Document:

Exhibit 10.12 

AMENDMENT AND RESTATEMENT
TO THE CREDIT AGREEMENT

This AMENDMENT AND
RESTATEMENT TO THE CREDIT AGREEMENT (this “Agreement”) is made as of February 7, 2013, by and among (i)
INTEGRATED HEALTHCARE HOLDINGS, INC., a Nevada corporation (“IHHI”), WMC-SA, INC., a California corporation
(“WMC-SA”), WMC-A, INC., a California corporation (“WMC-A”), CHAPMAN MEDICAL CENTER, INC.,
a California corporation (“Chapman”), COASTAL COMMUNITIES HOSPITAL, INC., a California corporation (“Coastal”
and together with IHHI, WMC-SA, WMC-A and Chapman, the “Borrowers”), PACIFIC COAST HOLDINGS INVESTMENT, LLC,
a California limited liability company (“PCHI”), and GANESHA REALTY, LLC, a California limited liability company
(“Ganesha”, and together with PCHI, the “Amendment Parties”) (ii) SPCP GROUP IV, LLC, a Delaware
limited liability company (“SP 1”), and SPCP Group, LLC, a Delaware limited liability company (“SP
2”), and (iii) SILVER POINT FINANCE, LLC, a Delaware limited liability company (“Silver Point”).

RECITALS

 

WHEREAS, (i) the Borrowers,
(ii) PCHI, ORANGE COUNTY PHYSICIANS INVESTMENT NETWORK, LLC, a Nevada limited liability company (“OC-PIN”) and
Ganesha (collectively, the “Credit Parties”; and OC-PIN may be referred to herein as the “Guarantor”),
(iii) SP 1 and SP 2 (each, an “Existing Lender” and collectively, the “Existing Lenders”)
and (iv) Silver Point (the “Lender Agent”) are parties to that certain Credit Agreement dated as of October
9, 2007 (as amended by Amendment No. 1 to Credit Agreement dated April 2, 2009 and the Acknowledgment, Waiver and Consent and Amendment
to Credit Agreements dated April 2, 2009, the Omnibus Credit Agreement Amendment dated as of April 13, 2010, Amendment to $80,000,000
Credit Agreement dated August 30, 2010, and Amendment No. 4 to Credit Agreement and Consent dated as of August 1, 2012, the “Existing
Credit Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit (by means of loans)
to be made, by the Existing Lenders to the Borrowers;

WHEREAS, the Borrowers have
advised the Lender Agent and the Existing Lenders that the Borrowers intend to repay in full all amounts outstanding under the
Existing Credit Agreement due solely to SP 1 on February 7, 2013 (the “SP 1 Payoff Date”) in connection with
the execution and delivery of this Agreement and the Restated Credit Agreement (as defined below), with the proceeds of additional
loans to be disbursed by SP 2 pursuant to the Restated Credit Agreement, and the Amendment Parties, the Lender Agent and the Existing
Lenders consent to such repayment;

 

WHEREAS, the Borrowers,
the Amendment Parties, the Lender Agent and SP 2 (the “Lender”) desire to amend the Existing Credit Agreement
in certain respects, including without limitation to extend the Maturity Date, modify the interest rate and increase the original
principal amount of the $45,000,000 Real Estate Term Loan (as defined in the Existing Credit Agreement) on the terms and conditions
set forth below;

WHEREAS, the Borrowers,
the Amendment Parties, the Lender Agent and the Lender have agreed that the Existing Credit Agreement shall, on the Restatement
Effective Date (as defined below), be amended and restated in the form attached hereto as Exhibit A (the “Restated
Credit Agreement”);

    	 

    	 

    

Accordingly, in consideration
of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, and subject to the conditions set forth herein, the parties hereto hereby agree as follows:

SECTION 1.Defined
Terms; Interpretation. Unless otherwise specified, capitalized terms used but not defined herein have the meanings assigned
to such terms in the Restated Credit Agreement. The rules of construction set forth in Annex A of the Restated Credit Agreement
are hereby incorporated by reference herein, mutatis mutandis.

SECTION 2.SP
1 Payoff.

(a)Each of
the Lender Agent and SP 1 confirms that the aggregate amount (the “SP 1 Payoff Amount”) as of the SP 1 Payoff
Date necessary to pay in full all amounts owing by the Borrowers to SP 1 under the Existing Credit Agreement and the other Loan
Documents (as defined in the Existing Credit Agreement) is $8,139,256.35 (consisting of (i) the principal amount of $8,119,633.90
and (ii) the interest amount of $19,622.45), subject to the same being paid by wire to, and confirmed received not later than 5:00
p.m. (New York time) on the SP 1 Payoff Date by, the Lender Agent in U.S. Dollars in immediately available funds to the account
of the Lender Agent. In the event the SP 1 Payoff Amount is not received by the time specified above on the SP 1 Payoff Date in
accordance with the terms of this Agreement the SP 1 Payoff Amount will be subject to adjustment.

 

(b)The
Borrowers and the Amendment Parties acknowledge and agree that (i) as of the Effective Time, SP 1 shall have no further obligation,
duty, liability or responsibility under the Existing Credit Agreement, any other Loan Document or any other document or agreement
executed and/or delivered in connection therewith (except as otherwise expressly provided herein and except for such obligations,
duties, liabilities or responsibilities that are otherwise expressly stated in the Existing Credit Agreement or any such Loan Document
as surviving that agreement’s or document’s termination, which in any such case shall, as so specified, survive without
prejudice and remain in full force and effect), (ii) if any payment at any time made to the Lender Agent or SP 1 on account of
the SP 1 Payoff Amount is ever avoided, rescinded, set aside or must otherwise be returned or repaid by the Lender Agent or SP
1, whether in bankruptcy, reorganization, insolvency or similar proceedings involving the Borrowers or the Amendment Parties or
otherwise, then such amount and the obligations and liability of the Borrowers and the Amendment Parties under the Existing Credit
Agreement and the other Loan Documents intended to be paid shall immediately be reinstated with full force and effect, without
need for any action by any person, and shall be enforceable against the Borrowers and the Amendment Parties and their successors
and assigns as if such payment had never been made, and (iii) forever releases and discharges SP 1 and its agents, officers, and
directors from any and all claims, suits or causes of action the Borrowers and the Amendment Parties may have against SP 1 or its
agents, officers and directors arising out of or relating to the Loan Documents.

(c)The
Existing Lenders and Lender Agent (i) acknowledge and agree that, as of the Effective Time, all indebtedness of the Borrowers and
the Amendment Parties to the SP 1 in respect of the Existing Credit Agreement and the other Loan Documents (as defined in the Existing
Credit Agreement) shall be fully paid and discharged; and (ii) consent to the repayment of the SP 1 Payoff Amount solely to SP
1 notwithstanding anything to the contrary in the Existing Credit Agreement or any other Loan Document.

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SECTION 3. Amendment
and Restatement of the Existing Credit Agreement. Effective on the Restatement Effective Date (as defined below), the
Existing Credit Agreement is hereby amended and restated to read in its entirety in the form of the Restated Credit Agreement attached
as Exhibit A hereto. From and after the effectiveness of such amendment and restatement, the terms “Agreement”,
“this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof” and words
of similar import, as used in the Restated Credit Agreement, shall, unless the context otherwise requires, refer to the Restated
Credit Agreement, and the term “Credit Agreement”, as used in the other Loan Documents, shall mean the Restated Credit
Agreement, as may be further amended, supplemented or otherwise modified from time to time. This Agreement shall constitute a “Loan
Document” under the Restated Credit Agreement.

SECTION 4. MidCap
Consent. Subject to the satisfaction of the conditions precedent specified in Section 6 below, but effective as of the date
hereof, Lender Agent, the Existing Lenders and the Lender consent, under the Existing Credit Agreement, the Restated Credit Agreement
and all other Loan Documents, to the increase in the aggregate available revolving commitments from $30,000,000 to $35,000,000
under the Credit and Security Agreement, dated as of August 30, 2010, among the Borrowers, MidCap Financial, LLC, as agent for
lenders, and lenders party thereto (the “MidCap Facility”), including without limitation Section 1.17
of the Existing Credit Agreement and Section 1.17 of the Restated Credit Agreement, and waive compliance by the Borrowers,
PCHI and Ganesha with the provisions of Section 1.4(b) of the Existing Credit Agreement and Section 1.4(b) of the
Restated Credit Agreement solely with respect to, and to effectuate, the increase in the aggregate available revolving commitments
from $30,000,000 to $35,000,000 under the MidCap Facility. For the avoidance of doubt, the consent hereunder is limited solely
to increasing the aggregate available revolving commitments from $30,000,000 to $35,000,000 and not to any other amendment of the
MidCap Facility that may require consent of Lender Agent and/or the Lender under the A/R Facility Intercreditor Agreement and the
Loan Documents.

SECTION 5.Representations
and Warranties. To induce the other parties hereto to enter into this Agreement, each Borrower and each Amendment Party hereby
represents and warrants with respect to itself to each Existing Lender and the Lender Agent that:

(a)The
execution, delivery and performance by the Borrowers and Amendment Parties of this Agreement: (i) are within such Person’s
power; (ii) have been duly authorized by all necessary corporate or limited liability company action; (iii) do not contravene
any provision of such Person’s bylaws or operating agreement; (iv) do not violate any law or regulation, or any order
or decree of any court or Governmental Authority; (v) do not conflict with or result in the breach or termination of, constitute
a default under or accelerate or permit the acceleration of any performance required by, any indenture, mortgage, deed of trust,
lease, agreement or other instrument, including without limitation the A/R Facility, to which such Person is a party or by which
such Person or any of its property is bound; and (vi) do not result in the creation or imposition of any Lien upon any of
the property of such Person other than those in favor of Lender Agent for the benefit of the Existing Lenders pursuant to the Loan
Documents. Each Borrower and each Amendment Party has obtained all required consents and approvals of all Persons including all
requisite Governmental Authorities, to the execution, delivery and performance of this Agreement. This Agreement has been duly
executed and delivered by each Borrower and each Amendment Party and constitutes a legal, valid and binding obligation of each
Borrower and Amendment Party enforceable against it in accordance with its terms, except as the enforceability of this Agreement
may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’ rights generally
and by general equitable principles.

    	3

    	 

    

(b)Except
as set forth on Schedule 5(b) hereto, each of the representations and warranties made by each Borrower and each Amendment
Party set forth in Section 3 of the Restated Credit Agreement is true and correct in all material respects (or if already
qualified by materiality, in all respects) on and as of the Restatement Effective Date as if made on and as of the Restatement Effective
Date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, such representation
or warranty shall be true and correct in all material respects (or if already qualified by materiality, in all respects) as of
such specific date).

(c)No
Default or Event of Default has occurred and is continuing as of the date hereof and as of the Restatement Effective Date.

SECTION 6.Conditions
Precedent; Effectiveness. As provided in Section 3 above, the amendment and restatement of the Existing
Credit Agreement contemplated hereby shall become effective, as of the date (the “Restatement Effective Date”)
and effective simultaneously with and as of the time of receipt by the Lender Agent of the SP 1 Payoff Amount in the manner
described above in Section 2 (“Effective Time”), upon which the following conditions precedent have been satisfied
(or waived by the Existing Lenders):

(a)Existing
Lenders shall have received reasonably satisfactory evidence that there shall have been no material adverse change in the business,
assets, properties, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of IHHI and
its Subsidiaries, taken as a whole, since September 30, 2012.

(b)On
the Restatement Effective Date, the following statements shall be true and the Lender Agent shall have received a certificate signed
by a duly authorized officer of the Borrowers and the Amendment Parties, dated the Restatement Effective Date, setting forth the
following:

(i)Except
as set forth on Schedule 3.12A to the Restated Credit Agreement, there is no pending or (to the knowledge of the Borrowers
or the Amendment Parties) threatened action or proceeding affecting the Borrowers or the Amendment Parties or any of their respective
Subsidiaries before any court, governmental agency or arbitrator that is reasonably likely to have a Material Adverse Effect.

(ii)Each
of the representations and warranties set forth in Sections 5(b) and (c) hereof.

(iii)No
event or circumstance shall have occurred that has or reasonably could be expected to have a Material Adverse Effect as to the
Borrowers and the Amendment Parties.

(c)The
Borrowers shall have paid to the Lender Agent on the Restatement Effective Date:

(i) the
SP 1 Payoff Amount for the benefit of SP 1 from the proceeds of the Loans to be disbursed under the Restated Credit Agreement,

(ii) the
repurchase price in an aggregate amount equal to $840,868.25, to SP 1 pursuant to the Repurchase Agreement (as defined below) from
the proceeds of the Loans to be disbursed under the Restated Credit Agreement, and

    	4

    	 

    

(iii) all
reasonable and documented invoiced fees and expenses of the Lender Agent and the Existing Lenders (including the reasonable and
documented invoiced fees and expenses of counsel to the Lender Agent).

(d)The
Lender Agent shall have received on or before the Restatement Effective Date the following in form and substance reasonably satisfactory
to the Lender Agent and in sufficient copies for the Lender:

(i)A copy
of the articles of incorporation for each Borrower and a copy of the articles of organization for each Amendment Party, certified
by the Secretary of State for the state of incorporation or organization dated as of a recent date reasonably satisfactory to the
Lender Agent prior to the Restatement Effective Date.

(ii)A certificate
of good standing issued by the applicable state of incorporation or organization for each Borrower and each Amendment Party, certified
by the Secretary of State for the state of incorporation or organization dated as of a recent date reasonably satisfactory to the
Lender Agent prior to the Restatement Effective Date.

(iii)The
bylaws or operating agreement for each Borrower and each Amendment Party, certified to be true and accurate by the corporate secretary
of each Borrower and by the manager of each Amendment Party.

(iv)An incumbency
certificate (officers and directors, or managers and members) for each Borrower and each Amendment Party, certified to be true
and accurate by the corporate secretary of each Borrower and by the manager of each Amendment Party.

(v)The resolutions
duly adopted by the board of directors of each Borrower and the resolutions duly adopted by all managers of each Amendment Party,
authorizing the transactions set forth in this Agreement.

(vi)A favorable
opinion of counsel licensed to practice law and in good standing in the State of California for PCHI, Ganesha, WMC-A, WMC-SA, Coastal
and Chapman, addressed to the Lender Agent and the Existing Lenders, dated as of the Restatement Effective Date and in form and
substance reasonably satisfactory to the Lender Agent.

(vii)A favorable
opinion of counsel licensed to practice law and in good standing in the State of Nevada for IHHI, addressed to the Lender Agent
and the Existing Lenders, dated as of the Restatement Effective Date and in form and substance reasonably satisfactory to the Lender
Agent.

(viii)The
Lender Agent shall have received from each Borrower and each Amendment Party the results of recent UCC searches with respect to
each Borrower and each Amendment Party, which are reasonably satisfactory to the Lender Agent.

(e)The
Lender Agent (and its counsel) shall have received from each Borrower and each Amendment Party either (i) a counterpart of
this Agreement signed on behalf of such party or (ii) written evidence reasonably satisfactory to the Lender Agent (which
may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement.

    	5

    	 

    

(f) The
Lender Agent (and its counsel) shall have received from each Borrower and each Amendment Party (i) a counterpart of the Confirmation
attached as Exhibit B hereto (the “Confirmation”) signed on behalf of such party or (ii) written
evidence reasonably satisfactory to the Lender Agent (which may include telecopy transmission of a signed signature page of the
Confirmation) that such party has signed a counterpart of the Confirmation.

(g)The
Lender Agent (and its counsel) shall have received from IHHI (i)  Amendment No. 1 to the Common Stock Warrant for SPCP Group,
LLC attached as Exhibit C-1 hereto, Amendment No. 1 to the Common Stock Warrant for KPC Resolution Company, LLC attached
as Exhibit C-2 hereto and Amendment No. 1 to the Common Stock Warrant for Kali P. Chaudhuri, M.D. attached as Exhibit
C-3 hereto (together, the “Warrant Amendments”) signed on behalf of such party or (ii) written evidence
reasonably satisfactory to the Lender Agent (which may include telecopy transmission of a signed signature page of each Warrant
Amendment) that such party has signed a counterpart of each of the Warrant Amendments.

(h)Contemporaneously
herewith, IHHI shall have purchased the Common Stock Warrant from SPCP Group IV, LLC pursuant to the terms of the Warrant Repurchase
Agreement attached as Exhibit D hereto (the “Repurchase Agreement”).

 

(i)Upon consummation
of the repurchase of the Common Stock Warrant pursuant to the Repurchase Agreement, the Lender Agent (and its counsel) shall have
received from IHHI the Common Stock Warrant for SPCP Group, LLC attached as Exhibit E hereto signed on behalf of such party.

 

SECTION 7.Amendments;
Waivers. This Agreement may be amended, waived, modified or supplemented only by written agreement signed by each Borrower,
each Amendment Party, the Lender and the Lender Agent.

SECTION 8.Notices.
All notices hereunder shall be given in accordance with the provisions of Section 11.12 of the Restated Credit Agreement.

SECTION 9.Headings.
The Section headings used herein are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

SECTION 10.Effect
of Amendment. Except as expressly set forth in this Agreement, this Agreement shall not by implication or otherwise limit,
impair, constitute a waiver of, or otherwise affect, the rights, remedies, powers or privileges of Lender Agent or any Lender under
the Existing Credit Agreement or any other Loan Documents, and shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any other Loan Documents, all of
which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing contained in this Agreement
shall be deemed to entitle the Borrowers or the Amendment Parties to a consent to, or a waiver, amendment, modification or other
change of, any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any
other Loan Documents in similar or different circumstances.

    	6

    	 

    

SECTION 11. Release.
Each Borrower and each Amendment Party voluntarily, knowingly, unconditionally and irrevocably, with specific and express intent,
for and on behalf of itself and all of its respective parents, subsidiaries, affiliates, members, managers, predecessors, successors,
and assigns, and each of their respective current and former directors, officers, shareholders, agents, and employees (collectively,
“Releasing Parties”), does hereby fully and completely release, acquit and forever discharge the Lender Agent,
each Existing Lender, their respective successors and assigns and each of their respective affiliates, subsidiaries, predecessors,
directors, officers, partners, attorneys, employees, agents and representatives (collectively referred to as the “Releasees”)
of and from any and all actions, causes of action, suits, debts, disputes, damages, claims, obligations, liabilities, costs, expenses
and demands of any kind whatsoever, at law or in equity, whether matured or unmatured, liquidated or unliquidated, vested or contingent,
choate or inchoate, known or unknown that the Releasing Parties (or any of them) has against the Releasees or any of them (whether
directly or indirectly). Each Borrower and each Amendment Party acknowledges that the foregoing release is a material inducement
to Lender Agent’s and Existing Lenders’ decision to enter into this Agreement and to agree to the modification made
contemplated hereunder.

 

SECTION 12.Miscellaneous.
This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument
and any of the parties to this Agreement may execute this Agreement by signing any such counterpart. Facsimile and electronically
copied signatures on this Agreement shall be deemed the equivalent of original signatures. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement shall be governed
by, and construed in accordance with, the law of the State of Nevada.

 

[Remainder of this page intentionally
left blank]

    	7

    	 

    

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year
first written above.

 

	 	
        EXISTING LENDER:

         

        SPCP Group
        IV, LLC,

        a Delaware limited liability company

         

        By: Silver Point C&I Opportunity GP, LLC,
	 
	 	 	 	 
	 	By:	/s/ Michael A. Gatto	 
	 	Name: 	Michael A. Gatto	 
	 	Title: 	Authorized Signatory	 
	 	 	 	 

 

	 	
        EXISTING LENDER AND LENDER:

         

        SPCP Group,
        LLC,

        a Delaware limited liability company
	 
	 	 	 	 
	 	By:	/s/ Michael A. Gatto	 
	 	Name: 	Michael A. Gatto	 
	 	Title: 	Authorized Signatory	 
	 	 	 	 

 

	 	
        LENDER AGENT:

         

        SILVER POINT FINANCE, LLC,

        a Delaware limited liability company
	 
	 	 	 	 
	 	By:	/s/ Michael A. Gatto	 
	 	Name: 	Michael A. Gatto	 
	 	Title: 	Authorized Signatory	 

 

 

[Signature Page to Amendment and Restatement
to Credit Agreement]

 

 

    	8

    	 

    

 

	 	
        BORROWERS:

         

        INTEGRATED HEALTHCARE HOLDINGS, INC., a Nevada
        corporation
	 
	 	 	 	 
	 	By:	/s/ Kenneth K. Westbrook	 
	 	Name: 	Kenneth K. Westbrook	 
	 	Title: 	CEO	 
	 	 	 	 

 

	 	WMC-A, INC., a California corporation	 
	 	 	 	 
	 	By:	/s/ Kenneth K. Westbrook	 
	 	Name: 	Kenneth K. Westbrook	 
	 	Title: 	CEO	 
	 	 	 	 

 

	 	WMC-SA, INC., a California corporation	 
	 	 	 	 
	 	By:	/s/ Kenneth K. Westbrook	 
	 	Name: 	Kenneth K. Westbrook	 
	 	Title: 	CEO	 
	 	 	 	 

 

	 	COASTAL COMMUNITIES HOSPITAL, INC., a California corporation	 
	 	 	 	 
	 	By:	/s/ Kenneth K. Westbrook	 
	 	Name: 	Kenneth K. Westbrook	 
	 	Title: 	CEO	 
	 	 	 	 

 

	 	CHAPMAN MEDICAL CENTER, INC., a California corporation	 
	 	 	 	 
	 	By:	/s/ Kenneth K. Westbrook	 
	 	Name: 	Kenneth K. Westbrook	 
	 	Title: 	CEO	 
	 	 	 	 

 

[Signature Page to Amendment and Restatement
to Credit Agreement]

 

    	9

    	 

    

 

	 	
        AMENDMENT PARTIES:

         

        PACIFIC COAST HOLDINGS INVESTMENT, LLC, a California
        limited liability company
	 
	 	 	 	 
	 	By:	/s/ Jacob Sweidan	 
	 	Name: 	Jacob Sweidan, M.D.	 
	 	Title: 	Co-Manager	 
	 	 	 	 
	 	By:	/s/ Kali P. Chaudhuri	 
	 	Name: 	Kali M. Chaudhuri, M.D.	 
	 	Title: 	Co-Manager	 

 

 

	 	
        ganesha
        realty, llc, a California

        limited liability company
	 
	 	 	 	 
	 	By:	/s/ Kali P. Chaudhuri	 
	 	Name: 	Kali M. Chaudhuri, M.D.	 
	 	Title: 	Manager	 

 

 

 

 

 

 

 

[Signature Page to Amendment and Restatement
to Credit Agreement]

 

 

    	10

    	 

    

Exhibit A

 

Restated Credit Agreement

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	i

    	 

    

AMENDED AND
RESTATED CREDIT AGREEMENT

($47,277,000 TERM LOAN)

Originally dated as of October 9, 2007
and

Amended and Restated on February 7, 2013

among

INTEGRATED HEALTHCARE HOLDINGS, INC.,

WMC-A, INC.,

WMC-SA, INC.,

CHAPMAN MEDICAL CENTER, INC., and

COASTAL COMMUNITIES HOSPITAL, INC.,

as Borrowers,

THE CREDIT PARTIES SIGNATORY HERETO,

as Credit Parties,

THE GUARANTORS SIGNATORY HERETO,

as Guarantors,

and

SPCP GROUP LLC,

as Lender

and

SILVER POINT FINANCE, LLC

as Lender Agent.

 

 

    	ii

    	 

    

TABLE OF CONTENTS

	 	 	 	Page
	1.	AMOUNT AND TERMS OF CREDIT FACILITIES	3
	 	1.1	Term Loan.	3
	 	1.2	Use of Proceeds	3
	 	1.3	[Intentionally Omitted.]	3
	 	1.4	Prepayments	3
	 	1.5	Interest; Payments	6
	 	1.6	Maximum Lawful Rate of Interest	7
	 	1.7	Cash Management System	7
	 	1.8	[Intentionally Omitted.]	7
	 	1.9	[Intentionally Omitted.]	7
	 	1.10	Certain Notices	7
	 	1.11	Receipt of Payments	7
	 	1.12	Loan Account	8
	 	1.13	Access	8
	 	1.14	Taxes	9
	 	1.15	Capital Adequacy; Increased Costs; Illegality	9
	 	1.16	Single Loan	10
	 	1.17	A/R Financing	10
	 	 	 
	2.	CONDITIONS PRECEDENT	10
	 	2.1	Conditions Precedent to the Closing Date	10
	 	2.2	Further Conditions Precedent to Making Loans; Further Conditions Precedent to Funding Advances	18
	 	2.3	Place of Closing; Delivery of Loan Documents to Closing Date Lender; Deposits Into Escrow; Close of Escrow; Distribution of Funds and Documents	20
	 	 	 
	3.	REPRESENTATIONS AND WARRANTIES	27
	 	3.1	Borrowers and Credit Parties.	28
	 	3.2	Power, Authorization, Enforceable Obligations	30
	 	3.3	Financial Statements and Projections	30
	 	3.4	Material Adverse Effect.	31
	 	3.5	Ownership of Collateral; Liens	32
	 	3.6	Labor Matters	32
	 	3.7	Ventures, Subsidiaries and Affiliates; Outstanding Stock	33
	 	3.8	Government Regulation	33
	 	3.9	Margin Regulations	33
	 	3.10	Taxes	34
	 	3.11	ERISA	34
	 	3.12	No Litigation	35
	 	3.13	Brokers	35
	 	3.14	Intellectual Property	35
	 	3.15	Full Disclosure	35
	 	3.16	Environmental Matters	36
	 	3.17	Insurance	37
	 	3.18	Deposit and Disbursement Accounts	37
	 	3.19	Vendor Relations	37
	 	3.20	Bonding; Licenses; Permits	37
	 	3.21	Solvency	37

 

    	iii

    	 

    

 

	4.	FINANCIAL STATEMENTS AND INFORMATION	38
	 	4.1	Reports and Notices	38
	 	4.2	Communication with Accountants	38
	 	 	 
	5.	AFFIRMATIVE COVENANTS	38
	 	5.1	Maintenance of Existence and Conduct of Business	38
	 	5.2	Payment of Charges.	38
	 	5.3	Books and Records	39
	 	5.4	Insurance; Damage to or Destruction of Collateral.	39
	 	5.5	Compliance with Applicable Laws	40
	 	5.6	Supplemental Disclosure	40
	 	5.7	Intellectual Property	41
	 	5.8	Environmental Matters	41
	 	5.9	Landlord Agreements	42
	 	5.10	Further Assurances	42
	 	5.11	Qualified Cash	42
	 	5.12	Operation of Business	42
	 	5.13	After-Acquired Property; Acquisition of other Real Property Interests	42
	 	5.14	Observer Status on Borrower’s Board of Directors	42
	 	5.15	Independent Directors	43
	 	5.16	Financial Reports, Notices and Other Information	43
	 	 	 
	6.	NEGATIVE COVENANTS	45
	 	6.1	Mergers, Subsidiaries, Etc	45
	 	6.2	Investments; Line of Credit Loan and Advances	45
	 	6.3	Indebtedness	45
	 	6.4	Employee Loans and Affiliate Transactions	46
	 	6.5	Capital Structure and Business	46
	 	6.6	Guaranteed Indebtedness	46
	 	6.7	Liens	46
	 	6.8	Sale of Collateral and Intellectual Property	46
	 	6.9	ERISA	46
	 	6.10	Hazardous Materials	47
	 	6.11	Restricted Payments.	47
	 	6.12	Change of Corporate Name, State of Organization or Location; Change of Fiscal Year	47
	 	6.13	No Impairment of Intercompany Transfers	47
	 	6.14	[Intentionally Omitted.]	47
	 	6.15	Dr. Shah	47
	 	6.16	Shareholder Blocking Rights	48
	 	6.17	Financial Covenants.	48

 

 

    	iv

    	 

    

 

	7.	TERM	50
	 	7.1	Termination	50
	 	7.2	Survival of Obligations Upon Termination of Financing Arrangements	51
	 	 	 
	8.	EVENTS OF DEFAULT; REMEDIES	51
	 	8.1	Events of Default	51
	 	8.2	Remedies	55
	 	8.3	Waivers	56
	 	 	 
	9.	ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF LENDER	56
	 	9.1	Assignment and Participations.	56
	 	9.2	Reliance, Etc	57
	 	 	 
	10.	SUCCESSORS AND ASSIGNS	58
	 	 	 
	11.	MISCELLANEOUS	58
	 	11.1	Complete Agreement; Modification of Agreement	58
	 	11.2	Amendments and Waivers.	58
	 	11.3	Fees and Expenses	59
	 	11.4	No Waiver	60
	 	11.5	Remedies	61
	 	11.6	Severability	61
	 	11.7	Conflict of Terms	61
	 	11.8	Attorneys’ Fees; Indemnification	61
	 	11.9	Time of the Essence	61
	 	11.10	Confidentiality	62
	 	11.11	GOVERNING LAW.	62
	 	11.12	Notices	63
	 	11.13	Section Titles	63
	 	11.14	Counterparts	63
	 	11.15	WAIVER OF JURY TRIAL	64
	 	11.16	Press Releases and Related Matters	64
	 	11.17	Reinstatement	64
	 	11.18	Advice of Counsel	65
	 	11.19	No Strict Construction	65
	 	11.20	Limitation on Each Borrower’s and Each Credit Party’s Liability	65
	 	11.21	Lender Agent	65
	 	 	 
	12.	[Intentionally Omitted.]	66
	 	 	 
	13.	SURETYSHIP WAIVERS	66
	 	13.1	Suretyship Waivers	66
	 	13.2	Election of Remedies	69

 

 

    	v

    	 

    

INDEX OF ANNEXES, EXHIBITS AND DISCLOSURE
SCHEDULES

	ANNEXES	 
	Annex A	Definitions
	Annex B	Cash Management System
	Annex C	Collateral Reports
	Annex D	Notice Addresses
	Annex E	Fixed Charge Coverage Ratio Worksheet
	EXHIBITS	 
	Exhibit “A”	Form of Term Note
	Exhibit “B”	[Intentionally Omitted]
	Exhibit “C”	[Intentionally Omitted]
	Exhibit “D”	Form of Notice of Request for Advance
	Exhibit “E”	Form of Deed of Trust
	Exhibit “F”	Form of Absolute Assignment
	Exhibit “G”	Form of Security Agreement
	Exhibit “H”	Form of Collateral Assignment of Contracts
	Exhibit “I”	Form of Deposit Account Security Agreement
	Exhibit “J”	Form of Control Agreement
	Exhibit “K”	Form of Post-Closing Agreement
	Exhibit “L”	Form of Intellectual Property Security Agreement
	Exhibit “M”	Form of Environmental Indemnity Agreement
	Exhibit “N”	Form of Guaranty Agreement
	Exhibit “O”	Form of Intercreditor Agreement
	Exhibit “P”	Form of Pledge Agreement
	Exhibit “Q”	Form of Stock Power
	Exhibit “R”	Form of Membership Power
	Exhibit “S”	Form of Landlord’s Consent and Estoppel Certificate (Chapman Leases)
	Exhibit “T”	Form of Landlord’s Consent and Estoppel Certificate (Triple Net Lease)
	Exhibit “U”	Form of Warrant

    	vi

    	 

    

	DISCLOSURE SCHEDULES	 
	Disclosure Schedule 2.1(b)	Required Consents and Approvals
	Disclosure Schedule 2.1(c)	Capital Structure of Each Borrower
	Disclosure Schedule 3.1	Executive Office, Collateral Locations, FEIN
	Disclosure Schedule 3.5	Schedule of Real Estate Owned and Leased
	Disclosure Schedule 3.6	Labor Matters
	Disclosure Schedule 3.7	Ventures, Subsidiaries and Affiliates; Outstanding Stock
	Disclosure Schedule 3.10	Taxes
	Disclosure Schedule 3.11	ERISA Plans
	Disclosure Schedule 3.12	Litigation
	Disclosure Schedule 3.13	Brokers
	Disclosure Schedule 3.14	Intellectual Property
	Disclosure Schedule 3.16	Environmental Matters
	Disclosure Schedule 3.17	Insurance (With Copies of All Certificates of Insurance)
	Disclosure Schedule 3.18	Deposit and Disbursement Accounts
	Disclosure Schedule 3.20	Bonding; Licenses; Permits
	Disclosure Schedule 6.3	Indebtedness
	Disclosure Schedule 6.4	Transactions with Affiliates and Employees
	Disclosure Schedule 6.7	Existing Liens.

 

 

    	vii

    	 

    

AMENDED AND RESTATED CREDIT AGREEMENT

($47,277,000 Term Loan)

This AMENDED AND
RESTATED CREDIT AGREEMENT (“Agreement”), dated as of February 7, 2013, is made by and among INTEGRATED
HEALTHCARE HOLDINGS, INC., a Nevada corporation (“IHHI”), WMC-A, INC., a California corporation (“WMC-A”),
WMC-SA, INC., a California corporation (“WMC-SA”), CHAPMAN MEDICAL CENTER, INC., a California corporation (“Chapman”),
and COASTAL COMMUNITIES HOSPITAL, INC., a California corporation (“Coastal”) (IHHI, WMC-A, WMC-SA,
Chapman and Coastal are hereinafter together referred to as “Borrowers” and individually as a “Borrower”);
PACIFIC COAST HOLDINGS INVESTMENT, LLC, a California limited liability company (“PCHI”); ORANGE COUNTY PHYSICIANS
INVESTMENT NETWORK, LLC, a Nevada limited liability company (“OC-PIN”); GANESHA REALTY, LLC, a California
limited liability company (“Ganesha”, and together with PCHI and OC-PIN, the “Credit Parties”
and individually as a “Credit Party”; and OC-PIN and PCHI are hereinafter together referred to as the “Guarantors”
and individually as a “Guarantor”); and SPCP GROUP, LLC, a Delaware limited liability company (together
with its permitted successors and assigns, the “Lenders”), and SILVER POINT FINANCE, LLC, a Delaware limited
liability company, as Lender Agent (“Silver Point” or “Lender Agent”). Initially capitalized
terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to them in Annex A.

RECITALS

PCHI owns the fee
simple title in the Western Medical Center - Anaheim, in the Western Medical Center - Santa Ana, and in the Coastal Communities
Hospital (including the medical office buildings located thereon). PCHI leases the Western Medical Center — Anaheim, the
Western Medical Center – Santa Ana, and the Coastal Communities Hospital (including the medical office buildings located
thereon) to IHHI pursuant to the Triple Net Lease. IHHI subleased the Western Medical Center - Anaheim to WMC-A; IHHI subleased
the Western Medical Center - Santa Ana to WMC-SA; and IHHI subleased the Coastal Communities Hospital (including the medical office
buildings located thereon) to Coastal. IHHI owns all (100%) of the Stock of WMC-A, WMC-SA and Coastal.

IHHI leases the
Hospital Facility and the related medical office buildings located at the Chapman Medical Center from the Hospital Landlord and
from the MOB Landlord pursuant to the Chapman Leases. IHHI subleased the Hospital Facility and the related medical office buildings
to Chapman. IHHI owns all (100%) of the Stock of Chapman.

OC-PIN is a Shareholder
of IHHI.

IHHI, WMC-A, WMC-SA,
Coastal and Chapman are in the business of delivering acute care services to the public through the acute care Hospital Facilities;
incident thereto, IHHI, WMC-A, WMC-SA, Coastal and Chapman are in the business of owning, operating and/or leasing medical office
buildings and other healthcare businesses related thereto.

    	1

    	 

    

IHHI, WMC-A, WMC-SA,
Chapman, and Coastal, as borrowers, PCHI, Ganesha, West Coast, and OC-PIN, as the credit parties, the several lenders from time
to time party thereto and Medical Provider Financial Corporation III, as lender agent were parties to that certain Credit Agreement
dated as of October 9, 2007 (as amended, restated, supplemented or otherwise modified from time to time, the “$10,700,000
Credit Agreement”) that provided, subject to the terms and conditions thereof, for loans made by the lenders party thereto
to the borrowers party thereto in an aggregate principal of $10,700,000.

IHHI, WMC-A, WMC-SA,
Chapman, and Coastal, as borrowers, PCHI, Ganesha, West Coast, and OC-PIN, as the credit parties, the several lenders from time
to time party thereto and Medical Provider Financial Corporation I, as lender agent were parties to that certain Credit Agreement
dated as of October 9, 2007 (as amended, restated, supplemented or otherwise modified from time to time, the “$50,000,000
Credit Agreement”), that provided, subject to the terms and conditions thereof, for extensions of credit (by means of
loans) made by the lenders party thereto to the borrowers party thereto in an aggregate principal or face amount not exceeding
$50,000,000.

Pursuant to the
payoff letter dated as of August 30, 2010 among Silver Point, as successor lender agent, IHHI, WMC-A, WMC-SA, Chapman, and Coastal,
as borrowers, PCHI, and Ganesha, the loans and all other obligations of the borrowers and the credit parties under the $10,700,000
Credit Agreement, the $50,000,000 Credit Agreement, and the $35,000,000 Non-Revolving Line of Credit Loan have each been paid in
full and all unfunded commitments thereunder terminated, and the $10,700,000 Credit Agreement, the $50,000,000 Credit Agreement,
all provisions relating to the $35,000,000 Non-Revolving Line of Credit Loan in this Agreement and the Intercreditor Agreement
were terminated. The references to such loans, obligations, agreements and provisions set forth in this Agreement and the other
Loan Documents are historic and have no binding force or effect on the Borrowers or the Credit Parties.

The parties hereto
desire to amend the Original Credit Agreement in certain respects (including, without limitation, to extend the Maturity Date (as
defined in the Original Credit Agreement) and increase the facility amount) by restating the Original Credit Agreement in its entirety.

All Annexes, Disclosure
Schedules, Exhibits and other attachments, or documents expressly identified to this Agreement, are incorporated herein by reference,
and taken together with this Agreement, shall constitute but a single agreement. These Recitals shall be construed as part of the
Agreement.

AGREEMENT

NOW, THEREFORE,
in consideration of the covenants and conditions hereinafter contained, and for other good and valuable consideration the receipt
and sufficiency of which is hereby acknowledged, Borrowers, Lenders, Lender Agent, Credit Parties and Guarantors agree as follows:

    	2

    	 

    

		1.	AMOUNT AND TERMS OF CREDIT FACILITIES

1.1Term Loan.
(a) Lenders made the aggregate principal amount of $45,000,000 available to Borrowers on the Closing Date. Pursuant to Amendment
No. 4 to Credit Agreement and Consent dated as of August 1, 2012, the aggregate principal amount of the Loans was increased to
$46,350,000. SPCP Group IV, LLC, as Lender under the Original Credit Agreement, simultaneously with the effectiveness of this Agreement,
is being repaid in full in the aggregate amount of $8,139,256.35 as of the Restatement Effective Date ($8,119,633.90 on account
of principal and $19,622.45 on account of interest), and SPCP Group, LLC’s aggregate commitment to make Loans, simultaneously
with the effectiveness of this Agreement, is being increased by an amount of $9,046,633.90 (the “Restatement Increase
Amount”), such increase being made available as of the Restatement Effective Date. After the borrowing of the Restatement
Increase Amount, as of the Restatement Effective Date, the aggregate principal amount of the Existing Real Estate Term Loans is
$47,277,000. All Existing Real Estate Term Loans shall remain outstanding as of the Restatement Effective Date and shall be “Loans”
for all purposes of this Agreement and the other Loan Documents.

(b)On the Restatement
Effective Date, SPCP Group, LLC, as Lender, which holds an Existing Real Estate Term Note shall be entitled to continue such Existing
Real Estate Term Note; provided that at the Lender’s option such Lender’s Existing Real Estate Term Note may
be exchanged for a new Term Note in the form of Exhibit “A” attached
hereto. The Term Note represents the obligation of Borrowers, jointly and severally, individually and collectively, to repay the
Loan to Lenders. During the term of the Term Note, Borrowers shall not be required to make any payments of principal, however,
Borrowers shall pay interest to Lenders on the entire principal balance outstanding from time to time, in arrears, on each applicable
Interest Payment Date, at the Interest Rate applicable to the Loan, and the entire balance of unpaid principal, plus all accrued
but unpaid interest thereon and all other non-contingent Obligations due and owing thereunder, shall be due and payable in full
in a single payment in immediately available funds, on the Maturity Date.

1.2Use
of Proceeds. Borrowers shall utilize the proceeds of the Restatement Increase Amount (a) to repay the amounts owing by the
Borrowers to SPCP Group IV, LLC under the Original Credit Agreement, (b) to repurchase the warrant previously issued by IHHI to
SPCP Group IV, LLC pursuant to the Repurchase Agreement, and (c) for working capital and general corporate purposes of Borrowers.

1.3[Intentionally
Omitted.]

1.4Prepayments.

(a)Voluntary
Prepayments. Borrowers may prepay all, but not less than all, Loan at any time; provided that the Borrowers shall pay
to the Lender Agent, for the ratable account of each Lender, (A) a prepayment premium of 5.0% of the principal amount of the Loan
being prepaid in the case of a voluntary prepayment made on or prior to December 31, 2013 and (B) a prepayment premium of 2.0%
of the principal amount of the Loan being prepaid in the case of a voluntary prepayment made on or after January 1, 2014 and on
or prior to December 31, 2014.

    	3

    	 

    

(b)Mandatory
Prepayments. Notwithstanding the foregoing, (i) immediately upon receipt by Borrowers or Credit Parties of any cash proceeds
of any sale or other disposition of any Collateral, Borrowers shall (or, without limiting the obligation of the Borrowers to make
such payment, may cause the Credit Party receiving such cash proceeds to) prepay the Loans in an amount equal to all such proceeds,
net of (A) commissions and other reasonable and customary transaction costs, fees and expenses properly attributable to such transaction
and payable by Borrowers in connection therewith (in each case, paid to non-Affiliates), (B) transfer taxes, and (C) an appropriate
reserve for income taxes; and (ii) immediately upon receipt by Borrowers or Credit Parties of any payment or reimbursement of enhanced
federal matching funds, net of: provider fees, pledged funds due to the California Health Foundation & Trust and estimated
federal and state taxes on such net funds (assuming a marginal blended tax rate of 40%) received from Medi-Cal upon implementation
of California AB1383 (or any substitute, replacement or successor legislation or payments) (“Net QAF Funds”),
Borrowers shall prepay any outstanding principal amounts under the A/R Facility in an amount equal to 80% of such Net QAF Funds;
provided Borrowers shall not be required to prepay such amounts below the aggregate principal amount of $10,000,000 and
provided, further, that in the case of a prepayment under the A/R Facility, any commitments which remain outstanding
in excess of such $10,000,000 may not be reborrowed, without the prior written consent of Lender Agent unless the proceeds of such
borrowing are used by Borrower solely for the purpose of making quality assurance or enhanced funds payments relating to federal
matching funds and related payments of taxes and pledged funds due to the California Health Foundation & Trust so long as the
Borrowers deliver to the Lender Agent an officer’s certificate certifying to the amount of such borrowing and the use of
the proceeds thereof solely for such purpose (for the avoidance of doubt, the Borrowers shall not be restricted in their use of
proceeds with respect to all or any portion of the aggregate commitment amount of $10,000,000 under the A/R Facility). Any prepayment
pursuant to clause (i) of the immediately foregoing sentence shall be applied in accordance with Section 1.4(c) (Application
of Prepayments). The following shall not be subject to mandatory prepayment under this subsection: (1) proceeds of sales of Inventory
in the ordinary course of business; (2) proceeds of collection of Accounts in the ordinary course of business (except as otherwise
set forth herein); and (3) proceeds of sales of Equipment and other personal property in the ordinary course of business so long
as such Equipment and other personal property is replaced (if necessary in the exercise of prudent business judgment) by Equipment
and other personal property of equal or greater value or utility. Notwithstanding anything to the contrary set forth herein, this
Section 1.4(b) shall not apply to the Borrowers or Credit Parties if the Borrowers or Credit Parties repay in full in cash
all Obligations outstanding under this Agreement and the other Loan Documents with (x) the proceeds of such payments or reimbursement
of enhanced federal matching funds, (y) any loans made under the A/R Facility, or (z) any combination of proceeds described in
the preceding clause (x) or loans described in the preceding clause (y).

(c)Application
of Prepayments. Any prepayments made pursuant to Section 1.4 (a) or (b) (Prepayments) above shall be applied
as follows: first, to reimbursable expenses of Lenders then due and payable pursuant to any of the Loan Documents; second, to interest
then due and payable on the Loans; third, and last, in such order as Lenders shall determine in their sole and absolute discretion,
to the principal balance of the Loans until the same has been paid in full. If an Event of Default has occurred and is continuing,
Lenders shall have the absolute right, in their sole discretion, to determine which of the Obligations shall be paid and in what
order and amounts.

    	4

    	 

    

(d)Application
of Prepayments from Insurance and Condemnation Proceeds. Prepayments from insurance or condemnation proceeds in accordance
with Section 5.4(a) (Insurance) shall be applied to the Loans in the manner described in Section 1.4(c)
(Application of Prepayments) above.

(e)No Implied
Consent. Nothing in this Section 1.4 (Prepayments) shall be construed to constitute a Lender’s consent to
any transaction that is not permitted by other provisions of this Agreement or the other Loan Documents.

(f)[Intentionally
Omitted.]

(g)Reliance
on Notices; Appointment of Borrower’s Representative. Lenders or Lender Agent shall be entitled to rely upon, and shall
be fully protected in relying upon, any Notice of Request for Advance or other notice believed by Lenders or Lender Agent to be
genuine. Lenders or Lender Agent may assume that each Person executing and delivering any notice in accordance herewith, including
without limitation the Notice of Request for Advance, was duly authorized, unless the responsible individual acting thereon for
Lenders or Lender Agent has actual knowledge to the contrary. Borrowers hereby designate each and any of Kenneth K. Westbrook,
Steven R. Blake, and any other officer of IHHI appointed by the board of directors of IHHI to be a “Borrower’s Representative”
hereunder, the written notice of which appointment has been given to Lender Agent (any such individual, an “Authorized
Individual”), as Borrower’s Representative for the purposes of issuing Notices of Request for Advances, giving
instructions with respect to the disbursement of the proceeds of the applicable Loan, giving and receiving all other notices and
consents hereunder or under any of the other Loan Documents and taking all other actions (including in respect of compliance with
covenants) on behalf of Borrowers under the Loan Documents. Borrower’s Representative hereby accepts such appointment. Lenders
or Lender Agent may regard any notice or other communication pursuant to any Loan Document from Borrower’s Representative
as a notice or communication from Borrowers, and may give any notice or communication required or permitted to be given to Borrowers
hereunder to Borrower’s Representative on behalf of Borrowers. Borrowers agree that each notice, election, representation
and warranty, covenant, agreement and undertaking made on its behalf by Borrower’s Representative shall be deemed for all
purposes to have been made by Borrowers and shall be binding upon and enforceable against Borrowers to the same extent as if the
same had been made directly by Borrowers. Borrowers may, by written notice to Lender Agent, seek to terminate the appointment of
an Authorized Individual if there is only one Authorized Individual at such time as Borrower’s Representative and propose
appointment of replacement Borrower’s Representative; provided, however, said proposed replacement Borrower’s
Representative (i) must be an officer or director of IHHI, and (ii) must be acceptable to Lender Agent in its sole discretion.
Lender Agent shall within ten (10) Business Days from receipt of said notice deliver a written notice to Borrowers either
approving, or disapproving, of said proposed replacement. If Lender Agent timely delivers a notice to Borrowers disapproving the
proposed replacement(s), or fails to timely deliver any notice to Borrowers, then such Authorized Individual shall remain as Borrower’s
Representative until an acceptable replacement(s) is proposed by Borrowers and approved by Lender Agent. If Lender Agent timely
approves said proposed replacement, then from and after the date Lender Agent delivers written notice of approval of said proposed
replacement to Borrowers, such Authorized Individual shall cease to be Borrower’s Representative and the proposed replacement
shall become Borrower’s Representative.

    	5

    	 

    

1.5Interest;
Payments.

(a)Interest
on Loans. During the term of the Loans, Borrowers shall pay interest to the Lenders on all outstanding Advances, in arrears,
on each applicable Interest Payment Date, at the Interest Rate.

(b)Principal
on the Loans. The Borrowers hereby unconditionally promise to pay the unpaid principal amount of the Loans on the Maturity
Date.

(c)Payment
Date. If any payment on any Loan becomes due and payable on a day other than a Business Day, the due date thereof will be extended
to the next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be payable at the then
applicable Interest Rate during such extension.

(d)Computation
of Interest. All computations of interest shall be made by Lenders at the applicable Interest Rate and calculated on the basis
of a three hundred sixty (360) day year comprised of twelve (12) months of thirty (30) days each.

(e)Default
Rate. Notwithstanding the foregoing, so long as an Event of Default has occurred and is continuing under any Loan Document,
the Interest Rate applicable to the Loans shall be increased to the Default Rate, and all outstanding Obligations shall bear interest
at the Default Rate applicable to such Obligations. Interest at the Default Rate shall accrue from the initial date of such Event
of Default until that Event of Default is cured or waived and shall be payable upon demand. All interest payments owing hereunder
or under any of the other Loan Documents, including interest accruing at the Default Rate, shall constitute additional Obligations
hereunder and shall be secured by the Collateral.

(f)Payment
to Lenders’ Account. All payments by Borrowers to Lender Agent for the account of the Lenders hereunder shall be made
to the following deposit account unless and until Lender Agent or any Lender directs otherwise:

Bankers Trust

ABA: 021-001-033

A/C Name: Global Loan Services

A/C #: 99907998

Ref: IHHI

(g)Interest
Period. If on the third Business Day prior to the expiration of any Interest Period applicable to an Advance of the Loans,
IHHI has failed to select, or is not permitted to select, a new Interest Period to be applicable to such Loans, IHHI shall be deemed
to have selected an Interest Period of three months. Unless consented to by each Lender, no Interest Period longer than one month
may be selected at any time when a Default or Event of Default has occurred and is continuing.

    	6

    	 

    

1.6Maximum Lawful
Rate of Interest. Notwithstanding anything to the contrary set forth in Section 1.5 (Interest; Payments), if a
court of competent jurisdiction determines in a final unappealable order that the rate of interest payable hereunder exceeds the
Maximum Lawful Rate, then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall
be equal to the Maximum Lawful Rate. In no event shall the total interest received by Lenders pursuant to the terms hereof exceed
the amount that such Lenders could lawfully have received had the interest due hereunder been calculated for the full term hereof
at the Maximum Lawful Rate. Any payments made by Borrowers in excess of the Maximum Lawful Rate shall be considered voluntary prepayments
of the Loans under Section 1.4(a) (Voluntary Prepayments); provided that no prepayment premium set forth therein
shall be applicable to any such payments.

1.7Cash Management
System. On or prior to the Closing Date, Borrowers will establish and will maintain until the Termination Date, the Cash Management
System described in Annex B (Cash Management System) attached hereto, including but not limited to the provisions of
the Deposit Account Security Agreement and related Control Agreements. Notwithstanding anything to the contrary herein or in any
other Loan Documents, the provisions relating to cash management, deposit account security agreements or control agreements, including,
without limitation, this Section 1.7, shall be subject to the A/R Facility.

1.8[Intentionally
Omitted.]

1.9[Intentionally
Omitted.]

1.10Certain
Notices.

(a)At least three
(3) Business Days prior to the Closing Date, Borrowers shall execute and deliver to Lenders and the Lender Agent a Notice
of Request for Advance requesting that Lenders make initial Advances under the Loans.

(b)At least three
(3) Business Days prior to (i) the Restatement Effective Date and (ii) the expiration of each Interest Period, IHHI shall
execute and deliver to Lender Agent a Notice of Interest Period selecting the duration of the initial Interest Period, and if no
such notice is delivered, the provisions of Section 1.5(g) shall apply.

1.11Receipt of Payments.
Borrowers shall make each payment under this Agreement and the Notes not later than 5:00 p.m. (New York time) on the day when
due in immediately available funds in Dollars to Lender Agent for the account of the Lenders described in Section 1.5(f)
(Payment to Lenders’ Account) above. For purposes of computing interest as of any date, all payments shall be deemed received
on the Business Day on which immediately available funds therefore are received in Lender Agent’s deposit account prior to 5:00
p.m. (New York time). Payments received in good and immediate funds after 5:00 p.m. (New York time) on any Business Day or
on a day that is not a Business Day shall be deemed to have been received on the following Business Day.

(a)Application
and Allocation of Payments.

    	7

    	 

    

(i)Application
of Payments. So long as no Event of Default has occurred and is continuing, for each Loan, (1) scheduled monthly payments
shall be applied first, to reimbursable expenses of Lenders then due and payable pursuant to any of the Loan Documents; second,
to interest then due and payable on the Loan; third, and last, to the principal balance of the Loan until the same has been paid
in full; and (2) voluntary prepayments and mandatory prepayments shall be applied as set forth in Section 1.4(c)
(Application of Prepayments). As to any other payment, and as to all payments made when an Event of Default has occurred and is
continuing, Borrowers and the Credit Parties hereby irrevocably waive the right to direct the application of any and all payments
received from or on behalf of Borrowers, and Borrowers hereby irrevocably agree that Lenders shall have the continuing exclusive
right to apply any and all such payments against the Obligations of Borrowers as Lenders may deem advisable notwithstanding any
previous entry by Lenders in the Loan Account or any other books and records.

(ii)Charges
to the Loans. Lenders are authorized to, and in their sole and absolute discretion may, charge to its respective Loans (which
charges shall be deemed to be Advances requested by Borrowers) on behalf of Borrowers and cause to be paid all expenses, Charges,
costs (including insurance premiums in accordance with Section 5.4 (Insurance)) and interest and principal, other than
principal of the Loan, if and to the extent Borrowers fail to pay promptly any such amounts as and when due. Such charges to the
Loan shall not waive any Event of Default due to Borrower’s non-payment, unless Lenders in their sole and absolute discretion,
agrees in writing. At Lenders’ option and to the extent permitted by law, any charges so made shall constitute part of the
Loan, and shall be secured by the Collateral.

1.12Loan Account.
Lenders shall maintain a Loan Account on its books to record all Advances, all payments made by Borrowers, and all other debits
and credits as provided in this Agreement with respect to the Loan or any other Obligations. All entries in the Loan Account shall
be made in accordance with Lenders’ customary accounting practices as in effect from time to time. The balance in the Loan
Account, as recorded on Lenders’ most recent printout or other written statement, shall, absent demonstrable error, be presumptive
evidence of the amounts due and owing to Lenders by Borrowers; provided that any failure to so record or any error in so
recording shall not limit or otherwise affect Borrower’s duty to pay the Obligations. Lenders shall render to Borrower’s
Representative a monthly accounting of transactions with respect to the Loans setting forth the balance of the Loan Account as
to Borrowers for the immediately preceding month. Unless Borrower’s Representative notifies Lenders in writing of any objection
to any such accounting (specifically describing the basis for such objection), within thirty (30) calendar days after the
date of Borrower’s Representative’s receipt thereof, each and every such accounting shall be presumptive evidence of
all matters reflected therein. Only those items expressly objected to in such notice and explaining the basis for such objection(s)
shall be deemed to be disputed by Borrowers.

    	8

    	 

    

1.13Access. Borrowers
and Credit Parties (other than Ganesha) shall, during normal business hours, from time to time upon 24 hours prior notice
as frequently as Lenders reasonably determines to be appropriate: (a) provide Lenders and any of its officers, employees and
agents access to its properties, facilities, advisors, officers and employees of Borrowers and Credit Parties (other than Ganesha)
and to the Collateral for purposes of exercising and enforcing Lenders’ rights and remedies under the Loan Documents, (b) permit
Lenders and any of its officers, employees and agents, to inspect, audit and make extracts from Borrower’s and Credit Party’s
(other than Ganesha’s) respective books and records pertaining to the Loans and the Collateral, and (c) permit Lenders
and its officers, employees and agents, to inspect, review, evaluate and make test verifications and counts of the Collateral of
Borrowers and Credit Parties. If an Event of Default has occurred and is continuing, Borrowers and Credit Parties (other than Ganesha)
shall provide such access to Lenders at all times and without advance notice. Furthermore, so long as any Event of Default has
occurred and is continuing, Borrowers shall use commercially reasonable efforts to provide Lenders with access to their suppliers
and customers. Borrowers and Credit Parties (other than Ganesha) shall make available to Lenders and its counsel reasonably promptly
originals or copies of all books and records that Lenders may reasonably request. Borrowers and Credit Parties (other than Ganesha)
shall deliver any document or instrument necessary for Lenders as it may from time to time request, to obtain records from any
service bureau or other Person that maintains records for Borrowers and Credit Parties pertaining to the Loans or the Collateral.

1.14Taxes.

(a)No Deduction
for Taxes. Any and all payments by Borrowers hereunder (including any payments made pursuant to Section 13 (Suretyship
Waivers) or under the Notes shall be made, in accordance with this Section 1.14 (Taxes), free and clear of and without
deduction for any and all present or future Taxes. If Borrowers shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder (including any sum payable pursuant to Section 13 (Suretyship Waivers)) or under such
Notes, (i) the sum payable shall be increased as much as shall be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 1.14 (Taxes)) Lenders receive an amount equal to
the sum it would have received had no such deductions been made, (ii) Borrowers shall make such deductions, and (iii) Borrowers
shall pay the full amount deducted to the relevant taxing or other authority in accordance with applicable law. Within thirty (30) days
after the date of any payment of Taxes, Borrower’s Representative shall furnish to Lenders the original or a certified copy
of a receipt evidencing payment thereof.

(b)Indemnity
for Taxes. Borrowers hereby agree to indemnify, defend, protect and hold Lenders free and harmless from any claim or demand
for payment of, and within ten (10) calendar days of receipt of demand therefor agrees to pay to Lenders, (i) any and
all Taxes that Borrowers are obligated to pay pursuant to this Section 1.14 (Taxes) (including any Taxes imposed by
any jurisdiction on amounts payable under this Section 1.14 (Taxes)), plus (ii) the full amount of any additional
liability (including penalties, interest and expenses) payable or paid by Lenders arising therefrom or with respect thereto, whether
or not the same were correctly or legally asserted. Notwithstanding the foregoing, Lenders remains ultimately responsible for paying
any and all income taxes measured by Lenders’ own gross income.

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1.15Capital Adequacy;
Increased Costs; Illegality.

(a)Capital
Adequacy. If any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or order regarding capital adequacy,
reserve requirements or similar requirements or compliance by Lenders with any request or directive compliance regarding capital
adequacy, reserve requirements or similar requirements (whether or not having the force of law), in each case, adopted after the
Closing Date, from any Governmental Authority increases or would have the effect of increasing the amount of capital, reserves
or other funds required to be maintained by Lenders and thereby reducing the rate of return on Lenders’ capital as a consequence
of its obligations hereunder, then Borrowers shall from time to time upon demand by Lenders pay to Lenders additional amounts sufficient
to compensate Lenders for such reduction. A certificate as to the amount of that reduction and showing the basis of the computation
thereof submitted by Lenders to Borrower’s Representative shall be presumptive evidence of the matters set forth therein.

(b)Increased
Costs. If, due to either (i) the introduction of or any change in any law or regulation (or any change in the interpretation
thereof) or (ii) the compliance with any guideline or request from any Governmental Authority (whether or not having the force
of law), in each case adopted after the Closing Date, there shall be any increase in the cost to Lenders of agreeing to make or
making, funding or maintaining the Loans, then Borrowers shall from time to time, upon demand by Lenders pay to Lenders additional
amounts sufficient to compensate Lenders for such increased cost. A certificate as to the amount of such increased cost, submitted
to Borrower’s Representative by Lenders, shall be presumptive evidence of the matters set forth therein. Lenders agree that,
as promptly as practicable after they become aware of any circumstances referred to above which would result in any such increased
cost, Lenders shall, to the extent not inconsistent with Lenders’ internal policies of general application, use reasonable
commercial efforts to minimize costs and expenses incurred by it and payable to it by Borrowers pursuant to this Section 1.15(b)
(Increased Costs). Provided, however, the amounts due from Borrowers under Sections 1.15(a) and (b) (Capital
Adequacy; Increased Costs) shall not include amounts attributable to Lenders’ non-compliance with any requirement of any
Governmental Authority or to Lenders’ non-payment of its own income taxes or to any increase in Lenders’ income taxes.

1.16Single Loan.
The Loans to Borrowers and all of the other Obligations of Borrowers arising under this Agreement and the other Loan Documents
shall constitute one general obligation of Borrowers secured by the Liens on all of the Collateral.

1.17A/R
Financing. If at any time the A/R Facility terminates, Lenders shall immediately and automatically have a first lien on the
A/R Facility Collateral and the Borrowers shall execute any and all agreements or documents and make any and all filings as requested
by Lenders in order to give effect thereto.

		2.	CONDITIONS PRECEDENT

2.1Conditions
Precedent to the Closing Date. Closing Date Lender shall not be obligated to take, fulfill, or perform any action hereunder,
nor shall Closing Date Lender be obligated to fund any portion of the Loans, until the following conditions precedent have been
satisfied or provided for in a manner satisfactory to Closing Date Lender, in its sole discretion, or waived in writing by Closing
Date Lender:

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(a)Credit Agreement;
Disclosure Schedules. Two (2) duplicate original counterparts of this Agreement shall have been duly executed by and delivered
by each Borrower and each Credit Party and each Guarantor to Closing Date Lender; and Closing Date Lender shall have received original
updated two (2) sets of Disclosure Schedules in form and substance satisfactory to Closing Date Lender, each dated and executed
by each Borrower.

(b)Approvals.
Closing Date Lender shall have received satisfactory evidence that each Borrower and each Credit Party have obtained, or in the
case of necessary Governmental Authority approvals, have applied for, all required consents and approvals of all Persons including
all requisite Governmental Authorities, to the execution, delivery and performance of this Agreement and the other Loan Documents.
Disclosure Schedule 2.1(b) attached hereto lists all required consents and approvals of all Governmental Authorities
and all other Persons.

(c)Capital
Structure; Other Indebtedness. The capital structure of each Borrower and each Credit Party (other than Ganesha) as of the
Closing Date, the ownership of each Borrower and each Credit Party (other than Ganesha) as of the Closing Date, and the terms and
conditions of all Indebtedness of each Borrower and each Credit Party (other than Ganesha) as of the Closing Date, shall certified
by each applicable Person to Closing Date Lender and must be acceptable to Closing Date Lender in its sole and absolute discretion.
The capital structure of each Borrower as of the Effective Date is set forth in Disclosure Schedule 2.1(c) attached
hereto.

(d)Charter
Documents. Each Borrower and each Credit Party (including each Guarantor) shall have delivered the following documents to Closing
Date Lender:

(i)A copy of
the articles of incorporation for each Borrower and a copy of the or articles of organization for each Credit Party, certified
by the Secretary of State for the state of incorporation or organization within the most recent 30 day period prior to
the Closing Date of this Agreement.

(ii)A certificate
of good standing issued by the applicable state of incorporation or organization for each Borrower and each Credit Party, certified
by the Secretary of State for the state or incorporation or organization within the most recent 30 day period prior to
the Closing Date of this Agreement.

(iii)The bylaws
or operating agreement for each Borrower and each Credit Party, certified to be true and accurate by the corporate secretary of
each Borrower and by the manager of each Credit Party within the most recent 30 day period prior to the Closing Date
of this Agreement.

(iv)An incumbency
certificate (officers and directors, or managers and members) for each Borrower and each Credit Party (including each Guarantor),
certified to be true and accurate by the corporate secretary of each Borrower and by the manager of each Credit Party within the
most recent 30 day period prior to the Closing Date of this Agreement.

(v)The unanimous
written consent of the board of directors of each Borrower and the unanimous written consent of all managers of each Credit Party
(including each Guarantor), authorizing the transactions set forth in this Agreement and the other Loan Documents, executed by
each such director or manager within most recent 30 day period prior to the Closing Date of this Agreement.

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(e)Voluntary
Resignation of Dr. Shah. Based on Closing Date Lender’s prior experience in connection with the Previous Loans, Closing
Date Lender has determined in the exercise of its discretion that it is unable to work with Dr. Shah and that it will not make
the Loans available to Borrowers unless Dr. Shah shall have voluntarily resigned as a director of and from all other management
positions with or in IHHI prior to the Closing Date.

(f)Plan Regarding
Engagement of Independent Directors. Closing Date Lender shall have received from IHHI and approved, in its sole discretion,
a Plan Regarding Engagement of Independent Directors.

(g)Appraisal.
Closing Date Lender shall have received from IHHI and approved, in its sole discretion, the Appraisal.

(h)Loan to
Value Ratio. The sum of the Existing Real Estate Term Loan and the $35,000,000 Non-Revolving Line of Credit Loan shall not
exceed seventy percent (70%) of the Appraised Value of the Properties as set forth in the Appraisal.

(i)Due Diligence.
Closing Date Lender shall have completed its business and legal due diligence and shall have waived all objections thereto.

(j)Title Commitment.
For each of the Properties, the Title Company shall have delivered a Title Commitment to Closing Date Lender in form
and content acceptable to Closing Date Lender in its sole and absolute discretion.

(k)Notes.
The Borrowers shall have each executed and delivered to Closing Date Lender one (1) original of each of the following Notes:

(i)To Closing
Date Lender, the Existing Real Estate Term Note in the form of Exhibit “A” attached to the Original Credit
Agreement; and

(ii)To Closing
Date Lender, the promissory note evidencing the $35,000,000 Non-Revolving Line of Credit in the form of Exhibit “B”
attached to the Original Credit Agreement.

(l)Notices
of Request for Advance. Borrower’s Representative shall have executed and delivered to Closing Date Lender two (2) duplicate
original counterparts of the Notice of Request for Advance in the form of Exhibit “D” attached hereto,
requesting initial Advances from each of the Loans in the minimum amounts required by this Agreement.

(m)$80,000,000
Deeds of Trust.

(i)With respect
to the Western Medical Center - Anaheim, PCHI shall have executed, acknowledged and delivered to Closing Date Lender (or shall
have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original $80,000,000 Deed of
Trust in the form of Exhibit “E” attached hereto, with the legal description describing the fee simple
interest in the Western Medical Center – Anaheim;

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(ii)With respect
to the Western Medical Center - Santa Ana, PCHI shall have executed, acknowledged and delivered to Closing Date Lender (or shall
have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original $80,000,000 Deed of
Trust in the form of Exhibit “E” attached hereto, with the legal description describing the fee simple
interest in the Western Medical Center – Santa Ana;

(iii)With respect
to the Coastal Communities Hospital (and medical office buildings), PCHI shall have executed, acknowledged and delivered to Closing
Date Lender (or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original
$80,000,000 Deed of Trust in the form of Exhibit “E” attached hereto, with the legal description describing
the fee simple interest in the Coastal Communities Hospital;

(iv)With respect
to the Chapman Medical Center:

(A)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original $80,000,000 Deed of Trust in the form of Exhibit “E”
attached hereto, with the legal description describing (1) the fee simple interest in the Chapman Medical Center, and (2) IHHI’s
interest, as MOB Tenant, in the Chapman MOB Lease; and

(B)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original $80,000,000 Deed of Trust in the form of Exhibit “E”
attached hereto, with the legal description describing (1) the fee simple interest in the Chapman Medical Center, and (2) IHHI’s
interest, as Hospital Tenant, in the Chapman Hospital Lease.

(n)Absolute
Assignment of Leases and Rents.

(i)With respect
to the Western Medical Center - Anaheim, PCHI shall have executed, acknowledged and delivered to Closing Date Lender (or shall
have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Absolute Assignment
of Leases and Rents in the form of Exhibit “F” attached hereto, with the legal description describing the
fee simple interest in the Western Medical Center - Anaheim;

(ii)With respect
to the Western Medical Center — Santa Ana, PCHI shall have executed, acknowledged and delivered to Closing Date Lender (or
shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Absolute Assignment
of Leases and Rents in the form of Exhibit “F” attached hereto, with the legal description describing the
fee simple interest in the Western Medical Center - Santa Ana;

(iii)With respect
to the Coastal Communities Hospital, PCHI shall have executed, acknowledged and delivered to Closing Date Lender (or shall have
deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Absolute Assignment of Leases
and Rents in the form of Exhibit “F” attached hereto, with the legal description describing the fee simple
interest in the Coastal Communities Hospital;

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(iv)With respect
to the Chapman Medical Center:

(A)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original Absolute Assignment of Leases and Rents in the form of Exhibit “F”
attached hereto, with the legal description describing (1) the fee simple interest Chapman Medical Center, and (2) IHHI’s
interest, as MOB Tenant, in the Chapman MOB Lease; and

(B)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original Absolute Assignment of Leases and Rents in the form of Exhibit “F”
attached hereto, with the legal description describing (1) the fee simple interest Chapman Medical Center, and (2) IHHI’s
interest, as Hospital Tenant, in the Chapman Hospital Lease.

(o)Security
Agreement. Borrowers shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Security Agreement in the form of Exhibit “G” attached hereto.

(p)Collateral
Assignment of Contracts.

(i)With respect
to the Western Medical Center - Anaheim, IHHI and WMC-A shall have executed, acknowledged and delivered to Closing Date Lender
(or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Collateral
Assignment of Contracts in the form of Exhibit “H” attached hereto, with the legal description describing
the fee simple interest in the Western Medical Center - Anaheim;

(ii)With respect
to the Western Medical Center - Santa Ana, IHHI and WMC-SA shall have executed, acknowledged and delivered to Closing Date Lender
(or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Collateral
Assignment of Contracts in the form of Exhibit “H” attached hereto, with the legal description describing
the fee simple interest in the Western Medical Center — Santa Ana;

(iii)With respect
to the Coastal Communities Hospital (and medical office buildings), IHHI and Coastal shall have executed, acknowledged and delivered
to Closing Date Lender (or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original
Collateral Assignment of Contracts in the form of Exhibit “H” attached hereto, with the legal description
describing the fee simple interest in the Coastal Communities Hospital;

(iv)With respect
to the Chapman Medical Center:

(A)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original Collateral Assignment of Contracts in the form of Exhibit “H”
attached hereto, with the legal description describing (1) the fee simple interest in the Chapman Medical Center, and (2) IHHI’s
interest, as MOB Tenant, in the Chapman MOB Lease; and

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(B)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original Collateral Assignment of Contracts in the form of Exhibit “H”
attached hereto, with the legal description describing (1) the fee simple interest in the Chapman Medical Center, and (2) IHHI’s
interest, as Hospital Tenant, in the Chapman Hospital Lease.

(q)Deposit
Account Security Agreement.

(i)With respect
to the Western Medical Center — Anaheim, IHHI and WMC-A shall have executed, acknowledged and delivered to Closing Date Lender
(or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Deposit Account
Security Agreement in the form of Exhibit “I” attached hereto, with the legal description describing the
fee simple interest in the Western Medical Center — Anaheim;

(ii)With respect
to the Western Medical Center - Santa Ana, IHHI and WMC-SA shall have executed, acknowledged and delivered to Closing Date Lender
(or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original Deposit Account
Security Agreement in the form of Exhibit “I” attached hereto, with the legal description describing the
fee simple interest in the Western Medical Center – Santa Ana;

(iii)With respect
to the Coastal Communities Hospital (and medical office buildings), IHHI and Coastal shall have executed, acknowledged and delivered
to Closing Date Lender (or shall have deposited the same into Escrow as, when and if required by Closing Date Lender) one (1) original
Deposit Account Security Agreement in the form of Exhibit ”I” attached hereto, with the legal description
describing the fee simple interest in the Coastal Communities Hospital;

(iv)With respect
to the Chapman Medical Center:

(A)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original Deposit Account Security Agreement in the form of Exhibit ”I”
attached hereto, with the legal description describing (1) the fee simple interest in the Chapman Medical Center, and (2) IHHI’s
interest, as MOB Tenant, in the Chapman MOB Lease; and

(B)IHHI shall
have executed, acknowledged and delivered to Closing Date Lender (or shall have deposited the same into Escrow as, when and if
required by Closing Date Lender) one (1) original Deposit Account Security Agreement in the form of Exhibit ”I”
attached hereto, with the legal description describing (1) the fee simple interest in the Chapman Medical Center, and (2) IHHI’s
interest, as Hospital Tenant, in the Chapman Hospital Lease.

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(r)Control
Agreement. Borrowers and Bank shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Control Agreement in the form of Exhibit ”J” attached hereto.

(s)Post-Closing
Agreement. Borrowers shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Post-Closing Agreement in the form of Exhibit ”K” attached hereto.

(t)Intellectual
Property Security Agreement. Borrowers shall have executed and delivered to Closing Date Lender two (2) duplicate original
counterparts of the Intellectual Property Security Agreement in the form of Exhibit ”L” attached hereto.

(u)Environmental
Indemnity Agreement. Borrowers and the Credit Parties (other than Ganesha) shall have executed and delivered to Closing Date
Lender two (2) duplicate original counterparts of the Environmental Indemnity Agreement in the form of Exhibit ”M”
attached hereto.

(v)Guaranty
Agreement. Guarantors shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Guaranty Agreement in the form of Exhibit ”N” attached hereto.

(w)Intercreditor
Agreement. Borrowers shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Intercreditor Agreement in the form of Exhibit ”O” attached hereto.

(x)Pledge Agreement.
IHHI, Ganesha and West Coast shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Pledge Agreement in the form of Exhibit ”P” attached hereto.

(y)Stock Power.
IHHI shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts of the Stock Power in
the form of Exhibit “Q” attached hereto.

(z)Membership
Power. Ganesha and West Coast shall have executed and delivered to Closing Date Lender two (2) duplicate original counterparts
of the Membership Power in the form of Exhibit “R” attached hereto.

(aa)Landlord’s
Consent and Estoppel Certificate (Chapman Hospital Lease). The Landlord under the Chapman Hospital Lease shall have executed
and delivered to Closing Date Lender, for the benefit of Closing Date Lender, two (2) duplicate original counterparts of the
Landlord’s Consent and Estoppel Certificate in the form of Exhibit “S” attached hereto.

(bb)Landlord’s
Consent and Estoppel Certificate (Chapman MOB Lease). The Landlord under the Chapman MOB Lease shall have executed and delivered
to Closing Date Lender, for the benefit of Closing Date Lender, two (2) duplicate original counterparts of the Landlord’s
Consent and Estoppel Certificate in the form of Exhibit “S” attached hereto.

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(cc)Landlord’s
Consent and Estoppel Certificate (Triple Net Lease). PCHI, landlord under the Triple Net Lease, shall have executed and delivered
to Closing Date Lender, for the benefit of Closing Date Lender, two (2) duplicate original counterparts of the Landlord’s
Consent and Estoppel Certificate in the form of Exhibit “T” attached hereto.

(dd)Warrant.
IHHI shall have executed and delivered to Closing Date Lender one (1) original Warrant in the form of Exhibit “U”
attached hereto.

(ee)Legal Opinions.

(i)Legal
Opinion of California Counsel. An original legal opinion (from counsel licensed to practice law and in good standing in the
State of California) for PCHI, West Coast, Ganesha, WMC-A, WMC-SA, Coastal and Chapman regarding the transactions contemplated
by this Agreement and the other Loan Documents shall be delivered to Closing Date Lender, containing among other things legal opinions
with respect to the following: (A) the valid existence of PCHI, West Coast, Ganesha, WMC-A, WMC-SA, Coastal and Chapman in
the State of California; (B) the good standing of PCHI, West Coast, Ganesha, WMC-A, WMC-SA, Coastal and Chapman in the State
of California; (C) the requisite power of PCHI, West Coast, Ganesha, WMC-A, WMC-SA, Coastal and Chapman to execute this Agreement
and the other Loan Documents; (D) that the execution of this Agreement and the other Loan Documents by PCHI, West Coast, Ganesha,
WMC-A, WMC-SA, Coastal and Chapman will not constitute a breach or default under any contracts or agreements executed by or to
which PCHI, West Coast, Ganesha, WMC-A, WMC-SA, Coastal and Chapman is a party; (E) that the choice of law provisions set forth
in this Agreement and the other Loan Documents are enforceable; and (F) such other opinions that Closing Date Lender may require.

(ii)First
Legal Opinion of Nevada Counsel. A first original legal opinion (from counsel licensed to practice law and in good standing
in the State of Nevada) for IHHI and OC-PIN regarding the transactions contemplated by this Agreement and the other Loan Documents
shall be delivered to Closing Date Lender, containing among other things legal opinions with respect to the following: (A) the
valid existence of IHHI and OC-PIN in the State of Nevada; (B) the good standing of IHHI and OC-PIN in the State of Nevada;
(C) the requisite power of IHHI and OC-PIN to execute this Agreement and the other Loan Documents; (D) that the execution
of this Agreement and the other Loan Documents by IHHI and OC-PIN will not constitute a breach or default under any contracts or
agreements executed by or to which IHHI and OC-PIN is a party; (E) that the choice of law provisions set forth in this Agreement
and the other Loan Documents are enforceable; and (F) such other opinions that Closing Date Lender may require.

(iii)Second
Legal Opinion of Nevada Counsel. A second original legal opinion from counsel (licensed to practice law and in good standing
in the State of Nevada) for all Borrowers and all Credit Parties and all Guarantors regarding the transactions contemplated by
this Agreement and the other Loan Documents shall be delivered to Closing Date Lender, containing among other things legal opinions
with respect to the following: (A) that this Agreement and the other Loan Documents comply with Nevada law; (B) that
this Agreement and the other Loan Documents are enforceable under Nevada law; (C) that the choice of Nevada law under this
Agreement and the other Loan Documents is valid and enforceable under Nevada law; (D) that the Interest Rate applicable to
each of the Loans is not usurious under Nevada law; and (E) such other matters as Closing Date Lender may require.

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(ff)Fairness
Opinion. A fairness opinion executed by a qualified, independent, third-party professional financial advisor or investment
bank opining as to (i) the fairness of the transactions contemplated by this Agreement as between the Borrowers and Credit
Parties and Guarantors, and (ii) an allocation of fair value to each Hospital Facility, in form and substance satisfactory
to Closing Date Lender.

(gg)Closing
and Funding Checklist - Other Documents and Instruments. Each Borrower and each Credit Party and each Guarantor shall have
executed (where required) and delivered to Closing Date Lender each of the other documents, exhibits, disclosure schedules, instruments
and other items listed in the Closing and Funding Checklist, in form and content satisfactory to Closing Date Lender.

(hh)$50,000,000
Credit Agreement. All conditions precedent to the obligation of Medical Provider Financial Corporation I (as lender) under
Article 4 of the $50,000,000 Credit Agreement shall have been satisfied or provided for in a manner satisfactory to said lender,
in its sole discretion, or waived in writing by said lender 

(ii)Documents
Required by Title Commitment. Each Borrower shall have executed (where required) and deposited into Escrow all documents
and instruments required by the Title Commitment and/or the Escrow Company.

(jj)$10,700,000
Credit Agreement. All conditions precedent to the obligation of Medical Provider Financial Corporation III under Article 2
of the $10,700,000 Credit Agreement shall have been satisfied or provided for in a manner satisfactory to said Medical Provider
Financial Corporation III, in its sole discretion, or waived in writing by Medical Provider Financial Corporation III.

2.2Further
Conditions Precedent to Making Loans; Further Conditions Precedent to Funding Advances. The obligations of Closing Date Lender
to making the Loans to Borrowers and to funding any Advances under the Loans to Borrowers, shall be subject to the following further
conditions precedent:

(a)Further
Conditions Precedent to Making Loans. Closing Date Lender shall not be obligated to make any of the Loans to Borrowers unless
and until the following additional conditions precedent have been satisfied or provided for in a manner reasonably satisfactory
to Closing Date Lender, or waived in writing by Closing Date Lender, on or before the Closing Date:

(i)Loan Documents.
All Loan Documents having been executed and delivered on or before the Closing Date shall remain in full force and effect, and
Closing Date Lender shall have received such further documents, instruments, agreements and legal opinions as Closing Date Lender
shall reasonably request in connection with the transactions contemplated by this Agreement and the other Loan Documents, each
in form and substance satisfactory to Closing Date Lender.

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(ii)$50,000,000
Credit Agreement. All loan documents having been executed and delivered on or before the closing date of the transaction contemplated
by the $50,000,000 Credit Agreement shall remain in full force and effect, and the lender under the $50,000,000 Credit Agreement
shall have received such further documents, instruments, agreements and legal opinions as such lender shall reasonably request
in connection with the transactions contemplated by the $50,000,000 Credit Agreement and the loan documents referenced therein,
each in form and substance satisfactory to said lender.

(iii)Approvals.
Closing Date Lender shall have received (A) satisfactory evidence (or, shall, in its reasonable discretion, continue to be
satisfied with such evidence received under Section 2.1(b) (Approvals)), that each Borrower and each Credit Party have
obtained, or in the case of necessary Governmental Authority approvals, have applied for, all required consents and approvals of
all Persons including all requisite Governmental Authorities, to the execution, delivery and performance of this Agreement and
the other Loan Documents to which they are parties or a signatory, or (B) an officer’s certificate signed by an executive
officer of each Borrower in form and substance satisfactory to Closing Date Lender affirming that no such consents or approvals
are required.

(iv)Timing.
The closing must occur by the Closing Date.

(v)Collateral.
Closing Date Lender shall have approved of the Collateral in its sole and absolute discretion.

(vi)Changes
to Disclosure Schedules. Borrowers shall have delivered to Closing Date Lender updates to all Disclosure Schedules as required
by Section 5.6 (Supplemental Disclosure), and Closing Date Lender shall have approved in its discretion all updates
to the Disclosure Schedules as have been delivered to Closing Date Lender on or before the Closing Date.

(vii)No Material
Adverse Effect. No event or circumstance shall have occurred that has or reasonably could be expected by Closing Date Lender
to have a Material Adverse Effect.

(viii)Title Policies.
Title Company shall irrevocably be committed to issue the Title Policy to Closing Date Lender on the Closing Date for
each Property, at Borrowers’ sole cost and expense, in form and content acceptable to Closing Date Lender in its sole discretion.

(ix)Escrow.
Borrowers shall have opened Escrow at the offices of the Title Company and the escrow officer shall be prepared to close Escrow
on the terms and conditions set forth in the Escrow Instructions on deposit therein.

(b)Conditions
to Funding Advances. Closing Date Lender shall not be obligated to fund any Advance under any of the Loans to Borrowers on
the Closing Date or on any other date if:

    	19

    	 

    

(i)Any representation
or warranty by any Borrower or by any Credit Party or by any Guarantor contained herein or in any other Loan Document is untrue
or incorrect in any material respect as of such date;

(ii)Any Default
or Event of Default has occurred and is continuing or would result after giving effect to any Advance; or

(iii)Any event
or circumstance shall have occurred that has or reasonably could be expected by Closing Date Lender to have a Material Adverse
Effect.

The request by any
Borrower or Borrower’s Representative that Closing Date Lender fund an Advance under any Loan on the Closing Date or on any
other date shall in each event be deemed to constitute, as of the date thereof, (A) a representation and warranty by all Borrowers
and all Credit Parties and all Guarantors that the conditions precedent in this Section 2.2 (Further Conditions Precedent
to Making Loans; Further Conditions Precedent to Funding Advances) to which it is a party or a signatory have been satisfied, and
(B) a reaffirmation by each Borrower and by each Credit Party and by each Guarantor of their respective obligations under
the Loan Documents.

2.3Place
of Closing; Delivery of Loan Documents to Closing Date Lender; Deposits Into Escrow; Close of Escrow; Distribution of Funds and
Documents. The transactions contemplated by this Agreement and the other Loan Documents will close on the Closing Date, as
follows:

(a)Place Of
Closing. Unless otherwise agreed in writing by Borrowers and Closing Date Lender, the Closing will take place on the Closing
Date at the offices of Medical Capital Corporation, 2100 South State College Blvd., Anaheim, California 92806, Attn: Joseph
J. Lampariello, President and COO, telephone: 714-935-3100.

(b)Delivery
of Loan Documents to Closing Date Lender’s Counsel. Each Borrower shall, not less than three (3) Business Days prior
to the Closing Date, deliver or cause to be delivered to legal counsel for Closing Date Lender the following Loan Documents, each
duly executed by each Borrower, each Credit Party (where applicable), each Guarantor (where applicable), any other Person required
by this Agreement, and, where required, witnessed, acknowledged and in recordable form, with all exhibits, schedules and annexes
(each pre-approved by Closing Date Lender ) attached and executed as required:

(i)Two (2) duplicate
original counterparts of this Agreement, executed by each Borrower and each Credit Party and each Guarantor and with all completed
Annexes and Disclosure Schedules attached.

(ii)One (1) original
of the Existing Real Estate Term Note, executed by Borrowers.

(iii)One (1) original
of the promissory note evidencing the $35,000,000 Non-Revolving Line of Credit Loan, executed by Borrowers.

(iv)[Intentionally
Omitted]

    	20

    	 

    

(v)Two (2) duplicate
original counterparts of the Notice of Request for Advance, executed by Borrower’s Representative.

(vi)Two (2) duplicate
original counterparts of the Security Agreement, executed by Borrowers.

(vii)Two (2) duplicate
original counterparts of the Collateral Assignment of Contracts re Western Medical Center - Anaheim, executed by IHHI and WMC-A.

(viii)Two (2) duplicate
original counterparts of the Collateral Assignment of Contracts re Western Medical Center — Santa Ana, executed by IHHI and
WMC-SA.

(ix)Two (2) duplicate
original counterparts of the Collateral Assignment of Contracts re Coastal Community Hospital, executed by IHHI and Coastal.

(x)Two (2) duplicate
original counterparts of the Collateral Assignment of Contracts re Chapman MOB Lease, executed by IHHI.

(xi)Two (2) duplicate
original counterparts of the Collateral Assignment of Contracts re Chapman Hospital Lease, executed by IHHI.

(xii)Two (2) duplicate
original counterparts of the Deposit Account Security Agreement re Western Medical Center - Anaheim, executed by IHHI and WMC-A.

(xiii)Two (2) duplicate
original counterparts of the Deposit Account Security Agreement re Western Medical Center - Santa Ana, executed by IHHI and WMC-SA.

(xiv)Two (2) duplicate
original counterparts of the Deposit Account Security Agreement re Coastal Community Hospital, executed by IHHI and Coastal.

(xv)Two (2) duplicate
original counterparts of the Deposit Account Security Agreement re Chapman MOB Lease, executed by IHHI.

(xvi)Two (2) duplicate
original counterparts of the Deposit Account Security Agreement re Chapman Hospital Lease, executed by IHHI.

(xvii)Two (2) duplicate
original counterparts of the Control Agreement, executed by Borrowers and Bank.

(xviii)Two (2) duplicate
original counterparts of the Post-Closing Agreement, executed by Borrowers.

(xix)Two (2) duplicate
original counterparts of the Intellectual Property Security Agreement, executed by Borrowers.

(xx)Two (2) duplicate
original counterparts of the Environmental Indemnity Agreement, executed by Borrowers and by each Credit Party (other than Ganesha).

    	21

    	 

    

(xxi)Two (2) duplicate
original counterparts of the Guaranty Agreement, executed by each Guarantor.

(xxii)Two (2) duplicate
original counterparts of the Intercreditor Agreement, executed by Borrowers.

(xxiii)Two (2) duplicate
original counterparts of the Pledge Agreement, executed by IHHI, Ganesha and West Coast.

(xxiv)Two (2) duplicate
original counterparts of the Stock Power executed by IHHI.

(xxv)All original
Stock certificates in WMC-A, WMC-SA, Coastal and Chapman owned, held or controlled by IHHI.

(xxvi)Two (2) duplicate
original counterparts of the Membership Power executed by Ganesha and West Coast.

(xxvii)All original
Membership Certificates in PCHI owned, held or controlled by Ganesha; and all Membership Certificates in PCHI owned, held or controlled
by West Coast.

(xxviii)Two
(2) duplicate original counterparts of the Landlord’s Consent and Estoppel Certificate (Chapman MOB Lease), executed
by the Landlord under the Chapman MOB Lease.

(xxix)Two (2) duplicate
original counterparts of the Landlord’s Consent and Estoppel Certificate (Chapman Hospital Lease), executed by the Landlord
under the Chapman Hospital Lease.

(xxx)Two (2) duplicate
original counterparts of the Landlord’s Consent and Estoppel Certificate (Triple Net Lease), executed by PCHI.

(xxxi)One (1) original
Warrant, executed by IHHI.

(xxxii)Two (2) original
executed opinions of California legal counsel for PCHI, West Coast, Ganesha, WMC-A, WMC-SA, Coastal and Chapman, executed by said
counsel.

(xxxiii)Two
(2) original executed first opinions of Nevada legal counsel for IHHI and OC-PIN, executed by said Nevada counsel.

(xxxiv)Two (2) original
executed second opinions of Nevada legal counsel for all Borrowers and Credit Parties and Guarantors, executed by said Nevada counsel.

(xxxv)One (1) original
executed fairness opinion, in form and content acceptable to Closing Date Lender.

(xxxvi)All other
documents, instruments, agreements, Annexes, Schedules, Exhibits not set forth above but required by the Closing and Funding Checklist.

    	22

    	 

    

(c)Deposits
Into Escrow. Unless otherwise set forth below, Borrowers and Closing Date Lender shall, not less than two (2) Business
Days prior to the Closing Date, deposit the following documents, instruments and other items into Escrow, each duly executed and,
where appropriate, witnessed, acknowledged and in recordable form, with all exhibits, schedules and annexes (each pre-approved
by Closing Date Lender ) attached and executed as required:

(i)One (1) copy
of this Agreement, executed by Closing Date Lender, by each Borrower and by each Credit Party and by each Guarantor and with all
completed Annexes and Disclosure Schedules and Exhibits attached.

(ii)With respect
to the Western Medical Center - Anaheim, one (1) original $80,000,000 Deed of Trust executed and acknowledged by PCHI with
the legal description describing the fee simple interest in the Western Medical Center - Anaheim.

(iii)With respect
to the Western Medical Center - Santa Ana, one (1) original $80,000,000 Deed of Trust executed and acknowledged by PCHI with
the legal description describing the fee simple interest in the Western Medical Center - Santa Ana.

(iv)With respect
to the Coastal Communities Hospital, one (1) original $80,000,000 Deed of Trust executed and acknowledged by PCHI with the
legal description describing the fee simple interest in the Coastal Communities Hospital.

(v)With respect
to the Chapman Medical Center:

(A)one (1) original
$80,000,000 Deed of Trust executed and acknowledged by IHHI with the legal description describing (1) the fee simple interest
in the Chapman Medical Center, and (2) IHHI’s interest, as MOB Tenant, in the Chapman MOB Lease; and

(B)one (1) original
$80,000,000 Deed of Trust executed and acknowledged by IHHI with the legal description describing (1) the fee simple interest
in the Chapman Medical Center, and (2) IHHI’s interest, as Hospital Tenant, in the Chapman Hospital Lease.

(vi)With respect
to the Western Medical Center - Anaheim, one (1) original Absolute Assignment of Leases and Rents executed and acknowledged
by PCHI, IHHI and WMC-A with the legal description describing the fee simple interest in the Western Medical Center - Anaheim.

(vii)With respect
to the Western Medical Center - Santa Ana, one (1) original Absolute Assignment of Leases and Rents executed and acknowledged
by PCHI, IHHI and WMC-SA with the legal description describing the fee simple interest in the Western Medical Center - Santa Ana.

(viii)With respect
to the Coastal Communities Hospital, one (1) original Absolute Assignment of Leases and Rents executed and acknowledged by
PCHI, IHHI and Coastal with the legal description describing the fee simple interest in the Coastal Communities Hospital.

    	23

    	 

    

(ix)With respect
to the Chapman Western Medical Center:

(A)one (1) original
Absolute Assignment of Leases and Rents executed and acknowledged by IHHI with the legal description describing (1) the fee
simple interest in the Chapman Medical Center, and (2) IHHI’s interest, as Hospital Tenant, in the Chapman Hospital
Lease; and

(B)one (1) original
Absolute Assignment of Leases and Rents executed and acknowledged by IHHI with the legal description describing (1) the fee
simple interest in the Chapman Medical Center, and (2) IHHI’s interest, as MOB Tenant, in the Chapman MOB Lease.

(x)Escrow Instructions
executed by each Borrower and each Credit Party and each Guarantor.

(xi)For each
Property, all UCC-1 Financing Statements (Fixture Filing) as are required by Closing Date Lender under the Loan Documents, naming
the applicable Person’s as Debtor.

(xii)All other
documents, resolutions, charter documents, affidavits and items required by any Title Company pursuant to and as set forth
in any Title Commitment.

(xiii)By 11:00
a.m. Los Angeles time on the Closing Date, Closing Date Lender and Borrowers shall deposit into Escrow any funds required by this
Agreement.

(d)Close of
Escrow; Recordation of Loan Documents. At such time as (i) Escrow Holder holds for the account of Closing Date Lender
each of the documents, instruments and funds set forth above; (ii) each Borrower, each Credit Party, each Guarantor and Closing
Date Lender have complied with their respective obligations under this Agreement and their respective Escrow Instructions; (iii) Escrow
Holder is prepared to close and consummate the transactions contemplated by the $50,000,000 Credit Agreement and has complied with
the escrow instructions by the parties to the $50,000,000 Credit Agreement; (iv) Escrow Holder is prepared to close and consummate
the transactions contemplated by the $10,700,000 Credit Agreement and has complied with the escrow instructions by the parties
to the $10,700,000 Credit Agreement; and (v) the Title Company is irrevocably prepared to issue and deliver each Title Policy
to Closing Date Lender on the Closing Date, then Escrow Holder shall close Escrow as follows:

(i)With respect
to fee simple interest at Western Medical Center -Anaheim, Escrow Holder will (1) release from record all existing Closing
Date Lender Liens re the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line of Credit Loan, the Previous Accounts
Receivable Purchase Agreement, and all Previous UCC-1 Financing Statements (Fixture Filings) except any Previous UCC-1 Financing
Statements (Fixture Filings) recorded against each of the Properties in conjunction with the Previous $10,700,000 Term Loan; (2) cause
the Western Medical Center - Anaheim $80,000,000 Deed of Trust to be recorded as a first Lien and encumbrance against the fee simple
title of the Western Medical Center - Santa Ana; (3) cause the Western Medical Center - Anaheim Absolute Assignment of Leases
and Rents to be recorded as a Lien and encumbrance against the fee simple title of the Western Medical Center -Anaheim; and (4) cause
the Western Medical Center - Anaheim UCC-1 Financing Statement (Fixture Filing) to be recorded, in each case subject only
to the applicable Permitted Exceptions.

    	24

    	 

    

(ii)With respect
to the fee simple interest at Western Medical Center — Santa Ana, Escrow Holder will (1) release from record all existing
Closing Date Lender Liens re the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line of Credit Loan, the Previous
Accounts Receivable Purchase Agreement, and all Previous UCC-1 Financing Statements (Fixture Filings) except any Previous UCC-1
Financing Statements (Fixture Filings) recorded against each of the Properties in conjunction with the Previous $10,700,000 Term
Loan; (2) cause the Western Medical Center - Santa Ana $80,000,000 Deed of Trust to be recorded as a first Lien and encumbrance
against the fee simple title of the Western Medical Center - Santa Ana; (3) cause the Western Medical Center - Santa Ana Absolute
Assignment of Leases and Rents to be recorded as a Lien and encumbrance against the fee simple title of the Western Medical Center
– Santa Ana; and (4) cause the Western Medical Center — Santa Ana UCC-1 Financing Statement (Fixture Filing)
to be recorded, in each case subject only to the applicable Permitted Exceptions.

(iii)With respect
to the fee simple interest at Coastal Communities Hospital, Escrow Holder will (1) release from record all existing Closing
Date Lender Liens re the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line of Credit Loan, the Previous Accounts
Receivable Purchase Agreement, and all Previous UCC-1 Financing Statements (Fixture Filings) except any Previous UCC-1 Financing
Statements (Fixture Filings) recorded against each of the Properties in conjunction with the Previous $10,700,000 Term Loan; (2) cause
the Coastal Communities Hospital $80,000,000 Deed of Trust to be recorded as a first Lien and encumbrance against the fee simple
title of the Coastal Communities Hospital; (3) cause the Coastal Communities Hospital Absolute Assignment of Leases and Rents
to be recorded as a Lien and encumbrance against the fee simple title of the Coastal Communities Hospital; and (4) cause the
Coastal Communities Hospital UCC-1 Financing Statement (Fixture Filing) to be recorded, in each case subject only to the applicable
Permitted Exceptions.

(iv)With respect
to IHHI’s interest, as MOB Tenant, in the Chapman MOB Lease at the Chapman Medical Center, Escrow Holder will (1) release
from record all existing Closing Date Lender Liens re the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line
of Credit Loan, the Previous Accounts Receivable Purchase Agreement, and all Previous UCC-1 Financing Statements (Fixture Filings)
except any Previous UCC-1 Financing Statements (Fixture Filings) recorded against each of the Properties in conjunction with the
Previous $10,700,000 Term Loan; (2) cause the Chapman Medical Center $80,000,000 Deed of Trust (Chapman MOB Lease) to be recorded
as a first Lien and encumbrance against IHHI’s interest, as MOB Tenant, in the Chapman MOB Lease; (3) cause the Chapman
Medical Center Absolute Assignment of Leases and Rents (Chapman MOB Lease) to be recorded as a Lien and encumbrance against IHHI’s
interest, as MOB tenant, in the Chapman MOB Lease; and (4) cause the Chapman Medical Center UCC-1 Financing Statement (Fixture
Filing) (Chapman MOB Lease) to be recorded against Chapman’s interest, as MOB Tenant, in the Chapman MOB Lease, in each case
subject only to the applicable Permitted Exceptions.

    	25

    	 

    

(v)With respect
to IHHI’s interest, as Hospital Tenant, in the Chapman Hospital Lease at the Chapman Medical Center, Escrow Holder will (1) release
from record all existing Closing Date Lender Liens re the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line
of Credit Loan, the Previous Accounts Receivable Purchase Agreement, and all Previous UCC-1 Financing Statements (Fixture Filings)
except any Previous UCC-1 Financing Statements (Fixture Filings) recorded against each of the Properties in conjunction with the
Previous $10,700,000 Term Loan; (2) cause the Chapman Medical Center $80,000,000 Deed of Trust (Chapman Hospital Lease) to
be recorded as a first Lien and encumbrance against IHHI’s interest, as Hospital Tenant, in the Chapman Hospital Lease; (3) cause
the Chapman Medical Center Absolute Assignment of Leases and Rents (Chapman Hospital Lease) to be recorded as a Lien and encumbrance
against IHHI’s interest, as Hospital tenant, in the Chapman Hospital Lease; and (4) cause the Chapman Medical Center
UCC-1 Financing Statement (Fixture Filing) (Chapman Hospital Lease) to be recorded against Chapman’s interest, as Hospital
Tenant, in the Chapman Hospital Lease, in each case subject only to the applicable Permitted Exceptions

(e)Distribution
of Funds and Documents by Escrow Holder at Closing. When Escrow Holder is in the position to close Escrow as required by Section 2.3(d)
(Close of Escrow; Recordation of Loan Documents) immediately above, but in no event later than the Closing Date, Escrow Holder
shall distribute funds and documents then on deposit in Escrow to Borrowers as set forth in Closing Date Lender ’s separate
escrow instructions.

(f)Distribution
of Documents by Escrow Holder.

(i)The original
and one (1) copy of each Closing Date Lender ’s Title Policy to Closing Date Lender.

(ii)A true and
correct copy of each of the $80,000,000 Deeds of Trust to Closing Date Lender (with a copy to Borrowers) as recorded.

(iii)A true
and correct copy of each of the Absolute Assignment of Leases and Rents to Closing Date Lender (with a copy to Borrowers) as recorded.

(iv)A true and
correct copy of each UCC-1 Financing Statement (Fixture Filing) to Closing Date Lender (with a copy to Borrowers) as recorded.

(v)Final settlement
statement to Closing Date Lender and to Borrowers with respect to distribution of amounts deposited into this Escrow. Even though
the following amounts were not deposited into Escrow, said final settlement statement shall list the total amount of the Advances
made by Closing Date Lender to Borrowers pursuant to this Agreement but which were withheld by Closing Date Lender to pay in full
the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line of Credit Loan, the Origination Fees and Closing Date
Lender ’s Costs.

    	26

    	 

    

(g)Distribution
of Documents by Closing Date Lender at Closing. When Escrow Holder has closed Escrow and distributed the documents and funds
as and when required by this Agreement, Closing Date Lender shall cause the documents then in its possession to be distributed
as follows:

(i)To Borrower’s
Representative: one (1) duplicate original counterpart of the Absolute Assignments of Leases and Rents; the Security Agreement;
the Collateral Assignments of Contracts; the Deposit Account Security Agreements; the Control Agreement; the Post-Closing Agreement;
the Intellectual Property Security Agreement; the Environmental Indemnity Agreement; the Guaranty Agreement; the Intercreditor
Agreement; the Pledge Agreement; the Stock Power; the Membership Power; the Landlord’s Consent and Estoppel Certificate (Chapman
MOB Lease); the Landlord’s Consent and Estoppel Certificate (Chapman Hospital Lease) and the Landlord’s Consent and
Estoppel Certificate (Triple Net Lease).

(ii)To Borrower’s
Representative: one (1) copy of the Existing Real Estate Term Note; one (1) copy of the promissory note evidencing the
$35,000,000 Non-Revolving Line of Credit Loan; and one (1) copy of the fairness opinion.

(iii)To Closing
Date Lender: one (1) duplicate original counterpart of the Absolute Assignments of Leases and Rents; the Security Agreement;
the Collateral Assignments of Contracts; the Deposit Account Security Agreements; the Control Agreement; the Post-Closing Agreement;
the Intellectual Property Security Agreement; the Environmental Indemnity Agreement; the Guaranty Agreement; the Intercreditor
Agreement; the Pledge Agreement; the Stock Power; the Membership Power; the Landlord’s Consent and Estoppel Certificate (Chapman
MOB Lease); the Landlord’s Consent and Estoppel Certificate (Chapman Hospital Lease); and the Landlord’s Consent and
Estoppel Certificate (Triple Net Lease).

(iv)To Closing
Date Lender: the original executed Existing Real Estate Term Note; the original executed promissory note evidencing the $35,000,000
Non-Revolving Line of Credit Loan; the original, executed Warrant; the original of each of the executed legal opinions; and the
original executed fairness opinion.

		3.	REPRESENTATIONS AND WARRANTIES

To induce Lenders
to make the Loans, Borrowers make the following representations and warranties to Lenders with respect to Borrowers; each Credit
Party makes the following representations and warranties to Lenders with respect to itself; and each Guarantor makes the following
representations and warranties to Lenders with respect to itself. Each and all of said representations and warranties (i) shall
be true, correct, complete and accurate on the Closing Date, on each subsequent funding date and on the Restatement Effective Date
(unless expressly limited to a particular date), and (ii) shall survive the execution and delivery of this Agreement (it being
understood, that, for purposes of any representation and warranty expressly made as of the Closing Date, each subsequent funding
date and the Restatement Effective Date with reference to, or qualified by, a Disclosure Schedule, such reference shall include
such updated version, if any, of such Disclosure Schedule as may be made effective (including by consent of Lender Agent for the
benefit of Lenders) pursuant to Section 5.6 (Supplemental Disclosure) on or before the Closing Date).

    	27

    	 

    

3.1Borrowers and
Credit Parties. 

(a)Corporate
Existence; Compliance with Applicable Laws.

(i)IHHI (1) is
a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada; (2) is registered
as a foreign corporation in the State of California and is qualified to do business in and is doing business in the State of California;
(3) is duly qualified to conduct business and is in good standing in each other jurisdiction where its ownership or lease
of property or the conduct of its business requires such qualification, except where the failure to be so qualified would not result
in exposure to losses or liabilities which could reasonably be expected to have a Material Adverse Effect; (4) has the requisite
power and authority and the legal right to own, pledge, mortgage, or otherwise encumber and operate its properties, to lease the
property it operates under lease and to conduct its business as now conducted or proposed to be conducted; (5) has applied
for all licenses, permits, consents or approvals from or by, and has made all material filings with, and has given all notices
to, all Governmental Authorities having jurisdiction, to the extent required for such ownership, operation and conduct; (6) is
in compliance with its bylaws; and (7) is in compliance in all material respects with all other Applicable Laws.

(ii)WMC-A, WMC-SA,
Coastal and Chapman are each (1) corporations duly organized, validly existing and in good standing under the laws of the
State of California; (2) doing business in the State of California; (3) duly qualified to conduct business and is in
good standing in each other jurisdiction where its ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified would not result in exposure to losses or liabilities which could reasonably
be expected to have a Material Adverse Effect; (4) has the requisite power and authority and the legal right to own, pledge,
mortgage, or otherwise encumber and operate its properties, to lease the property it operates under lease and to conduct its business
as now conducted or proposed to be conducted; (5) has applied for all licenses, permits, consents or approvals from or by,
and has made all material filings with, and has given all notices to, all Governmental Authorities having jurisdiction, to the
extent required for such ownership, operation and conduct; (6) is in compliance with its bylaws; and (7) is in compliance
in all material respects with all other Applicable Laws.

(iii)PCHI and
Ganesha are each (1) limited liability companies duly organized, validly existing and in good standing under the laws of the
State of California; (2) doing business in the State of California; (3) duly qualified to conduct business and is in
good standing in each other jurisdiction where its ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified would not result in exposure to losses or liabilities which could reasonably
be expected to have a Material Adverse Effect; (4) have the requisite power and authority and the legal right to own, pledge,
mortgage, or otherwise encumber and operate its properties, to lease the property it operates under lease and to conduct its business
as now conducted or proposed to be conducted; (5) have applied for all licenses, permits, consents or approvals from or by,
and has made all material filings with, and has given all notices to, all Governmental Authorities having jurisdiction, to the
extent required for such ownership, operation and conduct; (6) is in compliance with its operating agreement; and (7) is
in compliance in all material respects with all other Applicable Laws.

    	28

    	 

    

(iv)OC-PIN is
a limited liability company duly organized, validly existing and in good standing under the laws of the State of Nevada; (2) is
registered as a foreign limited liability company in the State of California and is qualified to do business in and is doing business
in the State of California; (3) is duly qualified to conduct business and is in good standing in each other jurisdiction where
its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so
qualified would not result in exposure to losses or liabilities which could reasonably be expected to have a Material Adverse Effect;
(4) has the requisite power and authority and the legal right to own, pledge, mortgage, or otherwise encumber and operate
its properties, to lease the property it operates under lease and to conduct its business as now conducted or proposed to be conducted;
(5) has applied for all licenses, permits, consents or approvals from or by, and has made all material filings with, and has
given all notices to, all Governmental Authorities having jurisdiction, to the extent required for such ownership, operation and
conduct; (6) is in compliance with its operating agreement; and (7) is in compliance in all material respects with all
other Applicable Laws.

(b)Executive
Office, Collateral Locations, FEIN. As of the Closing Date, the name of each Borrower and each Credit Party and each Guarantor,
as its name appears in official filings in the States of Nevada and California (as applicable), and the current location of each
Borrower’s and each Credit Party’s and each Guarantor’s chief executive office and the premises at which any
Collateral is located are set forth in Disclosure Schedule 3.1B. None of such locations has changed within the four
(4) months preceding the Closing Date (except that Collateral may have been transferred from one Hospital Facility to another
during said period) and each Borrower and Credit Party and each Guarantor has only one state of incorporation or organization and
has not changed the state of incorporation or organization at any time within the five (5) year period prior to the Closing
Date. During the preceding five (5) years, no Borrower and no Credit Party and no Guarantor has conducted business under or
used any name (whether corporate, partnership or assumed) other than as shown on Schedule 3.1A. Each Borrower and each
Credit Party and each Guarantor is the sole owner of all of its names listed on Schedule 3.1A, and any and all business
done and invoices issued in such names are such Borrower’s and/or such Credit Party’s and such Guarantor’s sales,
business and invoices. Each trade name of each Borrower and each Credit Party and each Guarantor represents a division or trading
style of such Borrower and/or such Credit Party and/or such Guarantor. All Accounts of each Borrower and each Credit Party (other
than Ganesha) and each Guarantor (other than Ganesha) arise, originate and are located, and all of the Collateral and all books
and records in connection therewith or in any way relating thereto or evidencing the Collateral are located and shall only be located,
in and at such locations other than goods in transit and immaterial amounts of property. All of the Collateral is located only
in the continental United States. Each Borrower’s and each Credit Party’s (other than Ganesha) and each Guarantor’s
(other than Ganesha) Medicare and Medicaid Provider Numbers are set forth on Schedule 3.1A. In addition, Disclosure
Schedule 3.1A lists the federal employer identification number of each Borrower and each Credit Party and each Guarantor.

    	29

    	 

    

3.2Power,
Authorization, Enforceable Obligations. The execution, delivery and performance by Borrowers of the Loan Documents to which
it is a party and the creation of all Liens provided for therein: (a) are within such Person’s power; (b) have
been duly authorized by all necessary corporate or limited liability company action; (c) do not contravene any provision
of such Person’s bylaws or operating agreement; (d) do not violate any law or regulation, or any order or decree of
any court or Governmental Authority; (e) do not conflict with or result in the breach or termination of, constitute a default
under or accelerate or permit the acceleration of any performance required by, any indenture, mortgage, deed of trust, lease,
agreement or other instrument to which such Person is a party or by which such Person or any of its property is bound; (f) do
not result in the creation or imposition of any Lien upon any of the property of such Person other than those in favor of Lender
Agent for the benefit of Lenders pursuant to the Loan Documents; and (g) do not require the consent or approval of any Governmental
Authority or any other Person, except those referred to in Section 2.1(b) (Approvals), all of which will have been
duly obtained, made or complied with prior to the Closing Date. Each of the Loan Documents shall be duly executed and delivered
by Borrowers and Credit Parties and each such Loan Document shall constitute a legal, valid and binding obligation of Borrowers
and Credit Parties enforceable against it in accordance with its terms. Credit Parties hereby make the foregoing representations
and warranties in clauses (d), (e), (f) and (g) of this Section 3.2 (Power, Authorization, Enforceable
Obligations) with respect to the execution, delivery and performance by Credit Parties of the Loan Documents to which Credit Parties
are a party and the creation of all Liens provided for therein.

3.3Financial
Statements and Projections. Except for the Projections, all Financial Statements delivered to Lender Agent for the benefit
of Lenders by Borrowers that are referred to below have been prepared in accordance with GAAP consistently applied throughout
the periods covered (except as disclosed therein and except, with respect to unaudited Financial Statements, for the absence of
footnotes and normal year-end audit adjustments) and present fairly in all material respects the financial position of Borrowers
as of the dates thereof and the results of their operations and cash flows for the periods then ended. Credit Parties (other than
Ganesha) hereby represent and warrant to Lenders that all financial statements delivered to Lender Agent for the benefit of Lenders
by Credit Parties present fairly in all material respects the financial position of the Credit Parties as of the dates thereof,
and since the date of the most recent financial statements submitted to Lender Agent for the benefit of Lenders, there has not
occurred any Material Adverse Effect or, to Credit Parties’ knowledge, any other event or condition that would reasonably
be likely to have a Material Adverse Effect.

(a)Financial
Statements. The Financial Statements which have been delivered by Borrowers to Lender Agent for the benefit of Lenders on or
before the date hereof are comprised of:

(i)The consolidated,
unaudited balance sheets of Borrowers as of September 30, 2012, and the related statements of income and cash flows of Borrowers
for the six (6) month period then ended.

(ii)The unaudited
balance sheet(s) at September 30, 2012 of Borrowers and the related consolidated statement(s) of income and cash flows of Borrowers
for the Fiscal Quarter then ended.

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(b)Pro Forma.
The pro forma financial statements which have been delivered by Borrowers to Lender Agent for the benefit of Lenders on or before
the date hereof were prepared by Borrowers giving pro forma effect to the Related Transactions, was based on the unaudited consolidated
and consolidating balance sheets of Borrowers and its Subsidiaries, and were prepared in accordance with GAAP (to the extent applicable),
with only such adjustments thereto as would be required in accordance with GAAP.

(c)Projections.
All Projections which have been delivered by Borrowers to Lender Agent for the benefit of Lenders were prepared by Borrowers in
light of Borrower’s past experience, but including reasonably estimated future payments of known contingent liabilities,
and reflect projections on an annual basis for 2012/2013. The Projections are based upon the same accounting principles as those
used in the preparation of the financial statements described above with certain normalizing assumptions made by Borrowers, and
the estimates and assumptions stated therein, all of which Borrowers believe to be reasonable and fair in light of current conditions
and current facts known to Borrowers and, as of the Restatement Effective Date, reflect Borrower’s good faith and reasonable
estimates of the future financial performance of Borrowers for the period set forth therein.

3.4Material
Adverse Effect. 

(a)Borrowers.
The Borrowers hereby represent to Lenders that, between the Effective Date and the Closing Date: (i) to the best of Borrower’s
knowledge, after due inquiry, there has not been any material increase in contingent or noncontingent liabilities, liabilities
for Charges, or obligations with respect to long-term leases or unusual forward or long-term commitments of Borrowers, (ii) to
the best of Borrower’s knowledge, after due inquiry, there has not been any material decrease in the assets of Borrowers,
(iii) no contract, lease or other agreement or instrument has been entered into by Borrowers or has become binding upon Borrower’s
assets and, to the knowledge of Borrowers, no law or regulation applicable to Borrowers has been adopted that has had or could
reasonably be expected to have a Material Adverse Effect with respect to Borrowers or the Collateral, (iv) to the best of
Borrower’s knowledge, after due inquiry, neither Borrowers nor any of the Credit Parties is in default under any material
contract, lease or other agreement or instrument, that alone or in the aggregate could reasonably be expected to have a Material
Adverse Effect with respect to Borrowers or the Collateral, and (v) to the best of Borrower’s knowledge, after due inquiry,
no event has occurred, that alone or together with other events, has had, or could reasonably be expected to have, a Material Adverse
Effect with respect to Borrowers or the Collateral.

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(b)Credit Parties.
The Credit Parties (other than Ganesha) hereby represent to Lenders that, between the Effective Date and the Closing Date: (i) to
the best of each Credit Party’s knowledge, there has not been any material increase in contingent or noncontingent liabilities,
liabilities for Charges, or obligations with respect to long-term leases or unusual forward or long-term commitments of Borrowers,
(ii) to the best of each Credit Party’s knowledge, there has not been any material decrease in the assets of any Credit
Party, (iii) no contract, lease or other agreement or instrument has been entered into by any Credit Party or has become binding
upon Credit Parties assets and, to the knowledge of Credit Parties, no law or regulation applicable to Credit Parties or to Borrowers
has been adopted that has had or could reasonably be expected to have a Material Adverse Effect with respect to Credit Party’s
or Borrowers or the Collateral, (iv) to the best of each Credit Party’s knowledge, neither Borrowers nor any of the
Credit Parties is in default under any material contract, lease or other agreement or instrument, that alone or in the aggregate
could reasonably be expected to have a Material Adverse Effect with respect to Borrowers or the Credit Parties or the Collateral,
and (v) to the best of each Credit Party’s knowledge, no event has occurred, that alone or together with other events,
has had, or could reasonably be expected to have, a Material Adverse Effect with respect to Borrowers or the Credit Parties or
the Collateral.

3.5Ownership of
Collateral; Liens. Borrowers and Credit Parties (other than Ganesha) (a) each separately own good, valid and marketable
title to or a valid leasehold interest in, all of its properties and assets, including all of its Collateral whether personal or
real, subject to no transfer restrictions or Liens of any kind except for Permitted Encumbrances, and (b) is in compliance
in all material respects with each lease to which it is a party or otherwise bound. None of the Collateral is subject to any Liens
other than Permitted Encumbrances, and there are no facts, circumstances or conditions known to Borrowers or to Credit Parties
that may result in any Liens (including Liens arising under Environmental Laws or other Applicable Laws) other than Permitted Encumbrances.
Disclosure Schedule 3.5 attached hereto sets forth a list of all real estate and leases to be owned or held by Borrowers
immediately after the Closing Date. Each Borrower enjoys peaceful and undisturbed possession under all such leases and such leases
are all the leases necessary for the operation of such properties and assets are valid and subsisting and are in full force and
effect.

3.6Labor Matters.
Except as set forth on Disclosure Schedule 3.6, as of the Closing Date, (a) no strikes or other material labor
disputes against Borrowers are pending or, to any Borrower’s or to any Credit Party’s knowledge, threatened; (b) hours
worked by and payment made to employees of Borrowers comply in all material respects with the Fair Labor Standards Act and other
Applicable Laws; (c) all payments due from Borrowers for employee health and welfare insurance have been paid or accrued as
a liability on the books of Borrowers; (d) Borrowers are not a party to or bound by any collective bargaining agreement, management
agreement, consulting agreement, employment agreement, bonus, restricted stock, stock option, or stock appreciation plan or agreement
or any similar plan, agreement or arrangement unless true and complete copies of any agreements described on Disclosure Schedule 3.6
have been delivered to Lenders; (e) there is no organizing activity involving Borrowers pending or, to Borrower’s or
Credit Party’s knowledge, threatened by any labor union or group of employees of Borrowers; (f) except as otherwise
disclosed on Disclosure Schedule 3.6, there are no representation proceedings pending or, to Borrower’s or Credit
Party’s knowledge, threatened with the National Labor Relations Board, and no labor organization or group of employees of
any Borrower has made a pending demand for recognition; and (g) there are no material complaints or charges against any Borrower
pending or, to the knowledge of Borrowers or Credit Parties, threatened to be filed with any Governmental Authority or arbitrator
based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment by any Borrower
of any individual.

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3.7Ventures,
Subsidiaries and Affiliates; Outstanding Stock. Except as listed on Disclosure Schedule 3.7, the Borrowers and
the Credit Parties have no Subsidiaries. Disclosure Schedule 3.7 states the authorized and issued capitalization of
each Borrower and of each Credit Party (other than Ganesha), the number and class of equity securities and/or ownership, voting
or partnership interests issued and outstanding of each Borrower and each Credit Party (other than Ganesha) and the record and
beneficial owners thereof (including options, warrants and other rights to acquire any of the foregoing). The ownership or partnership
interests of each Credit Party are not certificated, the documents relating to such interests do not expressly state that the
interests are governed by Article 8 of the Uniform Commercial Code, and the interests are not held in a securities account.
The outstanding equity securities and/or ownership, voting or partnership interests of each Borrower and each Credit Party (other
than Ganesha) have been duly authorized and validly issued and are fully paid and non-assessable, and with respect to equity pledged
to Lender Agent for the benefit of the Lenders, each Person listed on Disclosure Schedule 3.7 owns beneficially and
of record all the equity securities and/or ownership, voting or partnership interests it is listed as owning free and clear of
any Liens other than Liens created by the Collateral Documents and Liens created under the A/R Facility. Disclosure Schedule 3.7
also lists the directors, members, managers and/or partners of each Borrower and each Credit Party (other than Ganesha). Except
as listed on Disclosure Schedule 3.7, no Credit Party (other than Ganesha) owns an interest in, participates in or
engages in any joint venture, partnership or similar arrangements with any Person. Except as set forth in Disclosure Schedule 3.7,
as of the Closing Date, there are no outstanding rights to purchase, options, warrants or similar rights or agreements pursuant
to which any Borrower or any Credit Party (other than Ganesha) has issued or may be required to issue, sell, repurchase or redeem
any of its Stock. All outstanding Indebtedness and Guaranteed Indebtedness of Borrowers and Credit Parties (other than Ganesha)
as of the Closing Date identified in Section 6.3 (Indebtedness) is described in Disclosure Schedule 6.3.

3.8Government
Regulation. No Borrower is an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company
Act of 1940. No Borrower is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power
Act, or any other federal or state statute that restricts or limits its ability to incur Indebtedness or to perform its obligations
hereunder. The making of the Loans by Lenders to Borrowers, the application of the proceeds thereof and repayment thereof and
the consummation of the Related Transactions will not violate any provision of any such statute or any rule, regulation or order
issued by the Securities and Exchange Commission or other Applicable Laws binding on Borrowers.

3.9Margin
Regulations. Borrowers are not engaged, nor will they engage, principally or as one of its important activities, in the business
of extending credit for the purpose of “purchasing” or “carrying” any “margin stock” as such
terms are defined in Regulation U of the Federal Reserve Board as now and from time to time hereafter in effect. Borrowers
do not own any margin stock, and none of the proceeds of the Loans or other extensions of credit under this Agreement will be
used, directly or indirectly, for the purpose of purchasing or carrying any margin stock, for the purpose of reducing or retiring
any Indebtedness that was originally incurred to purchase or carry any stock or for any other purpose that might cause the Loans
or other extensions of credit under this Agreement to be considered a “purpose credit” within the meaning of Regulations T,
U or X of the Federal Reserve Board. Borrowers will not take or permit to be taken any action that might cause any Loan Document
to violate any regulation of the Federal Reserve Board. Each Credit Party (other than Ganesha) hereby makes the foregoing representations,
warranties and covenants to Lenders set forth in this Section 3.9 (Margin Regulations) with respect to such Credit
Party.

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3.10Taxes.
Except as described in Disclosure Schedule 3.10, all Federal and other material tax returns, reports and statements,
including information returns, required by any Governmental Authority to be filed by Borrowers have been filed with the appropriate
Governmental Authority, and all Charges have been paid prior to the date on which any fine, penalty, interest or late charge may
be added thereto for nonpayment thereof excluding Charges or other amounts being contested in accordance with Section 5.2(b)
(Right to Contest Charges) and unless the failure to so file or pay would not reasonably be expected to result in fines, penalties
or interest in excess of $100,000 in the aggregate. Proper and accurate amounts have been withheld by Borrowers for all periods
in full and complete compliance with all applicable federal, state, local and foreign laws and such withholdings have been timely
paid to the respective Governmental Authorities. Disclosure Schedule 3.10 sets forth as of the Closing Date and the
Closing Date those taxable years for which each Borrower’s tax returns are currently being audited by the IRS or any other
applicable Governmental Authority, and any assessments or threatened assessments in connection with such audit, or otherwise currently
outstanding. Except as described in Disclosure Schedule 3.10, as of the Closing Date, no Borrower has executed or
filed with the IRS or any other Governmental Authority any agreement or other document extending, or having the effect of extending,
the period for assessment or collection of any Charges. Borrowers are not liable for any Charges: (a) under any agreement
(including any tax sharing agreements) or (b) to Borrower’s and Credit Party’s knowledge, as a transferee. As
of the Closing Date, Borrowers have not agreed or been requested to make any adjustment under IRC Section 481(a), by reason
of a change in accounting method or otherwise. Each Credit Party (other than Ganesha) hereby make the foregoing representations,
warranties and covenants to Lenders set forth in this Section 3.10 (Taxes) with respect to all Charges and tax
returns of such Credit Party.

3.11ERISA.

(a)Disclosure
Schedule 3.11 lists, as of the Closing Date, for each Borrower (i) all ERISA Affiliates and (ii) all Plans and
separately identifies all Pension Plans, including Title IV Plans, Multiemployer Plans, and all Retiree Welfare Plans. Copies
of all such listed Plans have been delivered to Lenders. Except with respect to Multiemployer Plans, each Qualified Plan has been
determined by the IRS to qualify under Section 401 of the IRC, the trusts created thereunder have been determined to be exempt
from tax under the provisions of Section 501 of the IRC, and nothing has occurred that would cause the loss of such qualification
or tax-exempt status. Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the IRC and
its terms, including the timely filing of all reports required under the IRC or ERISA. Neither any Borrower nor any ERISA Affiliate
has failed to make any material contribution or pay any material amount due as required by either Section 412 of the IRC or
Section 302 of ERISA or the terms of any such Plan. No “prohibited transaction,” as defined in Section 406
of ERISA and Section 4975 of the IRC, has occurred with respect to any Plan, that would subject any Borrower to a material
tax on prohibited transactions imposed by Section 502(i) of ERISA or Section 4975 of the IRC.

(b)Except as set
forth in Disclosure Schedule 3.11: (i) no Title IV Plan has any material Unfunded Pension Liability; (ii) no
ERISA Event has occurred or is reasonably expected to occur; (iii) there are no pending, or to the knowledge of Borrowers,
threatened material claims (other than claims for benefits in the normal course), sanctions, actions or lawsuits, asserted or instituted
against any Plan or any Person as fiduciary or sponsor of any Plan; (iv) neither any Borrower nor any ERISA Affiliate has
incurred or reasonably expects to incur any material liability as a result of a complete or partial withdrawal from a Multiemployer
Plan; and (v) within the last five years no Title IV Plan of any Borrower or any ERISA Affiliate has been terminated,
whether or not in a “standard termination” as that term is used in Section 4041 of ERISA, nor has any Title IV
Plan of any Borrower or any ERISA Affiliate (determined at any time within the last five years) with material Unfunded Pension
Liabilities been transferred outside of the “controlled group” (within the meaning of Section 4001(a)(14( of ERISA)
of any Borrower or any ERISA Affiliate (determined at such time).

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3.12No Litigation.
Except as set forth in Disclosure Schedule 3.12A, no Litigation, action, claim, lawsuit, demand, investigation or proceeding
is now pending or, to the knowledge of Borrowers or Credit Parties, threatened against Borrowers, before any Governmental Authority
or before any arbitrator or panel of arbitrators, (a) that challenges the execution, delivery and performance of Borrower’s
or Credit Party’s right or power to enter into or perform any of its obligations under the Loan Documents to which it is
a party, or the validity or enforceability of any Loan Document or any action taken thereunder, or (b) that has a reasonable
risk of being determined adversely to Borrowers or Credit Parties and that, if so determined, could reasonably be expected to have
a Material Adverse Effect. Except as set forth on Disclosure Schedule 3.12B, as of the Closing Date there is no Litigation
pending or, to Borrower’s or Credit Party’s knowledge, threatened, that seeks damages in excess of One Hundred Thousand
Dollars ($100,000) or injunctive relief against, or alleges criminal misconduct of, Borrowers.

3.13Brokers.
Except as set forth on Disclosure Schedule 3.13, no broker or finder brought about the obtaining, making or closing
of the Loans or the Related Transactions, and neither Borrowers nor any Affiliates thereof has any obligation to any Person in
respect of any finder’s or brokerage fees in connection therewith.

3.14Intellectual
Property. As of the Closing Date, Borrowers own or will own, and have or will have, rights to use all Intellectual Property
necessary to continue to conduct its business as now conducted by it or presently proposed to be conducted by it, and each Patent,
Trademark, registered Copyright and License is listed, together with application or registration numbers, as applicable, in Disclosure
Schedule 3.14. Borrowers conduct their businesses and affairs without knowingly infringing or interfering with any Intellectual
Property of any other Person which could reasonably be expected to have a Material Adverse Effect. Except as set forth in Disclosure
Schedule 3.14, neither Borrowers nor Credit Parties is aware of any material infringement claim by any other Person with
respect to any Intellectual Property.

3.15Full
Disclosure. All representations and warranties made in any of the Loan Documents by Borrowers or Credit Parties or Guarantors
shall be made after giving full effect to the transactions contemplated in this Agreement. No information contained in this Agreement,
any of the other Loan Documents, Financial Statements or Collateral Reports or other written reports from time to time prepared
by Borrowers or Credit Parties or Guarantors and delivered hereunder or any written statement prepared by Borrowers or Credit
Parties or Guarantors and furnished by or on behalf of Borrowers or Credit Parties or Guarantors to Lender Agent for the benefit
of Lenders pursuant to the terms of this Agreement contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary to make the statements contained herein or therein not materially misleading in light
of the circumstances under which they were made. Projections from time to time delivered hereunder are or will be based upon the
estimates and assumptions stated therein, all of which Borrowers and Credit Parties (other than Ganesha) and Guarantors (other
than Ganesha), as applicable, believed at the time of delivery to be reasonable and fair in light of current conditions and current
facts known to Borrowers and Credit Parties (other than Ganesha) and Guarantors (other than Ganesha), as applicable, as of such
delivery date, and reflect Borrower’s and Credit Party’s (other than Ganesha’s) and Guarantor’s (other
than Ganesha’s) good faith and reasonable estimates of the future financial performance of Borrowers and of the other information
projected therein for the period set forth therein. The Liens granted to Lender Agent for the benefit of Lenders pursuant to the
Collateral Documents will at all times be fully perfected first priority Liens in and to the Collateral described therein, subject,
as to priority, only to Permitted Encumbrances.

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3.16Environmental
Matters. Each Borrower and each Credit Party (other than Ganesha) and each Guarantor represent and warrant to Lenders as follows:

(a)Except as set
forth in Disclosure Schedule 3.16, as of the date hereof, no Borrower and no Credit Party and no Guarantor knows of
any Hazardous Material which is present, used, manufactured, handled, generated, transported, stored, treated, discharged, released,
buried or disposed of on, in, under or about any Property in violation of applicable Environmental Laws;

(b)To the best
of each Borrower’s and each Credit Party’s and each Guarantor’s knowledge, following diligent inquiry, there
has not been any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Material
by any prior owners of prior occupants of any Property or by any third parties on, in, under or about any Property;

(c)As of the date
hereof there is no pending or, to each Borrower’s and each Credit Party’s and each Guarantor’s knowledge, threatened
litigation or proceedings before any administrative agency in which any person or entity alleges the release, threat of release,
placement on, under or about any Property by any Borrower or any Credit Party or any Guarantor, or the manufacture, handling, generation,
transportation, storage, treatment, discharge, burial or disposal on, in, under or about any Property by any Borrower or any Credit
Party or any Guarantor, or the transportation to or from any Property by any Borrower or any Credit Party or any Guarantor, of
any Hazardous Material, in violation of Environmental Laws;

(d)As of the date
hereof, no Borrower and no Credit Party and no Guarantor has received any notice and no Borrower and no Credit Party and no Guarantor
has any actual knowledge that any Governmental Authority or any employee or agent thereof been determined, or threatens to determine,
that there is a presence, release, threat of release, placement on, in, under or about any Property caused by any Borrower or by
any Credit Party or by any Guarantor, or the manufacture, handling, generation, transportation, storage, treatment, discharge,
burial or disposal on, in, under or about any Property caused by any Borrower or any Credit Party or any Guarantor, or the transportation
to or from any Property by any Borrower or any Credit Party or any Guarantor, of any Hazardous Material, in violation of Environmental
Laws; and

(e)To each Borrower’s
and each Credit Party’s and each Guarantor’s knowledge, there have been no communications or agreements with any Governmental
Authority or any private entity indicating that there has occurred, a release, threat of release, placement on, in, under or about
any Property by any Borrower or any Credit Party or any Guarantor, or the manufacture, handling, generation, transportation, storage,
treatment, discharge, burial or disposal on, in, under or about any Property by any Borrower or any Credit Party or any Guarantor,
or the transportation to or from any Property by any Borrower or by any Credit Party or by any Guarantor, of any Hazardous Material
in violation of any Environmental Laws.

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3.17Insurance.
Disclosure Schedule 3.17 lists all insurance policies of any nature maintained, as of the Closing Date, for current
occurrences by Borrowers, as well as a brief description thereof, and a copy of each current certificate of insurance naming Lender
Agent for the benefit of Lenders as an additional co-insured.

3.18Deposit
and Disbursement Accounts. Disclosure Schedule 3.18 lists all banks and other financial institutions at which
Borrowers maintain or will maintain deposit, commodities, investment or other accounts as of each of the Closing Date, including
any Disbursement Accounts, and such Schedule correctly identifies the name, address and telephone number of each depository, the
name in which the account is held, a description of the purpose of the account, and the complete account number therefor. Disclosure
Schedule 3.18 shall, as of the Closing Date, identify which deposit accounts of each entity are used to receive Governmental
Authority payments.

3.19Vendor
Relations. As of the Closing Date, there exists no actual or, to the knowledge of Borrowers or Credit Parties or Guarantors,
threatened termination or cancellation of, or any material adverse modification or change in the business relationship of Borrowers
with any supplier essential to its operations.

3.20Bonding;
Licenses; Permits. Except as set forth on Disclosure Schedule 3.20, as of the Closing Date, no Borrower is a party
to or bound by any surety bond agreement or bonding requirement with respect to products or services sold by it or any trademark
or patent license agreement with respect to products sold by it. Disclosure Schedule 3.20 lists, as of the Closing
Date, each permit each Borrower is required to obtain and maintain in order to conduct its respective Business in its respective
Hospital Facility. Each Borrower has all permits required to conduct its business, each of which is in full force and effect and
is not the subject of any pending or to its knowledge, threatened withdrawal.

3.21Solvency.
Both before and after giving effect to (a) the Loans to be made or incurred on the Closing Date or such other date as Advances
are made or incurred, (b) the disbursement of the proceeds of such Advances pursuant to the instructions of Borrower’s
Representative; (c) the consummation of the other Related Transactions; and (d) the payment and accrual of all transaction
costs in connection with the foregoing, Borrowers are each and will be Solvent.

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		4.	FINANCIAL STATEMENTS AND INFORMATION

4.1Reports and Notices.

(a)Borrowers hereby
agree that, from and after the Closing Date and until the Termination Date, they shall deliver to Lender Agent for the benefit
of Lenders, the various Collateral Reports at the times, to the Persons and in the manner set forth in Annex D (Notice
Addresses) including all certifications required with respect to Certified Cash balances.

(b)Borrowers hereby
agree that, from and after the Restatement Effective Date and until the Termination Date, they shall deliver to Lenders, copies
of each Borrowing Base Certificate (as defined in the A/R Facility) delivered to the A/R Facility Lender Agent.

4.2Communication
with Accountants. Borrowers and Credit Parties authorize Lenders to communicate and/or meet directly with all independent
certified public accountants of Borrowers, and Borrowers shall authorize and shall instruct those accountants to communicate and/or
meet with Lenders with regard to any and all financial statements and supporting financial documentation relating to Borrowers
with respect to the business, results of operations and financial condition of Borrowers. Prior to communicating with the independent
public accounts of Borrowers, Lenders shall deliver a reasonable advance written notice to Borrowers stating the purpose and scope
of the communication and/or meeting.

		5.	AFFIRMATIVE COVENANTS

 

To induce Lenders
to make the Loans, Borrowers and Credit Parties and Guarantors, as applicable, make the following affirmative covenants in favor
of Lenders, each of which shall survive the execution and delivery of this Agreement.

5.1Maintenance
of Existence and Conduct of Business. Borrowers and Credit Parties and Guarantors shall do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate and/or limited liability company existence and its material
rights; continue to conduct its business substantially as conducted prior to the Closing Date, anticipated to be conducted, or
as otherwise permitted hereunder; at all times maintain, preserve and protect all of their assets and properties necessary to
the conduct of its business, and keep the same in good repair, working order and condition in all material respects (taking into
consideration ordinary wear and tear) and from time to time make, or cause to be made, all necessary or appropriate repairs, replacements
and improvements thereto consistent with industry practices.

5.2Payment
of Charges. 

(a)Obligation to Pay
Charges. Subject to Section 5.2(b) (Right to Contest Charges), Borrowers shall pay and discharge or cause to be
paid and discharged promptly all Charges payable by them, including (i) Charges imposed upon them, their income and profits,
or any of their property (real, personal or mixed) and all Charges with respect to Taxes, social security and unemployment withholding
with respect to their employees, (ii) lawful claims for labor, materials, supplies and services or otherwise, and (iii) all
storage or rental charges payable to warehousemen or bailees in possession of any Collateral, in each case, before any thereof
shall become past due, except in the case of clauses (ii) and (iii) where the failure to pay or discharge such Charges
would not result in aggregate liabilities in excess of $100,000.

 

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(a)Right
to Contest Charges. Borrowers may in good faith contest, by appropriate proceedings, the validity or amount of any Charges,
Taxes or claims described in Section 5.2(a) (Obligation to Pay Charges); provided, that (i) adequate reserves
with respect to such contest are maintained on the books of Borrowers, in accordance with GAAP; (ii) no Lien shall be imposed
to secure payment of such Charges (other than payments to warehousemen and/or bailees) that is superior to any of the Liens securing
the Obligations and such contest is maintained and prosecuted continuously and with diligence and operates to suspend collection
or enforcement of such Charges; (iii) none of the Collateral becomes subject to forfeiture or loss as a result of such contest;
and (iv) Borrowers shall promptly pay or discharge such contested Charges, Taxes or claims and all additional charges, interest,
penalties and expenses, if any, and shall deliver to Lenders evidence reasonably acceptable to Lenders of such compliance, payment
or discharge, if such contest is terminated or discontinued adversely to Borrowers or the conditions set forth in this Section 5.2(b)
(Right to Contest Charges) are no longer met.

5.3Books
and Records. Borrowers shall keep adequate books and records with respect to their business activities in which proper entries,
reflecting all financial transactions, are made in accordance with GAAP (except as otherwise disclosed on the Financial Statements).

5.4Insurance;
Damage to or Destruction of Collateral.

(a)Insurance.
Borrowers shall, upon Lender Agent’s request, in Disclosure Schedule 3.17, list all existing policies of insurance
that they carry and maintain, along with the names and contact information for each existing insurance carrier, which policies
and carriers shall be subject to the prior written consent of Lender Agent, which consent shall not be unreasonably withheld. If
Lender Agent fails or refuses to approve Borrower’s existing policies of insurance or existing insurance carriers, then Borrowers
agrees to increase or change its insurance coverage or change its insurance carrier as required by Lenders, and the same shall
be listed in Disclosure Schedule 3.17. Thereafter, Borrowers shall, at its sole cost and expense, maintain the policies
of insurance described on Disclosure Schedule 3.17 as approved by Lender Agent for the benefit of Lenders or may obtain
and maintain other policies of insurance in form and amounts and with insurers reasonably acceptable to Lender Agent. All policies
of insurance (or the loss payable and additional insured endorsements delivered to Lender Agent) that relate to coverage involving
the Collateral shall contain provisions pursuant to which the insurer agrees to provide thirty (30) days prior written notice
to Lender Agent in the event of any non-renewal, cancellation or amendment of any such insurance policy. If Borrowers at any time
or times hereafter shall fail to obtain or maintain any of the policies of insurance required above, or to pay all premiums relating
thereto, Lender Agent may at any time or times thereafter obtain and maintain such policies of insurance and pay such premiums
and take any other action with respect thereto that Lender Agent deem advisable. Lenders and Lender Agent shall have no obligation
to obtain insurance for Borrowers or pay any premiums therefor. By doing so, Lenders shall not be deemed to have waived any Default
or Event of Default arising from Borrower’s failure to maintain such insurance or pay any premiums therefore. All sums so
disbursed, including reasonable attorneys’ fees, court costs and other charges related thereto, shall be payable on demand
by Borrowers to Lender Agent for the benefit of Lenders and shall be additional Obligations hereunder secured by the Collateral,
and shall bear interest at the Default Rate until paid in full to Lenders.

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(b)Lenders’
Insurance Rights. Upon any change in Borrower’s insurance risk profile (as determined by Borrower’s insurance broker
or as reasonably determined by Lenders pursuant to and based upon generally recognized insurance underwriting standards (including
changes caused by changes in laws affecting the potential liability of a Borrowers), Lenders reserves the right to require additional
forms and limits of insurance to, in Lenders’ reasonable opinion, adequately protect Lenders’ interests and Lien in
all or any portion of the Collateral and to ensure that Borrowers are protected by insurance in amounts and with coverage customary
for its industry. If reasonably requested by Lenders, Borrowers shall to deliver to Lenders from time to time a report of a reputable
insurance broker, reasonably satisfactory to Lenders, with respect to its insurance policies.

(c)Endorsements.
Borrowers shall deliver to Lenders, in form and substance reasonably satisfactory to Lenders, endorsements to all general liability
and other liability policies naming Lender Agent as an additional insured. Borrowers shall irrevocably make, constitute and appoint
Lender Agent (and all officers, employees of Lenders designated by Lender Agent), so long as any Default or Event of Default has
occurred and is continuing, as each Borrower’s true and lawful agent and attorney-in-fact for the purpose of making, settling
and adjusting claims under all policies of insurance relating to coverage of the Collateral, endorsing the name of Borrowers on
any check or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions
with respect to such policies of insurance. Lender Agent shall have no duty to exercise any rights or powers granted to it pursuant
to the foregoing power-of-attorney. Borrower’s Representative shall promptly notify Lender Agent of any loss, damage, or
destruction to the Collateral in the amount of $100,000 or more, whether or not covered by insurance. After deducting from such
proceeds (i) the expenses incurred by Lenders in the collection or handling thereof, and (ii) amounts required to be
paid to creditors (other than Lenders) having Permitted Encumbrances, Lenders may, at their option, apply such proceeds to the
reduction of the Obligations in accordance with Section 1.3(c) (Application of Prepayments). Notwithstanding the foregoing,
if the casualty giving rise to such insurance proceeds could not reasonably be expected to have a Material Adverse Effect, Lenders
shall permit Borrowers to replace, restore, repair or rebuild the property.

5.5Compliance
with Applicable Laws. Borrowers shall comply in all material respects with all federal, state, local and foreign laws and
regulations applicable to it, including those relating to ERISA, labor laws, Environmental Laws and Environmental Permits.

5.6Supplemental
Disclosure. On the Closing Date, and thereafter from time to time as may be reasonably requested by Lenders, Borrowers shall
supplement and update each Disclosure Schedule attached to this Agreement, or any representation herein or in any other Loan Document,
with respect to any matter hereafter arising that, if existing or occurring on the Closing Date, would have been required to be
set forth or described in such Disclosure Schedule or as an exception to such representation or that is necessary to correct any
information in such Disclosure Schedule or representation which has been rendered inaccurate thereby (and, in the case of any
supplements or updates to any Disclosure Schedule, such Disclosure Schedule shall be appropriately marked to show the changes
made therein); provided that (a) no such supplement or update to any such Disclosure Schedule or representation shall
amend, supplement or otherwise modify any Disclosure Schedule or representation, or be deemed a waiver of any Default or Event
of Default resulting from the matters disclosed therein, except as consented to by Lenders in writing, and (b) no supplement
or update shall be required or permitted as to representations and warranties that expressly relate only to the Closing Date (except
as set forth in the introduction to Section 3 (Representations and Warranties) for purposes of representations and
warranties made as of the Closing Date). If any Borrower has a material “commercial tort claim” (as defined in the
Code), it shall promptly notify Lenders in writing of the existence thereof.

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5.7Intellectual
Property. Borrowers and Credit Parties will conduct their business and affairs without material infringement of or material
interference with any Intellectual Property of any other Person.

5.8Environmental
Matters. Each Borrower and each Credit Party (other than Ganesha) shall (a) comply with and use commercially reasonable
efforts to cause each Borrower and its employees, agents and representatives at any Property to comply with all Environmental
Laws; (b) without limiting the generality of clause (a) above, not engage in, permit or acquiesce in to any Hazardous
Material Activity on, under or about any Property, except in strict accordance with all Environmental Laws, and with then prudent
business practices as determined by said Borrower or Credit Party; (c) immediately advise Lenders in writing of (i) the
receipt by any Borrower or any Credit Party of written notice of any and all Hazardous Material Claims, (ii) any knowledge
by any Borrower or any Credit Party that any Property does not comply with any Environmental Laws, (iii) any remedial action
taken by any Borrower or any Credit Party or any other Person in response to any Hazardous Materials or Hazardous Materials Activity
on, under or about any Property, or to any Hazardous Material Claims, and (iv) any Borrower’s or any Credit Party’s
discovery of the presence of any Hazardous Materials or Hazardous Material Activity on, in, under or about any Property or any
real property immediately adjacent to any Property whether or not the same requires notice to be given to any governmental entity
or agency under Environmental Laws; and (d) submit to Lenders, promptly upon receipt or preparation, copies of any and all
reports, studies, analyses, correspondence, governmental comments or approvals, proposed removal or other remedial work contracts
and similar information prepared or received by any Borrower or any Credit Party in connection with any remedial work or Hazardous
Materials relating to any Property. If Lenders at any time have a reasonable basis to believe that there may be a violation of
any Environmental Laws or Environmental Permits by any Borrower or any Credit Party (other than Ganesha) or any Environmental
Liability of any Borrower or any Credit Party (other than Ganesha) arising thereunder, or a Release of Hazardous Materials on,
at, in, under, above, to, from or about any Property or any of their other real estate, that, in each case, could reasonably be
expected to have a Material Adverse Effect, then such Borrower and/or Credit Party (other than Ganesha) shall, upon a Lender’s
written request (i) cause the performance of such environmental investigations including subsurface sampling of soil and
groundwater, and preparation of such environmental reports, at such Borrower’s or such Credit Party’s expense, as
Lenders may from time to time reasonably request, which shall be conducted by reputable environmental consulting firms reasonably
acceptable to Lenders and shall be in form and substance reasonably acceptable to Lenders, and (ii) if such Borrower or Credit
Party shall not have timely performed such environmental investigations, permit Lenders or its representatives to have access
to all real estate for the purpose of conducting such environmental investigations and testing as Lenders reasonably deems appropriate,
including subsurface sampling of soil and groundwater. Each Borrower and Credit Party (other than Ganesha) shall reimburse Lenders
for the costs of such investigations and the same will constitute a part of the Obligations secured hereunder.

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5.9Landlord
Agreements. With respect to any location where any material amount of Collateral is stored or located, Lenders may require
Borrowers to provide a reasonable landlord or mortgagee agreement or bailee letter as a condition to the continued storage of
the Collateral at such location(s). Borrowers shall timely and fully pay and perform all obligations under all leases and other
agreements with respect to each leased location or public warehouse where any Collateral is or may be located.

5.10Further
Assurances. Borrowers and Credit Parties each agree that it shall, at Borrower’s or Credit Party’s expense and
upon the reasonable request of Lenders, duly execute and deliver, or cause to be duly executed and delivered, to Lenders such
further instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of Lenders
to carry out more effectively the provisions and purposes of this Agreement and each Loan Document.

5.11Qualified
Cash. Borrowers shall deposit all net cash proceeds of Collateral as Qualified Cash in a Qualified Cash Account subject to
the right of Borrowers to withdraw such cash proceeds. From and during the continuance of an Event of Default, Lenders may exercise
all rights under the applicable Control Agreements relating to any Qualified Cash, including the right to deliver applicable control
exercise notices to each applicable bank and securities intermediary and cause all such Qualified Cash to be forwarded immediately
to a collection account designated by Lenders through daily sweeps (or as otherwise directed by Lenders); provided that
so long as the A/R Facility is in effect, the provisions of this Section 5.11 shall be subject to the A/R Facility.

5.12Operation
of Business. Borrowers shall have and maintain at all times from the Closing Date until the Obligations have been paid in
full (other than indemnification Obligations), sufficient approvals, consents, and permits from all necessary Governmental Authorities
to fully operate the Business in accordance with Applicable Laws. Borrowers shall use their best efforts and use appropriate diligence
to secure all approvals, consents and permits as and when required by Applicable Laws to fully operate the Business.

5.13After-Acquired
Property; Acquisition of other Real Property Interests. In the event from time to time Borrower acquires any fee interest
in any real property or improvements or any master leasehold interest or ground leasehold interest in any real property or improvements,
then Borrowers agree to promptly notify Lenders in writing at least ten (10) Business Days prior to such acquisition and
to execute, acknowledge and deliver to Lenders at least five (5) Business Days prior to such acquisition a deed of trust
or mortgage for recordation on said other real property or improvements, as a first lien or encumbrance on Borrower’s fee
interest or, if applicable, on Borrower’s interest in a master lease or ground lease. Each such deed of trust or mortgage
shall secure repayment of the Obligations, including but not limited to repayment of the Loans. All reasonable expenditures incurred
by Lenders in performing this paragraph shall be additional Obligations payable upon demand and delivery of reasonable backup
documentation, and shall bear interest at the Default Interest Rate from the date of demand for payment until paid in full.

5.14Observer Status
on Borrower’s Board of Directors. Until the Loan is paid in full and satisfied, IHHI hereby grants Lender Agent non-voting
observer status with respect to all meetings of its board of directors (and committees thereof) and all meetings of its shareholders
(and committees thereof), excluding meetings (or portions thereof) held in executive session called in good faith and that relate
matters not in IHHI’s ordinary course of business. Concurrently with delivery of all notices of meetings and agendas to its
directors and shareholders, IHHI agrees to and shall deliver a copy of each such notice and agenda to Lender Agent.

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5.15Independent Directors.
Until the Loan is paid in full and satisfied, Independent Directors shall at all times constitute a majority of the directors serving
as members of IHHI’s board of directors.

5.16Financial Reports,
Notices and Other Information.

(a)Financial
Statements and Other Reports. Each Borrower will deliver to Lender Agent: (1) as soon as available, but no later than thirty
(30) days after the last day of each month (or forty-five (45) days after the last day of the last month of each Fiscal Quarter),
a company prepared consolidated balance sheet and income statement covering Borrowers’ and their consolidated Subsidiaries’
consolidated operations during the period, prepared under GAAP, consistently applied (except for ordinary course adjustments to
such monthly financial statements which are taken in good faith, actuarial adjustments for self-insurance retention and disproportionate
share payment adjustments), in a form reasonably acceptable to Lender Agent; (2) as soon as available, but no later than one hundred
fifty (150) days after the last day of each Fiscal Year, audited consolidated financial statements prepared under GAAP, consistently
applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm
acceptable to Lender Agent in its reasonable discretion; (3) within five (5) days of delivery or filing thereof by any Borrower,
copies of all statements, reports and notices made available to such Borrower’s security holders or to any holders of Subordinated
Debt and copies of all reports and other filings made by such Borrower with any stock exchange on which any securities of such
Borrower are traded and/or the United States Securities and Exchange Commission; (4) a prompt report of any legal actions pending
or threatened in writing against any Borrower or any of its Subsidiaries that are not covered by insurance (including Borrower’s
self-insured retention amounts) and could reasonably be expected to result in damages or costs to any Borrower or any of its Subsidiaries
of $500,000 or more; (5) prompt written notice of an event that materially and adversely affects the value of any material Intellectual
Property; (6) budgets, sales projections, operating plans and other financial information and other information, reports or statements
regarding the Borrowers, their business and the Collateral as Lender Agent may from time to time reasonably request; (7) concurrent
with the delivery of its audited consolidated financial statements prepared under GAAP, a reconciliation between its interim fourth
quarter report and any adjustments thereafter in connection with finalizing its audited consolidated financial statements prepared
under GAAP, consistently applied; (8) promptly upon their becoming available, copies of all interest rate and currency hedging
agreements that any Borrower or any of its Subsidiaries is party to and all Material Contracts (as defined in the A/R Facility)
to the extent such documents are filed with the United States Securities and Exchange Commission; (9) every Fiscal Quarter (but
not more frequently unless an Event of Default then exists and is continuing), a schedule of Eligible Accounts (as defined in the
A/R Facility) and the thirty (30) largest Account Debtors (as defined in the A/R Facility) during such quarter; (10) within ten
(10) days after the preparation or issuance thereof, copies of financial statements (other than those required to be delivered
pursuant to clauses (1) and (2) above) prepared by, for or on behalf of Borrowers and any other notes, reports and other materials
related thereto, including, without limitation, any pro forma financial statements; (11) promptly upon receipt thereof, copies
of any reports submitted to a Borrower by its independent accountants in connection with any interim audit of the books of such
Person or any of its Affiliates and copies of each management control letter provided by such independent accountants; (12) within
fifteen (15) days after the execution thereof, a copy of any contracts with the federal government or with a Governmental Authority
in the State of California; (13) as soon as available, but no later than one (1) day after the commencement of each Fiscal Year,
consolidated month by month projected operating budgets, annual projections, profit and loss statements, and cash flow reports
of and for Borrowers for such upcoming Fiscal Year (including an income statement for each month and a balance sheet as of the
end of the last month in each Fiscal Quarter); and (14) any additional information, documents, statements, reports and other materials
that are provided to the agent or the lenders under the A/R Facility.

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(b)Notices.
Borrowers will give prompt written notice to Lender Agent: (1) of any litigation or governmental proceedings pending or, to Borrower’s
knowledge, threatened (in writing) against Borrowers or any Credit Party which would reasonably be expected to have a Material
Adverse Effect with respect to Borrowers or any Credit Party or which in any manner calls into question the validity or enforceability
of any Loan Document; (2) upon any Borrower becoming aware of the existence of any Default or Event of Default (which notice shall
specify the nature and status thereof, the period of existence thereof and what action is proposed to be taken with respect thereto);
(3) if any Borrower is in breach or default under or with respect to any Material Contract (as defined in the A/R Facility), or
if any Borrower is in breach or default under or with respect to any other contract, agreement, lease or other instrument to which
it is a party or by which its property is bound or affected, which breach or default could reasonably be expected to have a Material
Adverse Effect; (4) of any strikes or other labor disputes pending or, to any Borrower’s knowledge, threatened in writing
against any Borrower; (5) if there is any infringement or claim of infringement by any other Person with respect to any Intellectual
Property rights of any Borrower that could reasonably be expected to have a Material Adverse Effect, or, to Borrower’s knowledge,
if there is any claim by any other Person that any Borrower in the conduct of its business is infringing on the Intellectual Property
rights of others that could reasonably be expected to have a Material Adverse Effect; and (6) of all returns, recoveries, disputes
and claims relating to any of the Borrowers’ accounts receivable that involve more than $500,000; (7) any other development,
event, fact, circumstance or condition that would reasonably be likely to have a Material Adverse Effect, in each case describing
the nature and status thereof and the action proposed to be taken with respect thereto; (8) to the extent not otherwise delivered
pursuant to another provision hereof, any notice given by a Borrower to any other lender of a Borrower, which notice to Lenders
shall be accompanied by a copy of the applicable notice given to the other lender; (9) receipt of any notice or request from any
Governmental Authority or governmental payor regarding any liability or claim of liability or any material modification to any
special program or the amounts payable to a Borrower thereunder; (10) receipt of any notice by a Borrower regarding termination
of any manager of any facility owned, operated or leased by a Credit Party; and (11) promptly after a Borrower or any authorized
officer of a Borrower obtains knowledge thereof, any oral or written communication from the IRS or otherwise with respect to any
tax investigations, relating to a Borrower directly, or relating to any consolidated tax return which was filed on behalf of a
Borrower, in respect of (x) any tax assessment or possible tax assessment, (y) years that are designated open pending tax examination
or audit, or (z) information that could give rise to an IRS tax liability or assessment.

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		6.	NEGATIVE COVENANTS

To induce Lenders
to make the Loans, Borrowers and Credit Parties, as applicable, make the following negative covenants in favor of Lenders, each
of which shall survive the execution and delivery of this Agreement.

6.1Mergers,
Subsidiaries, Etc. Borrowers shall not, directly or indirectly, by operation of law or otherwise, (i) form or acquire
any Subsidiary in addition to the existing Subsidiaries of Borrowers; or (ii) merge with, consolidate with, acquire all or
substantially all of the assets or Stock of, or otherwise combine with or acquire, any Person, without first receiving the prior
written consent of Lenders.

6.2Investments;
Line of Credit Loan and Advances. Borrowers shall not make or permit to exist any investment in, or make, accrue or permit
to exist loans or advances of money to, any Person, through the direct or indirect lending of money, holding of securities or
otherwise, except that: (a) Borrowers may hold investments constituting notes payable, or stock or other securities issued
to Borrowers pursuant to negotiated agreements with respect to settlement of such issuer’s accounts in the ordinary course
of business consistent with past practices; (b) Borrowers may invest Qualified Cash in Qualified Cash Accounts (i) as
of the Closing Date in the kinds and types of investments that they are then so invested, and (ii) thereafter, as to any
new investments made after the Closing Date in other kinds and types of investments as are in conformity with Borrower’s
investment policies previously adopted by its board of directors or managers so long as Lender Agent’s Liens for the benefit
of the Lenders remain perfected therein, and (c) Borrowers may invest cash and cash equivalents (other than Qualified Cash
in the Qualified Cash Accounts) (i) as of the Closing Date in the kinds and types of investments that they are then so invested,
and (ii) thereafter, as to any new investments made after the Closing Date in other kinds and types of investments as are
in conformity with Borrower’s investment policies previously adopted by its board of directors; provided that so
long as the A/R Facility is in effect, Borrowers may invest all cash and cash equivalents pursuant to the terms of the A/R Facility
(as in effect on the A/R Facility Closing Date or as amended, supplemented or otherwise modified in accordance with the terms
of the A/R Facility Intercreditor Agreement) and subject to the terms of the A/R Facility Intercreditor Agreement.

6.3Indebtedness.

(a)Borrowers shall
not create, incur or assume any Indebtedness, except (without duplication) (i) Indebtedness created after the date hereof
by conditional sale or other title retention agreements (including Capital Leases) or in connection with purchase money Indebtedness
with respect to Equipment and Fixtures or other capital assets acquired by Borrowers in the ordinary course of business; (ii) the
Loans and the other Obligations; (iii) unsecured Indebtedness (other than Funded Debt) incurred in the ordinary course of
Borrower’s business; (iv) Indebtedness created after the date hereof for financing of insurance premiums; and (v) Indebtedness
under the A/R Facility.

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(b)Borrowers shall
not, directly or indirectly, voluntarily purchase, redeem, defease or prepay any principal of, premium, if any, interest or other
amount payable in respect of any Funded Debt prior to its scheduled due date, other than the A/R Facility and the Obligations.

6.4Employee
Loans and Affiliate Transactions. Except as set forth in Disclosure Schedule 6.4, no Borrower is a party to any
transaction with any of its Affiliates. Borrowers shall not enter into or be a party to any transaction with any Affiliate thereof
except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s business and upon fair and reasonable
terms that are no less favorable to Borrowers than would be obtained in a comparable arm’s length transaction with a Person
not an Affiliate of Borrowers. Borrowers shall not enter into any lending or borrowing transaction with any employees of Borrowers,
except loans to its respective employees in the ordinary course of business consistent with past practices for travel and entertainment
expenses, relocation costs, pension plan advances, and similar purposes.

6.5Capital Structure
and Business. No Borrower or Credit Party (other than Ganesha) shall amend its charter, articles, bylaws or operating agreement
from versions delivered to the Lenders on the Restatement Effective Date without first receiving the prior written consent of Lenders.
No Borrower or Credit Party (other than Ganesha) shall engage in any business other than the businesses currently engaged in by
it, without first receiving the prior written consent of Lenders.

6.6Guaranteed
Indebtedness. Borrowers shall not create, incur, or assume any Guaranteed Indebtedness unless such Guaranteed Indebtedness
would be permitted to be incurred directly by Borrowers pursuant to Section 6.3 (Indebtedness).

6.7Liens. Except
(i) the A/R Facility Liens and (ii) as set forth in Disclosure Schedule 6.7, no Borrower is subject to any existing
Liens (excluding Lender Agent’s Liens). Borrowers shall not create, incur, assume or permit to exist any Lien on or with
respect to any of the Collateral (whether now owned or hereafter acquired) except for Permitted Encumbrances.

6.8Sale of Collateral
and Intellectual Property. Borrowers shall not sell, transfer, convey, assign, license or otherwise dispose of any interest
in Collateral, other than in the ordinary course of business, with an aggregate value in excess of $100,000. Borrowers shall not
sell, transfer, convey, assign, license or otherwise dispose of any interest in Intellectual Property.

6.9ERISA.
Borrowers shall not cause or permit any ERISA Affiliate to, cause or permit to occur (a) an event that could result in the
imposition of a Lien under Section 412 of the IRC or Section 302 or 4068 of ERISA or (b) an ERISA Event to the
extent such ERISA Event would reasonably be expected to result in taxes, penalties and other liabilities in an aggregate amount
in excess of $100,000 in the aggregate.

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6.10Hazardous Materials.
Borrowers shall not cause or permit a Release of any Hazardous Material on, at, in, under, above, to, from or about any real property
owned or leased by Borrowers where such Release would (a) violate in any respect, or form the basis for any Environmental
Liabilities under, any Environmental Laws or Environmental Permits or (b) otherwise adversely impact the value or marketability
of any real property owned or leased by Borrowers or any of the Collateral, other than such violations or Environmental Liabilities
that could not reasonably be expected to have a Material Adverse Effect.

6.11Restricted
Payments. During the term of this Agreement, Borrowers shall not make any Restricted Payment, except (a) employee loans
permitted under Section 6.4 (Employee Loans and Affiliate Transactions), (b) so long as no Event of Default shall have
occurred and is continuing, dividends and distributions by Borrowers to its Shareholders or partners or members, (c) ordinary
course payments to Borrowers and/or to Credit Parties for services rendered to the Business, (d) declare, pay or make dividends
or distributions payable in its stock, or split-ups or reclassifications of its stock, and (e) redeem its capital stock from
terminated employees pursuant to, but only to the extent required under, the terms of the related employment agreements.

6.12Change
of Corporate Name, State of Organization or Location; Change of Fiscal Year. No Borrower and no Credit Party and no Guarantor
shall (a) change its name as it appears in official filings in the state of its incorporation or organization, (b) change
its chief executive office, principal place of business, corporate offices or locations at which Collateral is held or stored,
or the location of their records concerning the Collateral, (c) change the type of entity that it is, (d) change its
organization identification numbers issued by its state of its incorporation or organization, or (e) change its state of
incorporation or organization or incorporate or organize in any additional jurisdictions, in each case without at least ten (10) Business
Days prior written notice to Lenders and provided that Borrowers and Credit Parties and Guarantors shall have taken such actions
and executed such documents as Lenders reasonably requests in connection therewith to continue the perfection of any Liens in
favor of Lender Agent in any Collateral, and provided further that, any change to such Borrowers or such Credit Party’s
or such Guarantor’s jurisdiction or state of incorporation or organization, such new jurisdiction or state of incorporation
or organization shall be located in the United States. Borrowers shall not change their Fiscal Year without giving Lenders at
least thirty (30) calendar days prior written notice thereof.

6.13No Impairment
of Intercompany Transfers. Borrowers shall not directly or indirectly enter into or become bound by any agreement, instrument,
indenture or other obligation (other than this Agreement and the other Loan Documents) that could directly or indirectly restrict,
prohibit or require the consent of any Person with respect to the payment of dividends or distributions.

6.14[Intentionally
Omitted.]

6.15Dr. Shah.
Until the Loan is paid in full and satisfied, Borrowers will not, directly or indirectly, permit Dr. Shah to be nominated, or elected,
or appointed, or directly or indirectly compensated, paid, engaged, retained or become, an officer, or director, or employee, or
manager, or supervisor, or consultant, or agent, or representative of, IHHI, WMC-A, WMC-SA, Coastal or Chapman.

    	47

    	 

    

6.16Shareholder
Blocking Rights. No Borrower shall issue any Stock that grants or provides any direct or indirect owner thereof any Shareholder
Blocking Rights.

6.17Financial Covenants.

(a)Minimum
EBITDA. The Borrowers will not at any time permit, for the Test Period ending June 30, 2013 and each Test Period thereafter,
EBITDA to be less than $20,000,000.

(b)Minimum
Adjusted EBITDA. The Borrowers will not at any time permit, for (i) the Test Period ending March 31, 2014, Adjusted EBITDA
to be less than $2,500,000, (ii) the Test Period ending June 30, 2014, Adjusted EBITDA to be less than $2,500,000, (iii) the Test
Period ending September 30, 2014, Adjusted EBITDA to be less than $2,500,000, (iv) the Test Period ending December 31, 2014, Adjusted
EBITDA to be less than $2,500,000, (v) the Test Period ending March 31, 2015, Adjusted EBITDA to be less than $5,000,000, (vi)
the Test Period ending June 30, 2015, Adjusted EBITDA to be less than $5,000,000, (vii) the Test Period ending September 30, 2015,
Adjusted EBITDA to be less than $5,000,000, (viii) the Test Period ending December 31, 2015, Adjusted EBITDA to be less than $5,000,000
and (ix) for the Test Period ending March 31, 2016, Adjusted EBITDA to be less than $7,500,000.

(c)Fixed Charge
Coverage Ratio. The Borrowers will not permit the Fixed Charge Coverage Ratio (as defined in and calculated pursuant to the
Worksheet in Annex E) as of the last day of any Fiscal Quarter set forth below to be less than the ratio set forth below for such
period:

	Period	Ratio
	Any given Fiscal Quarter, measured on a trailing four quarter basis, beginning with the Fiscal Quarter ending June 30, 2013 (which shall be the “Defined Period” for purposes of Annex E)	
        1.00 to 1.00

         

 

Evidence of Compliance.
Borrowers shall furnish to Lender Agent, at the time of delivery of the financial statements required by clauses (1) and (2) of
Section 5.16 (Financial Statements and Other Reports), evidence (in form and content satisfactory to Lender Agent) of Borrowers’
compliance with the covenants in this Section 6.17 and evidence that no Default or Event of Default resulting from the provisions
of this Section 6.17 has occurred and is continuing. Such evidence shall include, without limitation, (a) a statement and
report, on a form approved by Lender Agent, detailing Borrowers’ calculations, and (b) if requested by Lender Agent, back-up
documentation (including, without limitation, invoices, receipts and other evidence of costs incurred during such quarter as Lender
Agent shall reasonably require) evidencing the propriety of the calculations.

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(d)Defined
Terms. For purposes of this Section 6.17, the following definitions shall apply:

 

‘Adjusted EBITDA’
means, for any period, the sum, without duplication, of the following for each Borrower and PCHI collectively on a consolidated
basis: Net Income, plus (a) Interest Expenses, (b) taxes on income, whether paid, payable or accrued, (c) depreciation expense,
(d) amortization expense, (e) all other non-cash, non-recurring charges and expenses, excluding accruals for cash expenses made
in the ordinary course of business, (f) loss from any sale of assets, other than sales in the ordinary course of business, (g)
the portion of lease payments paid by any Borrower to PCHI in respect of lease payments which are attributable to interest, (h)
the QAF Recovery Adjustment, (i) the warrant repurchase price under the Repurchase Agreement to the extent deducted from Net Income,
and (j) any amendment, consent, origination or other transaction fees and legal expenses payable or paid by any Borrower or PCHI
and relating to the Loan Documents or to the A/R Facility, to the extent deducted from Net Income, minus (i) gains from
any sale of assets, other than sales in the ordinary course of business, and (ii) other extraordinary or non-recurring gains minus
(if a positive number) or plus (if a negative number), the Net QAF Funds for such period (but only to the extent that such
Net QAF Funds were included by any Borrower in the calculation of Net Income for such period), in each case determined in accordance
with GAAP.

 

‘EBITDA’ means,
for any period, the sum, without duplication, of the following for each Borrower and PCHI collectively on a consolidated basis:
Net Income, plus (a) Interest Expenses, (b) taxes on income, whether paid, payable or accrued, (c) depreciation expense,
(d) amortization expense, (e) all other non-cash, non-recurring charges and expenses, excluding accruals for cash expenses made
in the ordinary course of business, (f) loss from any sale of assets, other than sales in the ordinary course of business, (g)
the portion of lease payments paid by any Borrower to PCHI in respect of lease payments which are attributable to interest, (h)
the warrant repurchase price under the Repurchase Agreement to the extent deducted from Net Income, and (i) any amendment, consent,
origination or other transaction fees and legal expenses payable or paid by any Borrower or PCHI and relating to the Loan Documents
or to the A/R Facility, to the extent deducted from Net Income minus (i) gains from any sale of assets, other than sales
in the ordinary course of business, and (ii) other extraordinary or non-recurring gains, in each case determined in accordance
with GAAP.

 

‘Interest Expense’
means, for any period, for Borrowers and PCHI collectively on a consolidated basis, (a) total interest expense (including without
limitation attributable to Capital Leases in accordance with GAAP), (b) fees with respect to all outstanding Indebtedness including
without limitation capitalized interest but excluding commissions, discounts and other fees owed with respect to letters of credit
and bankers’ acceptance financing and (c) net costs under any interest rate hedging agreements.

 

    	49

    	 

    

‘Net Income’ means,
for any period, the net income (or loss) of Borrowers and PCHI collectively on a consolidated basis determined in accordance with
GAAP; provided, however, that such amount shall exclude (a) the income (or loss) of any Person (other than any Borrower,
any Credit Party or any of their respective Subsidiaries) in which any other Person (other than any Borrower, any Credit Party
or any of their respective Subsidiaries) has a joint interest, except to the extent of the amount of dividends or other distributions
actually paid to a Borrower or PCHI by such Person, (b) the income (or loss) of any Person accrued prior to the date it becomes
a Borrower or is merged into or consolidated with a Borrower or PCHI or that Person’s assets are acquired by a Borrower or
PCHI, (c) the income of any Subsidiary of any Borrower or PCHI to the extent that the declaration or payment of dividends or similar
distributions of that income by that Subsidiary is not at the time permitted by operation of the terms of the charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary, (d) compensation expense
resulting from the issuance of capital stock, stock options or stock appreciation rights issued to former or current employees,
including officers, of a Borrower or PCHI, or the exercise of such options or rights, in each case to the extent the obligation
(if any) associated therewith is not expected to be settled by the payment of cash by a Borrower or PCHI or any affiliate thereof,
and (e) compensation expense resulting from the repurchase of capital stock, options and rights described in clause (d) of this
definition of Net Income.

 

‘QAF Recovery Adjustment’
means, for any Test Period during which Net Income was reduced by any Net QAF Funds (such reduction, the “Maximum Amount”),
any reduction in Net Income related to Medicaid or Medicaid Managed Care payment rates (including DSH and similar payments by the
State and Counties of California for indigent care) recognized in accordance with GAAP, initially calculated by reference to payment
rates included in Net Income as of September 30, 2012 and, following any QAF Recovery Adjustment calculated by reference to such
September 30, 2012 payment rates, by reference to the payment rates included in Net Income for the most recent QAF Recovery Adjustment;
provided that (i) California AB1383 or any substitute, replacement or successor legislation or payments or implementing regulations
are in effect during such Test Period; (ii) the Borrowers provide evidence to Lender Agent that such QAF Recovery Adjustment is
reasonably expected to result in an increase in Net QAF Funds and (iii) in no event may the QAF Recovery Adjustment exceed the
Maximum Amount.

 

‘Test Period’ means,
with respect to each Fiscal Quarter beginning with the Fiscal Quarter ending June 30, 2013, the four most recent Fiscal Quarters
then ended (taken as one accounting period).

 

		7.	TERM

7.1Defined
Terms. For purposes of this Section 6.17, the following definitions shall apply:Termination. The financing arrangements contemplated
hereby shall be in effect until the earlier of the date when the Loans and other Obligations (other than indemnification Obligations)
have been paid in full and satisfied or the Maturity Date, and the Loans and all other Obligations shall be automatically due
and payable in full on such date without demand by Lenders.

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7.2Survival
of Obligations Upon Termination of Financing Arrangements. Except as otherwise expressly provided for in the Loan Documents,
no termination or cancellation (regardless of cause or procedure) of any financing arrangement under this Agreement shall in any
way affect or impair the obligations, duties and liabilities of Borrowers or Credit Parties or the rights of Lenders or Lender
Agent relating to any unpaid portion of the Loans or any other Obligations, due or not due, liquidated, contingent or unliquidated,
or any transaction or event occurring prior to such termination, or any transaction or event, the performance of which is required
after the Maturity Date. Except as otherwise expressly provided herein or in any other Loan Document, all undertakings, agreements,
covenants, warranties and representations of or binding upon Borrowers and Credit Parties, and all rights of Lenders or Lender
Agent, all as contained in the Loan Documents, shall not terminate or expire, but rather shall survive any such termination or
cancellation and shall continue in full force and effect until the Termination Date; provided, that the provisions of Section 11
(Miscellaneous), the payment obligations under Section 1 (Amount and Terms of Credit Facilities), and the indemnities
contained in the Loan Documents shall survive the Maturity Date.

 

		8.	EVENTS OF DEFAULT; REMEDIES

8.1Events
of Default. The occurrence of any one or more of the following events (regardless of the reason therefor) shall constitute
an Event of Default hereunder:

(a)Any Borrower
fails to make any payment of interest or of principal on any Loan within five (5) calendar days after the same is due and
payable, provided, that if any Borrower fails to make any payment within such five (5) calendar day period, interest
at the Default Rate shall accrue from the due date for such payment on all Obligations and the Loans.

(b)Borrowers fail
to pay or reimburse Lenders for any costs or expenses reimbursable under this Agreement or under any other Loan Document, or Borrowers
fail to make payment of any Obligations (not specifically referenced in any other subsection of this Section 8.1) within
ten (10) calendar days following Lenders’ demand for such reimbursement or payment thereof; provided, that if
any Borrower fails to pay such amount within said ten (10) calendar day period, interest at the Default Rate shall accrue
from the due date for such payment on all Obligations and on the Loans.

(c)Borrowers or
Credit Parties fail or neglect to perform, keep or observe any provision of this Agreement (not specifically referenced in any
other subsection of this Section 8.1) applicable to them and the same shall remain unremedied for ten (10) Business
Days or more after the earlier of (i) Borrower’s or Credit Party’s actual knowledge thereof, or (ii) Borrower’s
or Credit Party’s receipt of notice thereof from Lenders.

(d)Borrowers fail
or neglect to perform, keep or observe any of the provisions of Section 4.1 (Reports and Notices) or any provisions
set forth in Annex B (Cash Management System) or Annex C (Collateral Reports), respectively, and the same
shall remain unremedied in whole or in part for thirty (30) calendar days or more after the earlier of (i) said Borrower’s
actual knowledge thereof, or (ii) said Borrower’s receipt of notice thereof from Lenders.

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(e)Borrowers deliver
a supplement or update to any Disclosure Schedule as required by Section 5.6 (Supplemental Disclosure) and Lenders
fail to approve of the same because such supplement or update (i) discloses the existence of an Event of Default, or (ii) discloses
a Material Adverse Effect, or (iii) discloses any fact or circumstance which, with the passage of time or otherwise, would
constitute an Event of Default or Material Adverse Effect.

(f)Borrowers or
Credit Parties or Guarantors fail or neglect to timely perform, keep or observe any other provision of any of the Loan Documents
required to be performed by it and the same shall remain unremedied in whole or in part for ten (10) Business Days after receipt
of notice thereof from Lenders.

(g)Any Guarantor
fails or neglects to timely perform, keep or observe any provision of the Guaranty Agreement and the same shall remain unremedied
in whole or in part for ten (10) Business Days after receipt of notice thereof from Lenders.

(h)[reserved]

(i)[reserved]

(j)(i) A default
or breach occurs under any other agreement, document or instrument to which any Borrower or any Credit Party is or are a party
that is not cured within any applicable grace period therefor, such default or breach is not waived in writing by Lenders or Lender
Agent, on behalf of the Lenders, and such default or breach involves the failure to make any payment when due in respect of any
Indebtedness or Guaranteed Indebtedness (other than the Obligations) of Borrowers or Credit Parties in an amount in excess of $100,000;
or (ii) an event, condition or circumstance occurs that causes, or permits any holder of Indebtedness or Guaranteed Indebtedness
or a trustee to cause, Indebtedness or Guaranteed Indebtedness or a portion thereof to become due prior to its stated maturity
or prior to its regularly scheduled dates of payment, or the holder of such Indebtedness or Guaranteed Indebtedness or such trustee
has the right to demand cash collateral in respect of such Indebtedness or Guaranteed Indebtedness, in each case, regardless of
whether such right is exercised, by such holder or trustee.

(k)Any representation
or warranty herein or in any Loan Document or in any written statement, report, Financial Statement or certificate made or delivered
to Lenders or Lender Agent by Borrowers or Credit Parties is untrue or incorrect in any material respect as of the date when made
or deemed made.

(l)Assets of Borrowers
or Credit Parties with a fair market value of $100,000 or more are attached, seized, levied upon or subjected to a writ or distress
warrant, or come within the possession of any receiver, trustee, custodian or general assignee for the benefit of creditors of
Borrowers or such Credit Parties and such condition continues for thirty (30) calendar days or more.

(m)A case or proceeding
is commenced against any Borrower or any Credit Party seeking a decree or order in respect of said Borrower or Credit Party (i) under
the Bankruptcy Code, or any other applicable federal, state or foreign bankruptcy or other similar law, (ii) appointing a
custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) for said Borrower or Credit Party or for
any substantial part of said Borrower’s or Credit Party’s assets, or (iii) ordering the winding-up or liquidation
of the affairs of any Borrower or Credit Party, and such case or proceeding shall remain undismissed or unstayed for sixty (60) calendar
days or more or a decree or order granting the relief sought in such case or proceeding is granted by a court of competent jurisdiction.

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(n)Any Borrower
or any Credit Party (i) files a petition seeking relief under the Bankruptcy Code, or any other applicable federal, state
or foreign bankruptcy or other similar law, (ii) consents to or fails to contest in a timely and appropriate manner the institution
of proceedings thereunder or the filing of any such petition or the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee or sequestrator (or similar official) for such Borrower or Credit Party or for any substantial part
of such Borrower’s or Credit Party’s assets, (iii) makes a general assignment for the benefit of creditors, (iv) takes
any action in furtherance of any of the foregoing; or (v) admits in writing its inability to, or is generally unable to, pay
its debts as such debts become due.

(o)A final judgment
or judgments for the payment of money in excess of $100,000 in the aggregate at any time are outstanding against Borrowers or Credit
Parties (which judgments are not covered by insurance policies as to which liability has been accepted in writing by the insurance
carrier), and the same is/are not, within thirty (30) calendar days after the entry thereof, discharged or execution thereof
stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any such stay.

(p)Any material
provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms (or any
Borrower or any Credit Party or any Guarantor shall challenge the enforceability of any Loan Document or shall assert in writing,
or engage in any action or inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to
be or otherwise is not valid, binding and enforceable in accordance with its terms), or any Lien created under any Loan Document
ceases to be a valid and perfected first priority Lien (except as otherwise permitted herein or therein) in any of the Collateral
purported to be covered thereby.

(q)Any Change
of Control occurs.

(r)A Material
Adverse Effect shall exist as determined in the reasonable judgment of Lenders.

(s)IHHI fails
or refuses, more than once during any consecutive twelve (12) month period, for any reason, to grant Lender Agent non-voting
observer status with respect to all meetings of its board of directors and all meetings of its shareholders.

(t)IHHI fails
or refuses, more than once during any consecutive twelve (12) month period, for any reason to deliver to Lender Agent, concurrently
with delivery to all shareholders, a notice and agenda of each annual meeting, special meeting or emergency meeting of shareholders.

(u)IHHI fails
or refuses, more than once during any consecutive twelve (12) month period, for any reason to deliver to Lender Agent, concurrently
with delivery to all directors, a notice and agenda of each annual meeting, regular meeting, special meeting or emergency meeting
of directors.

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(v)More than once
during any consecutive twelve (12) month period, the directors or shareholders of IHHI waive notice of a directors meeting
and fail to deliver advance notice to Lender Agent of said waiver of directors meeting.

(w)More than once
during any consecutive twelve (12) month period, the directors or shareholders of IHHI take any action without a meeting,
which action was required or permitted to be taken at a meeting, and fail to deliver advance notice of the taking of said action
to Lender Agent.

(x)More than once
during any consecutive twelve (12) month period, the directors or shareholders of IHHI hold a meeting by written consensus
and fail to deliver advance notice of said meeting by consensus to Lender Agent.

(y)Dr. Shah at
any time is nominated, or elected, or appointed, or directly or indirectly is compensated, paid, engaged, retained or becomes,
an officer, or director, or employee, or manager, or supervisor, or consultant, or agent, or representative of, IHHI, WMC-A, WMC-SA,
Coastal or Chapman.

(z)Independent
Directors cease to constitute a majority of directors on IHHI’s board of directors, and replacement Independent Director(s)
acceptable to Lenders in their sole discretion are not appointed, or nominated and elected, to IHHI’s board of directors
within thirty (30) calendar days after the date such Independent Directors cease to constitute a majority of directors on
IHHI’s board of directors.

(aa)IHHI, as tenant,
commits a breach or default under the Triple Net Lease and the same remains uncured following receipt of all required notices and
expiration of all applicable cure periods.

(bb)(dd) IHHI,
as tenant, commits a breach or default under any of the Chapman Leases and the same remains uncured following receipt of all required
notices and expiration of all applicable cure periods.

(cc)Without first
receiving the prior written consent of the Lenders (which consent may be granted or withheld by any Lender in its sole discretion):

(i)IHHI for
any reason terminates the sublease with WMC-A for the Western Medical Center - Anaheim;

(ii)IHHI for
any reason terminates the sublease with WMC-SA for the Western Medical Center - Santa Ana;

(iii)IHHI for
any reason terminates the sublease with Coastal for the Coastal Communities Hospital; or

(iv)IHHI for
any reason terminates any of the sub-subleases with Chapman for any portion of the Chapman Medical Center.

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(dd)PCHI ceases
to own all (100%) of the fee simple title (i) in the Western Medical Center - Anaheim, or (ii) in the Western Medical
Center - Santa Ana; or (iii) in the Coastal Communities Hospital.

(ee)Borrowers
or Credit Parties fail or neglect to perform, keep or observe any provision of Section 6.17 (Financial Covenants) applicable
to them and the same shall remain unremedied for five (5) days or more after the earlier of (i) Borrower’s or Credit Party’s
actual knowledge thereof, or (ii) Borrower’s or Credit Party’s receipt of notice thereof from Lender Agent.

8.2Remedies.
Lenders shall be entitled to enforce payment and performance of the Indebtedness and Obligations and to exercise all rights and
powers under this Agreement and the other Loan Documents or other agreement or any laws now or hereafter in force. No remedy herein
conferred upon or reserved to any Lender is intended to be exclusive of any other remedy set forth herein or by law provided or
permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing
at law or in equity or by statute. Every power or remedy given by this Agreement or any of the other Loan Documents to Lender
Agent or any Lender in any capacity or to which Lender Agent or any Lender may be otherwise entitled, may be exercised, concurrently
or independently, from time to time and as often as may be deemed expedient by Lender Agent and Lender Agent and any Lender may
pursue inconsistent remedies. Lender Agent’s and Lenders’ remedies upon the occurrence and continuance of an Event
of Default include, but are not limited to, the following:

(a)Accelerate
Maturity Date of Line of Credit Loan. If any Event of Default has occurred and is continuing, Lender Agent may, with the consent
of the Lenders, without notice, accelerate the Maturity Date of the Loans and declare all of the Obligations, including all amounts
due under the Loans, to be forthwith due and payable, all without presentment, demand, protest or further notice of any kind, all
of which are expressly waived by Borrowers and Credit Parties (in their respective capacities as Credit Parties and Guarantors).

(b)[Intentionally
Omitted.]

(c)Increase
Rate of Interest to Default Rate. If any Event of Default has occurred and is continuing, Lender Agent may without notice except
as otherwise expressly provided herein, increase the rate of interest applicable to the Loans to the Default Rate.

(d)Other Remedies.
If any Event of Default has occurred and is continuing, Lender Agent may without notice: (i)  make application to a court
of competent jurisdiction for, and obtain from such court as a matter of strict right, the appointment of a receiver of the Business,
which receiver shall have all the usual powers and duties of receivers in similar cases, including the full power to maintain and
otherwise operate the Business upon such terms as may be approved by the court; and (ii) exercise any other rights and remedies
provided to Lenders under the Loan Documents, or at law or equity, including all remedies provided under the Code; provided,
that upon the occurrence of an Event of Default specified in Sections 8.1(m) or (n) (Events of Default), all of the
Obligations and the Loans, shall become immediately due and payable without declaration, notice or demand by any Person.

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8.3Waivers.
Except as otherwise provided for in this Agreement or by applicable law, each Borrower and each Credit Party and each Guarantor
waive (including for purposes of Section 13 (Suretyship Waivers)): (a) presentment, demand and protest and notice
of presentment, dishonor, notice of intent to accelerate, notice of acceleration, protest, default (unless specifically required
in this Agreement), nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all commercial paper,
accounts, contract rights, documents, instruments, chattel paper and guaranties at any time held by Lenders on which Borrowers
or Credit Parties or Guarantors may in any way be liable, and hereby ratifies and confirms whatever the Lender Agent, on behalf
of Lenders or Lenders may do in this regard, (b) all rights to notice and a hearing prior to any Lender’s taking possession
or control of, or to any Lender’s replevy, attachment or levy upon, the Collateral or any bond or security that might be
required by any court prior to allowing a Lender to exercise any of its remedies, and (c) the benefit of all valuation, appraisal,
marshaling and exemption laws.

		9.	ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF LENDER

 

9.1Assignment and
Participations. 

(a)Assignment
to Qualified Assignee. Subject to the terms of this Section 9.1 (Assignment and Participations), any Lender may
make an assignment to a Qualified Assignee of, or sell participations in, at any time or times, the Loan Documents and the Loans,
or any portion thereof or interest therein, including any Lender’s rights, title, interests, remedies, powers or duties thereunder.
Any assignment by a Lender shall: (i) require the execution of an assignment agreement in form and content reasonably satisfactory
to, and acknowledged by, Lender Agent; and (ii) be conditioned on such assignee representing to Lender Agent that it is purchasing
the applicable Loan to be assigned to it for its own account, for investment purposes and not with a view to the distribution thereof.
In the case of an assignment by a Lender under this Section 9.1(a) (Assignment to Qualified Assignee), the assignee
shall have, to the extent of such assignment, the same rights, benefits and obligations as such Lender hereunder. The original
Lender shall be relieved of its obligations hereunder with respect to the assigned portion thereof from and after the date of such
assignment. Borrowers and Credit Parties and Guarantors hereby acknowledge and agree that any assignment shall give rise to a direct
obligation of Borrowers to the assignee and that the assignee shall be considered to be a “Lender.” In the event a
Lender assigns or otherwise transfers all or any part of the Obligations, such Lender shall so notify Borrowers and Credit Parties
and Guarantors, and Borrowers shall, upon the request of such new Lender, execute one or more new notes in exchange for any of
the Notes (upon the same terms), if any, being assigned. Notwithstanding the foregoing provisions of this Section 9.1(a)
(Assignment to Qualified Assignee), any Lender may at any time pledge the Obligations held by it and any Lender’s rights
under this Agreement and the other Loan Documents to a financial institution.

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(b)Participations.
Any participations by a Lender of all or any part of the aggregate commitment of a Lender to make Advances under the Loans shall
be made with the understanding that all amounts payable by Borrowers hereunder shall be determined as if such Lender had not sold
such participations, and that the holder of any such participation shall not be entitled to require such Lender to take or omit
to take any action hereunder except actions directly affecting (i) any reduction in the principal amount of, or interest rate
payable with respect to, any Loan in which such holder participates, (ii) any extension of the scheduled amortization of the
principal amount of any Loan in which such holder participates or the final maturity date thereof, and (iii) any release of
all or substantially all of the Collateral (other than in accordance with the terms of this Agreement, the Collateral Documents
or the other Loan Documents). Solely for purposes of Section 1.14 (Taxes), and Section 1.15 (Capital Adequacy;
Increased Costs; Illegality), Borrowers and Credit Parties and Guarantors acknowledge and agree that a participation shall give
rise to a direct obligation of Borrowers to the participant (in each case subject to the terms and conditions in such Sections
applicable to Lenders) and the participant shall be considered to be a “Lender.” The Borrowers and Credit Parties and
Guarantors further consent to the voting provisions set forth in Section 3 of the Participation Agreement.

(c)Cooperation
to Effect Assignments and Participations. Borrowers and Credit Parties shall assist Lenders under this Section 9.1
(Assignment and Participations) as reasonably required to enable Lenders to effectuate any such assignment or participations, including
the execution and delivery of any and all agreements, notes and other documents and instruments as shall be requested and, if requested
by a Lender, the preparation of informational materials for, and the participation of management in meetings with, potential assignees
or participants. Borrowers and Credit Parties shall certify the correctness, completeness and accuracy, in all material respects
of all descriptions of Borrowers and Credit Parties and their respective affairs contained in any selling materials provided by
them and all other information provided by them and included in such materials.

(d)Disclosures
by Lenders. A Lender may furnish any information concerning Borrowers and the Credit Parties in the possession of a Lender
from time to time to assignees and participants (including prospective assignees and participants); provided that such Lender
shall obtain from assignees or participants confidentiality covenants substantially equivalent to those contained in Section 11.10
(Confidentiality).

9.2Reliance, Etc.
Neither Lenders nor any of its Affiliates nor any of their respective directors, officers, employees or attorneys shall be liable
for any action taken or omitted to be taken by it or them under or in connection with this Agreement or the other Loan Documents,
except for damages caused by its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing,
each Lender: (a) may consult with legal counsel, independent public accountants and other experts selected by it and shall
not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants
or experts; (b) makes no warranty or representation to Borrowers or Credit Parties and shall not be responsible to Borrowers
or Credit Parties for any statements, warranties or representations made in or in connection with this Agreement or the other Loan
Documents; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement or the other Loan Documents on the part of Borrowers and Credit Parties or to inspect
the Collateral (including the books and records) of Borrowers or Credit Parties; (d) shall not be responsible to Borrowers
or Credit Parties for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement
or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; and (e) shall incur
no liability under or in respect of this Agreement or the other Loan Documents by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telecopy, telegram, cable or telex) believed by it to be genuine and signed or
sent by the proper party or parties.

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		10.	SUCCESSORS AND ASSIGNS

This Agreement and
the other Loan Documents shall be binding on and shall inure to the benefit of Borrowers, Credit Parties, Lenders and Lender Agent,
and their respective successors and assigns (including, in the case of Borrowers and Credit Parties, a debtor-in-possession on
behalf of a Borrower or a Credit Party), except as otherwise provided herein or therein. Neither Borrowers nor Credit Parties may
assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder or under any of the other
Loan Documents without the prior express written consent of Lender Agent and each of the Lenders, which consent may be granted
or withheld by Lender Agent and each Lender in its sole and absolute discretion. Any such purported assignment, transfer, hypothecation
or other conveyance by Borrowers or Credit Parties without the prior express written consent of Lender Agent and each Lender shall
be void. The terms and provisions of this Agreement are for the purpose of defining the relative rights and obligations of Borrowers,
Credit Parties, Lenders and Lender Agent with respect to the transactions contemplated hereby and no Person shall be a third party
beneficiary of any of the terms and provisions of this Agreement or any of the other Loan Documents.

		11.	MISCELLANEOUS

11.1Complete Agreement;
Modification of Agreement. This Agreement and the other Loan Documents (including all annexes, exhibits, and disclosure schedules
attached hereto or thereto) constitute the complete agreement between the parties with respect to the subject matter thereof and
may not be modified, altered or amended except as set forth in Section 11.2 (Amendments and Waivers). The Original
Credit Agreement and any other term sheet, letter of interest, commitment letter, fee letter or confidentiality agreement, if any,
between Borrowers or Credit Parties, Lenders and Lender Agent or any of their respective Affiliates, predating this Agreement and
relating to a financing of substantially similar form, purpose or effect shall be superseded by this Agreement.

11.2Amendments and
Waivers. 

(a)Signed by
Representatives. No amendment, modification, termination or waiver of or consent with respect to any provision of this Agreement
that waives compliance with the conditions precedent set forth in Article 2 (Conditions Precedent) to the making of
any of the Loans shall be effective unless the same shall be in writing and signed by Lender Agent and Borrowers. No waiver or
consent with respect to any Default or any Event of Default shall be effective for purposes of the conditions precedent to the
making of the Loans unless the same shall be in writing and signed by Lender Agent and Borrowers.

(b)Must Be
In Writing. No amendment, modification, termination or waiver shall, unless in writing and signed by Lender Agent and Borrowers:
(i) reduce the principal amount of or the Interest Rate applicable to the Loans; (ii) extend any scheduled payment date
or the Stated Maturity Date; (iii) waive, forgive, defer, extend or postpone any payment of interest; or (iv) release
any Guarantor or, except as otherwise permitted herein or in the other Loan Documents, release, or permit Borrowers or Credit
Parties to sell or otherwise dispose of, any Collateral. Each amendment, modification, termination or waiver shall be effective
only in the specific instance and for the specific purpose for which it was given. Notwithstanding the foregoing, no amendment,
modification, termination or waiver shall be required for Lender to take additional Collateral pursuant to any Loan Document.
No amendment, modification, termination or waiver of any provision of any of the Notes shall be effective without the written
concurrence of the holder of that Note. No notice to or demand on Borrowers or Credit Parties in any case shall entitle Borrowers
or Credit Parties to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination,
waiver or consent effected in accordance with this Section 11.2 (Amendments and Waivers) shall be binding upon each
holder of the Note in question at the time outstanding and each future holder of said Note.

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(c)Termination
of Liens. Upon payment of the Loans in full in cash and performance of all Obligations (other than indemnification Obligations),
and a release of all existing and future claims (whether known or unknown) against each Lender and Lender Agent, and so long as
no suits, actions, proceedings or claims are pending against any Indemnified Person, Lender Agent, on behalf of the Lenders, shall
promptly upon receipt of written request from Borrowers deliver to Borrowers such termination statements, Lien releases and other
documents necessary or appropriate to evidence the termination of the Liens securing payment of the Obligations.

(d)Lender Voting.
In addition to the terms set forth in the foregoing clauses (a) through (c) of this Section 11.2, if at any time there is
more than one Lender hereunder, no amendment, modification, termination or waiver of any provision of the Loan Documents, or consent
to any departure by any Borrower or Credit Party therefrom, shall in any event be effective without the written concurrence of
one or more Lenders having or holding Loans representing more than fifty percent (50%) of the aggregate outstanding principal amount
of the Loans.

 

11.3Fees and Expenses.
Borrowers shall reimburse Lender Agent and each Lender for (i) all fees, costs and expenses (including the reasonable fees
and expenses of all of Lender Agent’s and each Lender’s outside attorneys, advisors, consultants and auditors), and
(ii) all fees, costs and expenses, including the reasonable fees, costs and expenses of other advisors (including environmental
and management consultants and appraisers), incurred in connection with the negotiation, preparation and filing and/or recordation
of the Loan Documents, or incurred in connection with any amendment, modification or waiver of, consent with respect to, or termination
of, any of the Loan Documents or Related Transactions Documents, or advice provided in connection with a breach or Default under
the Loans or Lender Agent’s and each Lender’s rights hereunder or thereunder, or in connection with any of the following:

(a)Any litigation,
contest, dispute, suit, proceeding or action (whether instituted by Lender Agent, Lenders, Borrowers, Credit Parties or any other
Person and whether as a party, witness or otherwise) in any way relating to the Collateral, this Agreement, any of the Loan Documents
or any other agreement to be executed or delivered in connection herewith or therewith, including any litigation, contest, dispute,
suit, case, proceeding or action, and any appeal or review thereof, in connection with a case commenced by or against Borrowers
and/or Credit Parties or any other Person that may be obligated to Lenders by virtue of the Loan Documents; including any such
litigation, contest, dispute, suit, proceeding or action arising in connection with any work-out or restructuring or forbearance
of the Loans during the pendency of one or more Events of Default; provided that no Person shall be entitled to reimbursement
under this clause (a) in respect of any litigation, contest, dispute, suit, proceeding or action to the extent any of the
foregoing results from such Person’s gross negligence or willful misconduct.

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(b)Any attempt
to enforce any remedies of Lenders against Borrowers and/or Credit Parties or any other Person that may be obligated to Lenders
by virtue of any of the Loan Documents, including any such attempt to enforce any such remedies in the course of any work- out
or restructuring or forbearance of the Loans during the pendency of one or more Events of Default.

(c)Any workout
or restructuring or forbearance of the Loans during the pendency of one or more Events of Default.

(d)Efforts by
Lenders to (i) monitor the operations, financial condition and/or regulatory status of the Business after an Event of Default
occurs under this Agreement or under any of the other Loan Documents; (ii) evaluate, observe or assess Borrowers or Credit
Parties or their respective business affairs after a breach or Default under this Agreement or under any of the other Loan Documents;
and (iii) verify, protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise dispose of any of the Collateral;
including, as to each of clauses (a) through (c) above, all reasonable attorneys’ and other professional and service
providers’ fees arising from such services and other advice, assistance or other representation, including those in connection
with any appellate proceedings, and all reasonable expenses, costs, charges and other statutory and non-statutory fees and costs
incurred by such counsel and others in connection with or relating to any of the events or actions described in this Section 11.3
(Fees and Expenses), all of which shall be payable, on demand, by Borrowers to Lenders. Without limiting the generality of the
foregoing, such expenses, costs, charges and fees shall include: a Lender’s Costs, fees, costs and reasonable expenses of
attorneys, accountants, environmental advisors, appraisers, investment bankers, management and other consultants and paralegals;
court costs and expenses; photocopying and duplication expenses; court reporter fees, statutory and non-statutory costs and expenses;
long distance telephone charges; air express charges; telegram or telecopy charges; secretarial overtime charges; and expenses
for travel, lodging and food paid or incurred in connection with the performance of such legal or other advisory services.

11.4No Waiver.
Lender Agent’s or a Lender’s failure, at any time or from time to time, to require strict performance by Borrowers
or Credit Parties of any provision of this Agreement or any other Loan Document shall not waive, affect or diminish any right
of Lender Agent or such Lender thereafter to demand strict compliance and performance herewith or therewith. Any suspension or
waiver of an Event of Default shall not suspend, waive or affect any other Event of Default whether the same is prior or subsequent
thereto and whether the same or of a different type. Subject to the provisions of Section 11.2 (Amendments and Waivers),
none of the undertakings, agreements, warranties, covenants and representations of Borrowers or Credit Parties contained in this
Agreement or any of the other Loan Documents and no Default or Event of Default by Borrowers or Credit Parties shall be deemed
to have been suspended or waived by Lenders, unless such waiver or suspension is by an instrument in writing signed by Lender
Agent and each Lender and directed to Borrower’s Representative specifying such suspension or waiver.

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11.5Remedies.
Each Lender’s rights and remedies under this Agreement shall be cumulative and nonexclusive of any other rights and remedies
that a Lender may have under any other agreement, including the other Loan Documents, by operation of law or otherwise. Recourse
to the Collateral shall not be required.

11.6Severability.
Wherever possible, each provision of this Agreement and the other Loan Documents shall be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision of this Agreement or any other Loan Document shall be prohibited
by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this Agreement or such other Loan Document.

11.7Conflict of Terms.
Except as otherwise provided in this Agreement or any of the other Loan Documents by specific reference to the applicable provisions
of this Agreement, if any provision contained in this Agreement conflicts with any provision in any of the other Loan Documents,
the provision contained in this Agreement shall govern and control.

11.8Attorneys’
Fees; Indemnification.

(a)Attorneys’
Fees. If any action or proceeding is brought by any party against any other party, the prevailing party shall be entitled to
recover from the other party reasonable attorneys’ fees and statutory and non-statutory costs incurred in connection with
the prosecution or defense of such action. The foregoing includes, without limitation, attorneys’ fees and costs of investigation
incurred in appellate proceedings, costs incurred in establishing the right to indemnification, expert or other witness fees, copy
and facsimile and telephone charges, courier and messenger charges, court costs, fees of charges of any arbitrator or mediator
or arbitration or mediator service, or in connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy
Code, 11 U.S.C. 101 et seq., or any successor statutes. For purposes of this Agreement, the term “attorneys’ fees”
or “attorneys’ fees and costs” shall also include the fees and expenses of counsel to the parties hereto, which
may include the allocable costs of in-house counsel, printing, photostating, duplicating and other expenses, air freight charges,
and fee billed for law clerks, paralegals and other persons not admitted to the bar but performing services under the supervision
of an attorney.

(b)Indemnification.
Should any Lender, as a result of its relationship with Borrowers or Credit Parties or Guarantors contemplated hereby, be made
a party to any litigation instituted by Borrowers or Credit Parties or Guarantors against a Person other than such Lender, or any
litigation instituted against Borrowers or Credit Parties or Guarantors by any Person other than such Lender, Borrowers shall jointly
and severally indemnify, defend, protect and hold harmless such Lender from any and all loss, cost, liability, damage or expense
incurred by such Lender, including attorneys’ fees and costs, in connection with the litigation.

11.9Time of the Essence.
Time is of the essence in the performance of each and every term, condition and covenant of this Agreement.

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11.10Confidentiality.
Lender Agent and each Lender agrees to use commercially reasonable efforts to maintain as confidential all information provided
to them by Borrowers and/or Credit Parties which is designated in a writing delivered to Lender Agent or any Lender as confidential
(provided, that, all non-public financial information and financial projections provided by Borrowers or Credit Parties to Lender
Agent or Lenders shall be deemed confidential whether or not so designated in writing as confidential) for a period of one (1) year
following receipt thereof, except that Lender Agent or Lenders may disclose such information (a) to Persons employed or engaged
by Lender Agent or such Lender; (b) to any bona fide assignee or participant or potential assignee or participant that has
agreed to comply with the covenant contained in this Section 11.10 (Confidentiality) and any such bona fide assignee
or participant or potential assignee or participant may disclose such information to Persons employed or engaged by them as described
in clause (a) above); (c) as required or requested by any Governmental Authority or reasonably believed (based on advice
of counsel) by Lender Agent or such Lender to be compelled by any court decree, subpoena or legal or administrative order or process;
(d) as, on the advice of Lender Agent’s or such Lender’s counsel, is required by law; (e) in connection
with the exercise of any right or remedy under this Agreement or the other Loan Documents or in connection with any Litigation
relative to this Agreement or the other Loan Documents or the transactions related hereto or thereto to which Lender Agent or
Lender is a party; or (f) that ceases to be confidential through no fault of Lender Agent or such Lender. If Lender Agent
or such Lender is required in any proceeding, by any court decree, subpoena or legal or administrative order or process, to disclose
any such confidential information, Lender Agent or such Lender will use commercially reasonable efforts to give Borrowers and
Credit Parties, as applicable, prompt written notice of such request so that Borrowers or Credit Parties may seek an appropriate
protective order. If in the absence of a protective order, Lender Agent or such Lender is compelled in a proceeding to disclose
any such confidential information, Lender Agent or such Lender may disclose such portion of such confidential information that
it is compelled to disclose; provided, however, that Lender Agent or such Lender shall use commercially reasonable efforts
to provide Borrowers and Credit Parties, as applicable, written notice of the information to be disclosed as far in advance of
its disclosure as is practicable.

11.11GOVERNING
LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT AND IN ANY OF THE OTHER LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING
ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS
SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEVADA APPLICABLE TO CONTRACTS MADE
AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. BORROWERS AND CREDIT PARTIES AND LENDER EACH
HEREBY CONSENT AND AGREE THAT THE STATE OR FEDERAL COURTS LOCATED IN THE STATE OF NEVADA, CLARK COUNTY, CITY OF LAS VEGAS, SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG BORROWERS AND CREDIT PARTIES ON THE
ONE HAND, AND LENDER ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, THAT EACH LENDER, LENDER AGENT, EACH
BORROWER AND EACH CREDIT PARTY ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE
OF CLARK COUNTY, NEVADA; PROVIDED FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE LENDER
FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR
THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF LENDER. EACH BORROWER AND EACH CREDIT PARTY AND LENDER
EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH BORROWER,
EACH CREDIT PARTY, LENDER AGENT AND EACH LENDER HEREBY WAIVE ANY OBJECTION THAT ANY BORROWER OR ANY CREDIT PARTY, LENDER AGENT
OR ANY LENDER MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENT TO
THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH BORROWER, EACH CREDIT PARTY, LENDER
AGENT AND EACH LENDER HEREBY AGREE THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE AT THE ADDRESSES SET
FORTH IN ANNEX D OF THIS AGREEMENT.

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11.12Notices.
Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration
or other communication shall or may be given to or served upon any of the parties by any other parties, or whenever any of the
parties desires to give or serve upon any other parties any communication with respect to this Agreement, each such notice, demand,
request, consent, approval, declaration or other communication shall be in writing and shall be deemed to have been validly served,
given or delivered: (a) upon the earlier of actual receipt or three (3) Business Days after deposit in the United States
Mail, registered or certified mail, return receipt requested, with proper postage prepaid; (b) upon transmission, when sent
by electronic transmission, telecopy or facsimile transmission (with such electronic transmission, telecopy or facsimile promptly
confirmed by delivery of a copy by personal delivery or United States Mail as otherwise provided in this Section 11.12
(Notices)); (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when
delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address
or facsimile number indicated in Annex D (Notice Addresses) or to such other address (or facsimile number) as may be substituted
by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the party entitled
to receive such notice. Failure or delay in delivering copies of any notice, demand, request, consent, approval, declaration or
other communication to any Person (other than Borrower’s Representative or Lender) designated in Annex D (Notice
Addresses) to receive copies shall in no way adversely affect the effectiveness of such notice, demand, request, consent, approval,
declaration or other communication.

11.13Section Titles.
The Section titles and headings contained in this Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

11.14Counterparts.
This Agreement may be executed in any number of separate counterparts, each of which shall collectively and separately constitute
one agreement.

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11.15WAIVER
OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY
RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION
RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE
BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY
IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG ANY
LENDER, LENDER AGENT, ANY BORROWER AND ANY CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

11.16Press
Releases and Related Matters. Borrowers and Credit Parties agree that neither they nor their respective Affiliates will in
the future issue any press releases or other public disclosure using the name of any Lender, Lender Agent or its Affiliates or
referring to this Agreement, the other Loan Documents or the Related Transactions Documents without at least two (2) Business
Days’ prior written notice to Lender Agent and each Lender and without the prior written consent of Lender Agent and each
Lender (which consent will not be unreasonably withheld) unless (and only to the extent that) Borrowers or Credit Parties or their
respective Affiliate are required to do so under law, regulation or any applicable exchange rules or OTC bulletin board rules,
then, in any event, Borrowers, Credit Parties or their respective Affiliates will use commercially reasonable efforts to consult
with Lender Agent and each Lender before issuing such press release or other public disclosure. Borrowers and Credit Parties consent
to the publication by Lender Agent and each Lender of advertising material relating to the financing transactions contemplated
by this Agreement using Borrower’s and Credit Party’s name, product photographs, logo or trademark, without the consent
of Borrowers or Credit Parties. Lender Agent and each Lender may provide to industry trade organizations information necessary
and customary for inclusion in league table measurements unless such disclosure would violate or any applicable exchange rules
or OTC bulletin board rules applicable to Borrowers.

11.17Reinstatement.
This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against Borrowers
or Credit Parties for liquidation or reorganization, or should Borrowers or Credit Parties become insolvent or make a general
assignment for the benefit of any creditor or creditors, or should a receiver or trustee be appointed for all or any significant
part of any Borrower’s or any Credit Party’s assets, and shall continue to be effective or to be reinstated, as the
case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded
or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable
preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.
In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated
and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

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11.18Advice
of Counsel. Each of the Borrowers and each of the Credit Parties represent to Lender Agent and the Lenders and Lender Agent
and each Lender represent to said Borrowers and to said Credit Parties, that they have each discussed this Agreement and, specifically,
the provisions of Section 11.11 (Governing Law) and Section 11.15 (Waiver of Jury Trial), with their legal
counsel.

11.19No Strict
Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event
an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement.

11.20Limitation
on Each Borrower’s and Each Credit Party’s Liability. Anything to the contrary notwithstanding, if any Fraudulent
Transfer Law is determined by a court of competent jurisdiction to be applicable to the obligation of any Borrower or any Credit
Party under this Agreement or under any other Loan Documents, said obligations shall be limited to a maximum aggregate amount
equal to the largest amount that would not render its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance
under said Fraudulent Transfer Laws, in each case after giving effect to all other liabilities of such Borrower and such Credit
Party, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities
of such Borrower or such Credit Party in respect of intercompany indebtedness to any other Borrowers or Credit Parties or Affiliates
of Borrowers or Credit Parties).

11.21Lender Agent.

(a)Appointment
of Lender Agent. Silver Point Finance, LLC, a Delaware limited liability company (“Silver Point”), is hereby
appointed Lender Agent hereunder and under the other Loan Documents and each Lender hereby authorizes Silver Point to act as its
agent in each such capacity in accordance with the terms hereof. Lender Agent hereby agrees to act upon the express conditions
contained herein and the other Loan Documents, as applicable. The provisions of this section are solely for the benefit of the
Lender Agent and each Lender and no Borrower or Credit Party shall have any rights as a third party beneficiary of any of the provisions
thereof. In performing its functions and duties hereunder, the Lender Agent shall act solely as an agent of Lenders and does not
assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for Borrowers,
Credit Parties or any of their respective Subsidiaries.

(b)Powers and
Duties. Each Lender authorizes the Lender Agent to take such action on each Lender’s behalf and to exercise such powers,
rights and remedies and perform such duties hereunder and under the other Loan Documents as are specifically delegated or granted
to the Lender Agent by the terms hereof or otherwise agreed in writing by each Lender, together with such actions, powers, rights
and remedies as are reasonably incidental thereto. The Lender Agent shall have only those duties and responsibilities that are
expressly specified herein and the other Loan Documents. The Lender Agent may exercise such powers, rights and remedies and perform
such duties by or through its agents or employees. The Lender Agent shall not have or be deemed to have, by reason hereof or any
of the other Loan Documents, a fiduciary relationship in respect of each Lender; and nothing herein or any of the other Loan Documents,
expressed or implied, is intended to or shall be so construed as to impose upon the Lender Agent any obligations in respect hereof
or any of the other Loan Documents except as expressly set forth herein or therein.

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(c)Successor
Agent. The Lender Agent may assign its rights and duties as Lender Agent hereunder to an Affiliate of Silver Point without
the prior written consent of, or prior written notice to, any Borrower, Credit Party or any Lender; provided that the Borrowers,
Credit Parties and Lenders may deem and treat such assigning Lender Agent as the relevant Lender Agent for all purposes hereof,
unless and until such the Lender Agent provides written notice to Borrowers, Credit Parties and Lenders of such assignment. Upon
such assignment such Affiliate shall succeed to and become vested with all rights, powers, privileges and duties as the Lender
Agent hereunder and under the other Loan Documents. In addition, with the unanimous consent of all Lenders in the event there is
more than one Lender hereunder, Lenders may remove the Lender Agent and appoint a successor Lender Agent without the consent of
Borrowers, Credit Parties or the Lender Agent.

(d)Lenders
under Security and Guaranty. Each Lender hereby further authorizes the Lender Agent, on behalf of and for the benefit of each
Lender, to be the agent for and representative of each Lender with respect to the Guaranty, the Collateral and the Loan Documents
related thereto. With the written consent or authorization from each Lender, the Lender Agent may execute any documents or instruments
necessary to (i) release or subordinate any Lien encumbering any item of Collateral that is the subject of a sale or other disposition
of assets or for the establishment of the A/R Facility by Borrowers that, in either case, is permitted by the Loan Documents and
(ii) release any Guarantor from its guaranty if such release is permitted under the Loan Documents. After the payment in full of
the Obligations (other than indemnification Obligations), the Lender Agent shall, upon request of the Borrowers and the consent
of each Lender (such consent not to be unreasonably withheld), take such actions as shall be required to promptly release the security
interest in the Collateral and to promptly release each Guarantor from its guaranty under the Guaranty Agreements to which it is
a party.

(e)Loan Document
Provisions. For all purposes hereunder and under the other Loan Documents, any provision requiring any action, consent or vote
of a “Lender” may be taken or given by the Lender Agent acting at the direction of the Lenders.

		12.	[Intentionally
Omitted.]

		13.	SURETYSHIP WAIVERS

 

13.1Suretyship
Waivers. Because Credit Parties are not direct borrowers from Lenders under this Agreement, although the Loans directly and
indirectly benefit each Person comprising Borrowers and Credit Parties, it is possible that the Credit Parties could be construed
as guarantors or sureties of Borrowers and of each other and thereby have certain rights and remedies accorded to them that were
not intended to be available to any of them. Accordingly, in order to induce the Lenders to provide the credit facilities and
accommodations provided for herein, each Person which is a Borrower or a Credit Party for itself agrees as follows:

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(a)Irrevocable
Waivers. The waivers provided in this section are intended to be irrevocable and to apply to all present and future Obligations
of Borrowers and Credit Parties to Lenders, including those arising under successive transactions which shall either continue the
Obligations, increase or decrease them, or from time to time, create new Obligations, after all or any prior Obligations have been
satisfied, and notwithstanding the dissolution, liquidation or bankruptcy of Borrowers, Credit Parties, or Guarantors, of all or
any portion of the Obligations, or other event or proceeding affecting Borrowers or Credit Parties or Guarantors of any portion
of the Obligations.

(b)Separate
and Independent Obligations of Credit Parties. The Obligations of Credit Parties hereunder are separate and independent of
(i) Borrower’s obligation to pay Lenders principal and interest under the Term Note and the other Obligations hereunder,
and (ii) the liabilities and obligations of Credit Parties which are Guarantors. A separate action or actions may be brought
and prosecuted against Credit Parties whether or not any action is brought and prosecuted against Borrowers, and whether or not
Credit Parties are joined in any such action or actions. Borrowers and Credit Parties waive the benefit of any statute of limitations
affecting the Obligations hereunder or the enforcement thereof.

(c)Authority
of Lenders. Credit Parties and Guarantors hereby authorize Lenders, without notice or demand and without affecting their liability
hereunder, from time to time to: (i) amend, alter, restate, replace, modify, renew, extend, accelerate or otherwise change
the time for payment or the terms of the Obligations with Borrowers, including increasing or decreasing the Interest Rate thereon
or the principal amount thereof; (ii) accept partial payments on the Obligations from Borrowers or Guarantors; (iii) accept
new or additional documents, instruments or agreements relative to the Obligations; (iv) take and hold security or additional
guaranties for the payment of the Obligations, and amend, alter, exchange, substitute, transfer, enforce, waive, subordinate, terminate,
modify and release in any manner any such security or guaranties; (v) apply such security and direct the order or manner of
sale thereof as Lenders in their sole discretion may determine; (vi) release or substitute any Guarantor; (vii) settle,
release on terms satisfactory to Lenders (or by operation of law or otherwise), compound, compromise, collect or otherwise liquidate
any indebtedness or security in any manner, consent to the transfer of security and bid and purchase at any sale, without affecting
or impairing the Obligations of Borrowers or Credit Parties or Guarantors hereunder; or (viii) enforce any other right or
remedy granted to Lenders under this Agreement or under any of the other Loan Documents or under any Guaranty Agreement. No action
which Lenders shall take or fail to take in connection with this Agreement or any of the Loan Documents, or any of them, or any
security for the Obligations or other undertakings of Borrowers, nor any course of dealing with Borrowers or Credit Parties or
Guarantors, or any course of dealing with any other person or legal entity, shall release Borrower’s Obligations or Credit
Party’s or Guarantor’s responsibilities hereunder, shall affect this Agreement or the other Loan Documents in any way,
or afford Borrowers or Credit Parties or Guarantors any recourse against Lenders. Without limiting the generality of the foregoing,
Borrowers agree that this Agreement shall extend and be applicable to each new or replacement Note delivered by Borrowers pursuant
thereto without notice to or further consent from Credit Parties or Guarantors.

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(d)Waiver of
Rights Against Lenders. Borrowers and Credit Parties and Guarantors waive any right to require Lenders to: (i) proceed
against Borrowers, against Guarantors, against Credit Parties, or against anyone else; (ii) proceed against or exhaust any
security for the Obligations, or to marshal assets or to marshal assets of any Person in any particular order; (iii) except
as required by applicable law, give notice of the terms, time and place of any public or private sale of any real or personalty
securing the Obligations; or (iv) pursue any other remedy in such Lender’s power whatsoever. Each Person which is a
Borrower, Guarantor, or a Credit Party waives any defense arising by reason of any disability or other defense of Borrowers, Guarantors,
or Credit Parties, or by reason of the cessation from any cause whatsoever of the liability of Borrowers, Guarantors, or Credit
Parties, or by reason of any act or omission of Lenders or other Persons which directly or indirectly results in or aids the discharge
or release of Borrowers, Guarantors, or Credit Parties, or any of the Obligations or any security therefor by operation of law
or otherwise, or by reason of the amendment, modification, renewal, extension or other change in any of the Obligations. Borrowers,
Credit Parties and Guarantors waive all setoffs and counterclaims and all presentments, demands for performance, notices of nonperformance,
protests, notices of protest, notices of dishonor, and notices of acceptance of this Agreement and of the existence, creation,
or incurring of new or additional Obligations, and all other notices and demands of any kind and description now or hereafter provided
for by any statute or rule of law, except for such notices and demands as specifically required by this Agreement. Borrowers, Guarantors,
and Credit Parties expressly waive any right whatsoever to, or right whatsoever to participate in, any security now or hereafter
held by Lenders, reimbursement, indemnity, exoneration, contribution or any other claim under local, state or federal law, including,
without limitation, 11 U.S.C. 547, which it may now or hereafter have against Borrowers, Guarantors, or Credit Parties, or any
other Person directly or contingently liable for the Obligations, or against or with respect to Borrower’s or Credit Party’s
or Guarantor’s property (including, without limitation, any Collateral under any of the Loan Documents) arising from the
existence or performance of this Agreement until all of the Obligations have been indefeasibly paid or satisfied in full.

(e)Representations
and Warranties. Borrowers, Guarantors, and Credit Parties represent and warrant to each Lender that: (i) this Agreement
is executed at each Borrower’s, each Guarantor’s, and each Credit Party’s request; (ii) Guarantors, and
Credit Parties have each established adequate means of obtaining from Borrowers on a continuing basis financial and other information
pertaining to Borrower’s Business and Borrower’s financial condition; and (iii) Guarantors and Credit Parties
are now and will be completely familiar with the Business, operation and financial condition of Borrowers and its assets and of
its Business. Borrowers, Guarantors and Credit Parties hereby waive and relinquish any duty on the part of Lender to disclose to
any of said parties any matter, fact or thing relating to the Business, operation or financial condition of Borrowers and their
respective assets now known or hereafter known by any Lender during the term of this Agreement. With respect to any present or
future Obligations of Borrowers to any Lender, such Lender need not inquire into the authority of Borrowers, and any Obligations
made or created in reliance upon the professed exercise of such powers.

    	68

    	 

    

(f)No Set-Off,
Counterclaim, Etc. So long as any of the Obligations under this Agreement remain unpaid or undischarged, neither Guarantors
nor Credit Parties will, by paying any sum recoverable hereunder (whether or not demanded by Lenders) or by any means or on any
other ground, (i) claim any set-off or counterclaim against Borrowers, Guarantors, or Credit Parties in respect of any Obligations
or other indebtedness by virtue of the right of subrogation, by operation of law or otherwise; (ii) in any proceedings under
federal bankruptcy law or insolvency proceedings of any nature, assert its rights in competition with Lender in respect of any
payment hereunder because of any claims which Guarantors or Credit Parties may have against Borrowers or any other Person; or (iii) be
entitled to have the benefit of any counterclaim or proof of claim or dividend or payment by or on behalf of Borrowers, Guarantors,
or Credit Parties or other Person, or the benefit of any of any other security for any Obligation which, now or hereafter, Lenders
may hold or in which it may have any share or interest.

13.2Election of Remedies.
If Lenders may, under Applicable Laws, proceed to realize its benefits under any of the Loan Documents granting a Lien upon any
Collateral, whether owned by Borrowers or by any other Person, either by judicial foreclosure or by non-judicial sale or enforcement,
such Lender may, at its sole option, determine which of its remedies or rights it may pursue without affecting any of its rights
and remedies under this Section 13 (Suretyship Waivers). If, in the exercise of any of its rights and remedies, such
Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment against Borrowers or any
other Person, whether because of any applicable laws pertaining to “election of remedies” or the like, Borrowers hereby
consent to such action by such Lender and waive any claim based upon such action, even if such action by such Lender shall result
in a full or partial loss of any rights of subrogation that Borrowers might otherwise have had but for such action by such Lender.
Any election of remedies that results in the denial or impairment of the right of Lenders to seek a deficiency judgment against
Borrowers shall not impair Guarantor’s or Credit Party’s obligations to pay the full amount of the Obligations applicable
to it. In the event Lenders shall bid at any foreclosure or trustee’s sale or at any private sale permitted by law or the
Loan Documents, Lenders may bid all or less than the amount of the Obligations and the amount of such bid need not be paid by Lenders
but shall be credited against the Obligations.

 

[Signature Page Follows]

 

    	69

    	 

    

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed by their respective authorized representatives as of the date first above
written.

	 	
        LENDERS:

         

        SPCP Group, LLC,

        a Delaware limited liability company
	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	 	 
	 	
        LENDER AGENT:

         

        SILVER POINT FINANCE, LLC,

        a Delaware limited liability company
	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 

 

 

 

     

     

    

 

	 	
        BORROWERS:

         

        INTEGRATED HEALTHCARE HOLDINGS, INC., 

a Nevada corporation
	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	 	 
	 	WMC-A, INC., a California corporation	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	 	 
	 	WMC-SA, INC., a California corporation	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	 	 
	 	COASTAL COMMUNITIES HOSPITAL, INC., 

a California corporation	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	 	 
	 	CHAPMAN MEDICAL CENTER, INC., 

a California corporation	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 

 

     

     

    

 

	 	
        CREDIT PARTIES:

         

        PACIFIC COAST HOLDINGS INVESTMENT, LLC, 

a California limited liability
        company
	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	 	 	 
	 	 	 
	 	
        ganesha
realty, llc, 

a California limited liability company
	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 

 

 

     

     

    

ANNEX A

TO

AMENDED AND RESTATED 

CREDIT AGREEMENT ($47,277,000 Term Note)

DEFINITIONS

Initially capitalized
terms used in this Agreement shall (unless otherwise provided elsewhere in the Loan Documents) have the following respective meanings.
All references to Sections, Exhibits, Schedules or Annexes in the following definitions shall refer to sections, Exhibits, Schedules
or Annexes of or to this Credit Agreement:

“Absolute
Assignment” means each of the following:

the Absolute Assignment
of Leases and Rents With License Back re Western Medical Center - Anaheim, dated as of the Closing Date, by and among Closing Date
Lender, PCHI and WMC-A in the form of Exhibit “F” attached hereto;

the Absolute Assignment
of Leases and Rents With License Back re Western Medical Center — Santa Ana, dated as of the Closing Date, by and among Closing
Date Lender, PCHI and WMC-SA in the form of Exhibit “F” attached hereto;

the Absolute Assignment
of Leases and Rents With License Back re Coastal Communities Hospital, dated as of the Closing Date, by and among Closing Date
Lender, PCHI and Coastal in the form of Exhibit “F” attached hereto;

the Absolute Assignment
of Leases and Rents With License Back re Chapman MOB Lease, dated as of the Closing Date, by and among Closing Date Lender and
IHHI in the form of Exhibit “F” attached hereto; and

the Absolute Assignment
of Leases and Rents With License Back re Chapman Hospital Lease, dated as of the Closing Date, by and among Closing Date Lender
and IHHI in the form of Exhibit “F” attached hereto.

“Accounts”
means (i) the right to receive payment of rent, occupancy payments and other similar payments due and owing by any Person
using or occupying space in any real property owned or leased by Borrowers, plus (ii) the future right to receive payment
of any monetary obligations, whether or not earned by performance, now or hereafter existing, arising under or in relation to each
Borrower’s Business.

“Advance”
means any advance of funds under the Loans.

“Affiliate”
means, with respect to any Person (excluding Lender), (a) each Person that, directly or indirectly, owns or controls,
whether beneficially, or as a trustee, guardian or other fiduciary, 10% or more of the Stock having ordinary voting power in the
election of directors of such Person, (b) each Person that controls, is controlled by or is under common control with such
Person, (c) each of such Person’s officers, directors, joint venturers and partners, and (d) in the case of Borrowers,
the immediate family members, spouses and lineal descendants of individuals who are Affiliates of Borrowers. For the purposes of
this definition, “control” of a Person shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise.

    	Annex A-1

    	 

    

“Agreement”
means this Amended and Restated Credit Agreement by and among Borrowers, Credit Parties, Guarantors, Lenders, and Lender Agent,
as the same may be amended, supplemented, restated or otherwise modified from time to time.

“Amendment
and Restatement Agreement” means the Amendment and Restatement to the Credit Agreement dated as of February 7, 2013 (and
as amended, restated or otherwise modified from time to time) among Borrowers, Ganesha, PCHI, SPCP Group IV, LLC, Lenders and Lender
Agent.

“Amendment
No. 3 Effective Date” means April 13, 2010.

“Annexes”
means, together, Annex A (Definitions), Annex B (Cash Management System), Annex C (Collateral
Reports) and Annex D (Notice Addresses) attached to this Agreement.

“Applicable
Laws” means all federal, state and local laws, statutes, codes, regulations, rules, acts, ordinances of all Governmental
Authorities, departments, commissions, boards, courts, authorities, agencies, officials and officers, including without limitation,
Environmental Laws, all building, safety, health, use laws, the Fair Labor Standards Act, 29 U.S.C. §§201 et seq.,
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, 15 U.S.C. Section 18a, the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. 2101, et seq., as amended, and the California version of the WARN Act, and any deed restrictions or
other requirements of record applicable to the Collateral or to Borrowers or Credit Parties, or to their respective businesses.

“Appraisal”
means an appraisal of the Properties prepared by Marshall & Stevens, M.A.I.

“Appraised
Value” means the fair market value of the Properties as set forth in the Appraisal.

“A/R Facility”
means (a) the Credit and Security Agreement, dated as of or about August 30, 2010, among MidCap Financial, LLC, as administrative
agent and a lender, the Borrowers and the other parties thereto from time to time, as amended, restated, supplemented or otherwise
modified from time to time or (b) any Permitted Refinancing thereof.

“A/R Facility
Closing Date” means (a) August 30, 2010 or (b) with respect to any Permitted Refinancing of the A/R Facility, the closing
date of such facility.

“A/R Facility
Collateral” means the “Revolving Collateral” as such term is defined in the A/R Facility Intercreditor Agreement.

“A/R Facility
Intercreditor Agreement” means (a) the Intercreditor Agreement, dated as of or about August 30, 2010, among MidCap Financial,
LLC, the Lender Agent, the Borrowers and the Credit Parties, as amended, restated, supplemented or otherwise modified from time
to time subject to the terms and conditions of the A/R Facility Intercreditor Agreement and (b) any intercreditor or subordination
documentation entered with respect to any replacement A/R Facility in form reasonably agreed to by Lender Agent and substantially
consistent with the A/R Facility Intercreditor Agreement referred to in clause (a) of this definition.

    	Annex A-2

    	 

    

“A/R Facility
Lender Agent” means the Agent as defined in the A/R Facility.

“A/R Facility
Liens” means a first and prior assignment of and security interest in the A/R Facility Collateral and the proceeds and
products thereof.

“Authorized
Individual” has the meaning ascribed to it in Section 1.5(g).

“Bank”
means Wells Fargo Bank, N.A., located at 2030 Main Street, Suite 900, Irvine, California 92614.

“Bankruptcy
Code” means the provisions of Title 11 of the United States Code, 11 U.S.C. §101 et seq.

“Borrowers”
means IHHI, WMC-A, WMC-SA, Chapman and Coastal.

“Borrower’s
Representative” means an Authorized Individual at the address of IHHI, or any replacement therefor approved by
Lender as required by this Agreement.

“Business”
means the business of Borrowers as defined in the Recitals set forth above.

“Business
Day” means each day of the year that is not a Saturday or Sunday and which day (a) is not a day on which federally-chartered
banking institutions in New York, New York are required to close, and (b) is a not a regularly scheduled holiday in the state
of New York or in the United States.

“Capital
Expenditure(s)” means, with respect to any Person, all expenditures (by the expenditure of cash or the incurrence
of Indebtedness) by such Person during any measuring period for any fixed assets or improvements or for replacements, substitutions
or additions thereto that have a useful life of more than one year and that are required to be capitalized under GAAP.

“Capital
Lease” means, with respect to any Person, any lease of any property (whether real, personal or mixed) by such
Person as lessee that, in accordance with GAAP, would be required to be classified and accounted for as a capital lease on a balance
sheet of such Person.

“Capital
Lease Obligation” means, with respect to any Capital Lease of any Person, the amount of the obligation of the
lessee thereunder that, in accordance with GAAP, would appear on a balance sheet of such lessee in respect of such Capital Lease.

    	Annex A-3

    	 

    

“Cash Collateral
Account” has the meaning ascribed to it Annex B (Cash Management System).

“Cash Management
System” means the cash management system described in Annex B (Cash Management System).

“Certified
Cash” means the net amount of Dollars in unrestricted cash and cash equivalents of Borrowers that is/are in Deposit
Accounts or securities accounts maintained by a branch of a bank or securities intermediary within the United States and which
are identified on Disclosure Schedule 3.18 (Deposit and Disbursement Accounts), as updated by Borrowers from time to
time, as Certified Cash Accounts, which Certified Cash Accounts are not subject to any Liens, statutory liens or rights of offset,
any overdraft, or any other charge or priority in favor of any Person other than Lender or, for any Deposit Account or securities
account, the rights of the applicable bank or securities intermediary maintaining such Deposit Account or securities account with
respect to customary account charges relating thereto (provided, that any amounts subject to any such rights in favor of any such
bank or securities intermediary shall be excluded from Certified Cash for purposes of calculation of the amount thereof). For the
avoidance of any doubt, the amount of Borrowers’ marketable securities and Qualified Cash at the time of any determination
shall be deemed to constitute Certified Cash but only to the extent they are not subject to any Liens, statutory liens or rights
of offset, any overdraft, or any other charge or priority in favor of any Person other than Lender.

“Change
of Control” means that any of the following have occurred: (a) Kali P. Chaudhuri, M.D. and his Affiliates
no longer beneficially own a majority of the outstanding shares (and/or securities readily convertible into or exercisable for
shares) of Voting Stock on a fully diluted basis of IHHI; or (b) during any period of twelve (12) consecutive calendar
months, Persons who at the beginning of such period constituted the majority of the board of directors of any Borrower or the majority
of the managers of PCHI (together with any new Person whose nomination or election or appointment was approved by the required
vote of the shareholders or members) cease for any reason (other than death or personal disability) to constitute a majority of
the board of directors of any Borrower or the majority of the managers of PCHI; or (c) IHHI ceases to own, directly or indirectly,
and control, all (100%) of the Stock of WMC-A, WMC-SA, Chapman and Coastal; or (d) Kenneth K. Westbrook ceases to be
Chief Executive Officer or Director of IHHI, or WMC-A, or WMC-SA, or Chapman, or Coastal, and a replacement Chief Executive Officer
acceptable to Lender in its sole discretion is not employed by the applicable Borrower within thirty (30) calendar days after
the date that Kenneth K. Westbrook is no longer Chief Executive Office or Director of IHHI, or WMC-A, or WMC-SA, or Chapman, or
Coastal; (e) Ganesha ceases to own, directly or indirectly, at least 49% of the membership interests of PCHI or any other
Person (other than any entity the shareholders and shareholdings of which are substantially the same as the non-Ganesha shareholders
and shareholdings of PCHI on the Amendment No. 3 Effective Date) and its Affiliates owns, directly or indirectly, a greater percentage
of membership interests of PCHI than Ganesha; or (f) Kali P. Chaudhuri, M.D. ceases to own, directly or indirectly, a majority
of the outstanding Voting Stock of Ganesha. Notwithstanding the foregoing, a Change of Control shall not occur as a result of the
exercise by Kali P. Chaudhuri, M.D., SPCP Group IV, LLC, SPCP Group, LLC or their respective Affiliates or designees or assigns
of the warrants issued by IHHI to Kali P. Chaudhuri, M.D., KPC Resolution Company, LLC (so long as it is controlled by Kali P.
Chaudhuri, M.D.), SPCP Group IV, LLC, and SPCP Group, LLC or their respective designees or assigns on the Amendment No. 3 Effective
Date.

    	Annex A-4

    	 

    

“Chapman”
means Chapman Medical Center, Inc., a California corporation.

“Chapman
Leases” means each of the following:

That certain lease
agreement dated December 31, 1984, by and between Chapman Medical, L.P., a California limited partnership, successor-in-interest
to Chapman Investments Associates, a California limited liability company, successor-in-interest to James L, Kirby, Successor Trustee
of the Taggart Land Trust dated December 29, 1977, Fred D. Pierce, Trustee of the Stanford Land Trust dated December 29,
1977, Lawrence A. Johnson, Trustee of the Oxford Land Trust dated December 29, 1977, James L. Kirby, Successor Co-Trustee
of the Cayuga Land Trust dated December 29, 1977, Melia Harper Long, Successor Co-Trustee of the Cayuga Land Trust dated December 29,
1977, and Mattison James Harper, Successor Co-Trustee of the Cayuga Land Trust dated December 29, 1977, as tenants in common
doing business under the fictitious name Chapman Investment Associates (collectively, “Hospital Landlord”),
and Chapman General Hospital, Inc., a California corporation, as the initial Tenant thereunder (the “Hospital Tenant”).
Said lease agreement was amended by a First Amendment dated April 8, 1985, by a Second Amendment dated April 1, 1989,
by a Third Amendment dated November 5, 1990 and by a Fourth Amendment dated August 25, 1994. Said lease, as amended by
the First, Second, Third and Fourth Amendments, shall collectively hereinafter be referred to as the “Chapman Hospital
Lease.” The 2601 East Chapman Hospital Lease encumbers the real property and hospital improvements commonly described
as and located at 2601 East Chapman Avenue, Orange, California. A memorandum of the Chapman Hospital Lease was recorded on August 30,
1994 as Instrument No. 94-0533295 of the Official Records of the Office of the County Recorder of the County of Orange, State of
California. Hospital Tenant’s interest in the Chapman Hospital Lease was assigned and transferred to IHHI on March 5,
2005.

That certain lease
agreement dated December 31, 1984 by and between Chapman Medical, L.P., a California limited partnership, successor-in-interest
to Chapman Investments Associates, a California limited liability company, successor-in-interest to James L, Kirby, Successor Trustee
of the Taggart Land Trust dated December 29, 1977, Fred D. Pierce, Trustee of the Stanford Land Trust dated December 29,
1977, Lawrence A. Johnson, Trustee of the Oxford Land Trust dated December 29, 1977, James L. Kirby, Successor Co-Trustee
of the Cayuga Land Trust dated December 29, 1977, Melia Harper Long, Successor Co-Trustee of the Cayuga Land Trust dated December 29,
1977, and Mattison James Harper, Successor Co-Trustee of the Cayuga Land Trust dated December 29, 1977, as tenants in common
doing business under the fictitious name Chapman Investment Associates (collectively, “MOB Landlord”) and
Greatwest Medical Management, Inc., a California corporation, as the initial Tenant (the “MOB Tenant”). Said
lease agreement was amended by a First Amendment dated April 8, 1985, and by a Second Amendment dated August 25, 1994.
Said lease agreement, as amended by the First Amendment and Second Amendment, shall collectively hereinafter be referred to as
the “Chapman MOB Lease.” The 2617 East Chapman MOB Lease encumbers the medical office building premises
commonly described as and located at 2617 East Chapman Avenue, Orange, California. A memorandum of the Chapman MOB Lease was recorded
on August 30, 1994 as Instrument No. 94-0533296 of the Official Records of the Office of the County Recorder of the County
of Orange, State of California. MOB Tenant’s interest in the Chapman MOB Lease was assigned and transferred to IHHI on March 5,
2005.

    	Annex A-5

    	 

    

“Chapman
Medical Center” means the real property and hospital improvements located at 2601 East Chapman Avenue, Orange,
California, and the real property and medical office building improvements located at 2617 East Chapman Avenue, Orange, California.

“Charges”
means all federal, state, county, city, municipal, local, foreign or other governmental taxes (including taxes owed to the PBGC
at the time due and payable), levies, assessments, charges, liens, claims or encumbrances upon or relating to (a) the Collateral,
(b) the Obligations, (c) the employees, payroll, income or gross receipts of any of Borrowers or any of the Credit Parties,
(d) the use of any real property owned or leased by Borrowers or Credit Parties (other than Ganesha and OC-PIN), or (e) any
other aspect of the Business of Borrowers or the business of Credit Parties (other than Ganesha and OC-PIN).

“Chattel
Paper” means any chattel paper,” as such term is defined in the Code, including electronic chattel paper,
now owned or hereafter acquired by Borrowers or Credit Parties.

“Closing
Date” means October 9, 2007.

“Closing
Date Lender” means Medical Provider Financial Corporation II, a Nevada Corporation.

“Closing
and Funding Checklist” means the closing and funding checklist prepared by Closing Date Lender listing certain
documents and information to be delivered in connection with the closing of the Original Credit Agreement and the other Loan Documents
and the transactions contemplated thereunder, as described in Annex C (Collateral Reports).

“Coastal”
means Coastal Communities Hospital, Inc., a California corporation.

“Coastal
Communities Hospital” means the real property and hospital improvements located at 2701 South Bristol Street and
1901 and 1905 North College Avenue, Santa Ana, California.

“Code”
means the Uniform Commercial Code as the same may, from time to time, be enacted and in effect in the State of Nevada;
provided, that to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined
differently in different Articles or Divisions of the Code, the definition of such term contained in such Article or Division shall
govern; and provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment,
perfection or priority of, or remedies with respect to, Lender or any Lien on any Collateral is governed by the Uniform Commercial
Code as enacted and in effect in a jurisdiction other than the State of Nevada, the term “Code” shall
mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions
thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.

    	Annex A-6

    	 

    

“Collateral”
means the following:

all of each Borrower’s
tangible personal property, including without limitation all present and future Inventory and Equipment (including items of equipment
which are or become Fixtures), now owned or hereafter acquired;

all of each Borrower’s
intangible personal property and interests in personal property, including without limitation all present and future Accounts,
contract rights, Permits, General Intangibles, Chattel Paper, Documents, Instruments, Deposit Accounts, Investment Property, Supporting
Obligations, rights to the payment of money or other forms of consideration of any kind, tax refunds, insurance proceeds, now owned
or hereafter acquired, and all intangible and tangible personal property relating to or arising out of any of the foregoing;

all of each Borrower’s
Government Contracts and rights thereunder and the related Government Accounts and proceeds thereof, now or hereafter owned or
acquired by such Borrower; provided, however, that Lender shall not have a Lien in any rights under any Government Contract
of any Borrower or in the related Government Account where the taking of such security interest is a violation of an express prohibition
contained in the Government Contract (for purposes of this limitation, the fact that a Government Contract is subject to, or otherwise
refers to, Title 31, § 203 or Title 41, §15 of the United States Code shall not be deemed an express prohibition
against assignment thereof) or is prohibited by applicable law, unless in any case consent is otherwise validly obtained;

PCHI’s fee simple
interest in the Western Medical Center - Anaheim, in the Western Medical Center – Santa Ana, and in the Coastal Communities
Hospital;

IHHI’s interest,
as tenant, in the Triple Net Lease of the Western Medical Center — Anaheim, the Western Medical Center — Santa Ana,
and the Coastal Communities Hospital;

IHHI’s interest,
as sublandlord, in the sublease of the Western Medical Center - Anaheim to WMC-A, in the sublease of the Western Medical Center
- Santa Ana to WMC-SA, and in the sublease of the Coastal Communities Hospital to Coastal;

IHHI’s interest,
as MOB Tenant, in the Chapman MOB Lease;

IHHI’s interest,
as Hospital Tenant, in the Chapman Hospital Lease; and

any and all additions
and accessions to any of the foregoing, and any and all replacements, products and proceeds (including insurance proceeds) of any
of the foregoing.

“Collateral
Assignment” means each of the following:

the Collateral Assignment
of Contracts re Western Medical Center — Anaheim, dated as of the Closing Date, by and among Closing Date Lender, IHHI and
WMC-A in the form of Exhibit “H” attached hereto;

the Collateral Assignment
of Contracts re Western Medical Center — Santa Ana, dated as of the Closing Date, by and among Closing Date Lender, IHHI
and WMC-SA in the form of Exhibit “H” attached hereto;

    	Annex A-7

    	 

    

the Collateral Assignment
of Contracts re Coastal Communities Hospital, dated as of the Closing Date, by and among Closing Date Lender, IHHI and Coastal
in the form of Exhibit “H” attached hereto;

the Collateral Assignment
of Contracts re Chapman MOB Lease, dated as of the Closing Date, by and among Closing Date Lender and IHHI in the form of Exhibit “H”
attached hereto; and

the Collateral Assignment
of Contracts re Chapman Hospital Lease, dated as of the Closing Date, by and among Closing Date Lender and IHHI in the form of
Exhibit “H” attached hereto.

“Collateral
Documents” means the $80,000,000 Deeds of Trust, the Absolute Assignments, the Collateral Assignment, the Security
Agreement, the Pledge Agreement, the Stock Power, the IP Security Agreement, the UCC-1 Financing Statements, and all similar agreements,
documents and instruments entered into guaranteeing payment of, or granting a Lien upon, real and personal property (and interests
in real and personal property), and perfecting the Liens, as security for payment of, the Obligations.

“Collateral
Reports” means the reports with respect to the Collateral referred to in Annex C (Collateral Reports).

“Contracts”
means all contracts as such term is defined in the Code, now owned or hereafter acquired by any of Borrowers, in any event,
including all contracts, undertakings, or agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in
or under which any of the Borrowers may now or hereafter have any right, title or interest, including any agreement relating to
the terms of payment or the terms of performance of any Accounts.

“Control
Agreement” means prior to April 13, 2010, the Control Agreement dated as of the Closing Date, by and among Closing
Date Lender, Borrowers and Bank in the form of Exhibit “J” attached hereto.

“Copyright
License” means any and all rights now owned or hereafter acquired by any of the Borrowers under any written agreement
granting any right to use any Copyright or Copyright registration.

“Copyrights”
means all of the following now owned or hereafter adopted or acquired by any of the Borrowers or any of the Credit Parties:
(a) all copyrights and General Intangibles of like nature (whether registered or unregistered), all registrations and recordings
thereof, and all applications in connection therewith, including all registrations, recordings and applications in the United States
Copyright Office or in any similar office or agency of the United States, any state or territory thereof, or any other country
or any political subdivision thereof, and (b) all reissues, extensions or renewals thereof.

“Credit
Parties” means PCHI, OC-PIN and Ganesha, and their respective successors and assigns.

    	Annex A-8

    	 

    

“Default”
means any event that, with the passage of time or notice or both, would, unless cured or waived in writing by Lender, become
an Event of Default.

“Default
Rate” means a rate of interest which is five percent (5%) per annum above the Interest Rate per annum otherwise
applicable to the Loan.

“Deposit
Accounts” means all deposit accounts as such term is defined in the Code, now or hereafter held in the name of
any of the Borrowers.

“Deposit
Account Security Agreement” means that certain Deposit Account Security Agreement dated as of the Closing Date,
by and among the Closing Date Lender and Borrowers in the form of Exhibit “I” attached hereto.

“Disbursement
Accounts” has the meaning ascribed to it in Annex B (Cash Management System).

“Disclosure
Schedules” means the Schedules prepared by Borrowers and denominated as Disclosure Schedules 2.1(b)
through 6.7 to this Agreement.

“Documents”
means all documents, as such term is defined in the Code, now owned or hereafter acquired by any of Borrowers, wherever located.

“Dollars”
or “$” means lawful currency of the United States of America.

“Dr. Shah”
means Anil V. Shah, M.D., an individual.

“$10,700,000
Credit Agreement” has the meaning ascribed to it in the Recitals.

“$35,000,000
Non-Revolving Line of Credit Loan” means the $35,000,000 non-revolving line of credit loan made by Closing
Date Lender to Borrowers pursuant to the Original Credit Agreement.

“$50,000,000 Credit Agreement”
has the meaning ascribed to it in the Recitals.

“$80,000,000 Deed of Trust”
means each of the following:

the Deed of Trust With Assignment of Rents
and Fixture Filing re Western Medical Center - Anaheim, dated as of the Closing Date, executed by PCHI in favor of Closing Date
Lender in the form of Exhibit “E” attached hereto;

the Deed of Trust With Assignment of Rents
and Fixture Filing re Western Medical Center - Santa Ana, dated as of the Closing Date, executed by PCHI in favor of Closing Date
Lender in the form of Exhibit “E” attached hereto;

    	Annex A-9

    	 

    

the Deed of Trust With Assignment of Rents
and Fixture Filing re Coastal Communities Hospital, dated as of the Closing Date, executed by PCHI in favor of Closing Date Lender
in the form of Exhibit “E” attached hereto;

the Deed of Trust With Assignment of Rents
and Fixture Filing re Chapman MOB Lease, dated as of the Closing Date, executed by IHHI in favor of Closing Date Lender in the
form of Exhibit “E” attached hereto; and

the Deed of Trust With Assignment of Rents
and Fixture Filing re Chapman Hospital Lease, dated as of the Closing Date, executed by IHHI in favor of Closing Date Lender in
the form of Exhibit “E” attached hereto.

“Effective
Date” means October 9, 2007.

“Environmental
Indemnity Agreement” means an Environmental Indemnity Agreement dated as of the Closing Date, by and between Borrowers,
Credit Parties (other than Ganesha) and Closing Date Lender, in the form of Exhibit “M” attached hereto.

“Environmental
Laws” means all federal, state and local health, safety, environmental or natural resource laws, statutes, regulations,
rules, ordinances, codes, licenses, permits, orders, approvals, authorizations, concessions, franchises and similar items of all
federal, state, county, municipal, or other governmental, quasi-governmental, regulatory or administrative authority, agency, board,
court, arbitrator, body, instrumentality, commission or other judicial body exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to Governmental Authority having jurisdiction, including, without limitation all statutes
referred to by name in the definition of Hazardous Materials; and all other state, federal, and local laws, regulations, rules,
ordinances and orders which govern: (i) the existence, cleanup and/or remedy of contamination on real property and improvements;
(ii) the emission or discharge of Hazardous Materials into the environment; (iii) the control of Hazardous Materials;
(iv) the use, generation, transport, treatment, storage, disposal, removal, or recovery of Hazardous Materials; as well as
all applicable judicial and administrative and regulatory decrees, judgments or orders (including without limitation the common
law) and all applicable covenants running with the land that relate to the protection of health, safety, environment or natural
resources.

“Environmental
Liabilities” means, with respect to any Person, all environmental liabilities, obligations, responsibilities,
response, remedial and removal costs, investigation and feasibility study costs, capital costs, operation and maintenance costs,
losses, damages, punitive damages, property damages, natural resource damages, consequential damages, treble damages, costs and
expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants), fines, penalties, sanctions
and interest incurred as a result of or related to any claim, suit, action, investigation, proceeding or demand by any Person,
whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law, including
any arising under or related to any Environmental Laws, Environmental Permits, or in connection with any Release or threatened
Release or presence of a Hazardous Material whether on, at, in, under, from or about or in the vicinity of any real or personal
property.

    	Annex A-10

    	 

    

“Environmental
Losses” means any and all losses (including diminution in value of a Property), liabilities, damages, demands,
claims, actions, judgments, causes of action, assessments, penalties, costs and expenses (including sums paid in settlement of
claims), liens, interest, fines or penalties, including without limitation, the fees and disbursements of outside counsel, paralegals
and accountants, consultant fees, expert fees, all foreseeable and unforeseeable consequential damages, and all other costs and
expenses of any kind or nature, which are suffered or incurred by Lender with respect to a Property or adjacent real property or
improvements arising out of or as a result of (i) the occurrence of any Hazardous Material Activity; (ii) any violation
of any Environmental Laws or Applicable Laws; (iii) any investigation, inquiry, order, hearing, action, or other proceeding
by or before any Governmental Authority in connection with any Hazardous Material Activity; (iv) any Hazardous Material Claims
brought, asserted, or alleged against Lender or against any of Lender’s directors, officers, shareholders, employees, attorneys,
or agents; (v) any actions taken by Lender to enter and inspect a Property pursuant to the rights granted Lender under this
Agreement and the other Loan Documents; and (vi) any misrepresentation or inaccuracy in any representation or warranty by
any Borrower or any Credit Party or any material breach or failure to perform any covenants or obligations by any Borrower or any
Credit Party pursuant to this Agreement relating to environmental matters.

“Environmental
Permits” means all permits, licenses, authorizations, certificates, approvals or registrations required by any
Governmental Authority under any Environmental Laws.

“Equipment”
means all equipment, as such term is defined in the Code, now owned or hereafter acquired by Borrowers, wherever located.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any regulations promulgated thereunder.

“ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with any other Person, are
treated as a single employer within the meaning of Sections 414(b), (c), (m) or (o) of the IRC.

“ERISA
Event” means (a) with respect to a Title IV Plan, any event described in Section 4043(c) of ERISA
for which notice to the PBGC has not been waived; (b) the withdrawal of Borrowers or any ERISA Affiliate from a Title IV
Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as defined in Section 4001(a)(2(
of ERISA; (c) the complete or partial withdrawal of Borrowers or any ERISA Affiliate from any Multiemployer Plan; (d) the
filing of a notice of intent to terminate a Title IV Plan in a distress termination described in Section 4041 (c) of
ERISA or the treatment of a plan amendment as a termination under Section 4041 of ERISA; (e) the institution of proceedings
to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (f) with respect to a Title IV Plan, the existence
of an “accumulated funding deficiency” (as defined in Section 412 of the IRC or Section 302 of ERISA) whether
or not waived, or the failure to make by its due date a required installment under Section 412(m) of the Code or the failure
to make any required contribution to a Multiemployer Plan; (g) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with respect to a Title IV Plan; (h) the making
of any amendment to any Title IV Plan which could result in the imposition of a lien or the posting of a bond or other security;
(i) with respect to a Title IV Plan an event described in Section 4062(e) of ERISA; (j) any other event or
condition that would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the imposition of liability under Section 4069
or 4212(c) of ERISA; (k) the termination of a Multiemployer Plan under Section 4041A of ERISA or the reorganization or
insolvency of a Multiemployer Plan under Section 4241 or 4245 of ERISA; (1) the loss of a Qualified Plan’s qualification
or tax exempt status; or (m) the termination of a Plan described in Section 4064 of ERISA.

    	Annex A-11

    	 

    

“Escrow”
means an escrow account established by the Escrow Company.

“Escrow
Company” means Chicago Title Insurance Company, Commercial/Industrial, 700 South Flower Street, Suite 800,
Los Angeles, California 90017, Attn: Patricia M. Schlageck (“Sr. Commercial Escrow Officer”), telephone:
213-488-4358; facsimile: 213-612-4138; email: patricia.schlageck@ctt.com.

“Escrow
Holder” means Escrow Company.

“Event
of Default” means that Borrowers and/or Credit Parties have committed one or more of the events described in Section 8.1
(Events of Default) of this Agreement.

“Exhibits”
means any of Exhibits “A” through “T” attached to this Agreement.

“Existing
Real Estate Term Loans” means the $47,277,000 real estate term loan made by Lenders to Borrowers outstanding as of the
Restatement Effective Date.

“Existing
Real Estate Term Note” means, collectively, promissory notes dated as of the Closing Date, in the aggregate principal
amount of $45,000,000, executed by Borrowers in favor of Closing Date Lender pursuant to the Original Credit Agreement.

“Financial
Statements” means the consolidated income statements, statements of cash flows and balance sheets of each of the
Borrowers delivered in accordance with Section 3.4 (Financial Statements and Projections) of this Agreement.

“First Credit Agreement”
means that certain Credit Agreement dated to be effective as of March 3, 2005, by and between Borrowers, Credit Parties
and Closing Date Lender. Pursuant to the First Credit Agreement, Closing Date Lender made available to Borrowers the Previous $50,000,000
Acquisition Loan and the Previous $30,000,000 Line of Credit Loan.

“Fiscal
Month” means any of the monthly accounting periods of Borrowers.

“Fiscal
Quarter” means any of the quarterly accounting periods of Borrowers, ending on March 31, June 30, September 30
and December 31 of each year.

“Fiscal
Year” means any of the annual accounting periods of Borrowers ending on March 31 of each year.

“Fixtures”
means all fixtures as such term is defined in the Code, now owned or hereafter acquired by Borrowers or Credit Parties.

“Fraudulent
Transfer Law” means Section 548 of Title 11 of the United States Code or any applicable provisions of
comparable state law.

    	Annex A-12

    	 

    

“Funded
Debt” means, with respect to any Person, without duplication, all Indebtedness for borrowed money evidenced by
notes, bonds, debentures, or similar evidences of Indebtedness and that by its terms matures more than one year from, or is directly
or indirectly renewable or extendible at such Person’s option under a line of credit or similar agreement obligating the
lender or lenders to extend credit over a period of more than one year from the date of creation thereof, and specifically including
Capital Lease Obligations, current maturities of long term debt, lines of credit and short term debt extendible beyond one year
at the option of the debtor, and also including, in the case of Borrowers, the Obligations and, without duplication, Guaranteed
Indebtedness consisting of guaranties of Funded Debt of other Persons.

“GAAP”
means, as to a particular Person, such accounting practice as, in the opinion of the independent accountants regularly retained
by such Person, conforms at the time to Generally Accepted Accounting Principles, consistently applied.

“Generally
Accepted Accounting Principles” means those principles and practices in the United States of America (a) which
are recognized as such by the Financial Accounting Standards Board, (b) which are applied for all periods after the date hereof
in a manner consistent with the manner in which such principles and practices were applied to the most recent Financial Statements
furnished Lender of the relevant Person, and (c) which are consistently applied for all periods after the date hereof so as
to reflect properly the financial condition, and results of operations and changes in financial position, of such Person. If any
change in any accounting principle or practice is required by the Financial Accounting Standards Board in order for such principle
or practice to continue as a Generally Accepted Account Principle or practice, all reports and Financial Statements required hereunder
shall be prepared in accordance with such changes.

“Ganesha”
means Ganesha Realty, LLC, a California limited liability company.

“General
Intangibles” means all general intangibles, as such term is defined in the Code, now owned or hereafter acquired
by Borrowers, including all right, title and interest that Borrowers may now or hereafter have in or under any Contract, all payment
intangibles, customer lists, Licenses, Copyrights, Trademarks, Patents, and all applications therefore and reissues, extensions
or renewals thereof, rights in Intellectual Property, interests in partnerships, joint ventures and other business associations,
licenses, permits, copyrights, trade secrets, proprietary or confidential information, inventions (whether or not patented or patentable),
technical information, procedures, designs, knowledge, know-how, software, data bases, data, skill, expertise, experience, processes,
models, drawings, materials and records, goodwill (including the goodwill associated with any Trademark or Trademark License),
all rights and claims in or under insurance policies (including insurance for fire, damage, loss and casualty, whether covering
personal property, real property, tangible rights or intangible rights, all liability, life, key man and business interruption
insurance, and all unearned premiums), uncertificated securities, choices in action, deposit, checking and other bank accounts,
rights to receive tax refunds and other payments, rights to receive dividends, distributions, cash, Instruments and other property
in respect of or in exchange for pledged Stock and Investment Property, rights of indemnification, all books and records, correspondence,
credit files, invoices and other papers, including without limitation all tapes, cards, computer runs and other papers and documents
in the possession or under the control of Borrowers or any computer bureau or service company from time to time acting for Borrowers.

“Goods”
means all goods as defined in the Code, now owned or hereafter acquired by Borrowers, wherever located, including embedded software
to the extent included in goods as defined in the Code.

    	Annex A-13

    	 

    

“Governmental
Authority” means any nation or government, any state, county, city, or other political subdivision thereof, and
any agency, department or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

“Guaranteed
Indebtedness” means as to any Person, any obligation of such Person guaranteeing, providing comfort or otherwise
supporting any Indebtedness, lease, dividend, or other obligation of any other Person in any manner, including any obligation or
arrangement of such Person to (a) purchase or repurchase any such primary obligation, (b) advance or supply funds (i) for
the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency or any balance sheet condition of the primary obligor, (c) purchase
property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability
of the primary obligor to make payment of such primary obligation, (d) protect the beneficiary of such arrangement from loss
(other than product warranties given in the ordinary course of business) or (e) indemnify the owner of such primary obligation
against loss in respect thereof. The amount of any Guaranteed Indebtedness at any time shall be deemed to be an amount equal to
the lesser at such time of (x) the stated or determinable amount of the primary obligation in respect of which such Guaranteed
Indebtedness is incurred and (y) the maximum amount for which such Person may be liable pursuant to the terms of the instrument
embodying such Guaranteed Indebtedness, or, if not stated or determinable, the maximum reasonably anticipated liability (assuming
full performance) in respect thereof.

“Guarantors”
means OC-PIN and PCHI, and their respective successors and assigns.

“Guaranty
Agreement” means a Guaranty Agreement dated as of the Closing Date, executed by the Guarantors and Closing Date
Lender, in the form of Exhibit “N” attached hereto.

“Hazardous
Material” means any (a) substance, product, waste or other material of any nature whatsoever which is or
becomes listed, regulated, or addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C. Section 9601, et seq. (“CERCLA”); the Hazardous Materials Transportation Act,
49 U.S.C. Section 5101, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et
seq. (“RCRA”); the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et seq.;
the Clean Water Act, 33 U.S.C. Sections 1251 et seq.; the Federal Water Pollution Control Act (33 U.S.C. Section 1251,
et seq.) (“Clean Water Act” or “CWA”); the Atomic Energy Act of 1954
(42 U.S.C. Section 2011, et seq.) (“AEA”); the Clean Air Act (42 U.S.C. Section 7401,
et seq.); the Emergency Planning and Community Right to Know Act (42 U.S.C. Section 11001, et seq.);
the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Section 136, et seq.) (“FIFRA”);
the Oil Pollution Act of 1990 (P.L. 101-380, 104 Stat. 486); the Safe Drinking Water Act (42 U.S.C. Sections 300f, et
seq.) (“SDWA”); the Surface Mining Control and Reclamation Act of 1974 (30 U.S.C. Sections 1201,
et seq.); the Toxic Substances Control Act (15 U.S.C. Section 2601, et seq.) (“TSCA”);
the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. Section 7901, et seq.) (“UMTRCA”);
all respective regulations promulgated thereunder; and or any other federal, state or local statute, law, ordinance, resolution,
code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any
hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect, (b) any substance,
product, waste or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under
any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported
decisions of a state or federal court, (c) petroleum or crude oil other than petroleum and petroleum products contained within
regularly operated motor vehicles, and (d) asbestos.

    	Annex A-14

    	 

    

“Hazardous
Material Activity” means any storage, holding, existence, release, emission, discharge, generation, processing,
abatement, removal, disposition, handling or transportation of any Hazardous Material from, under, into, or across any Property
or surrounding real property and improvements or any other use of or operation of any Property or surrounding real property or
improvements that creates a risk of Hazardous Material contamination of said Property; provided, however, that Hazardous
Material Activity shall not include reasonable incidental use, storage and disposal of Hazardous Materials on the Property provided
that such use, disposal and storage complies with the following: (a) such use, disposal and storage shall be limited to customary
supplies, including supplies and materials customarily used, stored and disposed of in the normal operations of medical facilities;
(b) no such products or supplies create any risk of harm to persons or property including any Collateral under this Agreement
and the other Loan Documents; and (c) all such products and supplies are used, stored and disposed of in material compliance
with all applicable Environmental Laws.

“Hazardous
Material Claim” means any and all enforcement, clean-up, removal, remedial or other governmental or regulatory
actions, agreements, or orders threatened, instituted or completed pursuant to any Environmental Laws and any all other actions,
proceedings, claims, demands or causes of action, whether meritorious or not (including, without limitation, third party claims
for contribution, indemnity, personal injury or real or personal property damage), which directly or indirectly relate to, arise
from or are based in whole or in part on: (i) the occurrence or alleged occurrence of any Hazardous Material Activity, (ii) any
violation or alleged violation of any applicable Environmental Laws relating to a Property or to the ownership, use, occupation
or operation thereof; and (iii) any investigation, inquiry, order, hearing, action or other proceeding by or before any Governmental
Authority in connection with any Hazardous Material Activity.

“Hospital
Facilities” and/or “Hospital Facility” means Western Medical Center-Anaheim, the Western
Medical Center-Santa Ana, the Coastal Communities Hospital and the Chapman Medical Center.

“Hospital
Landlord” has the meaning assigned to such term in the definition of “Chapman Leases.”

“IHHI”
means Integrated Healthcare Holdings, Inc., a Nevada corporation.

    	Annex A-15

    	 

    

“Indebtedness”
means, with respect to any Person, without duplication, (a) all indebtedness of such Person for borrowed money or for
the deferred purchase price of property payment for which is deferred six (6) months or more, but excluding obligations to
trade creditors incurred in the ordinary course of business that are unsecured and not overdue by more than six (6) months
unless being contested in good faith, (b) all reimbursement and other obligations with respect to letters of credit, bankers’
acceptances and surety bonds, whether or not matured, (c) all obligations evidenced by note, bonds, debentures or similar
instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect
to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations and the present value
of future rental payments under all synthetic leases, (f) all obligations of such Person under commodity purchase or option
agreements or other commodity price hedging arrangements, in each case whether contingent or matured, (g) all obligations
of such Person under any foreign exchange contract, currency swap agreement, interest rate swap, cap or collar agreement or other
similar agreement or arrangement designed to alter the risks of that Person arising from fluctuations in currency values or interest
rates, in each case whether contingent or matured, (h) all Indebtedness referred to above secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property or other assets
(including accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness, and (i) the Obligations.

“Independent
Director(s)” means a Person or Persons who are or who become members of IHHI’s board of directors and who
(a) are independent of all Borrowers and all Credit Parties, (b) are not now and never have been affiliated with any
Borrower or any Credit Party, (c) are not now and never have been employed by or have performed consulting or other services
for any Borrower or any Credit Party, (d) are not now and never have been paid or compensated, or received consideration of
any kind from, any Borrower or any Credit Party, (e) are not now and never have been directly or indirectly engaged in the
full-time practice of clinical medicine (i.e., said Persons are not doctors), and (f) are experienced in the administration
and management of acute care hospital facilities such as the Hospital Facilities.

“Instruments”
means all instruments, as such term is defined in the Code, now owned or hereafter acquired by Borrowers, wherever located,
and, in any event, including all certificated securities, all certificates of deposit, and all promissory notes and other evidences
of indebtedness, other than instruments that constitute, or are a part of a group of writings that constitute, Chattel Paper.

“Intellectual
Property” means any and all Licenses, Patents, Copyrights, Trademarks, and the goodwill associated with such Trademarks.

“Intercreditor
Agreement” means an Intercreditor Agreement dated as of the Closing Date, executed by the Closing Date Lender
and Borrowers in the form of Exhibit “O” attached hereto.

    	Annex A-16

    	 

    

“Interest
Payment Date” means the first Business Day of each calendar month to occur while any Loan is outstanding, and
provided further that, in addition to the foregoing, the Maturity Date shall be deemed to be an Interest Payment Date with
respect to any interest that has then accrued under this Agreement.

“Interest
Rate” means, at any time, the rate per annum equal to the LIBOR Rate plus 10%.

“Interest
Period” means an interest period of one, two or three months, as selected by IHHI in the Notice of Interest Period, (i)
initially, commencing on the Restatement Effective Date; and (ii) thereafter, commencing on the day on which the immediately preceding
Interest Period expires; provided, (a) if an Interest Period would otherwise expire on a day that is not a Business Day,
such Interest Period shall expire on the next succeeding Business Day unless no further Business Day occurs in such month, in which
case such Interest Period shall expire on the immediately preceding Business Day; (b) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall, subject to clause (c) of this definition, end on the last Business Day of a calendar month;
and (c) the final Interest Period shall conclude on the Maturity Date.

“Inventory”
means all inventory, as such term is defined in the Code, now owned or hereafter acquired by Borrowers, wherever located, and
in any event including inventory, merchandise, goods and other personal property that are held by or on behalf of Borrowers for
sale or lease or are furnished or are to be furnished under a contract of service, or that constitute raw materials, work in process,
finished’ goods, returned goods, or materials or supplies of any kind, nature or description used or consumed or to be used
or consumed in Borrower’s business or in the processing, production, packaging, promotion, delivery or shipping of the same,
including all supplies and embedded software.

“Investment
Property” means all investment property as such term is defined in the Code now owned or hereafter acquired by
Borrowers, wherever located, including (a) all securities, whether certificated or uncertificated, including stocks, bonds,
interests in limited liability companies, partnership interests, treasuries, certificates of deposit, and mutual fund shares; (b) all
securities entitlements of Borrowers, including the rights of Borrowers to any securities account and the financial assets held
by a securities intermediary in such securities account and any free credit balance or other money owing by any securities intermediary
with respect to that account; (c) all securities accounts of Borrowers; (d) all commodity contracts of Borrowers; and
(e) all commodity accounts held by Borrowers.

“IP Security
Agreement” means an IP Security Agreement dated as of the Closing Date, between Borrowers and Closing Date Lender
in the form of Exhibit “L” attached hereto.

“IRC”
means the Internal Revenue Code of 1986 and all regulations promulgated thereunder.

“IRS”
means the Internal Revenue Service.

    	Annex A-17

    	 

    

“Landlord’s
Consent and Estoppel Certificate (Chapman Leases)” means each of the following:

a Landlord’s
Consent and Estoppel Certificate (Chapman MOB Lease) executed by the MOB Landlord in favor of Closing Date Lender, in the form
of Exhibit “S” attached hereto; and

a Landlord’s
Consent and Estoppel Certificate (Chapman Hospital Lease) executed by the Chapman Hospital Landlord in favor of Closing Date Lender,
in the form of Exhibit “S” attached hereto.

“Landlord’s
Consent and Estoppel Certificate (Triple Net Lease)” means that certain Landlord’s Consent and Estoppel Certificate
(Triple Net Lease) executed by PCHI, in the form of Exhibit “T” attached hereto.

“Lender”
means SPCP Group IV, LLC, a Delaware limited liability company and SPCP Group LLC, a Delaware limited liability company, and,
in each case, if either shall decide to assign all or any portion of the Obligations, such term shall include any assignee(s) of
such Lender.

“Lender
Agent” means Silver Point Finance, LLC, a Delaware limited liability company, and its successors and assigns, in its
capacity as agent for the Lenders.

“Lender’s
Costs” means all fees and expenses of Lender in connection with the Loans and all Loan Documents including, but
not limited to, all attorneys’ fees, costs and expenses paid or incurred by Lender in connection with any application or
engagement letter, or term sheet, or any Loan Documents, the fees and disbursements of Lender’s counsel, the travel expenses
of Lender’s personnel and legal counsel related to the Loans, note intangible taxes, if any, and all Closing, escrow, recording
and filing fees, expenses and taxes.

“LIBOR
Rate” means for any Interest Payment Date with respect to an Interest Period, the rate per annum determined on the basis
of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period
appearing on the Reuters Screen LIBOR01 Page as of 11:00 A.M., London time, two Business Days prior to the beginning of such Interest
Period. In the event that such rate does not appear on such page (or otherwise on such screen), the “LIBOR Rate”
shall be determined by reference to such other comparable publicly available service for displaying eurodollar rates as may be
selected by the Lender Agent or, in the absence of such availability, the rate for that Interest Period will be determined by such
alternate method as reasonably selected by Lender Agent in accordance with prevailing customary market practices; provided
that, notwithstanding the foregoing, in no event shall the LIBOR Rate at any time be less than 2.00% per annum.

“License”
means any Copyright License, Patent License, Trademark License or other license of rights or interests now held or hereafter
acquired by Borrowers.

    	Annex A-18

    	 

    

“Lien(s)”
means any agreement or deed of trust, mortgage, pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim,
security interest, easement or encumbrance, or preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever (including any lease or title retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement perfecting a security
interest under the Code or comparable law of any jurisdiction).

“Litigation”
means any action, claim, lawsuit, demand, investigation or proceeding now pending or, to the knowledge of Borrowers or Credit
Parties or Guarantors, threatened against Borrowers or Credit Parties or Guarantors, whether before any Governmental Authority
or before any arbitrator or panel of arbitrators, or otherwise.

“Loan Account”
means an account maintained by Lender in its books to record all Advances made by Lender to Borrowers, all payments made by
Borrowers to Lender, and all other debits and credits as provided in this Agreement with respect to the Loans or any other Obligations.
All entries in the Loan Account shall be made in accordance with Lender’s customary accounting practices as in effect from
time to time.

“Loan”
means the all real estate term loans made by Lender to Borrowers pursuant to this Agreement.

“Loan Documents”
means, together, this Agreement, the Notes, the Guaranty Agreement, the Collateral Documents, the Environmental Indemnity Agreement,
the Control Agreement, the Post-Closing Agreement, the Side Letter, the Collateral Assignment of Contracts, and all other agreements,
instruments, documents and certificates identified in the Closing and Funding Checklist executed and delivered to, or in favor
of, Lender and including all other pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit agreements
and all other written matter whether heretofore, now or hereafter executed by or on behalf of Borrowers or Credit Parties or Guarantors,
or any employee of Borrowers or Credit Parties or Guarantors, and delivered to Lender in connection with this Agreement or the
transactions contemplated thereby. Any reference in this Agreement or any other Loan Document to a Loan Document shall include
all exhibits and schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer
to the Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.

“Material
Adverse Effect” means any circumstance or event, as determined by Lender in the exercise of its reasonable discretion,
which (a) has or may reasonably be expected to have any material adverse effect whatsoever upon the validity, performance,
perfection or enforceability of the Loan Documents, (b) is, or is reasonably expected to be, material and adverse to the financial
condition of the business operations of any Borrower, any Credit Party and/or any Guarantor, (c) is, or is reasonably expected
to, materially impair the ability of any Borrower or any Credit Party or any Guarantor to fulfill their respective obligations
under the Loan Documents, or (d) would with the passage of time or giving of notice, or both, result in or cause a Default
or an Event of Default, or (e) materially impairs or is reasonably expected to materially impair any of the Collateral, or
any of Lender Agent’s Liens on any of the Collateral, or the priority of such Liens, or (f) materially impairs or is
reasonably expected to materially impair Lender’s rights and remedies under this Agreement and the other Loan Documents.

    	Annex A-19

    	 

    

“Maturity
Date” means the date which is the first to occur of (i) the Stated Maturity Date, and (ii) the occurrence
or existence of a Default or an Event of Default under any of the Loan Documents with respect to which Lender has exercised its
option to accelerate the Maturity Date pursuant to Section 8.2(a) hereof.

“Maximum
Lawful Rate” means the interest rate that a court of competent jurisdiction determines in a final unappealable
order to be the highest rate of interest permissible under applicable law.

“Membership
Certificates” means all certificates evidencing the ownership of membership interests in a limited liability company.

“Membership
Power” means the Irrevocable Membership Power dated as of the Closing Date, executed by Ganesha in favor of Closing
Date Lender, in the form if Exhibit “R” attached hereto.

“MOB Landlord”
has the meaning assigned to such term in the definition of “Chapman Leases.”

“Multiemployer
Plan” means a multiemployer plan as defined in Section 3(37) or 4001(a)(3) of ERISA, and to which any Borrower
is making, is obligated to make or has made or been obligated to make, contributions on behalf of participants who are or were
employed by any of them.

“Net QAF Funds”
has the meaning set forth in Section 1.4(b).

“Note” means
the Term Note.

“Notice
of Interest Period” means a notice delivered to the Lender Agent by Borrower’s Representative of the applicable
Interest Period determined by IHHI, in form and substance reasonably satisfactory to Lender Agent.

“Notice
of Request for Advance” means a notice delivered to Closing Date Lender by Borrower’s Representative requesting
an Advance, in the form of Exhibit “D” attached hereto.

“Obligations”
means, collectively, the Loans, all Advances, debts, liabilities and obligations for the performance of covenants, tasks or
duties or for payment of monetary amounts (whether or not such performance is then required or contingent, or such amounts are
liquidated or determinable) owing by Borrowers or Credit Parties or Guarantors to Lender, and all covenants and duties regarding
such amounts, of any kind or nature, present or future, whether or not evidenced by any note, agreement, letter of credit agreement
or other instrument, arising under this Agreement or any of the other Loan Documents. This term includes all principal, interest
(including all interest that accrues after the commencement of any case or proceeding by or against Borrowers or Credit Parties
or Guarantors in bankruptcy, whether or not allowed in such case or proceeding), fees, expenses, attorneys’ fees and any
other sum chargeable to Borrowers or Credit Parties or Guarantors under the Agreement or any of the other Loan Documents.

    	Annex A-20

    	 

    

“OC-PIN”
means Orange County Physicians Investment Network, LLC, a Nevada limited liability company.

“Original
Credit Agreement” means the original Credit Agreement dated as of October 9, 2007 among Borrowers, Credit Parties and
the Closing Date Lender (as amended by Amendment No. 1 dated April 2, 2009 and the Acknowledgment, Waiver and Consent and Amendment
to Credit Agreements dated April 2, 2009, the Omnibus Credit Agreement Amendment dated as of April 13, 2010, Amendment to $80,000,000
Credit Agreement dated August 30, 2010, and Amendment No. 4 to Credit Agreement and Consent dated as of August 1, 2012).

“Origination Fees”
means the sum of each of the following:

With respect to the Existing Real Estate
Term Loan, an origination fee in the amount of SIX HUNDRED SEVENTY FIVE THOUSAND AND NO/100 DOLLARS ($675,000.00) (1.5% of $45,000,000);
plus

With respect to the $35,000,000 Non-Revolving
Line of Credit Loan, an origination fee in the amount of FIVE HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS ($525,000.00) (1.5%
of $35,000,000).

“Participation
Agreement” means that certain Participation Agreement dated as of April 13, 2010 among Lenders, KPC Resolution Company,
LLC and Silver Point Finance, LLC, as participation agent.

“Patent
License” means rights under any written agreement now owned or hereafter acquired by Borrowers granting any right
with respect to any invention on which a Patent is in existence.

“Patents”
means all of the following in which Borrowers now hold or hereafter acquire any interest: (a) all letters patent of the
United States or of any other country, all registrations and recordings thereof, and all applications for letters patent of the
United States or of any other country, including registrations, recordings and applications in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any State, or any other country, and (b) all reissues, continuations,
continuations-in-part or extensions thereof.

“PBGC”
means the Pension Benefit Guaranty Corporation.

“PCHI”
means Pacific Coast Holdings Investment, LLC, a California limited liability company.

“Pension
Plan” means a Plan described in Section 3(2) of ERISA.

    	Annex A-21

    	 

    

“Permitted
Encumbrances” means, for each Property, the following encumbrances relating thereto: (a) Liens for taxes
or assessments or other governmental Charges not yet due and payable or which are being contested in accordance with Section 5.2(b)
(Right to Contest Charges); (b) pledges or deposits of money securing statutory obligations under workmen’s compensation,
unemployment insurance, social security or public liability laws or similar legislation (excluding Liens under ERISA); (c) zoning
restrictions, easements, licenses, or other restrictions on the use of any real estate or other minor irregularities in title (including
leasehold title) thereto, so long as the same do not create a Material Adverse Effect, as determined by Lender in its sole discretion;
(d) currently existing or hereafter created Liens in favor of Lender Agent or its Affiliates; (e) any Lien held by an
equipment lessor in the equipment so leased; (f) all encumbrances shown in any Title Policy issued on the Closing Date
to Lender; (g) inchoate and unperfected workers’ compensation, mechanics’ or similar Liens arising in the ordinary
course of business, provided, that the same are satisfied in the ordinary course of business; (h) carriers’,
warehousemen’s, suppliers’ or other similar possessory liens arising in the ordinary course of business; (i) such
other liens arising in the ordinary course of business so long as such liens do not create a Material Adverse Effect; and (j)) such
endorsements to said Title Policies as Lender deems necessary or appropriate, in its sole discretion.

“Permitted
Refinancing” means, with respect to any Person, any modification, refinancing, refunding, renewal or extension of any
Indebtedness of such Person (the “Refinanced Indebtedness”); provided that (a) the principal amount (or
accreted value, if applicable) thereof does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness
so modified, refinanced, refunded, renewed or extended except by an amount equal to unpaid accrued interest and premium thereon
plus other reasonable amounts paid, and fees and expenses reasonably incurred, in connection with such modification, refinancing,
refunding, renewal or extension and by any amount equal to any existing commitments unutilized thereunder, (b) such modification,
refinancing, refunding, renewal or extension has a final maturity date equal to or later than the final maturity date of the Refinanced
Indebtedness, (c) any Lien pledged or granted in connection with such modification, refinancing, refunding, renewal or extension
shall be subject to the terms of any intercreditor or subordination documentation governing the Refinanced Indebtedness and (d)
any Refinanced Indebtedness shall be subject to the terms and conditions of the A/R Facility Intercreditor Agreement.

“Person”
means any individual, sole proprietorship, partnership, limited liability partnership, joint venture, unincorporated organization,
trust, business trust, association, corporation, limited liability company, institution, public benefit corporation, other entity
or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division,
agency, body or department thereof).

“Plan”
means, at any time, an employee benefit plan, as defined in Section 3(3) of ERISA, that Borrowers or any ERISA Affiliate
maintain, contribute to or have an obligation to contribute to or have maintained, contributed to or had an obligation to contribute
to at any time within the past seven (7) years on behalf of participants who are or were employed by Borrowers or ERISA Affiliate.

“Plan Regarding
Engagement of Independent Directors” means a written statement outlining IHHI’s plan as to how it intends
to identify, engage, nominate and elect Independent Directors to IHHI’s board of directors within the time periods required
by this Agreement.

“Pledge
Agreement” means the Pledge Agreement dated as of the Closing Date, by and between IHHI, Ganesha and Closing Date
Lender, in the form of Exhibit “P” attached hereto.

    	Annex A-22

    	 

    

“Pledged
Entity” means a Person whose Stock or Membership Interests are pledged pursuant to the Pledge Agreement.

“Previous
Accounts Receivable Purchase Agreement” means that certain Accounts Purchase Agreement dated as of March 3, 2005, by
and between Medical Provider Financial Corporation I (as Buyer) and Borrowers (as Sellers).

“Previous
$50,000,000 Acquisition Loan” means the $50,000,000 acquisition loan made by Closing Date Lender
to Borrowers pursuant to the First Credit Agreement.

“Previous
$50,000,000 Acquisition Note” means the $50,000,000 acquisition note executed by Borrowers in favor of
Closing Date Lender pursuant to the First Credit Agreement.

“Previous
$30,000,000 Line of Credit Loan” means the $30,000,000 line of credit loan made by Closing Date
Lender to Borrowers pursuant to the First Credit Agreement.

“Previous
$30,000,000 Line of Credit Note” means the $30,000,000 line of credit note executed by Borrowers
in favor of Closing Date Lender pursuant to the First Credit Agreement.

“Previous
$10,700,000 Term Loan” means the $10,700,000 term loan made by Medical Provider Financial Corporation III
to Borrowers pursuant to the Second Credit Agreement.

“Previous
$10,700,000 Term Note” means the $10,700,000 term note executed by Borrowers in favor of Medical
Provider Financial Corporation III pursuant to the Second Credit Agreement.

“Previous
Loans” means, collectively, the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line of Credit
Loan and the Previous $10,700,000 Term Loan.

“Previous
UCC-1 Financing Statements (Fixture Filings)” means the UCC-1 Financing Statements (Fixture Filings) recorded against
each of the Properties in conjunction with the Previous $50,000,000 Acquisition Loan, the Previous $30,000,000 Line of Credit Loan,
the Previous $10,700,000 Term Loan and the Previous Accounts Receivable Purchase Agreement.

“Proceeds”
means proceeds, as such term is defined in the Code, including (a) any and all proceeds of any insurance, indemnity, warranty
or guaranty payable to Borrowers from time to time with respect to any of the Collateral, (b) any and all payments (in any
form whatsoever) made or due and payable to Borrowers from time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Collateral by any Governmental Authority (or any Person acting under color of governmental
authority), (c) any claim of Borrowers against third parties (i) for past, present or future infringement of any Patent
or Patent License, or (ii) for past, present or future infringement or dilution of any Copyright, Copyright License, Trademark
or Trademark License, or for injury to the goodwill associated with any Trademark or Trademark License, (d) any recoveries
by Borrowers against third parties with respect to any litigation or dispute concerning any of the Collateral including claims
arising out of the loss or nonconformity of, interference with the use of, defects in, or infringement of rights in, or damage
to, Collateral, (e) all amounts collected on, or distributed on account of, other Collateral, including dividends, interest,
distributions and Instruments with respect to Investment Property and pledged Stock, and (f) any and all other amounts, rights
to payment or other property acquired upon the sale, lease, license, exchange or other disposition of Collateral and all rights
arising out of Collateral.

    	Annex A-23

    	 

    

“Projections”
means, for Borrowers, its forecasted consolidated: (a) balance sheets; (b) profit and loss statements; (c) cash
flow statements; and (d) capitalization statements, all prepared on a cash basis, if applicable, and otherwise consistent
with the historical Financial Statements of Borrowers with certain normalizing assumptions made by Borrowers, together with appropriate
supporting details and a statement of underlying assumptions.

“Property”
means any of the Hospital Facilities, and “Properties” means each of the Hospital Facilities taken
together.

“Qualified
Assignee” means (a) any Lender, any Affiliate of Lender and, with respect to a Lender that is an investment
fund that invests in commercial loans, any other investment fund that invests in commercial loans and that is managed or advised
by the same investment advisor or by an Affiliate of such investment advisor of such Lender and which is not a competitor or an
Affiliate of a competitor of Borrowers, and (b) any commercial bank, savings and loan association or savings bank or any other
entity which is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933) which extends
credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial
finance companies, in each case, which has a rating of BBB or higher from S&P and a rating of Baa2 or higher from Moody’s
at the date that it becomes a Lender and which, through its applicable lending office, is capable of lending to Borrowers without
the imposition of any withholding or similar taxes; provided that no Person proposed to become a Lender after the Closing
Date and determined by Lender to be acting in the capacity of a vulture fund or distressed debt purchaser shall be a Qualified
Assignee, and no Person or Affiliate of such Person proposed to become a Lender after the Closing Date that holds Subordinated
Debt or Stock issued by Borrowers shall be a Qualified Assignee.

“Qualified
Cash” means, as of any date of determination, the amount of Certified Cash that is subject to perfection in favor
of Lender pursuant to any Control Agreement in form and substance satisfactory to Lender, which Control Agreement shall provide,
among other things, that the bank or securities intermediary executing such agreement (a) has no rights of setoff or recoupment
or any other claim against such account, as the case may be, other than for payment of its service fees and other charges directly
related to the administration of such account and, as applicable, for returned checks or other items of payment, and (b) agrees
to follow the instructions or entitlement orders of Lender without further consent by Borrowers, including, with respect to funds
in any such account, upon the instructions of Lender, to immediately forward by daily sweep all such funds to the Collection Account
or as otherwise directed by Lender.

“Qualified
Cash Account” means any deposit account or securities account that is subject to a Control Agreement in form and
substance satisfactory to Lender and holds Qualified Cash.

“Qualified
Plan” means a Pension Plan that is intended to be tax-qualified under Section 401(a) of the IRC.

    	Annex A-24

    	 

    

“Recitals”
means the Recitals set forth on the first page of this Agreement.

“Related
Transactions” means the borrowing of the Loans on the Closing Date, the payment of all fees, costs and expenses
associated with all of the foregoing and the execution and delivery of all of the Related Transactions Documents.

“Related
Transactions Documents” means the Loan Documents and all other agreements or instruments executed in connection
with the Related Transactions.

“Release”
means any release, threatened release, spill, emission, leaking, pumping, pouring, emitting, emptying, escape, injection, deposit,
disposal, discharge, dispersal, dumping, leaching or migration of Hazardous Material in the indoor or outdoor environment, including
the movement of Hazardous Material through or in the air, soil, surface water, ground water or property.

“Releasing
Parties” and individually, a “Releasing Party” means each Borrower, each Credit Party,
each Guarantor, and each of their respective predecessors, successors and assigns, and each of their respective officers, directors,
shareholders, members, managers, partners (general and limited), employees, agents, representatives, attorneys and assigns.

“Repurchase
Agreement” has the meaning assigned to such term in the Amendment and Restatement Agreement.

“Restatement
Effective Date” means the date on which the conditions precedent specified in Section 6 of the Amendment and Restatement
Agreement are satisfied (or waived in accordance therewith).

“Restricted
Payment” means (a) the declaration or payment of any dividend or the incurrence of any liability to make
any other payment or distribution of cash or other property or assets in respect of Stock; (b) any payment on account of the
purchase, redemption, defeasance, sinking fund or other retirement of Stock or any other payment or distribution made in respect
thereof, either directly or indirectly; (c) any payment or prepayment of principal of, premium, if any, or interest, fees
or other charges on or with respect to, and any redemption, purchase, retirement, defeasance, sinking fund or similar payment and
any claim for rescission with respect to, any Subordinated Debt; (d) any payment made to redeem, purchase, repurchase or retire,
or to obtain the surrender of, any outstanding warrants, options or other rights to acquire Stock now or hereafter outstanding;
(e) any payment of a claim for the rescission of the purchase or sale of, or for material damages arising from the purchase
or sale of, any shares of Stock or of a claim for reimbursement, indemnification or contribution arising out of or related to any
such claim for damages or rescission; and (f) any payment of management fees (or other fees of a similar nature).

“Retiree
Welfare Plan” means, at any time, a welfare plan (within the meaning of Section 3(1) of ERISA) that provides
for continuing coverage or benefits for any participant or any beneficiary of a participant after such participant’s termination
of employment, other than continuation coverage provided pursuant to Section 4980B of the IRC or other similar state law and
at the sole expense of the participant or the beneficiary of the participant.

    	Annex A-25

    	 

    

“Second Credit Agreement”
means that certain Credit Agreement by and between Medical Provider Financial Corporation III, the Credit Parties and the Borrowers
dated to be effective as of December 12, 2005. Pursuant to the Second Credit Agreement, Medical Provider Financial Corporation
III made the Previous $10,700,000 Term Loan to Borrowers.

“Security
Agreement” means the Security Agreement dated as of the Closing Date, by and between Borrowers and Closing Date
Lender, in the form if Exhibit “G” attached hereto.

“Shareholder”
means, with respect to any Person, each holder of Stock of such Person.

“Shareholder
Blocking Rights” shall mean any rights of any owner (direct or indirect) of any Pledged Entity which, pursuant
to the terms of any agreement or organizational document, has the right to consent, or the effect of requiring such consent, to
any foreclosure by Lender under any Security Agreement or Pledge Agreement or otherwise to the exercise of any of Lender’s
rights and remedies thereunder or otherwise has the right to restrain, delay, impair or otherwise interfere with Lender in the
event of Lender’s exercise of its rights under any Security Agreement or Pledge Agreement.

“Side Letter”
means the side letter agreement dated as of February 7, 2013, among SPCP Group IV, LLC, SPCP
Group, LLC, Lender Agent, Borrowers, PCHI and Ganesha.

“Software”
means all software as such term is defined in the Code, now owned or hereafter acquired by Borrowers, other than software embedded
in any category of Goods, including all computer programs and all supporting information provided in connection with a transaction
related to any program.

“Solvent”
means, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person
is greater than the total amount of liabilities, including contingent liabilities, of such Person; (b) the present fair salable
value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person
on its debts as they become absolute and matured; and (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature. The amount of contingent
liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at the time,
represents the amount that can be reasonably be expected to become an actual or matured liability.

“Stated
Maturity Date” means April 13, 2016.

“Stock”
means all shares, options, warrants, general or limited partnership interests, Membership Interests or other equivalents (regardless
of how designated) of or in a Person, whether voting or nonvoting, including stock, preferred stock or any other equity security
(as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934).

    	Annex A-26

    	 

    

“Stock
Certificates” means all certificates evidencing the ownership of Stock in a Person.

“Stock
Power” means the Irrevocable Stock Power dated as of the Closing Date, executed by IHHI in favor of Closing Date
Lender, in the form if Exhibit “Q” attached hereto.

“Subordinated
Debt” means any unsecured Indebtedness of Borrowers incurred after the Closing Date that is subordinated to the
Obligations in a manner and form reasonably satisfactory to Lender, as to right and time of payment and as to any other rights
and remedies thereunder.

“Subsidiary”
means, with respect to any Person, (a) any corporation of which an aggregate of more than 50% of the outstanding Stock
having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the
time, Stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening
of any contingency) is at the time, directly or indirectly, owned legally or beneficially by such Person or one or more Subsidiaries
of such Person, or with respect to which any such Person has the right to vote or designate the vote of 50% or more of such Stock
whether by proxy, agreement, operation of law or otherwise, and (b) any partnership or limited liability company in which
such Person and/or one or more Subsidiaries of such Person shall have a Membership Interest (whether in the form of voting or participation
in profits or capital contribution) of more than 50% or of which any such Person is a general partner or manager or may exercise
the powers of a general partner.

“Supporting
Obligations” means all supporting obligations as such term is defined in the Code, including letters of credit
and guaranties issued in support of Accounts, Chattel Paper, Documents, General Intangibles, Instruments, or Investment Property.

“Taxes”
means taxes, levies, imposts, deductions, Charges or withholdings, and all liabilities with respect thereto, excluding taxes
imposed on or measured by the net income of Lender.

“Term Note”
means, collectively, promissory notes of even date herewith, in the aggregate principal amount of $47,277,000, executed by
Borrowers in favor of Lenders, each in the form of Exhibit “A” attached hereto.

“Termination
Date” means the date on which (a) the Loans have been repaid in full, (b) all other Obligations (other
than indemnification Obligations) due and payable under this Agreement and the other Loan Documents have been discharged, and (c) Borrowers
shall have no further right to borrow any monies under this Agreement.

“Title Commitment(s)”
means, with respect to each Property, an irrevocable commitment issued by the Title Company to Lender in form and content
acceptable to Lender, committing to issue the Title Policy with respect to each such Property to Lender on the Closing Date.

“Title Company”
means Chicago Title Insurance Company, 700 South Flower Street, Suite 800, Los Angeles, California 90017, Attn: Jeffrey
L. Hurd (“Sr. Title Officer”), telephone: 213-488-4365; facsimile: 213-243-9168; email: jeff.hurd@ctt.com;
and Chicago Title Insurance Company, Division Counsel, 700 South Flower Street, Suite 3305, Los Angeles, California 90017,
Attn: Scott M. Green, Associate Counsel (“Title Attorney”), telephone: 213-488-4342; facsimile:
213-891-0834; email: greens@ctt.com.

    	Annex A-27

    	 

    

“Title Policy”
means an ALTA Loan Policy of Title Insurance issued by Title Company to Lender on the Closing Date, with a stated
liability in the amount of $80,000,000, insuring that (a) the fee simple interest in the Western Medical Center - Anaheim
is vested in PCHI and that the Deed of Trust constitutes a first Lien and encumbrance against the fee simple interest in such Property,
subject only to the applicable Permitted Exceptions and with such endorsements as Lender may require in its sole and absolute discretion;
(b) the fee simple interest in the Western Medical Center — Santa Ana is vested in PCHI and that the Deed of Trust constitutes
a first Lien and encumbrance against the fee simple interest in such Property subject only to the applicable Permitted Exceptions
and with such endorsements as Lender may require in its sole and absolute discretion; (c) the fee simple interest in the Coastal
Community Hospital is vested in PCHI and that the Deed of Trust constitutes a first Lien and encumbrance against the fee simple
interest in such Property subject only to the applicable Permitted Exceptions and with such endorsements as Lender may require
in its sole and absolute discretion; (d) the tenant’s interest in the Chapman MOB Lease is vested in IHHI and that the
Deed of Trust constitutes a first Lien and encumbrance against IHHI’s interest, as MOB Tenant, in the Chapman MOB Lease,
subject only to the applicable Permitted Encumbrances and with such endorsements as Lender may require in its sole, absolute and
unfettered discretion; and (e) the tenant’s interest in the Chapman Hospital Lease is vested in IHHI and that the Deed
of Trust constitutes a first Lien and encumbrance against IHHI’s interest, as Hospital Tenant, in the Chapman Hospital Lease,
subject only to the applicable Permitted Encumbrances and with such endorsements as Lender may require in its sole, absolute and
unfettered discretion.

“Title IV
Plan” means a Pension Plan (other than a Multiemployer Plan), that is subject to Title IV of ERISA or Section 412
of the IRC, and that Borrowers or ERISA Affiliate maintains, contributes to or has an obligation to contribute to on behalf of
participants who are or were employed by any of them.

“Trademark
License” means rights under any written agreement now owned or hereafter acquired by Borrowers granting any right
to use any Trademark.

“Trademarks”
means all of the following now owned or hereafter existing or adopted or acquired by Borrowers: (a) all trademarks, trade
names, corporate names, business names, trade styles, service marks, logos, other source or business identifiers, prints and labels
on which any of the foregoing have appeared or appear, designs and general intangibles of like nature (whether registered or unregistered),
all registrations and recordings thereof, and all applications in connection therewith, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state
or territory thereof, or any other country or any political subdivision thereof; (b) all reissues, extensions or renewals
thereof; and (c) all goodwill associated with or symbolized by any of the foregoing.

    	Annex A-28

    	 

    

“Triple
Net Lease” means that certain Triple Net Lease dated as of March 3, 2005 (as amended by that certain Amendment
#1 to Triple Net Lease dated as of March 3, 2005) by and between PCHI, as lessor, and IHHI, as lessee, pursuant to which PCHI
leased the Western Medical Center - Anaheim, the Western Medical Center - Santa Ana, and the Coastal Community Hospital, to IHHI.

“UCC Financing
Statements” means all UCC-1 Financing Statements (fixture filings and personal property) required by Lender to
be filed or recorded pursuant to this Agreement to secure repayment of the Loans and performance of the Obligations.

“Unfunded
Pension Liability” means, at any time, the aggregate amount, if any, of the sum of (a) the amount by which
the present value of all accrued benefits under each Title IV Plan exceeds the fair market value of all assets of such Title IV
Plan allocable to such benefits in accordance with Title IV of ERISA, all determined as of the most recent valuation date
for each such Title IV Plan using the actuarial assumptions for funding purposes in effect under such Title IV Plan,
and (b) for a period of five (5) years following a transaction which might reasonably be expected to be covered by Section 4069
of ERISA, the liabilities (whether or not accrued) that could be avoided by Borrowers or any ERISA Affiliate as a result of such
transaction.

“Voting
Stock” means, with respect to any Person, any class or classes of capital stock or other ownership interests pursuant
to which the holders thereof have the general voting power under ordinary circumstances to elect directors, managers or trustees
(as applicable) of such Person (irrespective of whether or not, at the time, stock of any other class or classes has, or might
have, voting power by reason of the happening of any contingency).

“Warrant”
means the Common Stock Warrant issued by IHHI to Healthcare Financial Management & Acquisitions, Inc., a Nevada corporation
(an Affiliate of Closing Date Lender) in the form of Exhibit “U” attached hereto.

“West Coast”
means West Coast Holdings, LLC, a California limited liability company.

“Western
Medical Center - Anaheim” means the real property and hospital improvements located at 1025 South Anaheim
Boulevard, Anaheim, California.

“Western
Medical Center-Santa Ana” means the real property and hospital improvements located at 1001 North Tustin
Avenue and at 1301 North Tustin in Santa Ana, California.

“WMC-A”
means WMC-A, INC., a California corporation.

“WMC-SA”
means WMC-SA, INC., a California corporation.

    	Annex A-29

    	 

    

Unless otherwise
specifically provided herein, any accounting term used in the Agreement shall have the meaning customarily given such term in accordance
with GAAP, and all financial computations hereunder shall be computed in accordance with GAAP consistently applied. That certain
items or computations are explicitly modified by the phrase “in accordance with GAAP” shall in no way be construed
to limit the foregoing. All other undefined terms contained in any of the Loan Documents shall, unless the context indicates otherwise,
have the meanings provided for by the Code to the extent the same are used or defined therein; in the event that any term is defined
differently in different Articles or Divisions of the Code, the definition contained in Article or Division 9 shall control. Unless
otherwise specified, references in the Agreement or any of the Appendices to a Section, subsection or clause refer to such Section,
subsection or clause as contained in the Agreement. The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to the Agreement as a whole, including all Annexes, Exhibits and Schedules, as the same
may from time to time be amended, restated, modified or supplemented, and not to any particular Section, subsection or clause contained
in the Agreement or any such Annex, Exhibit or Schedule.

Wherever from the
context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and
pronouns stated in the masculine, feminine or neuter gender shall include the masculine, feminine and neuter genders. The words
“including,” “includes” and “include” shall be deemed to be followed by the words “without
limitation”; the word “or” is not exclusive; references to Persons include their respective successors and assigns
(to the extent and only to the extent permitted by the Loan Documents) or, in the case of governmental Persons, Persons succeeding
to the relevant functions of such Persons; and all references to statutes and related regulations shall include any amendments
of the same and any successor statutes and regulations. Whenever any provision in any Loan Document refers to the knowledge (or
an analogous phrase) of Borrowers or Credit Parties, such words are intended to signify that such Borrowers or such Credit Parties
has actual knowledge or awareness of a particular fact or circumstance.

 

 

    	Annex A-30

    	 

    

ANNEX B

TO

AMENDED AND RESTATED 

CREDIT AGREEMENT ($47,277,000 Term Note)

CASH MANAGEMENT SYSTEM

Borrowers agree to establish, and to maintain, until the
Termination Date, the Cash Management System described below:

Borrowers: (i) shall not (nor shall it permit any of
its Subsidiaries to) open or maintain any deposit, checking, operating or other bank account, or similar money handling account,
with any bank or other financial institution except for those accounts identified in Attachment I hereto (to include a petty cash
account not to exceed $10,000.00 during any fiscal month, and a payroll account not to exceed an amount equal to one regular payroll
at any time, plus all other payroll obligations outstanding); and (ii) shall close or permit to be closed any of the accounts
listed in Attachment I hereto, in each case without Lender’s prior written consent, and then only after Borrowers have implemented
agreements with such bank or financial institution acceptable to Lender.

Commencing on the Closing Date and until the Termination
Date, Borrowers shall fully comply with the terms, conditions and procedures set forth in the Deposit Account Security Agreement
and the Control Agreement.

Borrowers may maintain, in their name, Disbursement Accounts
at a bank or banks acceptable to Lender into which Lender shall, from time to time, deposit proceeds of Advances made pursuant
to this Agreement for use solely in accordance with the provisions of this Agreement. All of the Disbursement Accounts as of the
Closing Date are listed in paragraph 2 of Attachment I hereto.

Notwithstanding anything to the contrary herein or in any
other Loan Documents, the provisions relating to cash management, deposit account security agreements or control agreements, including,
without limitation, this Annex B, shall subject to the A/R Facility.

 

    	Annex B-1

    	 

    

 

ATTACHMENT I TO CASH MANAGEMENT SYSTEM
SCHEDULE

LIST OF BANK ACCOUNTS

 

    	1

    	 

    

ANNEX C

TO

AMENDED AND RESTATED 

CREDIT AGREEMENT ($47,277,000 Term Note)

COLLATERAL REPORTS

Collateral Reports means the following:

1.Cash Reports. A report delivered
by Borrowers at the request of Lender stating, among other things: (a) the net amount of Dollars in unrestricted cash and
cash equivalents that Borrowers have in their Deposit Accounts; and (b) the net amount of Dollars in unrestricted cash and
cash equivalents that Borrowers have in their securities accounts.

2.Report on Cash Subject to Security
Agreements. A report delivered by Borrowers at the request of Lender stating, among other things the amount of their cash that
is subject to perfection in favor of Lender pursuant to any security agreements or other security instruments.

3.Further Assurances. As required
by Section 5.10 (Further Assurances) of this Agreement, such further instruments and assurances as may be necessary
or proper in the reasonable opinion of Lenders to carry out the purposes of the Loan Documents.

 

Notwithstanding anything to the contrary herein or in any other
Loan Documents, the provisions in items 1 and 2 above shall subject to the A/R Facility.

 

 

    	Annex C-1

    	 

    

 

 

ANNEX D

TO

AMENDED AND RESTATED 

CREDIT AGREEMENT ($47,277,000 Term Note)

NOTICE ADDRESSES

BORROWERS:

INTEGRATED HEALTHCARE HOLDINGS, INC.

1301 North Tustin Avenue

Santa Ana, California 92705

Attn: Kenneth K. Westbrook, President
and Chief Executive Officer

           Steven R. Blake, Chief Financial Officer

Ph: 714-953-3575

Fax: 714-953-2595

WMC-A, INC.

c/o INTEGRATED HEALTHCARE HOLDINGS, INC.

1301 North Tustin Avenue

Santa Ana, California 92705

Attn: Kenneth K. Westbrook, President
and Chief Executive Officer

           Steven R. Blake, Chief Financial Officer

Ph: 714-953-3575

Fax: 714-953-2595

WMC-SA, INC.

1301 North Tustin Avenue

Santa Ana, California 92705

Attn: Kenneth K. Westbrook, President
and Chief Executive Officer

           Steven R. Blake, Chief Financial Officer

Ph: 714-953-3575

Fax: 714-953-2595

COASTAL COMMUNITIES HOSPITAL, INC.

c/o INTEGRATED HEALTHCARE HOLDINGS, INC.

1301 North Tustin Avenue

Santa Ana, California 92705

Attn: Kenneth K. Westbrook, President
and Chief Executive Officer

Steven R. Blake, Chief Financial Officer

Ph: 714-953-3575

Fax: 714-953-2595

    	Annex D-1

    	 

    

CHAPMAN MEDICAL CENTER, INC.

c/o INTEGRATED HEALTHCARE HOLDINGS, INC.

1301 North Tustin Avenue

Santa Ana, California 92705

Attn: Kenneth K. Westbrook, President
and Chief Executive Officer

           Steven R. Blake, Chief Financial Officer

Ph: 714-953-3575

Fax: 714-953-2595

CREDIT PARTIES:

PACIFIC COAST HOLDINGS INVESTMENTS, LLC

c/o Strategic Global Management, Inc.

6800 Indiana Avenue, Suite 130

Riverside, California 92506

Attn: Dr. Chaudhuri

           William Thomas, Esq.

           Dr.
Sweidan

Ph: 951-782-8812

Fax: 951-766-9944

GANESHA REALTY, LLC

c/o Strategic Global Management, Inc.

6800 Indiana Avenue, Suite 130

Riverside, California 92506

Attn: Dr. Chaudhuri

           William Thomas, Esq.

Ph: 951-782-8812

Fax: 951-766-9944

ORANGE COUNTY PHYSICIANS INVESTMENT NETWORK, LLC 2621
South Bristol, Suite 304

Santa Ana, California 92704

Attn: Dr. Shah, Manager

Ph: 714-290-5322

Fax: 714-297-9588

 

LENDERS:

SPCP GROUP IV, LLC and SPCP GROUP, LLC

c/o Silver Point Finance, LLC

Two Greenwich Plaza, First Floor

Greenwich, CT 06830

Attn: Thomas Banks

Email: tbanks@silverpointcapital.com

Facsimile: 201-542-4376

 

    	Annex D-2

    	 

    
 

 

LENDER AGENT:

SILVER POINT FINANCE, LLC

Two Greenwich Plaza, First Floor

Greenwich, CT 06830

Attn: Thomas Banks

Email: tbanks@silverpointcapital.com

Facsimile: 201-542-4376

 

 

 

 

 

 

 

    	Annex D-3

    	 

    
  

ANNEX E

TO

AMENDED AND RESTATED 

CREDIT AGREEMENT ($47,277,000 Term Note)

Fixed Charge Coverage Ratio Worksheet

	“Fixed Charge Coverage Ratio” for the applicable Defined Period (as defined in Section 6.17(c)) means the ratio of Operating Cash Flow (as defined below) to Fixed Charges (as defined below) for such Defined Period. 
	“Fixed Charges” means:	 
	Interest expense (including interest expense of PCHI) ($______), net of interest income ($______), interest paid in kind ($______) and amortization of capitalized fees and expenses incurred to consummate the financing transaction governed by the A/R Facility and included in interest expense ($______), included in the determination of net income of Borrowers and their consolidated Subsidiaries for the Defined Period (“Total Interest Expense”)	$___________
	Plus:Any provision for (or less any benefit from) income or franchise taxes included in the determination of net income for the Defined Period	___________
	Scheduled payments of principal for the Defined Period with respect
    to all Indebtedness (including the portion of scheduled payments under Capital Leasesa allocable to principal but excluding scheduled repayments of revolving loans
    and other Indebtedness subject to reborrowing to the extent not accompanied by a concurrent and permanent reduction of the
    revolving loan commitment in respect of such revolving loan)	___________
	The amount of “Permitted Asset Dispositions” and “Permitted Distributions” as defined in and pursuant to the A/R Facility on the date hereof	___________
	“Operating Cash Flow” means:	 
	EBITDA for the Defined Period (calculated in the manner required by the definition thereof in Section 6.17)	$___________
	Less:Unfinanced capital expenditures for the Defined Period	___________
	To the extent not already reflected in the calculation of EBITDA, other capitalized costs, defined as the gross amount paid in cash and capitalized during the Defined Period, as long term assets, other than amounts capitalized during the Defined Period as capital expenditures for property, plant and equipment or similar fixed asset accounts	___________
	Operating Cash Flow	$
	Fixed Charge Coverage Ratio (Ratio of Operating Cash Flow to Fixed Charges) for the Defined Period	___ to 1.0
	Minimum Fixed Charge Coverage for the Defined Period	1.00 to 1.0
	In Compliance	Yes/No

 

 

a Adjustments to exclude the effects of retroactive
adjustments (if any) due to changes in accounting rules relating to operating leases to be determined by the parties.

 

    	Annex E-1

    	 

    
  

Exhibit B

 

Confirmation

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

 

CONFIRMATION

CONFIRMATION (this
“Confirmation”) dated as of February 7, 2013, among each of the companies or entities identified under the caption
“BORROWERS” on the signature pages hereto (collectively, the “Borrowers”), each of the companies
or entities identified under the caption “AMENDMENT PARTIES” on the signature pages hereto (“Amendment Parties”,
and together with the Borrowers, the “Obligors”) and SILVER POINT FINANCE LLC, as successor lender agent for
the Lenders under the Amended and Restated Credit Agreement referred to below (in such capacity, together with its successors in
such capacity, the “Lender Agent”).

 

The
Borrowers, the Amendment Parties, Orange County Physicians Investment Network, LLC (“OC-PIN”, together with
the Amendment Parties, the “Credit Parties”), SPCP GROUP IV, LLC (“SP 1”), and SPCP
Group, LLC (“SP 2”, and together with SP1, the “Existing Lenders”) and Lender Agent are
parties to the Credit Agreement dated as of October 9, 2007 (as amended, supplemented or otherwise modified prior to the date
hereof, the “Existing Credit Agreement”), providing for extensions of credit to be made by said Lenders to
the Borrowers thereunder. Concurrently with the execution and delivery hereof, the Borrowers, the Amendment Parties, the Existing
Lenders and the Lender Agent are entering into an Amendment and Restatement to the Credit Agreement dated as of the date hereof
(the “Amendment Agreement”). Pursuant to the Amendment Agreement, the Existing Credit Agreement is being amended
and restated in its entirety with an Amended and Restated Credit Agreement dated as of the date hereof (as so amended and restated,
and as may be further amended, supplemented or otherwise modified from time to time, the “Amended and Restated Credit
Agreement”) among the Borrowers, the Credit Parties, the “Lenders” (as defined therein) and Lender Agent.
Except as otherwise defined in this Confirmation, terms defined in the Amended and Restated Credit Agreement are used herein as
defined therein.

 

In connection with
the Existing Credit Agreement, the Obligors, Existing Lenders and Lender Agent (as successor in interest to Medical Provider Financial
Corporation II) have entered into certain agreements listed on Schedule A hereto (such agreements, as amended, supplemented or
otherwise modified from time to time, the “Existing Loan Documents”).

Each Obligor, by its execution
of this Confirmation, hereby represents, warrants and agrees as to itself and not any other Person that (i) it has full power and
authority, and has taken all actions necessary, to execute and deliver this Confirmation and to continue to grant the security
interests granted by it under the applicable Existing Loan Documents to which it is a party, (ii) it has received a copy of the
Amended and Restated Credit Agreement and the other documents executed therewith, (iii) it consents to the Amended and Restated
Credit Agreement, (iv) it unconditionally confirms and ratifies that all of its obligations under the Existing Loan Documents to
which it is a party shall continue uninterrupted and in full force and effect for the benefit of the Lenders under the Amended
and Restated Credit Agreement, (v) it unconditionally confirms that the security interests granted by it under each of the applicable
Existing Loan Documents to which it is a party shall continue uninterrupted and in full force and effect in favor of the Lender
Agent for the benefit of the Lenders under the Amended and Restated Credit Agreement, (vi) on and after the date hereof, it will
continue to obtain benefits from the incurrence of Loans by the Borrowers and (vii) on and after the date hereof, all references
in the Existing Loan Documents to the “Credit Agreement” shall be deemed to be and are references to the Amended and
Restated Credit Agreement described above.

 

This Confirmation shall constitute
a “Loan Document” for all purposes of the Amended and Restated Credit Agreement. This Confirmation may be executed
in any number of counterparts, all of which taken together shall constitute one and the same amendatory instrument and any of the
parties hereto may execute this Confirmation by signing any such counterpart. This Confirmation shall be governed by, and construed
in accordance with, the law of the State of Nevada.

 

 

[Remainder of the Page Intentionally Blank]

 

    	 

    	 

    
 

 

 

IN WITNESS WHEREOF,
each Obligor has caused this Confirmation to be duly executed and delivered as of the date first above written.

OBLIGORS

BORROWERS:

 

INTEGRATED HEALTHCARE HOLDINGS, INC.,
a Nevada corporation

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

 

WMC-A, INC., a California corporation

  

By: ________________________________

Name:______________________________

Title:_______________________________

 

 

WMC-SA, INC., a California corporation

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

 

COASTAL COMMUNITIES HOSPITAL, INC.,
a California corporation

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

 

CHAPMAN MEDICAL CENTER, INC., a California
corporation

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

    	 

    	 

    
 

 

AMENDMENT
PARTIES:

 

PACIFIC COAST HOLDINGS INVESTMENT,
LLC,

a California limited liability company

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

 

ganesha
realty, llc, a California

limited
liability company

 

By: ________________________________

Name:______________________________

Title:_______________________________

 

    	 

    	 

    

 

 

 

Accepted and Acknowledged by:

SILVER POINT FINANCE LLC,

as Lender Agent

 

By: ________________________________

 Name:

 Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

Schedule A

Existing Loan Documents1

(1) Security Agreement dated as
of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among Medical Provider Financial Corporation
II, the Borrowers party thereto and Pacific Coast Holdings Investment, LLC (“PCHI”).

(2) Guaranty Agreement dated as
of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among Medical Provider Financial Corporation
II, PCHI and OC-PIN.

(3) Pledge Agreement dated as
of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among Integrated Healthcare Holdings,
Inc. (“IHHI”), Ganesha Realty, LLC (“Ganesha”)and Medical Provider Financial Corporation
II.

(4) Deed of Trust, Security Agreement,
Fixture Filing and Assignment of Rents re Western Medical Center – Anaheim dated as of October 9, 2007 (as amended, supplemented
or otherwise modified as of the date hereof) among PCHI and Medical Provider Financial Corporation II.

(5) Deed of Trust, Security Agreement,
Fixture Filing and Assignment of Rents re Western Medical Center – Santa Ana dated as of October 9, 2007 (as amended, supplemented
or otherwise modified as of the date hereof) among PCHI and Medical Provider Financial Corporation II.

(6) Deed of Trust, Security Agreement,
Fixture Filing and Assignment of Rents re Coastal Communities Hospital, Santa Ana dated as of October 9, 2007 (as amended, supplemented
or otherwise modified as of the date hereof) among PCHI and Medical Provider Financial Corporation II.

(7) Leasehold Deed of Trust, Security
Agreement, Fixture Filing and Assignment of Rents re Leasehold Interest: Chapman Medical Center – Medical Office Building
Premises, Orange dated as of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among IHHI
and Medical Provider Financial Corporation II.

(8) Leasehold Deed of Trust, Security
Agreement, Fixture Filing and Assignment of Rents re Leasehold Interest: Chapman Medical Center – Hospital Premises, Orange
dated as of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among IHHI and Medical Provider
Financial Corporation II.

(9) Absolute Assignment of Leases
and Rents with License Back re Western Medical Center – Anaheim dated as of October 9, 2007 (as amended, supplemented or
otherwise modified as of the date hereof) among PCHI, IHHI, WMC-A, Inc. (“WMC-A”) and Medical Provider Financial
Corporation II.

(10) Absolute Assignment of Leases
and Rents with License Back re Western Medical Center – Santa Ana dated as of October 9, 2007 (as amended, supplemented or
otherwise modified as of the date hereof) among PCHI, IHHI, WMC-SA, Inc. (“WMC-SA”) and Medical Provider Financial
Corporation II.

 

1
As of the date hereof, SP 2 and Lender Agent are successors in interest to Medical Provider
Financial Corporation II under each of the Existing Loan Documents.

    	 

    	 

    
 

(11) Absolute Assignment of Leases
and Rents with License Back re Coastal Communities Hospital dated as of October 9, 2007 (as amended, supplemented or otherwise
modified as of the date hereof) among PCHI, IHHI, Coastal Communities Hospital, Inc. (“Coastal”) and Medical
Provider Financial Corporation II.

(12) Absolute Assignment of Leases
and Rents with License Back re Leasehold Interest: Chapman Medical Center – Medical Office Building Premises, Orange dated
as of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among IHHI, Chapman Medical Center,
Inc. (“Chapman”) and Medical Provider Financial Corporation II.

(13) Absolute Assignment of Leases
and Rents with License Back re Leasehold Interest: Chapman Medical Center – Hospital Premises, Orange dated as of October
9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among IHHI, Chapman and Medical Provider Financial
Corporation II.

(14) Collateral Assignment of
Contracts re Western Medical Center – Anaheim dated as of October 9, 2007 (as amended, supplemented or otherwise modified
as of the date hereof) among IHHI, WMC-A and Medical Provider Financial Corporation II.

(15) Collateral Assignment of
Contracts re Western Medical Center – Santa Ana dated as of October 9, 2007 (as amended, supplemented or otherwise modified
as of the date hereof) among IHHI, WMC-SA and Medical Provider Financial Corporation II.

(16) Collateral Assignment of
Contracts re Coastal Communities Hospital, Santa Ana dated as of October 9, 2007 (as amended, supplemented or otherwise modified
as of the date hereof) among IHHI, Coastal and Medical Provider Financial Corporation II.

(17) Collateral Assignment of
Contracts re Leasehold: Chapman Medical Center – Medical Office Building, Orange dated as of October 9, 2007 (as amended,
supplemented or otherwise modified as of the date hereof) among IHHI, Chapman and Medical Provider Financial Corporation II.

(18) Collateral Assignment of
Contracts re Leasehold: Chapman Medical Center – Hospital Premises, Orange dated as of October 9, 2007 (as amended, supplemented
or otherwise modified as of the date hereof) among IHHI, Chapman and Medical Provider Financial Corporation II.

(19) Intellectual Property Security
Agreement dated as of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among Medical Provider
Financial Corporation II and the Borrowers party thereto.

(20) Environmental Indemnity Agreement,
dated as of October 9, 2007 (as amended, supplemented or otherwise modified as of the date hereof) among Medical Provider Financial
Corporation II, the Borrowers, PCHI and OC-PIN.

(21) Intercreditor Agreement,
dated as of August 30, 2010 (as amended, supplemented or otherwise modified as of the date hereof) among MidCap Financial, LLC,
Lender Agent, the Borrowers and the Amendment Parties.

 

    	 

    	 

    

Exhibit C-1

 

 

Amendment No. 1 to the Common Stock Warrant
for SPCP Group, LLC

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

 

Exhibit C-2

 

Amendment No. 1 to the Common Stock Warrant
for KPC Resolution Company, LLC

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

 

Exhibit C-3

 

Amendment No. 1 to the Common Stock Warrant
for Kali P. Chaudhuri, M.D.

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

Exhibit D

 

Repurchase Agreement

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

 

Exhibit E

 

Common Stock Warrant to SPCP Group LLC

 

[See attached.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    
 

Schedule 5(b)

 

 

Representations and Warranties 

 

[See attached.]Exhibit 10.13

 

WARRANT REPURCHASE AGREEMENT

THIS WARRANT REPURCHASE
AGREEMENT (the “Agreement”), dated as of February 7, 2013, is made by and between Integrated Healthcare Holdings,
Inc., a Nevada corporation (the “Purchaser”), and SPCP Group IV, LLC (the “Warrant Holder”).

R E C I T A L S

WHEREAS, on or about
April 13, 2010, the Warrant Holder was issued a warrant to purchase an aggregate 16,817,365 shares of Common Stock of Purchaser
at an initial exercise price of $0.07 per share, exercisable until April 13, 2013 (the “Warrant”), a copy of
which is attached as Exhibit A hereto.

WHEREAS, Warrant
Holder desires to sell to Purchaser, and Purchaser desires to purchase from Warrant Holder, the Warrant on the terms and conditions
contained herein.

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

Section 1.
Sale and Purchase of Warrant; No Further Rights.

(a) Sale of
the Warrant. Concurrently with the execution hereof, Warrant Holder shall sell, transfer and assign the Warrant to Purchaser
for a purchase price of $0.12 per share exercisable under the Warrant minus the exercise price of $0.07 per share, or a net purchase
price of $0.05 per share, multiplied by 16,817,365 shares exercisable under the Warrant, or an aggregate purchase price of $840,868.25
(the “Purchase Price”). The parties hereto agree that the payment of the Purchase Price shall be in full satisfaction
of any and all obligations owed by Purchaser with respect to the Warrant, and Purchaser shall purchase from Warrant Holder, all
of the right, title, and interest of Warrant Holder in and to the Warrant.

(b) Deliveries
by Purchaser. Concurrently with the execution hereof, Purchaser shall deliver to Warrant Holder the Purchase Price by wire
transfer of immediately available funds to bank accounts designated by Warrant Holder or such other form of payment as the parties
may agree.

(c) Deliveries
by Warrant Holder. Concurrently with the execution hereof, the Warrant Holder shall deliver to Purchaser the Warrant Holder’s
original Warrant, accompanied by a duly executed Form of Transfer in the form attached hereto as Exhibit B in favor of Purchaser.

(d) Termination
of Warrant. At the Closing, the Warrant shall be cancelled and terminated, and Warrant Holder shall have no further rights
thereunder.

    	 

    	 

    
 

Section 2.
Closing. The closing of the transactions contemplated hereby (the “Closing”) shall take place concurrently
with the execution hereof (the “Closing Date”), at such place or on such other date as may be mutually agreeable
to Warrant Holder and Purchaser.

Section 3.
Representations and Warranties of Warrant Holder. The Warrant Holder hereby represents and warrants to Purchaser as follows,
and such representations and warranties shall survive the Closing:

(a) Authorization.
The Warrant Holder has all requisite power and authority to enter into this Agreement and any other agreements or instruments contemplated
hereby, and to perform its obligations hereunder. This Agreement and all other agreements contemplated hereby each constitutes
a valid and binding obligation of the Warrant Holder, enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and limitations
on the availability of equitable remedies. The execution and delivery by the Warrant Holder of this Agreement and all other agreements
contemplated hereby to which the Warrant Holder is a party, and the fulfillment of and compliance with the respective terms hereof
and thereof by the Warrant Holder, do not and shall not conflict with or result in a breach of the terms, conditions or provisions
of, or require any authorization, consent, approval, exemption or other action by or notice to any court or administrative or governmental
body pursuant to, its limited liability company operating agreement or any material law, statute, rule or regulation to which the
Warrant Holder is subject, or any material agreement, instrument, order, judgment or decree to which the Warrant Holder is subject,
except where any such condition would not adversely affect the Warrant Holder’s ability to its obligations hereunder. The
Warrant Holder has full right, power and authority to sell, assign, transfer and deliver the Warrant to be sold by the Warrant
Holder hereunder.

(b) Title.
The Warrant Holder has not transferred, sold, pledged or encumbered the Warrant and has good and valid title to the Warrant, free
and clear of any liens, charges, claims, pledges, security interests, conditional sale agreements and other encumbrances whatsoever,
whether arising by agreement, operation of law or otherwise, and there are no restrictions on the Warrant Holder’s right
to transfer the Warrant to Purchaser pursuant to Section 1(c) hereof, other than those imposed by applicable federal
and state securities laws. Upon delivery and payment for the Warrant Holder’s Warrant at the Closing, Purchaser shall acquire
valid and unencumbered title to the Warrant Holder’s Warrant. No person other than Purchaser has any agreement, option, understanding
or commitment (oral or in writing), or any right or privilege capable of becoming an agreement, option or commitment, for the purchase
from the Warrant Holder of the Warrant Holder’s Warrant. The Warrant Holder has not exercised or attempted to exercise the
Warrant, and shall not do so on or prior to the Closing.

(c) Access to
Information; Sophistication; Lack of Reliance. The Warrant Holder (i)  is familiar with the business and financial condition,
properties, operations and prospects of Purchaser, (ii) has been provided with such information, documents and other materials
concerning Purchaser, including its financial condition, results of operations, prospects, properties or business, to enable the
Warrant Holder to form an independent judgment regarding the advisability of the sale of the Warrant Holder’s Warrant on
the terms and conditions contained herein, (iii) has had such time as the Warrant Holder deems necessary and appropriate to
review and analyze such information, documents and other materials to enable it to form such independent judgment, and (iv) has
been granted the opportunity to obtain any additional information that the Warrant Holder deems necessary to verify the accuracy
of such information, documents and other materials and to ask questions of, and have received satisfactory answers from, representatives
of Purchaser concerning Purchaser. The Warrant Holder has also had the opportunity to review the periodic and current reports filed
with the United States Securities and Exchange Commission (the “SEC”) by Purchaser. The Warrant Holder’s
knowledge and experience in financial and business matters is such that the Warrant Holder is capable of evaluating the merits
and risks of the Warrant Holder’s sale of the Warrant Holder’s Warrant. The Warrant Holder has carefully reviewed the
terms and provisions of this Agreement and has evaluated its rights and obligations contained herein, and is hereby voluntarily
assuming the risks relating to the transactions contemplated hereby.

    	 

    	 

    
 

(d) Arm’s-Length
Transaction. The Warrant Holder is dealing with Purchaser on a professional arm’s-length basis and neither Purchaser
nor any of its respective affiliates or representatives is acting as a fiduciary or advisor to the Warrant Holder with respect
to this Agreement and any of the transactions contemplated hereby.

(e) Independent
Appraisal. In connection with this Agreement and the transactions contemplated hereby, the Warrant Holder has made its own
independent appraisal of, and investigation into, the value of the Warrant, and, in deciding to enter into this Agreement, the
Warrant Holder has not relied on Purchaser or any affiliate, representative or agent of Purchaser with respect to such matters.

(f) No Reliance.
The Warrant Holder acknowledges that (i) there are no, and it is not relying upon any, representations or warranties by or
on behalf of Purchaser or any of its affiliates or representatives other than those expressly set forth in this Agreement and (ii) its
rights and obligations with respect to this Agreement and the events giving rise thereto are and will be solely as set forth in
this Agreement.

Section 4. Representations
and Warranties of Purchaser. The Purchaser hereby represents and warrants to Warrant Holder as follows, and such representations
and warranties shall survive the Closing:

(a) Authorization.
The Purchaser has all requisite power and authority to enter into this Agreement and any other agreements or instruments contemplated
hereby, and to perform its obligations hereunder. This Agreement and all other agreements contemplated hereby each constitutes
a valid and binding obligation of the Purchaser, enforceable in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and limitations
on the availability of equitable remedies. The execution and delivery by the Purchaser of this Agreement and all other agreements
contemplated hereby to which the Purchaser is a party, and the fulfillment of and compliance with the respective terms hereof and
thereof by the Purchaser, do not and shall not conflict with or result in a breach of the terms, conditions or provisions of, or
require any authorization, consent, approval, exemption or other action by or notice to any court or administrative or governmental
body pursuant to, its limited liability company operating agreement or any material law, statute, rule or regulation to which the
Purchaser is subject, or any material agreement, instrument, order, judgment or decree to which the Purchaser is subject, except
where any such condition would not adversely affect the Purchaser’s ability to its obligations hereunder.

    	 

    	 

    
 

(b) Sophistication;
Lack of Reliance. The Purchaser’s knowledge and experience in financial and business matters is such that the Purchaser
is capable of evaluating the merits and risks of the Purchaser’s purchase of the Warrant. The Purchaser has carefully reviewed
the terms and provisions of this Agreement and has evaluated its rights and obligations contained herein, and is hereby voluntarily
assuming the risks relating to the transactions contemplated hereby.

(c) Arm’s-Length
Transaction. The Purchaser is dealing with Warrant Holder on a professional arm’s-length basis and neither Warrant Holder
nor any of its respective affiliates or representatives is acting as a fiduciary or advisor to the Purchaser with respect to this
Agreement and any of the transactions contemplated hereby.

(d) No Reliance.
The Purchaser acknowledges that (i) there are no, and it is not relying upon any, representations or warranties by or on behalf
of Warrant Party or any of its affiliates or representatives other than those expressly set forth in this Agreement and (ii) its
rights and obligations with respect to this Agreement and the events giving rise thereto are and will be solely as set forth in
this Agreement.

Section 5.
Miscellaneous.

(a) Further
Assurances. From time to time after the Closing, each party shall cooperate and take such action or cause to be taken such
action as may be reasonably requested by another party hereto in order to carry out the provisions and purposes of this Agreement
and transactions contemplated hereby.

(b) No Assignment.
The rights and obligations of the parties hereto under this Agreement shall inure to the benefit of and shall be binding upon their
successors and assigns. No party hereto may assign either this Agreement (whether by operation of law of otherwise) or any of its
rights, interests, benefits or obligations hereunder without the prior written approval of the other parties hereto.

(c) Choice of
Law. The corporate law of the State of Nevada will govern all questions concerning the construction, validity and interpretation
of this Agreement and the exhibits hereto without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Nevada or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the
State of Nevada.

(d) Entire Agreement;
Amendments; Severability. This instrument constitutes the entire agreement with respect to the subject matter hereof between
the parties hereto and replaces and supersedes as of the date hereof any and all prior oral or written agreements, understandings
and communications between the parties hereto. This Agreement may only be amended or modified by an agreement in writing executed
by each of the parties hereto. Should any provision of this Agreement be adjudged invalid to any extent by any competent tribunal,
such provision will be deemed modified to the extent necessary to make it enforceable.

    	 

    	 

    
 

(e) Counterparts;
Section Headings. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument. The section headings of this Agreement are for convenience
of reference only. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other form of electronic
communication shall be effective as delivery of a manually executed counterpart of this Agreement.

(f) No Third-Party
Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein
expressed or implied shall give or be construed to give to any person, other than the parties hereto and such assigns, any legal
or equitable rights hereunder.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

 

 

 

    	 

    	 

    
 

 

INTENDING TO BE LEGALLY BOUND HEREBY, the parties
hereto have executed this Agreement on the date first above written.

 

 

	 	INTEGRATED HEALTHCARE HOLDINGS, 
 INC., a Nevada corporation
	 	 	 
	 	By:	/s/ Kenneth K. Westbrook
	 	Name:	Kenneth K. Westbrook
	 	Title:	CEO
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	SPCP
                                                                                                                       Group IV,
                                                                                                                       LLC,
                                                                                                                       

a
Delaware limited liability company

	 	 	 
	 	By:	Silver Point C&I Opportunity GP, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Michael A. Gatto
	 	Name:	Michael A. Gatto
	 	Title:	Authorized Signatory
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

 

[SIGNATURE PAGE TO WARRANT REPURCHASE
AGREEMENT]

    	 

    	 

    
 

 

 

 

 

 

EXHIBIT A

 

WARRANT

 

See attached

 

 

 

 

    	 

    	 

    
 

EXHIBIT B

 

FORM OF TRANSFER

(To be signed only upon transfer of Warrant)

 

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto INTEGRATED HEALTHCARE
HOLDINGS, INC. the right represented by the
attached Warrant to purchase 16,817,365 shares of the Common Stock of INTEGRATED HEALTHCARE
HOLDINGS, INC. (the “Company”),
to which the attached Warrant relates, and appoints Scott Schoeffel as their true and lawful attorney in fact to transfer such
right on the books of the Company, with full power of substitution in the premises.

 

Dated: _______________________

 

SPCP GROUP IV, LLC

 

By: Silver Point C&I Opportunity
GP, LLC

 

By:_________________________________

 

Name:______________________________

 

Title: _______________________________

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