable by Lessee
hereunder, except as otherwise specifically provided in this Lease. The
obligations of Lessor and Lessee hereunder shall be separate and independent
covenants and agreements and the Rent and all other sums payable by Lessee
hereunder shall continue to be payable in all events unless the obligations to
pay the same shall be terminated pursuant to the express provisions of this
Lease or by termination of this Lease other than by reason of an Event of
Default.

                                   ARTICLE VI

               OWNERSHIP OF LEASED PROPERTY AND PERSONAL PROPERTY

     6.1 OWNERSHIP OF THE LEASED PROPERTY. Lessee acknowledges that the Leased
Property is the property of Lessor and that Lessee has only the right to the
possession and use of the Leased Property upon the terms and conditions of this
Lease.

     6.2 LESSEE'S PERSONAL PROPERTY. Lessee, at its expense, shall install,
affix, assemble and place on the Leased Property, the Lessee's Personal
Property, which Lessee's Personal Property shall be subject to the security
interests and liens as provided in Section 16.8 of this Lease. Lessee shall not,
without the prior written consent of Lessor (which consent may be withheld in
the event Lessee is in default hereunder) remove any of the Lessee's Personal
Property from the Leased Property. Lessee shall provide and maintain during the
entire Term all such Lessee's Personal Property as shall be necessary in order
to operate the Facility in compliance with all licensure and certification
requirements, in compliance with all applicable Legal Requirements and Insurance
Requirements and otherwise in accordance with customary practice in the industry
for the Primary Intended Use. If removal is authorized by Lessor as provided
herein, all of Lessee's Personal Property not removed by Lessee within seven (7)
days following the expiration or earlier termination of this Lease shall be
considered abandoned by Lessee and may be appropriated, sold, destroyed or
otherwise disposed of by Lessor without first giving notice thereof to Lessee,
without any payment to Lessee and without any obligation to Lessee to account
therefor. Lessee will, at its expense, restore the Leased Property and repair of
all damage to the Leased Property caused by the removal of Lessee's Personal
Property, whether effected by Lessee, Lessor, any Lessee lender, or any Lessor
lender.

                                       12
<PAGE>
                                  ARTICLE VII

                      CONDITION AND USE OF LEASED PROPERTY

     7.1 CONDITION OF THE LEASED PROPERTY. Lessee acknowledges receipt and
delivery of possession of the Leased Property and that Lessee has examined and
otherwise has acquired knowledge of the condition of the Leased Property prior
to the execution and delivery of this Lease and has found the same to be in good
order and repair and satisfactory for its purpose hereunder. Lessee is leasing
the Leased Property "as is" in its present condition. Lessee waives any claim or
action against Lessor in respect of the condition of the Leased Property. Lessee
warrants and represents that (a) it has been in possession of the Leased
Property since approximately 1992, (b) the Leased Property is in compliance with
all of the requirements, restrictions and conditions as set forth in the
Permitted Exceptions, and (c) the use of the Leased Property for the Primary
Intended Use will not violate any of the Permitted Exceptions. LESSOR MAKES NO
WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED
PROPERTY OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, SUITABILITY,
DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, AS TO
QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING
AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE. LESSEE ACKNOWLEDGES THAT
THE LEASED PROPERTY HAS BEEN INSPECTED BY LESSEE AND IS SATISFACTORY TO IT.

     7.2 USE OF THE LEASED PROPERTY.

          (a) Lessee covenants that it will obtain and maintain throughout the
     entire Term all approvals needed to use and operate the Leased Property and
     the Facility for the Primary Intended Use, as defined below, under
     applicable local, state and federal law, including but not limited to
     licensure approvals and Medicare and/or a Medicaid certifications, provider
     numbers, certificates of need, governmental approvals, and full
     accreditation from all applicable governmental authorities, if any, that
     are necessary for the operation of the Facility as an eighty-three (83) bed
     acute care hospital facility and incorporated medical office building, and
     as necessary for the operation of the MRI Equipment.

          (b) Beginning on the Commencement Date and during the entire Term,
     Lessee shall use the Leased Property and the improvements thereon only as
     an eighty-three (83)-bed acute care hospital facility and incorporated
     medical office building (and use the MRI Trailer only for the operation of
     the MRI Equipment) and for such other legal ancillary uses as may be
     necessary in connection with or incidental to such uses, subject to any
     covenants, restrictions and easements relating to the Facility (the
     "Primary Intended Use"). Lessee shall not use the Leased Property or any
     portion thereof for any other use, nor change the number or type of beds
     within the Facility, nor reconfigure or rearrange any portion of the Leased
     Property or the Facility without the prior written consent of Lessor, which
     consent Lessee agrees may be withheld in Lessor's sole discretion. No use
     shall be made or permitted to be made of the Leased Property and no acts
     shall be done which will cause the cancellation of any insurance policy
     covering the Leased Property or any part thereof, nor shall Lessee sell or
     otherwise provide to residents or patients therein, or permit to be kept,
     used or sold in or about the Leased Property any article which may be
     prohibited by law or by the standard form of fire insurance policies, any
     other insurance policies required to be carried hereunder, or fire
     underwriters regulations. Lessee shall, at its sole cost, comply with all
     of the requirements, covenants and restrictions pertaining to the Leased
     Property, including, without limitation, all of the Permitted Exceptions,
     and other requirements of any insurance board, association, organization or
     company necessary for the maintenance of the insurance, as herein provided,
     covering the Leased Property and Lessee's Personal Property.

          (c) Lessee covenants and agrees that during the Term it will
     continuously operate the Leased Property only as a provider of healthcare
     services in accordance with the Primary Intended Use and Lessee shall
     maintain its certifications for reimbursement and licensure and all
     accreditations.

                                       13
<PAGE>
          (d) Lessee shall not commit or suffer to be committed any waste on the
     Leased Property, or in the Facility, nor shall Lessee cause or permit any
     nuisance thereon.

          (e) Lessee shall neither suffer nor permit the Leased Property or any
     portion thereof, including any Capital Addition whether or not financed by
     Lessor, or Lessee's Personal Property, to be used in such a manner as (i)
     might reasonably tend to impair Lessor's (or Lessee's, as the case may be)
     title thereto or to any portion thereof, or (ii) may reasonably make
     possible a claim or claims of adverse usage or adverse possession by the
     public, as such, or of implied dedication of the Leased Property or any
     portion thereof.

          (f) Lessee agrees that during the entire term of this Lease, Lessor
     shall have the right and option to erect a sign on the Leased Property
     stating that the Leased Property is owned by the Lessor. Such sign shall be
     in a size, and shall be erected in a location, reasonably acceptable to
     Lessor and approved by Lessee, which approval shall not be unreasonably
     withheld, conditioned or delayed.

     7.3 LESSOR TO GRANT EASEMENTS. Lessor will, from time to time so long as no
default, and no event has occurred which with the giving of notice or the
passage of time or both would constitute a default, has occurred and is
continuing under this Lease, the Other Leases, at the request of Lessee and at
Lessee's cost and expense, but subject to the approval of Lessor (a) grant
easements and other rights in the nature of easements, (b) release existing
easements or other rights in the nature of easements which are for the benefit
of the Leased Property, (c) dedicate or transfer unimproved portions of the
Leased Property for road, highway or other public purposes, (d) execute
petitions to have the Leased Property annexed to any municipal corporation or
utility district, (e) execute amendments to any covenants and restrictions
affecting the Leased Property and (f) execute and deliver to any person any
instrument appropriate to confirm or effect such grants, releases, dedications
and transfers (to the extent of its interest in the Leased Property), but only
upon delivery to Lessor of an Officer's Certificate stating (and such other
information as Lessor may reasonably require confirming) that such grant,
release, dedication, transfer, petition or amendment is required for and not
detrimental to the proper conduct of the Primary Intended Use on the Leased
Property and does not reduce its value.

                                  ARTICLE VIII

                        LEGAL AND INSURANCE REQUIREMENTS

     8.1 COMPLIANCE WITH LEGAL AND INSURANCE REQUIREMENTS. Subject to Article
XII relating to permitted contests, Lessee, at its expense, will promptly (a)
comply with all Legal Requirements and Insurance Requirements in respect of the
use, operation, maintenance, repair and restoration of the Leased Property,
whether or not compliance therewith shall require structural change in any of
the Leased Improvements or interfere with the use and enjoyment of the Leased
Property, and (b) procure, maintain and comply with all licenses, certificates
of need, provider agreements, accreditations and other authorizations required
for any use of the Leased Property and Lessee's Personal Property then being
made, and for the proper erection, installation, operation and maintenance of
the Leased Property or any part thereof, including without limitation, any
Capital Additions. Upon Lessor's request, Lessee shall deliver copies of all
such licenses, certificates of need, agreements and other authorizations.

     8.2 LEGAL REQUIREMENT COVENANTS. Lessee covenants and agrees that the
Leased Property and Lessee's Personal Property shall not be used for any
unlawful purpose. Lessee shall use its best efforts to have tenants acquire and
maintain all licenses, certificates, permits, provider agreements and other
authorizations and approvals needed to operate the Leased Property and all
equipment and machinery used in or in connection with the Leased Property in its
customary manner for the Primary Intended Use and any other use conducted on the
Leased Property as may be permitted from time to time hereunder. Lessee further
covenants and agrees that Lessee's use of the Leased Property, the use of all
equipment and machinery used in connection with the Leased Property, and the
maintenance, alteration, and operation of the same, and all parts thereof, shall
at all times conform to all applicable local, state and federal laws,
ordinances, rules and regulations.

                                       14
<PAGE>
     8.3 HAZARDOUS MATERIALS. Except for Hazardous Materials generated in the
normal course of business regarding the Primary Intended Use (which Hazardous
Materials shall be handled and disposed of in compliance with all Hazardous
Materials Laws), no Hazardous Materials shall be installed, used, generated,
manufactured, treated, handled, refined, produced, processed, stored or disposed
of, or otherwise present in, on or under the Leased Property. No activity shall
be undertaken on the Leased Property which would cause (i) the Leased Property
to become a treatment, storage or disposal facility of hazardous waste,
infectious waste, biomedical or medical waste, within the meaning of, or
otherwise bring the Leased Property within the ambit of RCRA or any Hazardous
Material Laws, (ii) a release or threatened release of Hazardous Material from
the Leased Property within the meaning of, or otherwise bring the Leased
Property within the ambit of, CERCLA or SARA or any Hazardous Material Laws or
(iii) the discharge of Hazardous Material into any watercourse, surface or
subsurface of body of water or wetland, or the discharge into the atmosphere of
any Hazardous Material which would require a permit under any Hazardous Material
Laws. No activity shall be undertaken with respect to the Leased Property which
would cause a violation or support a claim under RCRA, CERCLA, SARA or any
Hazardous Material Laws. No investigation, administrative order, litigation or
settlement with respect to any Hazardous Material is, to the best of the
Lessee's knowledge, threatened or in existence with respect to the Leased
Property. No notice has been served on Lessee from any entity, governmental body
or individual claiming any violation of any Hazardous Material Laws, or
requiring compliance with any Hazardous Material Laws, or demanding payment or
contribution for environmental damage or injury to natural resources. Lessee has
not obtained and Lessee has no knowledge of any reason Lessee will be required
to obtain any permits, licenses, or similar authorizations to occupy, operate or
use the Improvements or any part of the Leased Property by reason of any
Hazardous Material Laws. Lessee hereby agrees to indemnify and defend, at its
sole cost and expense, and hold Lessor, its successors and assigns, harmless
from and against and to reimburse Lessor with respect to any and all claims,
demands, actions, causes of action, losses, damages, liabilities, costs and
expenses (including, without limitation, reasonable attorney's fees and court
costs) of any and every kind or character, known or unknown, fixed or
contingent, asserted against or incurred by Lessor at any time and from time to
time by reason or arising out of any breach or violation of the above. Lessee
shall, at its sole cost, expense, risk and liability, remove or cause to be
removed from the Leased Property all Hazardous Materials generated in connection
with the Primary Intended Use and as found in hospital and healthcare
facilities, including, without limitation, all infectious waste materials,
syringes, needles and any materials contaminated with bodily fluids of any type,
character or description of whatsoever nature in accordance with all Hazardous
Materials Laws. Lessee shall not dispose of any such infectious waste and
Hazardous Materials in any receptacles used for the disposal of normal refuse.

     8.4 HEALTHCARE LAWS. Lessee warrants and represents that this Lease and all
subleases are, and at all times during the term of this Lease will be, in
compliance with all Healthcare Laws. Lessee agrees to add to all of its third
party agreements relating to the Leased Property, including, without limitation,
all subleases, that in the event it is determined that such agreement and/or
sublease is in violation of the Healthcare Laws, such agreement and/or sublease
shall be renegotiated so that same are in compliance with all Healthcare Laws.
Lessee agrees promptly to notify Lessor in writing of receipt of any notice of
investigation of any alleged Healthcare Law violations. Lessee hereby agrees to
indemnify and defend, at Lessee's sole cost and expense, and hold Lessor, its
successors and assigns harmless from and against and to reimburse Lessor and its
successors and assigns with respect to any and all claims, demands, actions,
causes of action, losses, damages, liabilities, costs and expenses (including,
without limitation, reasonable attorneys' fees and court costs) of any and every
kind or character, known or unknown, fixed or contingent, asserted against or
incurred by Lessor, its successors and assigns, at any time and from time to
time by reason or arising out of any breach by Lessee of any of the
representations and warranties set forth in this Section 8.4.

     8.5 REPRESENTATIONS AND WARRANTIES. Lessee represents and warrants to
Lessor that as of the date hereof: (i) Lessee is a duly organized and existing
corporation and is duly authorized to enter into, deliver and perform this Lease
and the other documents referred to herein and such agreements constitute the
valid and binding obligations of Lessee, enforceable in accordance with their
terms, (ii) neither the entering into this Lease or the other documents referred
to herein nor the performance by Lessee of its obligations hereunder or under
the other documents referred to herein will violate any provision of law or any
agreement, indenture, note or other instrument

                                       15
<PAGE>
binding upon Lessee, (iii) no authority from or approval by any governmental
body, commission or agency or consent of any third party is required in
connection with the making or validity of and the execution, delivery and
performance of this Lease or the other documents referred to herein, (iv) there
are no actions, suits or proceedings pending against or, to the knowledge of
Lessee, threatened against or affecting Lessee or any of its Affiliates, in any
court or before or by any governmental department, agency or instrumentality, an
adverse decision in which could materially and adversely affect the financial
condition, business or operations of Lessee or the ability of Lessee to perform
its obligations under this Lease or the other documents referred to herein, (v)
Lessee and each of its Affiliates is in compliance in all material respects with
all applicable laws, ordinances, rules, regulations and requirements of
governmental authorities, and (vi) Lessee has obtained and delivered copies
thereof to Lessor on the Commencement Date all certificates of need, Medicare
billing numbers, other licenses and agreements required for the operation of the
Facility and the MRI Equipment.

     8.6 SINGLE PURPOSE ENTITY. Lessee represents, warrants, covenants and
agrees that Lessee is, at the time of the execution of this Lease, and shall
remain at all times during the term of this Lease, a Single Purpose Entity
created and to remain in good standing for the sole purpose of leasing and
operating the Facility in accordance with the terms of this Lease.
Simultaneously with the execution of this Lease, and as requested by Lessor at
other times during the term of this Lease, Lessee shall provide Lessor evidence
that Lessee is a Single Purpose Entity and is in good standing in the state of
its organization and in the state in which the Leased Property is located.

     8.7 ORGANIZATIONAL DOCUMENTS. Lessee shall not permit or suffer, without
the prior written consent of Lessor an amendment or modification of its
Organizational Documents (as defined below), or the organizational documents of
any constituent entity within the Lessee, which changes Lessee's status as a
single purpose entity, (ii) any dissolution or termination of its existence, or
(iii) change in its state of formation or incorporation or its name. Lessee has,
simultaneously with the execution of this Lease, delivered to Lessor a true and
complete copy of its articles of incorporation and by-laws creating Lessee, and
all other documents creating and governing the Lessee (collectively, the
"Organizational Documents"). Lessee warrants and represents that the
Organizational Documents (i) were duly executed and delivered, (ii) are in full
force and effect and binding upon and enforceable in accordance with their
terms, (iii) constitute the entire understanding among the shareholders,
partners and members of Lessee, and (iv) no breach exists under the
Organizational Documents and no act has occurred and no condition exists which,
with the giving of notice or the passage of time or both would constitute a
breach under the Organizational Documents.

                                   ARTICLE IX

                         REPAIRS; RESERVE; RESTRICTIONS

     9.1 MAINTENANCE AND REPAIR.

          (a) Lessee, at its expense, will keep the Leased Property and all
     private roadways, sidewalks and curbs appurtenant thereto (and Lessee's
     Personal Property) in good first class order and repair (whether or not the
     need for such repairs occurs as a result of Lessee's use, any prior use,
     the elements, the age of the Leased Property or any portion thereof) and,
     except as otherwise provided in Articles XIV and XV, with reasonable
     promptness, will make all necessary and appropriate repairs thereto of
     every kind and nature, whether interior or exterior, structural or
     non-structural, ordinary or extraordinary, foreseen or unforeseen or
     arising by reason of a condition existing prior to the commencement of the
     Term of this Lease (concealed or otherwise). All repairs shall, to the
     extent reasonably achievable, be at least equivalent in quality to the
     original work. Lessee will not take or omit to take any action the taking
     or omission of which might materially impair the value or the usefulness of
     the Leased Property or any part thereof for the Primary Intended Use.
     Notwithstanding anything contained herein to the contrary, Lessee shall
     make

                                       16
<PAGE>
     additions, modifications and remodeling to the Leased Property which are
     not Capital Additions from time to time which are necessary for the Primary
     Intended Use and which permit the Lessee to comply fully with its
     obligations set forth in this Lease, provided that any such action will be
     undertaken expeditiously, in a workmanlike manner and will not
     significantly alter the character or purpose or detract from the value or
     operating efficiency of the Leased Property and will not significantly
     impair the revenue producing capability of the Leased Property or adversely
     affect the ability of the Lessee to comply with the provisions of this
     Lease. Such additions, modifications and remodeling shall, without payment
     by Lessor at any time, be included under the terms of this Lease and shall
     be the property of Lessor. Lessee shall notify the Lessor of any and all
     repairs, improvements, additions, modifications and remodeling made to the
     Leased Property in excess of Twenty-Five Thousand and 00/100 Dollars
     ($25,000.00) and obtain consent from Lessor prior to making such repairs,
     improvements, additions, modifications and remodeling.

          (b) Lessor shall not under any circumstances be required to build or
     rebuild any improvements on the Leased Property, or to make any repairs,
     replacements, alterations, restorations, or renewals of any nature or
     description to the Leased Property, whether ordinary or extraordinary,
     structural or non-structural, foreseen or unforeseen, or to make any
     expenditure whatsoever with respect thereto in connection with this Lease,
     or to maintain the Leased Property in any way.

          (c) Nothing contained in this Lease and no action or inaction by
     Lessor shall be construed as (i) constituting the consent or request of
     Lessor, expressed or implied, to any contractor, subcontractor, laborer,
     materialman or vendor to or for the performance of any labor or services or
     the furnishing of any materials or other property for the construction,
     alteration, addition, repair or demolition of or to the Leased Property or
     any part thereof, or (ii) giving Lessee any right, power or permission to
     contract for or permit the performance of any labor or services or the
     furnishing of any materials or other property in such fashion as would
     permit the making of any claim against Lessor in respect thereof or to make
     any agreement that may create, or in any way be the basis for, any right,
     title, interest, lien, claim or other encumbrance upon the estate of Lessor
     in the Leased Property or any portion thereof.

          (d) Unless Lessor shall convey any of the Leased Property to Lessee
     pursuant to the provisions of this Lease, Lessee will, upon the expiration
     or prior termination of the Term, vacate and surrender the Leased Property
     to Lessor in the condition in which the Leased Property was originally
     received from Lessor, except as improved, repaired, rebuilt, restored,
     altered or added to as permitted or required by the provisions of this
     Lease and except for ordinary wear and tear (subject to the obligation of
     Lessee to maintain the Leased Property in good order and repair during the
     entire Term of the Lease), damage caused by the gross negligence or willful
     acts of Lessor and damage or destruction described in Article XIV or
     resulting from a Taking described in Article XV which Lessee is not
     required by the terms of this Lease to repair or restore.

     9.2 RESERVES FOR EXTRAORDINARY REPAIRS. Commencing on the Commencement
Date, Lessee shall make quarterly deposits to a reserve (the "Reserve") at a
financial institution of the Lessor's choosing, provided, however, that the
first such deposit on the Commencement Date, shall be prorated. Subject to the
immediately preceding sentence, each deposit to be made quarterly thereafter
through and including December 31, 2005, shall be equal to the sum of Two
Thousand Five Hundred and 00/100 Dollars ($2,500.00) per bed per annum. For the
period commencing on the Commencement Date and ending on December 31, 2005, the
number of beds shall be assumed to be eighty-three (83). Beginning on January 1,
2006, and on each January 1 thereafter, the number of beds shall be determined
by the actual number of beds placed in service or certified to be available for
use in the Facility, which shall not be reduced without the prior written
consent of Lessor. The account to which such payments are made shall require the
signature of an officer of Lessee and Lessor to make withdrawals. Beginning on
January 1, 2006, and on each January 1 thereafter during the entire Lease Term,
such payment into the Reserve shall be increased by two percent (2%) per annum.
Notwithstanding anything contained herein to the contrary, Lessee shall pay into
the Reserve any amounts needed in excess of such required payments as provided
herein. The amount in the Reserve, including interest, may be used by Lessee
with Lessor's approval, which such approval will not be unreasonably

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withheld, or by Lessor with Lessee's approval, which such approval will not be
unreasonably withheld, to pay for Extraordinary Repairs on the Facility. Lessee
hereby grants to Lessor a security interest in all monies deposited into the
Reserve and Lessee shall, within fifteen (15) days from the Commencement Date,
execute all documents necessary for Lessor to perfect its security interest in
the Reserve. Lessor and Lessee agree that the first dollars of all expenditures
for Extraordinary Repairs made in each year during the Term shall be funded from
the Reserve account to the full extent of such account; provided, however, that
if Lessor, in its reasonable discretion, determines at any time that the balance
then remaining in the Reserve account is insufficient to pay in full for the
present and future anticipated Extraordinary Repairs on the Facility, Lessor
shall retain funds in the Reserve account in an amount sufficient to pay in full
for Extraordinary Repairs and Lessee will deposit additional sums into the
account from time to time, upon the written request of Lessor, in amounts equal
to the difference between the then balance in the Reserve account and the cost
to complete the present and future Extraordinary Repairs so that at all times
there is an adequate amount in the Reserve account to pay for such items on a
going forward basis. So long as no default has occurred under any of the terms
hereof, and no event has occurred which with the giving of notice or the passage
of time or both would constitute a default hereunder, any amounts remaining in
the Reserve, after the payment of and the reimbursement for the Extraordinary
Repairs on the Facility, at the expiration of this Lease shall be returned to
Lessee

     9.3 ENCROACHMENTS; RESTRICTIONS. If any of the Leased Improvements shall,
at any time, encroach upon any property, street or right-of-way adjacent to the
Leased Property, or shall violate the agreements or conditions contained in any
federal, state or local law, restrictive covenant or other agreement affecting
the Leased Property, or any part thereof, or shall impair the rights of others
under any easement or right-of-way to which the Leased Property is subject, then
promptly upon the request of Lessor, Lessee shall, at its expense, subject to
its right to contest the existence of any encroachment, violation or impairment,
(a) obtain valid and effective waivers or settlements of all claims, liabilities
and damages resulting from each such encroachment, violation or impairment,
whether the same shall affect Lessor or Lessee or (b) make such changes in the
Leased Improvements, and take such other actions, as Lessor in the good faith
exercise of its judgment deems reasonably practicable, to remove such
encroachment, or to end such violation or impairment, including, if necessary,
the alteration of any of the Leased Improvements, and in any event take all such
actions as may be necessary in order to be able to continue the operation of the
Facility without such violation, encroachment or impairment. Any such alteration
shall be made in conformity with the applicable requirements of Article X.
Lessee's obligations under this Section 9.2 shall be in addition to and shall in
no way discharge or diminish any obligation of any insurer under any policy of
title or other insurance and Lessee shall be entitled to a credit for any sums
paid by Lessee and recovered by Lessor under any such policy of title or other
insurance.

                                   ARTICLE X

                                CAPITAL ADDITIONS

     10.1 CONSTRUCTION OF CAPITAL ADDITIONS TO THE LEASED PROPERTY.

          (a) If no Event of Default shall have occurred or be continuing under
     this Lease, the Other Leases and the Tenant Leases, Lessee shall have the
     right, upon and subject to the terms and conditions set forth below, to
     construct or install Capital Additions on the Leased Property without the
     prior written consent of Lessor, provided, however, except as expressly
     provided in Section 10.2(d) hereof, Lessee shall not be permitted to create
     any Encumbrance on the Leased Property, in connection with such Capital
     Addition. Prior to commencing construction of any Capital Addition, Lessee
     shall, at Lessee's sole cost and expense (i) submit to Lessor in writing a
     proposal setting forth in reasonable detail any proposed Capital Addition,
     (ii) submit to Lessor such plans and specifications, certificates of need
     and other approvals, permits, licenses, contracts and other information
     concerning the proposed Capital Addition as Lessor may reasonably request,
     and (iii) obtain all necessary certificates of need, state licensure
     surveys and all regulatory approvals of architectural plans. Without
     limiting the generality of the foregoing, such proposal

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<PAGE>
     shall indicate the approximate projected cost of constructing such Capital
     Addition, and the use or uses to which it will be put.

          (b) Prior to commencing construction of any Capital Addition, Lessee
     shall first request Lessor to provide funds to pay for such Capital
     Addition in accordance with the provisions of Section 10.3. If Lessor
     declines or is unable to provide such financing on terms acceptable to
     Lessee, the provisions of Section 10.2 shall apply. Notwithstanding any
     other provision of this Article X to the contrary, no Capital Additions
     shall be made without the consent of Lessor, which consent shall not be
     unreasonably withheld or delayed, if the Capital Addition Cost of such
     proposed Capital Addition, when aggregated with the costs of all Capital
     Additions made by Lessee, would exceed twenty-five percent (25%) of the
     then Fair Market Value of the Leased Property or would diminish the value
     of the Leased Property. Furthermore, no Capital Addition shall be made
     which would tie in or connect the Leased Property and/or any Leased
     Improvements on the Leased Property with any other improvements on property
     adjacent to the Leased Property (and not part of the Land covered by this
     Lease) including, without limitation, tie-ins of buildings or other
     structures or utilities, unless Lessee shall have obtained the prior
     written approval of Lessor, which approval in Lessor's sole discretion may
     be granted or withheld. All proposed Capital Additions shall be
     architecturally integrated and consistent with the Leased Property.

     10.2 CAPITAL ADDITIONS FINANCED BY LESSEE. If Lessee provides or arranges
to finance any Capital Addition, this Lease shall be and hereby is amended to
provide as follows:

          (a) The above referenced proportion of the Fair Market Added Value of
     Capital Additions paid for by Lessee to the Fair Market Value of the entire
     Leased Property expressed as a percentage is referred to herein as the
     "Added Value Additional". The Added Value Additional determined as provided
     above for each Capital Addition financed or paid for by Lessee shall remain
     in effect until any subsequent Capital Addition.

          (b) There shall be no adjustment in the Base Rent by reason of any
     such Capital Addition.

          (c) Upon the expiration or earlier termination of this Lease, except
     by reason of the default by Lessee hereunder, Lessor shall, if Lessee does
     not purchase the Leased Property as provided herein, compensate Lessee for
     all Capital Additions paid for or financed by Lessee in any of the
     following ways, determined in the sole discretion of Lessor:

               (i) By purchasing all Capital Additions paid for by Lessee from
          Lessee for cash in the amount of the Fair Market Added Value of all
          such Capital Additions paid for or financed by Lessee; or

               (ii) By purchasing such Capital Additions from Lessee by
          delivering to Lessee Lessor's purchase money promissory note in the
          amount of said Fair Market Added Value, due and payable not later than
          eighteen (18) months after the date of expiration or other termination
          of this Lease, bearing interest at the test rate applicable under
          Section 1272 of the Code or any successor section thereto ("Test
          Rate") or, if no such Test Rate exists, at the Prime Rate, which
          interest shall be payable monthly, and which note shall be secured by
          a mortgage on the Leased Property, subject to all mortgages and
          encumbrances on the Leased Property at the time of such purchase; or

               (iii) Such other arrangement regarding such compensation as shall
          be mutually acceptable to Lessor and Lessee.

          (d) Lessor and Lessee agree that Lessee's lender for Capital Additions
     shall have the right to secure its loan by a mortgage upon the Leased
     Property provided such mortgage (i) shall not exceed the

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<PAGE>
     cost of the Capital Additions being made with the proceeds of such loan,
     (ii) shall be subordinate to Lessor's acquisition cost and any Capital
     Additions paid for by the Lessor of the Leased Property, (iii) shall be
     subordinate to any mortgage or encumbrance now existing or hereinafter
     created, including, without limitation, Facility Mortgages, (iv) the term
     of the loan shall not extend beyond the term of this Lease, (v) such lender
     executes all subordination and other documents and certificates reasonably
     required by the Facility Mortgagees, and (vi) shall be limited solely to
     Lessee's interest in the Leased Property.

     10.3 CAPITAL ADDITIONS FINANCED BY LESSOR.

          (a) Lessee shall request that Lessor provide or arrange financing for
     a Capital Addition by providing to Lessor such information about the
     Capital Addition as Lessor may request (a "Request"), including without
     limitation, all information referred to in Section 10.1 above. Lessor may,
     but shall be under no obligation to, obtain the funds necessary to meet the
     Request. Within thirty (30) days of receipt of a Request, Lessor shall
     notify Lessee as to whether it will finance the proposed Capital Addition
     and, if so, the terms and conditions upon which it would do so, including
     the terms of any amendment to this Lease. In no event shall the portion of
     the projected Capital Addition Cost comprised of land, if any, materials,
     labor charges and fixtures be less than ninety percent (90%) of the total
     amount of such cost. Lessee may withdraw its Request by notice to Lessor at
     any time before or after receipt of Lessor's terms and conditions.

          (b) If Lessor agrees to finance the proposed Capital Addition, Lessee
     shall provide Lessor with the following prior to any advance of funds:

               (i) all customary or other required loan documentation, if the
          Capital Addition is to be financed through the incurrence of debt;

               (ii) any information, certificates of need, regulatory approvals
          of architectural plans and other certificates, licenses, permits or
          documents requested by either Lessor or any lender with whom Lessor
          has agreed or may agree to provide financing which are necessary to
          confirm that Lessee will be able to use the Capital Addition upon
          completion thereof in accordance with the Primary Intended Use,
          including all required federal, state or local government licenses and
          approvals;

               (iii) an Officer's Certificate and, if requested, a certificate
          from Lessee's architect, setting forth in reasonable detail the
          projected (or actual, if available) cost of the proposed Capital
          Addition;

               (iv) an amendment to this Lease, duly executed and acknowledged,
          in form and substance satisfactory to Lessor (the "Lease Amendment"),
          and containing such provisions as may be necessary or appropriate,
          including without limitation, any appropriate changes in the legal
          description of the Land, the Fair Market Value and the Rent, which
          shall be increased to take into account an adjustment to the Purchase
          Price in an amount equal to the equity contributed by Lessor to
          finance the Capital Addition or, in the case of debt financing, the
          principal and interest on the debt incurred by Lessor to finance the
          Capital Addition;

               (v) a grant deed conveying title to Lessor to any land acquired
          for the purpose of constructing the Capital Addition, free and clear
          of any liens or encumbrances except those approved by Lessor and, both
          prior to and following completion of the Capital Addition, an as-built
          survey thereof satisfactory to Lessor;

               (vi) endorsements to any outstanding policy of title insurance
          covering the Leased Property and any additional land referred to in
          10.3(b)(v) above, or a supplemental policy of title

                                       20
<PAGE>
          insurance covering the Leased Property and any additional land
          referred to in 10.3(b)(v) above, satisfactory in form and substance to
          Lessor (A) updating the same without any additional exceptions, except
          as may be permitted by Lessor; and (B) increasing the coverage thereof
          by an amount equal to the Fair Market Value of the Capital Addition
          (except to the extent covered by the owner's policy of title insurance
          referred to in subparagraph (vii) below);

               (vii) if required by Lessor, (A) an owner's policy of title
          insurance insuring fee simple title to any land conveyed to Lessor
          pursuant to subparagraph (v), free and clear of all liens and
          encumbrances except those approved by Lessor and (B) a lender's policy
          of title insurance satisfactory in form and substance to Lessor and
          the Lending Institution advancing any portion of the Capital Addition
          Cost;

               (viii) if required by Lessor, prior to commencing the Capital
          Addition, an M.A.I. appraisal of the Leased Property indicating that
          the value of the Leased Property upon completion of the Capital
          Addition will exceed the Fair Market Value of the Leased Property
          prior thereto by an amount not less than one hundred percent (100%) of
          the Capital Addition Costs; and

               (ix) such other certificates (including, but not limited to,
          endorsements increasing the insurance coverage, if any, at the time
          required by Section 13.1), documents, contracts, opinions of counsel,
          appraisals, surveys, certified copies of duly adopted resolutions of
          the governing body of Lessee authorizing the execution and delivery of
          the Lease Amendment and any other instruments as may be reasonably
          required by Lessor and any Lending Institution advancing or
          reimbursing Lessee for any portion of the Capital Addition Cost.

          (c) Lessor and Lessee agree that Lessor shall have the sole right to
     designate the general contractor, developer, architect, construction
     company, engineer and other parties which will participate in the
     development of the Capital Addition. Lessor and Lessee further agree that
     Lessor shall control the preparation and negotiation of the definitive
     agreements with such parties and Lessor will give Lessee an opportunity to
     review such definitive agreements prior to their execution.

          (d) Upon making a Request to finance a Capital Addition, whether or
     not such financing is actually consummated, Lessee shall pay or agree to
     pay, upon demand, all reasonable costs and expenses of Lessor and any
     Lending Institution which has committed to finance such Capital Addition
     which have been paid or incurred by them in connection with the financing
     of the Capital Addition, including, but not limited to, (i) the fees and
     expenses of their respective counsel, (ii) all printing expenses, (iii) the
     amount of any filing, registration and recording taxes and fees, (iv)
     documentary stamp taxes, if any, (v) title insurance charges, appraisal
     fees, if any, rating agency fees, if any, and (vi) commitment fees, if any,
     and (vii) costs of obtaining regulatory and governmental approvals,
     including but not limited to any required certificates of need, for the
     construction, operation, use or occupancy of the Capital Addition.

     10.4 SALVAGE. All materials which are scrapped or removed in connection
with the making of either Capital Additions permitted by Section 10.1 or repairs
required by Article IX shall be or become the property of Lessor.

                                   ARTICLE XI

                                      LIENS

     Subject to the provisions of Article XII relating to permitted contests,
Lessee will not directly or indirectly create or allow to remain and will
promptly discharge at its expense any lien, encumbrance, attachment, title
retention agreement or claim upon the Leased Property or any attachment, levy,
claim or encumbrance in respect of the Rent, not including, however, (a) this
Lease, (b) the matters, if any, set forth in EXHIBIT B, (c) restrictions, liens

                                       21
<PAGE>
and other encumbrances which are consented to in writing by Lessor, or any
easements granted pursuant to the provisions of Section 7.3 of this Lease, (d)
liens for those taxes of Lessor which Lessee is not required to pay hereunder,
(e) liens for Impositions or for sums resulting from noncompliance with Legal
Requirements so long as (1) the same are not yet payable or are payable without
the addition of any fine or penalty or (2) such liens are in the process of
being contested as permitted by Article XII, (f) liens of mechanics, laborers,
materialmen, suppliers or vendors for sums either disputed or not yet due,
provided that (1) the payment of such sums shall not be postponed for more than
sixty (60) days after the completion of the action giving rise to such lien and
such reserve or other appropriate provisions as shall be required by law or
generally accepted accounting principles shall have been made therefor or (2)
any such liens are in the process of being contested as permitted by Article
XII, and (g) any liens which are the responsibility of Lessor pursuant to the
provisions of Article XXXVII of this Lease. Unless otherwise expressly provided
herein, Lessee shall not mortgage or grant any interest or security interest in,
or otherwise assign, any part of Lessee's rights and interests in this Lease,
the Leased Property, Lessee's Personal Property, or any permits, licenses,
certificates of need (if any) or any other approvals required to operate the
Leased Property during the Term without the prior written consent of Lessor,
which may be withheld at Lessor's sole discretion.

                                  ARTICLE XII

                               PERMITTED CONTESTS

     Lessee, on its own or on Lessor's behalf (or in Lessor's name), but at
Lessee's expense, after two (2) business days' prior written notice to Lessor,
may contest, by appropriate legal proceedings conducted in good faith and with
due diligence, the amount, validity or application, in whole or in part, of any
Imposition, Legal Requirement, Insurance Requirement, lien, attachment, levy,
encumbrance, charge or claim not otherwise permitted by Article XI, provided
that (a) in the case of an unpaid Imposition, lien, attachment, levy,
encumbrance, charge or claim, the commencement and continuation of such
proceedings shall suspend the collection thereof from Lessor and from the Leased
Property, (b) neither the Leased Property nor any Rent therefrom nor any part
thereof or interest therein would be in any immediate danger of being sold,
forfeited, attached or lost, (c) in the case of a Legal Requirement, Lessor
would not be in any immediate danger of civil or criminal liability for failure
to comply therewith pending the outcome of such proceedings, (d) in the event
that any such contest shall involve a sum of money or potential loss in excess
of Fifty Thousand Dollars ($50,000), then, in any such event, (i) provided the
Consolidated Net Worth of Lessee and/or Guarantors is then in excess of Fifty
Million Dollars ($50,000,000), Lessee shall deliver to Lessor an Officer's
Certificate to the effect set forth in clauses (a), (b) and (c), to the extent
applicable, or (ii) in the event the Consolidated Net Worth of Lessee and/or
Guarantors is not then in excess of Fifty Million Dollars ($50,000,000), then
Lessee shall deliver to Lessor and its counsel an opinion of Lessee's counsel to
the effect set forth in clauses (a), (b) and (c), to the extent applicable, (e)
in the case of a Legal Requirement and/or an Imposition, lien, encumbrance or
charge, Lessee shall give such reasonable security as may be demanded by Lessor
to insure ultimate payment of the same and to prevent any sale or forfeiture of
the affected portion of the Leased Property or the Rent by reason of such
non-payment or non-compliance; provided, however, the provisions of this Article
XII shall not be construed to permit Lessee to contest the payment of Rent
(except as to contests concerning the method of computation or the basis of levy
of any Imposition or the basis for the assertion of any other claim) or any
other sums payable by Lessee to Lessor hereunder, (f) in the case of an
Insurance Requirement, the coverage required by Article XIII shall be
maintained, and (g) if such contest be finally resolved against Lessor or
Lessee, Lessee shall, as Additional Charges due hereunder, promptly pay the
amount required to be paid, together with all interest and penalties accrued
thereon, or comply with the applicable Legal Requirement or Insurance
Requirement. Lessor, at Lessee's expense, shall execute and deliver to Lessee
such authorizations and other documents as may reasonably be required in any
such contest and, if reasonably requested by Lessee or if Lessor so desires,
Lessor shall join as a party therein. Lessee shall indemnify and save Lessor
harmless against any liability, cost or expense of any kind that may be imposed
upon Lessor in connection with any such contest and any loss resulting
therefrom.

                                       22
<PAGE>
                                  ARTICLE XIII

                                    INSURANCE

     13.1 GENERAL INSURANCE REQUIREMENTS. During the Term of this Lease, Lessee
shall at all times keep the Leased Property and all property located in or on
the Leased Property, including Lessee's Personal Property, insured against loss
or damage from such causes as are customarily insured against, by prudent owners
of similar facilities. Without limiting the generality of the foregoing, Lessee
shall obtain and maintain in effect throughout the Lease Term, the kinds and
amounts of insurance deemed necessary by the Lessor and as described below. This
insurance shall be written by insurance companies (i) acceptable to the Lessor,
(ii) that are rated at least an "A-VII" or better by Best's Insurance Guide and
Key Ratings and a claim payment rating by Standard & Poor's Corporation of A or
better, and (iii) authorized, licensed and qualified to do insurance business in
the state in which the Leased Property is located. Notwithstanding the foregoing
or any other provision of this Article XIII, Lessor acknowledges and agrees that
the insurance coverages required under subparagraphs (d) and (h) of this Section
13.1 are being handled through a captive insurance company, the identity of
which has been disclosed to the Lessee and Lessor. The aggregate amount of
coverage by a single company must not exceed five percent (5%) of the insurance
company's policyholders' surplus. The policies must name Lessor (and any other
entities as Lessor may deem necessary) as an additional insured and losses shall
be payable to Lessor and/or Lessee as provided in Article XIV. Each insurance
policy required hereunder must (i) provide primary insurance without right of
contribution from any other insurance carried by Lessor, (ii) contain an express
waiver by the insurer of any right of subrogation, setoff or counterclaim
against any insured party thereunder including Lessor, (iii) permit Lessor to
pay premiums at Lessor's discretion, and (iv) as respects any third party
liability claim brought against Lessor, obligate the insurer to defend Lessor as
an additional insured thereunder. In addition, the policies shall name as an
additional insured the holder or holders ("Facility Mortgagee") of any mortgage,
deed of trust or other security agreement that may be placed by Lessor upon the
Leased Property or any part thereof, and any and all renewals, replacements,
modifications, consolidations, spreaders and extensions thereof ("Facility
Mortgage"), if any, by way of a standard form of mortgagee's loss payable
endorsement. Any loss adjustment shall require the written consent of Lessor and
each affected Facility Mortgagee(s). Evidence of insurance and/or Impositions
shall be deposited with Lessor and, if requested, with any Facility
Mortgagee(s). If any provision of any Facility Mortgage which constitutes a lien
on the Leased Property requires deposits of insurance to be made with such
Facility Mortgagee, Lessee shall either pay to Lessor monthly the amounts
required and Lessor shall transfer such amounts to such Facility Mortgagee or,
pursuant to written direction by Lessor, Lessee shall make such deposits
directly with such Facility Mortgagee. The policies on the Leased Property,
including the Leased Improvements, the Fixtures and Lessee's Personal Property,
shall insure against the following risks:

          (a) All Risks or Special Form Property insurance against loss or
     damage to the building and improvements, including but not limited to,
     perils of fire, lightning, water, wind, theft, vandalism and malicious
     mischief, plate glass breakage, and perils typically provided under an
     Extended Coverage Endorsement and other forms of broadened risk perils, and
     insured on a "replacement cost" value basis to the extent of the full
     replacement value of the Leased Property. The policy shall include coverage
     for subsidence. The deductible amount thereunder shall be borne by the
     Lessee in the event of a loss and the deductible must not exceed Ten
     Thousand and 00/100 Dollars ($10,000.00) per occurrence. Further, in the
     event of a loss, Lessee shall abide by all provisions of the insurance
     contract, including proper and timely notice of the loss to the insurer,
     and Lessee further agrees that it will notify the Lessor of any loss in the
     amount of Twenty-Five Thousand and 00/100 Dollars ($25,000.00) or greater
     and that no claim at or in excess of Twenty-Five Thousand and 00/100
     Dollars ($25,000.00) shall be settled without the prior written consent of
     Lessor, which consent shall not be unreasonably withheld or delayed.

          (b) Flood and earthquake insurance shall be required only in the event
     that the Leased Property is located in a flood plain or earthquake zone.
     Such insurance to be in an amount equal to the Full Replacement Cost value
     of the Facility, subject to no more than a Twenty-Five Thousand Dollars
     ($25,000) per occurrence deductible and such policy shall include coverage
     for subsidence.

                                       23
<PAGE>
          (c) Insurance against loss of earnings in an amount sufficient to
     cover not less than twelve (12) months' lost earnings and written in an
     "all risks" form, either as an endorsement to the insurance required under
     subparagraph 13.1(a) above, or under a separate policy.

          (d) Worker's compensation insurance covering all employees in amounts
     that are customary for the Lessee's industry.

          (e) Commercial General Liability in a primary amount of at least Three
     Million and 00/100 Dollars ($3,000,000.00) per occurrence, bodily injury
     for injury or death of any one person and One Hundred Thousand and 00/100
     Dollars ($100,000.00) for Property Damage for damage to or loss of property
     of others, subject to a Ten Million and 00/100 Dollars ($10,000,000.00)
     annual aggregate policy limit for all bodily injury and property damage
     claims, occurring on or about the Leased Property or in any way related to
     the Leased Property, including but not limited to, any swimming pools or
     other rehabilitation and recreational facilities or areas that are located
     on the Leased Property otherwise related to the Leased Property. Such
     policy shall include coverages of a Broad Form nature, including, but not
     limited to, Explosion, Collapse and Underground (XCU), Products Liability,
     Completed Operations, Broad Form Contractual Liability, Broad Form Property
     Damage, Personal Injury, Incidental Malpractice Liability, and Host Liquor
     Liability.

          (f) Automobile and vehicle liability insurance coverage for all owned,
     non-owned, leased or hired automobiles and vehicles in a primary limit
     amount of One Million and 00/100 Dollars ($1,000,000.00) per occurrence for
     bodily injury; One Hundred Thousand and 00/100 Dollars ($100,000.00) per
     occurrence for property damage; subject to an annual aggregate policy limit
     of One Million and 00/100 Dollars ($1,000,000.00).

          (h) Professional liability insurance for any physician employed or
     other employee or agent of the Lessee providing services at the Leased
     Property in an amount not less than Three Million and 00/100 Dollars
     ($3,000,000.00) per individual claim and Ten Million and 00/100 Dollars
     ($10,000,000.00) annual aggregate.

          (i) A commercial blanket bond covering all employees of the Lessee,
     including its officers and the individual owners of the insured business
     entity, whether a joint-venture, partnership, proprietorship or
     incorporated entity, against loss as a result of their dishonesty. Policy
     limit shall be in an amount of at least One Million and 00/100 Dollars
     ($1,000,000.00) subject to a deductible of no more than Ten Thousand and
     00/100 Dollars ($10,000.00) per occurrence.

     The term "Full Replacement Cost" as used herein, shall mean the actual
     replacement cost thereof from time to time, including increased cost of
     construction endorsement, less exclusions provided in the normal fire
     insurance policy. In the event either Lessor or Lessee believes that the
     Full Replacement Cost has increased or decreased at any time during the
     Term, it shall have the right to have such Full Replacement Cost
     re-determined by the fire insurance company which is then providing the
     largest amount of fire insurance carried on the Leased Property,
     hereinafter referred to as the "impartial appraiser". The party desiring to
     have the Full Replacement Cost so re-determined shall forthwith, on receipt
     of such determination by such impartial appraiser, give written notice
     thereof to the other party hereto. The determination of such impartial
     appraiser shall be final and binding on the parties hereto, and Lessee
     shall forthwith increase, or may decrease, the amount of the insurance
     carried pursuant to this Article, as the case may be, to the amount so
     determined by the impartial appraiser. Lessee shall pay the fee, if any, of
     the impartial appraiser.

     13.2 ADDITIONAL INSURANCE. In addition to the insurance described above,
Lessee shall maintain such additional insurance as may be required from time to
time by any Facility Mortgagee and shall further at all times

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<PAGE>
maintain adequate worker's compensation insurance coverage for all persons
employed by Lessee on the Leased Property, in accordance with the requirements
of applicable local, state and federal law.

     13.3 WAIVER OF SUBROGATION. All insurance policies to be obtained by Lessee
as required hereunder, including, without limitation, insurance policies
covering the Leased Property, the Fixtures, the Facility, and/or Lessee's
Personal Property, including without limitation, contents, fire and casualty
insurance, shall expressly waive any right of subrogation on the part of the
insurer against the Lessor. Lessee shall obtain insurance policies which will
include such a waiver clause or endorsement regardless of whether same is
obtainable without extra cost, and in the event of such an extra charge Lessee
shall pay the same.

     13.4 FORM OF INSURANCE. All of the policies of insurance referred to in
this Section shall be written in form satisfactory to Lessor and by insurance
companies satisfactory to Lessor. Lessee shall pay all of the premiums therefor,
and shall deliver such original policies, or in the case of a blanket policy, a
copy of the original policy certified in writing by a duly authorized agent for
the insurance company as a "true and certified" copy of the policy, to the
Lessor effective with the Commencement Date and furnished annually thereafter
(and, with respect to any renewal policy, at least fifteen (15) days prior to
the expiration of the existing policy) and in the event of the failure of Lessee
either to obtain such insurance in the names herein called for or to pay the
premiums therefor, or to deliver such policies or certified copies of such
policies (if allowed hereunder) to Lessor at the times required, Lessor shall be
entitled, but shall have no obligation, to obtain such insurance and pay the
premiums therefor, which premiums shall be repayable to Lessor upon written
demand therefor, and failure to repay the same shall constitute an Event of
Default within the meaning of Section 16.1(c). Each insurer mentioned in this
Section shall agree, by endorsement on the policy or policies issued by it, or
by independent instrument furnished to Lessor, that it will give to Lessor sixty
(60) days' prior written notice (at Lessor's notice address as specified in this
Lease {the "Lessor's Notice Address")) before the policy or policies in question
shall be altered, allowed to expire or canceled. The parties hereto agree that
all insurance policies, endorsements and certificates which provide that the
insurer will "endeavor to" give notice before same may be altered, allowed to
expire or canceled will not be acceptable to Lessor. Notwithstanding anything
contained herein to the contrary, all policies of insurance required to be
obtained by the Lessee hereunder shall provide (i) that such policies will not
lapse, terminate, be canceled, or be amended or modified to reduce limits or
coverage terms unless and until Lessor has received not less than sixty (60)
days' prior written notice at the Lessor's Notice Address, with a simultaneous
copy to MPT Operating Partnership, LP, Attention: Its President, 1000 Urban
Center Drive, Suite 501, Birmingham, Alabama 35242, and (ii) that in the event
of cancellation due to non-payment of premium, the insurer will provide not less
than ten (10) days' prior written notice to the Lessor at the Lessor's Notice
Address, with a simultaneous copy to MPT Operating Partnership, LP, Attention:
Its President, 1000 Urban Center Drive, Suite 501, Birmingham, Alabama 35242.

     13.5 INCREASE IN LIMITS. In the event that Lessor shall at any time in its
reasonable discretion deem the limits of the personal injury, property damage or
general public liability insurance then carried to be insufficient, the parties
shall endeavor to agree on the proper and reasonable limits for such insurance
to be carried and such insurance shall thereafter be carried with the limits
thus agreed on until further change pursuant to the provisions of this Section.
If the parties shall be unable to agree thereon, the proper and reasonable
limits for such insurance to be carried shall be determined by an impartial
third party selected by the parties. Nothing herein shall permit the amount of
insurance to be reduced below the amount or amounts required by any of the
Facility Mortgages.

     13.6 BLANKET POLICY. Notwithstanding anything to the contrary contained in
this Section, Lessee's obligations to carry the insurance provided for herein
may be brought within the coverage of a so-called blanket policy or policies of
insurance carried and maintained by Lessee provided that

          (a) Any such blanket policy or policies are acceptable to and have
     been approved by the Lessor;

          (b) Any such blanket policy or policies shall not be changed, altered
     or modified without the prior written consent of the Lessor; and

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<PAGE>
          (c) Any such blanket policy or policies shall otherwise satisfy the
     insurance requirements of this Article XIII (including the requirement of
     thirty (30) days' written notice before the expiration or cancellation of
     such policies as required by Section 13.4 hereof) and shall provide for
     deductibles in amounts acceptable to Lessor.

     13.7 NO SEPARATE INSURANCE. Lessee shall not, on Lessee's own initiative or
pursuant to the request or requirement of any third party, take out separate
insurance concurrent in form or contributing in the event of loss with that
required in this Article to be furnished by, or which may reasonably be required
to be furnished by, Lessee, or increase the amounts of any then existing
insurance by securing an additional policy or additional policies, unless all
parties having an insurable interest in the subject matter of the insurance,
including in all cases Lessor and all Facility Mortgagees, are included therein
as additional insureds and the loss is payable under said insurance in the same
manner as losses are required to be payable under this Lease. Lessee shall
immediately notify Lessor of the taking out of any such separate insurance or of
the increasing of any of the amounts of the then existing insurance by securing
an additional policy or additional policies.

                                  ARTICLE XIV

                                FIRE AND CASUALTY

     14.1 INSURANCE PROCEEDS. All proceeds payable by reason of any loss or
damage to the Leased Property, or any portion thereof, and insured under any
policy of insurance required by Article XIII of this Lease shall be paid to
Lessor and held by Lessor in trust (subject to the provisions of Section 14.7)
and shall be made available for reconstruction or repair, as the case may be, of
any damage to or destruction of the Leased Property, or any portion thereof, and
shall be paid out by Lessor from time to time for the reasonable cost of such
reconstruction or repair. Any excess proceeds of insurance remaining after the
completion of the restoration or reconstruction of the Leased Property (or in
the event neither Lessor nor Lessee is required or elects to repair and restore,
all such insurance proceeds) shall be retained by Lessor free and clear upon
completion of any such repair and restoration except as otherwise specifically
provided below in this Article XIV. All salvage resulting from any risk covered
by insurance shall belong to Lessor except that any salvage relating to Capital
Additions paid for by Lessee or to Lessee's Personal Property shall belong to
Lessee.

     14.2 RECONSTRUCTION IN THE EVENT OF DAMAGE OR DESTRUCTION COVERED BY
INSURANCE.

          (a) Except as provided in Section 14.7, if during the Term, the Leased
     Property is totally or partially destroyed from a risk covered by the
     insurance described in Article XIII and the Facility thereby is rendered
     Unsuitable for its Use, Lessee shall have the option, by giving written
     notice to Lessor within sixty (60) days following the date of such
     destruction, to (i) restore the Facility to substantially the same
     condition as existed immediately before the damage or destruction, or (ii)
     so long as Lessee is not in monetary or payment default of any kind, and no
     event has occurred which with the giving of notice or the passage of time,
     or both, would constitute such a default, under this Lease, the Other
     Leases and the Tenant Leases, purchase the Leased Property from Lessor for
     a purchase price equal to the Option Price as defined in Section 35.1, or
     (iii) so long as the damage or destruction was not caused by the negligence
     of Lessee, its agents, servants, employees or contractors, terminate this
     Lease and, in this event, Lessor shall be entitled to retain the insurance
     proceeds, and Lessee shall pay to Lessor on demand, the amount of any
     deductible or uninsured loss arising in connection therewith. In the event
     Lessee purchases the Leased Property pursuant to this Section 14.2(a), the
     terms set forth in Article XVIII shall apply and the sale/purchase must be
     closed within ninety (90) days after the date of the written notice from
     Lessee to Lessor of Lessee's intent to purchase, unless a different closing
     date is agreed upon in writing by Lessor and Lessee.

          (b) If during the Term, the Leased Improvements and/or the Fixtures
     are totally or partially destroyed from a risk covered by the insurance
     described in Article XIII, but the Facility is not thereby rendered
     Unsuitable for its Primary Intended Use, Lessee shall restore the Facility
     to substantially the same

                                       26
<PAGE>
     condition as existed immediately before the damage or destruction. Such
     damage or destruction shall not terminate this Lease; provided, however, if
     Lessee cannot within a reasonable time obtain all necessary governmental
     approvals, including building permits, licenses, conditional use permits
     and any certificates of need, after diligent efforts to do so, in order to
     be able to perform all required repair and restoration work and to operate
     the Facility for its Primary Intended Use in substantially the same manner
     as immediately prior to such damage or destruction, so long as Lessee is
     not in monetary or payment default of any kind, and no event has occurred
     which with the giving of notice or the passage of time or both would
     constitute such a default, under the terms of this Lease, the Other Leases
     and the Tenant Leases, Lessee shall have the option, by giving written
     notice to Lessor within sixty (60) days following the date of such damage
     or destruction, to purchase the Leased Property for a purchase price equal
     to the Option Price as defined in Section 35.1. In the event Lessee
     purchases the Leased Property pursuant to this Section 14.2(b), the terms
     set forth in Article XVIII shall apply and the sale/purchase must be closed
     within ninety (90) days after the date of the written notice from Lessee to
     Lessor of Lessee's intent to purchase, unless a different closing date is
     agreed upon in writing by Lessor and Lessee.

          (c) If the cost of the repair or restoration exceeds the amount of
     proceeds received by Lessor from the insurance required under Article XIII,
     Lessee shall be obligated to contribute any excess amount needed to restore
     the Facility prior to use of the insurance proceeds. Such amount shall be
     paid by Lessee to Lessor (or a Facility Mortgagee if required) to be held
     in trust together with any other insurance proceeds for application to the
     cost of repair and restoration.

          (d) In the event Lessor accepts Lessee's offer to purchase the Leased
     Property, this Lease shall terminate upon payment of the Option Price and
     Lessor shall remit to Lessee all insurance proceeds being held in trust by
     Lessor or the Facility Mortgagee if applicable.

     14.3 RECONSTRUCTION IN THE EVENT OF DAMAGE OR DESTRUCTION NOT COVERED BY
INSURANCE. Except as provided in Section 14.7 below, if during the Term, the
Facility is totally or materially destroyed from a risk not covered by the
insurance described in Article XIII but that would have been covered if Lessee
carried the insurance customarily maintained by, and generally available to, the
operators of reputable health care facilities in the region in which the
Facility is located, then, whether or not such damage or destruction renders the
Facility Unsuitable for its Use, Lessee shall, at its sole cost and expense,
restore the Facility to substantially the same condition it was in immediately
before such damage or destruction and such damage or destruction shall not
terminate this Lease. If such damage or destruction is not material, Lessee
shall restore the Leased Property at Lessee's expense.

     14.4 LESSEE'S PERSONAL PROPERTY. All insurance proceeds payable by reason
of any loss of or damage to any of Lessee's Personal Property or Capital
Additions financed by Lessee shall be paid to Lessor and Lessor shall hold such
insurance proceeds in trust to pay the cost of repairing or replacing the damage
to Lessee's Personal Property or the Capital Additions financed by Lessee.

     14.5 RESTORATION OF LESSEE'S PROPERTY. If Lessee is required or elects to
restore the Facility as provided in Sections 14.2 or 14.3, Lessee shall also
restore all alterations and improvements made by Lessee, Lessee's Personal
Property and all Capital Additions paid for by Lessee.

     14.6 NO ABATEMENT OF RENT. This Lease shall remain in full force and effect
and Lessee's obligation to make rental payments and to pay all other charges
required by this Lease shall remain unabated during any period required for
repair and restoration.

     14.7 DAMAGE NEAR END OF TERM. Notwithstanding any provisions of Sections
14.2 or 14.3 to the contrary but subject to the option of Lessee to purchase the
Leased Property as provided in Section 35.1 by giving Lessor written notice
within sixty (60) days following the date of such damage or destruction, if
damage to or destruction of the Facility occurs during the last twenty-four (24)
months of the Term, and if such damage or destruction cannot be fully repaired
and restored within six (6) months immediately following the date of loss,
either

                                       27
<PAGE>
party shall have the right to terminate this Lease by giving notice to the other
within sixty (60) days after the date of damage or destruction, in which event
Lessor shall be entitled to retain the insurance proceeds and Lessee shall pay
to Lessor on demand the amount of any deductible or uninsured loss arising in
connection therewith; provided, however, that any such notice given by Lessor
shall be void and of no force and effect if Lessee exercises an available option
to extend the Term for one Extended Term within thirty (30) days following
receipt of such termination notice.

     14.8 TERMINATION OF RIGHT TO PURCHASE AND SUBSTITUTION. Any termination of
this Lease pursuant to this Article XIV shall cause any right to purchase under
any other provisions of this Lease granted to Lessee under this Lease to be
terminated and to be without further force and effect.

     14.9 WAIVER. Lessee hereby waives any statutory or common law rights of
termination which may arise by reason of any damage or destruction of the
Facility.

                                   ARTICLE XV

                                  CONDEMNATION

     15.1 DEFINITIONS.

          (a) "Condemnation" means (i) the exercise of any governmental power,
     whether by legal proceedings or otherwise, by a Condemnor or (ii) a
     voluntary sale or transfer by Lessor to any Condemnor, either under threat
     of Condemnation or while legal proceedings for Condemnation are pending.

          (b) "Date of Taking" means the date the Condemnor has the right to
     possession of the property being condemned.

          (c) "Award" means all compensation, sums or anything of value awarded,
     paid or received on a total or partial Condemnation.

          (d) "Condemnor" means any public or quasi-public authority, or private
     corporation or individual, having the power of Condemnation.

     15.2 PARTIES' RIGHTS AND OBLIGATIONS. If during the Term there is any
Taking of all or any part of the Leased Property or any interest in this Lease
by Condemnation, the rights and obligations of the parties shall be determined
by this Article XV.

     15.3 TOTAL TAKING. If there is a Taking of all of the Leased Property by
Condemnation, this Lease shall terminate on the Date of Taking.

     15.4 PARTIAL TAKING. If there is a Taking of a portion of the Leased
Property by Condemnation, this Lease shall remain in effect if the Facility is
not thereby rendered Unsuitable for its Primary Intended Use. If, however, the
Facility is thereby rendered Unsuitable for its Primary Intended Use, Lessee
shall have the option (a) to restore the Facility, at its own expense, to the
extent possible, to substantially the same condition as existed immediately
before the partial Taking, or (b) so long as Lessee is not in monetary or
payment default of any kind, and no event has occurred which with the giving of
notice or the passage of time or both would constitute such a default, under the
terms of this Lease, the Other Leases and the Tenant Leases to acquire the
Leased Property from Lessor for a purchase price equal to the Option Price as
defined in Section 35.1, in which event this Lease shall terminate upon payment
of the Option Price. Lessee shall exercise its option by giving Lessor notice
thereof within sixty (60) days after Lessee receives notice of the Taking. In
the event Lessee exercises the option to purchase the Leased Property pursuant
to this Section 15.4, the terms set forth in Article XVIII shall apply and the
sale/purchase

                                       28
<PAGE>
must be closed within thirty (30) days after the date of the written notice from
Lessee to Lessor of Lessee's intent to purchase, unless a different closing date
is agreed upon in writing by Lessor and Lessee.

     15.5 RESTORATION. If there is a partial Taking of the Leased Property and
this Lease remains in full force and effect pursuant to Section 15.4, Lessee
shall accomplish all necessary restoration.

     15.6 AWARD DISTRIBUTION. In the event Lessee exercises the purchase option
as described in clause (b) of Section 15.4, the entire Award shall belong to
Lessee provided no event of default is continuing and Lessor agrees to assign to
Lessee all of its rights thereto. In any other event, the entire Award shall
belong to and be paid to Lessor, except that, if this Lease is terminated, and
subject to the rights of the Facility Mortgagee, Lessee shall be entitled to
receive from the Award, if and to the extent such Award specifically includes
such items, the following:

          (a) A sum attributable to the Capital Additions for which Lessee would
     be entitled to reimbursement at the end of the Term pursuant to the
     provisions of Section 10.2(c) and the value, if any, of the leasehold
     interest of Lessee under this Lease; and

          (b) A sum attributable to Lessee's Personal Property and any
     reasonable removal and relocation costs included in the Award.

If Lessee is required or elects to restore the Facility, Lessor agrees that,
subject to the rights of the Facility Mortgagees, its portion of the Award shall
be used for such restoration and it shall hold such portion of the Award in
trust, for application to the cost of the restoration. Notwithstanding any
provision of this Lease to the contrary, any Award retained by Lessor and not
used for restoration shall be taken into account as an amount received by Lessor
for purposes of calculating the Option Price as defined in Section 35.1.

     15.7 TEMPORARY TAKING. The Taking of the Leased Property, or any part
thereof, by military or other public authority shall constitute a Taking by
Condemnation only when the use and occupancy by the Taking authority has
continued for longer than six (6) months. During any such six (6) month period
all the provisions of this Lease shall remain in full force and effect and the
Base Rent shall not be abated or reduced during such period of Taking.

                                  ARTICLE XVI

                                     DEFAULT

     16.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following
events (individually, an "Event of Default") shall constitute Events of Default
or defaults hereunder:

          (a) a default or event of default shall occur under any of the Other
     Leases that is not cured within the applicable cure period as provided
     therein, or

          (b) if Lessee shall fail to make a payment of the Rent or any other
     monetary payment due and payable by Lessee under this Lease when the same
     becomes due and payable, or

          (c) if Lessee shall fail to observe or perform any other term,
     covenant or condition of this Lease and such failure is not cured by Lessee
     within a period of thirty (30) days after receipt by Lessee of written
     notice thereof from Lessor (provided, however, in no event shall Lessor be
     required to give more than one (1) written notice per calendar year for a
     non-monetary default), unless such failure cannot with due diligence be
     cured within a period of thirty (30) days, in which case such failure shall
     not be deemed to continue if Lessee proceeds promptly and with due
     diligence to cure the failure and diligently completes the curing thereof
     within sixty (60) days after receipt by Lessee of Lessor's notice of
     default, or

                                       29
<PAGE>
          (d) if Lessee or any Guarantor shall:

               (i) admit in writing its inability to pay its debts generally as
          they become due,

               (ii) file a petition in bankruptcy or a petition to take
          advantage of any insolvency act,

               (iii) make an assignment for the benefit of its creditors,

               (iv) consent to the appointment of a receiver of itself or of the
          whole or any substantial part of its property, or

               (v) file a petition or answer seeking reorganization or
          arrangement under the Federal bankruptcy laws or any other applicable
          law or statute of the United States of America or any state thereof,
          or

               (vi) if Lessee's license as defined in Article XXXIX or
          participation or certification in Medicare, Medicaid or other
          governmental payor programs is terminated, or

               (vii) if Lessee admits in writing that it cannot meet its
          obligations as they become due; or is declared insolvent according to
          any law; or assignment of Lessee's property is made for the benefit of
          creditors; or a receiver or trustee is appointed for Lessee or its
          property; or the interest of Lessee under this Lease is levied on
          under execution or other legal process; or any petition is filed by or
          against Lessee to declare Lessee bankrupt or to delay, reduce or
          modify Lessee's capital structure if Lessee be a corporation or other
          entity (provided that no such levy, execution, legal process or
          petition filed against Lessee shall constitute a breach of this Lease
          if Lessee shall vigorously contest the same by appropriate proceedings
          and shall remove or vacate the same within thirty (30) days from the
          date of its creation, service or filing); or

               (viii) the abandonment or vacation of the Leased Property by
          Lessee (Lessee's absence from the Leased Property for thirty (30)
          consecutive days shall constitute abandonment), or Lessee fails to
          continuously operate the Facility in accordance with the terms of this
          Lease.

          (e) if the Lessee or any Guarantor shall, after a petition in
     bankruptcy is filed against it, be adjudicated a bankrupt or if a court of
     competent jurisdiction shall enter an order or decree appointing, without
     the consent of Lessee or such Guarantor, as the case may be, a receiver of
     Lessee or such Guarantor or of the whole or substantially all of its
     property, or approving a petition filed against it seeking reorganization
     or arrangement of Lessee or such Guarantor under the federal bankruptcy
     laws or any other applicable law or statute of the United States of America
     or any state thereof, and such judgment, order or decree shall not be
     vacated or set aside or stayed within ninety (90) days from the date of the
     entry thereof, or

          (f) if Lessee or any Guarantor shall be liquidated or dissolved, or
     shall begin proceedings toward such liquidation or dissolution, or shall,
     in any manner, permit the sale or divestiture of substantially all of its
     assets other than in connection with a merger or consolidation of Lessee or
     such Guarantor into, or a sale of substantially all of Lessee's or such
     Guarantor's assets to, another corporation, provided that if the survivor
     of such merger or the purchaser of such assets shall assume all of Lessee's
     obligations under this Lease by a written instrument, in form and substance
     reasonably satisfactory to Lessor, accompanied by an opinion of counsel,
     reasonably satisfactory to Lessor and addressed to Lessor stating that such
     instrument of assumption is valid, binding and enforceable against the
     parties thereto in accordance with its terms (subject to usual bankruptcy
     and other creditors' rights exceptions), and provided, further, that if,
     immediately after giving effect to any such merger, consolidation or sale,
     Lessee or such other corporation

                                       30
<PAGE>
     (if not the Lessee) surviving the same, together with Guarantors, shall
     have a Consolidated Net Worth not less than the Consolidated Net Worth of
     Lessee or Guarantors immediately prior to such merger, consolidation or
     sale, all as to be set forth in an Officer's Certificate delivered to
     Lessor within thirty (30) days of such merger, consolidation or sale, an
     Event of Default shall not be deemed to have occurred, or

          (g) if the estate or interest of Lessee in the Leased Property or any
     part thereof shall be levied upon or attached in any proceeding and the
     same shall not be vacated or discharged within the later of ninety (90)
     days after commencement thereof or thirty (30) days after receipt by Lessee
     of written notice thereof from Lessor (unless Lessee shall be contesting
     such lien or attachment in good faith in accordance with Article XII
     hereof), or

          (h) if, except as a result of damage, destruction or a partial or
     complete Condemnation, Lessee voluntarily ceases operations on the Leased
     Property for a period in excess of ninety (90) days, or

          (i) if any of the representations or warranties made by Lessee or any
     of the Sellers named in the Purchase Agreement or in the certificates
     delivered in connection therewith are or become untrue in any material
     respect, and which is not cured within ten (10) days after notice from
     Lessor, or

          (j) a default shall occur under the Guaranty, or

          (k) a default or event of default shall occur under the Lease
     Assignment, Purchase Agreement, Assignment of Rents and Leases, Security
     Agreement or any other agreement between Lessor or any Affiliate of Lessor,
     on the one hand, and Lessee, any Guarantor, or any of their respective
     Affiliates, on the other hand, which is not cured within the cure period as
     provided therein, or

          (l) if Lessee defaults under the Tenant Leases or fails or refuses to
     enforce the terms and conditions of the Tenant Leases, or

          (m) if a payment default occurs with respect to any of Lessee's or any
     Guarantor's debt or other leases or is declared to be in material default
     by any of its lenders and such default is not cured within the applicable
     cure periods provided therefor.

If an Event of Default shall have occurred, Lessor shall have the right at its
election, then or at any time thereafter, to pursue any one or more of the
following remedies, in addition to any remedies which may be permitted by law or
by other provisions of this Lease, without notice or demand, except as
hereinafter provided:

     A. Without any notice or demand whatsoever, Lessor may take any one or more
of the actions permissible at law to insure performance by Lessee of Lessee's
covenants and obligations under this Lease. In this regard, it is agreed that if
Lessee deserts or vacates the Leased Property, Lessor may enter upon and take
possession of such Leased Property in order to protect it from deterioration and
continue to demand from Lessee the monthly rentals and other charges provided in
this Lease, without any obligation to relet; but that if Lessor does, at its
sole discretion, elect to relet the Leased Property, such action by Lessor shall
not be deemed as an acceptance of Lessee's surrender of the Leased Property
unless Lessor expressly notifies Lessee of such acceptance in writing pursuant
to subsection B of this Section 16.1., Lessee hereby acknowledging that Lessor
shall otherwise be reletting as Lessee's agent and Lessee furthermore hereby
agreeing to pay to Lessor on demand any deficiency that may arise between the
monthly rentals and other charges provided in this Lease and that are actually
collected by Lessor. It is further agreed in this regard that in the event of
any default described in this Section 16.1, Lessor shall have the right to enter
upon the Leased Property without being liable for prosecution or any claim for
damages therefor, and do whatever Lessee is obligated to do under the terms of
this Lease; and Lessee agrees to reimburse Lessor on demand for any expenses
which Lessor may incur in thus effecting compliance with Lessee's obligations
under this Lease, and Lessee further agrees that Lessor shall not be liable for
any damages resulting to the Lessee from such action.

                                       31
<PAGE>
     B. Lessor may terminate this Lease by written notice to Lessee, in which
event Lessee shall immediately surrender the Leased Property to Lessor, and if
Lessee fails to do so, Lessor may, without prejudice to any other remedy which
Lessor may have for possession or arrearages in rent (including any interest
which may have accrued pursuant to Section 3.4 of this Lease), enter upon and
take possession of the Leased Property and expel or remove Lessee and any other
person who may be occupying said premises or any part thereof without being
liable of prosecution or any claim for damages therefor. Lessee hereby waives
any statutory requirement of prior written notice for filing eviction or damage
suits for nonpayment of rent. In addition, Lessee agrees to pay to Lessor on
demand the amount of all loss and damage which Lessor may suffer by reason of
any termination effected pursuant to this subsection B, said loss and damage to
be determined by:

               (i) The worth at the time of award of the unpaid rent which had
          been earned at the time of termination;

               (ii) The worth at the time of award of the amount by which the
          unpaid rent which would have been earned after termination until the
          time of award exceeds the amount of such rental loss that the Lessee
          proves could have been reasonably avoided;

               (iii) The worth at the time of award of the amount by which the
          unpaid rent for the balance of the term after the time of award
          exceeds the amount of such rental loss that the Lessee proves could be
          reasonably avoided; and

               (iv) Any other amount necessary to compensate the Lessor for all
          the detriment proximately caused by the Lessee's failure to perform
          its obligations under this Lease or which in the ordinary course of
          things would be likely to result therefrom, including, but not limited
          to, all reasonable legal expenses and other related costs incurred by
          Lessor following an event of default, all costs incurred by Lessor in
          recovering the Leased Property and restoring the Leased Property to
          good order and condition, and/or in remodeling, renovating or
          otherwise preparing the Leased Property for reletting, and all costs
          (including, without limitation, any brokerage commissions and
          reasonable attorneys' fees) incurred by Lessor in reletting the Leased
          Premises.

     The "worth at the time of award" of the amounts referred to in paragraphs
(i) and (ii) above is computed by allowing interest at a rate equal to the
lowest rate of capitalization (highest present worth) reasonably applicable at
the time of such determination and allowed by applicable law. The worth at the
time of award of the amount referred to in paragraph (iii) above is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%).

     C. In addition to other rights and remedies Lessor may have hereunder and
at law and in equity, if an Event of Default occurs under this Lease, (i) Lessee
is deemed to have assigned to Lessor, at Lessor's sole option, all service
agreements (including, without limitation, all medical director agreements);
(ii) to the extent permitted by law, Lessee is deemed, at Lessor's sole
discretion, to have transferred and assigned to Lessor all Licenses and
agreements, including, without limitation, all Medicare and Medicaid provider
numbers, and (iii) to the extent permitted by law, if required by Lessor,
transfer to the Lessor all of the Licenses, including, without limitation, all
Medicare and Medicaid provider numbers. In the event there are legal limitations
on any of the foregoing remedies, Lessee further hereby covenants and agrees
that it will take all actions necessary to orderly transfer the operations and
occupancy of the Leased Property to the Lessor, including cooperating with
respect to the transfer to Lessor of Licenses, provider numbers and other
agreements.

     D. In addition to the above remedies, in the event of any default hereunder
by Lessee, Lessor, at its option, may have one or more of the following remedies
in addition to all other legal rights and remedies:

               (i) Lessor may serve upon Lessee notice that its Lease and the
          then unexpired term hereof shall terminate and become absolutely void
          on a date specified in such notice, which shall be the date of such
          notice or such later date as may be required by law, and the Lease,
          and well as the

                                       32
<PAGE>
          right, title, and interest of Lessee hereunder shall, except as to the
          rights and remedies of Lessor upon termination as provided herein,
          terminate and become void in the same manner and with the same force
          and effect as if the date filed in such notice were the date
          originally specified for the expiration of the Lease term; and Lessee
          shall then immediately quit and surrender to Lessor the Leased
          Property, including any and all buildings and improvements thereon,
          and Lessor may then or at any time thereafter, without judicial
          proceedings of any kind, enter into and repossess the Leased Property,
          and may remove all occupants and any property thereon without being
          liable for any action or prosecution of any kind for such entry or the
          manner thereof, or loss of or damage to any property upon the Leased
          Property. In the event of any such termination of this Lease, and in
          addition to any other rights and remedies Lessor may have, Lessor
          shall have all of the rights and remedies of a Lessor provided by
          Section 1951.2 of the California Civil Code.

               (ii) In addition, Lessor shall have all the rights and remedies
          described in Section 1951.4 of the California Civil Code (Lessor may
          continue the Lease in effect after Lessee's breach and abandonment and
          recover rent as it becomes due, if Lessee has the right to sublease or
          assign subject only to reasonable limitations).

               (iii) Lessor may immediately terminate Lessee's right of
          possession of the Leased Property, but not terminate the Lease, and
          without notice or demand enter upon the Leased Property or any part
          thereof and take absolute possession of the same, and at Lessor's sole
          option may relet the Leased Property or any part thereof for such
          terms and such rents as Lessor may reasonable elect. In the event
          Lessor shall elect to so relet, then rent received by Lessor from such
          reletting shall be applied first, to the payment of any indebtedness
          other than Rent due hereunder from Lessee to Lessor, second, to the
          payment of any cost of such reletting, including, without limitation,
          refurbishing costs and leasing commissions, and third, to the payment
          of Rent due and unpaid hereunder, and Lessee shall satisfy and pay any
          deficiency upon demand therefor from time to time. Any entry into and
          possession of the Leased Property by Lessor shall be without liability
          or responsibility to Lessee and shall not be in lieu of or in
          substitution for any other legal rights of Lessor hereunder. Lessee
          further agrees that Lessor may file suit to recover any sums due under
          the terms of this Lease and that no recovery of any portion due Lessor
          hereunder shall be any defense to any subsequent action brought for
          any amount not therefore reduced to judgment in favor of Lessor.
          Reletting of the Leased Property shall not be construed as an election
          on the part of Lessor to terminate this Lease and, notwithstanding any
          such reletting without termination, Lessor may at any time thereafter
          elect to terminate this Lease for default.

     16.2 EVENTS OF DEFAULT IN FINANCIAL COVENANTS.

          (a) The occurrence of any one or more of the following shall
     constitute a default and breach of this Section 16.2(a) and the Lessor
     shall have the rights and remedies provided for herein:

               (i) The Desert Valley Tenants shall, on a consolidated basis,
          generate a total lease coverage from EBITDAR (based on trailing twelve
          (12) months), after adding total debt of Lessee and all other Desert
          Valley Tenants, of at least one hundred seventy-five percent (175%);

               (ii) The Desert Valley Tenants' total debt shall not, on a
          consolidated basis, exceed fifty percent (50%) of the greater of (A)
          the total capitalization of the Desert Valley Tenants, or (B) market
          value of the Desert Valley Tenants based on twelve (12) months'
          trailing EBITDAR times four (4.0);

               (iii) The Desert Valley Tenants shall, on a consolidated basis,
          generate a total lease coverage from EBITDAR (based on trailing twelve
          (12) months) of at least two hundred fifty percent (250%); or

                                       33
<PAGE>
               (iv) The Desert Valley Tenants shall not, on a consolidated
          basis, experience three (3) consecutive quarters with declines in net
          revenue and generate a total lease coverage from EBITDAR (based on
          trailing twelve (12) months) of less than two hundred percent (200%).

     Upon the occurrence of any of the items set forth in Section 16.1 or in
subparagraph (a) items (i) through (iv) of this Section 16.2(a), Lessor may, at
its option, upon five (5) days' written notice to Lessee (any such notice
requiring such termination being herein referred to as the "Removal Notice"),
require Lessee to terminate the engagement of any Management Company managing
the Facility and replace such Management Company with a manager chosen by Lessor
(or, if there is no Management Company managing the facility at that time,
Lessor may require the Lessee to engage a Management Company acceptable to
Lessor and enter into a contract with such Management Company upon terms and
conditions acceptable to Lessor), provided, however, that in the event Lessor
elects to exercise the foregoing remedy, such exercise shall be subject to the
right of Lessee to purchase the Real Estate on the terms described in Article
XXXV herein, provided Lessee gives Lessor written notice of its intention to
exercise such purchase right within five (5) days following receipt of the
Removal Notice. In the event Lessee exercises its right to purchase as allowed
in this Section 16.2(a), such purchase shall be closed within the time period
and subject to the provisions set forth in Article XXXV.

          (b) The failure or breach of any of the following covenants shall
     constitute a default and breach of this Section 16.2(b) and Lessor shall
     have the rights and remedies provided for herein:

               (i) Lessee's total debt shall not exceed eighty percent (80%) of
          the greater of (A) the total capitalization of the Desert Valley
          Tenants, or (B) the Market Value of the Desert Valley Tenants;

               (ii) The Desert Valley Tenants shall not, on a consolidated
          basis, experience six (6) consecutive quarters of falling net revenue
          and generate a total lease coverage from EBITDAR (based on trailing
          twelve (12) months) of less than two hundred percent (200%); or

               (iii) Lessee shall not be in payment default on any of its
          corporate debt or other leases or be declared to be in material
          default by any of its corporate lenders, unless such default is cured
          within the cure periods provided for therein.

     Upon the occurrence of any of the items set forth in Section 16.1 or in
subparagraph (b) items (i) through (iii) of this Section 16.2(b), Lessor may, at
its option, upon delivery of the Removal Notice, require Lessee to terminate the
engagement of the Management Company managing the Facility and replace such
Management Company with manager chosen by Lessor (or, if there is no Management
Company managing the facility at that time, Lessor may require the Lessee to
engage a Management Company acceptable to Lessor and enter into a contract with
such Management Company upon terms and conditions acceptable to Lessor), and
Lessor may, at its option, proceed with all other remedies Lessor deems
necessary, including, without limitation, terminating this Lease and pursuing
all other customary remedies available at law and in equity; provided, however,
that in the event Lessor elects to require a change in the management of the
Facility, such exercise to change management shall be subject to the right of
Lessee to purchase the Real Estate on the terms described in Article XXXV
herein, provided Lessee gives Lessor written notice of its intention to exercise
such purchase right within five (5) days following receipt of the Removal
Notice. In the event Lessee exercises its right to purchase as allowed in this
Section 16.2(a), such purchase shall be closed within the time period and
subject to the provisions set forth in Article XXXV.

          (c) Notwithstanding any provision hereof, any breach of items (i)
     through (iv) of subparagraph (a) of this Section 16.2, or items (i) and
     (ii) of subparagraph (b) of this Section 16.2 shall not be deemed to be a
     default or breach permitting Lessor to exercise the remedies set forth in
     such subparagraphs if, within fifteen (15) days following the date of such
     breach, Lessee obtains and delivers to Lessor an unconditional and
     irrevocable letter of credit from a bank acceptable to Lessor (the "Letter
     of Credit") naming Lessor beneficiary thereunder, in a dollar amount which
     would result in the various

                                       34
<PAGE>
     EBITDAR coverage ratios set forth in such clauses being satisfied and upon
     terms, conditions and provisions acceptable to Lessor (including, without
     limitation, provisions allowing Lessor to assign all of its rights under
     such Letter of Credit to Lessor's lender).

     16.3 ADDITIONAL EXPENSES. It is further agreed that, in addition to
payments required pursuant to subsections A and B of Section 16.1 above, Lessee
shall compensate Lessor for (i) all administrative expenses, (ii) all expenses
incurred by Lessor in repossessing the Leased Property (including among other
expenses, any increase in insurance premiums caused by the vacancy of the Leased
Property), (iii) all expenses incurred by Lessor in reletting (including among
other expenses, repairs, remodeling, replacements, advertisements and brokerage
fees), (iv) all concessions granted to a new tenant or tenants upon reletting
(including among other concessions, renewal options), (v) Lessor's reasonable
attorneys' fees and expenses, (vi) all losses incurred by Lessor as a direct or
indirect result of Lessee's default (including among other losses any adverse
action by mortgagees), and (vii) a reasonable allowance for Lessor's
administrative efforts, salaries and overhead attributable directly or
indirectly to Lessee's default and Lessor's pursuing the rights and remedies
provided herein and under applicable law.

     16.4 INTENTIONALLY OMITTED.

     16.5 WAIVER. If this Lease is terminated pursuant to Section 16.1, Lessee
waives, to the extent permitted by applicable law, (a) any right of redemption,
re-entry or repossession, (b) any right to a trial by jury in the event of
summary proceedings to enforce the remedies set forth in this Article XVI, and
(c) the benefit of any laws now or hereafter in force exempting property from
liability for rent or for debt.

     16.6 APPLICATION OF FUNDS. Any payments otherwise payable to Lessee which
are received by Lessor under any of the provisions of this Lease during the
existence or continuance of any Event of Default shall be applied to Lessee's
obligations in the order which Lessor may reasonably determine or as may be
prescribed by the laws of the state in which the Facility is located.

     16.7 NOTICES BY LESSOR. The provisions of this Article XVI concerning
notices shall be liberally construed insofar as the contents of such notices are
concerned, and any such notice shall be sufficient if reasonably designed to
apprise Lessee of the nature and approximate extent of any default, it being
agreed that Lessee is in good or better position than Lessor to ascertain the
exact extent of any default by Lessee hereunder.

     16.8 LESSOR'S CONTRACTUAL SECURITY INTEREST. Subject to the Prior Lien of
Lessee's Primary Lender (as such terms are defined herein), to secure the
payment of all rent due and to become due hereunder and the faithful performance
of this Lease by Lessee and to secure all other indebtedness, obligations and
liabilities of Lessee to Lessor now existing or hereafter incurred, and all
Obligations (as defined in the Security Agreement), Lessee hereby gives to
Lessor an express first and prior contract lien and security interest in all
property which may be placed on the Leased Property (including trailers and all
equipment affixed therein, fixtures, equipment (including medical equipment
whether or not affixed to the Leased Property), chattels and merchandise) and
also upon all proceeds of any insurance which may accrue to Lessee by reason of
destruction of or damage to any such property and also upon all of Lessee's
interest as lessee and rights and options to purchase fixtures, equipment, the
MRI Equipment and chattels placed on the Leased Property (in case of fixtures,
equipment and chattels leased to Lessee which are placed on the Leased
Property). All exemption laws are hereby waived in favor of such lien and
security interest and in favor of Lessor's statutory landlord lien. This lien
and security interest are given in addition to any statutory landlord lien and
shall be cumulative thereto. Except as limited in favor of the Primary Lender as
set forth in this Section 16.7, Lessor shall have at all times a valid security
interest to secure payment of all rentals and other sums of money becoming due
hereunder from Lessee, and to secure payment of any damages or loss which Lessor
may suffer by reason of the breach by Lessee of any covenant, agreement or
condition contained herein, upon all inventory, merchandise, goods, wares,
equipment (including medical equipment whether or not affixed to the Leased
Property), MRI equipment, trailers, fixtures, furniture, improvements and other
tangible personal property of Lessee presently, or which may hereafter be,
situated in or about the Leased Property, and all proceeds therefrom and
accessions thereto and, except as a result of sales made in the ordinary course
of Lessee's business, such

                                       35
<PAGE>
property shall not be removed without the consent of Lessor until all arrearages
in rent as well as any and all other sums of money then due to Lessor or to
become due to Lessor hereunder shall first have been paid and discharged and all
the covenants, agreements and conditions hereof have been fully complied with
and performed by Lessee. Upon the occurrence of an Event of Default by Lessee,
Lessor may, in addition to any other remedies provided herein, enter upon the
Leased Property and take possession of any and all inventory, merchandise,
goods, wares, equipment, the MRI Equipment, trailers, fixtures, furniture,
improvements and other personal property of Lessee situated in or about the
Leased Property, without liability for trespass or conversion, and sell the same
at public or private sale, with or without having such property at the sale,
after giving Lessee reasonable notice of the time and place of any public sale
of the time after which any private sale is to be made, at which sale the Lessor
or its assigns may purchase unless otherwise prohibited by law. Unless otherwise
provided by law, and without intending to exclude any other manner of giving
Lessee reasonable notice, the requirement of reasonable notice shall be met, if
such notice is given in the manner prescribed in this Lease at least seven (7)
days before the time of sale. Any sale made pursuant to the provision of this
paragraph shall be deemed to have been a public sale conducted in commercially
reasonable manner if held in the above-described premises or where the property
is located after the time, place and method of sale and a general description of
the types of property to be sold have been advertised in a daily newspaper
published in the county in which the property is located, for five (5)
consecutive days before the date of the sale. The proceeds from any such
disposition, less any and all expenses connected with the taking of possession,
holding and selling of the property (including reasonable attorney's fees and
legal expenses), shall be applied as a credit against the indebtedness secured
by the security interest granted in this paragraph. Any surplus shall be paid to
Lessee or as otherwise required by law; the Lessee shall pay any deficiencies
forthwith. Upon request by Lessor, Lessee agrees to execute (if required by law;
provided, however, Lessor shall have the right to file a UCC-1 financing
statement (and all amendments, modifications and extensions thereto) at any time
as provided in the Security Agreement) and deliver to Lessor a financing
statement in form sufficient to perfect the security interest of Lessor in the
aforementioned property and proceeds thereof under the provision of the Uniform
Commercial Code (or corresponding state statute or statutes) in force in the
state in which the Leased Property is located, as well as any other state the
laws of which Lessor may at any time consider to be applicable.

     As used herein, the term "Primary Lien of Lessee's Primary Lender" means
any first priority lien granted by Lessee in any of Lessee's machinery,
equipment (including medical equipment whether or not affixed to the Leased
Property), furniture, furnishings, tools, movable walls or partitions,
computers, signage, trade fixtures, supplies, inventory, or any other tangible
personal property placed on the Leased Property and used or useful in Lessee's
business conducted at or on the Leased Property (the "Collateral"), which may be
given in connection with Lessee's lender (the "Primary Lender") providing
financing for Lessee to purchase such items of Collateral or in connection with
the refinancing of any such items of Collateral. In the event Lessee obtains
financing from a Primary Lender or refinances such items of Collateral, Lessee
shall use commercially reasonable efforts to obtain from its Primary Lender a
consent to a secondary lien on such Collateral in favor of Lessor, in form and
content reasonably acceptable to the Primary Lender and the Lessor. Lessee
covenants and agrees not to place or allow any other liens to be placed on the
Collateral. Lessee covenants and agrees that all indebtedness (except for the
indebtedness owed to the Primary Lender) owed by Lessee under all agreements
executed in connection with the Lessee's financing of Lessee's Personal Property
to be used in connection with the operation of the Facility shall be subordinate
to all monetary obligations under this Lease and Lessee shall not to place or
allow any other liens to be placed on the Lessee's Personal Property. At the
request of Lessor from time to time, Lessee shall execute and shall obtain from
all parties to such financing arrangements executed written confirmation of such
subordination (in form and content as is acceptable to Lessor), which shall be
delivered to Lessor within ten (10) days from Lessor's request.

                                  ARTICLE XVII

                             LESSOR'S RIGHT TO CURE

     If Lessee shall fail to make any payment, or to perform any act required to
be made or performed under this Lease and to cure the same within the relevant
time periods provided in Section 16.1, Lessor, without waiving or releasing any
obligation or Event of Default, may (but shall be under no obligation to) at any
time thereafter make

                                       36
<PAGE>
such payment or perform such act for the account and at the expense of Lessee,
and may, to the extent permitted by law, enter upon the Leased Property for such
purpose and take all such action thereon as, in Lessor's opinion, may be
necessary or appropriate therefor. No such entry shall be deemed an eviction of
Lessee. All sums so paid by Lessor and all costs and expenses (including,
without limitation, reasonable attorneys' fees and expenses, in each case, to
the extent permitted by law) so incurred, together with a late charge thereon
(to the extent permitted by law) at the Overdue Rate from the date on which such
sums or expenses are paid or incurred by Lessor, shall be paid by Lessee to
Lessor on demand. The obligations of Lessee and rights of Lessor contained in
this Article shall survive the expiration or earlier termination of this Lease.

                                  ARTICLE XVIII

                         PURCHASE OF THE LEASED PROPERTY

     In the event Lessee purchases the Leased Property from Lessor pursuant to
any of the terms of this Lease, including, without limitation Article XXXV,
Lessor shall, upon receipt from Lessee of the applicable purchase price,
together with full payment of any unpaid Rent due and payable with respect to
any period ending on or before the date of the purchase, deliver to Lessee an
appropriate special warranty deed or other instrument of conveyance conveying
the entire interest of Lessor in and to the Leased Property to Lessee in the
condition as received from Lessee, free and clear of all encumbrances other than
(a) those that Lessee has agreed hereunder to pay or discharge, (b) those
mortgage liens, if any, which Lessee has agreed in writing to accept and to take
title subject to, (c) any other Encumbrances permitted to be imposed on the
Leased Property under the provisions of Article XXXVII which are assumable at no
cost to Lessee or to which Lessee may take subject without cost to Lessee, and
(d) any matters affecting the Leased Property on or as of the Commencement Date.
The difference between the applicable purchase price and the total of the
encumbrances assigned or taken subject to shall be paid in cash to Lessor, or as
Lessor may direct, in federal or other immediately available funds except as
otherwise mutually agreed by Lessor and Lessee. The closing of any such sale
shall be contingent upon and subject to Lessee obtaining all required
governmental consents and approvals for such transfer and if such sale shall
fail to be consummated by reason of the inability of Lessee to obtain all such
approvals and consents, any options to extend the Term of this Lease which
otherwise would have expired during the period from the date when Lessee elected
or became obligated to purchase the Leased Property until Lessee's inability to
obtain the approvals and consents is confirmed shall be deemed to remain in
effect for thirty (30) days after the end of such period. All expenses of such
conveyance, including, without limitation, the cost of title examination or
standard coverage title insurance, survey, attorneys' fees incurred by Lessor in
connection with such conveyance, transfer taxes, recording fees and similar
charges shall be paid for by Lessee.

                                   ARTICLE XIX

                                  HOLDING OVER

     If Lessee shall for any reason remain in possession of the Leased Property
after the expiration of the Term or any earlier termination of the Term hereof,
such possession shall be as a tenancy at will during which time Lessee shall pay
as rental each month, one and one-half times the aggregate of (a) one-twelfth of
the aggregate Base Rent and Percentage Rent payable with respect to the last
complete Lease Year prior to the expiration of the Term; (b) all Additional
Charges accruing during the month and (c) all other sums, if any, payable by
Lessee pursuant to the provisions of this Lease with respect to the Leased
Property. During such period of tenancy, Lessee shall be obligated to perform
and observe all of the terms, covenants and conditions of this Lease, but shall
have no rights hereunder other than the right, to the extent given by law to
tenancies at will, to continue its occupancy and use of the Leased Property.
Nothing contained herein shall constitute the consent, express or implied, of
Lessor to the holding over of Lessee after the expiration or earlier termination
of this Lease.

                                       37
<PAGE>
                                   ARTICLE XX

                              INTENTIONALLY OMITTED

                                   ARTICLE XXI

                              INTENTIONALLY OMITTED

                                  ARTICLE XXII

                                  RISK OF LOSS

     During the Term of this Lease, the risk of loss or of decrease in the
enjoyment and beneficial use of the Leased Property in consequence of the damage
or destruction thereof by fire, the elements, casualties, thefts, riots, wars or
otherwise, or in consequence of foreclosures, attachments, levies or executions
(other than by Lessor and those claiming from, through or under Lessor) is
assumed by Lessee and, Lessor shall in no event be answerable or accountable
therefor nor shall any of the events mentioned in this Section entitle Lessee to
any abatement of Rent except as specifically provided in this Lease.

                                  ARTICLE XXIII

                                 INDEMNIFICATION

     NOTWITHSTANDING THE EXISTENCE OF ANY INSURANCE OR SELF INSURANCE PROVIDED
FOR IN ARTICLE XIII, AND WITHOUT REGARD TO THE POLICY LIMITS OF ANY SUCH
INSURANCE OR SELF INSURANCE, LESSEE WILL PROTECT, INDEMNIFY, SAVE HARMLESS AND
DEFEND LESSOR FROM AND AGAINST ALL LIABILITIES, OBLIGATIONS, CLAIMS, DAMAGES,
PENALTIES, CAUSES OF ACTION, COSTS AND EXPENSES (INCLUDING, WITHOUT LIMITATION,
REASONABLE ATTORNEYS' FEES AND EXPENSES), TO THE EXTENT PERMITTED BY LAW,
IMPOSED UPON OR INCURRED BY OR ASSERTED AGAINST LESSOR BY REASON OF: (A) ANY
ACCIDENT, INJURY TO OR DEATH OF PERSONS OR LOSS OF PERCENTAGE TO PROPERTY
OCCURRING ON OR ABOUT THE LEASED PROPERTY OR ADJOINING SIDEWALKS, INCLUDING
WITHOUT LIMITATION ANY CLAIMS OF MALPRACTICE, (B) ANY USE, MISUSE, NO USE,
CONDITION, MAINTENANCE OR REPAIR BY LESSEE OF THE LEASED PROPERTY, (C) ANY
IMPOSITIONS (WHICH ARE THE OBLIGATIONS OF LESSEE TO PAY PURSUANT TO THE
APPLICABLE PROVISIONS OF THIS LEASE), (D) ANY FAILURE ON THE PART OF LESSEE TO
PERFORM OR COMPLY WITH ANY OF THE TERMS OF THIS LEASE, AND (E) THE
NON-PERFORMANCE OF ANY OF THE TERMS AND PROVISIONS OF ANY AND ALL EXISTING AND
FUTURE SUBLEASES OF THE LEASED PROPERTY TO BE PERFORMED BY THE LANDLORD (LESSEE)
THEREUNDER. ANY AMOUNTS WHICH BECOME PAYABLE BY LESSEE UNDER THIS SECTION SHALL
BE PAID WITHIN FIFTEEN (15) DAYS AFTER LIABILITY THEREFOR ON THE PART OF LESSOR
IS DETERMINED BY LITIGATION OR OTHERWISE AND, IF NOT TIMELY PAID, SHALL BEAR A
LATE CHARGE (TO THE EXTENT PERMITTED BY LAW) AT THE OVERDUE RATE FROM THE DATE
OF SUCH DETERMINATION TO THE DATE OF PAYMENT. LESSEE, AT ITS EXPENSE, SHALL
CONTEST, RESIST AND DEFEND ANY SUCH CLAIM, ACTION OR PROCEEDING ASSERTED OR
INSTITUTED AGAINST LESSOR OR MAY COMPROMISE OR OTHERWISE DISPOSE OF THE SAME AS
LESSEE SEES FIT. NOTHING HEREIN SHALL BE CONSTRUED AS INDEMNIFYING LESSOR
AGAINST ITS OWN NEGLIGENT ACTS OR OMISSIONS OR WILLFUL MISCONDUCT. LESSEE'S
LIABILITY FOR A BREACH OF THE PROVISIONS OF THIS ARTICLE SHALL SURVIVE ANY
TERMINATION OF THIS LEASE.

                                  ARTICLE XXIV

                ASSIGNMENT, SUBLETTING AND SUBLEASE SUBORDINATION

     24.1 ASSIGNMENT AND SUBLETTING. Lessee shall not assign this Lease or
sublease any portion of the Leased Property without Lessor's prior written
consent. Lessor shall not unreasonably withhold its consent to any

                                       38
<PAGE>
subletting or assignment, provided that (a) in the case of a subletting, the
sublease and the sublessee shall comply with the provisions of this Article
XXIV, (b) in the case of an assignment, the assignee shall assume in writing and
agree to keep and perform all of the terms of this Lease on the part of Lessee
to be kept and performed and shall be and become jointly and severally liable
with Lessee for the performance thereof, (c) an original counterpart of each
such sublease and assignment and assumption, duly executed by Lessee and such
sublessee or assignee, as the case may be, in form and substance satisfactory to
Lessor, shall be delivered promptly to Lessor, and (d) in case of either an
assignment or subletting, Lessee shall remain primarily liable, as principal
rather than as surety, for the prompt payment of the Rent and for the
performance and observance of all of the obligations, covenants and conditions
to be performed by Lessee hereunder and under all of the other documents
executed in connection herewith. Notwithstanding anything contained herein to
the contrary, Lessor and Lessee acknowledge that there currently exists certain
leases or subleases on the Leased Property as described on EXHIBIT C attached
hereto (collectively the "Existing Subleases"). Any modifications, amendments
and restatements of the Existing Subleases must be approved by Lessor in
accordance with this Article XXIV. Notwithstanding anything contained herein to
the contrary, any proposed assignee of Lessee and any proposed sublessee or
subtenant must each have an equal or stronger credit rating than the Lessee on
the Commencement Date. Lessor's failure or refusal to approve an assignment to
an assignee or a subletting to a sublessee or subtenant without the required
credit rating shall be reasonable.

     24.2 SUBLEASE LIMITATIONS. In addition to the sublease limitations as set
forth in Section 24.1 above, anything contained in this Lease to the contrary
notwithstanding, Lessee shall not sublet the Leased Property on any basis such
that the rental to be paid by the sublessee or subtenant thereunder would be
based, in whole or in part, on either (a) the income or profits derived by the
business activities of the sublessee or subtenant, or (b) any other formula such
that any portion of the sublease rental received by Lessor would fail to qualify
as "rents from real property" within the meaning of Section 856(d) of the Code,
or any similar or successor provision thereto. Provided also, Lessee shall not
sublet any portion of the Leased Property for a term extending beyond the Fixed
Term hereof without the express consent of Lessor. In addition, all subleases
shall comply with the Healthcare Laws. Lessor and Lessee acknowledge and agree
that all subleases entered into relating to the Leased Property, whether or not
approved by Lessor, shall not, without the prior written consent of Lessor, be
deemed to be a direct lease between Lessor and any sublessee or subtenant.
Lessee agrees that all subleases submitted for Lessor approval as provided
herein must include provisions to the effect that (a) such sublease is subject
and subordinate to all of the terms and provisions of this Lease, to the rights
of Lessor hereunder, and to all financing documents relating to any Lessor
financing in connection with the Facility, (b) in the event this Lease shall
terminate or be terminated before the expiration of the sublease, the sublessee
or subtenant will, at Lessor's option, attorn to Lessor and waive any right the
sublessee or subtenant may have to terminate the sublease or to surrender
possession thereunder, as a result of the termination of this Lease, (c) at
Lessor's option, the sublease may be terminated or left in place by Lessor in
the event of a termination of this Lease, (d) the obligations and performance of
the sublessee or subtenant must be guaranteed by guarantors acceptable to
Lessor, (e) sublessee or subtenant shall from time to time upon request of
Lessee or Lessor furnish within ten (10) days from request an estoppel
certificate in form and content acceptable to Lessor or its lender relating to
the sublease, (f) in the event the sublessee or subtenant receives a written
notice from Lessor or Lessor's assignees, if any, stating that Lessee is in
default under this Lease, the sublessee or subtenant shall thereafter be
obligated to pay all rentals accruing under said sublease directly to the party
giving such notice, or as such party may direct (all rentals received from the
sublessee by Lessor or Lessor's assignees, if any, as the case may be, shall be
credited against the amounts owing by Lessee under this Lease), (g) and that
such sublease shall at all times be subject to the obligations and requirements
as set forth in this Article XXIV, and (h) sublessee or subtenant shall provide
to Lessor upon written request such officer's certificates and financial
statements as Lessor may request from time to time.

     24.3 SUBLEASE SUBORDINATION AND NON-DISTURBANCE. Within ten (10) days after
request by Lessor, Lessee shall cause the subtenants or sublessees to execute
and deliver to Lessor a subordination agreement relating to the sublease, which
subordination agreement shall be in such form and content as is acceptable to
Lessor. At the request from time to time by one or more Facility Mortgagee,
within ten (10) days from the date of request, Lessee shall cause the subtenants
or sublessees of the Leased Property to execute and deliver within such ten (10)
day

                                       39
<PAGE>
period, to such Facility Mortgagee a written agreement in a form reasonably
acceptable to such Facility Mortgagee whereby such subtenants and sublessees
subordinate the sublease and all of their rights and estate thereunder to each
such mortgage or deed of trust that encumbers the Leased Property or any part
thereof and agree with each such Facility Mortgagee that such subtenants and
sublessees will attorn to and recognize such Facility Mortgagee or the purchaser
at any foreclosure sale or any sale under a power of sale contained in any such
mortgage or deed of trust, as the case may be, as Lessor under this Lease for
the balance of the Term then remaining, subject to all of the terms and
provisions of the sublease.

                                   ARTICLE XXV

  OFFICER'S CERTIFICATES; FINANCIAL STATEMENTS; NOTICES AND OTHER CERTIFICATES

          (a) At any time and from time to time within twenty (20) days
     following written request by Lessor, Lessee will furnish to Lessor an
     Officer's Certificate certifying that this Lease is unmodified and in full
     force and effect (or that this Lease is in full force and effect as
     modified and setting forth the modifications) and the dates to which the
     Rent has been paid. Any such Officer's Certificate furnished pursuant to
     this Article may be relied upon by Lessor and any prospective purchaser of
     the Leased Property.

          (b) Lessee will furnish, or cause to be furnished, the following
     statements to Lessor, which must be in such form and detail as Lessor may
     from time to time, but not unreasonably, request:

               (i) within ninety (90) days after the end of each fiscal year of
     Lessee, a copy of the Statements of Cash Flow for the Lessee for the
     preceding fiscal year and an Officer's Certificate stating that to the best
     of the signer's knowledge and belief after making due inquiry, Lessee is
     not in default in the performance or observance of any of the terms of this
     Lease and no condition currently exists that would, but for the giving of
     any required notice or expiration of any applicable cure period, constitute
     an Event of Default, or, if Lessee shall be in default to its knowledge,
     specifying all such defaults, the nature thereof and the steps being taken
     to remedy the same, and

               (ii) within ninety (90) days after the end of each year, audited
     financial statements of Lessee, the Desert Valley Tenants and the
     operations performed in the Facility, prepared by a nationally recognized
     accounting firm or an independent certified public accounting firm
     reasonably acceptable to Lessor, which statements shall include a balance
     sheet and statement of income and expenses and changes in cash flow all in
     accordance with generally accepted accounting principles for the year then
     ended (it being agreed that Lessor shall bear the cost of any premium over
     normal charges that such accounting firm may charge in order to prepare
     such statements on an expedited basis (so long as Lessee has ordered such
     statements in a timely manner)), and

               (iii) within forty-five (45) days after the end of each quarter,
     current financial statements of Lessee, the Desert Valley Tenants and the
     operations of the Facility, certified to be true and correct by an officer
     of Lessee, and

               (iv) within thirty (30) days after the end of each month current
     operating statements of the Facility, including, but not limited to
     operating statistics, certified to be true and correct by an officer of the
     Lessee, and

               (v) within ten (10) days of receipt, any and all notices
     (regardless of form) from any and all licensing and/or certifying agencies
     that any license or certification, including, without limitation, the
     Medicare and/or Medicaid certification and/or managed care contract of the
     Facility is being

                                       40
<PAGE>
     downgraded to a substandard category, revoked, or suspended, or that action
     is pending or being considered to downgrade to a substandard category,
     revoke, or suspend such Facility's license or certification, and

               (vi) with reasonable promptness, such other information
     respecting the financial condition and affairs of Lessee and the Desert
     Valley Tenants as Lessor may reasonably request from time to time.

          (c) Upon Lessor's request, Lessee will furnish to Lessor a certificate
     in form acceptable to Lessor certifying that no event of default as defined
     herein or in any of the Other Leases, then exists and no event has occurred
     (that has not been cured) and no condition currently exists that would, but
     for the giving of any required notice or expiration of any applicable cure
     period, constitute a default.

          (d) Within two (2) business days of receipt, Lessee shall furnish to
     Lessor copies of all notices and demands from any third party payor,
     including, without limitation, Medicare and/or Medicaid, concerning
     overpayment which will or may result in a repayment or a refund in excess
     of One Million Dollars ($1,000,000). Lessee hereby agrees that in the event
     of receipt of such notices or demands Lessor shall have the right, at
     Lessor's option, to participate in the appeal of such notices and demands.

          (e) Lessee shall furnish to Lessor on a monthly basis ongoing status
     reports (in form and content acceptable to Lessor) of any governmental
     investigations of the Lessee, the Guarantors, or any of their respective
     Affiliates, or the Facility, conducted by the United States Attorney, State
     Attorney General, the Office of the Inspector General of the Department of
     Health and Human Services, or any other Governmental Entity.

          (f) Lessee shall furnish to Lessor immediately upon receipt thereof
     copies of all notices of adverse events or deficiencies as defined by
     regulations or standards of the American Osteopathic Association or the
     equivalent of the accrediting body relied upon by the Lessee in the
     operation of the Facility or any part thereof.

          (g) Lessee shall furnish to Lessor immediately upon receipt thereof
     copies of all notices that the Lessee and/or the Desert Valley Tenants are
     not in compliance with the Standards for Privacy of Individually
     Identifiable Health Information and the Transaction and Code Set Standards
     which were promulgated pursuant to the Health Insurance Portability and
     Accountability Act of 1996 ("HIPAA").

          (h) Lessor reserves the right to (A) require such other financial
     information from Lessee, and (B) require the Lessee to provide such other
     financial information from the Desert Valley Tenants, at such other times
     as it shall deem reasonably necessary. All financial statements and
     information must be in such form and detail as Lessor shall from time to
     time, but not unreasonably, request.

          Subject to the rights of Lessor as provided in Section 42.7 of this
     Lease, Lessor and Lessee agree that all financial information disclosed
     pursuant to this Article XXV shall be kept in strictest confidence and
     shall not be disclosed to any person or entity.

                                  ARTICLE XXVI

                                   INSPECTION

     Lessee shall permit Lessor and its authorized representatives to inspect
the Leased Property during usual business hours subject to any security, health,
safety or confidentiality requirements of Lessee, any governmental agency, any
Insurance Requirements relating to the Leased Property, or imposed by law or
applicable regulations.

                                       41
<PAGE>
                                  ARTICLE XXVII

                                    NO WAIVER

     No failure by Lessor or Lessee to insist upon the strict performance of any
term hereof or to exercise any right, power or remedy consequent upon a breach
thereof, and no acceptance of full or partial payment of Rent during the
continuance of any such breach, shall constitute a waiver of any such breach or
any such term. To the extent permitted by law, no waiver of any breach shall
affect or alter this Lease, which shall continue in full force and effect with
respect to any other then existing or subsequent breach.

                                 ARTICLE XXVIII

                               REMEDIES CUMULATIVE

     To the extent permitted by law, each legal, equitable or contractual right,
power and remedy of Lessor or Lessee now or hereafter provided either in this
Lease or by statute or otherwise shall be cumulative and concurrent and shall be
in addition to every other right, power and remedy and the exercise or beginning
of the exercise by Lessor or Lessee of any one or more of such rights, powers
and remedies shall not preclude the simultaneous or subsequent exercise by
Lessor or Lessee of any or all of such other rights, powers and remedies.

                                  ARTICLE XXIX

                                    SURRENDER

     No surrender to Lessor of this Lease or of the Leased Property or any part
of any thereof, or of any interest therein, shall be valid or effective unless
agreed to and accepted in writing by Lessor and no act by Lessor or any
representative or agent of Lessor, other than such a written acceptance by
Lessor, shall constitute an acceptance of any such surrender.

                                   ARTICLE XXX

                               NO MERGER OF TITLE

     There shall be no merger of this Lease or of the leasehold estate created
hereby by reason of the fact that the same person, firm, corporation or other
entity may acquire, own or hold, directly or indirectly, (a) this Lease or the
leasehold estate created hereby or any interest in this Lease or such leasehold
estate and (b) the fee estate in the Leased Property.

                                  ARTICLE XXXI

                               TRANSFERS BY LESSOR

     If Lessor or any successor owner of the Leased Property shall convey the
Leased Property in accordance with the terms hereof, other than as security for
a debt, and the grantee or transferee of the Leased Property shall expressly
assume all obligations of Lessor hereunder arising or accruing from and after
the date of such conveyance or transfer, and shall be reasonably capable of
performing the obligations of Lessor hereunder, Lessor or such successor owner,
as the case may be, shall thereupon be released from all future liabilities and
obligations of the Lessor under this Lease arising or accruing from and after
the date of such conveyance or other transfer as to the Leased Property and all
such future liabilities and obligations shall thereupon be binding upon the new
owner.

                                       42
<PAGE>
                                  ARTICLE XXXII

                                 QUIET ENJOYMENT

     So long as Lessee shall pay all Rent as the same becomes due and shall
fully comply with all of the terms of this Lease and fully perform its
obligations hereunder and under the Other Leases, Lessee shall peaceably and
quietly have, hold and enjoy the Leased Property for the Term hereof, free of
any claim or other action by Lessor or anyone claiming by, through or under
Lessor, but subject to all liens and encumbrances of record as of the date
hereof or hereafter consented to by Lessee. No failure by Lessor to comply with
the foregoing covenant shall give Lessee any right to cancel or terminate this
Lease, or to fail to pay any other sum payable under this Lease, or to fail to
perform any other obligation of Lessee hereunder. Notwithstanding the foregoing,
Lessee shall have the right by separate and independent action to pursue any
claim it may have against Lessor as a result of a breach by Lessor of the
covenant of quiet enjoyment contained in this Article.

     Notwithstanding anything contained herein to the contrary, Lessor and
Lessee acknowledge that the Existing Leases are more particularly listed on
EXHIBIT C attached hereto and made a part thereof by reference and
incorporation, copies of which Existing Leases the Lessee has received and
reviewed. Lessee agrees that it will not disturb the rights of the tenants under
the Tenant Leases and will enforce all of the obligations of the tenants under
such Tenant Leases and will pay and perform all of the obligations to be
performed under the Tenant Leases as if Lessee is the lessor or landlord
thereunder. In addition, Lessor and Lessee acknowledge that the Lessee has taken
an assignment of certain contracts relating to the operation of the facility
located on the Leased Property (the "Contracts"), which Contracts require that
certain space in the Leased Property be provided as more particularly described
in the Contracts. Lessee agrees to abide by the terms and perform the
obligations under the Contracts. Lessee hereby agrees to indemnify and hold
Lessor harmless from any liabilities and damages incurred by the Lessor as a
result of the Lessee's default under the Tenant Leases and the Contracts.

                                 ARTICLE XXXIII

                                     NOTICES

     All notices, demands, consents, approvals, requests and other
communications under this Lease shall be in writing and shall be either (a)
delivered in person, (b) sent by certified mail, return receipt requested, (c)
delivered by a recognized over-night delivery service or (d) sent by facsimile
transmission and addressed as follows:

     (a)   if to Lessee:   Desert Valley Hospital, Inc.
                           16850 Bear Valley Road
                           Victorville, California 93292
                           Attention: Mr. Lex Reddy
                           Fax: (760) 242-8220

           with a copy to: Desert Valley Hospital, Inc.
                           16850 Bear Valley Road
                           Victorville, California 93292
                           Attention: Richard Hayes, Esq.
                           Fax: (951) 346-3873

                                       43
<PAGE>
     (b)   if to Lessor:   MPT of Victorville, LLC
                           1000 Urban Center Drive
                           Suite 501
                           Birmingham, Alabama 35242
                           Attn: Michael G. Stewart, Esq.
                           Fax: (205) 969-3756

           with a copy to: Thomas O. Kolb, Esq.
                           Baker, Donelson, Bearman, Caldwell & Berkowitz
                           1600 SouthTrust Tower
                           Birmingham, Alabama 35203
                           Fax: (205) 322-8007

or to such other address as either party may hereafter designate, and shall be
effective upon receipt. A notice, demand, consent, approval, request and other
communication shall be deemed to be duly received if delivered in person or by a
recognized delivery service, when left at the address of the recipient and if
sent by facsimile, upon receipt by the sender of an acknowledgment or
transmission report generated by the machine from which the facsimile was sent
indicating that the facsimile was sent in its entirety to the recipient's
facsimile number; provided that if a notice, demand, consent, approval, request
or other communication is served by hand or is received by facsimile on a day
which is not a Business Day, or after 5:00 p.m. on any Business Day at the
addressee's location, such notice or communication shall be deemed to be duly
received by the recipient at 9:00 a.m. on the first Business Day thereafter.

                                  ARTICLE XXXIV

                                    APPRAISAL

     In the event that it becomes necessary to determine the Fair Market Value,
Fair Market Value Purchase Price or Fair Market Added Value of the Leased
Property for any purpose of this Lease, the party required or permitted to give
notice of such required determination shall include in the notice the name of a
person selected to act as an appraiser on its behalf. Lessor and Lessee agree
that any appraisal of the Leased Property shall be without regard to the
termination of this Lease or any purchase options contained herein and shall
assume the Lease is in place for a term of fifteen (15) years, and based solely
on the rents and other revenues generated and to be generated pursuant to this
Lease without any regard to Lessee's operations. Within ten (10) days after
receipt of any such notice, Lessor (or Lessee, as the case may be) shall by
notice to Lessee (or Lessor, as the case may be) appoint a second person as an
appraiser on its behalf. The appraisers thus appointed (each of whom must be a
member of the American Institute of Real Estate Appraisers or any successor
organization thereto) shall, within forty-five (45) days after the date of the
notice appointing the first (1st) appraiser, proceed to appraise the Leased
Property to determine the Fair Market Value, Fair Market Value Purchase Price or
Fair Market Added Value thereof as of the relevant date (giving effect to the
impact, if any, of inflation from the date of their decision to the relevant
date); provided, however, that if only one (1) appraiser shall have been so
appointed, or if two (2) appraisers shall have been so appointed but only one
(1) such appraiser shall have made such determination within fifty (50) days
after the making of Lessee's or Lessor's request, then the determination of such
appraiser shall be final and binding upon the parties. If two (2) appraisers
shall have been appointed and shall have made their determinations within the
respective requisite periods set forth above and if the difference between the
amounts so determined shall not exceed ten percent (10%) of the lesser of such
amounts, then the Fair Market Value, Fair Market Value Purchase Price or Fair
Market Added Value shall be an amount equal to fifty percent (50%) of the sum of
the amounts so determined. If the difference between the amounts so determined
shall exceed ten percent (10%) of the lesser of such amounts, then such two (2)
appraisers shall have twenty (20) days to appoint a third (3rd) appraiser, but
if such appraisers fail to do so, then either party may request the American
Arbitration Association or any successor organization thereto to appoint an
appraiser within twenty (20) days of such request, and both parties shall be
bound by any appointment so made within such 20-day period. If no such appraiser
shall have been appointed within such twenty (20) days or

                                       44
<PAGE>
within ninety (90) days of the original request for a determination of Fair
Market Value, Fair Market Value Purchase Price or Fair Market Added Value,
whichever is earlier, either Lessor or Lessee may apply to any court having
jurisdiction to have appointment made by such court. Any appraiser appointed, by
the American Arbitrator Association or by such court shall be instructed to
determine the Fair Market Value, Fair Market Value Purchase Price or Fair Market
Added Value within thirty (30) days after appointment of such appraiser. The
determination of the appraiser which differs most in terms of dollar amount from
the determinations of the other two (2) appraisers shall be excluded, and fifty
percent (50%) of the sum of the remaining two (2) determinations shall be final
and binding upon Lessor and Lessee as the Fair Market Value, Fair Market Value
Purchase Price or Fair Market Added Value for such interest. This provision for
determination by appraisal shall be specifically enforceable to the extent such
remedy is available under applicable law, and any determination hereunder shall
be final and binding upon the parties except as otherwise provided by applicable
law. Lessor and Lessee shall each pay the fees and expenses of the appraiser
appointed by it and each shall pay one-half of the fees and expenses of the
third appraiser and one-half of all other costs and expenses incurred in
connection with each appraisal.

                                  ARTICLE XXXV

                                 PURCHASE RIGHTS

     35.1 LESSEE'S OPTION TO PURCHASE. So long as Lessee is not in monetary or
payment default of any kind, or no event has occurred which with the giving of
notice or the passage of time or both would constitute such a default (except as
otherwise expressly provided in Section 16.2) under the terms of this Lease, the
Other Leases and the Tenant Leases, at any time from and after the second
anniversary of the Commencement Date, the Lessee shall have the option, to be
exercised by ninety (90) days' prior written notice to the Lessor, to purchase
the Leased Property at a purchase price sufficient to cause Lessor to receive,
on an unleveraged basis, a sum equal to (i) the Purchase Price of the Leased
Property, and (ii) an amount sufficient to yield to Lessor an internal rate of
return thereon that is equal to ten percent (10%) per year (such percentage to
be increased on each anniversary of the Commencement Date by two percent (2%) of
such percentage), taking into account all payments of Base Rent received by
Lessor to the closing date of such purchase (the "Option Price"). Unless
expressly otherwise provided in this Section 35.1, in the event the Lessee
exercises such option to purchase the Leased Property, (i) the terms set forth
in Article XVIII shall apply, (ii) Lessee shall continue paying Rent as required
under this Lease until the purchase is closed, and (iii) the sale/purchase must
be closed within ninety (90) days after the date of the written notice from
Lessee to Lessor of Lessee's intent to purchase, unless a different closing date
is agreed upon in writing by Lessor and Lessee. Notwithstanding any other
provision of this Lease to the contrary, if Lessor terminates this Lease as a
result of a non-monetary or non-payment default prior to said second anniversary
of the Commencement Date, the Lessee shall also have the right to exercise the
foregoing option on the terms described in this Section 35.1 provided Lessee
exercises such option within five (5) business days following the date of such
termination.

     35.2 LESSOR'S OPTION TO PURCHASE LESSEE'S PERSONAL PROPERTY. Effective on
not less than ninety (90) days' prior written notice given at any time within
one hundred eighty (180) days prior to the expiration of the Term of this Lease,
but not later than ninety (90) days prior to such expiration, or such shorter
notice as shall be appropriate if this Lease is terminated prior to its
expiration date, Lessor shall have the option to purchase all (but not less than
all) of Lessee's Personal Property, if any, at the expiration or termination of
this Lease, for an amount equal to the net sound insurable value thereof
(current replacement cost less accumulated depreciation on the books of Lessee
pertaining thereto), subject to, and with appropriate price adjustments for, all
equipment leases, conditional sale contracts, security interests and other
encumbrances to which Lessee's Personal Property is subject.

                                  ARTICLE XXXVI

                              INTENTIONALLY OMITTED

                                       45
<PAGE>
                                 ARTICLE XXXVII

                        FINANCING OF THE LEASED PROPERTY

     37.1 FINANCING BY LESSOR. Lessor agrees that, if it grants or creates any
mortgage, lien, encumbrance or other title retention agreement ("Encumbrances")
upon the Leased Property, Lessor will use reasonable efforts to obtain an
agreement from the holder of each such Encumbrance whereby such holder agrees
(a) to give Lessee the same notice, if any, given to Lessor of any default or
acceleration of any obligation underlying any such Encumbrance or any sale in
foreclosure of such Encumbrance, (b) to permit Lessee, after twenty (20) days
prior written notice, to cure any such default on Lessor's behalf within any
applicable cure period, in which event Lessor agrees to reimburse Lessee for any
and all reasonable out-of-pocket costs and expenses incurred to effect any such
cure (including reasonable attorneys' fees), (c) to permit Lessee to appear with
its representatives and to bid at any foreclosure sale with respect to any such
Encumbrance, (d) that, if subordination by Lessee is requested by the holder of
each such Encumbrance, to enter into an agreement with Lessee containing the
provisions described in Article XXXVIII of this Lease, and (e) Lessor further
agrees that no such Encumbrance shall in any way prohibit, derogate from, or
interfere with Lessee's right and privilege to collaterally assign its leasehold
and contract rights hereunder provided such collateral assignment and rights
granted to the assignee thereunder shall be subordinate to the rights of the
holder of an Encumbrance as provided in Article XXXVIII hereof.

                                 ARTICLE XXXVIII

                        SUBORDINATION AND NON-DISTURBANCE

     At the request from time to time by one or more Facility Mortgagees, within
ten (10) days from the date of request, Lessee shall execute and deliver within
such ten (10) day period, to such Facility Mortgagee a written agreement in a
form reasonably acceptable to such Facility Mortgagee whereby Lessee
subordinates this Lease and all of its rights and estate hereunder (except for
Lessee's purchase options as expressly provided in this Lease) to each Facility
Mortgage that encumbers the Leased Property or any part thereof and agrees with
each such Facility Mortgagee that Lessee will attorn to and recognize such
Facility Mortgagee or the purchaser at any foreclosure sale or any sale under a
power of sale contained in any such Facility Mortgage, as the case may be, as
Lessor under this Lease for the balance of the Term then remaining, subject to
all of the terms and provisions of this Lease; provided, however, that each such
Facility Mortgagee simultaneously executes and delivers a written agreement
consenting to this Lease and agreeing that, notwithstanding any such other
mortgage, deed of trust, right, title or interest, or any default, expiration,
termination, foreclosure, sale, entry or other act or omission under, pursuant
to or affecting any of the foregoing, Lessee shall not be disturbed in peaceful
enjoyment of the Leased Property nor shall this Lease be terminated or canceled
at any time, except in the event Lessee is in default under this Lease.

                                  ARTICLE XXXIX

                                    LICENSES

     Lessee shall maintain at all times during the Term hereof and any holdover
period all federal, state and local governmental licenses, approvals,
qualifications, variances, certificates of need, franchises, accreditations,
certificates, certifications, consents, permits and other authorizations and all
contracts, including contracts with governmental or quasi-governmental entities
which may be necessary or useful in the operation of the Facility (collectively,
the "Licenses'), and shall qualify and comply with all applicable laws as they
may from time to time exist, including those applicable to certification and
participation as a provider under Medicare and Medicaid legislation and
regulations.

                                       46
<PAGE>
     Lessee shall not, without the prior written consent of Lessor, which may be
granted or withheld in its sole discretion, effect or attempt to effect any
change in the license category or status of the Facility or any part thereof.
Under no circumstances shall Lessee have the right to transfer any of the
Licenses to any location other than the Facility or to any other person or
entity (except to Lessor as contemplated herein), whether before, during or
after the Term hereof. Following the termination of this Lease, Lessee shall
retain no rights whatsoever to the Licenses, and Lessee will not move or attempt
to move the Licenses to any other location. To the extent that Lessee has or
will extend any right, title, or claim of right whatsoever in and to the
Licenses or the right to operate the Facility, all such right, title, or claim
of right shall automatically revert to the Lessor or to Lessor's designee upon
termination of this Lease, to the extent permitted by law. Upon any termination
of this Lease or any breach or default by Lessee hereunder (which breach or
default is not cured within any applicable grace period and which results in
Lessor terminating this Lease), to the extent permitted by law, Lessor shall
have the sole, complete, unilateral, absolute and unfettered right to cause all
Licenses to be reissued in Lessor's name or in the name of Lessor's designee
upon application therefor to the issuing authority, and to further have the
right to have any and all provider and/or third party payor agreements as a
provider in the Medicare and/or Medicaid and other federal healthcare programs
issued in Lessor's name or in the name of Lessor's designee.

     Upon the termination of this Lease and for reasonable periods of time
immediately before and after such termination, Lessee shall use its best
efforts, without additional consideration to Lessee, to facilitate an orderly
transfer of the operation and occupancy of the Facility to Lessor or any new
lessee or operator selected by Lessor, it being understood and agreed that such
cooperation shall include, without limitation, (a) Lessee's transfer and
assignment, if and to the extent permitted by law, to Lessor, Lessor's nominee
or Lessor's new lessee or operator of any and all Licenses, (b) Lessee's use of
best efforts to maintain, to the maximum extent allowed by applicable law, the
effectiveness of any and all such Licenses until such time as any new Licenses
necessary for any new Lessee or operator to operate the Facility have been
issued, and (c) the taking of such other actions as are required by applicable
law or as are reasonably requested by Lessor. Upon any termination of this Lease
or any breach or default by Lessee hereunder (which breach or default is not
cured within any applicable grace period and which results in Lessor terminating
this Lease), to the extent permitted by law, Lessor shall have the sole,
complete, unilateral, absolute and unfettered right to cause any and all
Licenses to be reissued in Lessor's name or in the name of Lessor's designee
upon application therefor to the appropriate authority, if required, and to
further have the right, to the extent permitted by law, to have any and all
Medicare and Medicaid and any other provider and/or third party payor agreements
issued in Lessor's name or in the name of Lessor's designee. The provisions of
this Section are in addition to the other provisions of this Lease.

     It is an integral condition of this Lease that Lessee covenants and agrees
not to sell, move, modify, cancel, surrender, transfer, assign, sell, relocate,
pledge, secure, convey or in any other manner encumber any License or any
governmental or regulatory approval, consent or authorization of any kind to
operate the Facility. To the extent permitted by law, Lessee hereby grants to
Lessor a landlord's lien on the Licenses.

     Lessee shall immediately (within two (2) business days) notify Lessor in
writing of any notice, action or other proceeding or inquiry of any governmental
agency, bureau or other authority whether federal, state, or local, of any kind,
nature or description, which could adversely affect any material License or
Medicare and/or Medicaid-certification status, or accreditation status of the
Facility, or the ability of Lessee to maintain its status as the licensed and
accredited operator of the Facility or which alleges noncompliance with any law.
Lessee shall immediately (within two (2) business days) upon Lessee's receipt,
furnish Lessor with a copy of any and all such notices and Lessor shall have the
right, but not the obligation, to attend and/or participate, in Lessor's sole
and absolute discretion, in any such actions or proceedings. Lessee shall act
diligently to correct any deficiency or deal effectively with any "adverse
action" or other proceedings, inquiry or other governmental action, so as to
maintain the licensure and Medicare and/or Medicaid-certification status stated
herein in good standing at all times. Lessee shall not agree to any settlement
or other action with respect to such proceedings or inquiry which affects the
use of the Leased Property or any portion thereof as provided herein without the
prior written consent of Lessor, which consent shall not be unreasonably
withheld or delayed. Lessee agrees to sign, acknowledge, provide and deliver to
Lessor (and if Lessee fails to do so upon request of Lessor, Lessee hereby
irrevocably appoints Lessor, as agent of Lessee for such express purposes) any
and all documents, instruments or other writings which are or may become

                                       47
<PAGE>
necessary, proper and/or advisable to cause any and all hospital licenses
required for the Primary Intended Use, Department of Human Services of the State
of California ("DHS") provider agreements, and/or state or federal Title XVIII
and/or Title XIX provider agreements to be obtained (either in total or
individually) in the name of Lessor or the name of Lessor's designee in the
event that Lessor reasonably determines in good faith that (irrespective of any
claim, dispute or other contention or challenge of Lessee) there is any breach,
default or other lapse in any representation, warranty, covenant or other
delegation of duty to Lessee (beyond any applicable grace or cure period) and
the issuing government agency has threatened or asserted that such license or
provider agreement will terminate or has lapsed or that Lessee's license or
certification or accreditation status is in jeopardy. This power is coupled with
the ownership interest of Lessor in and to the Facility and all incidental
rights attendant to any and all of the foregoing rights.

                                   ARTICLE XL

                         COMPLIANCE WITH HEALTHCARE LAWS

     Lessee hereby covenants, warrants and represents to Lessor that as of the
Commencement Date and throughout the Term: (i) Lessee shall be, and shall
continue to be validly licensed, Medicare and/or Medicaid certified, and, if
required, accredited to operate the Facility in accordance with the applicable
rules and regulations of the State of California, federal governmental
authorities and accrediting bodies, including, but not limited to, the United
States Department of Health and Human Services, DHSS, DHS and CMS; and/or (ii)
Lessee shall be, and shall continue to be, certified by and the holder of valid
provider agreements with Medicare/Medicaid issued by DHHS, DHS and/or CMS and
shall remain so certified and shall remain such a holder in connection with its
operation of the Primary Intended Use on the Leased Property as a licensed and
Medicare and/or Medicaid certified acute care hospital facility; (iii) Lessee
shall be, and shall continue to be in substantial compliance with and shall
remain in substantial compliance with all state and federal laws, rules,
regulations and procedures with regard to the operation of the Facility,
including, without limitation, substantial compliance under HIPAA; (iv) Lessee
shall operate the Facility in a manner consistent with high quality acute care
services and sound reimbursement principles under the Medicare and/or Medicaid
programs and as required under state and federal law; and (v) Lessee shall not
abandon, terminate, vacate or fail to renew any license, certification,
accreditation, certificate, approval, permit, waiver, provider agreement or any
other authorization which is required for the lawful and proper operation of the
Facility or in any way commit any act which will or may cause any such license,
certification, accreditation, certificate, approval, permit, waiver, provider
agreement or other authorization to be revoked by any federal, state or local
governmental authority or accrediting body having jurisdiction thereof.

                                   ARTICLE XLI

           LESSOR'S RIGHT TO SELL AND LESSEE'S RIGHT OF FIRST REFUSAL

     41.1 LESSOR'S RIGHT TO SELL. Lessee understands that Lessor may sell its
interest in the Leased Property in whole or in part at any time, subject to this
Lease and the rights of Lessee as expressly provided in this Lease. The Lessee
agrees that any purchaser may exercise any and all rights of Lessor as fully as
if such had made the purchase of the Leased Property directly from the Lessee as
set out in the Purchase Agreement. Lessor may divulge to any such purchaser all
information, reports, financial statements, certificates and documents obtained
by it from Lessee.

     41.2 LESSEE'S RIGHT OF FIRST REFUSAL. If, during the Term, Lessor shall
receive from Health Care Property Investors, Inc., a Maryland corporation (or
any affiliate thereof) (the "Transferee") a written, bona fide offer to purchase
the Leased Property, and Lessor is willing to accept such offer, so long as
Lessee is not in monetary or payment default of any kind, or no event has
occurred which with the giving of notice or the passage of

                                       48
<PAGE>
time or both would constitute such a default under the terms of this Lease, the
Other Leases and the Tenant Leases, Lessor must first present such offer to
Lessee and allow Lessee the right to purchase the Leased Property upon the same
price, terms and conditions as set forth in such offer except as otherwise
expressly set forth herein; provided, however, in the event Transferee makes a
bona fide offer to purchase any time after the second anniversary of the
Commencement Date, in lieu of such right of first refusal, Lessee may exercise
its option to purchase as provided in Section 35.1. Lessor shall make such offer
by delivery of written notice to Lessee (the "Notice") which shall contain the
amount to be paid for the Leased Property (including the amount and type of any
consideration other than cash), the terms of payment, the date on which the
Leased Property is proposed to be sold and all other terms and conditions of
such transfer. For a period of ten (10) days following the date of the Notice
(the "Option Period"), Lessee shall have the right, option and privilege (but
not the obligation) to purchase the Leased Property. If Lessee determines to
purchase the Leased Property, it shall deliver written notice of that fact to
Lessor within the Option Period and such delivery shall create an agreement
between Lessor and Lessee pursuant to which Lessor shall sell and Lessee shall
purchase the Leased Property from Lessor (i) at the price and upon the terms and
conditions stated in the Notice, and (ii) in accordance with the terms,
conditions and provisions set forth in Article XVIII, and the sale/purchase must
be closed on the earlier of (A) the closing date as stated in the Notice, or (B)
ninety (90) days (the "Closing Period") from the date of the written notice from
Lessee to Lessor of Lessee's intent to purchase. If Lessee does not exercise its
option to purchase the Leased Property within the Option Period, or if Lessee
does not close the purchase within the Closing Period, then Lessee's option and
the right of first refusal shall be deemed not to have been exercised and Lessor
may thereafter sell the Property to the Transferee or any other party on any
terms as Lessor deems acceptable in its sole discretion, subject to this Lease
and the rights of Lessee as expressly provided in this Lease.

                                  ARTICLE XLII

                                  MISCELLANEOUS

     42.1 GENERAL. Anything contained in this Lease to the contrary
notwithstanding, all claims against, and liabilities of, Lessee or Lessor
arising prior to any date of expiration or termination of this Lease shall
survive such expiration or termination. If any term or provision of this Lease
or any application thereof shall be invalid or unenforceable, the remainder of
this Lease and any other application of such term or provision shall not be
affected thereby. If any late charges provided for in any provision of this
Lease are based upon a rate in excess of the maximum rate permitted by
applicable law, the parties agree that such charges shall be fixed at the
maximum permissible rate. Neither this Lease nor any provision hereof may be
changed, waived, discharged or terminated except by an instrument in writing and
in recordable form signed by Lessor and Lessee. All the terms and provisions of
this Lease shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. The headings in this Lease are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof. This Lease shall be governed by and construed in accordance with
the laws of California but not including its conflict of laws rules; provided,
however, the parties hereto agree that the venue for all actions in connection
with this Lease and all matters relating to the Leased Property shall be
Jefferson County, Alabama.

     42.2 LESSOR'S EXPENSES. In addition to other provisions herein, Lessee
agrees and shall pay and/or reimburse Lessor's reasonable costs and expenses,
including legal fees, incurred or resulting from and relating to (a) requests by
Lessee for approval or consent under this Lease Agreement; (b) requests by
Lessor for approval or consent under this Lease and all other documents executed
between Lessor and Lessee in connection herewith, (c) any circumstances or
developments which give rise to Lessor's right of consent or approval, (d)
circumstances resulting from any action or inaction by Lessee contrary to the
lease provisions, and (e) a request for changes including, but not limited to,
(i) the permitted use of the Leased Property, (ii) alterations and improvements
to the Leased Improvements, (iii) subletting or assignment, and (iv) any other
changes in the terms, conditions or provisions of this Lease. Such expenses and
fees shall be paid by Lessee within thirty (30) days of the submission of a
statement for the same or such amount(s) shall become Additional Charges and
subject to the Overdue Rate after the 30 days.

                                       49
<PAGE>
     42.3 ASSETS PURCHASED PURSUANT TO PURCHASE OPTIONS. In connection with any
purchase options granted to Lessee hereunder, in the event Lessee exercises such
purchase options, the term "Leased Property" shall also include any "Assets" as
such term is defined in the Purchase Agreement.

     42.4 ENTIRE AGREEMENT; MODIFICATIONS. This Lease embodies and constitutes
the entire understanding between the parties with respect to the transactions
contemplated herein, and all prior to contemporaneous agreements,
understandings, representations and statements (oral or written) are merged into
this Lease. Neither this Lease nor any provision hereof may be modified or
amended except by an instrument in writing signed by Lessor and Lessee.

     42.5 LEASE GUARANTY. At the time of the execution and delivery of this
Lease by Lessee to Lessor, Lessee shall simultaneously herewith deliver to the
Lessor a Lease Guaranty in form and content satisfactory to Lessor, whereby the
Guarantors jointly and severally, absolutely and irrevocably, guarantee the full
payment and performance of all of Lessee's obligations under this Lease and any
other obligations of Lessee, Guarantors and any Affiliate of Lessee and any
Affiliate of Guarantors to Lessor. Such Lease Guaranty shall specifically
provide that the Lease Guaranty and the obligations of the Guarantors thereunder
shall remain in full force and effect during the Term, regardless of whether
this Lease has been assigned or any portion of the Leased Property has been
subleased.

     42.6 FUTURE FINANCING. Lessee hereby agrees that if at any time during the
Term Lessee purchases or contemplates the purchase of a facility, or property to
be used, for the operation of a business for the Primary Intended Use, Lessee
shall notify Lessor in writing ("Lessee's Notice") of such purchase or
contemplated purchase, and Lessor shall have the first opportunity to provide
financing for such purchase, expansion or renovation upon terms mutually
agreeable to Lessor and Lessee. Lessor shall notify Lessee in writing on or
before the expiration of twenty (20) business days after receipt of Lessee's
Notice whether Lessor is interested in providing such financing. If Lessor
agrees to provide the financing, the terms and conditions of such financing will
be contingent upon, among other things, performance benchmarks acceptable to
Lessor and the Lessor's satisfaction and approval of other due diligence
requirements.

     42.7 CHANGE IN OWNERSHIP/CONTROL. So long as this Lease remains in effect,
Lessee shall not permit more than fifty percent (50%) of its ownership to be
held by persons other than individuals who are licensed physicians or entities
comprised of individuals who are licensed physicians actively practicing full
time clinical medicine in Victorville, California, some of whom have active
staff privileges at the Facility, and the aggregate ownership of the current
shareholders shall not be reduced below the aggregate ownership of the current
shareholders as of the date hereof.

     42.8 LESSOR SECURITIES OFFERING AND FILINGS. Notwithstanding anything
contained herein to the contrary, Lessee agrees to cooperate with Lessor and MPT
in connection with any securities offerings and filings and in connection
therewith, Lessee shall furnish Lessor with such financial and other information
as Lessor shall request and Lessor and MPT shall have the right of access to the
Facility at reasonable business hours and upon advance notice and all
documentation and information relating to the Facility and have the right to
disclose any information regarding this Lease, the Commitment Letter, the
Lessee, the Guarantors, the Leased Property, the Facility, and such other
additional information which Lessor and/or MPT may reasonably deem necessary.
Lessor agrees to pay reasonable copying charges associated with copying any of
the documentation obtained by Lessor pursuant to this Section 42.7.

     42.9 NON-RECOURSE AS TO LESSOR. Anything contained herein to the contrary
notwithstanding, any claim based on or in respect of any liability of Lessor
under this Lease shall be enforced only against the Leased Property and not
against any other assets, properties or funds of (i) Lessor, (ii) any director,
officer, general partner, shareholder, limited partner, beneficiary, employee or
agent of Lessor or any general partner of Lessor or any of its general partners
(or any legal representative, heir, estate, successor or assign of any thereof),
(iii) any predecessor or successor partnership or corporation (or other entity)
of Lessor or any of its general partners, shareholders, officers, directors,
employees or agents, either directly or through Lessor or its general partners,
shareholders,

                                       50
<PAGE>
officers, directors, employees or agents or any predecessor or successor
partnership or corporation (or other entity), or (iv) any person affiliated with
any of the foregoing, or any director, officer, employee or agent of any
thereof.

     42.10 MANAGEMENT AGREEMENTS. Lessee shall not engage any Management Company
or allow any tenants, subtenants or sublessees of the Facility to engage any
Management Company, without Lessor's prior written consent, which consent shall
not be unreasonably withheld; provided, however, Lessor's rights relating to any
Management Company as set forth in Section 16.2 hereof shall be at Lessor's sole
and absolute discretion. Lessee shall, if required by Lessor, assign all of
Lessee's rights under the Management Agreements to Lessor and Lessor shall be
entitled to assign same to Lessor's lender. At the request of the Lessor from
time to time, Lessee shall execute and deliver (and require the tenants,
subtenants or sublessees to execute and deliver, if applicable) an assignment
and/or subordination agreement relating to the Management Agreements, which
assignment and/or subordination agreement shall be in such form and content as
reasonably acceptable to Lessor and/or any lender providing financing to Lessor,
and shall be delivered to Lessor within ten (10) days after Lessor's request.
Lessee hereby agrees that all payments and fees payable under the Management
Agreements are and shall be subordinate to the payment of the obligations under
this Lease and all other documents executed in connection with this Lease and
the Purchase Agreement. Lessee agrees that all Management Agreements entered
into in connection with the Leased Property shall expressly contain provisions
acceptable to Lessor which (i) require an assignment of the Management
Agreements to Lessor upon request by Lessor, (ii) confirm and warrant that all
sums due and payable under the Management Agreements are subordinate to this
Lease, (iii) grant Lessor the right to terminate the Management Agreement
(individually or collectively, if more than one (1)) upon a default hereunder or
upon a default under such applicable Management Agreement, (iv) require the
Management Company to execute and deliver to Lessor within ten (10) days from
Lessor's request an estoppel certificate, assignment and/or subordination
agreement as required by Lessor and/or Lessor's lender providing financing to
Lessor, in such form and content as is acceptable to Lessor and/or its lender,
and (v) all fees due and payable under any Management Agreements, shall be
subordinate to all monetary obligations under this Lease. At the request of the
Lessor from time to time, Lessee shall execute and obtain from all parties
subject to such Management Agreements executed written confirmation of such
assignment or subordination, which shall be delivered to Lessor within ten (10)
days from Lessor's request.

     42.11 COUNTERPARTS. This Lease may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument.

                                  ARTICLE XLIII

                               MEMORANDUM OF LEASE

     Lessor and Lessee shall, promptly upon the request of either, enter into a
short form memorandum of this Lease, in form suitable for recording under the
laws of the state in which the Leased Property is located in which reference to
this Lease, and all options contained herein, shall be made.

                    [ SIGNATURES APPEAR ON FOLLOWING PAGES ]

                                       51
<PAGE>
     IN WITNESS WHEREOF, the parties have caused this Lease to be executed and
their respective corporate seals to be hereunto affixed and attested by their
respective officers thereunto duly authorized.

                                       LESSOR:

                                       MPT OF VICTORVILLE, LLC

                                       BY: MPT OPERATING PARTNERSHIP, L.P.
                                       ITS: Sole Member

                                       By: /s/ Edward K. Aldag, Jr.
                                           -------------------------------------
                                       Name: Edward K. Aldag, Jr.
                                       Its: President and
                                            Chief Executive Officer

                                       52
<PAGE>
                                       LESSEE:

                                       DESERT VALLEY HOSPITAL, INC.

                                       By: /s/ Lex Reddy
                                           -------------------------------------
                                       Name: Lex Reddy
                                       Its: President

                                       53
<PAGE>
STATE OF ALABAMA
JEFFERSON COUNTY

     On this ________ day of February, 2005, before me, the undersigned
authority, a Notary Public of said State, duly commissioned and sworn,
personally appeared EDWARD K. ALDAG, JR., personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person who executed the
within instrument as President and Chief Executive Officer of MPT Operating
Partnership, L.P., the Sole Member of MPT OF VICTORVILLE, LLC, a Delaware
limited liability company, and acknowledged to me that such limited partnership,
as the Sole Member of such limited liability company executed the same.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day
and year in this certificate first above written.

                                       ---------------------------------------
                                       NOTARY PUBLIC
                                       Printed Name:
                                                     ---------------------------
                                       My Commission Expires:
                                                              ------------------

[AFFIX NOTARY SEAL]

                                       54
<PAGE>
STATE OF CALIFORNIA
SAN BERNARDINO COUNTY

     On this ________ day of February, 2005, before me, the undersigned
authority, a Notary Public of said State, duly commissioned and sworn,
personally appeared LEX REDDY, personally known to me (or proved to me on the
basis of satisfactory evidence) to be the person who executed the within
instrument as President of DESERT VALLEY HOSPITAL, INC., a California
corporation, and acknowledged to me that such corporation executed the same.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day
and year in this certificate first above written.

                                       ---------------------------------------
                                       NOTARY PUBLIC
                                       Printed Name:
                                                     ---------------------------
                                       My Commission Expires:
                                                              ------------------

[AFFIX NOTARY SEAL]

                                       55
<PAGE>
                                    EXHIBIT A

HOSPITAL PARCEL:

Parcel A:

Parcels 1 and 4 of Parcel Map 13742 located in the City of Victorville, County
of San Bernardino, State of California, as per Plat recorded in Book 161 of
Parcel Maps, Pages 23 and 24, Records of said County.

Parcel B:

A portion of Parcel 1 of Parcel Map No. 9412, in the City of Victorville, County
of San Bernardino, State of California, as per Plat recorded in Book 137 of
Parcel Maps, Pages 71 and 72, records of said County, lying northerly of the
following described line:

Beginning at the Northwest corner of said Parcel 1 of Parcel Map No. 9412;
thence along the westerly line of the last mentioned Parcel 1, South 01 degrees
38' 56" West, 28.62 feet to the true point of beginning; thence North 88 degrees
19' 20" East, 605.21 feet to the Easterly line of said last mentioned Parcel 1,
pursuant to that certain Lot Merger No. LM-3-92 and Lot Line Adjustment No.
LA-5-92, dated February 17, 1992, and recorded March 13, 1992, Instrument Nos.
92-108430, 92-108431 and 92-108432, Official Records.

The aforesaid parcels being more fully described as follows:

Beginning at the Northwesterly corner of Parcel 1 of said Parcel Map 13742;
thence North 88 degrees 19' 20" East along the Northerly line of said Parcels 1
and 4, a distance of 604.83 feet to the Northeasterly corner of Parcel 4; thence
South 01 degrees 43' 00" East a distance of 322.00 feet to said lot line
adjustment line; thence South 88 degrees 19' 20" West along said line a distance
of 605.21 feet to the Easterly right of way line of Second Avenue; thence North
01 degrees 38' 56" West along said Easterly right of way line a distance of
322.00 feet to the point of beginning.

MEDICAL OFFICE BUILDING PARCEL:

Parcel C:

Parcel No. 2 of Parcel Map No. 14282, located in the City of Victorville, County
of San Bernardino, State of California, as per Plat recorded in Book 176 of
Parcel Maps, Pages 38 and 39, records of said County.

The aforesaid Parcel being more fully described as follows:

                                       56
<PAGE>
Beginning at the Southeasterly corner of Parcel 2, said point being on the
Northerly right of way line of Bear Valley Road as shown on said Parcel Map;
thence South 88 degrees 19' 20" West along said Northerly right of way a
distance of 459.80 feet; thence North 01 degrees 40' 40" West a distance of
299.00 feet; thence South 88 degrees 19' 20" West a distance of 145.67 feet to
the Easterly right of way line of Second Avenue; thence North 01 degrees 38' 56"
West, along said easterly right of way line, a distance of 46.00 feet to the
northwesterly corner of Parcel 2; thence North 88 degrees 19' 20" East, along
the northerly line of Parcel 2, a distance of 605.21 feet to the Northeasterly
corner; thence South 01 degrees 43' 00" East a distance of 345.00 feet to the
point of beginning.

TOGETHER WITH ALL RIGHT, TITLE AND INTEREST IN AND TO THE FOLLOWING EASEMENT:

Non-exclusive easements for emergency access, drainage, utility, landscape and
sewer purposes, appurtenant to the Hospital Parcel, created by that certain
"Reciprocal Easement Agreement" dated November 5, 1992, and recorded on December
11, 1992, as Instrument No. 92-510810, Official Records of the County of San
Bernardino, State of California, more particularly set forth in Paragraph 1 of
said document.

                                       57
<PAGE>
                                    EXHIBIT B

1. All taxes, supplemental taxes, dues and general and special taxes and
assessments.

2. Easement shown or dedicated on Parcel Map 9412 for private sewer and drainage
easement and incidental purposes. (Affects Parcel B)

3. The City Engineer's Statement of Improvements required, is delineated on
Parcel Map No. 9412 as follows: (Affects Parcels B and C)

     The following requirements for the construction of off-site and on-site
improvements along the street frontages of each Parcel created by this
Subdivision are a condition to the approval of this Parcel Map in accordance
with provisions of Section 66411.1 of the Subdivision Map Act. The improvements
shall be installed at such time as a permit or other grant of approval for
development of any or all Parcels created by this Subdivision is issued by the
City of Victorville.

     A. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall be responsible for any cost incurred in the
relocation of existing utility facilities where such facilities conflict with
the improvements required when said improvements are installed.

     B. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall be required to provide underground electrical
and telephone to each Parcel created by this Subdivision.

     C. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall provide sewer service to each Parcel created
by this Subdivision in accordance with the requirements of the Sanitary Division
of the City, and the City Engineer.

     D. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install street lights along the street
frontages in accordance with the requirements of the Master Street Lighting Plan
of the City of Victorville, the Southern California Edison Company and as
recommended by the City Engineer.

     E. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall provide water service to each parcel created
by this Subdivision in accordance with the requirements of the Victor Valley
County Water District and the City Engineer.

                                       58
<PAGE>
     F. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install fire hydrants and on-site fire
protection to serve each Parcel created by this Subdivision in accordance with
the requirements of the Victorville Fire Department and the City Engineer.

     G. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install curbs, gutters, sidewalks, drive
approaches, asphalt pavement and drainage facilities along the street frontages
of this Subdivision in accordance with standard specifications of public
improvements of the City of Victorville.

     H. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall provide gas service to each Parcel created by
this Subdivision.

     I. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install physically handicapped ramps at all
intersections.

     J. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall be required to provide underground
communication cable to each Parcel created by this Subdivision.

4. An easement shown or dedicated on the Parcel Map 13742 for private access,
drainage, utility and landscape easement and incidental purposes. (Affects
Parcel A)

5. A Notice of Merger recorded March 13, 1992, Instrument No. 92-108430,
Official Records, whereby the property described as follows was merged into one
Parcel of land. (Affects Parcels A and C)

Description: Parcels 1 and 4 of Parcel Map No. 13742, as recorded July 23, 1991,
in Book 161 of Maps, Pages 23 and 24, inclusive, in the City of Victorville,
County of San Bernardino, State of California, per records of said County.

Notice is hereby given to all persons that, pursuant to Section 61.0219(Q) of
the County of San Bernardino and 66451.19 of the Government Code of the State of
California, the above described real property in the County of San Bernardino,
State of California, is merged into one Parcel or Unit of land that any
purchasers, his heirs, assigns or successors in the interest of said property,
subsequent to (the recording of this Notice of Merger with the county recorder
shall be deemed to be notified of said Notice of Merger). Reference is hereby
made to the record of said document for further and other particulars.

6. The terms and provisions contained in the document entitled "Reciprocal
Easement Agreement" recorded December 11, 1992, as Instrument No. 92-510809 as
amended and restated by document entitled "Amended and Restated Reciprocal
Easement Agreement" dated June 29,

                                       59
<PAGE>
1993, as recorded July 26, 1993, as Instrument No. 93-316424 of Official
Records. (Affects Parcels A, B and C)

7. Terms, covenants, conditions, restrictions and easements, as contained in
that certain Reciprocal Easement Agreement by and among Desert Valley Hospital,
Inc., a California corporation, Prem N. Reddy, M.D. and Joseph Chirco and Harry
Lifschultz and Gloria Lifschultz, recorded December 11, 1992, Instrument No.
92-510810, Official Records. Also, an easement over said land for the
hereinafter specific purpose and incidental purpose, as set forth in the
document above mentioned. Said easement is for emergency access, drainage,
utility, landscape and sewer purposes and is described therein. Reference is
hereby made to the record of said document for further and other particulars.
(Affects Parcels A, B and C)

8. Covenants, conditions and restrictions in the document recorded December 11,
1992 as Instrument No. 92-510811 of Official Records, which provide that a
violation thereof shall not defeat or render invalid the lien of any first
mortgage or deed of trust made in good faith and for value, but deleting any
covenant, condition or restriction indicating a preference, limitation or
discrimination based on race, color, religion, sex, handicap, familial status,
national origin, sexual orientation, martial status, ancestry, source of income
or disability, to the extent such covenants, conditions or restrictions violate
Title 42, Section 3604(c), of the United States Code or Section 12955 of the
California Government Code. Lawful restrictions under state and federal law on
the age of occupants in senior housing or housing for older persons shall not be
construed as restrictions based on familial status. Declarants: D.V.H.-Desert
Valley Hospital, Inc., a California corporation; Reddy-Prem IV. Reddy, M.D.;
Chirco-Joseph Chirco; Lifschultz-Harry and Gloria Lifschultz. (Affects Parcels
A, B and C)

9. An easement for underground conduits and incidental purposes, recorded July
14, 1993 as Instrument No. 93-299465 of Official Records, in favor of Contel of
California. (Affects Parcel B)

10. An easement for pipeline, utilities, access and incidental purposes,
recorded July 21, 1993 as Instrument No. 93-311083 of Official Records, in favor
of Victor Valley County Water District. (Affects Parcel B)

11. An easement for private access, utility, landscape and incidental purposes,
recorded October 27, 1993 as Instrument No. 93-459525 of Official Records, in
favor of John S. Lawson, Trustee under the Lawson Living Trust, dated May 12,
1989. (Affects Parcel B)

12. An easement for above ground or underground conduits or both and incidental
purposes, recorded November 4, 1993 as Instrument No. 93-476813 of Official
Records, in favor of Southern California Edison Company. (Affects Parcels A and
B)

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13. An easement for private access, utility, landscape and incidental purposes
in the document recorded November 5, 1993 as Instrument No. 93-479231 of
Official Records. (Affects Parcels A, B and C)

14. A document entitled "Landlord's/Mortgagee's Waiver" recorded May 27, 1994 as
Instrument No. 94-243883 of Official Records. (Affects Parcels A, B and C)

15. A financing statement recorded September 19, 1994 as Instrument No.
94-387330 of Official Records. Debtor: Desert Valley Hospital, Inc.; Secured
Party: Medical Equipment Finance Company. According to the public records, the
security interest of the secured party was assigned to Bankers Trust Company of
California, N.A., as Custodian by document recorded June 7, 1995 as Instrument
No. 95-198334 of Official Records. A continuation statement was recorded March
26, 1999 as Instrument No. 99-126299 of Official Records. A continuation
statement was recorded August 23, 1999 as Instrument No. 99-357609 of Official
Records. (Affects Parcels A, B and C)

16. The City Engineer's statement of improvements required, is delineated on
Parcel Map No. 14282 as follows: (Affects Parcels A and C)

The following requirements for the construction of off-site and on-site
improvements along the street frontages of each Parcel created by this
Subdivision are a condition to the approval of this Parcel Map in accordance
with provisions of Section 66411.1 of the Subdivision Map Act. The improvements
shall be installed at such time as a permit or other grant of approval for
development of any or all Parcels created by this Subdivision is issued by the
City of Victorville.

     A. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall be responsible for any cost incurred in the
relocation of existing utility facilities where such facilities conflict with
the improvements required when said improvements are installed and for the
undergrounding of all existing overhead utilities.

     B. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall be required to provide underground electrical
and telephone to each Parcel created by this Subdivision.

     C. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall provide sewer service to each Parcel created
by this Subdivision in accordance with the requirements of the Sanitary Division
of the City, and the City Engineer.

     D. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install street lights along the street
frontages in accordance with the requirements of the Master Street Lighting Plan
of the City of Victorville. The Southern California Edison Company and as
recommended by the City Engineer.

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     E. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall provide water service to each Parcel created
by this Subdivision in accordance with the requirements of the Victor Valley
County Water District and the City Engineer.

     F. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install fire hydrants and on-site fire
protection to serve each Parcel created by this Subdivision in accordance with
the requirements of the Victorville Fire Department and the City Engineer.

     G. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install curbs, gutters, sidewalks, drive
approaches, asphalt pavement and drainage facilities along the street frontages
of this Subdivision in accordance with standard specifications of public
improvements of the City of Victorville.

     H. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall provide gas service to each Parcel created by
this Subdivision.

     I. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall install physically handicapped ramps at all
intersections.

     J. The subdivider or any successor in interest of any of the Parcels to be
created by this Subdivision shall be required to provide underground
communication cable to each Parcel created by this Subdivision.

17. An easement for ingress, egress, public utilities and incidental purposes,
recorded September 20, 1994, as Instrument No. 94-388799 of Official Records, in
favor of Desert Valley M.O.B., L.P. (Affects Parcel C)

18. A financing statement recorded September 21, 1994 as Instrument No.
94-390050 of Official Records. Debtor: Desert Valley Hospital, Inc.; Secured
Party: Medical Equipment Finance Company. According to the public records, the
security interest of the secured party was assigned to U.S. Bankers Trust
Company by document recorded August 4, 2000 as Instrument No. 00-282687 of
Official Records. A continuation statement was recorded March 26, 1999 as
Instrument No. 99-126300 of Official Records. (Affects Parcels A, B and C)

19. A document entitled "Landlord's/Mortgagee's Waiver" recorded September 21,
1994 as Instrument No. 94-390051 of Official Records. (Affects Parcels A, B and
C)

20. A financing statement recorded September 21, 1994 as Instrument No.
94-390506 of Official Records. Debtor: Desert Valley Hospital, Inc.; Secured
Party: Medical Equipment Finance Company. According to the public records, the
security interest of the secured party was assigned to The First National Bank
of Chicago, as Agent by document recorded May 17, 1995 as Instrument No.
95-173503 of Official Records. According to the public records, the

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security interest of the secured party was assigned to The First National Bank
of Chicago as Agent by document recorded October 8, 1996 as Instrument No.
96-372490 of Official Records. According to the public records, the security
interest of the secured party was assigned to U.S. Bank Trust N.A. as Custodian
or Trustee by document recorded June 25, 1999 as Instrument No. 99-270994 of
Official Records. A continuation statement was recorded July 21, 1999 as
Instrument No. 99-303575 of Official Records. (Affects Parcels A, B and C)

21. A document entitled "Landlord's/Mortgagee's Waiver" recorded October 14,
1994 as Instrument No. 94-421817 of Official Records. (Affects Parcels A, B and
C)

22. A financing statement recorded October 27, 1994 as Instrument No. 94-438030
of Official Records. Debtor: Desert Valley Hospital, Inc.; Secured Party:
Medical Equipment Finance Company. According to the public records, the security
interest of the secured party was assigned to The First National Bank of
Chicago, as Agent by document recorded May 17, 1995 as Instrument No. 95-173501
of Official Records. According to the public records, the security interest of
the secured party was assigned to U.S. Bank Trust N.A. as Custodian or Trustee
by document recorded June 25, 1999 as Instrument No. 99-270993 of Official
Records. A continuation statement was recorded August 23, 1999 as Instrument No.
19990357609 of Official Records. (Affects Parcels A, B and C)

23. A financing statement recorded November 21, 1994 as Instrument No. 94-465696
of Official Records. Debtor: Desert Valley Hospital, Inc.; Secured Party:
Medical Equipment Finance Company. According to the public records, the security
interest of the secured party was assigned to Bankers Trust Company, as Trustee
by document recorded December 12, 1995 as Instrument No. 95-425470 of Official
Records. A continuation statement was recorded September 22, 1999 as Instrument
No. 19990399066 of Official Records. According to the public records, the
security interest of the secured party was assigned to U.S. Bank Trust N.A. as
Custodian or Trustee by document recorded December 7, 1999 as Instrument No.
19990501959 of Official Records. (Affects Parcels A, B and C)

24. The effect of a map purporting to show the land and other property, filed in
Book 94, Page 92 of Record of Surveys.

25. The effect of a map purporting to show the land and other property, filed in
Book 176, Page 38 and 39 of Parcel Maps.

26. The effect of a map purporting to show the land and other property, filed in
Book 173, Page 63 to 65 of Parcel Maps.

27 The terms and provisions contained in the document entitled "Amended and
Restated Reciprocal Easement Agreement" recorded July 26, 1993 as Instrument No.
93-316424 of Official Records.

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28. Covenants, conditions, restrictions and easements in the document recorded
July 26, 1993, as Instrument No. 93-316425 of Official Records, which provide
that a violation thereof shall not defeat or render invalid the lien of any
first mortgage or deed of trust made in good faith and for value, but deleting
any covenant, condition or restriction indicating a preference, limitation or
discrimination based on race, color, religion, sex, handicap, familial status,
national origin, sexual orientation, marital status, ancestry, source of income
or disability, to the extent such covenants, conditions or restrictions violate
Title 42, Section 3604(c), of the United States Codes or Section 12955 of the
California Government Code. Lawful restrictions under state and federal law on
the age of occupants in senior housing or housing for older persons shall not be
construed as restrictions based on familial status. (Affects Parcel C)

29. Abutter's rights of ingress and egress to or from Bear Valley Road have been
dedicated or relinquished on the filed Map. (Affects Parcel C)

30. A financing statement recorded September 6, 1994 as instrument No. 94-390507
of Official Records. Debtor: Desert Valley Hospital Inc.; Secured Party: Medical
Equipment Finance Company. According to the public records, the security
interest of the secured party was assigned to Bankers Trust Company, as Trustee
by document recorded May 17, 1995 as Instrument No. 95-173499 of Official
Records.

31. A partial release of a financing statement recorded August 11, 1995 as
instrument No. 95-276953 of Official Records. Debtor: Desert Valley Hospital
Inc.; Secured Party: Bankers Trust Co.

32. A financing statement recorded November 14, 1994 as instrument No. 94-457501
of Official Records. Debtor: Desert Valley Hospital Inc.; Secured Party: Medical
Equipment Finance Company.

33. The fact that the land lies within the boundaries of the City of Victorville
Redevelopment Project Area, as disclosed by various documents of record.

34. Water rights, claims or title to water, whether or not shown by the public
records.

35. Rights of parties in possession.

36. Any facts, rights, interests or claims which would be disclosed by a current
ALTA/ACSM survey.

37. Any facts, rights, interests or claims which are not shown by the public
records but which could be ascertained by an inspection of said land or by
making inquiry of persons in possession thereof.

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                                    EXHIBIT C

1. Standard Multi-Tenant Office Lease-Gross dated January 1, 2001, between
Desert Valley Hospital, Inc., as Lessor, and Desert Valley Medical Group, Inc.,
as Lessee, as amended by that certain First Amendment to Lease effective October
1, 2004, and that certain Second Amendment to Lease dated February ____, 2005.

2. Lease dated March 4, 1997, between Desert Valley Hospital, Inc., as Lessor,
and PrimeMed Pharmacy Services, Inc. D/B/A PrimeMed, as Lessee (which lease is
executed by PrimeCare International, Inc., a Delaware corporation), as assigned
to Network Pharmaceuticals, Inc. by that certain assignment of lease entered
into effective on and as of the 25th day of March, 2001, as amended by that
certain First Amendment to Lease dated February ____, 2005.

                                       65

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