Document:

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                                                                   EXHIBIT 10.50

                           PURCHASE AND SALE AGREEMENT

                                  BY AND AMONG

                       MPT OPERATING PARTNERSHIP, L.P. AND

                               MPT OF REDDING, LLC

                    (COLLECTIVELY, THE "PURCHASER PARTIES");

                                       AND

                         VIBRA HEALTHCARE, LLC ("VIBRA")

                                       AND

         NORTHERN CALIFORNIA REHABILITATION HOSPITAL, LLC ("VIBRA SUB")

                      (COLLECTIVELY, THE "SELLER PARTIES ")

                            DATED AS OF JUNE 30, 2005

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                                Table of Contents

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ARTICLE I  DEFINED TERMS.........................................................................................      2
        Section 1.1.  Certain Defined Terms......................................................................      2
        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

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...............................................................................     11
        Section 4.2.  Authorization and Enforceability...........................................................     11
        Section 4.3.  Absence of Conflicts.......................................................................     11
        Section 4.4.  Consents and Approvals.....................................................................     12
        Section 4.5.  Financial Statements.......................................................................     12
        Section 4.6.  No Undisclosed Liabilities.................................................................     12
        Section 4.7.  Accounts Receivable........................................................................     12
        Section 4.8.  Absence of Changes.........................................................................     13
        Section 4.9.  Licenses...................................................................................     14
        Section 4.10.  Accreditation; Medicare and Medicaid; Third Party Payors..................................     14
        Section 4.11.  HIPAA Compliance..........................................................................     15
        Section 4.12.  Healthcare Regulatory Matters.............................................................     15
        Section 4.13.  Taxes.....................................................................................     16
        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............................................................     18
        Section 4.17.  Compliance with Environmental Laws........................................................     18
        Section 4.18.  Insurance.................................................................................     19
        Section 4.19.  Litigation................................................................................     19
        Section 4.20.  Contracts, Obligations and Commitments....................................................     20
        Section 4.21.  Compliance with Law.......................................................................     20
        Section 4.22.  Hill-Burton Obligations...................................................................     20
        Section 4.23.  Brokers...................................................................................     21
        Section 4.24.  Records...................................................................................     21
        Section 4.25.  Existing Leases...........................................................................     21
        Section 4.26.  Representations Complete..................................................................     21
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ARTICLE V  REPRESENTATIONS AND WARRANTIES BY THE PURCHASER PARTIES...............................................     21
        Section 5.1.  Organization...............................................................................     21
        Section 5.2.  Authorization; Enforcement, Absence of Conflicts...........................................     22
        Section 5.3.  Binding Agreement..........................................................................     22
        Section 5.4.  Litigation.................................................................................     22
        Section 5.5.  Brokers....................................................................................     22
        Section 5.6.  Compliance with Law........................................................................     22

ARTICLE VI  TITLE AND SURVEY.....................................................................................     23
        Section 6.1.  Survey.....................................................................................     23
        Section 6.2.  Title Insurance............................................................................     23

ARTICLE VII  PRE-CLOSING COVENANTS...............................................................................     24
        Section 7.1.  No Shop....................................................................................     24
        Section 7.2.  Access; Confidentiality....................................................................     24
        Section 7.3.  Schedule Updates...........................................................................     25
        Section 7.4.  Conduct of Business by the Seller Parties Pending the Closing..............................     25
        Section 7.5.  Cooperation................................................................................     27
        Section 7.6.  Regulatory and other Authorizations, Notices and Consents..................................     27
        Section 7.7.  Mutual Covenants...........................................................................     28
        Section 7.8.  Public Announcements.......................................................................     28

ARTICLE VIII  CLOSING CONDITIONS.................................................................................     28
        Section 8.1.  Conditions to the Obligations of the Seller Parties........................................     28
        Section 8.2.  Conditions to the Obligations of the Purchaser Parties.....................................     28

ARTICLE IX  CLOSING..............................................................................................     29
        Section 9.1.  Closing Date...............................................................................     29
        Section 9.2.  The Seller Parties' Closing Date Deliverables..............................................     29
        Section 9.3.  Purchaser Parties' Closing Date Deliverables...............................................     31

ARTICLE X  TERMINATION...........................................................................................     32
        Section 10.1.  Termination...............................................................................     32
        Section 10.2.  Notice and Effect.........................................................................     32

ARTICLE XI  CERTAIN POST-CLOSING COVENANTS.......................................................................     32
        Section 11.1.  Post-Closing Access to Information........................................................     32
        Section 11.2.  Licensure, LTAC Conversion................................................................     33
        Section 11.3.  Ocadian Purchase Agreement Indemnification................................................     33

ARTICLE XII  INDEMNIFICATION.....................................................................................     33
        Section 12.1.  The Seller Parties' Agreement to Indemnify................................................     33
        Section 12.2.  The Purchaser Parties' Agreement to Indemnify.............................................     34
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        Section 12.3.  Notification and Defense of Claims........................................................     35
        Section 12.4.  Investigations............................................................................     36
        Section 12.5.  Treatment of Indemnification Payments.....................................................     36
        Section 12.6.  Exclusive Remedy..........................................................................     36

ARTICLE XIII  DISPUTE RESOLUTION.................................................................................     37
        Section 13.1.  GOVERNING LAW, JURISDICTION AND VENUE.....................................................     37

ARTICLE XIV  MISCELLANEOUS.......................................................................................     37
        Section 14.1.  Assignment................................................................................     37
        Section 14.2.  Notice....................................................................................     37
        Section 14.3.  Calculation of Time Period................................................................     39
        Section 14.4.  Captions..................................................................................     39
        Section 14.5.  Entire Agreement; Modification............................................................     39
        Section 14.6.  Schedules and Exhibits....................................................................     39
        Section 14.7.  Further Assurances........................................................................     39
        Section 14.8.  Counterparts..............................................................................     39
        Section 14.9.  Expenses..................................................................................     40
        Section 14.10.  Syndication..............................................................................     40
        Section 14.11.  Securities Offering and Filings..........................................................     40
        Section 14.12.  Binding Effect...........................................................................     40
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                           PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made and entered into as
of June 30, 2005 by and among MPT OPERATING PARTNERSHIP, L.P., a Delaware
limited partnership ("MPT"), and MPT OF REDDING, LLC, a Delaware limited
liability company (the "Acquisition Sub") (MPT and the Acquisition Sub being
herein referred to, collectively, as the "Purchaser Parties"); and VIBRA
HEALTHCARE, LLC, a Delaware limited liability company ("Vibra"), and NORTHERN
CALIFORNIA REHABILITATION HOSPITAL, LLC, a Delaware limited liability company
(the "Vibra Sub") (Vibra and the Vibra Sub being herein referred to,
collectively, as the "Seller Parties").

                              W I T N E S S E T H:

WHEREAS, Vibra is a party (and has assigned certain of its rights and
obligations thereunder to Vibra Sub) to that certain Asset Purchase Agreement
dated June 15, 2005 between Ocadian Care Centers, LLC ("Ocadian") and Vibra (the
"Ocadian Purchase Agreement") pursuant to which Ocadian has agreed to sell and
assign to Vibra, and Vibra has agreed to purchase and assume from Ocadian, the
Northern California Rehabilitation Hospital located in Redding California (the
"Hospital"), including all of the buildings, structures and improvements related
to the Hospital and owned by Ocadian (the "Owned Real Property"), as well as
Ocadian's leasehold interest in the real property on which the Owned Property is
situated, as more particularly described in the Ocadian Purchase Agreement;

WHEREAS, Ocadian leases the real property on which the Owned Real Property is
situated (the "Leased Real Property") (the Owned Real Property and the Leased
Real Property being hereinafter referred to, collectively, as the "Real
Property") pursuant to the terms and conditions of that certain Ground Lease
Agreement dated November 14, 1997 by and between National Medical Specialty
Hospital of Redding, Inc. and Guardian Postacute Services, Inc., the
predecessor-in-name of Ocadian (the "Ground Lease");

WHEREAS, subject to the terms and conditions hereinafter set forth, Seller
Parties desires to sell and assign to the Acquisition Sub, and the Acquisition
Sub desires to purchase and assume from Seller Parties, the Owned Real Property,
the Leased Real Property and certain other assets associated or used in
connection with the Hospital, all on the terms and conditions set forth in this
Agreement; and

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

WHEREAS, until its change in ownership application is approved by the California
Department of Health Services ("DHS"), Vibra Sub intends to sublease the Real
Property and other assets back to Ocadian and to operate the same for Ocadian
pursuant to licenses and provider numbers pursuant to terms and conditions of
the Management Agreement (as hereinafter defined).

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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.

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

"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.

"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 engagement in and pursuit
and conduct of any business venture or activity related thereto.

"Business Day" means 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.

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

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

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"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.

"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.

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

"Environmental Claim" means any Claim, action, cause of action, investigation or
notice (written or oral) by any Governmental Entity or other 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 the Seller Parties or Ocadian, 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.

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

"Existing Leases" means those certain six (6) lease agreements in effect as of
the date hereof (other than the Lease) between Affiliates of MPT and Affiliates
of Vibra.

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

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

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

"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.

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"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.

"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 Leased Real Property, 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.

"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, currently or formerly
exercising similar authority with respect to such Person) (a Person's "Knowledge
Group"), including, but not limited to, in the case of the Seller Parties, Brad
E. Hollinger and/or Clint Fegan, 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.

"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.

"Leased Real Property" shall have the meaning set forth in the recitals to this
Agreement.

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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.

"Management Agreement" means that certain Interim Management Agreement dated as
of the closing date by and between the Vibra Sub and Ocadian.

"Material Adverse Effect" means, with respect to any Person, 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, prospects or condition (financial or otherwise) of, or the ability to
timely satisfy the obligations or liabilities (whether absolute or contingent)
of, such Person, (ii) such Person's business or assets, or (iii) the ability of
such Person to perform its obligations under, and/or consummate the transactions
contemplated by, this Agreement within the time periods specified herein.

"Medicaid" 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.

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

"Ocadian Claim" shall have the meaning set forth in Section 11.3 hereof.

"Ocadian Purchase Agreement" shall have the meaning set forth in Section 11.3
hereof.

"Owned Real Property" shall have the meaning set forth in the recitals to this
Agreement.

"Permitted Exceptions" shall have the meaning set forth in the Ocadian Purchase
Agreement.

"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.

"Public Taking" shall means any condemnation, requisition or other taking by any
Governmental Entity.

"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.

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"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).

"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 the recitals to this
Agreement.

"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 the Seller Parties 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.

"Service Provider" means any Person who has rendered or is rendering services to
or on behalf of Vibra or any of its Subsidiaries.

"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 Vibra, those certain subsidiaries of Vibra
listed and described on Schedule 4.1 hereto and 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

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MPT in its sole discretion, which shall be prepared in accordance with the
provisions set forth in Section 6.1 of this Agreement.

"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.

"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 First American Title Company.

"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 the Seller Parties now
hold or under which the Seller Parties are 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

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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, the Seller Parties, 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 the Seller Parties, free and
clear of all Liens, other than Permitted Exceptions, the following assets of the
Seller Parties (collectively, the "Assets"):

(a) all of the Seller Parties' rights under and interest in the Leased Real
Property and the Ground Lease;

(b) all of the Seller Parties' right, title and interest in the Owned Real
Property;

(c) to the extent assignable, all of Seller Parties' rights in all intangible
property relating exclusively to the Real Property, including, but limited to,
zoning rights, 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' right, 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 (including,
without limitation, all of Seller Parties' rights to indemnification and claims
for breach or default under the Ocadian Purchase Agreement) 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 the Seller
Parties 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 or the Hospital prior to
Closing, any liability or obligation arising out of or related to any breach,
default, tort or similar act committed by either Seller Party or for any failure
of either Seller Party to perform any covenant or obligation for or during any
period prior to Closing, and any liability arising out of the ownership and
operation of the Assets and the Hospital by Ocadian or any other Person prior to
Closing (collectively, the "Excluded Liabilities").

                                  ARTICLE III
                                 PURCHASE PRICE

SECTION 3.1. PURCHASE PRICE. Subject to obtaining the Appraisal in accordance
with Section 8.2(m) hereof and subject to adjustment as provided herein, the
purchase price for the Assets shall be Twenty Million Seven Hundred and Fifty
Thousand and No/100 Dollars ($20,750,000.00) (the "Purchase Price"). Subject to
the terms and conditions hereof, at Closing, the Acquisition Sub shall pay the
Purchase Price, less (i) the sum of Two Million and No/100 Dollars
($2,000,000.00) which will be paid to the Seller Parties only if and when the
Purchaser Parties are satisfied in their sole discretion that the Hospital's
existing skilled nursing facility beds have been or will be converted to
long-term acute care beds and (ii) Seven Hundred Fifty Thousand and No/100
Dollars ($750,000.00) which shall be paid as provided in Section 9.4 of the
Lease. Such portion of the Purchase Price payable at Closing shall be paid via
transfer of immediately available federal funds to an account specified in
writing by Vibra not less than three (3) Business Days prior to the Closing
Date. In the event that Purchaser Parties do not become satisfied that the
conversion described above has or will occur within eighteen (18) months from
the date hereof, then said Two Million Dollars ($2,000,000.00) described in
clause (i) above shall be forfeited and the Purchase Price adjusted accordingly.

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 Vibra Sub 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, the Seller Parties hereby

                                       10
<PAGE>

jointly and severally represent, warrant and covenant 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 limited liability company duly
organized, validly existing and in good standing under the laws of the state of
Delaware and is duly registered in California. The Vibra Sub is, and has at all
times since its organization been, a Special Purpose Entity. Schedule 4.1 sets
forth the ownership of Vibra, Senior Real Estate Holdings, LLC, Vibra
Management, LLC, all of Vibra's Subsidiaries and the Vibra Sub and, except as
set forth therein, no other party has any equity interest in Vibra, any of its
Subsidiaries or the Vibra Sub, or any option, warrant or other right to acquire
same.

SECTION 4.2. AUTHORIZATION AND ENFORCEABILITY. Each Seller Party has the
requisite 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 the Ocadian Purchase Agreement, 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 limited liability company
actions required to be taken by each Seller Party (including, without
limitation, all necessary actions by the manager and/or members of such Seller
Party) to authorize the execution, delivery and performance of the Ocadian
Purchase Agreement, this Agreement, as well as all documents, agreements and
instruments executed by such Seller Party which are necessary to give effect to
the Ocadian Purchase Agreement and 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 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 either Seller Party
is necessary to authorize the execution, delivery and performance of the Ocadian
Purchase Agreement, this Agreement, the Seller Party Instruments and all
transactions contemplated hereby and thereby. This Agreement, the Ocadian
Purchase Agreement, the Seller Party Instruments and all agreements to which
either Seller Party will become a party hereunder, including the Lease, are and
will constitute the valid and legally binding obligations of such Seller
Parties, and are and will be enforceable against such Seller Parties 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 (or by the Ocadian Purchase Agreement), will not, with or
without the giving of notice and/or the passage of time: (i) violate or conflict
with any provision of either Seller Parties' 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,

                                       11
<PAGE>

agreement or other instrument to which such Seller Party is a party or by which
such Seller Party or any of its 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 either Seller Party in connection with the execution, delivery
and performance of the Ocadian Purchase Agreement, this Agreement or the Seller
Instruments by the Seller Parties or the consummation of the transactions
contemplated hereby or thereby.

SECTION 4.5. FINANCIAL STATEMENTS. Schedule 4.5 sets forth (i) the audited
balance sheets of Vibra and its Subsidiaries for the fiscal year ended December
31, 2004, (ii) the unaudited balance sheet of Vibra and its Subsidiaries as of
March 31, 2005 (the "Balance Sheet Date") (the balance sheets described in
subsections (i) and (ii) being hereinafter referred to, collectively, as the
"Balance Sheets"), (iii) the audited statement of income and cash flows of Vibra
and its Subsidiaries for the fiscal year ended December 31, 2004, (iv) the
unaudited income statement and cash flows of Vibra and its Subsidiaries for the
three (3) months ended March 31, 2005 (the financial statements described in
this sentence, being hereinafter 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 Vibra and its Subsidiaries and fairly present the financial
condition and results of operations, cash flows and partners' or members' equity
or capital of Vibra and its Subsidiaries 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. NO UNDISCLOSED LIABILITIES. Except as set forth on Schedule 4.6,
neither Vibra nor any of its Subsidiaries or the Vibra Sub, has any material
liability or obligation (other than obligations to close the transactions
contemplated by the Ocadian Purchase Agreement and this Agreement), 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 consistent with the past practice, 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 neither Seller Party has Knowledge of any
fact, condition or circumstance which could form the basis of any such liability
or obligation.

SECTION 4.7. ACCOUNTS RECEIVABLE. The accounts receivable of Vibra and its
Subsidiaries include only accounts receivable arising from bona fide
transactions in the conduct of the ordinary course of business, 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 4.7, all such receivables are free of all security interests and
encumbrances created by Vibra or any of its Subsidiaries. Except as set

                                       12
<PAGE>

forth on Schedule 4.7, no defense, counterclaim, offset or adjustment exists as
to any such account receivable.

SECTION 4.8. ABSENCE OF CHANGES. Except as set forth on Schedule 4.8, since the
Balance Sheet Date, Vibra and its Subsidiaries have, as applicable:

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

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

(c) preserved their legal existences and retained their respective business
organizations intact;

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

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

(f) paid all compensation and other obligations to their respective 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 its assets;

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

(j) not suffered any material damage, destruction or loss (whether or not
covered by insurance) affecting their respective 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 material 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) except for the Ocadian Purchase Agreement, 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 their respective 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;

                                       13
<PAGE>

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

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

(r) not experienced any material defections in their respective medical staffs;
or

(s) not agreed or offered, whether in writing or otherwise, to take action
described in Sections 4.8(a) through 4.8(r) above.

SECTION 4.9. LICENSES. Vibra and its Subsidiaries have all material licenses,
permits, certificates of need and other authorizations from Governmental
Entities (the "Permits") necessary or proper in order to enable them to own and
operate their facilities and conduct their respective businesses. Without
limiting the generality of the foregoing, and except as set forth on Schedule
4.9, Vibra Sub shall have all necessary Permits to operate the Hospital and
conduct the Business following Closing. Except as set forth on Schedule 4.9,
Vibra and each of its Subsidiaries, including the Vibra Sub, previously have
substantially complied and are currently complying with its obligations under
each of the Permits in all material respects 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 Vibra or any of its
Subsidiaries and Vibra has no Knowledge of the proposed or threatened issuance
of any such notice or of any grounds or basis therefor. The Hospital is
currently licensed as a general acute-care hospital with 38 general acute-care
beds, 24 of which are qualified to provide rehabilitation services, and 50
skilled-nursing beds, and will remain so licensed through the Closing Date in
compliance with and subject only to the usual and customary laws and government
regulations pertaining to the operation of an acute-care hospital in the State
of California. The Hospital does not operate any emergency department, as more
specifically defined or intended under Title 22 of the California Code of
Regulations Section 70411 (basic emergency medical services), Section 70451
(comprehensive emergency medical service), or Section 70649 (standby emergency
medical service), and does not hold itself out to the public as a provider of
"emergency" or "urgent" care.

SECTION 4.10. ACCREDITATION; MEDICARE AND MEDICAID; THIRD PARTY PAYORS. Except
as set forth on Schedule 4.10 attached hereto, all operating Subsidiaries of
Vibra participate without restriction under Title XVIII of the Social Security
Act ("Medicare") the applicable state equivalent ("Medicaid"), and the
TRICARE/CHAMPUS programs (collectively, the "Government Programs"). Except as
set forth on Schedule 4.10, all operating Subsidiaries of Vibra are in
substantial compliance with the conditions of participation for the Government
Programs, have 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. 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 Vibra or any
of its Subsidiaries. Vibra has previously delivered to the Purchaser Parties
true, correct and complete copies of the most recent Medicare and Medicaid
certification survey reports for its operating Subsidiaries, including any
statements of deficiencies and plans of correction, and the corrective action
plans related thereto. Vibra 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

                                       14
<PAGE>

as set forth on Schedule 4.10, neither Vibra or any of its Subsidiaries, nor any
of their respective officers, directors, Equity Constituents or, to Vibra's
Knowledge, any of their employees or Service Providers (i) has been excluded,
suspended or debarred from, or otherwise adjudicated, deemed or determined
ineligible for, participation in any Government Program, including Medicare or
Medicaid, (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 (iv) no Medicare funds
will be used to make any payment for any items or services furnished by any such
excluded individual. Vibra or its applicable operating Subsidiaries have timely
filed or caused to be timely filed 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,
Vibra and its Subsidiaries are in compliance with filing requirements with
respect to cost reports, including appropriate allocation of expenses associated
with any management or consulting services, and such reports do not claim and
neither Vibra nor any of its Subsidiaries have 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. Except as disclosed on Schedule 4.10, neither Vibra nor any
Subsidiary has received any written notice of any dispute with any Governmental
Entity, including any fiscal intermediary or carrier, federal, state or local
governmental body or entity, with respect to any Government Program cost reports
or claims filed on or before the date of this Agreement.

SECTION 4.11. HIPAA COMPLIANCE. Vibra and its Subsidiaries are in substantial
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").

SECTION 4.12. HEALTHCARE REGULATORY MATTERS.

(a) Neither Vibra, nor, to Seller Parties' Knowledge, Ocadian, any physician,
Service Provider or other Person rendering services (including directly or
indirectly referring patients) to or at, or in any way affiliated with any of
the facilities or operations of Vibra or its Subsidiaries or affiliated with the
Hospital (i) is a party to, or has received notice of, the 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 the Hospital, Vibra, any of its Subsidiaries or any of their
respective businesses (and no grounds for any such proceeding, investigation or
action exist); and (ii) is not in substantial compliance with all applicable
Healthcare Fraud Laws.

                                       15
<PAGE>

(b) Except as set forth on Schedule 4.12, neither Vibra or any Subsidiary, nor,
to Seller Parties' Knowledge, Ocadian, 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 or any facilities or
operations conducted by Vibra or its Subsidiaries, is currently being
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. Neither
Vibra or any Subsidiary, nor, to Vibra's Knowledge, Ocadian, 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 or any of the facilities or operations conducted by Vibra or its
Subsidiaries, 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
Medicaid 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 Medicaid program; (iii)
failing to disclose knowledge of any event affecting the initial or continued
right to any benefit or payment under Medicare or Medicaid 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 Medicaid, 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 Medicaid; (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.

SECTION 4.13. TAXES. Vibra and its Subsidiaries have filed or caused to be filed
all Tax Returns 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 Vibra and its Subsidiaries have 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 any assets of
Vibra Sub, Vibra or any of its Subsidiaries, or to Seller Parties Knowledge, any
of the assets to be purchased from Ocadian (other than for ad valorem taxes not
yet due and payable), and (ii) no claims being asserted with respect to any
Taxes relating to Vibra Sub, Vibra, any of its Subsidiaries, the Assets or the
Business for which any Purchaser Party could be held liable, and, to Seller
Parties Knowledge, there is no basis for the assertion of any such claim. 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.

                                       16
<PAGE>

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

SECTION 4.15. TITLE AND CONDITION OF THE REAL PROPERTY.

(a) Exhibit B hereto sets forth a legal description of the Leased Real Property
and a description of the Owned Real Property. At Closing, the Seller Parties
will have and convey to the Acquisition Sub good and marketable title in their
interests in the Real Property, free and clear of any and all Liens,
encumbrances, restrictions or easements of any kind whatsoever (other than
Permitted Exceptions).

(b) To Seller Parties' Knowledge, 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 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.

(d) To the Knowledge of the Seller Parties, 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. To the Knowledge of the Seller Parties,
all of said utilities are installed and operating, and all installation and
connection charges have been paid in full.

(e) To Seller Parties' Knowledge, no notice has been received by any Person of a
Public Taking of any portion of the Real Property and the Seller Parties have no
Knowledge of any such Public Taking being threatened or contemplated.

(f) To the Knowledge of the Seller Parties, 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. To the Knowledge of the Seller Parties, 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 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.

                                       17
<PAGE>

(g) The Seller Parties have no 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.

(h) Except for the Ground Lease, there are no leases, subleases, commitment
letters, letters of intent and other rental agreements, whether written or oral,
now or hereafter in effect, 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. 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 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.

(i) To Seller Parties Knowledge, the Real Property constitutes all the land and
improvements used by Ocadian in connection with the operation of the Hospital.

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 Ocadian in
the operation of the Hospital and to be purchased by Vibra (the "Personal
Property"). Except as set forth on Schedule 4.16, at Closing Vibra 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 made available 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) the Seller Parties may, upon
the closing of the transaction under the Ocadian Purchase Agreement, 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 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 any party to the
Personal Property Leases; and (iv) to the Knowledge of Seller Parties, 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 Party of the terms of
any Personal Property Lease. Except as set forth on Schedule 4.16, all Personal
Property 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) to the Seller Parties Knowledge, the ownership and operation of the Real
Property and the Hospital are and have at all times been, in compliance with all
Environmental Laws in all material respects;

(b) to the Seller Parties Knowledge, no Governmental Entity or any
nongovernmental third party has notified Ocadian or any other Person 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

                                       18
<PAGE>

alleging personal injury or property damage caused by exposure to, or the
disposal, release or migration of, any Hazardous Materials;

(c) to the Seller Parties Knowledge, with respect to the ownership, operation
and/or leasing of the Real Property and the Hospital, all storage and disposal
of Hazardous Materials has been done in compliance with the Environmental Laws;

(d) to the Seller Parties Knowledge, there have been no actions nor, 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 Ocadian, any Seller Party or any Purchaser
Party;

(e) To the Knowledge of the Seller Parties, no 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. The Seller Parties have no
Knowledge that any 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. To Seller Parties' Knowledge, no notice has been served
on Ocadian or any other Person 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. Seller Parties have no 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 Vibra and its
Subsidiaries, including the Vibra Sub, with respect to their respective
businesses, including the proposed conduct of the operations of the Hospital and
the professional liability, negligence and other acts of the physicians and
Service Providers, it being acknowledged that such insurance coverages are, at a
minimum, those required by the terms of the Existing Leases and the Lease. All
such Insurance policies are in full force and effect, all premiums due thereon
have been paid in full and Vibra and its Subsidiaries are in compliance with the
terms of such Insurance Policies.

SECTION 4.19. LITIGATION. Except as set forth on Schedule 4.19, there is no
dispute, suit, action, proceeding, inquiry or investigation against or involving
Vibra or any of its Subsidiaries or any of their respective properties or
rights, pending or, to the Knowledge of the Seller Parties, threatened, that, if
decided adversely, would reasonably be expected to result in damages exceeding
Ten Thousand Dollars ($10,000) (including, without limitation any suit, action,

                                       19
<PAGE>

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) (a "Claim") nor do Seller Parties have
Knowledge of any facts which might result in any such 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 Vibra or any of its Subsidiaries and
neither Vibra nor any of its Subsidiaries is 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 the Ocadian Purchase Agreement or this Agreement or any action
taken or to be taken by the Seller Parties pursuant to the Ocadian Purchase
Agreement or this Agreement or in connection with the transactions contemplated
thereby or hereby, nor is there any basis for any such Claim.

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 and/or the operation of the Business to which
Ocadian is a party which will be assigned to and assumed by the Seller Parties
pursuant to the terms of the Ocadian Purchase Agreement (the "Contracts"). The
Seller Parties have made available 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 parties in
accordance with their respective terms and are in full force and effect; (ii)
there are no defaults by any party to the Contracts; (iii) no party has not
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 under
the terms of any Contract; and (v) the Contracts are freely assignable by
Ocadian to the Seller Parties.

SECTION 4.21. COMPLIANCE WITH LAW. Vibra, along with each of its Subsidiaries
(including Vibra Sub) (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 its 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 entity with the regulatory
agencies of any Governmental Entity.

SECTION 4.22. HILL-BURTON OBLIGATIONS.

(a) Except as set forth on Schedule 4.22, neither Vibra or any of its
Subsidiaries (including Vibra Sub), nor, to the Knowledge of the Seller Parties,
any predecessor in interest of Vibra or any of its Subsidiaries (including Vibra
Sub), 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 4.22 have been fully satisfied. The
transactions contemplated

                                       20
<PAGE>

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 the Seller Parties 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 4.23. BROKERS. Except as set forth on Schedule 4.23 hereto, 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 Seller
Parties.

SECTION 4.24. RECORDS. True, complete and current copies of the Seller Parties'
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 Seller Parties, all of which have been
made available to the Purchaser Parties, are complete and correct. The minute
books of Seller Parties contain records of all meetings and other limited
liability company actions of the manager and/or members of Seller Parties, and
have been delivered to the Purchaser Parties prior to the execution and delivery
of this Agreement.

SECTION 4.25. EXISTING LEASES. Vibra and its Subsidiaries are in compliance in
all respects with the terms of the Existing Leases and no default or breach (or
event which with notice and/or passage of time would constitute such a default
or breach) has occurred by any party thereto. None of the facilities and none of
the Vibra Subsidiaries subject to the existing Leases has suffered a Material
Adverse Effect since December 31, 2004 and no event has occurred which would
reasonably likely to result in such a Material Adverse Effect.

SECTION 4.26. REPRESENTATIONS COMPLETE. The representations and warranties made
by the Seller Parties in this Agreement (and, to the Knowledge of Seller
Parties, by Ocadian in the Ocadian Purchase Agreement) and the statements made
in or information contained on any Schedules or certificates furnished by the
Seller Parties pursuant to this Agreement (and, to the Knowledge of Seller
Parties, by Ocadian in the Ocadian Purchase 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 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.

                                       21
<PAGE>

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.

SECTION 5.5. BROKERS. Except as set forth on Schedule 5.5 hereto, 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,

                                       22
<PAGE>

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. Purchaser Parties shall cause to be prepared, at the
expense of the Seller Parties, 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 Purchaser
Parties shall disapprove such survey for any reason in Purchaser Parties' sole
discretion, Purchaser Parties 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 the Seller Parties thereof, then Purchaser Parties may terminate this
Agreement upon written notice to the Seller Parties.

SECTION 6.2. TITLE INSURANCE. Purchaser Parties will cause to be prepared, at
the 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 only to the Permitted Exceptions. 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 Purchaser Parties shall
disapprove any items stated in the Title Commitment or the Exception Documents,
Purchaser Parties 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 Purchaser Parties may terminate this Agreement upon
written notice to the Seller Parties.

                                       23
<PAGE>

                                  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 the Seller Parties, nor any investment banker,
attorney, accountant, representative or other Person retained by or on behalf of
the Seller Parties, 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 the Seller Parties or the Assets to, afford any
access to the properties, books or records of the Seller Parties 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
Purchaser Parties 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, medical staff, and other agents and
representatives and during normal working hours to all books, records, offices
and other facilities of Seller Parties and shall use their best efforts to cause
Ocadian to afford to Purchaser Parties similar access to its personnel and
records relating to the Assets and the Business, (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, Vibra, its Subsidiaries and Vibra Sub 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, subject to
Ocadian's approval, 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 Parties deem necessary or appropriate in their sole and absolute
discretion, the condition (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 use
their best efforts to cause Ocadian to allow the Purchaser Parties and their
authorized representatives full access to the Assets and the Business, 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 and
the Business, 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

                                       24
<PAGE>

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 Confidentiality Agreement currently in effect 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.

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 respective 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

                                       25
<PAGE>

preserve substantially intact their respective business organizations, to keep
available the services of their current officers, employees and consultants and
to preserve their present relationships with patients, suppliers and other
persons with which they 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 Purchaser Parties:

(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) modify or amend Ocadian Purchase Agreement;

(i) 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;

(j) 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;

(k) engage in any business other than the business currently conducted by such
Seller Party;

(l) 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); or

(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 such Seller Party contained in this
Agreement untrue, incorrect or incomplete or prevent such Seller Party from
performing or cause such 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.

                                       26
<PAGE>

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. 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 promptly give such notices to third parties and use
its commercially reasonable efforts to obtain such third party consents and
estoppel certificates as Purchaser Parties may in their 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
Assets.

(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 Asset which Purchaser Parties in
their 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 Asset if an attempted assignment
thereof, without the consent of the other party thereto, would constitute a
breach or other contravention thereof, noncompliance by the Seller Parties or
their Affiliates 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 with respect to any
such Asset 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 Asset, 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 would enforce for the benefit of the Purchaser Parties, with
the Purchaser Parties assuming the Seller Parties' obligations, any and all
rights of the Seller Parties against a third party thereto.

                                       27
<PAGE>

SECTION 7.7. 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 7.8. 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 he documents referenced in Section 9.3 hereof.

(d) The closing of the transactions contemplated by the Ocadian Purchase
Agreement shall have occurred.

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 the 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.

                                       28
<PAGE>

(c) The Seller Parties shall not have suffered any change, event or circumstance
which has had, or could have, a Material Adverse Effect.

(d) The closing of the transactions contemplated by the Ocadian Purchase
Agreement shall have occurred.

(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 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 the Seller Parties,
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 the Ocadian Purchase Agreement or this Agreement.

(l) 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 held at the offices of Baker, Donelson,
Bearman, Caldwell and Berkowitz, P.C. on June 30, 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. THE SELLER PARTIES' CLOSING DATE DELIVERABLES. On the Closing Date,
the Seller Parties shall deliver to the Purchaser Parties the documents listed
below.

                                       29
<PAGE>

(a) Duly executed bills of sale and assignments transferring all Assets
(including all of the Seller Parties' rights under and with respect to the
Ground Lease) other than the Owned 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 Owned Real Property to the Acquisition Sub;

(c) A certified copy of the resolutions of the governing body of the Seller
Parties dated as of the date hereof and authorizing the Seller Parties'
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 the Seller Parties from the
Secretary of State of the State of Delaware, dated the most recent practical
date prior to the Closing Date;

(e) Certificates of good standing and foreign qualification of the Seller
Parties 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, if any, in form and substance satisfactory to
MPT;

(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);

                                       30
<PAGE>

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

(s) The Subordination of Management Agreement in form and substance satisfactory
to MPT.

(t) The legal opinion of Latsha, Davis, Yohe & McKenna, P.C., as counsel for the
Seller Parties, substantially in the form attached hereto as Exhibit 9.2(t);

(u) At the Closing, the Seller Parties shall have furnished to the Purchaser
Parties a certificate dated the Closing Date signed by the Seller Parties to the
effect that all of the representations and warranties of the Seller Parties
contained in this 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 the
Seller Parties have performed and satisfied in all material respects all
covenants and conditions required by this Agreement to be performed or satisfied
by the Seller Parties 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) 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;

(b) Certificates of existence and good standing of each Purchaser Party from the
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);

                                       31
<PAGE>

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

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

(j) 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
June 30, 2005; or (iii) by the Purchaser Parties if the conditions set forth in
Section 8.2 shall not have been satisfied on or before June 30, 2005.

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 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.

                                       32
<PAGE>

SECTION 11.2. LICENSURE, LTAC CONVERSION. To the extent not obtained as of
Closing, the Seller Parties shall use their best efforts, including the
scheduling of all applicable surveys of state or federal governmental agencies,
to obtain, as soon as possible following the Closing, all provider numbers
permitting Vibra Sub to participate in the Government Programs and all other
licenses and permits from Governmental Entities necessary to conduct the
Business. The Seller Parties shall immediately notify the Purchaser Parties in
the event of any controversy relating to such efforts, including any
deficiencies identified by applicable governmental agencies with respect to the
aforementioned surveys, and shall use its best efforts to remedy any such
deficiencies immediately. In addition, Seller Parties shall use their best
efforts to obtain, as soon as possible, necessary approvals from applicable
Governmental Entities for the conversion of the Hospital's existing skilled
nursing beds to long term acute care beds. Seller Parties shall immediately
notify Purchaser Parties of any developments or controversies with respect to
such efforts.

SECTION 11.3. OCADIAN PURCHASE AGREEMENT INDEMNIFICATION. The parties
acknowledge that Seller Parties now has or may hereafter have certain
indemnification rights and claims against Ocadian pursuant to the terms of
Ocadian Purchase Agreement. In the event that any such indemnification right or
claim under the Ocadian Purchase Agreement shall arise or accrue after the
Closing with respect to or affecting any of the Assets which are delivered and
conveyed as of such Closing (an "Ocadian Claim"), the Seller Parties shall,
after notification to Purchaser Parties (i) immediately notify Ocadian of the
Ocadian Claim (including all material facts related thereto) and make a claim
for indemnity against Ocadian with respect thereto pursuant to the terms of the
Ocadian Purchase Agreement; (ii) immediately notify the Purchaser Parties of any
and all communications, notices or other information, whether written or oral,
it receives with respect to the Ocadian Claim; (iii) coordinate with Purchaser
Parties in the exercise all of the Seller Parties' rights with respect to the
Ocadian Claim (including, without limitation, the selection, engagement and/or
approval of counsel) it being understood that no Seller Party shall take any
action with respect to any Ocadian Claim (except for those actions set forth in
(i) and (ii) above) without the Purchaser Party's prior written consent; (iv)
hold in trust for the benefit of the Purchaser Parties and account for any
amounts received by any Seller Party in respect of any Ocadian Claim until the
final resolution of any of the Purchaser Parties' indemnity claims against the
Seller Parties hereunder which may be based on, or arise as a consequence of,
the facts and circumstances giving rise to the Ocadian Claim; and (v) not take
or agree to take any action which would conflict with its obligations to
Purchaser Parties with respect to such Ocadian Claim pursuant to this Section
11.3 or which would otherwise adversely affect any rights of the Seller Parties
with respect to such Ocadian Claim.

                                  ARTICLE XII
                                INDEMNIFICATION

SECTION 12.1. THE SELLER PARTIES' AGREEMENT TO INDEMNIFY.

(a) Subject to the limitations set forth in this Article, the Seller Parties
agrees to jointly and severally 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

                                       33
<PAGE>

(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
the Seller Parties; (ii) any Excluded Liabilities (including Taxes arising prior
to Closing and any liability arising out of the ownership and operation of the
Assets prior to Closing) or (iii) any liability arising out of or relating to a
breach or default by Ocadian under the Ocadian Purchase Agreement or any
liability or obligation with respect to which Ocadian is required to indemnify
Seller Parties under the Ocadian Purchase Agreement (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'
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 Parties 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 Two Hundred Fifty Thousand and
No/100 Dollars ($250,000.00) (the "Minimum Aggregate Liability Amount") in which
event the foregoing indemnification obligation shall apply to the aggregate
amount of Purchaser Damages that exceeds Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00); provided, however, that the maximum liability of the
Seller Parties under this Agreement shall be an amount equal Eight Million and
No/100 Dollars ($8,000,000.00). The foregoing limitations on time and amount
shall not apply to any Purchaser Damages arising or resulting from (i) any act
or omission of the Seller which constitutes fraud, (ii) any breach by the Seller
Parties of their post-closing covenants; or (iii) the Excluded Liabilities
(which for this purpose shall include all liabilities referred to in clause
(iii) of Section 12.1(a) above).

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, their Affiliates and their respective officers, directors, members,
purchasers, shareholders, employees 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

                                       34
<PAGE>

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 Two
Hundred Fifty Thousand and No/100 Dollars ($250,000.00) in which event the
foregoing indemnification obligation shall apply to the aggregate amount of
Seller Damages that exceeds Two Hundred Fifty Thousand and No/100 Dollars
($250,000.00); provided, however, that the maximum liability of the Purchaser
Parties under this Agreement shall be an amount equal to the Eight Million and
No/100 Dollars ($8,000,000.00). 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 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.

                                       35
<PAGE>

(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.

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.

                                       36
<PAGE>

                                  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 DELAWARE
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 NEW CASTLE COUNTY, STATE OF DELAWARE, 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 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 Purchaser Parties may at any time and without the consent of the
Seller Parties 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   Vibra Healthcare, LLC
                                  4550 Lena Drive
                                  Suite 225
                                  Mechanicsburg, PA 17055
                                  Attention:  Brad Hollinger

         With a copy to:          Latsha, Davis, Yohe & McKenna, P.C.
                                  1700 Bent Creek Boulevard

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<PAGE>

                                           Mechanicsburg, PA 17050
                                           Attention: Douglas C. Yohe, 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.

                                       38
<PAGE>

         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.

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 as 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 Parties 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

                                       39
<PAGE>

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 the 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 the
Seller Parties set forth herein.

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 or financing
transactions with lenders or other third parties 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.]

                                       40
<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.

                                          PURCHASER PARTIES:

                                          MPT OPERATING PARTNERSHIP, L.P.

                                          By:    /s/ Emmett E. McLean
                                                 -------------------------------
                                          Name:  Emmett E. McLean
                                                 Executive Vice President, Chief
                                          Title: Operating Officer and Treasurer

                                          MPT OF REDDING, LLC

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

                                          By:    /s/ Emmett E. McLean
                                                 -------------------------------
                                          Name:  Emmett E. McLean
                                                 Executive Vice President, Chief
                                          Title: Operating Officer and Treasurer

                                          SELLER PARTIES:

                                          VIBRA HEALTHCARE, LLC

                                          By:    /s/ Brad E. Hollinger
                                                 -------------------------------
                                          Name:  Brad E. Hollinger
                                          Title: President

                                          NORTHERN CALIFORNIA
                                          REHABILITATION HOSPITAL, LLC

                                          By:    /s/ Brad E. Hollinger
                                                 -------------------------------
                                          Name:  Brad E. Hollinger
                                          Title: President

                                       41
<PAGE>

                                    EXHIBIT A

                                      Lease

                                [See attachment.]

                                      A-1
<PAGE>

                                    EXHIBIT B

                   Legal Description of the Land/Real Property

Parcels A and B as set forth and shown on that certain Map entitled "Parcel Map
No. LS 104-78 for David Lee McGeorge and Shirley Jean McGeorge, as Co-Trustees
of Daves Mac., Inc. Profit Sharing Trust, being a portion of Tract E, Division 2
of the P.B. Reading Grant, in the City of Redding, Shasta County, California,"
filed in the Office of the County Recorder, February 7, 1979 in Book 17 of
Parcel Maps at Page 87, Shasta County Records.

APN:  103-240-051

                                      B-1
<PAGE>

                                 EXHIBIT 9.2(b)

                                      Deed

                                [See attachment.]

<PAGE>

                                 EXHIBIT 9.2(p)

                            Lease Guaranty Agreement

                                [See attachment.]

<PAGE>

                                 EXHIBIT 9.2(q)

                         Assignment of Rents and Leases

                                [See attachment.]

<PAGE>

                                 EXHIBIT 9.2(r)

                               Security Agreement

                                [See attachment.]

<PAGE>

                                 EXHIBIT 9.2(t)

              Legal Opinion of Latsha, Davis, Yohe & McKenna, P.C.

                                [See attachment.]

<PAGE>

                                 EXHIBIT 9.2(w)

                              Noncompete Agreements

                                [See attachment.]

<PAGE>

                                 EXHIBIT 9.3(f)

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

                                [See attachment.]<PAGE>

                                                                   EXHIBIT 10.51

                                                                     REDDING, CA

                                 LEASE AGREEMENT

                              MPT OF REDDING, LLC,
                      a Delaware limited liability company

                                     Lessor

                                       AND

                NORTHERN CALIFORNIA REHABILITATION HOSPITAL, LLC,
                      a Delaware limited liability company

                                     Lessee

                             VIBRA HEALTHCARE, LLC,
                              VIBRA MANAGEMENT, LLC
                                       AND
                        SENIOR REAL ESTATE HOLDINGS, LLC

                                   Guarantors

                                    Property:

                     Eighty-eight (88)-Bed Hospital Facility
    (Commonly referred to as the Northern California Rehabilitation Hospital)
                                 2801 Eureka Way
                       Redding, Shasta County, California

                                  June 30, 2005

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
                                                                              Page
                                                                              ----
<S>                                                                           <C>
LEASE AGREEMENT.............................................................    i
LEASE AGREEMENT.............................................................    1
ARTICLE I    LEASED PROPERTY; TERM..........................................    2
ARTICLE II   DEFINITIONS....................................................    3
ARTICLE III  RENT...........................................................   12
      3.1    Base Rent......................................................   12
      3.2    Additional Charges.............................................   12
      3.3    Absolute Triple Net Lease......................................   13
      3.4    Lease Deposit..................................................   13
      3.5    Adjustments....................................................   13
      3.6    Rent and Payments under the Ground Lease.......................   13
ARTICLE IV   IMPOSITIONS....................................................   13
      4.1    Payment of Impositions.........................................   13
      4.2    Adjustment of Impositions......................................   14
      4.3    Utility Charges................................................   14
      4.4    Insurance Premiums.............................................   14
ARTICLE V    NO TERMINATION.................................................   14
      5.1    Acknowledgement................................................   14
ARTICLE VI   OWNERSHIP OF LEASED PROPERTY AND PERSONAL PROPERTY.............   15
      6.1    Ownership of the Leased Property...............................   15
      6.2    Lessee's Personal Property.....................................   15
ARTICLE VII  CONDITION AND USE OF LEASED PROPERTY...........................   15
      7.1    Condition of the Leased Property...............................   15
      7.2    Use of the Leased Property.....................................   15
      7.3    Lessor to Grant Easements......................................   16
ARTICLE VIII LEGAL AND INSURANCE REQUIREMENTS...............................   17
      8.1    Compliance with Legal and Insurance Requirements...............   17
      8.2    Legal Requirement Covenants....................................   17
      8.3    Hazardous Materials............................................   17
      8.4    Healthcare Laws................................................   18
      8.5    Representations and Warranties.................................   18
      8.6    Single Purpose Entity..........................................   18
      8.7    Organizational Documents.......................................   18
ARTICLE IX   REPAIRS; RESERVES; RESTRICTIONS................................   19
      9.1    Maintenance and Repair.........................................   19
      9.2    Reserves for Extraordinary Repairs.............................   20
      9.3    Encroachments; Restrictions....................................   20
      9.4    Special Reserve................................................   20

ARTICLE X    CAPITAL ADDITIONS..............................................   21
      10.1   Construction of Capital Additions to the Leased Property.......   21
</TABLE>

                                       i
<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                              Page
                                                                              ----
<S>                                                                           <C>
      10.2    Capital Additions Financed by Lessee.........................    22
      10.3    Capital Additions Financed by Lessor.........................    22
      10.5    Salvage......................................................    24
ARTICLE XI    LIENS........................................................    24
ARTICLE XII   PERMITTED CONTESTS...........................................    25
ARTICLE XIII  INSURANCE....................................................    25
      13.1    General Insurance Requirements...............................    25
      13.2    Additional Insurance.........................................    27
      13.3    Waiver of Subrogation........................................    28
      13.4    Form of Insurance............................................    28
      13.5    Increase in Limits...........................................    28
      13.6    Blanket Policy...............................................    28
      13.7    No Separate Insurance........................................    29
ARTICLE XIV   FIRE AND CASUALTY............................................    29
      14.1    Insurance Proceeds...........................................    29
      14.2    Reconstruction in the Event of Damage or Destruction
              Covered by Insurance.........................................    29
      14.3    Reconstruction in the Event of Damage or Destruction Not
              Covered by Insurance.........................................    30
      14.4    Lessee's Personal Property...................................    30
      14.5    Restoration of Lessee's Property.............................    30
      14.6    No Abatement of Rent.........................................    30
      14.7    Damage Near End of Term......................................    31
      14.8    Termination of Right to Purchase.............................    31
      14.9    Waiver.......................................................    31
      14.10   Purchase Option Subordinate to Facility Instrument...........    31
ARTICLE XV    CONDEMNATION.................................................    31
      15.1    Definitions..................................................    31
      15.2    Parties' Rights and Obligations..............................    32
      15.3    Total Taking.................................................    32
      15.4    Partial Taking...............................................    32
      15.5    Restoration..................................................    32
      15.6    Award Distribution...........................................    32
      15.7    Temporary Taking.............................................    32
      15.8    Purchase Option Subordinate to Facility Instrument...........    31
ARTICLE XVI   DEFAULT......................................................    33
      16.1    Events of Default............................................    33
      16.2    Events of Default in Financial Covenants.....................    37
      16.3    Additional Expenses..........................................    38
      16.4    Intentionally Omitted........................................    38
      16.5    Waiver.......................................................    38
      16.6    Application of Funds.........................................    38
</TABLE>

                                       ii
<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                              Page
                                                                              ----
<S>                                                                           <C>
      16.7        Notices by Lessor.........................................   38
      16.8        Lessor's Contractual Security Interest....................   38
ARTICLE XVII      LESSOR'S RIGHT TO CURE....................................   40
ARTICLE XVIII     PURCHASE OF THE LEASED PROPERTY...........................   40
ARTICLE XIX       HOLDING OVER..............................................   41
ARTICLE XX        INTENTIONALLY OMITTED.....................................   41
ARTICLE XXI       INTENTIONALLY OMITTED.....................................   41
ARTICLE XXII      RISK OF LOSS..............................................   41
ARTICLE XXIII     INDEMNIFICATION...........................................   41
ARTICLE XXIV      ASSIGNMENT, SUBLETTING AND SUBLEASE SUBORDINATION.........   42
      24.1        Assignment and Subletting.................................   42
      24.2        Sublease Limitations......................................   42
      24.3        Sublease Subordination and Non-Disturbance................   43
ARTICLE XXV       OFFICER'S CERTIFICATES; FINANCIAL STATEMENTS;
                  NOTICES AND OTHER CERTIFICATES............................   43
ARTICLE XXVI      INSPECTION................................................   45
ARTICLE XXVII     NO WAIVER.................................................   45
ARTICLE XXVIII    REMEDIES CUMULATIVE.......................................   45
ARTICLE XXIX      SURRENDER.................................................   45
ARTICLE XXX       NO MERGER OF TITLE........................................   46
ARTICLE XXXI      TRANSFERS BY LESSOR.......................................   46
ARTICLE XXXII     QUIET ENJOYMENT...........................................   46
ARTICLE XXXIII    NOTICES...................................................   47
ARTICLE XXXIV     APPRAISAL.................................................   48
ARTICLE XXXV      PURCHASE RIGHTS...........................................   46
      35.1        INTENTIONALLY OMITTED.....................................   46
      35.2        Lessor's Option to Purchase Lessee's Personal Property....   48
ARTICLE XXXVI     INTENTIONALLY OMITTED.....................................   49
ARTICLE XXXVII    FINANCING OF THE LEASED PROPERTY..........................   49
      37.1        Financing by Lessor.......................................   49
ARTICLE XXXVIII   SUBORDINATION AND NON-DISTURBANCE.........................   49
ARTICLE XXXIX     LICENSES..................................................   50
ARTICLE XL        COMPLIANCE WITH HEALTHCARE LAWS...........................   51
ARTICLE XLI       LESSOR'S RIGHT TO SELL AND LESSEE'S RIGHT OF FIRST
                  REFUSAL...................................................   52
      41.1        Lessor's Right to Sell....................................   52
      41.2        Lessee's Right of First Refusal...........................   52
ARTICLE XLII      MISCELLANEOUS.............................................   52
      42.1        General...................................................   52
      42.2        Lessor's Expenses.........................................   52
      42.3        Entire Agreement; Modifications...........................   52
      42.4        Lease Guaranty............................................   52
</TABLE>

                                       iii
<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                              Page
                                                                              ----
<S>                                                                           <C>
      42.5        Future Financing..........................................   53
      42.6        Letter of Credit..........................................   53
      42.7        Change in Ownership/Control...............................   51
      42.8        Lessor Securities Offering and Filings....................   53
      42.9        Non-Recourse as to Lessor.................................   53
      42.10       Management Agreements.....................................   54
      42.11       Counterparts..............................................   54
ARTICLE XLIII     MEMORANDUM OF LEASE.......................................   54
</TABLE>

                                       iv
<PAGE>

                                 LEASE AGREEMENT

      This LEASE AGREEMENT (the "Lease") is dated as of the 30th day of June,
2005, and is between MPT OF REDDING, LLC, a Delaware limited liability company
("Lessor"), having its principal office at 1000 Urban Center Drive, Suite 501,
Birmingham, Alabama 35242, and NORTHERN CALIFORNIA REHABILITATION HOSPITAL, LLC,
a Delaware limited liability company ("Lessee"), having its principal office at
4550 Lena Drive, Mechanicsburg, Pennsylvania 17055.

                              W I T N E S S E T H:

      WHEREAS, by that certain Grant Deed dated November 12, 1997, which was
recorded on November 17, 1997, as Instrument No. 1997-0038346, in Book 3619,
Page 785, in the Official Records of the County Recorder of Shasta County,
California, National Specialty Hospital of Redding, Inc. ("NMSHR") conveyed to
Guardian Postacute Services, Inc. ("GPS") all of its right, title and interest
in and to the buildings and improvements located on that certain real estate
which is located in Redding, Shasta County, California, which real estate is
more particularly described on EXHIBIT A attached hereto and made a part hereof
by reference and incorporation (the "Ground Leased Land");

      WHEREAS, NMSHR, as Landlord, and GPS, as Tenant, entered into that certain
Ground Lease Agreement dated November 17,1994, whereby the Ground Leased Land
was leased to GPS, which Ground Lease was amended by that certain Amendment No.
1 to Ground Lease Agreement dated November 29, 2001, all as evidenced by (i)
that certain Memorandum of Lease Agreement dated as of November 12, 1997, which
was recorded on November 17, 1997, as Instrument No. 1997-0038345 (Book 3619,
Page 779) in the Official Records of the County Recorder of Shasta County,
California, and (ii) that certain Amendment No. 1 to Memorandum of Lease
Agreement dated as of November 16,2001, which will be recorded simultaneously
herewith in the Official Records of the County Recorder of Shasta County,
California (collectively, the "Ground Lease");

      WHEREAS, GPS subsequently changed its name to Ocadian Care Centers, Inc.,
a California corporation, by amendment to its Articles of Incorporation, filed
with the California Secretary of State on July 3, 2000; and, Ocadian Care
Centers, Inc. subsequently converted to Ocadian Care centers, LLC, a California
limited liability company, by filing Articles of Organization-Conversion
(LLC-1A) with the California Secretary of State on January 7, 2005 ("Ocadian");

      WHEREAS, by that certain Grant Deed dated July 15, 2004, to the effective
on July 16, 2004, which was recorded on July 15, 2004, as Instrument No.
2004-0040414, in the Official Records of the County Recorder of Shasta County,
California, NMSHR conveyed all of its right, title and interest in the Leased
Property to Shasta Regional Medical Center, LLC, a California limited liability
company (the "Ground Lessor"), and by that certain Asset Sale Agreement dated
April 16, 2004 (as amended), NMSHR assigned all of its right, title and interest
in and to the Ground Lease to the Ground Lessor;

      WHEREAS, by that certain Grant Deed dated simultaneously herewith, Ocadian
conveyed all of its right, title and interest in and to said buildings and
improvements located on the Ground Leased Land to Northern California
Rehabilitation Hospital, LLC; and, by that certain Assignment and Assumption of
Ground Lease dated simultaneously herewith, Ocadian conveyed to Lessee all of
its right, title and interest under the Ground Lease;

      WHEREAS, by that certain Grant Deed dated simultaneously herewith, Lessee
conveyed all of its right, title and interest in and to said buildings and
improvements located on the Ground Leased Land to Lessor; and, by that certain
Assignment and Assumption of Ground Lease dated simultaneously herewith, Lessee
conveyed to Lessor all of its right, title and interest under the Ground Lease;

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

<PAGE>

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

                                   ARTICLE I

                              LEASED PROPERTY; TERM

      Lessor and Lessee acknowledge and agree that this Lease is subject to all
of the terms, conditions, provisions, limitations and obligations contained in
the Ground Lease and Lessee accepts, assumes and agrees to perform and observe
all of such terms, conditions, provisions, limitations and obligations contained
therein and to be performed on the part of the Lessor as lessee therein,
including the payment of Ground Lease Rent, except as expressly modified and
limited herein. In the event of termination of the Ground Lease, by lapse of
time or for any other reason, prior to the cancellation or termination of this
Lease, this Lease shall automatically terminate on the effective date of the
termination of the Ground Lease, unless said termination shall have been caused
by an act or omission of the Lessee, in which event Lessee shall remain liable
to Lessor in accordance with the terms hereof, therefore, 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 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

                                       2
<PAGE>

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, Lessee shall
fail to comply with all of the terms and provisions of this Lease, or 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.

      Associated Facilities: This Facility along with the facilities leased by
Lessor's Affiliates to Lessee's Affiliates in Fresno, California, Kentfield,
California, Marlton, New Jersey, Bowling Green, Kentucky, New Bedford,
Massachusetts, and Thornton, Colorado.

      Award: As defined in Section 15.1.

      Base Rent: As defined in Section 3.1.

      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.

                                       3
<PAGE>

      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.

      Combined EBITDAR: The EBITDAR of the Combined Lessees as reduced for any
inter-company transactions.

      Combined Fixed Charges: The sum of Combined Lease Payments and required
principal and interest payments with respect to the Total Debt as reduced for
any inter-company transactions.

      Combined Lease Payments: The payments of Base Rent required pursuant to
this Lease and the payments of Coverage Rent pursuant to and as defined under
the Other Leases.

      Combined Lessees: The Lessee and any Affiliates of Lessee or any of the
Guarantors which are also tenants of Lessor or any of its Affiliates.

      Commencement Date: The date hereof.

      Commitment Letter: The commitment letter between Lessor and Lessee (or
their Affiliates) dated May 9, 2005.

      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)

                                       4
<PAGE>

      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.

      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.

      Coverage Rent: Shall have the meaning set forth in the Other Leases.

      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.

      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 shall be necessary or appropriate from time to time during the Term.

      Facility: The licensed eighty-eight (88)-bed hospital facility and all
improvements in connection therewith operated on the Land.

      Facility Instrument: A note (whether secured or unsecured), loan
agreement, credit agreement, guaranty, security agreement, mortgage, deed of
trust or other security agreement pursuant to which a Facility Lender has
provided financing to Lessor in connection with the Leased Property or any part
thereof, or financing provided to Lessee, if such financing is provided by
Lessor or any Affiliate of Lessor, to Lessee, and any and all renewals,
replacements, modifications, supplements, consolidations, spreaders and
extensions thereof.

      Facility Lender: A holder (which may include any Affiliate of Lessor) of
any Facility Instrument.

                                       5
<PAGE>

      Fair Market Added Value: The Fair Market Value 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 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.

      Ground Lease: The Ground Lease as defined in the Recitals of this Lease.

      Ground Lease Rent: All rent, additional rent and other costs and expenses
paid by Lessor or due and payable under the Ground Lease.

      Ground Lessor: The Ground Lessor as defined in the Recitals of this Lease.

      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, Vibra Healthcare, LLC, a Delaware
limited liability company, Vibra Management, LLC, a Delaware limited liability
company and Senior Real Estate Holdings, LLC, a Delaware limited liability
company.

      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

                                       6
<PAGE>

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 Real
Estate Taxes (including, without limitation, all capital stock and franchise
taxes of Lessor, 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.) contemporaneously herewith 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 Premiums: As defined in Section 4.4.

      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.

                                       7
<PAGE>

      Lease Assignment: That certain Assignment of Rents and Leases to be
effective the Commencement Date executed and delivered by Lessee to Lessor (as
such Lease Assignment may be amended, modified and/or restated from time to
time), 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 Guaranty: That certain Lease Guaranty to be effective the
Commencement Date executed and delivered by Guarantors in favor of Lessor (as
such Lease Guaranty may be amended, modified and/or restated from time to time),
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 all other obligations of Lessee, Guarantors and any
Affiliates of Lessee and Guarantors to Lessor.

      Lease Rate: A per annum rate equal to ten and one-half percent (10.5%),
subject to the escalator as set forth in Section 3.1(b) hereof.

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

      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: Northern California Rehabilitation Hospital, LLC, a Delaware
limited liability company, 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.

                                       8
<PAGE>

      Lessor: MPT of Redding, 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 Combined Lessees: An amount equal to the collective
EBITDAR of the Combined Lessees, 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.

      MPT Development Debt: As defined in the definition of Total Debt.

      MPT Development Services: MPT Development Services, Inc., an Affiliate of
Lessor.

      Non-Competition Agreements: Those certain Non-Competition Agreements
executed by Lesee and Guarantors simultaneously with the execution of this
Lease.

      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.

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

      Primary Intended Use: As defined in Article VII.

                                       9
<PAGE>

      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
___________, 2005, by and among Lessor, Lessee, MPT Operating Partnership, L.P.
and Vibra Healthcare, LLC.

      Purchase Price: The Initial Purchase Price, plus any additional purchase
price amounts paid by Lessor pursuant to the Purchase Agreement or pursuant to
Section 9.4, 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."

      Real Estate Taxes: All real estate taxes, assessments and special
assessments and dues which are levied or imposed upon the Leased Property during
the Term.

      Redding EBITDAR: The EBITDAR of Lessee.

      Redding Fixed Charges: The sum of the Redding Lease Payments and required
principal and interest payments with respect to the Redding Total Debt.

      Redding Lease Payments: The payment of Base Rent under this Lease.

      Redding Total Debt: All indebtedness which, in accordance with GAAP, will
be included in determining total liabilities of Lessee, as shown on the
liability side of a balance sheet, including any such indebtedness represented
by obligations under a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP, excluding any nonrecourse
indebtedness and excluding any current liabilities.

      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), Ground Lease Rent and the Additional
Charges.

      Security Agreement: That certain Security Agreement to be effective the
Commencement Date executed and delivered by Lessee to Lessor (as such Security
Agreement may be amended, modified and/or restated from time to time), 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)
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

                                       10
<PAGE>

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.

      Total Debt: All indebtedness which, in accordance with GAAP, will be
included in determining total liabilities of Vibra Healthcare, LLC and the
Combined Lessees, as shown on the liability side of a balance sheet, including
any such indebtedness represented by obligations under a lease that is required
to be capitalized for financial reporting purposes in accordance with GAAP,
excluding any nonrecourse indebtedness and excluding any current liabilities but
including, for purposes of Section 16.2 hereof, the liability of Vibra
Healthcare LLC under that certain Promissory Note in the principal amount of
Forty-One Million Four Hundred Fifteen Thousand Nine Hundred Eighty-Six and
No/100 Dollars ($41,415,986.00) in favor of MPT Development Services (the "MPT
Development Debt").

      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.

                                       11
<PAGE>

                                  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 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 and one-half percent (10.5%) multiplied by the total Purchase Price
      actually paid, which per annum rental amount as of the date hereof is an
      annual amount of One Million Eight Hundred Ninety Thousand and No/100
      Dollars ($1,890,000.00). 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 with the month that includes
      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 by an amount equal to the
      greater of (A) two and one-half percent (2.5%) 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; provided, however, that such rate of escalation
      applicable to the adjustment for January 2006 shall be prorated for the
      period between the Closing Date and January 1, 2006. 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 and one-half percent
      (10.5%) 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 Real Estate Taxes, Insurance Premiums, maintenance and capital improvements,
all violations of and defaults under any of the Permitted Exceptions, all
licensure violations, 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 and/or its
Affiliates for all such amounts paid by Lessor and/or its Affiliates 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, 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. If at any time during the Term Lessor requires Lessee to pay
into escrow or make deposits to Lessor (or to a Facility Lender, if requested by
Lessor) relating to any part of the Additional Charges (including, without
limitation, the Impositions, Real Estate Taxes and/or Insurance Premiums),
Lessee shall pay to Lessor (or directly to a Facility Lender, if requested by
Lessor), upon written request from Lessor, amounts adequate to fund Lessee's
Additional Charge obligations hereunder when due. All sums paid into escrow or
deposits made shall not bear interest and shall not be commingled with Lessor's
books, accounts and

                                       12
<PAGE>

funds; however, upon a default or an Event of Default under this Lease, the
escrowed funds or deposit may be applied by Lessor (or the Facility Lender) to
all sums owed by Lessee to Lessor (or to sums owed to Facility Lender).

      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.

      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.

      3.6 RENT AND PAYMENTS UNDER GROUND LEASE. Lessee shall pay all Ground
Lease Rent directly to the Ground Lessor as and when the Ground Lease Rent
becomes due and payable all as required under the Ground Lease (a copy of which
has been provided to Lessee), and Lessee shall provide Lessor written proof of
payment each month confirming that the Ground Lease Rent has been timely paid;
or, at Lessor's request, Lessee shall pay the Ground Lease Rent to Lessor at
least five (5) business days prior to its due date under the Ground 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, unless, in the case of escrows
and deposits required to be paid to Lessor or Facility Lender as provided in
Section 3.2 herein, 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

                                       13
<PAGE>

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.

      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.

                                       14
<PAGE>

                                   ARTICLE VI

               OWNERSHIP OF LEASED PROPERTY AND PERSONAL PROPERTY

      6.1 OWNERSHIP OF THE LEASED PROPERTY. Lessee acknowledges that Lessor has
a ground leasehold interest in the Ground Leased Land pursuant to the Ground
Lease, and owns the buildings and improvements located on the Ground Leased
Land, all as described in the Recitals above, and that Lessee has only the right
to the possession and use of the Leased Property upon the terms and conditions
of this Lease and subject to the terms, conditions and provisions of the Ground
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.

                                  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. 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 consistent with the
      Primary Intended Use.

            (b) Beginning on the Commencement Date and during the entire Term,
      Lessee shall use the Leased Property and the improvements thereon only as
      allowed or permitted under the Ground Lease and

                                       15
<PAGE>

      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, provided, however,
      that Lessee may pursue the conversion of the Facility's existing skilled
      nursing beds to long-term acute care beds. 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.

            (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.

                                       16
<PAGE>

                                  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 applicable to
Lessee and its 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. 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 8.1.

      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.

      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
Materials 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 Materials 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
Materials 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 Materials 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 Materials Laws, or
requiring compliance with any Hazardous Materials 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 Materials Laws. Lessee hereby agrees to indemnify and defend, at its
sole cost and expense, and hold Lessor, its successors and

                                       17
<PAGE>

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 any
Hazardous Materials Laws. 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 or any violation of
any Healthcare Laws.

      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
limited liability company 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 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.

      8.6 SINGLE PURPOSE ENTITY. Lessee represents, warrants, covenants and
agrees that Lessee has been since its formation, 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

                                       18
<PAGE>

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 its name. Lessee has,
simultaneously with the execution of this Lease, delivered to Lessor a true and
complete copy of its articles of organization/certificate of formation and
limited liability company operating agreement 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; RESERVES; 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 (including any such repairs required to be made by
      Lessor) 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 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 Ten Thousand and 00/100 Dollars ($10,000.00) 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

                                       19
<PAGE>

      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 January 1, 2006,
Lessee shall make annual deposits to a reserve account for Extraordinary Repairs
(the "Reserve") to be held by Lessor in an interest-bearing account in an amount
equal to the sum of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) per
bed per annum. For the period commencing on January 1, 2006 and ending on
December 31, 2006, the number of beds shall be assumed to be eighty-eight (88).
Beginning on January 1, 2007, 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, 2007, and on each January 1 thereafter
during the entire Lease Term, such payment into the Reserve shall be increased
by an amount equal to the greater of (A) two and one-half percent (2.5%) per
annum of the prior year's Reserve required by this Lease, 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. The amounts in the Reserve
shall be used to pay for Extraordinary Repairs on the Facility, or, in the event
Lessee fails to make any required non-Extraordinary Repairs hereunder, Lessor
may use funds in the Reserve for that purpose as well, without the necessity of
obtaining the signature of an officer of Lessee. Replenishment of amounts drawn
from the Reserve will be paid at the rate of one-twelfth (1/12th) of the total
amount withdrawn per month, until completely replenished. Lessee hereby grants
to Lessor a security interest in all monies deposited into the Reserve and
Lessee shall, as soon as practicable, execute all documents necessary for Lessor
to perfect its security interest in the Reserve. 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

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<PAGE>

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.

      9.4 SPECIAL RESERVE. Contemporaneously herewith, Lessor has reserved the
sum of Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00) (the
"Special Reserve") to be held by Lessor in an interest bearing account and which
Lessor agrees will be used to defray the costs of certain renovations to the
Leased Property as shall be disclosed by Lessee to Lessor. The account to which
such payments are made shall require the signature of an officer of Lessee and
Lessor to make withdrawals and the parties agree that such disbursements shall
be made pursuant to Lessee draw requests reasonably acceptable to Lessor. The
parties shall take all necessary actions to make such renovations as soon as
practicable following the date hereof. 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 such a default hereunder,
any amounts remaining in the Special Reserve, shall be paid by Lessor to Lessee
upon the earliest of (i) Lessor being satisfied in its sole discretion that the
existing skilled nursing beds have been or will be converted to long-term acute
care beds, (ii) the expiration of this Lease, or (iii) such other date as the
Lessor shall determine in its sole discretion. The parties acknowledge that each
disbursement of funds hereunder shall constitute a payment of additional
purchase price for purposes of calculating the Purchase Price Adjustment and the
corresponding adjustment to Base Rent.

                                   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 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

                                       21
<PAGE>

      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 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 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 Instruments, (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 Lessor and any Facility Lenders, 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

                                       22
<PAGE>

      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 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;

                                       23
<PAGE>

                  (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
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

                                       24
<PAGE>

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.

                                  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 reasonably necessary by the Lessor and as described
below. This insurance shall be written by insurance companies (i) reasonably
acceptable to the Lessor, (ii) that are rated at least an "A-VIII" 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.
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

                                       25
<PAGE>

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,
unless the Lessee provides to Lessor written confirmation and verification from
the insurer that such insurer will not subrogate against Lessor, an express
waiver by the insurer of any right of subrogation, setoff or counterclaim
against any insured party thereunder including Lessor (provided, however, that
if such insurance does not contain such waiver, Lessee shall use its best
efforts to obtain a policy which does contain such waiver, provided the same is
obtainable at commercially reasonable rates; and provided further, however, that
Lessee, to the extent it is able to obtain such waiver, shall not be required to
replace its existing insurance coverage until three (3) months following the
Commencement Date, (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
the event Lessee is unable to obtain such waiver of subrogation, Lessee shall
use its best efforts to secure from the insurance company its agreement that all
claims and disputes concerning insurance coverage for the Lessee's Personal
Property shall be deemed contractual disputes and all litigation and proceedings
in connection therewith shall be tried by jury in Jefferson County, Alabama. In
addition, the policies shall name as an additional insured all Facility Lenders,
if any, by way of a standard form of mortgagee's loss payable endorsement.
Lessee shall use its best efforts to secure from the insurance company its
agreement that any disputes regarding loss adjustment shall be deemed to be
contractual disputes and all litigation and proceedings in connection therewith
shall be tried by jury in Jefferson County, Alabama. Any loss adjustment shall
require the written consent of Lessor and each affected Facility Lender.
Evidence of insurance and/or Impositions shall be deposited with Lessor and, if
requested, with any Facility Lender. If any provision of any Facility Instrument
requires deposits of insurance to be made with such Facility Lender, Lessee
shall either pay to Lessor monthly the amounts required and Lessor shall
transfer such amounts to such Facility Lender or, pursuant to written direction
by Lessor, Lessee shall make such deposits directly with such Facility Lender.
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
      Fifty Thousand and 00/100 Dollars ($50,000.00) 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 Fifty Thousand and 00/100 Dollars ($50,000.00) or greater
      and that no claim at or in excess of Fifty Thousand and 00/100 Dollars
      ($50,000.00) 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 in amounts as may be customary for comparable properties in the
      geographic area of the Leased Property.

            (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 One
      Million and 00/100 Dollars ($1,000,000.00) per occurrence, bodily injury
      for injury or death of any one person and One

                                       26
<PAGE>

      Hundred Thousand and 00/100 Dollars ($100,000.00) for Property Damage for
      damage to or loss of the property of others, subject to a Fifteen Million
      and 00/100 Dollars ($15,000,000.00) annual aggregate policy limit for all
      Associated Facilities 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).

            (g) Umbrella liability insurance in the minimum amount of Five
      Million and 00/100 Dollars ($5,000,000.00) for each occurrence and
      aggregate combined single limit for all liability, with a Ten Thousand and
      00/100 Dollar ($10,000.00) self-insured retention for exposure not covered
      in underlying primary policies. The umbrella liability policy shall name
      in its underlying schedule the policies of professional liability,
      commercial general liability, garage keepers liability, automobile/vehicle
      liability and employer's liability under the workers compensation policy.

            (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 One Million and 00/100 Dollars
      ($1,000,000.00) per individual claim and Fifteen Million and 00/100
      Dollars ($15,000,000.00) annual aggregate policy limit for all Associated
      Facilities.

            (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. The parties agree to use their good
      faith efforts to explore the obtaining of insurance coverages that are
      more consistent with Lessor's standard requirements.

      13.2 ADDITIONAL INSURANCE. In addition to the insurance described above,
Lessee shall maintain such additional insurance as may be reasonably required
from time to time by any Facility Lender and shall further at all times maintain
adequate worker's compensation insurance coverage for all persons employed by
Lessee on the

                                       27
<PAGE>

Leased Property, in accordance with the requirements of applicable local, state
and federal law. Notwithstanding anything contained herein to the contrary,
Lessor shall not be prohibited from purchasing and maintaining such additional
insurance as it may determine, in its sole discretion, to be necessary to
protect its interest in the Leased Property. Lessee shall reimburse Lessor for
the actual cost of this additional insurance purchased and maintained by Lessor,
but only to the extent the coverage limits and endorsements of the additional
insurance is equal to or less than the coverage limits and endorsements of the
insurance maintained by Lessee under Section 13.1 hereof. Notwithstanding
anything contained herein to the contrary, any reimbursement amounts paid by
Lessee pursuant to this Section 13.2 shall not be included in the calculations
for the financial covenants set forth in Section 16.2 herein.

      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 Instruments.

      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

                                       28
<PAGE>

            (a) Any such blanket policy or policies are reasonably acceptable to
      and have been approved by the Lessor, which approval shall not be
      unreasonably withheld;

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

            (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 Lenders, 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 default, 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
      Fair Market Value Purchase Price of the Leased Property immediately prior
      to such damage or destruction, so long as such right to purchase is
      consistent with the terms of the Ground Lease, 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

                                       29
<PAGE>

      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) Except as provided in Section 14.7, 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 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 default, 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 Fair Market Value Purchase
      Price of the Leased Property immediately prior to such damage or
      destruction, so long as such right to purchase is consistent with the
      terms of the Ground Lease. 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 Lender if required) to be
      held in trust together with any other insurance proceeds for application
      to the cost of repair and restoration.

      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.

                                       30
<PAGE>

      14.7 DAMAGE NEAR END OF TERM. Notwithstanding any provisions of Sections
14.2 or 14.3 to the contrary, 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 party shall have the right to
terminate this Lease by giving notice to the other within thirty (30) 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. 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.

      14.10 PURCHASE OPTION SUBORDINATE TO FACILITY INSTRUMENT. Notwithstanding
any provision set forth in this Article XIV to the contrary, Lessee's purchase
rights as set forth in this Article XIV are and shall be subject to the terms,
conditions and provisions of the Ground Lease and subject, subordinate and
inferior to any Facility Instrument. This provision shall be self-operative.
However, any Facility Lender may from time to time request that such
subordination be evidenced by a separate written agreement. Within ten (10) days
following written request by Lessor or any Facility Lender, the Lessee shall
execute and deliver to Lessor or such Facility Lender a written agreement in
form and substance satisfactory to such Facility Lender and any applicable
rating agency. In the event Lessee fails or refuses to execute and deliver such
written agreement within such ten (10) day period, then, in addition to all
other remedies available at law or in equity, the Lessor shall be entitled to
terminate Lessee's purchase rights under this Article XIV upon delivery of five
(5) days' written notice to Lessee. In the event Lessee has not executed and
delivered to such Facility Lender and any applicable rating agency, if any, the
written agreement requested within such five (5) day period, then in such event,
Lessee's purchase rights under this Article XIV shall be deemed forfeited and of
no further force and effect.

                                   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.

                                       31
<PAGE>

      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 default, 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 (so long as such right is consistent
with the terms of the Ground Lease) the Leased Property from Lessor for a
purchase price equal to the Fair Market Value Purchase Price of the Leased
Property immediately prior to such partial Taking, in which event this Lease
shall terminate upon payment of the purchase 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 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 Lender, 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 Lenders, 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.

      15.8 PURCHASE OPTION SUBORDINATE TO FACILITY INSTRUMENT. Notwithstanding
any provision set forth in this Article XV to the contrary, Lessee's purchase
rights as set forth in this Article XV are and shall be subject to

                                       32
<PAGE>

the terms, conditions and provisions of the Ground Lease and subject,
subordinate and inferior to any Facility Instrument. This provision shall be
self-operative. However, any Facility Lender may from time to time request that
such subordination be evidenced by a separate written agreement. Within ten (10)
days following written request by Lessor or any Facility Lender, the Lessee
shall execute and deliver to Lessor or such Facility Lender a written agreement
in form and substance satisfactory to such Facility Lender and any applicable
rating agency. In the event Lessee fails or refuses to execute and deliver such
written agreement within such ten (10) day period, then, in addition to all
other remedies available at law or in equity, the Lessor shall be entitled to
terminate Lessee's purchase rights under this Article XV upon delivery of five
(5) days' written notice to Lessee. In the event Lessee has not executed and
delivered to such Facility Lender and any applicable rating agency, if any, the
written agreement requested within such five (5) day period, then in such event,
Lessee's purchase rights under this Article XV shall be deemed forfeited and of
no further force and effect.

                                  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 and such failure is not cured by Lessee within a
      period of twenty (20) days after receipt by Lessee of notice thereof from
      Lessor, 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

            (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.

                                       33
<PAGE>

            (e) if the Total Debt of Guarantors, determined collectively,
      exceeds the greater of (i) one hundred percent (100%) of the
      capitalization of the Guarantors (debt plus equity), determined
      collectively, or (ii) 4.5 times the twelve (12) months' total EBITDAR of
      the Guarantors, determined collectively, it being understood that the
      initial test period for these covenants shall begin with the month of July
      2006 and, on each testing date, these covenants shall be tested based upon
      results for the previous twelve (12) months, or

            (f) if the Leased Property experiences six (6) consecutive quarters
      of falling average daily census, or

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

            (h) 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

            (i) if Lessee abandons or vacates the Leased Property (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.

            (j) 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

            (k) 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 (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

            (l) 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

                                       34
<PAGE>

      thereof from Lessor (unless Lessee shall be contesting such lien or
      attachment in good faith in accordance with Article XII hereof), or

            (m) 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

            (n) if any of the representations or warranties made by Lessee or
      any of its affiliates 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

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

            (p) a default or event of default shall occur under the Lease
      Assignment, Purchase Agreement, Assignment of Rents and Leases, Security
      Agreement, Non-Competition Agreements 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

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

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.

      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:

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<PAGE>

                  (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 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

                                       36
<PAGE>

            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. The occurrence of any of
the following events (it being agreed that, with respect to the failures
described in sections (a) through (c) below, such failures must continue for two
(2) consecutive calendar quarters) shall constitute a default hereunder and
shall entitle Lessor to exercise the rights and remedies provided for herein:

      (a)   For the twelve (12) month periods ending June 30, 2006, September
            30, 2006 and December 31, 2006, (i) if Redding EBITDAR fails to
            equal or exceed forty percent (40%) of Redding Fixed Charges or (ii)
            if Redding EBITDAR fails to equal or exceed fifty percent (50%) of
            Redding Lease Payments.

      (b)   For the twelve (12) month period ending March 31, 2007, (i) if
            Redding EBITDAR fails to equal or exceed sixty percent (60%) of
            Redding Fixed Charges or (ii) if Redding EBITDAR fails to equal or
            exceed seventy-five percent (75%) of Redding Lease Payments.

      (c)   For the twelve (12) month period ending June 30, 2007, (i) if
            Redding EBITDAR fails to equal or exceed one hundred percent (100%)
            of Redding Fixed Charges, or (ii) if Redding EBITDAR fails to equal
            or exceed one hundred twenty percent (120%) of Redding Lease
            Payments.

      (d)   For the twelve (12) month period ending September 30, 2007 and for
            each of the twelve (12) month periods ending on each calendar
            quarter thereafter:

            (i)   if Combined EBITDAR fails to equal or exceed one hundred
                  twenty-five percent (125%) of Combined Fixed Charges, and such
                  failure continues for two (2) consecutive calendar quarters,
                  all based upon trailing twelve (12) month results; or

                                       37
<PAGE>

            (ii)  if Combined EBITDAR fails to equal or exceed one hundred fifty
                  percent (150%) of Combined Lease Payments, and such failure
                  continues for two (2) consecutive calendar quarters, all based
                  upon trailing twelve (12) month results.

      (e)   If Vibra Healthcare, LLC, Lessee or any other Guarantor causes, or
            fails to take any action which causes, a payment default or other
            material default with respect to any of its other leases or material
            loans agreements and such default is not cured within the cure
            periods provided for therein.

In the event of any such default, Lessor shall have the right to foreclose on
the interest of the Lessee and proceed with any remedy the Lessor deems
necessary, including, but not limited to, selling the Lessee's interest to a
third party. Upon the occurrence of any of the items set forth in Section 16.1
or this Section 16.2, Lessor may, in addition to any other available remedies,
at its option immediately and upon written notice to Lessee (a "Removal Notice")
require Lessee to cancel the Management Agreement and replace the Management
Company with a company of Lessor's choosing.

      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

                                       38
<PAGE>

all of Lessee's interest as lessee and rights and options to purchase fixtures,
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), 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 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, 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

                                       39
<PAGE>

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 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 has a right or option to purchase the Leased Property
from Lessor pursuant to any of the terms of this Lease, so long as such right or
option to purchase is not inconsistent with the terms, provisions and conditions
of the Ground Lease, 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.

                                       40
<PAGE>

                                  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.

                                   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

                                       41
<PAGE>

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 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

                                       42
<PAGE>

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. Notwithstanding
anything contained herein to the contrary, Lessor acknowledges that Lessee has
entered into that certain Interim Lease between Lessee, as landlord, and Ocadian
Care Centers, LLC, a California limited liability company, as tenant (the
"Ocadian Sublease"). In the event the Ocadian Sublease terminates before Lessee
obtains all licenses, permits and provider numbers necessary to operate the
Facility, then this Lease shall automatically terminate upon the termination of
the Ocadian Sublease. Lessor further acknowledges and agrees that in connection
with Lessee's proposed conversion of the Facility's existing skilled nursing
beds to long-term acute care beds, Lessee may enter into a sublease agreement
with Redding Specialty Hospital, LLC, which sublease shall be subject to
Lessor's approval, such approval not to be unreasonably withheld, conditioned or
delayed.

      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
Lender, 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 period, to such Facility Lender a written agreement in a form
reasonably acceptable to such Facility Lender 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 Lender that such
subtenants and sublessees will attorn to and recognize such Facility Lender 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,

                                       43
<PAGE>

      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 Guarantors and the operations
      performed in the Facility, prepared by a nationally recognized accounting
      firm or an independent certified public accounting firm 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, and

                  (iii) within forty-five (45) days after the end of each
      quarter, current financial statements of Lessee, the Guarantors 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 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
      Guarantors 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 applicable 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 is not in compliance with the
      Standards for Privacy of Individually Identifiable Health

                                       44
<PAGE>

      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 Guarantors and Combined Lessees, 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.

                                  ARTICLE XXVI

                                   INSPECTION

      Lessee shall permit Lessor's affiliate, MPT Development Services, 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. Lessee shall pay
to MPT Development Services on the Commencement Date and, as adjusted, on each
January 1 thereafter, an amount equal to Five Thousand and 00/100 Dollars
($5,000.00) to cover the cost of the physical inspections of the Leased
Property. Commencing on January 1, 2006, and continuing on January 1 of each
year thereafter throughout the Term of this Lease, the inspection fee to be paid
by Lessee to Lessor shall increase at a rate equal to two and one-half percent
(2.5%) per annum.

                                 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

                                       45
<PAGE>

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.

                                 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.

                                       46
<PAGE>

                                 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:    Northern California Rehabilitation Hospital, LLC
                             4550 Lena Drive Mechanicsburg, PA 17055
                             Attn: Mr. Brad E. Hollinger
                             Fax: (717) 591-5710

            with a copy to:  Deborah Myers Welsh, Esq.
                             4550 Lena Drive
                             Mechanicsburg, PA  17055
                             Fax: (717) 796-0361

            and a copy to:   Douglas C. Yohe, Esq.
                             Latsha Davis Yohe & McKenna, P.C.
                             1700 Bent Creek Boulevard, Suite 140
                             Mechanicsburg, PA  17050
                             Fax: (717) 620-2444

      (b)   if to Lessor:    MPT of Redding, 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.

                                       47
<PAGE>

                                 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, if any, 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 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

      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 (which shall mean current

                                       48
<PAGE>

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

                                 ARTICLE XXXVII

                        FINANCING OF THE LEASED PROPERTY

      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 Lender, within
ten (10) days from the date of request, Lessee shall execute and deliver within
such ten (10) day period, to such Facility Lender a written agreement in a form
reasonably acceptable to such Facility Lender whereby Lessee subordinates this
Lease and all of its rights and estate hereunder to each Facility Instrument
that encumbers the Leased Property or any part thereof and agrees with each such
Facility Lender that Lessee will attorn to and recognize such Facility Lender or
the purchaser at any foreclosure sale or any sale under a power of sale
contained in any such Facility Instrument, 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
Lender 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.

                                       49
<PAGE>

                                 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.

      Except for the proposed conversion of the Facility's existing skilled
nursing beds to long-term acute care beds as described in this Lease, 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.

                                       50
<PAGE>

      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
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 or such licenses and
Medicare and/or Medicaid Certifications for it to operate in accordance with the
Primary Intended Use; (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.

                                       51
<PAGE>

                                  ARTICLE XLI

                             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.

                                  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.

      42.3 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.

      42.4 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

                                       52
<PAGE>

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.

      42.5 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.

      42.6 LETTER OF CREDIT. Lessee shall obtain and deliver to Lessor an
unconditional and irrevocable letter of credit from a bank acceptable to Lessor
(the "Letter of Credit") naming Lessor beneficiary thereunder, in an amount
equal to three (3) months' Base Rent (the "LOC Amount") (estimated in the first
year of the Term to be approximately Four Hundred Seventy-Two Thousand Five
Hundred and No/100 Dollars ($472,500.00)) and upon terms, conditions and
provisions acceptable to Lessor. The parties acknowledge and agree that Lessee
contemporaneously herewith has made a cash deposit with Lessor in the LOC Amount
and such deposit is accepted in lieu of the Letter of Credit. At Lessee's
option, Lessee may obtain the Letter of Credit in the LOC Amount and, in such
event, Lessor shall release said cash deposit to Lessee. The parties acknowledge
that, in the event of a Purchase Price Adjustment and a corresponding increase
in Base Rent, the LOC Amount shall immediately increase and Lessee shall
increase the amount of the cash deposit or Letter of Credit accordingly.

      42.7 CHANGE IN OWNERSHIP/CONTROL. So long as this Lease remains in effect,
the aggregate ownership of the current members of Lessee shall not be reduced
without the prior written consent of Lessor. In addition, so long as this Lease
remains in effect, Brad E. Hollinger's ownership of Vibra Healthcare, LLC shall
not be reduced below the percentage he owns currently without the prior written
consent of Lessor.

      42.8 LESSOR SECURITIES OFFERING AND FILINGS. Notwithstanding anything
contained herein to the contrary, in connection with a public offering or the
private placement of securities of Lessor or MPT, or their efforts to obtain
financing for the Leased Property, Lessor and MPT may disclose that Lessor has
entered into this Lease with the Lessee respecting the Facility and the Leased
property and may provide and disclose other information regarding this Lease,
the Lessee, the Guarantors, the Leased Property, the Facility, the Commitment
Letter, and such other additional information which Lessor and MPT may
reasonably deem necessary, to its proposed investors in such public offering or
private offering of securities or any prospective lenders with respect to such
financing. Lessee shall cooperate with Lessor and MPT by providing financial and
other information reasonably requested by Lessor and MPT in connection with such
offering of securities or financing. 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.

      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, 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.

                                       53
<PAGE>

      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
as provided at the end of Section 16.2 of this Lease, (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 ]

                                       54
<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 REDDING, LLC

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

                        By:     /s/ Emmett E. McLean
                            ----------------------------------------------------
                        Name: Emmett E. McLean
                        Its: Executive Vice President, Chief Operating Officer
                             and Treasurer

                        LESSEE:

                        NORTHERN CALIFORNIA REHABILITATION
                        HOSPITAL, LLC

                        By: /s/ Brad E. Hollinger
                            ----------------------------------------
                        Name:   Brad E. Hollinger
                        Its:    President

<PAGE>

                                    EXHIBIT A

Parcels A and B as set forth and shown on that certain Map entitled, "Parcel Map
No. LS 104-78 for David Lee McGeorge and Shirley Jean McGeorge, as Co-Trustees
of Daves Mac., Inc. Profit Sharing Trust, being a portion of Tract E, Division 2
of the P.B. Reading Grant, in the City of Redding, Shasta County, California"
filed in the Office of the County Recorder, February 7, 1979, in Book 17 of
Parcel Maps at Page 87, Shasta County Records.

APN: 103-240-051

<PAGE>

                                    EXHIBIT B

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

2. An easement for water pipelines/overland flow of water and incidental
purposes, recorded May 10, 1938, as Book 2 of Rights of Way, Page 136, in favor
of the City of Redding, a municipal corporation.

3. An easement for right of way and incidental purposes, recorded January 30,
1957, as Book 520, Page 381, of Official Records, in favor of Northern
California Congregational Conference, a California corporation, affecting the
easterly 60 feet of Parcel B.

4. An easement for drain and sewer and incidental purposes, recorded July 22,
1975, in Book 1284, Page 460, of Official Records, in favor of the City of
Redding, a municipal corporation, affecting a 15 foot strip of land running
North/South through Parcel A.

5. An easement shown or dedicated on the map filed or recorded June 26, 1975, as
Book 6, Page 124 of Parcel Maps, for a proposed storm drain and sewer easement
over the Easterly 10 feet of Parcel A and the Westerly 5 feet of Parcel B and
incidental purposes.

6. An easement for utility and incidental purposes, recorded July 1, 1977, as
Book 1437, Page 420, of Official Records, in favor of the City of Redding, a
municipal corporation, affecting the most Southerly portion within Parcel A.

7. An easement shown or dedicated on the Map filed on February 7, 1979, in Book
17 of Parcel Maps at Page 87, for a proposed 15 foot utility easement (to be
dedicated); reciprocal driveway easement; pre-existing and rights of way; terms
and conditions as set forth in the notes and incidental purposes.

8. Covenants, conditions, restrictions and easements in the document recorded
March 5, 1979, as Book 1602, Page 106, of Official Records, 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 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.
Said restrictions recite, among other things: "Fast food restaurants are
prohibited on the herein described property."

<PAGE>

9. An easement for pedestrian trail and incidental purposes, recorded December
19, 1986, as Book 2278, Page 876, of Official Records, in favor of The Knolls, a
general partnership, affecting a 10 foot strip located within Parcel A.

10. The existing telephone vault and concrete pad as disclosed by off-record
information regarding an ALTA Survey under Job No. 1058.01.

11. An unrecorded lease dated November 12, 1997, executed by National Medical
Specialty Hospital of Redding, Inc., a California corporation, as lessor, and
Guardian Postacute Services, Inc., a California corporation, as lessee, as
disclosed by a Memorandum recorded November 12, 1997, as Instrument No.
1997-0038345 of Official Records.

12. A Deed of Trust to secure an original indebtedness of $37,000,000.00
recorded July 15, 2004, as Instrument # 2004-0040416 of Official Records;
Trustor: Shasta Regional Medical Center, LLC, a California limited liability
company, Trustee: Chicago Title Insurance Company, and Beneficiary: General
Electric Capital Corporation, a Delaware corporation.

13. A Deed of Trust (no amount shown) recorded July 15, 2004, as Instrument #
2004-0040417 of Official Records; Trustor: Shasta Regional Medical Center, LLC,
a California limited liability company, Trustee: Chicago Title Insurance
Company, and Beneficiary: Wellpoint Health Networks, Inc., a Delaware
corporation.

14. A Deed of Trust to secure an original indebtedness of $30,000,000.00
recorded July 15, 2004, as Instrument # 2004-0040418 of Official Records;
Trustor: Shasta Regional Medical Center, LLC, a California limited liability
company, Trustee: Chicago Title Insurance Company, and Beneficiary: General
Electric Capital Corporation, a Delaware corporation.

15. Rights of parties in possession.

16. Any facts, rights, interests or claims which would be disclosed by a current
ALTA/ACSM survey.

17. 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.

<PAGE>

                                    EXHIBIT C

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